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Presuming the policy gods allow a French utility company to develop the UK鈥檚 first new nuclear plant for 30 years, the question remains of who will build it. Alan Cumming, the procurement director of EDF Nuclear New Build, doesn鈥檛 think that UK contractors are up to the job yet. 鈥淭he reports are right, there is a shortfall both in capacity and capability,鈥� he says. 鈥淲e鈥檙e embarking on a journey but we鈥檝e not packed our rucksack yet.鈥�

Don鈥檛 panic. Fortunately, he is keen to stress that this isn鈥檛 going to stop him from picking UK contractors for the project, but it does mean they will have to undergo a huge education and training programme. But what鈥檚 the incentive? EDF is planning to build four reactors, starting with two at Hinkley Point in Somerset, which will open from 2017 and cost up to 拢10bn to construct. And Cumming is raring to get going. But in the wake of the Fukushima disaster in Japan, while the UK has not followed Germany, China and Italy in cancelling its nuclear plans, progress has certainly slowed.

As the government鈥檚 nuclear plans face delays, EDF is looking at whether it can still hit its timeline, which relies on concrete in the ground by summer 2013. In addition, EC Harris estimates regulatory changes may add up to 15% to the cost of nuclear power stations across the world.

So given these uncertainties, and the investment needed by UK contractors to get fit for new nuclear work, is impressing Cumming worth the effort?

Because we鈥檙e worth it

Unsurprisingly, Cumming thinks contractors should bother. First of all, EDF remains committed to building the plants in the UK, and there is nothing in either the interim report by the nuclear inspector following Fukushima, or in statements by the energy secretary Chris Huhne, to suggest UK policy will move against it. But Cumming admits the various delays may affect the 2017 target, while stressing that he thinks the government has done everything right in its response: 鈥淭hat鈥檚 part of the risk assessments we鈥檙e looking at. These plants are going to be here for 60 years, and we鈥檙e looking at those risks and doing what we need to do.鈥�

A no-nonsense Scot, Cumming is a chartered civil engineer and spent time in the UK oil and gas industry managing huge North Sea construction programmes. Contractors regard him as straight dealing and he鈥檚 desperate to get across the message that it鈥檚 not too late for the supply chain to register its interest and get work. 鈥淚t鈥檚 going to be the first English-speaking supply chain developed for the EPR [power station design], so the businesses that do get involved have the potential to ride this wave for the next 50 years.鈥�

He says EDF has already let 拢80m of work to UK firms. A consortium of Kier and Bam is known to be preferred bidder on the 拢100m preliminary earthworks project (though Cumming won鈥檛 confirm this) with the contract awaiting planning approval for preliminary works before it can be signed. Three consortiums are shortlisted for the 拢1bn main civils job, thought to be Balfour Beatty with Vinci; Costain with Sir Robert McAlpine and Hochtief; and Laing O鈥橰ourke with Bouygues, and it is here that he says big opportunities remain, as the main contractors are still to organise their supply chains.

A preferred bidder will be selected early next year, he says, with a contract awaiting planning approval of the whole development from the Infrastructure Planning Commission - meaning it cannot happen until late 2012 at the very earliest. Cumming rejects any notion that the consortiums with French names in them will have any advantage - EDF will have targets for letting contracts to both local (Somerset) and UK firms.

However, the government-commissioned Weightman report, the GVA assessment of the reactors鈥� designs and the publication of the energy market review all have to be cleared before work can start. In order to keep to schedule, therefore, a huge amount of work is being done with the whole supply chain to make sure EDF can hit the ground running the moment planning approval is given. 鈥淚t鈥檚 quite frustrating, but we鈥檙e revving to go basically,鈥� Cumming says.

Filling the skills gap

So how can the UK fill the competence gap Cumming has identified? 鈥淔or us the UK supply chain, through no fault of its own, is in a position where it鈥檚 not been exposed to this kind of project of this complexity for 15-20 years,鈥� he says. So he sees it as part of EDF鈥檚 job to foster 鈥渞elentless predictability鈥� in its suppliers, in particular through active engagement and partnering agreements with the whole supply chain. 鈥淓DF will be actively involved with the supply chain and our key contractors, ensuring they鈥檝e got the right levels of supervising and training,鈥� he says. This will extend to letting small contracts for training in advance of the main civils work.

EDF will use early contractor involvement and NEC partnering contracts to ensure contractors are rewarded for investing and good performance: 鈥淭here鈥檚 no point grinding contractors into the dirt, that鈥檒l get us absolutely nowhere.鈥� And industry estimates that the top tier has already spent in the region of 拢10m bidding for the main contracts doesn鈥檛 mean some contractors will lose out. Ultimately, he says, there will be more than enough work to go around, with 70% of the construction work being straightforward, high-spec building.

But there is a quid pro quo: to ensure the quality the nuclear regulators require, EDF wants control. 鈥淲e will be approving the supply chains of all our main civils contractors. We want to see line of sight from top to bottom, because not only do we see it as a commercial risk if someone down the line is incapable, but we鈥檙e also going to make sure that they鈥檙e dealing properly with payments, right down the supply chain.鈥�

So while the UK supply chain might not be fit to forge the country鈥檚 nuclear future right now, Cumming thinks that with EDF鈥檚 help they will get there. In the current market contractors are inclined to believe it鈥檚 worth the investment.