Contractors FlatironDragados and Sukut Construction have begun work on the Anderson Dam seismic retrofit project in Morgan Hill, California. The contract for the project is valued at $1.9 billion, and according to an announcement from Hochtief (FlatironDragados' parent company) on August 21, construction has commenced following receipt of the notice to proceed from the Santa Clara Valley Water District.

As part of the scope of work, the construction team will rebuild major portions of the dam to meet modern seismic safety standards, the announcement stated. Specific work includes rebuilding the dam embankment and spillway, installing new outlet works, and completing associated road, utility, and environmental improvement work.

Anderson Reservoir, formed by the dam, is the largest surface water reservoir in Santa Clara County. The announcement noted that the reservoir provides water supply, groundwater recharge, and incidental flood protection for nearly two million residents.

The total cost of the overall project is estimated at $2.8 billion, with construction of the seismic retrofit portion expected to begin in early 2027.

According to Valley Water (Santa Clara Valley Water District), the higher overall project cost covers other aspects of construction. For example, in addition to the seismic retrofit, FlatironDragados, as the primary contractor, is nearing completion of the Anderson Dam Tunnel project, a key part of preparing Anderson Dam for this phase of the agency's project. According to a Valley Water fact sheet, the tunnel, which is 1,700 feet long and 24 feet in diameter, began construction in 2021 and will serve as the permanent low-level outlet for Anderson Reservoir.

This larger project highlights a trend in the water engineering sector—contractors and municipalities are increasing investments in water security and aging infrastructure, including water treatment facilities and infrastructure rehabilitation work.

In fact, water projects today vary by region. Projects in the Southwest may focus on "squeezing every drop," said Jaren Murphy, president of the water business at St. Louis-based McCarthy Building Companies. "Almost every large municipality, water district, whatever it is, has a capital improvement plan of over a billion dollars and is working to improve infrastructure and build new plants," Murphy told Construction Dive earlier this month. "The overall growth in this market over the last five years has really been incredible."