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Construction Project Delivery Methods

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Presentation on theme: "Construction Project Delivery Methods"— Presentation transcript:

1 Construction Project Delivery Methods
Calistoga Joint Unified School District

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

3 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 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 Architect’s design The General Contractor/Construction Manager then sub-leases the building and site back to the District to allow them to continue school operations

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

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

8 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.

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

10 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.

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

12 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.

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

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

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


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