Case Study: Skilled Pipe Welder Shortage Causes Delay in Denver Water Treatment Plant Expansion (2020)

Project Overview
• Name: Denver Water Treatment Plant Expansion
• Location: Denver, Colorado
• Year: 2020
• Project Size: $275 million
• Scope: Expansion involving extensive high-pressure piping requiring skilled welding
• Lead Agencies/Contractors: Denver Water /

Category of the Issue, Problem, or Challenge
• Skilled Trades Shortage
• Welding and Pipefitting

Summary of the Issue, Problem, or Challenge
Shortage of certified pipe welders with qualifications for high-pressure water systems led to schedule slippage. Regional labor markets were tight, exacerbated by concurrent oil & gas projects.

Root Cause Analysis

• Small pool of welders qualified for high-spec pipe welding codes (e.g., ASME).
• Competition with other heavy industrial projects for skilled welders.
• Limited early recruitment and contingency planning.
• Owner’s aggressive schedule left limited float for labor delays.

Impacts Due to the Issue, Problem, or Challenge
• 3.5-month delay in piping installation and pressure testing.
• Increased labor costs due to premium wages and overtime (~$3.4 million).
• Impacted commissioning schedule for water treatment operations.

Corrective Actions Taken

1. Expanded recruitment to neighboring states with certified welders.
2. Established accelerated certification courses for pipeline welding.
3. Revised project schedule to allow phased piping installation.

Lessons Learned

• Skilled pipe welding labor shortages require early identification and mitigation.
• Cross-regional recruitment and training programs can alleviate shortages.
• Schedule flexibility improves resilience to labor market constraints.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Has the specialized welding labor market been fully evaluated?
• Are cross-state recruitment and training pipelines in place?
• Does project sequencing optimize limited skilled labor availability?