Consolidated Water signs roughly $39.8M build deal
PERC’s completion deadline follows a 703-calendar-day schedule, and late completion can trigger daily damages capped at 5% of the contract price.
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Rhea-AI Filing Summary
Consolidated Water Co. Ltd. (CWCO), through its U.S. subsidiary PERC Water Corporation, entered a fixed-price design-build agreement with the City of Pismo Beach valued at approximately $39.8 million, subject to contract adjustments. The agreement describes an initial production phase of approximately 500 acre-feet per year and design provisions for a future expansion to approximately 750 acre-feet per year; that expansion is excluded from the current scope. The accompanying release describes the approved scope as approximately 750 acre-feet per year.
PERC will design, construct, test and commission the facility and provide 600 hours of City staff training and support within six months after Substantial Completion; it is not obligated to operate the facility after the training period. Substantial Completion is due within 703 calendar days after services commence, with September 17, 2028 specified assuming notice to proceed on October 15, 2026. PERC expects construction to begin in spring 2027. The City pays approved monthly applications within 30 days and retains 5% of progress payments. Late completion carries liquidated damages of $2,500 per calendar day, capped at 5% of the contract price, approximately $2.0 million.
Filing Explained
Testing is a contractual completion gate; PERC carries specified project risks, with aggregate liability capped at fourteen million dollars.
The executed agreement places design, site and subsurface-condition risks on PERC, subject to limited relief, and identifies costs exceeding estimates as a risk under the fixed-price contract.
PERC must correct testing failures at its own expense until the specified performance criteria are met, and meeting those criteria is a condition of Substantial Completion. The agreement requires performance and labor-and-materials bonds each equal to 100% of the contract price and a warranty bond equal to 10%.
PERC’s aggregate liability is capped at
8-K Event Classification
Key Figures
Key Terms
Substantial Completion technical
liquidated damages financial
retention financial
ultrafiltration technical
ultraviolet advanced oxidation technical
performance bond financial
FAQ
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