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Miller Water forms consortium
00:00 11 Aug 1999
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Miller Water has formed a consortium, AMMP Waste Water Services,
which hopes to pre-qualify as one of Yorkshire Water's partnering
contractors.
The AMMP team also includes Ove Arup, Pipeline Constructors and Meica Processes. Miller would undertake overall project management, major civils activities and M&E requirements, while Ove Arup would act as design consultant for the feasibility studies, outline and detail design work. CSOs and smaller civils would be undertaken by Pipeline Constructors, with Meica Processes tackling the process plant work.
Yorkshire Water plans to spend £1.7 billion on capital projects between 2000 and 2005. Apart from major schemes, it plans to divide its remaining workload into six areas, appointing a contractor to manage and run each area. AMMP Waste Water Services is chasing such an appointment.
Miller Group's civil engineering turnover is £100 million. Within civils, the water division accounts for a turnover of £40-45 million, the figure being forecast to rise to £65 million next year. Currently, M&E projects within the water sector are worth £5 million.
"That figure will jump to £10 million this year, and then to £20 million by the end of 2001," said Lee Horrocks, Miller Water's mechanical and electrical manager.
"The average construction group is making margins of 1-1.5 per cent, but Miller is privately owned and the family looks for 4-5 per cent margins, which we won't get in traditional contracting."
Horrocks says that partnering in M&E Water will climb from the current figure of 40 per cent to around 70 per cent by the end of 2001. "By then, half the workload will be in framework with our partners and suppliers," he added.
"At Miller, the preparation work has been done to identify key suppliers. We are starting interviews so as to then tie things down. I expect 6-10 names in each discipline. There would then be benchmarking and key performance indicators put in place, with a view to Miller then moving to partnering arrangements with the best suppliers. I reckon it will take us 18 months to develop this."
If AMMP Waste Water Services is successful in winning work with Yorkshire Water, the partners will consider bidding for work with other water plc's.
The AMMP team also includes Ove Arup, Pipeline Constructors and Meica Processes. Miller would undertake overall project management, major civils activities and M&E requirements, while Ove Arup would act as design consultant for the feasibility studies, outline and detail design work. CSOs and smaller civils would be undertaken by Pipeline Constructors, with Meica Processes tackling the process plant work.
Yorkshire Water plans to spend £1.7 billion on capital projects between 2000 and 2005. Apart from major schemes, it plans to divide its remaining workload into six areas, appointing a contractor to manage and run each area. AMMP Waste Water Services is chasing such an appointment.
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Miller Group's civil engineering turnover is £100 million. Within civils, the water division accounts for a turnover of £40-45 million, the figure being forecast to rise to £65 million next year. Currently, M&E projects within the water sector are worth £5 million.
"That figure will jump to £10 million this year, and then to £20 million by the end of 2001," said Lee Horrocks, Miller Water's mechanical and electrical manager.
"The average construction group is making margins of 1-1.5 per cent, but Miller is privately owned and the family looks for 4-5 per cent margins, which we won't get in traditional contracting."
Horrocks says that partnering in M&E Water will climb from the current figure of 40 per cent to around 70 per cent by the end of 2001. "By then, half the workload will be in framework with our partners and suppliers," he added.
"At Miller, the preparation work has been done to identify key suppliers. We are starting interviews so as to then tie things down. I expect 6-10 names in each discipline. There would then be benchmarking and key performance indicators put in place, with a view to Miller then moving to partnering arrangements with the best suppliers. I reckon it will take us 18 months to develop this."
If AMMP Waste Water Services is successful in winning work with Yorkshire Water, the partners will consider bidding for work with other water plc's.
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