Costain has secured a £45m deal to upgrade key assets at Severn Trent’s Rugby Newbold sewage treatment works, extending a long-running partnership between the pair.

The contractor will act as principal contractor and principal designer on the scheme, which runs to 2028, delivering new facilities and upgrading existing systems to boost operational resilience.

Work will also increase feed and storm capacity at the site, forming part of Severn Trent’s wider AMP8 investment push across its wastewater network.

Detailed design and enabling works will ramp up this year ahead of main construction phases through to 2028.

The latest award builds on a relationship stretching back to 2010, when Costain first secured a place on Severn Trent’s AMP5 framework.

The partnership has since rolled through AMP6 and AMP7 and is now confirmed through AMP8, taking the tie-up to at least 2030.

Alex Vaughan, chief executive officer at Costain, said: “This award is testament to our excellent track record of identifying construction efficiencies and delivering predictable, best-in-class solutions that maximise value for Severn Trent and its customers.”

The Rugby scheme forms part of a broader wave of AMP8 wastewater upgrades as water firms ramp up spending to meet tightening environmental and resilience targets.