1. FAC11 - CONSTRUCTION 101: WHERE THE RUBBER MEETS THE ROAD APRIL 3-6, 2013, LONG BEACH, CA These materials have been prepared by the CASBO Facilities Professional Council (or CASBO Associate Member). They have not been reviewed by State CASBO for approval, so therefore are not an official statement of CASBO.

2. Outline Project Team Members & Roles Project Delivery Methods Construction Agreements Pre-Construction Services Bid Process & Contractor Selection Construction Terminology Project Phasing Avoiding Change Orders/Claims Project Closeout Questions 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

3. Presider: David Miranda, Assistant Director, Facilities, Planning & Operations, Tustin USD Speaker: Brian Smith, Partner, Bowie, Arneson, Wiles & Giannone Speaker: Layne Arthur, Vice President, Balfour Beatty Construction Speaker: Char Yarnall, Principal, PJHM Architects Presenters 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

4. District Staff Architect Legal Counsel Contractor Construction/Project Manager Inspectors Key Project Team Members & Roles 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

5. District Staff Establishes expectations for project and team performance Contracts for construction inspectors and testing services Monitors progress of project, guides and controls other team members Facilitates governing board approvals of changes, payments to contractors, etc. Project Team Members & Roles 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

6. Architect Is in “general responsible charge” of the construction, “observes the construction for general conformance to design requirements, and provides status reports to the DSA Assists school district in preparing bidding and “front end” construction documents Reviews and advises school district as to contractor claims, stop payment notices, and other legal issues Assists school district with resolution of claims and litigation Project Team Members & Roles 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

7. Legal counsel Assists school district with: –Legal requirements applicable to selected construction delivery method –Preparing bidding and “front end” construction documents –Resolution of claims litigation For non-bid projects, assists school district in preparing pre- construction services agreements and construction agreements Reviews and advises school district as to contractor claims, stop payment notices, and other legal issues Project Team Members & Roles 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

8. Contractor Responsible for constructing the project in accordance with all design and contract requirements Prepares schedules of values, and submits pay applications in conformance with the schedule of values Contracts with subcontractors, and schedules and coordinates all subcontracted work Primarily responsible for compliance with prevailing wage and other labor laws Project Team Members & Roles 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

9. Construction/ Project Manager School district’s representative for purposes of construction, including providing expertise that district staff may not have Monitors construction and compliance with contract requirements, and attempts to facilitate early identification and resolution of issues Construction manager on multi-prime project takes on scheduling, coordination, and similar duties that otherwise would be performed by a general contractor Project Team Members & Roles 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

10. Inspectors “Project inspector” or “inspector of record” must be certified by DSA – provides regular reports on project to DSA Inspects construction to confirm conformance with DSA-approved plans code and requirements Reports deviations from plans and specifications Maintains set of project records (DSA-approved plans, change orders, submittals, inspection reports, etc.) Project Team Members & Roles 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

11. Project Delivery Methods Available Construction Delivery Method Design-Bid-Build (Public Contract Code Section 20111 et seq.) - Applies to public projects costing $15,000 or more Design-Build (Education Code Section 17250.10 et seq.) -Applies when cost of design and construction of school facility combined will exceed $2.5 million Lease-Leaseback (Education Code Section 17400 et seq.) - Can use for projects of any size/cost 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

12. Project Delivery Methods Design-Bid-Build (“DBB”) Traditional and historically most-commonly used construction delivery method District hires an Architect to design the project and obtain DSA approval District advertises for competitive bids as required by Public Contrast Code §20111 District awards contract to the responsive and responsible bidder with the lowest bid, who then builds the facility District can award multiple “prime” contracts for various portions of the work, using a construction manager to manage the work and the contracts, or can award a single prime contract for all of the work to a general contractor 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

13. Project Delivery Methods Design-Bid-Build (“DBB”) Advantages Intended to help protect against misuse of public funds, favoritism, fraud and corruption in the contracting process Provides all qualified contractors an opportunity to bid, thereby helping to stimulate competition Can result in lower construction cost Disadvantages Low bidder may have less than stellar qualifications and experience Low bidder may use change-order process and/or claims process in an attempt to increase its compensation 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

14. Project Delivery Methods Design-Build (“DB”) District contracts with single entity that completes the design, builds the project, and turns completed projects over to the district In order to use design-build on a project: Governing board must review design-build guidelines prepared by CDE, evaluate both DBB and DB in a public meeting, determine that use of DB is in school district’s best interest, make written findings, and adopt a resolution approving use of DB for the project. District prepares a request for qualifications to pre-qualify DB entities District prepares a request for proposals, specifying, among other things, the method or rating scheme that will be used to select the DB entity Governing Board may select DB entity based on lowest bid or on best value, but must issue a written decision supporting its determination 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

15. Project Delivery Methods Design-Build(“DB”) Advantages Can result in shifting responsibility and liability for design and unknown site conditions from school district to DB entity Can result in collaborative design and construction process, thereby reducing cost of project Disadvantages Will need to be comprehensive in describing project attributes because, if omit will be an extra cost Numerous and relatively complex procedural requirements 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

16. Project Delivery Methods Lease-Leaseback (“LLB”) Being used more frequently; used almost exclusively by some school districts District obtains DSA approval of plans, then leases project site to contractor Contractor constructs the facility while leasing the project site and facility back to the school district At end of lease term, after school district has paid all required lease payments, the school district owns the facility 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

17. Project Delivery Methods Lease-Leaseback(“LLB”) Advantages Competitive bidding not required - can contract with the contractor having known qualifications and experience Can bring contractor on board during design phase, which can result in collaborative design and construction process Collaborative process can result in more accurate pricing and reduce the potential for increased costs due to change orders Disadvantages Governing board may get pressure from members of the public not to approve contracts without competitive bidding Additional school district staff or consultant time may be needed to determine if the costs of the project are appropriate and reasonable 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

18. Construction Agreements Design-Bid-Build Agreement Form incorporates other documents -Notice Inviting Bids -Instructions to Bidders -General Provisions -Special Provisions -Plans and specifications -Other Design-Build Usually a modification of DBB documents, but without bidding- related aspects Lease-Leaseback Site Lease, Leaseback Agreement, and Construction Services Agreement 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

19. Construction Agreement Considerations Keep current with changes in laws and court decisions Keep current with what’s happening in the field Thoroughly describe things that are important to the school district, such as scope of work, time for completion, insurance requirements, etc. Eliminate ambiguities that can serve as the basis for claims 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

20. Pre-Construction Services Benefits: Manage Design to District Budget Build Master Project Schedule Contractor Outreach – LOCAL Preparation of Bid Documents 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

21. Bid Process and Contractor Selection Prequalification of Bidders? Pre-bid Conferences Review and Recommend Bid Addenda Conduct Bid Review Bids and Recommend Awards 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

22. Construction Terminology BIM & FIM SD / DD / CD Phases Constructability Document Control Project Closeout vs. Warranty 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

24. Project Phasing Develop Master Schedule Based on District Needs Does it Make Sense to Phase the Project? Single Bid or Phased ? 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

25. Change Orders Complexities of Construction and/or Design Requirements Low Bid Contractor: “ Luck of the Draw” Contractor Initiated Change Orders The Economy and the Bid Environment Site Conditions & Unforeseen Conditions 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

26. Avoiding Change Orders/Claims Avoiding Low Bid Contractors and “ Luck of the Draw” Approach Enhance the Chances to Avoid Construction Claims Increase the Chances of a Cooperative Construction Team Increase the chances to Minimize Change Orders Provide a More Predictable Construction Phase 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

27. Avoiding Change Orders/Claims Constructability Reviews Regularity of Plan Reviews District Standards Re-Use of Prior Plans and Details Change Order Managed Via Contingencies and Allowances Alternative Project Delivery 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO

28. Project Completion 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Substantial Completion Beneficial Occupancy Notice of Completion Final Completion

29. Project Closeout 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Addressing Claims - Contractor Claims - District Claims - Stop Notice Project Records Managing the Punch List

30. DSA Closeout 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO What is DSA Closeout? Liability Of District & Board Members Impact to future projects if “Closed without Certification” Lightning Rod Topic for DSA Closeout Starts on First Day of Construction Who is Responsible for Closeout: Architect District Contractor Inspector & Testing Labs

31. Presider: David Miranda, Assistant Director, Facilities, Planning & Operations, Tustin USD Speaker: Brian Smith, Partner, Bowie, Arneson, Wiles & Giannone Speaker: Layne Arthur, Vice President, Balfour Beatty Construction Speaker: Char Yarnall, Principal, PJHM Architects Questions 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO