About the Project
Municipal Utility Saves Major Costs with Effective Risk Management
When commissioning completed in August 2017, all those involved with the Ray D. Nixon Power Plant sulfur dioxide (SO2) scrubber and activated carbon injection system project for Colorado Springs Utilities (Utilities) were pleased with the results. The $57 million project was a success: No construction surprises had emerged; no old unforeseen utility corridors or foundations were unearthed, and the system worked as designed, all with a cost savings of $10 million to the client. Utilities hired Stanley Consultants to serve as its owner’s engineer providing construction and project oversight. The first task was to generate a performance specification for a contractor. Stanley Consultants was also called on to design new transformers, an isophase bus duct, a new fire suppression system and to assist in procuring new ultra-low NOX burners. Both Utilities and Stanley Consultants employed a risk management matrix that evaluated risk and had the owner and construction firm bearing risks and monetary rewards based on the project’s progress.