Other modes offer faster implementation, smoother integration, improved cost control
When it comes to building water and wastewater treatment plants, most municipalities still follow the traditional design-bid-build (DBB) model. It’s a method that’s been around for decades: Design the facility, put it out for public bid, select the lowest qualified bidder, and then hope everything goes according to plan.
Unfortunately, it rarely does. The DBB process, while transparent and competitive, can have negative effects on construction projects, with issues such as disjointed contractor relationships, costly change orders, delayed timelines, and projects that go far over budget. Add to that the time and capital it takes to get through the procurement cycle, which often takes place via public bid exchanges or state-specific procurement portals, and it’s clear why many municipalities and developers are looking at alternative options.
Understanding the Design-Bid-Build Process
At first glance, DBB seems relatively straightforward:
- Planning and design are completed first, usually by an engineering firm.
- Bidding is opened through a public RFP, inviting contractors to submit bids.
- Selection and contracting come next, with the project awarded to the lowest responsive bidder.
- Construction begins, often revealing gaps between what was designed and what’s possible in the field.
- Handoff follows, leaving the owner responsible for ongoing operation and maintenance.
This method can have drawbacks. Contractors may lower their bids to be competitive and then use low-cost subcontractors or inferior materials, compromising the quality of workmanship. This process also introduces major risks for fast-growing communities and budget-constrained municipalities. Because the design and construction occur separately with no collaboration between the architects or engineers who design the project and the contractors responsible for its construction, drawings must be meticulously detailed. This allows contractors to bid accurately and complete the project to the required specifications.
Each handoff between design, construction, and operations creates opportunities for miscommunication and costly surprises. Scalability, the ability to adapt the system to future demand, becomes much harder when contractors are focused on delivering the original spec rather than factoring in flexibility.
The Shift Toward Outcome-Based Procurement
There’s growing interest in alternative delivery models, such as design-build, progressive design-build, and public-private partnerships that offer benefits such as faster implementation, smoother integration, and improved cost control.
These models offer a novel approach. Instead of purchasing a system in its entirety, you partner with a service provider who delivers a complete, integrated solution, removing altogether the need for capital-intensive procurement.
Companies like Seven Seas Water Group are helping lead this shift by offering water treatment and wastewater treatment as a service. Instead of municipalities having to fund, build, and operate their own water infrastructure, they can contract with a private partner who handles it all from design to ongoing operation under a performance-based agreement.
Why This Service Model Changes the Game
The service-based approach offers significant advantages.
- One partner from start to finish: Municipalities and developers need not manage multiple contracts across the design, build, and operational phases. A single team is responsible for delivering and maintaining performance, ensuring a smooth process.
- Fixed monthly rate: Municipalities and developers no longer deal with unexpected capital expenses or costly change orders. Instead, they pay a predictable monthly fee, making budgeting far simpler and eliminating the need for large upfront capital outlays or bond financing.
- Faster project delivery: Without the lengthy public bid process, systems can be designed, built, and in operation much more quickly. This offers a significant advantage for growing communities that urgently need water and sanitation services.
- Built-in compliance and innovation: Service providers are responsible for ensuring that the system meets all regulatory requirements and evolves with changing technology, reducing the burden on cities and developers for compliance with regulatory standards.
A More Sustainable Future for Procurement
Municipalities and developers don’t have to shoulder all the risk anymore. By contracting with a professional water treatment company based on outcomes instead of owning and managing every aspect of the infrastructure, municipalities and developers shift much of the responsibility and risk associated with financing, designing, building, and operating a water treatment plant onto the private partner. They pay only for the treated water supplied under the terms of the contract.
By moving toward performance-based contracts and outcome-focused service models, communities can shift resources away from complex procurement hurdles toward a procurement model that delivers real, lasting benefits for the people they serve. These innovative procurement models don’t just save time and money; they help build resilience, ensure compliance, and provide communities with sustainable access to water for many years to come.
