Cadent has awarded four construction management service contracts worth £600m to provide its mains replacement programme in each of its networks from April 2021
The Construction Management Organisation (CMO) contracts have been awarded to four contractors who will work closely with Cadent’s network teams during the next two regulatory periods.
The contractors will manage the planning and delivery of each network’s mains replacement programme and other related investment projects.
The new performance-related contracts are valued at around £300m over the initial five years, with a second five-year term, taking the overall potential value to £600m.
The construction management service contracts have been awarded to:
- Costain – East of England network
- Morrison Utility Services – North London network
- Network Plus – North West network
- Sapphire Utility Solutions and Enzen Global Solutions joint venture – West Midlands network.
Howard Forster, chief operating officer at Cadent, saif: “We are delighted to be working with each of these companies. The use of a Construction Management Organisation contract across our gas mains replacement work is a new and innovative approach for Cadent.
“We are utilising knowledge and experience from other sectors, regarding this type of strategic partner contract.
“It is designed to allow these partners to utilise their organisation’s capability and skills to focus on driving customer and safety performance and programme efficiency across Cadent’s major investment programme on a specific network basis.”
The next stage of the partnerships is to work with each of the CMOs to appoint local delivery partners (LDP) who will carry out the mains replacement work, contracted by Cadent but managed by each of the CMO partners in the networks.
These LDP contracts will be awarded in the Autumn.