Scottish Water - Delivery Assurance Group: performance progress report - quarter four 2022-2023

5. Overall Project Progress Wastewater Portfolio

The Wastewater Portfolio comprises 3 sub portfolios: SR15 Completion; Wastewater Treatment; and Wastewater Network. Detail on progress can be found in Appendix B. At Q4 performance in the Wastewater portfolio is back on track against the forecast range (Figure 9). 252 points have been achieved to date compared with a target range of 243 to 287. The overall performance has been impacted by commercial arrangements we have in place with one of our Alliances, however, this position has been substantially recovered in Q4.

Start On Site

Performance on the Start On Site milestone (Figure 10) remains strong. 47 projects have now started on site, 11 of these in Q4, above the range of 33 to 46.

Acceptance

17 projects achieved acceptance in Q4, delivering benefit to customers and bringing the total to 108 projects that have achieved acceptance against a forecast range of 117 to 124 at the time of commitment.

In the SR15 Completion sub-programme, the acceptance of 4 projects have been reforecast. 3 of these are now substantially complete and forecasting acceptance in Q1.

Reasons for reforecasting:

• 4 projects have been impacted by third party delays: UID Westbank Quadrant at Eldon Street Bridge CSO, Wellgate Larnark, Main St Newtonmore and UID Cambuslang Road Richmond Laundry.

In the Wastewater Network sub-programme, the acceptance of 6 projects have been reforecast. 2 of these projects are now substantially complete and forecasting acceptance in Q1 with a further 1 forecasting acceptance in Q2.

Reasons for reforecasting:

• 5 projects have been impacted by third party issues including land, power supply and road access: Forres Strategic Wastewater upgrade, Infra-Kingdom Park, Dunfermline Wellwood Wastewater Infrastructure, and Coalburn Road.
• Construction risks have been realised for 1 project: Shieldhall WWTW Grade 5 HC Sewer Ph1.

The acceptance of 7 projects in the Wastewater Treatment programme have also been reforecast. 4 of these projects are now substantially complete and forecasting acceptance in Q1 with a further 2 forecasting acceptance in Q2.

Reasons for reforecasting:

• 4 of these due to third party issues: IR18 CAS Compliance Improvements - Networks East & North Complex, Burrelton WwTW – Growth, Forres WWTW and Banchory WwTW – Growth.
• 2 are due to general construction risks being realised: Dalderse WWTW and Carstairs Village WWTW.
• 1 is due to additional scope being required to complete the project: Stewarton WWTW.

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.

Financial Completion

Performance on the Gate 110 Financial Completion milestone (Figure 12) is at the bottom of the target range. 97 projects have now achieved Gate 110, 30 of these in Q4 2022/23, against a range of 93 to 117. The performance on concluding Gate 110 Financial Completion has been impacted by commercial arrangements we have in place with one of our Alliances, however, this position has been substantially recovered in Q4.