Construction Project Delivery Construction Project Delivery Methods Methods

Calistoga Joint Unified School Calistoga Joint Unified School DistrictDistrict

22

PresentersPresenters

• Scott Gaudineer, Program ExecutiveScott Gaudineer, Program Executive

Caldwell Flores WintersCaldwell Flores Winters

• Kurt Evans, Vice PresidentKurt Evans, Vice President

Lusardi ConstructionLusardi Construction

• Juan Barroso, Vice PresidentJuan Barroso, Vice President

Blach ConstructionBlach Construction

33

Facilities MissionFacilities 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.

44

What is Lease/Leaseback?What is Lease/Leaseback?

Lease/Leaseback refers to a legal contract where:Lease/Leaseback refers to a legal contract where:

A School District leases a building or a whole school site A School District leases a building or a whole school site to a General Contractor or Construction Manager giving to a General Contractor or Construction Manager giving them rights to build out the Architect’s designthem rights to build out the Architect’s design

The General Contractor/Construction Manager then sub-The General Contractor/Construction Manager then sub-leases the building and site back to the District to allow leases the building and site back to the District to allow them to continue school operationsthem to continue school operations

55

Lease/Leaseback DefinitionLease/Leaseback Definition

The L/LB Method is a project delivery method that enables a The L/LB Method is a project delivery method that enables a school district to act like a private entity.school district to act like a private entity.

It is defined and approved under the Education Code It is defined and approved under the Education Code Section 17406(a) and reads: Section 17406(a) and reads:

““The governing board of a school district, without The governing board of a school district, without advertising for bids, may let, for a advertising for bids, may let, for a minimum rental of one minimum rental of one dollar ($1) per year, to any person, firm or corporation any real dollar ($1) per year, to any person, firm or corporation any real property that belongs to the district if the instrument by which property that belongs to the district if the instrument by which such property is let requires the lessee therein to construct on the such property is let requires the lessee therein to construct on the demised premises, or provide for the construction thereon, a demised premises, or provide for the construction thereon, a building or buildings for the use of the school district during the building or buildings for the use of the school district during the term thereof, and provides that title to that building shall vest in term thereof, and provides that title to that building shall vest in the school district at the expiration of that term…”.the school district at the expiration of that term…”.

66

How is Lease-Leaseback Different?How is Lease-Leaseback Different?

• The District can hand select The District can hand select a financially sound, qualified, a financially sound, qualified, reputable Contractorreputable Contractor

• The Contractor is part of the The Contractor is part of the Team from project startTeam from project start

• The Contractor is utilized for The Contractor is utilized for pre-construction services pre-construction services

• One Team, One Direction!One Team, One Direction!

77

Methods of Project DeliveryMethods 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

88

Design/Bid/Build (traditional public bid)Design/Bid/Build (traditional public bid)

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

99

Design/Bid/Build (traditional public bid)Design/Bid/Build (traditional public bid)

Pros:Pros: Competitive bid processCompetitive bid process Defined project prior to bidDefined project prior to bid

Cons:Cons: No design input prior to bid, design is not budget No design input prior to bid, design is not budget

basedbased Largest exposure for change ordersLargest exposure for change orders Adversarial relationshipAdversarial relationship Time and cost overruns Time and cost overruns Stuck with low bidStuck with low bid

1010

Lease/Leaseback Design AssistLease/Leaseback Design Assist

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

1111

Lease/Leaseback Design AssistLease/Leaseback Design Assist

Pros:Pros: The District can choose their Contractor & The District can choose their Contractor &

ArchitectArchitect The Contractor is part of the design processThe Contractor is part of the design process Project is designed to a budgetProject is designed to a budget District, Architect, Contractor work as a Team!District, Architect, Contractor work as a Team!

Cons:Cons: There is not single source responsibilityThere is not single source responsibility

1212

Lease/Leaseback Design BuildLease/Leaseback Design Build

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

1313

Lease/Leaseback Design BuildLease/Leaseback Design Build

Pros:Pros: The District can choose their Contractor & ArchitectThe District can choose their Contractor & Architect The Contractor is part of the design processThe Contractor is part of the design process Project is designed to a budgetProject is designed to a budget There is single source responsibilityThere is single source responsibility District, Architect, Contractor work as a Team!District, Architect, Contractor work as a Team!

Cons:Cons: District has less control over design & qualityDistrict has less control over design & quality Architect works for Contractor, not DistrictArchitect works for Contractor, not District There can be perception of no 3There can be perception of no 3rdrd party party

representationrepresentation

1414

CM Multi-primeCM Multi-prime

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

1515

CM Multi-PrimeCM Multi-Prime

Pros:Pros: The District can choose their CM The District can choose their CM Public competitive bid process is used for subsPublic competitive bid process is used for subs The CM is involved with pre-construction and The CM is involved with pre-construction and

constructionconstruction General Contractor mark-up is savedGeneral Contractor mark-up is saved

Cons:Cons: The District is most at risk (holds all low bid The District is most at risk (holds all low bid

contracts)contracts) Creates the most administrative difficulty Creates the most administrative difficulty

1616

Advantages of Having the GC Involved Early Advantages of Having the GC Involved Early

• Team collaborates to identify Team collaborates to identify District goals & budgetDistrict goals & budget

• Contractor assists designers to Contractor assists designers to help maximize value help maximize value

• Contractor assists with Contractor assists with construction means and methods, construction means and methods, sustainability, & long term sustainability, & long term durabilitydurability

• Project is kept on track with Project is kept on track with updated budgets and schedulesupdated budgets and schedules

• Contractor accountability due to Contractor accountability due to design involvement design involvement

• Proper planning minimizes Proper planning minimizes surprises and changessurprises and changes