Report on Contractual Dispute Impeding Progress Towards Sustainable Development Goals in Brunswick County

Executive Summary

Brunswick County, North Carolina, has initiated legal proceedings against Oscar Renda Contracting, Inc. (ORC) for a breach of contract concerning the expansion of the Northwest Water Treatment Plant. The project, critical for providing safe drinking water, has experienced significant delays, thereby hindering the county’s progress towards achieving key United Nations Sustainable Development Goals (SDGs), particularly SDG 6 (Clean Water and Sanitation) and SDG 3 (Good Health and Well-being). This report outlines the project’s background, the contractual failures, the resulting legal action, and the profound impact on the community’s access to clean water.

Project Background and Alignment with Global Sustainability Targets

Objective: Achieving SDG 6 – Clean Water and Sanitation

The primary objective of the construction project is the installation of an advanced reverse osmosis (RO) filtration system at the Northwest Water Treatment Plant. This initiative is a direct response to the urgent need to remove per- and polyfluoroalkyl substances (PFAS), also known as “forever chemicals,” from the public water supply. Successful completion is fundamental to meeting the targets of SDG 6, which aims to ensure universal and equitable access to safe and affordable drinking water for all.

• Contracting Parties: Brunswick County and Oscar Renda Contracting, Inc. (ORC).
• Contract Date: May 26, 2020.
• Contract Value: $122.6 million.
• Core Mandate: To construct a treatment system capable of eliminating hazardous contaminants, directly supporting SDG 3.9, which seeks to reduce illnesses from water pollution and contamination.

Breach of Contract and Setbacks to Sustainable Development

Failure to Meet Project Milestones

The lawsuit alleges that ORC failed to adhere to the agreed-upon project timeline, constituting a significant breach of contract. These delays represent a major setback for the sustainable development of the community, as residents continue to be exposed to contaminated drinking water.

1. Initial Completion Deadline: December 10, 2023.
2. Subsequent Projections: The completion date was later revised to the end of 2024, then late-spring 2025.
3. Official Revised Deadline: Following approved extensions, the final deadline was set for May 6, 2024, which was also missed.

The county asserts that these delays were within ORC’s control, citing issues such as inadequate staffing. This failure in project execution undermines the principles of SDG 17 (Partnerships for the Goals), which relies on effective and reliable collaboration between public and private entities to achieve sustainable outcomes.

Legal Recourse and Institutional Accountability

Upholding Public Interest through SDG 16

In response to the contractual failures, Brunswick County has terminated its contract with ORC and filed a lawsuit seeking damages. This action reflects the county’s commitment to SDG 16 (Peace, Justice and Strong Institutions), which emphasizes the need for effective, accountable, and transparent institutions to protect public interests.

Financial and Legal Details

• Payments Made: The county has paid ORC nearly $100 million of the contract value.
• Alleged Deficiencies: A significant portion of the completed work allegedly fails to conform to contract specifications and requires correction.
• Damages Sought: The county is claiming damages exceeding $25,000, the full amount to be determined at trial. This includes costs to correct and complete the work.
• Liquidated Damages: The county is also seeking liquidated damages of $5,500 per day from June 30, 2023, until the project is substantially complete.

Community Impact and the Urgent Need for Clean Water

Human Cost of Delayed Access to a Basic Right

The project delays have had a devastating impact on the residents of Brunswick County, prolonging their wait for PFAS-free tap water. This situation directly contravenes the goals of SDG 11 (Sustainable Cities and Communities), which includes providing access to basic services like safe water. The community’s frustration is palpable, as articulated by Emily Donovan of Clean Cape Fear, who noted, “We learned about GenX eight years ago, and the majority of Brunswick County still does not have PFAS-free tap water.”

The county has affirmed its commitment to completing the project as designed, actively seeking a new contractor to resume work. The resolution of this matter is critical not only for fulfilling a contractual obligation but for safeguarding public health and advancing the region’s commitment to the Sustainable Development Goals.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The issues discussed in the article, primarily the delay in constructing a water filtration system to remove PFAS, are connected to several Sustainable Development Goals (SDGs). These goals focus on ensuring basic human needs, health, sustainable infrastructure, and effective governance.

   • SDG 6: Clean Water and Sanitation

     This is the most directly relevant SDG. The entire article revolves around the effort to provide clean and safe drinking water to the residents of Brunswick County by building a reverse osmosis treatment system to filter out “forever chemicals” (PFAS). The project’s failure directly impacts the community’s access to safe water.

   • SDG 3: Good Health and Well-being

     The article highlights the health implications of the project’s delay. It mentions that residents “still don’t have access to clean drinking water, free from forever chemicals and other contaminants.” PFAS are known hazardous chemicals, and their removal from the water supply is a crucial public health measure to prevent illnesses.

   • SDG 9: Industry, Innovation and Infrastructure

     The article details the challenges in constructing a critical piece of public infrastructure—the Northwest Water Treatment Plant. The lawsuit against the contractor for project delays, failure to staff adequately, and non-conforming work speaks directly to the challenges of developing “quality, reliable, sustainable and resilient infrastructure.”

   • SDG 11: Sustainable Cities and Communities

     This SDG includes ensuring access to basic services for all residents. The article states that “the majority of Brunswick County still does not have PFAS-free tap water,” indicating a failure to provide a fundamental basic service to the community, which is essential for making it sustainable and livable.

   • SDG 16: Peace, Justice and Strong Institutions

     The legal action taken by Brunswick County against the contractor demonstrates the role of public institutions in upholding contracts and protecting public interest. The lawsuit is an effort by a local government to ensure accountability and transparency in a major public works project, reflecting the goal of developing “effective, accountable and transparent institutions.”

2. What specific targets under those SDGs can be identified based on the article’s content?

   Based on the article’s focus, several specific targets within the identified SDGs are relevant:

   • Target 6.1: Achieve universal and equitable access to safe and affordable drinking water for all.

     The article explicitly states the project’s goal is to provide “PFAS-free tap water” for the “majority of Brunswick County” that currently lacks it. This directly aligns with the target of achieving universal access to safe drinking water.

   • Target 3.9: Substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.

     The project’s purpose is to install a “reverse osmosis water treatment system” to “filter forever chemicals out of the drinking water supply.” This is a direct action to mitigate the health risks associated with hazardous chemicals (PFAS) in the water, thereby reducing potential illnesses.

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure…to support…human well-being, with a focus on affordable and equitable access for all.

     The article discusses the construction of the water treatment plant, a critical infrastructure project for human well-being. The repeated delays, breach of contract, and failure to complete the project highlight the challenges in achieving this target.

   • Target 16.6: Develop effective, accountable and transparent institutions at all levels.

     Brunswick County’s decision to file a lawsuit against Oscar Renda Contracting, Inc. for breach of contract is a clear example of a public institution taking action to enforce accountability. The article notes, “This action was necessary to protect the best interests of our residents.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   The article contains several explicit and implied indicators that can be used to measure progress:

   • Indicator for Target 6.1: Proportion of population using safely managed drinking water services.

     The article implies this indicator is low, stating “the majority of Brunswick County still does not have PFAS-free tap water.” The success of the project would be measured by the increase in the proportion of the population with access to water free of PFAS contaminants.

   • Indicator for Target 3.9: Reduction in exposure to hazardous chemicals.

     While not a formal UN indicator, a practical measure implied by the article is the concentration of PFAS in the municipal water supply. The goal of the reverse osmosis system is to reduce these levels to non-detectable or safe amounts, directly measuring progress towards reducing contamination.

   • Indicator for Target 9.1: Project completion status and adherence to schedule and budget.

     The article provides clear metrics of failure for this infrastructure project. These include missed deadlines (original: Dec 10, 2023; revised: May 6, 2024), project cost ($122.6 million), and liquidated damages for delays ($5,000 per day). Progress would be measured by the successful completion of the plant.

   • Indicator for Target 16.6: Institutional actions to enforce accountability.

     The filing of the lawsuit itself is an indicator of an institution taking action. The damages claimed (“more than $25,000, with the exact amount to be determined at trial”) and the termination of the contract are measurable outcomes of the county’s effort to enforce accountability.

Summary of Findings

Source: wect.com