The Construction Management Organisation (CMO) contracts have been awarded to four companies who will work closely with Cadent’s network teams during the next two regulatory (RIIO-2 and RIIO-3) periods to manage the planning and delivery of each network’s mains replacement programme and other related investment projects.
The new performance related contracts are valued at around £300million over the initial five years, with a second five year term, taking the overall potential value to £600million.
The contracts have been awarded to the following companies in each network:
Howard Forster, chief operating officer explained:
We are delighted to be working with each of these companies. The use of a Construction Management Organisation contract across our gas mains replacement work is a new and innovative approach for Cadent. We are utilising knowledge and experience from other sectors, regarding this type of strategic partner contract. It is designed to allow these partners to utilise their organisation’s capability and skills to focus on driving customer and safety performance and programme efficiency across Cadent’s major investment programme on a specific network basis.
The next stage of the partnerships is to work with each of the CMOs to appoint Local Delivery Partners (LDP) who will carry out the mains replacement work, contracted by Cadent but managed by each of the CMO partners in the networks. These LDP contracts will be awarded in the Autumn.
Cadent is the UK’s largest gas distribution network with a 200-year legacy. We are in a unique position to build on strong foundations whilst encouraging the curiosity to think differently and the courage to embrace change. Day to day we continue to operate, maintain and innovate the UK’s largest gas network, transporting gas safely and protecting people in an emergency. Our skilled engineers and specialists remain committed to the communities we serve, working day and night to ensure gas reaches 11 million homes from Cumbria to North London and the Welsh Borders to East Anglia, to keep your energy flowing.
Here at Cadent we support the Government’s plans to reach Net Zero by 2050. That means we’re backing the introduction of hydrogen as a low carbon alternative to natural gas for the future. We know people love the controllability of gas and, with our network already in place, it makes sense to switch to the lower carbon alternative offered by hydrogen, which we believe can keep homes and businesses warm for generations to come.
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