Thames Water is to bring more activities in-house as part of its AMP7 capital programme and move away from the contractor model it used in the previous investment period.
It said key areas of asset management, programme and project management, technical assurance and commercial management would be done in-house but stressed it would still work with contractors and awarded £350 million of contracts this week.
The company named the 10 major companies it will work with to deliver on the stretching targets for the next five years including leakage reduction, improvements to service supplies and boosting resilience.
Thames came under fire from Ofwat for missing targets on leakage during AMP6, which it blamed partly on the relationship between street teams and the boar room, which was accused of not having sufficient oversight into the work taking place.
Following an Ofwat investigation the company made progress with leakage and even delivered cuts of 13 per cent in March compared to the previous year. The regulator set it a target of 15 per cent reduction by 2025.
Contracts for non-infrastructure work have been awarded to Costain, MWH Treatment, Mott MacDonald Bentley, Kier Infrastructure, Glan Agua, Galliford Try, Barhale and Bridges Electrical.
Meanwhile infrastructure contracts have gone to to Kier Infrastructure, Morrison Utility Service, Galliford Try, J Browne Cons, Barhale Ltd and Clancy Group.
Projects will include monitoring, refurbishing and replacing mains trunks as well as installing leak detection technology.
Thames’ capital delivery director, John Bentley said it was a “difficult but exciting time” for the company and suppliers: “We know we have some tough challenges to get through now and lying further ahead, but we’re all set to work together in providing resilient and reliable clean and wastewater services to our 15 million customers across London and the Thames Valley.
“We have ambitious plans for the next five years including a further reduction of leakage, reducing interruptions to water supplies and reducing pollutions, and our suppliers will be key to helping us achieve those goals.”
The company said it had moved away from its previous “alliance approach” and would instead follow an “intelligent client” operating model that sees more activities done in-house in the key areas of asset management, programme and project management, technical assurance and commercial management. Medium to large projects as part of the programme are expected to run until the end of the AMP cycle and into the next period.
Restrictions due to the coronavirus outbreak have forced the company to reduce its detection and repair work, particularly at private properties.