AMP 8 represents the most ambitious programme of water industry investment for many years. While the programme is forward-looking, it makes sense to review AMP 7 delivery to understand critical success factors and potential risks.
KPMG recently published a review in collaboration with British Water which includes ‘the Framework for Change to enable water companies and their suppliers to rise to the scale of the challenge ahead and make the necessary step change.’
The review highlights the challenges for main contractors, which include having to increase the scale of delivery against an industry backdrop of skills shortages and supply chain uncertainties. Existing supply chains are stretched, with some sub-contractors that were involved in the AMP 7 period leaving the sector.
Pressure to Deliver
Despite the difficulties, the expectations and pressure to perform are increased. Our highly condensed summary of the report is that main contractors need an enhanced supply chain strategy to identify and engage key strategic supply chain partners from the earliest stages of AMP 8.
Given the increased scale of work and the stressed nature of existing supply chains – the report believes it’s inevitable that main contractors will have to seek new partners, who may have limited or no water industry experience, perhaps harnessing open frameworks and dynamic markets as recommended in the recently-enacted Procurement Act.
Is having less water industry experience a problem? In fact the report highlights a ‘clear benefit in widening the net to bring in specialist suppliers with less water industry experience to bring new perspectives and solutions.’
Focus on Outcomes
Outcomes are what really matters, including a focus on asset resilience and efficient and reliable delivery. AMP 8 is probably an opportune moment to implement key principles of the Construction Playbook, in particular early involvement from relevant specialist supply chain partners. Main contractors who can achieve this will have a distinct advantage.
FTE’s unique intelligent integration approach to structural steel and hybrid steel/GRP solutions is a fully integrated design-to-delivery process, fully aligned with the principles of the Construction Playbook. It engages critical technical and practical expertise where it can have the biggest impact on outcomes and has a continuous chain of custody right through to asset handover.
The approach has already proved invaluable in a number of water industry projects such as walkways, stairs and safety railings, and a steel frame for a new pumping station.
You can find out more about intelligent integration and how it could enhance AMP 8 delivery by accessing our free information hub, sign-up below.
