Residential developer leverages AUC lease and phased installation for 75% savings
When a planned community under construction in Harris County, Texas, needed wastewater treatment, the lowest bid on a 600,000 GPD activated sludge system came in at $8 million. The four-section development would be built and put on the market one section at a time, but the bidding companies all required full payment for the complete plant upfront.
When the developer turned to AUC Group for a solution to free up capital, AUC’s Lease Plant Program was able to provide the required treatment capacity for only $2 million, cutting the total cost by 75%.
AUC also used its modular design to install the plant in four phases, each commissioned and paid for only when the section of the community it would serve went on the market and demand came online.
A five-year lease with phased installation was able to lower total cost and break up capital expenditure into bite-size units, giving the developer breathing room and five years to grow. The completed plant now serves the whole community with 600,000 GPD of treatment capacity.
AUC packaged wastewater treatment systems are more scalable than traditional plants and built for permanence, making all leases available for purchase when the term ends. Leases are also ideal for temporary bypass plants.
Christopher Gilbert, PE, the development’s project and construction engineer, said:
“The parent holding company was able to direct savings from this project to other capital projects to continue to maintain overall development in the initial growth phases of the community.”
Contact AUC Group to put the power of our Lease Plant Program to work in your project.