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BUSINESS NEWS AECOM SECURES POSITIONS ON AMP8 UK WATER INFRASTRUCTURE FRAMEWORKS EXCEEDING TWICE THE VALUE OF PRIOR AMP7 FRAMEWORKS AECOM, the trusted global infrastructure leader, announced it has achieved record success on major Water sector wins associated with the UK’s new Asset Management Period 8. In total, the Company has sustained a 100 percent- win rate on recompete contracts whose expected framework value is more than double the value of the respective frameworks under the prior AMP7 period. In addition, the Company has been awarded several new positions on additional AMP8 frameworks that are expected to further contribute to growth across its U.K. Water business. “Our industry-leading expertise has established AECOM as the world’s number one Water design firm, and our recent track record of success on AMP8 frameworks positions us well as we progress against our goal of more than doubling our Water practice over the next five years,” said Beverley Stinson, chief executive of AECOM’s global Water business. “We look forward to partnering with the UK’s water utilities to meet their
ambitious infrastructure objectives, applying our global, enterprise capabilities to deliver safe, reliable and sustainable water to millions of Britons.” Administered by Ofwat, the U.K.’s water services regulation authority, the AMP8 regulatory framework runs from 2025 to 2030 and will include approximately £104 billion, which is 77 percent greater than the prior AMP7 program period. The program will primarily cover reliability, sustainability and digitalization improvements for water infrastructure in England and Wales. Recent wins include appointments to major professional service frameworks for Thames Water and Southern Water, and an additional appointment to support Southern Water’s $4.8 billion capital delivery program. This success is underpinned by the trusted technical expertise of the Company’s professionals, who have repeatedly scored maximum marks for quality in tender submissions, and the Company leadership’s direct involvement in the bidding process. “For decades, AECOM has served as a trusted advisor and delivery partner for
the UK’s major water utilities, allowing our experts to support generations of critical water infrastructure upgrades across the nation,” said Colin Wood, chief executive of AECOM’s Europe and India region. “We’re proud to continue this legacy and strengthen relationships with our Water clients as we realize Ofwat’s guidance for world-class water infrastructure that meets the needs of customers for years to come.” Ranked as the No. 1 Water design firm by Engineering News-Record, AECOM ensures that its water clients have access to globally sustainable technologies, locally delivered. The Company’s professionals work in and across the major markets to deliver comprehensive solutions that safeguard human health and the environment, from flood protection and water treatment to nutrient control to desalination. Learn more about the Company’s Water capabilities here. AECOM is a trusted professional services firm powered by deep technical abilities, we solve our clients’ complex challenges in water, environment, energy, transportation and buildings.
value usually requires forgoing personal extractions to reinvest in the firm. The long-term result of having a growing firm may be more valuable than the sum of excess extractions from a smaller firm over the same time period. ■ Book value is the best way to value stock internally. It’s one way and it’s easy. But the best way? Not hardly. One problem with book value is that it rarely reflects the real value of the business. That means management is not necessarily going to be doing what is best for the business in the long-term. It also encourages management to strip all profits from the firm because why leave a dollar in there now to get paid a dollar 20 years from now when you retire or leave? Makes no sense. ■ Internal transition is always better for your people than an external sale. No it isn’t. The reason is the buying firm could be better managed and have more resources and opportunities for its employees than the selling firm has. Working for an undercapitalized, no-growth or slow- growth company with little to no ownership opportunities is not necessarily the best way to maximize one’s career. I could probably come up with 10 or 20 more of these, but am out of real estate here and have to get on my lengthy “do” list for the day! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
MARK ZWEIG, from page 5
rate is $500 an hour no one can tell me hourly work isn’t profitable. ■ Every project has to be profitable for the firm to be profitable. Again, wrong. Not true. There are times you have to do favors for clients out of a desire to provide real service to them. Not every project will be profitable. View it as a marketing cost. Don’t do too many of them and everything will be OK! ■ Management’s goal should be to minimize overhead. Not necessarily the case. There is good overhead and bad overhead. Good overhead gives you a competitive advantage. It could be better IT, or better marketing, or better employee benefits that give you a lower staff turnover rate. Bad overhead is the boss who spends a half million dollars annually at his favorite bar and charges it all to the company. I will never forget when I was at a birthday dinner for a friend, sitting next to the late Jerry Sincoff who was chairman of HOK at the time, when Jerry told me that the two most profitable revenue-generating units of their firm – sports and healthcare – had the highest overhead of any of their other line units. What does that tell you? ■ An AEC business is only worth what you can extract from it annually. Not true. That is what the old accountants used to tell their clients. These companies – if designed properly – are becoming increasingly valuable. Maximizing
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THE ZWEIG LETTER FEBRUARY 3, 2025, ISSUE 1571
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