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Wednesday, October 28
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9:06 AM EDT

ContractsUK

Thames Water names nine contractor teams for £4bn water and sewage works framework

Nine contractor teams, 12 companies in all, have won places on a Thames Water Major Projects Framework worth an estimated £4 billion before VAT for treatment works and pipelines in London and southeast England. It runs to March 2030, with options to 2035.

Single firms took seven of the places, Smart Water Magazine reported: BAM Nuttall, Costain, Barhale, Galliford Try, J. Murphy & Sons, Kier and Mott MacDonald Bentley. The other two are partnerships. Taylor Woodrow is paired with US engineering group Amentum, and Ferrovial Construction shares a place with consultant Binnies and Cadagua, the Ferrovial group's water treatment company based in Bilbao. With VAT, the framework's estimated value is £4.8 billion.

A seat on the panel comes with no guaranteed work. Jobs will be let one by one as project contracts for preconstruction, engineering and construction, each subject to approval, according to the award notice. Thames Water valued the first wave at £840 million when it opened talks with the market in July 2025: 10 projects at nine sites. Seven are sewage treatment works, among them Beckton and Crossness in east London. At the other two, the Ashford and Hampton water treatment works, the schemes add ultraviolet treatment. Later work includes new pipelines, pumping stations and plant upgrades, Construction Enquirer reported.

The tender had capped the panel at eight suppliers, and Thames Water has not explained the ninth place. Quality counted for 60% of the score and price for 40%. The standstill period ends Nov. 3 and signing is set for Nov. 4. A court challenge served on Thames Water before then would put signing on hold automatically.

The awards come as the utility's finances are being rebuilt. On Oct. 16, Thames Water reached a support deal with creditors holding over 60% of its Class B debt. Under the plan, the Class B debt, roughly £1 billion, would be wiped out in return for equity expected to give creditors back about 5.9% of its value, the company said. Behind the recapitalisation plan is the London & Valley Water consortium. It says the turnaround needs a minimum of £10 billion in committed private money. Thames Water says it has not decided whether to accept the proposal.

Why it matters: Watch how a utility under financial strain buys large treatment work: long frameworks, quality-weighted scoring and no guaranteed volume. A US engineer won a seat by teaming with a British builder, a route open to American firms chasing work abroad.

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