Black & Veatch and McCarthy receive notice to proceed with design-build portion of North America's largest DBO water project

McCarthy Building Companies, Inc. and Black & Veatch announced today that they have received notice to proceed with design-build delivery of the 80 million gallon per day Lake Pleasant Water Treatment Plant (WTP) in Phoenix, Ariz.

Sep 23rd, 2003

Phoenix, Ariz., Sept. 23, 2003 -- McCarthy Building Companies, Inc. and Black & Veatch announced today that they have received notice to proceed with design-build delivery of the 80 million gallon per day Lake Pleasant Water Treatment Plant (WTP) in Phoenix, Ariz.

The joint venture team will design and build the advanced WTP and associated facilities. American Water Services (AWS) will then manage and operate the facilities for a period of 15 years. The City of Phoenix awarded the $336 million design-build-operate (DBO) contract to AWS in August.

"This project is a major key to growth in the northwest Phoenix area," said Bo Calbert, president of McCarthy's Southwest Division. "The Lake Pleasant WTP will provide enough water to supply 400,000 households. By getting ahead of expected growth, the city can ensure that necessary infrastructure is in place to manage water needs and usage before existing services are overwhelmed."

Design and permitting will take 12 to 15 months. Once construction begins in the summer of 2004, the two companies will manage all aspects of construction for the 225-acre plant site. The project is scheduled for startup and finished-water delivery in February 2007.

"The Lake Pleasant WTP will incorporate the latest in modern water treatment technology and automation," said Dave Mahaffay, a senior vice president and regional manager for Black & Veatch.

Treatment will include an innovative ballasted flocculation process for high-rate sedimentation, ozonation, deep-bed monomedia filters, post-filtration granular activated carbon contactors and ultraviolet disinfection. These processes will control taste and odor, eliminate harmful bacteria and other substances, and provide a reliable supply of high-quality drinking water. The contract also includes a raw water intake and pump station, 1.5 miles of large-diameter pipeline and onsite storage and pumping of finished water.

"As the largest DBO water project in North America and the first one for Phoenix, Lake Pleasant will be in the spotlight for the next four years," said Calbert.

"Design-build, construction management-at-risk and DBO are becoming more popular throughout the water industry," said Mahaffay. "These approaches enable municipalities to select contractors based on their qualifications and ability to deliver a sound product - rather than just low bid - which ultimately will save taxpayers money."

The plant is designed to match the natural environment, consistent with the Frank Lloyd Wright architectural philosophy. Extensive use of indigenous materials will link the worlds of nature and man and demonstrate the interdependence of the architecture and the site. Former Frank Lloyd Wright apprentice Vern Swabach of Swabach Partners will lead the architectural concept design as a subcontractor to the Black & Veatch/McCarthy team.

About Black & Veatch

Black & Veatch Corporation is a global engineering, construction and consulting company specializing in infrastructure development in the fields of energy, water and information. Founded in 1915, Black & Veatch serves its clients with conceptual and preliminary engineering services, engineering design, procurement, construction, financial management, asset management, information technology, environmental, security design and consulting, and management consulting services.

The Water Sector provides innovative, technology-based solutions to utilities, governments and industries worldwide. Local project managers work with a global team of water and wastewater treatment process experts to address site-specific challenges through a broad range of consulting, study, planning, design, design-build and construction management services.

The employee-owned company has more than 90 offices worldwide and was ranked 78th on the Forbes "500 Largest Private Companies in the U.S." listing for 2002. The company's Web site address is www.bv.com.

About McCarthy Building Companies

McCarthy (www.mccarthy.com) is a builder of water and wastewater facilities in Arizona, including the Scottsdale Water Campus, the 91st Avenue and 23rd Avenue Wastewater Treatment Facilities in Phoenix, the Pyramid Peak Water Treatment Facility in Glendale and the Val Vista Water Treatment Facility.

Equally adept in every type of construction delivery method, including design-build, McCarthy works with its clients to find the best format for their specific projects. Additionally, McCarthy actively engages in the hard-bid arena, which drives the company to remain cost-competitive, innovative and value-conscious.

Recently, Southwest Contractor Magazine recognized McCarthy Building Companies as the second largest general contracting firm in the Southwest (May 2003). Nationally, McCarthy ranks as the 16th largest general building contractor in the United States - up from 19th in 2002 - based on general building revenues of $959 million (Engineering News-Record, May 2003).


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