1st Mar 2005 09:00
UNITED UTILITIES ANNOUNCES PREFERRED BIDDERS FOR CONSTRUCTION PARTNERSHIP AGREEMENTS United Utilities today announces the preferred bidders who are expected to helpdeliver around 40 per cent of its ‚£2.9 billion water and wastewater programmeduring the AMP4 (2005-10) regulatory period. This covers the majority of UnitedUtilities' water quality and environmental programme over the next five years.Discussions regarding the delivery of the rest of United Utilities' investmentprogramme are ongoing, with an announcement expected in due course.The preferred bidders are: * Montgomery Watson Harza * KMI Plus - a joint venture between Kier Construction, J Murphy & Sons, Interserve Project Services and Mouchel Parkman * Galliford Costain Atkins - a joint venture between Galliford Try, Costain and Atkins If confirmed, Montgomery Watson Harza will work alongside United Utilities'engineers and be responsible for designing the upgrades and improvements to itswater and wastewater treatment works as well as major sewer overflow schemes.KMI Plus and Galliford Costain Atkins would be responsible for detailed designwork and the construction phase of these projects.Although the contracts are being let for the 2005-10 period it is envisagedthat a longer term relationship will be created between United Utilities andits contractors, with the potential to extend contracts to 2015 depending onperformance.John Roberts, Chief Executive of United Utilities, said:"The delivery of our current investment programme has confirmed the success ofour framework contractor approach, which we put in place during AMP3. Ourarrangements for AMP4 build on this success by improving the way in whichdeliver our investment programme. This in turn will realise efficiencies andhelp us meet our regulatory targets."We are looking to reduce overheads and make significant cost savings byworking more closely with our partners. This is being achieved through thecreation of seamless work teams with responsibility for delivering projectsfrom conception through to commissioning. Key roles will be appointed on a'best person for the job' basis, regardless of which partner they work for.This will remove duplication and multiple interfaces between United Utilitiesand its contractors."Further efficiencies will also be realised through the use of common systems,improved scheduling and planning and more integrated supply chain management.By aligning the sharing of efficiencies, our contractors will also be betterincentivised to make cost savings without compromising on quality."For further information please contact:Simon Bielecki, Investor Relations +44 (0) 1925 237033Evelyn Brodie, Corporate and Financial Communications +44 (0) 20 7307 0309United Utilities' Ordinary and A shares trade on the London Stock Exchange andits ADRs, each equal to two Ordinary shares, trade on the New York StockExchange under the Trading Symbol "UU".ENDRelated Shares:
United Utilities