Delivery Assurance Group (DAG) report: quarter 1 2022 to 2023

Section 4: Overall Project Progress Wastewater Portfolio

The Wastewater Portfolio comprises 3 sub portfolios: SR15 Completion, Wastewater Treatment and Wastewater Network. At Q1 performance in the Wastewater portfolio is within the target range (Figure 9). 147 points have been achieved to date within a target range of 133 – 211. The Gate 100 Acceptance milestone which continues to be challenging due to risks being realised.

Performance on the Start on Site milestone (Figure 10) remains strong with two of the sub-portfolios within the range (Figure 10) with the WW Treatment sub-portfolio exceeding the range with 11 starts on site. 23 projects have now started on site, 3 of these in Q1 2022-23. 2 Wastewater Network projects (Clarkston Road, Glasgow and Sauchie Road, Crieff) and 1 Wastewater Treatment project (Newmachar WwTW – Growth). Both of these projects achieved a Start on Site earlier than planned.

The Gate 100 milestone (Figure 11) has been impacted by risks being realised. 72 projects across all three sub-portfolios have been completed to date with 5 of these delivered this quarter. The delivery of a number of projects has been reforecast as outlined below.

In the SR15 Completion sub-portfolio the acceptance of 6 projects has been reforecast. 2 of these (Londornoch WTW Sludge Lagoon Upgrade and Dalmarnock WwTW Improvements) due to construction risks being realised and an additional 3 (S087 UID - Scotwood Overflow S043, Water of Leith Batch 10 and UID Cambuslang Road Richmond Laundry) due to 3rd party issues. 1 project (Newtonmore) start on site was delayed due to transfer from legacy delivery partner.

In the Wastewater Network Sub-portfolio, the delivery of 13 projects has been reforecast, 6 (Claredon Place Dunblane, Infra-Kingdom Park, Dunfermline Wellwood Wastewater Infrastructure and CAS Compliance Improvements - Networks East & North, Coalburn Road, Water of Leith Batch 4) due to 3rd party issues with land, power supply and road access. Construction risks have been realised for a further 4 projects and additional scope was identified for an additional 3 projects to allow the project to be delivered.

The delivery of 11 projects in the Wastewater Treatment programme has also been reforecast. 3 of these due to 3rd party issues around nesting birds and power (Canonbie WwTW - Upgrade Growth, Burrelton WwTW – Growth and Banchory WwTW - Growth). 7 are due to general construction risks. 1 project (Kirkconnel STW) required additional scope to allow the project to be completed. We continue to work to understand and learn from risks to improve the forecast and delivery of new projects. When committing to the delivery of a project we balance the likelihood of delay due to risks against setting an over cautious target with the potential to lose focus on the need to drive delivery.

Performance on the Gate 110 Financial Completion milestone (Figure 12) is on target with all three sub-portfolios being within the target range. 52 projects have now achieved Gate 110, 6 of these in Q1 2022/23. 12 projects have achieved this milestone earlier than planned with 13 projects forecasting to be delivered later than planned as outstanding commercial issues are yet to be resolved.