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

Section 3: Overall Project Progress Water Portfolio

The Water Portfolio comprises 3 sub portfolios: SR15 Completion, Water Quality and Water Supply. Although the Gate 100 Acceptance milestone remains challenging improved performance on the Start on Site and Financial Completion Milestones means that the Q1 performance in the water portfolio is at the middle of the range (Figure 5). 193 points were achieved to date, 7 below the central forecast of 200.

Performance on the Start on Site milestone (Figure 6) remains strong with one of the sub-portfolios achieving a start on site performance in the top half of the range with the SR15 and Water Supply sub-portfolios achieving the central forecast. 46 projects have now started on site, 10 of these in Q1 2022-23.

Gate 100 achievement on two of the subprogrammes has been impacted by risks being realised. At Q1 2022-23 we have dropped below the range with 72 projects achieving acceptance against a forecast range of 80 –104.

Seven projects in the SR15 Completion programme have been reforecast; 4 of these are due to 3^rd party issues:- Yarrowfues WTW main-out , Back Tolsta (the scheme is service with customers benefiting but awaiting telecoms links to formalise acceptance), Ringford WTW and Ness WTW; 2 due to construction risks being realised (South Edinburgh Service Resilience due to faulty pipes and Uig WTW where additional scope was identified as necessary during construction); and 1 (Fair Isle) where the new asset is in service but not functioning adequately. 1 project IR18 Water Quality Improvement - Camps has been completed earlier than planned.

The acceptance of 13 projects in the Water Quality sub programme have been reforecast; 8 (Whitehillocks WTW, Pateshill WTW, Glenlatterach WTW, Ardrishaig WTW, Howden WTW, Tullich WOA - Oban North & South TWS Refurbishment, Whitehall DSR and Loch Ness Regional WTW Scheme, Tarbert WTW) due to risks being realised during construction. 2 (Bradan WTW and Daer CWT) due to additional scope being required to complete the projects. Whitehall and Loch Ness are both in service with customers getting the benefit. Kirkmichael WTW has been returned to the Plan stage to review alternative option as the operational solution identified has proven to be ineffective.

The Water Supply sub-portfolio remains on track with milestone achievement within the planned range.

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. After the DAGWG full details of the projects impacted on the water portfolio have been explored bi-laterally between SW and DWQR.

Performance on the Gate 110 Financial Completion milestone (Figure 8) remains strong with all three of the sub-portfolios being in the top half of the range (Figure 8). 75 projects have now achieved Gate 110, 23 projects have achieved this milestone earlier than planned with 3 Water Supply projects, 5 Water Quality projects and 4 SR15 Completion projects forecasting to be delivered later than planned.