United Utilities has awarded a framework maintenance service partner contract worth an estimated £60 million per annum to Costain – one of three companies in the bidding for the work - for its upcoming 20120-25 investment programme.
Under the contract the construction and engineering company will provide a range of asset maintenance support services consisting of core and non-core activities to United Utilities sites throughout the North West including water and wastewater treatment works and depots.
Costain will deliver services related to the overall management and execution of the larger-scale on-site asset maintenance activities, including the provision and management of supplementary engineering services needed to undertake and complete numerous diverse work items and packages.
Core activities cover emergency, reactive and proactive optimised maintenance works, including repair, replacement and refurbishment. Services includes the management of services - i.e. the helpdesk/service portal, triage, dispatch of engineer to site, etc.
Non-core activities cover proactive maintenance works (or where required, reactive works) and also minor project works, of a more complex and/or valuable nature and will generally include a design element).
Costain will act as main contractor (with full design responsibility) for the works but will be entitled to sub-contract all or part of the works, subject to UU’s approval on any given works order.
Estimated annual value of the contract, which is broken down into the following 10 areas, is put at between £40 million to £60 million.
1. Managed Services
2. Building Works
3. Civils Works
4. Electrical Maintenance Works
5. Headworks remedial works
6. Off-site Fabrication
7. On-Site Services
8. Re-Instatement Works
9. Mechanical Works
10. Instrumentation
Initial contract is for 5 years from commencement with further extension options of up to 5 years in total.
When the water company went out to tender it said was seeking to award the agreement to a single maintenance partner. Key objectives United Utilities is seeking to achieve under the contract include:
- Reduced like for like operational costs
- Improve transparency and cost certainty
- Improve operational control and reduce management
- Improve service levels and enhance service delivery for internal maintenance staff and the wider business
- Risk transfer or risk reduction
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