County fires, sues water plant project contractor – Goldsboro News-Argus

Report on the Brunswick County Water Treatment Plant Project Termination

Executive Summary

Brunswick County has terminated its contract with Oscar Renda Contracting, Inc. (ORC) for the Northwest Water Treatment Plant expansion and filed a lawsuit alleging breach of contract. The project is critical for achieving several United Nations Sustainable Development Goals (SDGs), primarily SDG 6 (Clean Water and Sanitation) and SDG 3 (Good Health and Well-being), by installing an advanced reverse osmosis system to remove hazardous PFAS chemicals from the public water supply. The contractor’s repeated failure to meet deadlines has significantly delayed these vital public health and environmental objectives, prompting legal action to ensure project completion and accountability, in line with SDG 16 (Peace, Justice and Strong Institutions).

Project Mandate and Alignment with Sustainable Development Goals

SDG 6: Clean Water and Sanitation & SDG 3: Good Health and Well-being

The primary objective of the $167.3 million Northwest Water Treatment Plant expansion is to safeguard public health and provide safe, clean water. The project’s goals directly support the following SDGs:

• SDG 6 (Clean Water and Sanitation): The project aims to fulfill Target 6.1 by ensuring universal access to safe drinking water. The integration of a low-pressure reverse osmosis system with a capacity of 36 million gallons per day is specifically designed to meet Target 6.3 by improving water quality through the removal of pollutants, particularly per- and polyfluoroalkyl substances (PFAS).
• SDG 3 (Good Health and Well-being): By eliminating PFAS, which are linked to increased risks of high cholesterol, high blood pressure, and heart disease, the project directly addresses Target 3.9, which calls for a substantial reduction in illnesses from hazardous chemical contamination.
• SDG 11 (Sustainable Cities and Communities): The plant expansion is a critical infrastructure upgrade that enhances basic services for Brunswick County and surrounding municipalities, contributing to the creation of safe and resilient communities under Target 11.1.

Chronology of Contractual Failures and Project Delays

Breach of Contract by Oscar Renda Contracting, Inc.

Brunswick County entered into a $122.6 million construction contract with ORC on May 26, 2020. Despite payments totaling $99,888,624.01, the project has been plagued by significant delays and failures to meet contractual obligations. The timeline of these failures is as follows:

1. Initial Deadline Missed: ORC failed to achieve final acceptance of all work by the original deadline of December 10, 2023.
2. First Default Notice (November 2023): The county declared ORC in default for failing to maintain progress and conform to contract specifications. A forbearance agreement was subsequently established in December 2023 to provide an extended timeline.
3. Second Default Notice (July 2024): ORC failed to meet the terms of the forbearance agreement, leading to a second default notice. An amended forbearance agreement was entered in August 2024, which required the project’s sureties to provide additional oversight.
4. Amended Deadlines Missed: The contractor failed to meet the revised milestones, including beneficial use of conventional treatment by November 30, 2024, and substantial completion of the reverse osmosis system by March 3, 2025.
5. Third Default Notice (May 14, 2025): Following continued failures, the county issued a third and final default notice.
6. Contract Termination (July 25, 2025): With the project still incomplete, Brunswick County officially terminated its contract with ORC.

Legal Action and Implications for SDG Attainment

Enforcing Accountability and Seeking Project Completion (SDG 16)

In response to the contractual breaches, Brunswick County has initiated legal proceedings to uphold its agreements and protect public resources, reflecting the principles of SDG 16 (Peace, Justice and Strong Institutions).

• Lawsuit Against Contractor: A complaint has been filed against ORC for breach of contract, seeking damages of not less than $25,000, plus costs to complete the project and liquidated damages of $5,500 per day.
• Performance Bond Claim: The county has filed a claim against the project’s sureties, Zurich American Insurance Company and Federal Insurance Company, demanding they fulfill their obligation to ensure the completion of the work as stipulated in the performance bond.
• Breach of Forbearance Claim: The lawsuit also alleges that both ORC and its sureties breached the terms of the forbearance agreements.

Impact on Sustainable Development

The project’s disruption has severe consequences for the region’s progress toward its sustainable development targets.

• Delayed Progress on SDG 6 and SDG 3: The failure to complete the water treatment facility prolongs the exposure of thousands of residents to PFAS-contaminated water, directly undermining efforts to provide clean water and protect public health.
• Challenges in Public-Private Partnerships (SDG 17): This case highlights the risks and challenges inherent in public-private partnerships (Target 17.17) for critical infrastructure, demonstrating the need for robust oversight and enforcement mechanisms to ensure that such partnerships successfully deliver on their goals.

Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 3: Good Health and Well-being

  The article directly connects to SDG 3 by focusing on the removal of harmful “forever chemicals” (PFAS) from the public water supply. It explicitly states that exposure to these chemicals is linked to an “increased risk of chronic disease such as high cholesterol, high blood pressure and heart disease.” The entire project is a public health initiative aimed at preventing these illnesses.

• SDG 6: Clean Water and Sanitation

  This is the most central SDG to the article. The text describes a major project to expand the “Northwest Water Treatment Plant” and install an “advanced low-pressure reverse osmosis water treatment system.” The primary goal is to treat and remove PFAS contamination from the county’s water supply, directly addressing the need for safe and clean drinking water.

• SDG 9: Industry, Innovation, and Infrastructure

  The article details a significant infrastructure project: the “$167.3 million Northwest Water Treatment Plant expansion.” It also highlights the use of innovative technology, specifically the “advanced low-pressure reverse osmosis water treatment system,” which was selected after a pilot program proved its effectiveness. The challenges, delays, and legal disputes discussed in the article are all part of the complexities of developing large-scale, resilient infrastructure.

• SDG 16: Peace, Justice and Strong Institutions

  This goal is relevant due to the legal and institutional actions described. Brunswick County, as a public institution, is taking legal action (“fired and sued the contractor”) to enforce a contract and hold the contractor accountable for failing to meet its obligations. The article details the “notice of termination,” the “legal complaint,” and the “performance bond claim,” which are all functions of a strong, justice-seeking institution working to protect public interests and investments.

• SDG 17: Partnerships for the Goals

  The article provides a case study of a public-private partnership. The project involves Brunswick County (a public entity) and a private contractor, “Oscar Renda Contracting, Inc. (ORC),” as well as surety bond issuers. The narrative, which revolves around the contractor’s failure to perform and the subsequent termination of the contract, highlights the challenges and risks inherent in such partnerships and the mechanisms needed to manage them.

What specific targets under those SDGs can be identified based on the article’s content?

1. Target 3.9: Substantially reduce illnesses from hazardous chemicals and water contamination

   The project’s entire purpose is to “treat and remove PFAS materials from the county’s water supply.” The article notes that PFAS are hazardous chemicals linked to chronic diseases. By implementing a system that can reduce PFAS to “undetectable levels,” the project directly aims to reduce illnesses caused by water contamination.

2. Target 6.1: Achieve universal and equitable access to safe and affordable drinking water for all

   The project is designed to ensure safe drinking water for a wide population, including “customers who receive water from Brunswick County Public Utilities and those who receive water from the towns of Holden Beach, Oak Island and Ocean Isle Beach and the village of Bald Head Island.” Furthermore, the expansion will double the plant’s capacity, increasing the availability of safe water.

3. Target 6.3: Improve water quality by reducing pollution and minimizing release of hazardous chemicals

   The project is a direct response to the “2017 discovery of PFAS contamination in the Cape Fear River” from industrial discharge. The installation of the reverse osmosis system is a water treatment solution designed to improve the quality of the finished drinking water by eliminating these hazardous chemicals.

4. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure

   The expansion of the Northwest Water Treatment Plant is a clear example of developing quality public infrastructure. The goal is to create a reliable and resilient water supply system capable of handling contamination threats like PFAS, thereby supporting the well-being of the community it serves.

5. Target 16.6: Develop effective, accountable and transparent institutions at all levels

   Brunswick County’s actions demonstrate an effort to be an effective and accountable institution. By issuing default notices, terminating the contract for non-performance, and filing a lawsuit to seek damages and compel completion of the work, the county is enforcing its contractual rights and attempting to ensure a public project is completed as promised.

6. Target 17.17: Encourage and promote effective public-private partnerships

   The article describes the formation of a public-private partnership between Brunswick County and Oscar Renda Contracting, Inc. to build the plant. The subsequent failure, breach of contract, and legal action serve as a real-world example of the complexities and importance of accountability frameworks within such partnerships.

Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator: Concentration of pollutants in drinking water

  The article provides a clear indicator for water quality. It mentions that Brunswick County had “PFAS detection over the U.S. Environmental Protection Agency’s maximum contamination levels.” The success of the project is benchmarked against the pilot study’s result, which “reduced most PFAS to undetectable levels.” Measuring the level of PFAS in the water before and after the project’s completion is a direct indicator of progress towards Targets 3.9 and 6.3.

• Indicator: Population served and volume of safely managed drinking water

  Progress towards Target 6.1 can be measured by the plant’s capacity. The article states the project will double the plant’s capacity and the “low-pressure reverse osmosis treatment will have a capacity of no less than 36 million gallons per day.” This provides a quantifiable measure of the increased access to safe water.

• Indicator: Investment in and completion of infrastructure projects

  For Target 9.1, the article provides several indicators. The total investment is “$167.3 million,” with a construction contract of “$122,600,000.” The project timeline, with its original and repeatedly extended deadlines (e.g., “final acceptance of all work would take place on 10 December 2023”), serves as an indicator of implementation efficiency. The current delays and failure to meet milestones are negative indicators of progress.

• Indicator: Enforcement of contracts and legal accountability

  Progress towards Target 16.6 can be measured by the county’s actions. The article mentions specific institutional actions: “three default notices,” a “notice of termination,” a “legal complaint in Brunswick County Superior Court,” and a “performance bond claim.” These actions are indicators of an institution attempting to enforce accountability.

• Indicator: Status and outcome of public-private partnership agreements

  For Target 17.17, the status of the partnership itself is the indicator. The article clearly states the partnership has failed, evidenced by the “breach of the construction contract” and the county’s decision to fire the contractor. The outcome of the lawsuit will be a final indicator of how the responsibilities and liabilities of this partnership are resolved.

Table of SDGs, Targets, and Indicators

Source: newsargus.com