Jacobs-PCL Picked for $1B SFPUC Southeast Treatment Plant Upgrade

The San Francisco Public Utilities Commission (SFPUC) has selected a joint venture of Jacobs and PCL Construction as the progressive design-build contractor for the Southeast Treatment Plant Nutrient Reduction Project, an upgrade the utility estimates at about $1 billion, according to a Jacobs announcement on Oct. 28 and Construction Dive.

The Southeast Treatment Plant in San Francisco treats nearly 80% of the city's wastewater. The project will add advanced treatment to cut discharges of total inorganic nitrogen into San Francisco Bay while the plant stays in operation (Jacobs).

What Happened

Jacobs said the joint venture will handle design and construction of the upgrades under a progressive design-build contract. The SFPUC says the new process will meet updated state and federal environmental requirements (Construction Dive). Stephen Robinson, the SFPUC's assistant general manager for infrastructure, said, "This is a major investment to help protect San Francisco Bay by reducing nutrients in wastewater" (Jacobs). He also said the work will "remake the heart of San Francisco's largest treatment plant" while it keeps running (Construction Dive).

Jacobs will also support the SFPUC's Social Impact Partnership program with investments in community health, education and workforce training and development (Jacobs).

Project Size and Budget

Jacobs describes the project as approximately $1 billion, citing the SFPUC's estimate. The SFPUC's own project page lists the Southeast Treatment Plant Nutrient Reduction Project at $1.47 billion in its FY 2025 to 2034 capital plan and calls it the largest nutrient investment by a Bay Area utility to date (SFPUC). The sources do not explain the difference between the two figures.

No construction start, milestone or completion dates have been released (Construction Dive).

Why the Upgrade Is Needed

The SFPUC says it is working with other Bay Area wastewater utilities, regulators and scientists to determine how much nitrogen and other nutrients should be reduced to protect the bay as climate change alters conditions there, and describes the issue as one that needs a regional approach (SFPUC). The Southeast plant upgrade is part of a broader generational overhaul of the facility. The utility is also building a new Treasure Island Water Resource Recovery Facility, scheduled for completion in 2026, that is designed to remove around 80% of nitrogen during tertiary treatment.

The Contractor Team

Jacobs reports about $12 billion in annual revenue and roughly 47,000 employees, and says it has more than 25 years of water design-build experience and more than 150 design-build projects and programs delivered, including work at the San Jose-Santa Clara Regional Wastewater Facility and the Donald C. Tillman Advanced Water Purification Facility in Los Angeles (Jacobs). Construction Dive notes Jacobs has highlighted water infrastructure as a priority, and that Jacobs and McCarthy Building Cos. began construction in June on a $185 million groundwater desalter expansion in Torrance, Calif.

The award also lands as another large Jacobs wastewater pursuit remains in dispute: a Veolia lawsuit has paused the Milwaukee Metropolitan Sewerage District's $700 million contract award, as we reported in Veolia Lawsuit Freezes Milwaukee's $700M Wastewater Contract Award.

Implications for Owners, Developers, Contractors and Subs

• Nutrient limits are driving big plant work. Nitrogen removal is pushing utilities toward large, complex upgrades at existing plants. Owners in other watersheds facing tighter limits should expect similar scopes.
• Progressive design-build is now common for water. Selecting a team before design is complete lets the owner and contractor price and sequence work together, which matters when a plant must keep treating flow throughout construction.
• Phasing in an operating plant is the core challenge. Tie-ins, bypass pumping, temporary process trains and shutdown windows will drive schedule and cost, and create work for mechanical, electrical, process piping and controls subcontractors.
• Local workforce commitments come with the work. The Social Impact Partnership requirement signals that community and workforce investment is part of how large public water contracts are awarded.

What to Watch

• Release of a schedule, including design milestones and the first construction packages.
• How the SFPUC reconciles the roughly $1 billion estimate with the $1.47 billion capital plan budget.
• Subcontracting and local business opportunities under the progressive design-build model.
• Regional decisions on Bay nutrient targets, which could affect other Bay Area treatment plants.

Bottom Line

The Jacobs and PCL joint venture will design and build the SFPUC's Southeast Treatment Plant nutrient reduction upgrade, a project of roughly $1 billion at the plant that handles nearly 80% of San Francisco's wastewater, and one more sign that nitrogen removal is becoming a major driver of water construction spending (Jacobs).

Key Questions

How much will the SFPUC Southeast Treatment Plant upgrade cost?

Jacobs cites an SFPUC estimate of about $1 billion for the Southeast Treatment Plant Nutrient Reduction Project, while the SFPUC capital plan lists the project at $1.47 billion (SFPUC).

Who is building the Southeast Treatment Plant Nutrient Reduction Project?

A joint venture of Jacobs and PCL Construction was selected by the SFPUC as the progressive design-build contractor (Construction Dive).

What does the Southeast Treatment Plant upgrade do?

The upgrade adds advanced treatment at San Francisco's Southeast Treatment Plant to reduce discharges of total inorganic nitrogen into San Francisco Bay (Jacobs).

When will construction start on the Southeast Treatment Plant project?

The SFPUC and Jacobs have not disclosed construction start or completion dates for the Southeast Treatment Plant Nutrient Reduction Project (Construction Dive).

Related Coverage

• Veolia Lawsuit Freezes Milwaukee's $700M Wastewater Contract Award
• The National Wastewater Infrastructure Wave: A $630 Billion Backlog Driving Construction Across the Country
• Village of Webster Completes $16M Wastewater Plant Upgrade

Image credit: San Francisco Public Utilities Commission. Image from the source article.

Sources

• Jacobs, Jacobs to deliver $1 billion San Francisco wastewater upgrade through joint venture, https://invest.jacobs.com/news/investor-news/news-details/2026/Jacobs-to-deliver-1-billion-San-Francisco-wastewater-upgrade-through-joint-venture/default.aspx
• Construction Dive, Jacobs-PCL JV wins $1B San Francisco wastewater upgrade, https://www.constructiondive.com/news/jacobs-pcl-jv-award-san-francisco-wastewater-upgrade/873095/
• San Francisco Public Utilities Commission, Upgrading Our System to Reduce Nutrients, https://www.sfpuc.gov/about-us/our-systems/sewer-system/upgrading-our-system-reduce-nutrients