Delivery Assurance Group report: quarter 4 2021 to 2022

Section 4: Overall Project Progress Wastewater Portfolio

The Wastewater Portfolio comprises 3 sub portfolios: SR15 Completion, Wastewater Treatment and Wastewater Network.

Year to date performance in the Wastewater portfolio is within the target range (Figure 9). We have seen a significant improvement in milestone attainment at year end driven by the Start on Site and Gate 110 financial completion milestones being delivered earlier than planned on some projects. We have experienced challenges in achieving the Gate 100 acceptance milestone as project risks are realised and this milestone is out with the target range.

Performance on the Start on Site milestone (figure 10) remains strong with two of the sub-portfolios achieving a Start on Site performance within the target range (Figure 10) with the SR15 sub-portfolio achieving all 10 planned starts on site within the year.

20 projects have now started on site, 7 of these in Q4 2021-22. 2 SR15 Completion projects (Main Street Newtonmore and Milnby Weir Eel Pass), 1 Wastewater Network project (Kirkconnel Pipe Bridge) and 4 Wastewater Treatment projects (Lochwinnoch WwTW - Inlet Screw Pumps Refurbishment, East Linton WwTW – Growth, Oldmeldrum STW - Surface Aerator Replacement & Temp SAF Install and Newton Septic Tank). The delivery of East Linton growth had previously been reforecast due to protracted commercial discussion to confirm the target cost on the project. Both Newton Septic Tank and Kirkconnel Pipe Bridge have achieved this milestone earlier than planned.

The Gate 100 milestone (figure 11) has experienced challenges as delivery risks have been realised across all three sub-portfolios and is now out with the target range. 17 projects across all three sub-portfolios have been completed this quarter. However, the delivery of a number of projects had to be reforecast.

In the SR15 Completion sub-portfolio the delivery of 4 projects has been reforecast. 2 of these (Londornoch WTW Sludge Lagoon Upgrade and Savalbeg WTW Sludge Lagoon Upgrade) due to construction risks being realised and an additional 2 (S087 UID Scotwood Overflow and S043 UID Cambuslang Road Richmond Laundry) due to 3rd party issues associated with the provision of wayleave agreements to supply permanent power.

In the Wastewater Network Sub-portfolio, the delivery of 10 projects has been reforecast, 4 (Claredon Place Dunblane, Infra-Kingdom Park, Dunfermline Wellwood Wastewater Infrastructure and CAS Compliance Improvements - Networks East & North) due to 3rd party issues with land and road access. Construction risks have been realised for a further 5 projects and additional scope was identified for an additional project (Shieldhall WWTW Grade 5 HC Sewer Ph1) to allow the project to be delivered.

The delivery of 11 projects in the Wastewater Treatment programme has also been reforecast. 4 of these due to 3rd part issues around nesting birds and power (Canonbie WwTW - Upgrade Growth, Burrelton WwTW – Growth, Banchory WwTW - Growth and Ellon WwTW – Growth). 6 are due to general construction risks. 1 project (Kirkconnel STW) required additional scope to allow the project to be completed. We continue to work with the delivery teams to understand the challenges encountered and to allow this learning to be incorporated into new projects as they are developed.

Performance on the Gate 110 Financial Completion milestone (figure 12) remains strong with all three sub-portfolios being within the target range. 46 projects have now achieved Gate 110, 23 of these in Q4 2021-22. 21 projects have achieved this milestone earlier than planned with 1 Wastewater Network project (Southpark Avenue Barrhead - Repair Sewer) and 1 Wastewater Treatment project (Ardoch STW) forecasting to be delivered later than planned as outstanding commercial issues are yet to be resolved.