School Construction 101

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School Construction 101
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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

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What do I do first?

• What does the District have?
• What are the Districts needs?
• How do I accomplish the Districts goals?

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The Plan

• Determine Needs
• Determine Capacity
• Contract with Construction Professionals
• Plan Scope
• Design Projects
• Bond Election

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Cost Savings Potential through Pre-Construction
95 of Potential Savings
SAVINGS
Design Development
Construction
Construction Documents
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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?

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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.

• School Construction 101

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What can the District expect from the
Construction Professional after the project is
complete?

• Warranty coordination

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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?

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Expectations

• Technology
• Electrical capacity
• Fiber?
• Infrastructure
• Network
• Wireless

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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?

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The Law

• Bids
• Delivery
• Expectations
• Finance

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LEGISLATIVE REMODELING OF SCHOOL 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

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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

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Most Common Delivery Methods

• Competitive Sealed Proposals
• Project Management
• Construction Management, Agency
• Construction Management, At-Risk
• Design/Build
• Job Order Contracting

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Bonding Requirements

• Bid Bonds
• not required recommended
• Performance Bonds
• Required over 100,000
• Payment Bonds
• Required over 25,000

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Bid 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

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PUBLIC 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.

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PUBLIC 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

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Finance

• What do I do?
• Demographer
• Facility Review
• Determine the following
• Routine Maintenance
• Capital Project
• Bond Issue
• Financial Advisor
• Get the Right People Due diligence

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Financing of School Facilities

• Texas School Financing has become increasingly
  complex
• The districts 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

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Types of Financing Available to Texas School
Districts

• Voted Unlimited Tax Bonds
• Facility Lease/Purchase
• Maintenance Tax Notes
• Public Property FinanceContractual
  Obligations(PPFCOs)
• Time Warrants
• Delinquent Tax Notes

IS Tax Rate

MO Tax Rate
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Using MO Fund Balances

• Funds from a districts MO 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

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Funding Sources

• IS Bonds
• Instructional Facilities Allotment (IFA)
• Existing Debt Allotment (EDA)
• Maintenance Financing Options

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The Plan

• Facilities Study - include capacities
• 2. Demographic study
• 3. Financing capacity study
• Determine realistic capacity for plans
• RFQ for Architect
• Reference check for Architect
• Contract Architect

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The Plan

• Determine construction delivery method
• RFQ for Agent
• Agent Reference Check
• Contract with Agent
• Begin planning for bond
• Determine Scope
• Design Projects

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ADDITIONAL RESOURCES

• Mike Smith
• mike_at_edsas.com
• 830.214.0742
• Von Gallagher
• Von_at_gallaghertx.com
• 972. 633.0564
• Stuart Verdon
• sverdon_at_tcpn.org
• 713.459.6009
• Joe Carlock
• 817.645.8864

School Construction 101