The United States loses an estimated 2.1 trillion gallons of water annually due to aging and deteriorating infrastructure, according to the Environmental Protection Agency. A study conducted by the Environmental Sustainability Research Centre at Brock University in Ontario estimates that approximately 1.6 trillion gallons of water are lost annually in Canada for the same reason. The challenges posed by population growth, climate, regulation uncertainties, inflation and the urgent need to modernize water systems have led to an unprecedented wave of investment in water infrastructure across North America. In 2021, the U.S. federal government allocated more than $50 billion to building water and wastewater projects, signaling the scale of the issue. The Investing in Canada Plan, launched in 2016, represents a $180 billion, 12-year initiative to improve infrastructure. The plan focuses on enhancing water quality, increasing access to safe drinking water, and improving efficiency of treatment facilities by 2030.
The surge in water infrastructure construction is due in large part to the emergence of megaprojects, costing $500 million to over $1 billion. Both public and private entities are opting for large-scale water and wastewater treatment plants capable of handling tens of millions, even hundreds of millions, of gallons of water per day.
"The unprecedented investment in water infrastructure megaprojects across North America underscores the critical need for specialized expertise and integrated team efforts,” says Richard Hewitt, vice president and district manager of PCL Construction’s Civil Infrastructure Division. “Successful execution of these projects hinges on having a general contractor with the right experience and skillset to manage the complexities involved."
Successfully executing water megaprojects requires the same four steps, according to PCL’s civil construction experts:
1. Scaling the Team and Project Appropriately
The success of a megaproject depends on assembling the right team from the get-go. A critical, yet often overlooked, aspect is the need to have a large enough team assigned to the project at the outset. Timely decision-making is also key to ensuring the project’s success. Ankur Talwar, district manager for PCL’s Civil Infrastructure Division has observed this firsthand.
“In the early stages of a project, we've had clients ask us about our biggest concern for their project,” Talwar says. “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 water reclamation megafacility, the client had already tripled the team from the original staff size at the onset of the project. They found that adding team members was necessary to complete the design phase and manage the remainder of the project. PCL’s support in guiding the client through the process significantly boosted their readiness.
“The team shared that it was a major revelation to realize the amount of work and labor required just to complete the design phase. We worked closely with them, helping them understand the process and build their team, which greatly increased the confidence of the integrated team as a whole,” says Talwar.
2. Choosing the Right Delivery Model
The chosen delivery model for a megaproject not only sets the tone for collaboration but ultimately defines the project's timeline, cost management and overall success. 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 distinct advantages: In a Progressive Design-Build, a single entity forms one team to deliver the project. Since the designer and contractor are working together, communication is streamlined, and project timelines can progress faster. Meanwhile, in the CM/GC and CMAR methods, the client works with a designer but incorporates feedback from the general contractor early in the design phase, enabling the owner to have greater control over design decisions while the general contractor can offer insights on construction risks and costs.
All three models emphasize collaboration and integrating the construction team into the design phase, reducing the need for costly redesigns later. All three also for the entire program to be tailored to the specific needs of the project by a team that understands the project scope and the unique characteristics of the community where the project is being built.
“This personalized approach is unique because the entire process is adapted 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 outcomes.”
Other delivery models, such as Cost-Plus, can also be effective depending on the project’s goals and circumstances. In a Cost-Plus model, the owner reimburses the contractor for project costs plus a set fee, ensuring full cost transparency and faster project initiation, as work can begin before the entire scope is finalized.
Regardless of the delivery model chosen, the key to a successful megaproject is 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, particularly for complex water infrastructure projects. Stakeholders should prioritize selecting a general contractor with a proven ability to identify, understand and mitigate risks. This expertise is developed through experience and a commitment to learning from past 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?’ We incorporate those lessons learned into our risk management program, which we start implementing as early as the pursuit phase, before we even dive into the 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 a third-party risk assessor can further align the integrated team and build stakeholders’ confidence in the project. Although not implemented in every project, this approach 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 should seek a general contractor with a background in various markets and project sizes, which is also an indication of a successful risk assessment and management program. A general contractor with a range of experience brings a more strategic and collaborative approach, drawing on lessons learned from diverse scenarios to act as a trusted advisor on the project.
4. Finding Innovate Approaches
Building a water infrastructure megaproject requires innovative approaches to meet the challenges of scale, budget and schedule. Creativity plays a key role in increasing efficiency and delivering a successful project.
One of the unique benefits of close collaboration 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 aid in water flow during treatment processes, reducing the need for energy-intensive pumps. By thoroughly analyzing the project site, teams can unlock hidden value and enhance operational efficiency.
Establishing mini job sites within the larger project site is another creative strategy to increase project efficiency. Megaproject sites can be geographically massive, with key scopes of work located significant distances from central job site trailers. Setting up multiple micro-offices strategically positioned across the site can reduce travel time for workers, streamline communication and improve overall productivity. A dynamic and well-planned job site layout not only saves time but also contributes to long-term cost savings.
Regardless of the chosen strategy, the ability to collaborate closely with an experienced general contractor and integrated design team to identify innovative solutions is key to ensuring project success.
The success of a water megaproject hinges on early collaboration, strong partnerships, effective risk management and innovative problem-solving. High-functioning teams with decades of experience and a culture of collaboration are essential. As 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.