The UK water sector continues to grapple with ageing infrastructure, underinvestment, persistent leakage and frequent storm overflow events, highlighted by sector‑wide reviews pointing to longstanding structural challenges.
This has accelerated calls for a regulatory "reset" with more transparent, competitive and outcomes‑driven delivery models. Within this environment, DPC has moved from an emerging concept to a central delivery mechanism and is shaping where and how contractors can win major work.
The regulatory shift powering DPC
Beginning with PR19, Ofwat introduced DPC as a competitive route for delivering large infrastructure, signalling that water companies should consider it for projects over £100m where it could deliver better value for customers.
PR24 strengthened this approach, making competitive delivery the default expectation for major new infrastructure and requiring DPC for projects with whole‑life Totex over £200m.
AMP8 (2025–2030) is the first full cycle where DPC will be widely applied, and Ofwat has already proposed licence modifications to support upcoming DPC procurements.
Early signals for AMP9 (2030–2035) show the sector reviewing pipelines and planning future DPC‑suitable schemes, indicating a growing long‑term competitive pipeline.
For contractors, the implication is clear: the next decade is likely to see more major projects tendered openly, creating greater access to high‑value water infrastructure opportunities.
Why it matters
Under DPC, water companies competitively tender the design, build, financing and operation of major assets, selecting a Competitively Appointed Provider (CAP) to deliver and run the infrastructure — a shift away from traditional frameworks and alliance models toward open competition.
This is creating opportunities for:
- major UK civil engineering contractors
- global construction entrants
- investors and long‑term operators
- infrastructure funds
- digital and technology providers
DPC enables contractors to participate in consortium leadership roles, shaping whole‑life delivery approaches and driving innovation.
What to expect
Ofwat’s four‑stage DPC approval framework — strategic case, procurement strategy, consent to procure and consent to contract — provides clearer governance and predictable procurement structures.
This means:
- greater competition driving efficiency and value
- increased innovation and new market entrants
- access to private financing and delivery expertise
- clearer regulatory structure reducing uncertainty
It also means:
- more complex procurement requirements
- higher bid costs and longer procurement timelines
- risk of delays due to limited sector experience
Contractors who combine robust commercial discipline with strong consortium‑building capability, digital fluency and integrated design–build–operate expertise will be well placed to compete under DPC.
What’s already moving
Examples of DPC in action include:
- Haweswater Aqueduct Resilience Programme (HARP) — one of the first major DPC procurements (circa £3bn) progressing through the model
- Cwm Taf Water Supply Strategy — circa £600m Welsh Water scheme delivered through DPC
These reflect the scale, complexity and commercial potential of DPC projects and highlight the opportunities expected through AMP8 and AMP9.
What’s next for contractors
DPC is maturing, expanding and set to dominate the procurement of major water infrastructure through the 2020s and 2030s.
For contractors, this means:
- more large schemes accessible via open competition
- strong opportunities to partner with investors and operators
- the ability to differentiate through whole‑life value, innovation and digital capability
- a predictable long‑term delivery pipeline supporting strategic planning
2026 presents a pivotal opportunity to engage with DPC. Contractors who prepare now — building partnerships, developing CAP‑ready delivery models and investing in whole‑life capability — will be strongly positioned to win the next wave of major water infrastructure projects.
To explore how DPC could shape your upcoming infrastructure opportunities, please contact Sara Milne or Stuart Murray at Brodies.
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