Costain has won a £45m contract to upgrade key assets at Severn Trent’s Rugby Newbold sewage treatment works, extending a long-standing partnership between the two organisations.
The contractor will act as principal contractor and principal designer on the scheme, which is scheduled to run through to 2028. The programme will deliver new facilities and upgrade existing systems to enhance operational resilience at the site.
The works will also increase feed and storm capacity, forming part of Severn Trent’s broader AMP8 investment programme across its wastewater network.
Detailed design and enabling works are set to accelerate this year, with main construction phases continuing through to 2028.
The latest contract builds on a relationship dating back to 2010, when Costain first secured a position on Severn Trent’s AMP5 framework. The partnership has since continued through AMP6 and AMP7 and is now confirmed into AMP8, extending collaboration between the two 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 project forms part of a wider wave of AMP8 wastewater upgrades, as water companies increase investment to meet tightening environmental standards and improve network resilience.



