The largest procurement ever undertaken by Scottish Water has been launched to transform the country’s public assets to keep taps flowing and protect the environment.
Firms are being invited to bid to be involved in a ground-breaking enterprise-style approach to enhancing Scotland’s water and waste water infrastructure over the period 2027 to 2033, with a potential extension for another six years.
The overall value of the enterprise – known as Delivery Vehicle 4 – is between £5bn and £9bn and is the highest value venture put into place by Scottish Water.
It is anticipated that the total Scottish Water SR27 investment programme will support around 4000 jobs and create opportunities for 1500 young people.
Director of Capital Investment, Rob Mustard, said the programme would bring significant benefits to communities, the economy and the environment.
He said: “DV4 is the most significant programme of investment and way of working we have ever implemented. It supports our goals of financial sustainability, service excellence, and going beyond net zero, all while contributing to a flourishing Scotland.”
Replacing the current 12-year-old Delivery Vehicle 1 (DV1), DV4 will oversee asset investments and handle high-value and complex construction and engineering projects.
Mr Mustard said: “We’re moving to an ‘advanced partnering’ model, shifting from traditional contracting to a more collaborative approach. This model brings partners together through agreed outcomes, ensuring we deliver value for our customers and innovation in every project.”
The procurement is being advertised as one contract notice in two parts; successful participants will work closely with Scottish Water’s expert teams across the country and the collaborative effort is designed to boost efficient and effective project delivery.
A further network will also be created, providing opportunities for SMEs and micro-specialists to collaborate with the main partners. A regional framework will also be procured consisting of small and medium enterprises, supporting capital and operational requirements.
Mr Mustard said: “This supply chain will support over 4000 jobs and create opportunities for over 1500 young people. This initiative is not just about economic growth; it’s about delivering real social value to our communities.”
A market engagement day for DV4 took place on 24th October, drawing over 200 delegates from about 70 businesses. This event offered insights into Scottish Water’s new supply chain design and the upcoming procurement.
The procurement process officially started on Monday November 25th and is expected to be fully completed by March 2026.
Mr Mustard added: “The DV4 model represents a significant evolution in how we approach capital investments. It’s designed to drive innovation, efficiency, and sustainability, aligning with our long-term goals of environmental stewardship and community enhancement. We’re eager to partner with others to achieve these ambitions.”
