It is the first time United Utilities has outsourced its maintenance activity as it seeks to drive material efficiency and operational improvements. 

The five-year term contract is expected to be worth £175m, with an option to extend for a further five years.

Costain will manage maintenance at 96 water treatment and 575 wastewater treatment sites, which serve over six million people in the North West of England.

The contractor’s integrated technology and consulting solutions will help United Utilities move from a reactive ‘fix-on-fail’ approach to a proactive maintenance programme.

This will improve the resilience of its assets and environmental outcomes whilst ensuring continuity of supply and consequently lowering costs for its customers. 

Contract mobilisation will begin immediately. The framework is expected to be worth c £35 million per annum throughout the duration of the contract.

The Group continues to be involved in a wide range of tendering activity across the UK water sector in anticipation of AMP7 (2020-2025) for which companies have pledged to spend more than £50 billion on improving services, a double-digit increase on the previous period. 

Alex Vaughan, CEO of Costain, said: “By integrating our programme management, asset optimisation and technology capabilities, Costain will help United Utilities to support its business transformation.

“Our integrated services and use of digital technology will help to deliver a step change in business performance and operational efficiencies for United Utilities in support of their strategy and in line with customer expectations and regulatory requirements.”