Scottish Water launches new £9bn procurement model

Scottish Water has launched the procurement for a new enterprise model delivery collaboration, worth up to £9bn – the largest it has ever undertaken.

The enterprise, known as Delivery Vehicle 4, will run for the next price review period 2027-33, with the potential to extend for a further six years. It will oversee extensive asset investments and high-value construction and engineering projects to enhance Scotland’s water and wastewater infrastructure.

Director of capital investment, Rob Mustard, said: “We’re moving to an 'advanced partnering' model, shifting from traditional contracting to a more collaborative approach. This model brings partners together through agreed outcomes, ensuring we deliver value for our customers and innovation in every project.”

He continued: “The DV4 model represents a significant evolution in how we approach capital investments. It's designed to drive innovation, efficiency, and sustainability, aligning with our long-term goals of environmental stewardship and community enhancement. We’re eager to partner with others to achieve these ambitions.”

Scottish Water added that the 2027-33 investment programme would support 4,000 jobs and create opportunities for 1,500 young people. “This initiative is not just about economic growth; it's about delivering real social value to our communities,” Mustard commented.

The procurement is being advertised as one contract notice in two parts; one for main partners and another network for SMEs and micro-specialists. The process has started already and is expected to be completed by March 2026.