International infrastructure group Balfour Beatty plc today announced that its joint venture with Skanska and MWH Global, SMB, has secured a seven-year AMP6 contract with Thames Water which will help to ensure the resilience of the water infrastructure in London and the South for future generations.

The contract is worth £1 billion to £1.5 billion to the joint venture, shared equally between the three partners. It will begin in May 2013 with the 23-month Early Contractor Involvement (ECI) phase, in preparation for the delivery of the sixth Asset Management Plan (AMP). Running from April 2015 to March 2020, AMP6 involves the design and construction of the water infrastructure network including replacing pipes, pumping stations and water treatment works.

SMB will be providing design-and-build solutions as part of Thames Water’s ‘super-alliance’ of industry-leading organisations in a move that reflects Thames Water’s decision to confirm its partners two years before the following five-year regulatory period, transforming the way it delivers capital investment.

Commenting on the announcement, Balfour Beatty Chief Executive, Andrew McNaughton, said:

“We’re very pleased to be an integral part of Thames Water’s AMP6 cycle at a time when the company adopts a completely new approach to its capital investment.”

“The pipes and pumps that keep our water system working are crucial, and we are delighted to be bringing our skills and experience to this important programme in water, one of our key economic infrastructure sectors.”

Using its industry experience, SMB said it will work to develop an injury-free environment, drive out waste and promote a sustainable procurement strategy, focusing on whole-life costing.  This will include making best use of the ECI phase to produce the delivery plan.  The plan will optimise the benefits of standardisation and establish a method for resource scheduling that will achieve programme efficiencies while minimising energy consumption.

During the delivery phase SMB will use its award winning sustainability expertise to deliver lowest capital and operating cost solutions, it said. The JV team will draw on the sustainability experiences of each of its partners, using BIM technology to bring whole-life costing and carbon foot-printing considerations to every project and programme option.

Peter Jones, Alliance Board representative for the joint venture and Skanska’s Managing Director, Utilities, said:

“All three of the joint venture partners bring industry-leading experience and best practice to the contract, offering balanced capabilities across the portfolio of work for Thames Water.

“In winning this contract, we have shown we not only meet all the technical requirements, but also have the collaborative team dynamic to deliver the best solutions, working alongside the rest of the alliance members and with a range of stakeholders. We have put forward a really strong team to deliver this important contract.”

John Abraham, JV Director and Managing Director MWH Treatment, said:

“Culture and collaboration is key to the Alliance. We will innovate and work together with our partners and the whole supply chain to ensure that we provide affordable and sustainable solutions for the region, delivering on Thames Water’s commitment to always provide safe and reliable water and sewerage services. We are totally committed to improving service to Thames Water customers.”