Water - Delivery Assurance Group (DAG) report: quarter 3 - 2022 to 2023

3. Indicator of Progress of Overall Delivery

The Indicator of Progress of Overall Delivery (IPOD) provides a high-level measurement of Scottish Water's progress in delivering the Committed List for projects over £1m^[1]. It assesses the progress of these investment projects monitored across 3 delivery gates^[2] combining this information to give an overall score.

When projects are added to the Committed List, each milestone is allocated 1 point. Each quarter, the number of points achieved by reaching gates is assessed against the baseline^[3] level for the previous quarter (lower limit) and the subsequent quarter (upper limit). These points are shown as absolute scores. Scottish Water is considered to be within the range where the number of points gained lies within the lower and upper limits.

At the end of December 2022, Scottish Water's IPOD position was slightly behind track at 484 points, against a range of 489 to 619 points (Figure 1) indicating that the overall programme is currently being delivered slightly outwith the target range, however, delivery of the programme is forecast to be back on track by Q4 2022/23. A significant focus is being placed on opportunities to accelerate milestone delivery in order to recover the programme. Projects where milestone achievement is considered to be at risk are put on "short interval control" to ensure increased management focus and rapid decision making. We also regularly review the programme to identify opportunities to advance projects. Either by an earlier than planned start of site or a review of the construction programme to accelerate delivery.

The green line in the figure above shows the aggregate of the forecast dates in the Committed List (the baseline). The solid blue bars show Scottish Water's actual position, and the light blue bars show the forecast position for future months. The green area above shows the + or – 3 months target range (i.e., the baseline from the previous and subsequent quarters respectively). Being above this shows that Scottish Water is more than 3 months ahead of the baseline and being below this shows that Scottish water is more than 3 months behind the baseline.

Figures 2, 3 and 4 below show the IPOD position at Quarter 3 2022/2023 by individual milestone

IPOD – SOS

19 projects started on site during Q3 with performance on the Start on Site milestone being in the top half of the range.

IPOD – Acceptance

23 projects achieved acceptance during Q3, bringing the total number of completed projects delivering benefit for customers to 195 which is outwith the forecast range of 230 - 260. 23 projects that have not yet had acceptance signed off are now substantially complete and are forecasting acceptance in Q4, with a further 10 forecasting acceptance by Q1 2023/24. Explanation of this movement can be found in Sections 4 & 5. Full details of the projects on the water and wastewater portfolios are now shared regularly with DWQR and SEPA.

IPOD – Financial Completion

22 projects achieved financial completion during Q3. 177 points were achieved to date with the target range being 170 –235.