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5/12/2017 1 1 Leigh Sata, Santa Rosa Junior College Kelle Lynch McMahon, Peralta Community College Mark Kelley, Dannis Woliver Kelley Deidree Sakai, Dannis Woliver Kelley 2
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Leigh Sata, Santa Rosa Junior College Kelle Lynch McMahon, Peralta Community
College Mark Kelley, Dannis Woliver Kelley Deidree Sakai, Dannis Woliver Kelley
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Publicly Bid:◦ Design-Bid-Build◦ Multiple-Prime Contracting
Negotiated, Non-Bid:◦ Lease-Leaseback*◦ Design-Build
Hybrid:◦ Construction Management At Risk◦ Integrated Project Delivery (IPD)
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=Owner Team
District
Architect General Contractor
Subcontractors
ConstructionManager (Opt.)
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Advantages Disadvantages
Advantages DisadvantagesFamiliar and established way of delivering a project.
No early contractor involvement.
A/E of record works for District and represents owner.
Potential conflicts between general contractor and architect after construction begins.
Suitable for competitive bidding w/ lowest price initially.
Higher probability of change orders, including deductive ones.
Could be adversarial.
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Legal perspective Industry perspective District perspective
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=Owner Team
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District
ConstructionManagerArchitect Trade Contractors
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Disadvantages Construction
Advantages DisadvantagesTrade contractors are procured through competitive lowest responsible bidders.
Potential conflicts between multiple contractors and architect after construction begins.
Avoids general contractor mark-up. Bids over budget are challenging to adjust to obtain cost reductions.
Competitive selection (not low bid) for construction manager to lead project.
Potential overlaps or gaps in scopes of work.
Can rebid portions of the work, rather than the whole scope, if needed.
Higher risks due to multiple contractors, particularly delay/interference claims.
Difficult to coordinate and control schedule.
Additional work and risk for District: more scopes of bid protests; contract admin.
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Legal perspective Industry perspective District perspective
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=Owner Team
District
ArchitectLLB Builder
Trade Contractors
ConstructionManager (Opt.)
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Architect BuilderOwner
Owner lease to Builder
Owner makes tenant improvement payments
Lease expires (grey area)
Construction completion and lease payments begin
Construction startTime
Design
Input From LLB EntityConstruction
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K-12 (Ed. Code 17406):◦ 17406. (a) (1) Notwithstanding Section 17417, the
governing board of a school district, without advertising for bids, may let, for a minimum rental of one dollar ($1) a year…
CCDs (Ed. Code 81335):◦ 81335. The governing board of a community
college district may let, at a minimum rental of one dollar ($1) a year…
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Authorized by Education Code § 81335. Provides Districts with flexibility and benefits that may not be possible with some of the other delivery methods.
LLB allows an owner to select a GC during the design/preconstruction phase through a “defined” qualification and fee based selection process.
All requirements for construction and/or public works are still applicable; i.e. prevailing wage, bonds, insurance, indemnification, Field Act compliance (seismic and accessibility), and skilled workforce requirements.
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CM
Advantages DisadvantagesA District may use Lease-Leaseback to finance the project.
Uncertainty (post- Davis v. Fresno USD environment); risk-averse CCDs still avoid.
The District does not have to award contract to lowest bidder.
Steeper District/public learning curve than bid-based contracts.
Generally less adversarial, fewer change orders, less litigation.
Thought to be more expensive up front than bid-based contracts.
The District may participate in selecting Developer-Contractor, and all the trade contractors and suppliers.
Conflict of interest still a major issue (not resolved by the new K-12 statute).
Solicitation of savings/cost can create costs savings.
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Legal perspective Industry perspective District perspective
=Owner Team
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DistrictProgram Architect
Design-Build Entity(Architect + Contractor)
Trade contractors
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Advantages DisadvantagesBuilder and architect are on the same team.
Builder and architect are on the same team.
Multiple packages may provide greater opportunity for participation by local trade contractors.
No common standards for methodology.
Earlier knowledge of construction costs; guaranteed during design of project.
Steeper District/public learning curve than bid-based contracting.
Single point of responsibility:Design risk shift to the Design-Build Entity.
Less District control.
“Turn-key” delivery, less day-to-day District involvement.
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Legal perspective Industry perspective District perspective
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=Owner Team
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ConstructionManagerArchitect Trade Contractors
District
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ConstructionManagerArchitect Trade Contractors
=Owner Team
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District
SUB
DesignAdvantages Disadvantages
Advantages DisadvantagesPotential for faster delivery systems.
No common standards for this methodology; confirm appropriate procurement.
Mitigate material shortages and price escalation issues vs. multiple-prime contracting.
Steeper District/public learningcurve than bid or statutory contracting methods.
May bring construction input into design phase – if properlyprocured.
Confirm legal authorization to use this method; risk-averse CCDs avoid.
May facilitate value engineering.
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Legal perspective Industry perspective District perspective
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SUB
DesignAdvantages Disadvantages
Advantages DisadvantagesPotential for faster delivery systems.
No common standards for methodology in CA CCD projects.
May be the wave of the future for cooperative project delivery.
Very steep learning curve for all parties to delivery method.
Fewer disputes, resolved earlier. Confirm legal authorization to use this method.
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Legal perspective Industry perspective District perspective
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• Design-Bid-Build
• Multi-Prime Contracting
• Lease-Leaseback• Design-Build• CM at-Risk• Integrated Project
Delivery
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Q & A
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Leigh Sata, Santa Rosa Junior College◦ [email protected]
Kelle Lynch McMahon, Peralta Community College◦ [email protected]
Deidree Sakai, Dannis Woliver Kelley◦ [email protected]
Mark Kelley, Dannis Woliver Kelley◦ [email protected]
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