Service-based treatment is changing the game
Traditional procurement methods like design-bid-build can drag out water infrastructure projects, delaying delivery of critical services and increasing risk. Today, more communities and developers are turning to integrated delivery models to streamline projects, reduce capital burdens, and improve long-term performance. Some companies are offering turnkey solutions that encompass design, construction, and operation, offering a more efficient path forward.
With the spurt in urban growth, the demand for water and wastewater services has never been higher. Aging water systems are creaking under the growing demand, and municipalities and developers are struggling to expand capacity.
These delays in essential public services threaten public health, environmental sustainability, and economic development. Traditional procurement models like design-bid-build (DBB) rely on multiple contractors and subcontractors for each stage of the project, often resulting in delays, cost overruns, and inefficiencies. To address these issues, municipalities and developers are turning to more integrated, service-based procurement models.
Challenges with Traditional Design-Bid-Build
Traditional DBB models present obstacles that can stall the process and bloat budgets. One of the biggest is having different contractors handling each stage of the project. For example, an architect or engineer will design and draw up plans for the plant. A request for proposals will call interested vendors to submit their bids. Public procurement regulations can make this a lengthy process. Once bidding is closed, the project is awarded to the lowest qualified bidder. Construction then commences, which is when problems can arise.
As the contractors have no direct communication with the designer, they may struggle to complete the project to the desired specifications, especially if finer details are not included in the drawings. This can lead to miscommunication, project delays, and costly changes. In addition to these surprises, rising construction costs can make it difficult for municipalities and developers to budget, especially when a project is completed over an extended period.
Emerging Alternatives: Integrated and Service-Based Models
More integrated and service-based procurement models are starting to get attention. The progressive design-build (PDB) approach offers a more collaborative method of delivery, where a single contract encompasses both the design and construction phases. With a PDB contract, the designer-builder is typically selected based on qualifications and experience in similar projects rather than on cost alone. Municipalities and developers can select a contractor with the knowledge and experience to complete the project on time, within budget, and to a high standard of workmanship and quality.
In the water sector, the water as a service model is a service-based approach based on the PDB framework that further streamlines delivery by packaging design, construction, and operations under one provider.
With water treatment as a service, one provider is responsible for all aspects of the project, from design and construction to operations. Not only does this eliminate the potential for miscommunication between contractors, but it also speeds up construction and approval timelines. By dealing with a single partner throughout the project, municipalities and developers experience better contractor accountability and lower risk.
Real-World Example
Seven Seas Water Group, a leading provider of Water-as-a-Service®, is known for managing the full lifecycle of decentralized water and wastewater treatment plants, from design and permitting to operation.
The city of Alice, Texas, is a case study of how communities can access affordable and sustainable water treatment services. Home to nearly 20,000 residents, Alice relied on water pumped from Lake Corpus Christi, located 20 miles away. Faced with dwindling freshwater supplies and rising water costs, the city looked for an alternative that would build resilience to drought while allowing them to become water-independent.
The city entered a Build-Own-Operate-Transfer (BOOT) contract to design, build, and operate a desalination plant to treat brackish water held in aquifers under the city. The city secured state funding for the initial phase of the project, which involved completing the source wells and pipelines. The design, construction, and operation of the desalination plant were undertaken by the private water treatment company, with no upfront capital investment required by the city. Instead, the city pays a monthly fee per 1,000 gallons of water treated for the duration of the 15-year contract, after which plant ownership transfers to the city.
As infrastructure needs to become more urgent, it’s clear that the old ways of delivering water and wastewater services are no longer enough. To meet growing demand and avoid the pitfalls of fragmented project delivery, municipal leaders, planners, and developers must embrace modern, integrated approaches that simplify construction, reduce risk, and accelerate timelines. Service-based models remove traditional barriers and ensure that communities can access safe, reliable water infrastructure more quickly and more affordably.
