United Utilities has awarded Costain a maintenance contract that could be worth £350m over the next 10 years.
United Utilities has appointed Costain as its sole maintenance service provider across its operations. The framework contract runs for an initial five year term with an option to extend to 10 years.
The framework is expected to be worth £35m per year throughout the duration of the contract.
Under the contract Costain will provide overall management and delivery of United Utilities’ larger scale water and waste water asset maintenance activities across its network. This includes 96 water treatment and 575 waste water treatment plants in the northwest of England.
It is the first time that United Utilities has outsourced its maintenance activities as it seeks to cut costs.
Costain’s winning pitch was that it would help United Utilities move from a reactive ‘fix on fail’ approach to a more strategic preventative maintenance programme.
Costain chief executive Alex Vaughan said: “By integrating our programme management, asset optimisation and technology capabilities, Costain will help United Utilities to support its business transformation. Our integrated service and use of digital technology will help to deliver a step change in business performance and operational efficiencies for United Utilities in support of their strategy and in line with customer expectations and regulatory requirements”.