In today’s construction news, read about how, with a projected cost of over $20 billion, the California Department of Water Resources (DWR) and its State Water Project (SWP) are preparing a massive conveyance infrastructure project. Meanwhile, according to a WTW analysis, the capacity levels in the global construction insurance market are noticeably rising and are getting close to what was observed in 2019 during the previous soft market cycle.
Can California’s $20bn Water Utility Construction Stop Climate Change
Original Source: Can California’s US$20bn water utility construction curb a climate change catastrophe?
The Delta Conveyance Project is a $20 billion California water utility construction project in development and permitting. How will this megaproject prevent climate change by rerouting the region’s restricted water supply to better serve its population?
Most Californians are caught between two rocks.
The Sierra Nevada, the US’s greatest mountain range (excluding Alaska), extends through California’s central/eastern side and covers 25% of its land. On the state’s western coast, the Pacific Ocean is a salty sea.
Most Californians get their drinking water from the mountains, where dams, levees, intakes, and discharges convey melted snowfall to homes, businesses, and farmland.
Climate change has weakened the water delivery system, and California officials say it delivers less water than before.
Thus, the California Department of Water Resources (DWR) and its State Water Project (SWP) are preparing a $20 billion conveyance infrastructure project.
The Delta Conveyance Project (DCP) would build 45 mi (72km) of concrete tunnels beneath a regional river delta between Sacramento and San Francisco to construct and modernize water transmission infrastructure. The project will add two water intakes to the Sacramento River at the “Delta” where the San Joaquin and Sacramento rivers meet.
The DCP water system will service just under 30 million people, or 70% of California’s population, making it a huge event for the US’s largest state.
A peek at building California’s DCP megaproject
The DCP Design and Construction Authority (DCA), the joint-powers organisation supervising the megaproject, is scaling up to solve significant difficulties.
The DCA, which represents 16 California Public Water Agencies (PWA), is served by the California DWR State Water Project, a statewide public utility responsible for water and electricity infrastructure.
DCA executive director Graham Bradner described the massive utility build for Construction Briefing, including some of the procedures and materials.
He remarked, “The project would consist of two new intakes along the main stem of the Sacramento River. “These would divert State Water Project flows from the north Delta into a conveyance tunnel 45 mi long and 36 ft (11m) in internal diameter.”
The project will use TBMs for substantial tunnelling.
“That tunnel would connect those intakes in the north Delta to the existing State Water Project infrastructure in the south Delta,” Bradner said.
Upgrades would also involve a new pumping station to lift water from the tunnel and uphill 250 ft (76m) to the Bethany Reservoir, 60 miles (97km) east of San Francisco and 40 miles (64km) southwest of the source.
Bradner claimed the new Bethany pumping station would have “a series of four parallel 15-ft (4.6m) diameter welded-steel aqueduct pipelines [which] would route their way about 2.5 mi (4km) up the hillside and then discharge into the existing reservoir through a new discharge structure.”
Bradner stated precast concrete segments and diaphragm walls will be used for subterranean operations and that concrete will be the most used material.
Also used will be steel, especially rebar and aqueduct pipelines. Bradner said talks on employing steel fiber reinforced materials may occur at contracts in the future years.
Next Delta Conveyance Project steps?
After releasing its Environmental Impact Report for the DCP, the state DWR approved the program, which still needs permits through 2026.
After endangered species permits, water rights permits would come early next year.
Development and design are ongoing internally with the intention of implementing ideas after several years of permitting.
The company has begun identifying design preferred contracting partners, although preconstruction tenders may take years.
“We would plan to initiate construction in mid-2029,” Bradner stated. We would commence with early works elements to build our power infrastructure and connections for construction, road access, and logistical elements.
Brander stated the TBMs, the largest equipment, would be acquired first. Due to the length of the boring phases, he advised getting TBMs on-site as soon as possible.
Bradner stated that they would procure TBM contractors early to begin construction of tunnel and launch shafts in 2033 or 2034. “So, 2035 is about maximum construction.”
He added commissioning may begin in 2042 and utility operations in 2045.
Climate change necessitated Delta Conveyance Project
California DWR environmental program manager Carrie Buckman always planned a new conveyance facility to serve more than 27 million people and 750,000 farmland-acres from north of Sacramento to south of Los Angeles, but climate change has pushed the project from ‘wish list’ to ‘ASAP’.
In her interview with Construction Briefing, she stated that climate change and sea-level rise will worsen current issues. “We’ll see more rain and less snow.”
The water agency’s conveyance system and infrastructure were developed on the idea that mountain snow (November–March) would melt in spring before regulated distribution through the water network.
Recently reduced snowpack and more rain over a shorter period have resulted to more overflows and less water for towns.
Buckman warned that some Californians may lose clean water if the collective governing authorities don’t “take action now”.
Officials claim DCP can prevent overflowing and earthquakes.
With a plan and funds (the SWP is funding the project with DWR revenue bonds, which the PWAs will repay), can the DCP finish before a big natural disaster?
From San Francisco Bay to the west, rising sea levels drive water into the Delta region, which might generate overflows that threaten life and property, especially roughly 60 inland islands.
Buckman said the islands are unofficially called “Teacup Islands” because their inner parts are 20 ft (6.1m) below sea level.
“[And] the Delta has a pretty fragile levee system,” she said. “If those levees fail in a seismic event, water rushes in from the bay, bringing salt.”
California has roughly 10,000 earthquakes per year (a 4.4 quake hit Los Angeles on August 12), and the Delta region is on watch for seismic activity. Under the Delta are the Cleveland Hills and Sierra Nevada faults of the active San Joaquin Fault Zone.
Near San Francisco, the San Andreas and Hayward faults make the Delta one of the most earthquake-prone US regions.
Buckman said a mild quake could devastate more than half of the state’s almost 40 million residents by compromising the old levee system.
“It could cause a year of water outages,” Buckman warned. “Over a year of severely impaired water quality.
“Having an alternative delivery point without constraints is crucial.
We’re looking at this project as a way to modernize the [DWR] State Water Project for climate change.”
Project Details
Delta Conveyance Project
It cost $20 billion.
California, USA
Construction of water utilities
Construction Manager: Delta Conveyance Design and Construction Authority
Delivery to: California Department of Water Resources State Water Project
Construction begins in 2029; completion in 2040-2042
Market stabilization Boosts Construction Insurance Capacity
Original Source: Construction insurance capacity rises as market stabilizes
WTW reports that worldwide construction insurance capacity is reaching 2019 levels during the last sluggish market cycle.
Due to insurers’ concentration on local capacity and pressure from new market entrants, capacity is expected to rise during the second half of 2024 and into 2025.
The findings are from WTW’s “Global Construction Rate Trend Report,” which evaluated construction insurance markets worldwide.
Market drivers include infrastructure project expansion, pricing stability, and coverage gap opportunities.
Growing global construction insurance sector
The report predicted 7.8% and 5.1% growth in building, particularly in energy, utilities, and infrastructure projects, in 2024.
High manufacturing investments are expected in North America, Latin America, and Europe, especially in semiconductor plants, gigafactories, and data centers.
Cost of global construction insurance
Due to rising competition and new market entrants, most areas and lines of business should maintain pricing despite inflation and higher interest rates.
Due to the high danger of natural disasters, pricing and capacity are still carefully managed in the Gulf of Mexico, US East Coast, Latin America, and Asia.
New global construction insurance market opportunity
In Europe, Asia, Australia, and New Zealand, the soft market is allowing insurers to fill coverage gaps such complicated construction risks and professional liability in huge infrastructure projects.
US auto liability and lead umbrella casualty lines may offer new prospects.
Politics affect global construction insurance.
Construction investment choices have been delayed by political uncertainty, notably elections.
WTW expects big infrastructure investments, especially in the UK and EU, to accelerate in 2025.
Global construction insurance tech innovation
Technological innovation also boosts growth.
The construction sector is investing in AI, robotics, and drones to boost efficiency and overcome labor shortages.
Construction insurance market forecast globally
WTW head of construction for Australia and New Zealand Iain Drennan said all evidence point to a good market.
He said the construction insurance business is resilient despite economic challenges and contractors are developing innovative risk management solutions.
Mass timber expansion threatens world construction.
TW’s analysis focuses on market trends and capacity growth, but the construction sector is also adopting sustainable building materials like mass wood.
Mass timber is increasingly used in construction, especially in high-rise buildings, according to Allianz Commercial global director of risk advisory services Michael Bruch.
The material reduces the industry’s carbon footprint but also poses fire and natural disaster concerns.
Bruch noted the expanding usage of mass timber in Europe, Asia, and North America and stressed the need for fire-resistant design and risk management in large-scale projects.
Summary of today’s construction news
In summary, the only question left is whether the DCP can be completed before a significant natural disaster occurs. The project is being funded by the SWP through DWR revenue bonds, which the participating PWAs will repay.
Meanwhile, mass wood and other sustainable building materials are becoming more popular in the construction sector, even though WTW’s analysis concentrated on capacity expansion and market developments.
