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Halcrow helps Bournemouth & West Hampshire Water
make informed decisions about pipe repair using
@RISK from Palisade

Risk analysis technology enables water company to deliver value and
service to customers and meet OFWAT requirements

7 September 2010, London - Halcrow is using @RISK from Palisade to help Bournemouth & West Hampshire Water (BWHW) make informed decisions about pipe repair. Palisade’s risk analysis software, used in conjunction with Halcrow’s ‘cluster’ analysis tool, enables BWHW to identify areas of the water distribution network where targeted pipe replacement will result in the greatest benefits for customer service. This proactive and quantitative approach to risk analysis is crucial to meeting the stringent requirements set out by the water services regulation authority, OFWAT1 to provide good quality service at a fair price for consumers. 

BWHW commissioned Halcrow, a leading provider of planning, design and management services for infrastructure development worldwide, to develop a risk-based model to consider and improve the capital efficiency of its water distribution pipe network replacement programme. The @RISK model combines the probability of pipe failures across the region with the consequential benefits of pipes not failing in the future.  As a result, BWHW is able to make more informed decisions about targeting investment and is able to replace pipes that, should they burst, would have the most significant impact on the level of service it offers its customers as well as the direct costs incurred by the organisation.

BWHW provides about 150 million litres of clean drinking water every day to around half a million people. Tony Read, operations manager at BWHW explained:  “Given the size of the infrastructure that we manage, the variety and age of the materials it comprises and the budgets available, we prioritise our pipe replacement programme to ensure maximum efficiency. Therefore, it is essential that we can be confident that we are achieving the best possible return on investment.  Through deploying @RISK and using its own expertise, Halcrow has enabled us to meet the regulator’s requirements to use risk based planning. As a result, we have ensured that we can maintain our good record for providing good value and service to customers.”

To measure the likelihood of pipe failure, Halcrow developed an innovative software tool to identify ‘clusters’ of pipe failure which used a variety of inputs. These cover everything from the age of BWHW’s existing infrastructure, the materials used to construct the pipes and their size, to the type of ground in which pipes are buried, and weather patterns that might affect them such as temperature and rainfall. The model inputs for the consequences of pipe failure include impacts on customer service through lack of water or loss of pressure, as well as the location of amenities such as hospitals and other key users, which make a region a high priority for pipe replacement work. The likelihood of pipe failure and the consequences were combined in an @RISK model to prioritise the areas where risk reduction could be achieved most efficiently.

Alec Yeowell, asset management engineer at Halcrow, concluded: “Organisations such as BWHW are under public and regulatory pressure to demonstrate that they are operating efficiently and effectively. Having used @RISK for a variety of projects that require a versatile and robust risk analysis tool, it was an easy decision for Halcrow to use the software, added to our ‘cluster tool’, to meet BWHW's needs. Adding our cluster tool to @RISK has combined its powerful capability with the added benefit of being easy and intuitive to use which ensures that complex analyses can be communicated in a transparent and meaningful way. As a result, BWHW meets the risk-focused requirements of the regulator and ensures that it delivers value to customers.”

Note 1
Every five years, OFWAT sets caps on the prices that water companies can charge their customers and BWHW is required to present a business case outlining the investments that it needs to make in its water pipe network to maintain an appropriate and sustainable level of service. The principles for setting out these investments are contained in the Common Framework for Capital Maintenance Planning (CFCMP), which has defined the need to demonstrate the link between capital asset maintenance and the probability of asset failure, and the resulting consequences to customers, the environment and water service providers.

About Palisade:
Palisade Corporation is a software developer that produces decision support tools for professionals in many lines of work. The company was founded in 1984, and at present more than 100,000 people use Palisade’s software in fields that range from finance to oil and mineral exploration, real estate to heavy manufacturing, and pharmaceuticals to aerospace. Its software is used by many Fortune 500 companies, including Shell Oil, Procter & Gamble, ExxonMobil, Unilever, and by prominent economic and financial consultants.

For more information about Palisade, please visit www.palisade.com

About Halcrow
Halcrow is an award-winning consultancy that specialises in the provision of planning, design and management services for infrastructure development worldwide. As one of the largest multi-disciplinary consultancies, Halcrow combines global thinking with local knowledge across transport, water, maritime, property and power commissions in over 90 countries.
Halcrow has won widespread recognition for living its purpose of sustaining and improving the quality of people’s lives and the communities it works in benefit from this focus on good corporate citizenship.

As a people-led company, Halcrow connects the right people – in the right place – no matter what stage of the project cycle. Striving to achieve excellence in all it does, it encourages collaborative working, strong team integration and a commitment to health and safety across all areas of the business.

For more information about Halcrow, please visit www.halcrow.com or contact:

Garry A Whitaker, DipM MCIM Chartered Marketer
Communications manager
Halcrow Group Limited
+44 (0)1793 816253 / +44 (0)1793 812479 (Halcrow reception)
+44 (0)7803 123202
whitakerga@halcrow.com

About Bournemouth & West Hampshire Water
Bournemouth & West Hampshire Water (BWHW) provides clean drinking water to around half a million people in an area in the south-west of the UK spanning over 1000 square kilometres.  This amounts to an average of about 150 million litres of drinking water every day, through nearly 3000 kilometres of water mains. 

For more information about Bournemouth & West Hampshire Water, please visit www.bwhwater.co.uk

For press information, please contact:
Kate Alexander / Julie Aguilar
Vanilla Public Relations Ltd
+44 (0)7788 584413/+44 (0)7794 822761
kate@vanillapr.co.uk / julie@vanillapr.co.uk



For more information, contact:

Randy Heffernan
Tel: 607-277-8000
Fax: 607-277-8001
rheffernan@palisade.com

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