Cadiz Inc. (CDZI) Enters CMAR Contracts Setting GMPs for Northern Pipeline

What Happened
Cadiz Inc. (NASDAQ: CDZI) filed an 8-K on July 28, 2026 reporting entry into Construction Manager at Risk (CMAR) agreements dated July 27, 2026. The agreements—between Fenner Gap Mutual Water Company and W.M. Lyles Co., and between Fenner Gap Mutual Water Company and Mike Bubalo Construction Co., Inc.—establish guaranteed maximum prices (GMPs) for the project’s principal construction packages (including pump stations and pipeline replacement) for the Northern Pipeline. Together with owner‑procured long‑lead equipment and materials, these agreements establish substantially all of the estimated construction capital expenditures required to place the Northern Pipeline into service.

Key Details

• Agreements dated July 27, 2026; reported in Cadiz’s Form 8‑K filed July 28, 2026 (Item 1.01).
• Parties: Fenner Gap Mutual Water Company with W.M. Lyles Co. (amended CMAR) and Mike Bubalo Construction Co., Inc. (exhibits 10.1 and 10.2).
• Scope: GMPs cover principal construction packages (pump stations, pipeline replacement); owner‑procured long‑lead equipment and supplier pricing/options are excluded from the CMAR GMPs.
• Purpose: CMAR structure provides contractually established GMPs while allowing the Company to directly procure major equipment; intended to reduce cost uncertainty and establish a defined construction capital budget for project financing of the Mojave Groundwater Bank.

Why It Matters
For investors, these CMAR agreements formalize how Cadiz/Fenner Gap will control and budget construction costs for the Northern Pipeline — a critical component for the Mojave Groundwater Bank project. By locking in GMPs for major construction packages while retaining owner procurement flexibility for long‑lead items, the company aims to reduce cost uncertainty and produce a defined construction capital budget that can be used in project financing discussions.