Costain awarded extension to key water company contract

Infrastructure specialists Costain have been awarded a "strategically important" contract extension by its client United Utilities.

Costain will work as the Managed Service Provider (MSP) with the UK's largest listed water company for a further two years, from May 2024 to May 2026.

As well as building on the original five year MSP contract awarded in 2019, the contract extension also has an option to be extended for a further three years and takes the partnership into the next regulatory cycle (AMP8 between 2025 and 2030).

Sam White, managing director of the natural resources division at Costain said: “This is a strategically important contract for Costain. 

"We’ve already delivered big improvements working together with United Utilities on the MSP Framework, leveraging increased automation of data processing and insights to enhance our service delivery. 

"I’m delighted that we’ll be continuing this relationship to help United Utilities ensure a sustainable, resilient and efficient service for its customers.” 

United Utilities is working to ensure the resilience of its network to the effects of climate change, including improving the quality of its wastewater effluent and providing a reliable drinking water supply to its customers.  

Since 2019, Costain has provided management and asset maintenance activities throughout the north-west at 96 water treatment sites, 575 wastewater treatment sites, pumping stations and service reservoirs, which serve over seven million people.  

The MSP Framework consists of two types of work. These include the core contract and the non-core contract.

The core contract involves maintenance services of very high-volume and short-duration activities to over 900 sites covering repair, replacement and refurbishment of equipment such as pumps. It also covers core projects which are of a greater scale and complexity, delivered as projects. 

Since the start of 2022 the MSP has developed solutions to 132 core projects, including installation of a new mixer system within Wayoh Impounding Reservoir, Lancashire and an upgrade to existing gas holders at Manchester Bio-resource Centre (MBC) at Davyhulme Wastewater Treatment Works in Greater Manchester.

The non-core contract includes the delivery of larger capital projects such as the design and construction of remedial improvements to the Clough Bottom Impounding Reservoir in Lancashire and upgrades to the Audlem Wastewater Treatment Works in Cheshire. 

Within the MSP Framework, Costain has delivered a wide range of activities and projects to date and made a significant contribution to United Utilities meeting key regulatory requirements.  

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