Winners revealed for £600m Cadent gas deal

Grant Prior 4 weeks ago
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Cadent has picked winners for a ten-year programme of construction works on its gas distribution networks.

Cadent has awarded regional deals 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

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.

Cadent’s current deal comes to an end in March 2021. The current strategic delivery partners are Balfour Beatty, and tRIIO – a joint venture organisation owned by Morrison Utility Services and Skanska UK.

The new Construction Management Organisations deals will see firms manage the delivery of construction, operational activities and associated services within each network.

Sapphire Utility Solutions, in a joint venture with Enzen Global has landed the West Midlands region.

Work will includes more than three hundred kilometres of mains replacement every year for the next ten years.

Colin Kelly, Managing Director for Sapphire Utility Solutions, said: “This award is a testament to our fresh thinking, collaborative mindset and ability to develop innovative approaches that will allow us to support Cadent in meeting its annual commitments.

“Through the introduction of a new dynamic operating model, we will safely deliver services that delight customers and create a legacy for future generations in the local communities that we serve.”

In a joint statement Sanjay Neogi, Head of UK and Europe for Enzen Global, and Manish Jamthe, CEO of Enzen UK, said: “The confidence that Cadent has shown in the grant of this contract has made us extremely happy and is a confirmation of our deep expertise in the utilities network and construction management domain.

“We arrive with next-level innovation and process efficiency to steer Cadent through the regulatory and business commitments while building a best-in-class operating model.”

Howard Forster, Cadent chief operating officer said: “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.”

Each of the winners will now appoint Local Delivery Partners who will carry out the mains replacement work with contracts due to be awarded in the Autumn.

 

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