Scottish Water names preferred firms for £9bn upgrade

Scottish Water has named its preferred bidders for a £9bn capital investment drive stretching across the next two regulatory periods.

In what will become one of the UK’s biggest long-term delivery alliances, the utility giant will form a new enterprise partnership to upgrade water and wastewater assets from 2027 to 2033, with an option to extend to 2039.

The enterprise model will handle around a third of SR27 spend and is designed to integrate designers, contractors and Scottish Water teams into high-performing, outcome-driven delivery groups.

The line-up will operate under an advanced partnering model, with embedded Scottish Water staff, shared behavioural frameworks, minimum KPI thresholds and incentives tied to service and enterprise-wide outcomes.

All partners will be required to utilise Scottish Water’s specialist and supply-chain frameworks, working to CDM 2015 regulations.

Director of Capital Investment Rob Mustard said: “The Enterprise is the most significant programme of investment and way of working we have ever implemented.

“It supports our goals of financial sustainability, customer and service excellence, and going beyond net zero, all while contributing to a flourishing Scotland.”

He said Primary Designers will carry full design accountability, while Asset Delivery Partners will drive programme performance and delivery of capital works across Scotland.

Scottish Water aims to deliver the programme of works under an Enterprise model of delivery. This bespoke contract will be based on the NEC4 Alliance model.

Procurement is due to conclude in March 2026, triggering a seven-year delivery window through to March 2033, with the option of a six-year extension.