What's Happening?
Severn Trent Water has initiated a tender process for a £1.2 billion framework focused on tunnelling, drilling, and shaft works across England and Wales. The framework, which will run from September 2026
to September 2038, includes both build-only and design-and-build packages, with the latter expected to dominate. The procurement is being conducted under the Procurement Act 2023's competitive flexible procedure. The framework is divided into two main lots: build-only and design-and-build, covering 17 work types such as pipe ramming and micro tunnelling. The deadline for participation requests is April 28, 2026, with an award decision anticipated by September 30, 2026.
Why It's Important?
This tender represents a substantial investment in the UK's water infrastructure, aiming to enhance the efficiency and reliability of water services across multiple regions. The framework's focus on both build-only and design-and-build projects allows for flexibility and innovation in addressing complex engineering challenges. By involving multiple regions, the project is set to create numerous opportunities for contractors and suppliers, potentially boosting local economies and employment. The initiative also reflects Severn Trent's commitment to maintaining and upgrading essential infrastructure, which is crucial for sustainable development and environmental management.
What's Next?
Following the tender process, Severn Trent will evaluate bids based on a technical-price split, with shortlisted bidders assessed on a 70:30 ratio at the framework award stage. The framework allows for call-off competitions using a 60:40 technical-price split. Between five and seven suppliers are expected to be invited to tender for each lot. The successful implementation of this framework could set a precedent for future large-scale infrastructure projects, encouraging further investment in the sector.
