San Francisco Awards $1 Billion Utility Plant Contract
The city selects a joint venture to upgrade the Southeast Treatment Plant for improved environmental standards.
Updated on Oct. 28, 2026 in Utilities
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The San Francisco Public Utilities Commission has awarded a $1 billion contract to Jacobs and PCL Construction for major infrastructure upgrades. The project will modernize the Southeast Treatment Plant to include advanced nutrient reduction capabilities.
Why it matters
This project is essential for bringing the facility, which processes nearly 80% of San Francisco's wastewater, into compliance with updated state and federal environmental discharge standards.
The $1 billion investment covers an extensive upgrade to the Southeast Treatment Plant, which currently handles nearly 80% of San Francisco's wastewater. The project utilizes a progressive design-build model while maintaining continuous plant operations.
The players
San Francisco Public Utilities Commission
This department manages the water, wastewater, and municipal power systems that serve the residents and businesses of San Francisco.
Jacobs
This global professional services firm provides technical, professional, and construction services for various infrastructure projects.
PCL Construction
This group of independent construction companies provides contracting and construction management services for civil and building infrastructure.
The details
Jacobs and PCL Construction will implement advanced treatment processes at the site to ensure lower nutrient discharge levels. As part of the agreement, Jacobs has also committed to funding local initiatives centered on community health, workforce training, and education.
Timeline
October 28, 2026: The Southeast Treatment Plant contract award is announced.
Market Landscape
This project reflects a broader trend of major urban utilities aggressively upgrading aging infrastructure to meet strict environmental mandates. By utilizing the progressive design-build model, the city positions itself to accelerate complex capital improvements amidst rising industry competition for specialized engineering services.
Residents can expect these improvements to ensure long-term environmental safety and more efficient wastewater management for the city. The project is designed to occur without interrupting essential daily treatment services for local households.
The takeaway
Large-scale infrastructure upgrades often employ modern design-build models to ensure that critical services remain active during construction. Residents benefit from these long-term investments through improved environmental compliance and modernized city facilities.
Further reading
Learn more about local infrastructure projects in the Utilities section.
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Should large municipal infrastructure projects be required to fund local community and workforce training programs?
