Looking after the water environment with a ten year capital programme
Yorkshire Water manages the collection, treatment and distribution of water in Yorkshire, supplying around 1.24 billion litres of drinking water each day. We were appointed as its sole Commercial Consultant for its ten year, £2.8bn, capital expenditure programmes in AMP 4 and 5.
Date started: 2005
Completion date: 2015
Key services: cost and commercial management, programme management
We provided commercial management, programme/project management and consultancy services across Yorkshire Water's entire capital programme. This comprised over 3,200 sewerage, wastewater treatment, water treatment and water distribution projects that ranged in value from £30,000 to £100 million.
Our services included:
- Procurement advice, estimating and cost planning, tender preparation and appraisal, preparation of contract documentation, contract award, post contract cost management and reporting through to preparation of the final account.
- Provision of Contract Administration (NEC PM) and Cost Management on the £900m Joint Delivery Teams programme comprising of over 1800 schemes
- Managing a flood remedial programme to bring flooded sites back to operational use, with key discreet processes including procurement workshops, stakeholder workshops with Yorkshire Water’s entire Supply Chain (capital partners and key suppliers), and prioritisation and scope cleansing exercise reduced capital cost from £70m to circa £50m.
- Provision of Commercial Assurance and Improvement (Audit) role on the Capital Works Programme.
- The largest procurement exercise ever undertaken in Yorkshire Water which involved restructuring the way capital contracts were awarded, managed and delivered. The procurement exercise secured eight capital delivery partners to work across six work streams to deliver the AMP5 capital programme.
- Development of the AMP5 commercial model, which generated capital efficiencies of £59m through the use of tender efficiency factors
- 1.24 billion litres of drinking water supplied per day
- 63,000 miles of water and sewerage mains - almost enough pipework to circle the Earth
- 700 water and sewerage treatment works
- 120 reservoirs
Making the Difference
Some of our key successes include:
AMP 4 in 4 Commercial Close-Out
We developed a risk-based commercial audit and assurance process. This contributed to the efficient financial close-out of 1,800 individual schemes in AMP 4. We achieved an unprecedented level of final account agreement of 91% of all available schemes. This included £400m of large schemes where a transparent gateway process was utilised.
We developed and delivered an industry leading carbon measurement tool including the whole life carbon footprint of the construction programme. Linking this in with cost plans and whole life cost assessments has given Yorkshire Water the ability to deliver energy efficient projects.
A particular feature of this has been a move from a largely non-competitive regional delivery model to a commercial model where work is effectively 'batched' into mini programmes and alliance teams are required to compete, with past delivery performance a critical and objective evaluation criteria.
Every pound spent with Turner & Townsend on contract administration in AMP4 yielded a £4.80 return, and every pound spent on assurance in AMP4 yielded £7.10 of programme risk reduction.
- £4.80 return on every pound spent on contract administration in AMP 4
- £7.10 in programme risk reduction on every pound spent on assurance in AMP4