Delivery Assurance Group (DAG) report: quarter 1 2022 to 2023
Report summarising what has been achieved for customers against Scottish Water's Delivery Plan for the 2021 to 2027 period during the first quarter of 2022 to 2023.
Section 1: Overview
Year 2 Tier 2 Investment to the end of Q1 2022-23 was £147m made up of planned repair and refurbishment (£101m), enhancement (including flooding) (£32m) and growth (£14m). It includes £15m invested on the delivery of projects that were planned to be completed in the previous period.
This level of Tier 2 investment was £5m below the central of forecast (£152m) and we are forecasting that we should hit our Delivery plan forecast of £645m within the forecast range of £620m to £690m at year end. Investment in responsive repair and refurbishment of assets and RCC (Tier 1a) for Q1 2022-23 was £36m.
Our key performance indicator (IPOD) remains within the target range.
We continue to monitor the 3 broad categories of risks that may impact our forecasts.
- Third Party risk: Potential delays due to third-party issues.
- Construction risk: Unforeseen delays from allowable events or poor performance on site.
- Construction market conditions.
The key risk continues to be construction market conditions as noted below.
Construction market conditions: These continue to change and evolve rapidly - cost pressures and availability of materials, labour, and commodities are challenging, the key areas of note are:
- Price and availability of materials and commodities: - Our procurement teams monitor all of our frameworks fortnightly to assess and mitigate the impact.
- Planning: - Our delivery teams continue to consider resequencing project design, planning and procurement following extension in lead times for some projects.
- Resourcing and Skills: - Our partners are seeing higher than normal staff turnover levels and shortages.
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