Detroit advances $30 million in water main replacement contracts to Major Contracting Group

Detroit advances $30 million in water main replacement contracts to Major Contracting GroupThe Detroit Water and Sewerage Department's Finance Committee has approved two contracts totaling nearly $30 million for Major Contracting Group to replace 58,000 linear feet of aging water mains and lead service lines across two city districts.

Major Contracting Group secured two two-year contracts, valued at $11.49 million and $18.47 million, for work in Districts 5 and 6.

The broader scope includes replacing 58,000 linear feet of water main, alongside gate valves, hydrants, and lead service lines.

DWSD plans to issue bonds in the spring of 2027 to reinforce construction cash in the water fund to support ongoing capital programs.

The Great Lakes Water Authority concurrently outlined a $240 million annual water infrastructure investment plan for FY2027-2031.

During the July 8, 2026, meeting of the Detroit Water and Sewerage Department (DWSD), the Finance Committee authorized two major water system improvement contracts for Major Contracting Group. The contracts, totaling $29.97 million, will fund the replacement of 58,000 linear feet of water mains across Detroit's District 5 and District 6 neighborhoods. The first contract, designated WS-751, is valued at a not-to-exceed amount of $11,496,000. It covers the replacement of approximately 23,000 linear feet of water main in District 5, along with associated gate valves, hydrants, and lead service lines. According to DWSD procurement representative Ms. Welch, the project received four bid responses after 61 days of advertisement, with Major Contracting Group identified as the lowest responsive and responsible bidder. The second contract, WS-752, mirrors the scope of the first but targets District 6. Valued at $18,475,000, it involves the replacement of 35,000 linear feet of water main. This contract received three bid responses over a 29-day advertisement period. Both contracts have a term of two years. Welch noted that Major Contracting Group holds certifications as a Detroit-headquartered and Detroit-based business, and has committed to assigning more than 50% Detroit residents to perform the work. The committee approved both contracts to advance to the full Board of Water Commissioners for final approval. DWSD is actively managing its cash reserves to support these ongoing capital programs. Chief Financial Officer Istakar Rahman noted during the meeting's financial review that the utility plans to issue bonds in the spring of 2027 to reinforce construction cash in the water fund, which he indicated is currently at a low end. The contract approvals come as Detroit and the broader region ramp up infrastructure spending. Earlier in the meeting, Dima El Gamal, Capital Planning Director for the Great Lakes Water Authority (GLWA), presented the newly effective FY2027-2031 Capital Improvement Plan. The five-year plan projects an annual investment of approximately $240 million for water and $254 million for wastewater infrastructure, encompassing 154 projects across the regional system, including major transmission and flow control upgrades within Detroit city limits.