Tier 1 Contractor Design and Construction – Adrian Mercer, Technical Director, Veolia Water UK and Ireland

Business

Tier 1 Contracting within the Water
Industry
Dr Adrian Mercer
Technical Director - Veolia

UK Water Market Overview
• Regional monopolies privatised in 1989
• 12 water only companies and 10 water
and Sewerage companies operating in
England and Wales
• Scottish and Northern Ireland Water
remain in government ownership
• 5 yearly regulatory price control period
(AMP) drives industry procurement
• Increasing ownership by Infrastructure
funds seeking long-term stable cash
returns

Key Client Drivers
• Totex
• Moving from Outputs to Outcomes
• Cost of Capital
• Market reform
• Carbon – embedded and operational
• Circular economy & sustainability
• Energy volatility
• Shareholder returns
• Resource constraints
• Customer expectations
• Austerity

What does that mean for the Sector?
• A real terms reduction in the cost of delivering water services
• Stretching performance targets
• More efficient ways of maintaining and exceeding current levels of
service
• Requirement to improve the efficiency of the ‘pound in the ground’
• Early engagement of the supply chain
• Align performance and incentives throughout the supply chain
• Many companies have separated the ‘Design’ from the
‘Construction’ phase
• A rise in the role of the ‘intelligent client’

Totex, Totex, Totex….
Operation and
first line
maintenance
£3.7bn
Capital Maintenance
Simple Replacement Upgrade
£12.9bn
Complex
Maintenance –
Service
Enhancement
£4.7bn
Operation and
first line
maintenance
£4.6bn
Capex Delivery
Joint Ventures
O&M
Contracts

Changing face of Design Build
Feasibility
Optioneering
Solution Development
Design
Procurement
Construction
Commissioning

Capabilities Required
• Requirement to demonstrate ‘local commitment’ – SMEs
• Regional presence
• Evidence of resources to deliver (self delivery)
• Off-site fabrication experience
• Off-shoring capability
• Apprenticeships and training are key
• Agile workforce

Competencies Required
• Behavioural based assessment centres
• ‘Select for attitude’
• Demonstrable HSEQ record
• More weighting on carbon and innovation
• Contractor accreditation required (Achilles, ISO, IoSH etc)
• Social and ethical policies in place and practiced
• Desire to know who the delivery team is

Terms & Conditions
• Clients looking to incentivise value creation rather than exploiting risk
• Expectation that you have ‘skin in the game’
• Guaranteed maximum price with a pain / gain mechanism is not
uncommon
• Margins are low essentially designed to cover cost, profit arises from
out-performance
• Incentivisation mechanisms run over the long term (5 years +)
• Parent Company Guarantees / Security Bonds are increasingly
onerous
• Payment terms can be up to 120 days

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This document provides guidance on writing successful applications for R&D grant funding. It outlines the key sections assessors will review, including an overview of the need or challenge being addressed, the proposed approach and innovation, the project team and resources, market awareness, outcomes and route to market, wider impacts, project management, risks, additionality, and costs/value for money. The document emphasizes answering the specific questions, compellingly presenting the narrative, and using evidence and appendices to further convince assessors. It stresses making a strong first impression and maintaining a high standard throughout the application.

Finance Options in a Dynamic Environment

The document discusses providing financial support to businesses dealing with Brexit uncertainty. It notes that UK banks are well-capitalized and want to lend to support viable firms. A campaign called "Let's Talk Business" aims to highlight financial support available and encourage businesses to discuss changing needs early with lenders. The finance industry is ready to help businesses through Brexit over coming months and longer term opportunities.

Invest NI Brexit Information Workshop - February 2019

The document summarizes information about Brexit and its impact on immigration and the rights of EU nationals living in the UK. It discusses the pre-Brexit rights of EEA nationals to live and work in the UK. It outlines what has been agreed between the UK and EU so far, including that EEA nationals must apply to the EU Settlement Scheme to continue living and working in the UK after the transition period ends. The deadline for applications is June 2021 but may be December 2020 in a no-deal scenario. Employers are advised to understand how Brexit may impact their workforce and consider strategic options to support EU national employees.

Design for Export

The document discusses Beasts of War, a media company focused on gaming. It provides statistics on their audience demographics and following across platforms. Their audience skews male but they are growing their female audience. Most of their audience is between ages 25-54 and they have a global following of over 200,000 unique followers per month across websites, YouTube, Facebook, Twitter and newsletters. The document also compares Beasts of War to similar gaming sites like Board Game Geek and Geek & Sundry in terms of traffic and subscribers.

Design for Export

This document provides an overview of Nuprint, an innovative packaging supplier founded in 1984 that specializes in manufacturing high-quality labels. It discusses Nuprint's history of growth, investment in new technology, commitment to quality, and work with leading brands. The document also outlines Nuprint's focus on staff training, well-being, and supporting research projects to continue pushing innovation in the label and packaging industry.

Design for Export

Export is vital for a company's survival and growth. Design contributes significantly to exports, with the value of design exports outpacing overall UK export growth between 2013-2016. Understanding customer needs, product use, sales channels, logistics, service expectations, culture, and environment are important for exporting successfully. Localizing branding, marketing messages, and adapting to cultural norms and etiquette also helps companies export effectively.

Presentation - Funding for Innovation in Life & Health Sciences

This document provides information on funding opportunities for innovation in life and health sciences in Northern Ireland. It discusses various organizations that provide support, including Invest NI, Innovate UK, Knowledge Transfer Partnerships (KTP), universities, and other partners. Funding mechanisms covered include grants, vouchers, proof of concept funding, and targeting of external funding sources like Horizon 2020. Application requirements and eligibility criteria for different programs are outlined. Success stories from companies that utilized support are also presented.

Stephen McComb - Masterclass - Funding for Innovation in Life & Health Sciences

This document provides guidance on applying for R&D grant funding from Innovate UK. It outlines the types of funding available, including grants, innovation loans, and SBRI funding. It advises considering factors like the stage of R&D, level of government contribution, whether the project is single or collaborative, and duration. Eligibility criteria include the applicant being a small/medium/large business or research organization. Successful applications will be business-led, have collaboration between multiple organizations, and have projects that align with the funding competition topics and demonstrate world-leading innovation. The document provides tips on searching for funding opportunities on Innovate UK's website and supports businesses in developing competitive applications.

Networking Event for Personalised, Digital Health Innovations in Horizon 2020

This document provides an overview of Horizon 2020 funding and advice on getting involved based on the author's experiences. It begins with an outline of Almac Group, its vision and global presence. Two example Horizon 2020 funded projects are described: TransPot, a 4-year €2.5M prostate cancer research program involving Almac Diagnostics and QUB; and APPFlow, a 4-year PhD student-focused flow chemistry training program between Arran Chemical and QUB with Almac Group as a partner. The author advises that getting involved can provide cash, build teams and markets, but cautions that the administrative burden should not be underestimated and strong project partners and management are important for success.

Networking Event for Personalised, Digital Health Innovations in Horizon 2020

Networking Event for Personalised, Digital Health Innovations in Horizon 2020

This document provides an overview of the Horizon 2020 program, the EU's research and innovation program from 2014-2020 with a €80 billion budget. It summarizes funding for the UK and Northern Ireland specifically, noting over €66 million for Northern Ireland with a success rate of about 14%. It also summarizes the main instruments available, including the SME Instrument providing up to €2.5 million to support innovation and growth, the Fast Track to Innovation program focusing on bringing ideas closer to market, and the Horizon Prizes competition focusing on breakthrough innovations addressing societal challenges. Practical information is provided on eligibility, submission deadlines, and available support services.

Networking Event for Personalised, Digital Health Innovations in Horizon 2020

More from Invest Northern Ireland (20)

Grant writing masterclass 16 August 2019

Horizon 2020 ICT and Advanced Materials & Manufacturing

Funding for Innovation in ICT 21 May 2019

Innovate UK funding application answer guide slides

Finance Options in a Dynamic Environment

Invest NI Brexit Information Workshop - February 2019

Design for Export

Presentation - Funding for Innovation in Life & Health Sciences

Stephen McComb - Masterclass - Funding for Innovation in Life & Health Sciences

Networking Event for Personalised, Digital Health Innovations in Horizon 2020

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