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United Utilities

United Utilities – Facilities Management

  • Warren Kozera
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United Utilities asked us to review the value for money achieved from their facility management (FM) contract with Emcor versus what would be considered best value in the UK market. We were also asked to review the capital delivery partner (CDP) framework contracts to support a decision to award a five-year extension into Asset Management Plan 7 (AMP7). Using our Procurement Transformation service, we were able to perform an FM and CDP review within 3 months, feeding back the results to the client.

United Utilities were keen to understand if they were receiving best value from their facility management contract with Emcor. A detailed review needed to be undertaken to understand how Emcor’s contract benchmarked within the industry. United Utilities also sought to review the CDP framework contracts to support a decision pending regarding awarding a five-year extension into Asset Management Plan 7 (AMP7).

To establish level of value we undertook a facility management review, which involved four primary tests:

  1. The supplier commercial perspectives on the account
  2. The contract award decision
  3. Compliance to the contract awarded
  4. A study of the facility management market.

A review of the CDP framework involved consideration of the lessons learned from ADMP6 and relevant market insights/best practice. Primary tests involved:

  1. A study of the UK’s construction market
  2. Review of the performance of the contracts awarded
  3. Analysis of the optimal procurement strategy for AMP7

We found United Utilities’ FM contracts to be wholly justified as good value for money to United Utilities’ shareholders and regulatory bodies. We also recommended an extension of the CDP contracts for AMP7.

“An asset to anyone with complicated renegotiation or procurement requirements.”

John Sharkey, Head Of CIO Business Partners, United Utilities

Barkers: United Utilities Case Study

Author: Warren Kozera
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