The number of water infrastructure megaprojects, ranging from $350 million to $1 billion, is growing in the US. Its success depends on teams with specialized skill sets and expertise in managing complexity.
According to the Environmental Protection Agency, the United States loses 2.1 trillion gallons of water annually to aging and deteriorating infrastructure. The challenges posed by population growth, climate, regulatory uncertainties, inflation and the urgent need to modernize water systems have led to an unprecedented wave of investment in water infrastructure in North America. In 2021, the US federal government allocated more than $50 billion to the construction of water and wastewater projects, indicating the scale of the problem.
The increase in water infrastructure construction is highlighted by the emergence of megaprojects, with costs ranging from $500 million to more than $1 billion. Both public and private entities are betting on large-scale water and wastewater treatment plants capable of handling tens of millions, even hundreds of millions, of gallons of water per day. While these projects carry significant risks, they also offer the potential for substantial profits if executed correctly. Having a general contractor with the necessary expertise and experience is crucial to delivering these mega water projects.
“The unprecedented investment in major water infrastructure projects in North America underscores the critical need for specialized expertise and integrated team efforts,” said Richard Hewitt, vice president and district director of the Civil Infrastructure Division. from PCL Construction. “The successful execution of these projects depends on having a general contractor with the right experience and skill set to handle the complexities involved.”
Successful execution of water megaprojects follows the same four steps, according to PCL’s civil engineering experts:
1. Scale the team and the project appropriately
The success of a mega-project depends on assembling the right team from the start. A critical, but often overlooked, aspect is the need to have a large enough team assigned to the project from the start. Timely decision-making is also key to ensuring project success. Ankur Talwar, District Manager, Civil Infrastructure Division, PCL, has seen this firsthand.
“In the early stages of a project, we’ve had clients ask us about our biggest concern for their project,” says Talwar. “We often tell them that it’s common to underestimate the resources needed on their side to manage such a large program.”
For example, by the end of the design phase of a recent mega water reclamation facility, the client had already tripled the team from the original staff size at the start of the project. They found that adding team members was necessary to complete the design phase and manage the rest of the project. PCL’s support to guide the client through the process significantly increased their readiness.
“The team shared that it was a huge eye-opener to realize the amount of work and manpower required just to complete the design phase. We worked closely with them, helping them understand the process and build the his team, which greatly increased the confidence of the integrated team as a whole,” says Talwar.
2. Choose the appropriate delivery model
The delivery model chosen for a megaproject not only sets the tone for the collaboration, but also affects the schedule, cost management, and overall success of the project. Three widely used models for megaprojects are Progressive Design-Build, Construction Manager/General Contractor (CM/GC) and its similar counterpart, Construction Manager at Risk (CMAR).
Each offers different advantages: in progressive design and construction, a single entity forms a team to deliver the project. Because the designer and contractor work together, communication is streamlined and project timelines can be faster. Meanwhile, in the CM/GC and CMAR methods, the client works with a designer but incorporates the general contractor’s feedback early in the design phase, allowing the owner greater control over design decisions while the general contractor can provide information on construction risks. and costs
All three models emphasize collaboration and integration of the construction team in the design phase, reducing the need for costly redesigns later. All three also so that the entire program is tailored to the specific needs of the project by a team that understands the scope of the project and the unique characteristics of the community where the project is being built.
“This customized approach is unique because the entire process is tailored to the needs of your project,” says Hewitt. “We’ve found a lot of success with this strategy, because we’re able to focus on what works best for the specific project, ensuring flexibility and better results.”
Other delivery models, such as Cost-Plus, may also be effective depending on project objectives and circumstances. In a Cost-Plus model, the owner reimburses the contractor for project costs plus a fixed fee, ensuring full cost transparency and faster project initiation, as work can begin before the entire scope is completed.
Regardless of the delivery model chosen, the key to a successful megaproject is the early involvement of the general contractor and a collaborative team to address constructability and cost issues during the design phase.
3. Proactive risk management
Continuous and effective risk identification and management are essential to the success of any construction project, especially for complex water infrastructure projects. Stakeholders should prioritize the selection of a general contractor with a demonstrated ability to identify, understand and mitigate risks. This expertise is developed through the experience and commitment to learn from previous projects.
Marc Chiasson, vice president of PCL’s Civil Infrastructure Division in Canada, explains, “Whenever we encounter a problem on a project, we take a step back and ask, ‘What went wrong and how can we ensure success next time? time?” We incorporate these lessons learned into our risk management program, which we start implementing from the research phase, even before we dive into design.”
A comprehensive risk assessment and management program indicates that a general contractor has thoroughly considered the project’s challenges and developed a strategy for success. Engaging an external risk assessor can further align the integrated team and increase project stakeholder confidence. While not implemented on every project, this approach can be beneficial as it ensures that all stakeholders within the larger integrated group are aligned and can develop a unique risk assessment and management program tailored to their project .
Clients may want to consider hiring a general contractor with experience in various markets and project sizes, which is also an indication of a successful risk assessment and management program. A general contractor with extensive experience brings a more strategic and collaborative approach, leveraging lessons learned from multiple scenarios to act as a trusted advisor on the project.
4. Find innovative approaches
Building a mega water infrastructure project requires innovative approaches to meet challenges of scale, budget and schedule. Creativity plays a key role in increasing efficiency and achieving a successful project.
One of the unique benefits of working closely with the general contractor and design team is to jointly identify opportunities to optimize the site’s natural features. For example, taking advantage of elevation changes allows gravity to assist water flow during treatment processes, reducing the need for energy-intensive pumps. By thoroughly analyzing the project site, teams can unlock hidden value and improve operational efficiency.
Setting up mini jobs within the larger project site is another creative strategy to increase project efficiency. Megaproject sites can be geographically massive, with key work areas located at significant distances from central job site trailers. Installing multiple micro-offices strategically placed throughout the site can reduce worker travel time, streamline communication, and improve overall productivity. A dynamic and well-planned workplace design not only saves time, but also contributes to long-term cost savings.
Regardless of the chosen strategy, working closely with an experienced general contractor and integrated design team to identify innovative opportunities is key to ensuring project success.
The success of a mega water project depends on early collaboration, strong partnerships, effective risk management and innovative problem solving. High-functioning teams with decades of experience and a collaborative culture are essential. Talwar explains, “Success lies in people: teams driven by a genuine passion for building strong relationships and projects that leave a lasting impact.”
Dedication to teamwork and adaptability is what drives the successful delivery of megaprojects in civil construction.
