Costain, the infrastructure solutions company, has been selected by United Utilities as one of seven partners that will deliver its new strategic investment programme.
This new programme, which expands the relationship between Costain and United Utilities, is expected to see the seven partners deliver £3bn of projects during the 2025-2030 Asset Management Period 8 (AMP8) period. The agreement also offers the potential for a further five-year extension (2030-2035).
Costain will work with United Utilities and its partners to form an integrated enterprise delivery organisation to deliver upgrades to United Utilities’ complex infrastructure and non-infrastructure assets, including water and wastewater treatment sites, pumping stations and reservoirs. Costain’s services will include:
- Project management, engineering and design services, including ground investigations, geotechnical studies, mechanical and electrical engineering, tunnel design, planning services, technical support, asset data gathering and environmental management.
- Construction and asset supportability services, including all enabling, temporary works, landscape and biodiversity mitigation requirements and coordination of construction activities to ensure regulatory compliance.
As part of this strategic framework, Costain will actively engage and build strong relationships with United Utilities and other supply chain partners, to help United Utilities deliver services in an environmentally sustainable, economically beneficial, and socially responsible manner to create sustainable long-term value for all.
This contract builds on United Utilities extending its Managed Service Provider contract with Costain for AMP8 which was announced last year.
AMP8 will see the biggest investment in the water industry for decades, with investment expected to be double that of the previous cycle. Earlier this year, Costain was appointed by Northumbrian Water to help shape and deliver its programme, including AMP8 upgrades.
Alex Vaughan, CEO, Costain, commented:
“We’re delighted that this new contract win extends our relationship with United Utilities and that we can bring our leading strategic expertise to support upgrades of its critical infrastructure. This announcement builds on our growing positions with the leading water companies as they prepare for the vital AMP8 investment period.
“This appointment demonstrates our strong track record for delivering pioneering solutions, the strength of our leading water expertise, as well as our successful reputation for working in effective collaborative enterprises. It also builds on our existing Managed Services Framework with United Utilities, now in its sixth year of operation. Together, we will safeguard the supply of water and deliver committed environmental improvements.
“In addition, this work will be transformative for the local economy, increasing prosperity, creating jobs, and developing skills across the region. It also reinforces our commitment to improving infrastructure in the North-West of England, where we’re already working to upgrade the region’s transportation and energy networks, generating opportunities for the local supply chain and driving growth.”
Jane Simpson, capital delivery director at United Utilities, said:
“We’re really excited that we have secured some strong delivery partners to ensure we can deliver on our ambitious plans to transform infrastructure and services in the North West.
“It will be our most ambitious programme yet and by putting this partnership in place with some of the best design and construction companies in the country, it allows us to get to work quickly and deliver the transformation that we know our customers want to see.”
