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AWWA ACE56226

M00001325

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AWWA ACE56226 Innovation and Risk Allocation: Seattle's Approach to DBO Contracting

Conference Proceeding by American Water Works Association, 06/16/2002

Kelly, Elizabeth S.

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The City of Seattle has utilized the design-build-operate contracting approach fordevelopment of two major treatment facilities. As an alternative to the conventional publicworks procurement process, Seattle has sought to create situations where integrated teamsof designers, constructors, and operators would innovate in order to provide the most reliableand cost effective proposal for development of the projects, while maintaining publicownership of the facilities. The two projects will provide 99% of the water to about 1.3 millionpeople in Seattle and the surrounding cities. The Tolt Treatment Facility is a 120 milliongallon per day (MGD) filtration and ozonation plant for treatment of Seattle's Tolt Riversource of supply, which provides about a third of the water for Seattle and it's 26 regionalwholesale customers. The Tolt facility has been operational since early 2001. The CedarTreatment facility will be a 180 MGD ozonation and UV disinfection plant for treatment of theCedar source of supply, which provides about two-thirds of the water for the region. TheCedar facility is scheduled to begin construction in spring of 2002, and be operational by late2004. If operational today, the Cedar facility would be the world's largest UV drinking watertreatment facility. This paper discusses issues and options related to project definition, andreal project examples of risk allocation during implementation of these projects. Includes 2 references, figures.