Expectations• What your Construction Professional, Architect,
Construction Manager/Contractor expects from you?
• What you can expect from your Construction Professional
• The Law
• Funding Options
• Questions and contact information
What do I do first?
• What does the District have?
• What are the District’s needs?
• How do I accomplish the District’s goals?
The Plan
• Determine Needs
• Determine Capacity
• Contract with Construction Professionals
• Plan Scope
• Design Projects
• Bond Election
Cost Savings Potential Cost Savings Potential through Pre-Constructionthrough Pre-Construction
SAVINGS
95% of Potential Savings
Design Development ConstructionConstruction Documents
Expectations of theConstruction Professional
• What is the chain of command for:– Design– Construction– Who do we call for Crisis Management?
• Curriculum– What is the program?– What is the configuration?– What changes are foreseen for the future?
What can the District expect from the Construction Professional
• Planning – help with the facility plans, advice on sight visits• Coordinating a “good” set of plans with minimum change orders• Accurate construction costs estimates based on actual, historical
costs.• On-going support for the owner (advice, ideas, communication of
upcoming issues/problems before they occur), solutions when unforeseen problems occur.
What can the District expect from the Construction Professional after
the project is complete?
• Warranty coordination
Expectations• Finance
– Bond capacity?– Financing capacity– How much can you afford?– Demographic study– Facility Study
• Special Programs– What is the program– What are the Square Foot requirements of the special
programs?
• Technology– Electrical capacity– Fiber?– Infrastructure– Network– Wireless
Expectations
Campus Principals
• Questions Construction Professional Need answered?– When can we move furniture?– Where can we store furniture?– Where can we stage stored materials?– How should parking flow during construction?– When can we start renovation?– When MUST building be returned to Owner?
The Law
• Bids
• Delivery
• Expectations
• Finance
LEGISLATIVE REMODELING OF LEGISLATIVE REMODELING OF SCHOOL CONSTRUCTION LAWSCHOOL CONSTRUCTION LAW
– 1995 - SB 1 - “ Best value procurement for public school districts” – Flexibility to choose new delivery methods
-2001 - SB 510 – authorized governmental entities to use alternative construction delivery methods
Business Practices
• Legislation did not anticipate ignoring or forfeiting time tested business principles and requirements. Good business practices are not determined by legislation or lawyers but are proven with years of daily applications
Most Common Delivery MethodsMost Common Delivery Methods
• Competitive Sealed Proposals– Project Management
• Construction Management, Agency
• Construction Management, At-Risk
• Design/Build
• Job Order Contracting
Bonding RequirementsBonding Requirements
• Bid Bonds – not required – recommended
• Performance Bonds – Required over $100,000
• Payment Bonds – Required over $25,000
Bid RequirementsBid Requirements• Professional Services do not require Bid
– Project Management– Construction Management, Agency– Architect– Engineer
• Product over $20,000
• Contract over $50,000– Or local policy
• RFQ gives District options
PUBLIC BID OPENINGPUBLIC BID OPENING
• The owner is assured that the bids when computed are the true cost for this date.
• No collusion among bidders.• No bid shopping.• Attracts Minority Contractors• Prime/Trade/Minority Contractors and
Vendors treated equally.• Attracts more bidder participation.
PUBLIC BID OPENINGPUBLIC BID OPENING
• The more bidders the better opportunity for the best price.
• Provides Vehicle for Accountability and Trust.
• Gives Administration & Trustees assurances of the best market price, if there are multiple bidders on each trade
FinanceFinance• What do I do?
– Demographer
– Facility Review• Determine the following:
– Routine Maintenance
– Capital Project
– Bond Issue
– Financial Advisor
Get the Right People – Due diligence
Financing of School FacilitiesFinancing of School Facilities
• Texas School Financing has become increasingly complex
• The district’s goal will be to minimize the impact on the tax rate
• And maximize the available revenue through state assistance
• Financial Advisor Information provided by Steven Adams, Specialized Public Finance
Types of Financing Available to Texas Types of Financing Available to Texas School DistrictsSchool Districts
• Voted Unlimited Tax Bonds
• Facility Lease/Purchase
• Maintenance Tax Notes
• Public Property FinanceContractual Obligations(PPFCO’s)
• Time Warrants
• Delinquent Tax Notes
I&S Tax Rate
M&O Tax Rate
Using M&O Fund BalancesUsing M&O Fund Balanceso Funds from a district’s M&O Fund Balance may be
used to • purchase land• construct new facility, renovate and/or add to existing
facilities• remove asbestos and mold• re-roof, replace a/c and heating equipment, floor covering,
• furnish facilities with chairs, desks, computers• pay fees for architects and other professionals• purchase equipment and other capital items• basically, any legal purpose• cover any building project or capital need – also to
subsidize other financing
Funding Sources
• I&S Bonds
• Instructional Facilities Allotment (IFA)
• Existing Debt Allotment (EDA)
• Maintenance Financing Options
The Plan1. Facilities Study - include capacities
2. Demographic study
3. Financing capacity study– Determine realistic capacity for plans
4. RFQ for Architect– Reference check for Architect– Contract Architect
The Plan
5. Determine construction delivery method– RFQ for Agent– Agent Reference Check– Contract with Agent
6. Begin planning for bond– Determine Scope– Design Projects
ADDITIONAL RESOURCESADDITIONAL RESOURCES Mike Smith
Von [email protected]. 633.0564
Stuart [email protected]
Joe Carlock817.645.8864