CONTENT EXPIRES: December 31, 2025

The East County Advanced Water Purification (AWP) Project is a groundbreaking potable reuse project to recycle up to 16 MGD of wastewater into a new source of local, safe, reliable, and drought-proof water for East County San Diego. The project consists of five progressive design-build (PDB) projects, of which three were completing 60% design phase and negotiating guaranteed maximum price (GMP) for Phase 2 construction during the unprecedented inflation and price increases of late 2021 to mid-2022. The unfortunate timing for the East County AWP Joint Powers Authority (JPA) resulted in staggering increases from the target cost proposals (TCPs) of $396M to guaranteed maximum prices (GMPs) of $596M – over 50% in less than 18 months! This presentation discusses the hurdles the JPA faced in design decisions between 30 and 60%, the difficulties in negotiating and achieving consensus on Phase 2 contracts with 2 Design-Builders (DBs) on 3 different projects, and the challenges in obtaining acceptance from the JPA management, Boardmembers, and public of the value of the project. Ultimately, the JPA and DBs successfully achieved agreement on converting the PDB into lump sum Phase 2 construction contracts, and the East County AWP had a groundbreaking ceremony in June 2022.