Contractors named for multi-billion-dollar water plan

May 28, 2013

Melbourne Water announced the preferred contractors that will play a significant role in delivering its capital projects over the next five years, starting on July 1.

Following a comprehensive tendering process three providers were selected, all of which comply with the Victorian Code of Practice for the Building and Construction Industry:

  • United Group Limited, Sinclair Knight Merz and Baulderstone;
  • John Holland and KBR; and
  • Abigroup and CH2M Hill

The contractors will tender for a proposed $1 billion worth of projects from the projected $2.5 billion capital program as outlined in the 2013 Water Plan. The plan requires approval from the independent pricing regulator, the Essential Services Commission.

Managing Director Shaun Cox said the service panel was a new approach for Melbourne Water that was designed to drive efficiencies across the business.

"Customer affordability is at the forefront of our next water plan and this new delivery model is designed to drive better value for money for Melburnians," Mr Cox said.

"The new model will see a panel of three providers compete for work on a project-by-project basis rather than bundles of works, helping to drive more competitive prices.

"This is a smarter and more commercially driven approach to delivering the essential services that Melbournians rely on now and in future," he said.

Mr Cox said the 2013 plan sees a shift away from large-infrastructure projects to a focus on renewing ageing infrastructure and maintaining an expanded asset base.

Works proposed in the plan include a $200 million capacity upgrade to the Western Treatment Plant, $130 million to renew ageing water supply pipes and $96 million for essential services in Melbourne's growing west.

River health will be boosted with a package of works worth $104.3 million while $105.7 million is earmarked for flood protection works.

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Melbourne Water

Nicolas McGay

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