BCRUA warns of 300-day delay on Phase 2 raw water project, expands pumping scope

BCRUA warns of 300-day delay on Phase 2 raw water project, expands pumping scopeThe Texas utility is bracing for significant schedule overruns on its Phase 2 delivery system, warning the contractor could face steep daily penalties while simultaneously approving design work for a contingency pump addition.

The contractor projects a 100-day delay past the February 16, 2027 substantial completion deadline, but BCRUA's construction management team estimates the delay is closer to 300 days.

The utility is preparing to enforce liquidated damages of $18,000 per calendar day if the completion deadline is missed.

The board approved a $332,586 engineering contract amendment with Walker Partners/Freese and Nichols to design project changes, including a sixth pump estimated at $6.5 million to $7 million.

A $41.1 million total operating and debt service budget was approved for FY 2026-2027, driven largely by Phase 2A SWIFT loans and new operations and maintenance requirements.

The Brushy Creek Regional Utility Authority (BCRUA) in Texas is navigating severe schedule overruns on its Phase 2 raw water project, prompting stern warnings to its contractor and preparations for significant liquidated damages. During a June 24, 2026 board meeting, the utility's General Manager reported that while the contractor recently added five senior-level construction management staff, project progression remains deficient. According to a recent contract compliance schedule submitted with a May pay application, the contractor projects a 100-day delay beyond the February 16, 2027 substantial completion deadline. However, BCRUA's construction management team disputes this figure, projecting the delay could reach up to 300 days based on monthly pay application tracking. Utility leadership emphasized that they will enforce the contract's liquidated damages clause, which mandates penalties of $18,000 per calendar day past the deadline. The utility has been sending formal demand letters and holding executive meetings with the contractor to address the slow pace, though officials noted the physical quality of the completed work remains high. Despite the construction delays, BCRUA is expanding the project's scope to ensure long-term infrastructure reliability. The board approved a $332,586 supplemental contract with the Walker Partners/Freese and Nichols joint venture to engineer several owner-requested change orders. The largest addition is a sixth pump for the main pump station, estimated to cost between $6.5 million and $7 million. Staff noted this will provide a critical contingency buffer, as repairing the high-elevation pumps can take over a year. Other engineering additions include a generator feasibility study and modifications to barge decommissioning timelines. To support its growing infrastructure footprint, the board also approved a FY 2026-2027 budget featuring $7.8 million for operations and $33.3 million for debt service. The $2.5 million increase in debt service is primarily tied to Phase 2A SWIFT loans. The utility is also adding three full-time operations and maintenance positions to handle the expanded equipment load following the recent completion of Phase 1D.