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Water Management

Construction Material Manufacturer

Project Scottish Water Supply Procurement
Location Scotland
Classification Water Procurement
Sector Construction

constructionOverview

Despite opening in 2008, until recently the opportunities available in the Scottish water retail market were only in improved customer services and the possibility of better billing and AMR solutions. Recent activities within the market have improved the potential and now cost savings of up to 20% of annual spend have been experienced through procurement exercises. A national construction materials manufacturer was keen to take advantage of these opportunities and build some experience in preparation for the English water market opening.

Results

£45,000 – Approximate annual savings
7 – Tender responses from ten suppliers
20% – Negotiated discount off supply and waste water charges in excess of 20%
Free AMR – Secured free AMR for high consuming sites
28 day – Payment terms for a quarterly invoice
£0 – No mid-term contract cancellation fee

The Project

Water supply procurement poses many complexities, misleading offers and unclear information. Waterscan provided a procurement service which delivered clarity and guidance in selecting the best provider. The project started by establishing the key criteria for the client in their future water supply agreement which enabled the submissions to be analysed with the main drivers and service requirements in mind.

The key client criteria were agreed upon as being:

  • Cost benefit
  • Service delivery
  • Electronic billing
  • Real consumption data billing
  • AMR installation
  • Payment terms
  • Contract Term discount
  • Additional services

A shortlist of suppliers was then provided with each companies proposal analysed against the client criteria to provide clarity on the value of the offer and guidance for a decision to be made.

The project delivered in excess of 20% discount on supply and waste water charges, free AMR for high consuming sites and improved payment and contract terms. As part of the relationship, Waterscan continue to be involved with supplying updates on English market opening, changes in Scottish market situation and other development’s which could affect the opportunity to secure a better supply agreement.