Construction Management at Risk - Design-Build for Water and Wastewater Projects - page 309

Project: Special Planning Area 2, Phase 1 Water Reclamation Facility
Owner: City of Surprise, Arizona
Construction Manager at Risk (CMAR) Entity: PCL Construction;
Carollo Engineers (design engineer)
Completion Date: J a n u a r y 2 011
Description of Project
The City of Surprise, Ariz. (City), had a unique opportunity to turn a construc-
tion management at risk (CMAR) project into a procurement that is similar to DB
in an effort to rapidly bring wastewater treatment services to a growing portion of
the City. In Surprise, it is said that “development pays for itself.” The City takes on
the responsibility of procuring the design and construction of facilities financed by
developers and operates these facilities on behalf of the developers. In 2006, the City
collected funds from a consortium of developers to design and construct a 4.0-mgd
(15-ML/d) water reclamation facility (WRF) in their Special Planning Area 2
(SPA-2) using a CMAR approach. The CMAR approach was selected based on previ-
ous successful projects in Arizona using CMAR with a qualifications-based selection
of the contractor.
In 2008, design progressed to approximately 95 percent complete, while the
economic recession caused projected housing starts to decline, and with this less
need for additional wastewater treatment capacity. Many developers relinquished
their stake in the treatment facility, and the City temporarily stopped work on the
project and worked with developers to redefine expectations and needs for the WRF.
The next series of events changed the face of the project from the original
CMAR method of project delivery to a unique version of delivery that resembled
DB. After establishing revised expectations for the WRF, the City asked the designer
and the CMAR if a 2.0-mgd (7.6-ML/d) WRF could be built for $24 million within
30 months. The City also needed an answer within two weeks.
To develop an answer, the designer and CMAR had to work together like a
design-builder team. They were sequestered for two weeks to develop design con-
cepts and costs for the WRF. The design needed to meet not only the City's budget
and schedule requirements but also the reclaimed water quality requirements estab-
lished by the State of Arizona for recharge. The concepts and basis of design for the
original 4.0-mgd (15-ML/d) facility could not be utilized for the smaller facility. Re-
scaling of the original design would not allow the facility to be constructed within
the established budget of $24 million. A new design needed to be developed to pro-
vide a facility that met the treatment needs and budget of the City.
The designer and CMAR determined that they could deliver the project within
30 months for $24 million, but the contractual structure between the City and the
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