Portage plans $55M wastewater project with local contractors amid rising material costs

The City of Portage is gearing up for a significant investment in its wastewater treatment infrastructure, with project costs projected to reach approximately $55 million by 2027. This ambitious plan was discussed during a recent government meeting, where officials highlighted the challenges posed by rising construction costs and regulatory requirements.

Key discussions revealed that specific trades, particularly concrete and steel reinforcement, have seen price increases of over 20% compared to previous trends. Electrical and piping costs are also on the rise, contributing to the overall financial burden of the project. The ongoing demand for construction work has left contractors with full schedules, which may affect their pricing strategies as they bid on the project.

The meeting also addressed the implications of tariffs on project costs. While iron and steel products must be sourced from the U.S. due to Clean Water Fund requirements, other components may still be affected by international tariffs, potentially adding 5-10% to material costs. Contractors will submit lump-sum bids, but they may include markups to account for these uncertainties.

Looking ahead, the city plans to advertise the project for bids in July 2025, with the expectation that construction will begin by the end of the year. The project is set to be completed by mid to late 2028, coinciding with compliance deadlines for phosphorus regulations.

As the city prepares for this extensive project, officials are also considering future rate increases to support the necessary debt service. Financial consultants are engaged to help structure the financing in a way that minimizes immediate rate impacts on residents.

This wastewater treatment project represents a critical step for Portage, ensuring compliance with environmental standards while addressing the community's growing infrastructure needs.