Published: August 2026
A joint venture between FlatironDragados and Sukut Construction has secured a $1.88 billion contract to rebuild and strengthen the Anderson Dam in Santa Clara County, California. The project is part of a larger $2.8 billion effort led by the Santa Clara Valley Water District to improve the dam’s safety and earthquake resilience.
The Anderson Dam Seismic Retrofit Project is one of California’s largest infrastructure investments aimed at protecting water resources and nearby communities from seismic risks.
Major Safety Upgrades Planned
The project includes rebuilding much of the existing dam and spillway, installing new outlet pipelines, and completing several structural improvements designed to help the facility withstand major earthquakes.
Construction is scheduled to begin in 2027 and is expected to take approximately seven years to complete.
The water district has already completed much of the preliminary work needed before the main construction phase. One of the key preparation projects is the Anderson Dam Tunnel Project, which replaces the original 4-foot outlet pipe with a new 13-foot outlet tunnel. That work is expected to be finished later this year.
Dam Operating Under Heavy Restrictions
Built in 1950, Anderson Dam forms the Anderson Reservoir, the largest reservoir managed by the Santa Clara Valley Water District. Although it has enough storage capacity to hold more water than the district’s other reservoirs combined, the reservoir has been operating under strict limits because of earthquake safety concerns.
Current restrictions allow the reservoir to operate at only about 3% of its full capacity, significantly reducing its ability to store water for the region.
Officials have also maintained lower water levels to reduce the risk of damage if a major earthquake occurs.
Past Flooding Highlighted Need for Improvements
Safety concerns surrounding Anderson Dam have been discussed for years. During heavy storms in 2017, water flowing from Coyote Creek contributed to widespread flooding in parts of San Jose.
That same year, California also experienced the well-known spillway failure at Oroville Dam, which resulted in repair costs exceeding $1 billion and renewed attention on the condition of aging water infrastructure across the state.
Environmental Reviews Delayed Progress
The Anderson Dam retrofit has faced several delays over the years. According to Valley Water, much of the delay was linked to the federal environmental review process, including requirements under the National Environmental Policy Act.
With the construction contract now awarded, the project moves into its next major phase.
Valley Water officials described the contract award as an important milestone after years of planning, engineering, permitting, and coordination among contractors, regulators, and local stakeholders.
Water Infrastructure Spending Continues to Grow
The Anderson Dam project reflects growing investment in water infrastructure throughout the United States. Federal support for water projects is expected to increase following recent legislative efforts that could direct billions of dollars toward improving dams, reservoirs, flood control systems, and other critical infrastructure.
FlatironDragados and Sukut Construction have previously partnered on major infrastructure projects in California, bringing experience with large-scale civil engineering and dam construction to the Anderson Dam upgrade.
