‘Strategically important’ water services deal for Costain


Costain has been reappointed to a key water services framework for a major provider. 

Costain and United Utilities.
Credit: Costain and United Utilities.

United Utilities reselected the company as its Managed Service Provider (MSP) for a further two years, from May 2024 to May 2026. 

This contract extension also has an option to be extended for a further three years. 

It builds on the original five-year MSP contract awarded in 2019, wherein Costain provided management and asset maintenance throughout the North West to 96 water treatment sites, 575 wastewater treatment sites, pumping stations and service reservoirs. 

These facilities alone serve more than seven million people in the UK.   

The award extends into the next regulatory cycle, AMP8 (April 2025 to March 2030).   

What is AMP?  

The purpose of AMP periods, set by industry regulator Ofwat, is to increase efficiency and service levels within the sector via capital programmes.  

In AMP8, water suppliers are facing both environmental and regulatory challenges, including net zero by 2030, reducing sewage spills, and to mitigate the effects of climate change 

The MSP Framework 

  • Core contract – maintenance services to more than 900 sites; and, core projects of a greater scale and complexity. 
  • Non-core contract – large capital projects e.g. design and construction of remedial works to the Clough Bottom Impounding Reservoir (Lancs) and upgrades to the Audlem Wastewater Treatment Works in Cheshire.  

Ofwat recently announced 33 utilities infrastructure schemes totalling £2.2 billion, from which United Utilities and its suppliers will benefit.  

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

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

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