Embracing a new approach to water infrastructure delivery
Key takeaways
The delivery partner can help to address supply chain frustrations and improve project outcomes
Flexibility and adaptation in the delivery partner model allow for dynamic responses
A tailored approach in procurement and project management can have positive economic benefits
Undoubtedly, the traditional alliance model has been instrumental in delivering billions of pounds worth of critical assets. However, by delivering at a faster pace with greater efficiency, there is an even greater opportunity to save money rather than simply spend it. As public perception of the water industry deteriorates year on year with rising household bills, leakages, and unfulfilled targets, the call for a fresh approach becomes increasingly urgent. Tarenjit Singh, Water Sector Lead shares his thoughts on why now is the time to pivot and truly unlock the value of investment opportunities.
Capitalising on the opportunity requires water companies to explore alternatives that can better adapt to current and future challenges. With a greater focus on increasing partnerships, transparency, and overall efficiency, the prospect of creating a more sustainable supply chain ecosystem with the delivery partner model that champions these principles can be the key to unleashing untapped potential.
Collaboration
The urgency for change is underscored by frustrations among the supply chain, which have driven suppliers to consider abandoning the water sector altogether, as the Environment Agency warned when it stated that, due to population growth, there is expected to be a shortfall of nearly five billion litres of water per day between the sustainable water supplies available and the expected demand by 2050.
The delivery partner model aims to do this by setting a unifying vision across a programme. This can be especially valuable on linear programmes, where geographical spread can take its toll on collaboration. Clients in other sectors are increasingly recognising this (along with the many other benefits the model brings) and the water sector would be wise to take note. As the delivery partner on the Hudson Tunnel programme, a complex subterranean rail line between New York and New Jersey, we have adopted a ‘one team’ approach to align all parties. This method enhances the development of the project team, which includes the client, thereby improving delivery certainty and instilling confidence among stakeholders and communities for whom we are delivering.
The delivery partner model is just as effective both for fixed-location and geographically spread out programmes; the potential to integrate this approach into reservoir programmes, for instance, is significant. The scope of interest, ranging from residents to environmental regulators, combined with the complexity of the construction and connection programme, presents a compelling opportunity.
A central pillar of this proven approach is unification, where all stakeholders work together towards a common goal. The model ensures that everyone involved is fully invested in achieving positive outcomes in a fair and equitable manner.
What’s more, it translates across the entire P3M environment. And so, whether at the project, programme or portfolio level, a delivery partner works hand-in-hand with the client, providing an end-to-end service offering that blends consultancy expertise and contracting capability to build and enhance the skillset of the integrated team. In turn, this reduces the number of contractor interfaces, improves programmatic working, and enables effective portfolio management, giving client colleagues the confidence and bandwidth to spend their time focusing on important strategic requirements like corporate governance and financial planning.
Flexibility and adaptation
Founded upon collaboration and unity, the delivery partner model excels in addressing short-term needs without disturbing long-term targets. Apt for greater agility, a delivery partner can pivot plans or even scale their team size in response to demands, all without causing significant delays. This ability to reassess and modify as needed ensures that a project can change and dynamically respond to challenges without losing momentum.
For example, as the programme delivery partner for the Major Projects Change Programme with National Highways, we showcased the benefits of our flexible approach. We transformed project and programme management for the client by rapidly mobilising to establish key roles, then undertaking over 80 client delivery roles at its peak. Our efforts included developing the delivery strategy, supporting the wider transformation within the client organization, and assisting with recruitment. We ensured seamless handovers and appropriately ramped down resources towards programme completion.
In addition to our change programme, our integrated and flexible approach enabled us to deliver the £1.6bn A14 Cambridge to Huntingdon project on budget and ahead of schedule, ultimately enhancing delivery capability.
A tailored approach
Over the past couple of decades, the lack of ambition to build large-scale reservoirs has created a significant knowledge gap within client organisations and the supply chain. To address this, it is essential to engage a delivery partner with extensive experience in major infrastructure programmes in other sectors and regions. The flexibility of the delivery partner model then enables the creation of tailored solutions and innovations to meet the specific requirements and unique challenges of unique reservoir project.
When it comes to procurement, a tailored approach facilitates the development of solutions that address regional contexts, ultimately streamlining the delivery process. This focuses procurement efforts on engaging with suppliers to foster partnerships that enhance regional economic development. Our work on the 2019 Lima Games in Peru, which left a transformative legacy benefiting both the client and the community, serves as a prime example of this. By prioritising local suppliers and contractors in this way, the delivery partner model enables programmes to stimulate local economies and create job opportunities. This not only strengthens community support but also builds a more resilient supply chain that is less vulnerable to economic fluctuations.
To achieve a sustainable future, the water sector must embrace dynamic and innovative approaches to supply chain management. By moving away from traditional models and embracing alternatives like the delivery partner model for large-scale reservoir projects and capital programmes, we can create more resilient and efficient industry that meets the challenges of today and tomorrow.
