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
- Expanded recruitment to neighboring states with certified welders.
- Established accelerated certification courses for pipeline welding.
- 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?