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Construction Project Delivery Methods Calistoga Joint Unified School District.

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Presentation on theme: "Construction Project Delivery Methods Calistoga Joint Unified School District."— Presentation transcript:

1 Construction Project Delivery Methods Calistoga Joint Unified School District

2 1 Presenters Scott Gaudineer, Program Executive Scott Gaudineer, Program Executive Caldwell Flores Winters Kurt Evans, Vice President Kurt Evans, Vice President Lusardi Construction Juan Barroso, Vice President Juan Barroso, Vice President Blach Construction

3 2 Facilities Mission Calistoga School facilities shall support diverse, innovative, interactive learning experiences, promote academic excellence, and instill a passion for life-long learning. The facilities shall be safe, clean, and accommodate the present and future needs of the entire community.

4 3 What is Lease/Leaseback? Lease/Leaseback refers to a legal contract where: A School District leases a building or a whole school site to a General Contractor or Construction Manager giving them rights to build out the Architects design A School District leases a building or a whole school site to a General Contractor or Construction Manager giving them rights to build out the Architects design The General Contractor/Construction Manager then sub-leases the building and site back to the District to allow them to continue school operations The General Contractor/Construction Manager then sub-leases the building and site back to the District to allow them to continue school operations

5 4 Lease/Leaseback Definition The L/LB Method is a project delivery method that enables a school district to act like a private entity. It is defined and approved under the Education Code Section 17406(a) and reads: The governing board of a school district, without advertising for bids, may let, for a minimum rental of one dollar ($1) per year, to any person, firm or corporation any real property that belongs to the district if the instrument by which such property is let requires the lessee therein to construct on the demised premises, or provide for the construction thereon, a building or buildings for the use of the school district during the term thereof, and provides that title to that building shall vest in the school district at the expiration of that term….

6 5 How is Lease-Leaseback Different? The District can hand select a financially sound, qualified, reputable Contractor The District can hand select a financially sound, qualified, reputable Contractor The Contractor is part of the The Contractor is part of the Team from project start The Contractor is utilized for The Contractor is utilized for pre-construction services One Team, One Direction! One Team, One Direction!

7 6 Methods of Project Delivery Design/Bid/Build (traditional public bid) Design/Bid/Build (traditional public bid) Lease/Leaseback Design Assist Lease/Leaseback Design Assist Lease/Leaseback Design Build Lease/Leaseback Design Build CM Multi-prime CM Multi-prime

8 7 Design/Bid/Build (traditional public bid) The Design/Bid/Build process is one in which the District and the Architect work together to define project scope. The Architect (with the design team) complete the project plans which are sent out to General Contractors for public bid. The low bid General Contractor is selected. The Design/Bid/Build process is one in which the District and the Architect work together to define project scope. The Architect (with the design team) complete the project plans which are sent out to General Contractors for public bid. The low bid General Contractor is selected.

9 8 Design/Bid/Build (traditional public bid) Pros: Competitive bid process Competitive bid process Defined project prior to bid Defined project prior to bidCons: No design input prior to bid, design is not budget based No design input prior to bid, design is not budget based Largest exposure for change orders Largest exposure for change orders Adversarial relationship Adversarial relationship Time and cost overruns Time and cost overruns Stuck with low bid Stuck with low bid

10 9 Lease/Leaseback Design Assist The L/LB Design Assist process is one in which the District hires an Architect and General Contractor separately to work together to define project scope with a target budget. The Architect, District, and GC collaborate on design. The GC updates the project budget as plans progress. The L/LB Design Assist process is one in which the District hires an Architect and General Contractor separately to work together to define project scope with a target budget. The Architect, District, and GC collaborate on design. The GC updates the project budget as plans progress.

11 10 Lease/Leaseback Design Assist Pros: The District can choose their Contractor & Architect The District can choose their Contractor & Architect The Contractor is part of the design process The Contractor is part of the design process Project is designed to a budget Project is designed to a budget District, Architect, Contractor work as a Team! District, Architect, Contractor work as a Team!Cons: There is not single source responsibility There is not single source responsibility

12 11 Lease/Leaseback Design Build The L/LB Design Build process is similar to the L/LB Design Assist except that in a Design Build, the Architect works for the General Contractor. The General Contractor becomes the single source responsibility to the District. The L/LB Design Build process is similar to the L/LB Design Assist except that in a Design Build, the Architect works for the General Contractor. The General Contractor becomes the single source responsibility to the District.

13 12 Lease/Leaseback Design Build Pros: The District can choose their Contractor & Architect The District can choose their Contractor & Architect The Contractor is part of the design process The Contractor is part of the design process Project is designed to a budget Project is designed to a budget There is single source responsibility There is single source responsibility District, Architect, Contractor work as a Team! District, Architect, Contractor work as a Team!Cons: District has less control over design & quality District has less control over design & quality Architect works for Contractor, not District Architect works for Contractor, not District There can be perception of no 3 rd party representation There can be perception of no 3 rd party representation

14 13 CM Multi-prime The CM Multi-prime process is one in which the District hires an Architect and Construction Manager separately. The CM acts as the Districts agent in all pre-construction and construction activities. The CM bids out the project on behalf of the District to the various trades (carpenters, electricians, etc). The District contracts with all of the trade contractors separately and has liability for these contractors. CM manages schedule and subs. The CM Multi-prime process is one in which the District hires an Architect and Construction Manager separately. The CM acts as the Districts agent in all pre-construction and construction activities. The CM bids out the project on behalf of the District to the various trades (carpenters, electricians, etc). The District contracts with all of the trade contractors separately and has liability for these contractors. CM manages schedule and subs.

15 14 CM Multi-Prime Pros: The District can choose their CM The District can choose their CM Public competitive bid process is used for subs Public competitive bid process is used for subs The CM is involved with pre-construction and construction The CM is involved with pre-construction and construction General Contractor mark-up is saved General Contractor mark-up is savedCons: The District is most at risk (holds all low bid contracts) The District is most at risk (holds all low bid contracts) Creates the most administrative difficulty Creates the most administrative difficulty

16 15 Advantages of Having the GC Involved Early Team collaborates to identify District goals & budget Team collaborates to identify District goals & budget Contractor assists designers to help maximize value Contractor assists designers to help maximize value Contractor assists with construction means and methods, sustainability, & long term durability Contractor assists with construction means and methods, sustainability, & long term durability Project is kept on track with updated budgets and schedules Project is kept on track with updated budgets and schedules Contractor accountability due to design involvement Contractor accountability due to design involvement Proper planning minimizes surprises and changes Proper planning minimizes surprises and changes


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