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Target Cost Experiment in Public School Construction: Will C. Wood High School Case Study

This document outlines the implementation of a Target Cost Experiment for the construction of the Science Building at Will C. Wood High School, authorized under California Education Code 17406. It delves into the advantages of the “Lease-Leaseback” procurement method, which allows for greater flexibility in public school construction by mimicking private-sector negotiation practices. The report discusses the collaboration between owners, contractors, and architects under integrated project delivery, emphasizing the importance of design alternatives, cost implications, risk identification, and transparent decision-making throughout the project.

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Target Cost Experiment in Public School Construction: Will C. Wood High School Case Study

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  1. Capital Program Management’s Target Cost Experiment on the Will C. Wood High School Science Building Michael Flores Jay Davison

  2. California Education Code 17406 • Authorizes “Lease-Leaseback” procurement for public school construction • Effectively takes projects out of public sector contracting restrictions • Contracts resemble a private sector negotiated GMP contract

  3. Will C. Wood HS site plan

  4. Traditional California public sector model Owner Contractor Architect

  5. Owner Contractor Architect

  6. Integrated Agreement as modified for California public sector Owner Contractor Architect Lean exhibit

  7. Identify Design Alternatives & Understand Cost Implications Before Developing Them • Cost Impact Report or “C I R”

  8. Design-Build MEP “Vacaville U.S.D. intends to select qualified Design-Build subcontractor’s for Mechanical, Electrical and Plumbing work to work as part of an Integrated Project Delivery Team (“IPD Team”) with the Architect, Program Manager, Lease/Lease-Back Entity and the District throughout the design & construction process. All team members will be expected to collaborate and openly share information for the benefit of the Project.”

  9. Design-Build MEP Key questions for Design-Build Subcontractors: • How soon can the D/B Contractor provide GMP? • What is the cost premium for GMP? • How can that premium be reduced? • How do we identify risk? Can it be shifted? • Who will make commitment to carry the identified risk?

  10. System evaluation exercise Structural System Estimates

  11. Target cost estimate sequence • WCW science building estimate sequence

  12. Lessons Learned • Scrutinize design-build sub estimates for: • Buried contingency • Front-loaded fees • More training of mid-level team members • Importance of highly reliable information • Transparent decision-making • Importance of communication protocols

  13. Target cost Cost of Work Scope of Work Design Discipline Transparency

  14. Questions?

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