Scottish Water has awarded a multi-billion pound contract for Asset Delivery Partners and Primary Designers for SR27 and SR33 programmes of capital works from 2027 to 2039 with an estimated value of up to £9 billion (ex VAT).

SR27 is the regulatory period spanning from April 2027 until March 2033. SR33 is the regulatory period spanning from April 2033 until March 2039.

The initial contract will run for a fixed period of seven years until March 2033 with an option to extend for a further six years until March 2039.

The successful bidders will be required to utilise Scottish Water’s supply chain and specialist frameworks.

To deliver the Capital Investment Programme the water company is creating an Enterprise, an advanced partnering supply chain model which includes Asset Delivery Partners (ADP) and Primary Designer(s) (PD) working together in high performing integrated teams to deliver programmes of work.

The Enterprise model will have a dynamic outcome-based set of measures, with partners incentivised against service sub-programme and Enterprise outcomes – Scottish Water will have embedded resources within the Enterprise. There will also be minimum business performance thresholds in the form of KPI’s.

The Enterprise will incorporate enhanced partnering capabilities and a behavioural environment supporting closer resource integration, combined with a trading environment that also supports this approach. The water company said this will deliver affordability to support its investment targets, whilst also being adaptable and flexible enough to support changing requirements.

The enterprise model procurement was structured into two Lots: Lot 1 Primary Designer/s and Lot 2 Asset Delivery Partners (ADP)

Lot 1 - Primary Designer

Thiscovers the appointment of strategic partners for the provision of Primary Designer services to provide assistance with the Strategic programme development, design and delivery of its Investment Programme. This will cover improvement works associated with all Water and Wastewater assets across Scotland which may include new assets, renewals, modification, maintenance, refurbishments, extensions and enhancements to existing assets.

Estimated total contract value across the framework for a 13 year period, expected to commence April 2026 is in the range of £600 million to £1.3 billion.

The Primary Designer will provide strategic support, studies, design and technical services at pre, during and post construction, ensuring successful delivery of infrastructure and non-infrastructure programs. They will enhance and maintain a standard design and product library driving process engineering, Nature Based Solutions (NBS) and low carbon products and processes. The Primary Designer will maximise the use of repeatable designs and processes to deliver projects ensuring successful delivery of infrastructure and non-infrastructure programmes of work.

Scope of work includes:

• The design and development of solutions for delivery by framework delivery partners or tendered contractors.
• Create and develop design specifications, drawings, and technical documentation.
• Collaborate with internal teams to align designs with operational and maintenance requirements.
• Holds end to end accountability for project design.
• Ensure compliance with SW requirements, relevant industry standards and regulations.
• Manage Scottish Water’s standard products and design library whilst working with the wider SW supply chain.
• Drive standardisation in design and design management, low carbon products and processes and innovation across programmes and supply chains.
• The auditing and assessment of water and wastewater models developed by others.
• Project management support and resources
• The development and assessment of traditional and innovative asset and operational based solutions, feasibility studies, and investment appraisals to support decision making by the client.
• Technical support
• Provide expert technical advice and design support throughout the project lifecycle, from conception to completion providing buildability/delivery plan input and client design assurance. Develop outline plans and requirements to commission the projects being developed and how standard products will be commissioned
• Supply technically qualified professionals to be seconded to the water utility for defined periods to support in-house teams.
• Evaluate alternative solutions for system upgrades or new infrastructure, providing recommendations based on cost, feasibility, and performance.

The Primary Designer will assess the most effective way to deliver outcomes i.e. prioritises no build, less build / alternative solutions, efficient build. The Primary Designer works with the supply chain to identify and develop standardisation and alternative low carbon opportunities and agree Asset Delivery Partner or supply chain led elements of the design. The Primary Designer will support the utility with asset planning and asset strategy/policy and standards.

Lot 2 - Asset Delivery Partners

The ADP will be accountable for driving programme/project delivery, liaising with the Enterprise Primary Designer and Integrator functions to perform Design & Build activities, while adhering to standardised designs.

The ADP will manage day-to-day activities during construction and coordinate the works with Scottish Water Operations until the point of asset handover.

Scottish Water went out to tender to appoint suitably experienced Civils, Infrastructure and MEICA (including Process Engineering capability) Asset Delivery Partners to deliver its SR27 and SR33 programmes of capital works under an outcome-based Enterprise model. Scope of works covers new assets and renewals, surveys and inspections, modifications, complex maintenance, refurbishments, extensions, and enhancements to existing assets. More specifically, the programmes of work based on the SR27 forecast include:

Design and construction of complex and non-complex civil engineering, mechanical, electrical, hydraulic, telemetry, control, instrumentation, and commissioning as required.

This support will include works associated with new assets, renewals, modification, maintenance, and refurbishment of water and wastewater networks including mains rehabilitation and lining, sewerage networks, pumping stations and process works including mechanical, electrical, instrumentation and commissioning. The programme pipeline in SR27 includes:

• UID and flooding network capital maintenance
• Waste Water Treatments Works (WWTW) upgrades & growth
• WWTW capital maintenance
• Water networks and new and replacement pipelines, cleaning and maintenance,
• Water Treatment Works (WTW) upgrades & capital maintenance
• Treated water storage build and repair

The successful bidders were required to evidence their experience and capabilities in design and build activities for large and complex projects as well as operational requirements such as major water bursts, major sewer collapses and leakage support. Bidders could only bid as single entities and not as joint ventures or consortium. The successful must be able to safely carry out Principal Contractor responsibilities.

The framework will run from 2026-2033, with extension options, at client discretion based on business requirements, up to 2039. The estimated net value range of this procurement is £4 billion - £7.7 billion.

Successful partners will get an allocated share of this work as part of the advanced partnering approach.

Scottish Water has also reserved the right to augment the supply chain during SR27 to support emerging SR33 needs covering 1st April 2033 until 31st March 2039.

To facilitate this, a mid-point review of the SR27 supply chain will be conducted in 2030 and the current supply chain capacity and capability will be assessed at this time to ensure business requirements will be met.

Based on the outcome of the review, Scottish Water reserves the right to procure additional/alternative supply chain contractor partners, as required.

The scope of Lot 2 Asset Delivery Partners was further divided into three sub-Lots as follows:

2a) Civils

indicative works include creation of above or below ground civil structures e.g. storm tanks and treated water storage tanks.

2b) Infrastructure

indicative works include installation of new pipework, replacement pipework, refurbished pipework or major repairs of water and sewer pipework, and water pipe lining.

2c) Mechanical, Electrical, Instrumentation, Control and Automation (MEICA) – including Process Engineering, Commissioning Engineering and Smart Technology/Internet of Things (IoT).

• Mechanical: design, installation and maintenance of mechanical systems including pumps, piping and treatment processes.
• Electrical: electrical site cabling, motor control centres (MCCs) and other electrical installations.
• Instrumentation: devices and systems used to measure and control variables like flow, temperature, pressure and quality
• Control: operational technology, systems and software used to control and automate operational processes.
• Automation: integration of various systems to automate processes, improving efficiency and reliability including AI and data analytics.
• Process Engineering: design, installation, integration and commissioning of process equipment to treat water and wastewater to the required standards for supply to customers or discharge to the environment.
• Commissioning Engineering: Ensures that systems and components are designed, installed, tested, operated, and maintained according to the operational requirements of the client.
• Smart Technology / IoT: Ability to design, install and commission smart technologies and IoT systems, including selecting appropriate technology, sensors, devices, and communication protocols. Ensuring these are integrated into site industrial control systems and connected to top-end communication and corporate data platforms.

Suppliers were able to bid on one or multiple sublots with the potential to be awarded more than one sub-lot.

Contracts have been awarded as follows:

Lot 1 - Primary Designers (4 tenders received)

Initial estimated total value of the contract/lot: £1.3 billion (excluding VAT)

• AECOM Ltd
• Stantec UK Ltd

Lot 2 - Asset Delivery Partners (9 tenders received)

Initial estimated total value of the contract/lot: £7.7 billion (excluding VAT)

• WGM Engineering
• Mott MacDonald Bentley Ltd
• Farrans Limited
• Ross-shire Engineering Limited (RSE)
• M Group Water (Network Infrastructure) Ltd

During SR27, Scottish Water will also procure a Domestic Subcontract Network (DSN) and a Tier 2/Regional framework which will be suitable for small/medium enterprises and specialist partners to work with the enterprise and will support capital and operational requirements. Wider frameworks will be procured for materials, plant and specialist water and wastewater equipment that all partners within the supply chain can utilise opening up further opportunities for the market to be part of the SR27 Scottish Water Supply Chain.