Galliford Try nets £400m contract to deliver Wessex Water investment plan

Construction group Galliford Try has won a contract valued at more than £400m, to help deliver Wessex Water’s six-year investment plan.

Galliford’s environment arm will work on the design and build segment of Wessex Water’s capital delivery framework, which has a total value of £3.7bn.

The water firm, which serves nearly 3m customers in the South West, has also named a number of other key suppliers, including consultancy Aecom, and the engineering and construction firm’s Mott Macdonald and Kier Group.

The contracts are expected to run until 2030, although there is the possibility of a further five-year extension.

The £3.7bn proposals form part of the wider AMP8 scheme, which sets the guidelines for how water companies in England and Wales manage their assets and invest in infrastructure.

“We are delighted to be working with our partners at Wessex Water to assist them in delivering their plans for AMP8,” Bill Hocking, chief executive of Galliford Try, said.

“The significant increase in activity anticipated in the water sector is a key part of our Sustainable Growth Strategy, and we look forward to delivering for Wessex Water’s customers and stakeholders.”

London-listed Galliford will also work on Mechanical, Electrical, Instrumentation, Controls and Automation (MEICA) and provide services as a mechanical contractor for “Capital Maintenance” projects, according to a statement on the London Stock Exchange.

The announcement comes as the UK’s largest utility firms grapple with backlash over excessive sewage leaks and a lack of investment in infrastructure.

Industry regulator Ofwat has made initital proposals for bills to increase by around 21 per cent by 2029-30 to address the issues, although water companies argue this will not be enough.

Creditors for debt-laden Thames Water are currently lining up a £1bn cash injection by the end of the year, according to a report from the Sunday Times.