Utility Solutions

Case Studies

Wharfside Regeneration

Our partnership with developers Wharfside Regeneration reduced utility delivery costs for an Ipswich redevelopment by over 50%.

Original cost: £640k
Noveus delivered cost: £305k
Client saving: £335k
Asset Value Realised: £155k

Challenge

In 2004, Wharfside Regeneration obtained consent to turn the Cranfield Mills site in Ipswich into a large, mixed-use redevelopment made up of residential, a regional dance studio, retail and other premises. The privately-funded project consisted of three phases and multiple tenanted demises and also involved strict procurement protocols requiring the developer to demonstrate value while delivering utilities aligned to each phase, tenant and demise. Complicating matters was a 2km contestable cable route to site, which passed along Ipswich’s busiest road, crossing a heritage sensitive area and arterial utility services on the way. The utility operators required £640k upfront, giving Wharfside no fee transparency or cost or delivery certainties.

Solution

We agreed a detailed programme that met the requirements of each phase and demise, while also liaising with the Distribution Network Operators (DNOs) to define the risks involved in the cable route. We also invited bidding from Independent Distribution Network Operators (IDNOs) for the power and gas networks to realise optimal asset value, and did the same for the contestable works.

Adding value

We achieved the client goals by co-ordinating the utility services and securing the cable route early to lock in costs and timely delivery. Moreover, competitive bidding for the network ownership achieved a 28% contribution to the power and gas infrastructure costs - a massive return for the client. The contestable competition also optimised value for Wharfside, helping obtain further savings of 26%.

“The multiple contractors and risks involved in the project demanded a tightly managed solution. That’s where Noveus came in. By working with all parties and introducing competition, they reduced the risk and financial burden and secured us a 28% asset value payback.”

Brian Tanner, CEO, Wharfside Regeneration

“The Mills programme was rife with risks due to the number of phases and contractors and sensitivity of the cable route. Our solution met Wharfside’s timelines, mitigating and managing risk and delivering important cost-savings.”

Tony Dodds, Noveus Limited

www.wharfsideregeneration.co.uk
Architects: www.lbyarchitects.com