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School Construction 101

School Construction 101. 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. School Construction 101.

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School Construction 101

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  1. School Construction 101

  2. 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 School Construction 101

  3. What do I do first? • What does the District have? • What are the District’s needs? • How do I accomplish the District’s goals? School Construction 101

  4. The Plan School Construction 101 Determine Needs Determine Capacity Contract with Construction Professionals Plan Scope Design Projects Bond Election

  5. Cost Savings Potential through Pre-Construction 95% of Potential Savings SAVINGS Design Development Construction Documents Construction School Construction 101

  6. 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? School Construction 101

  7. 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

  8. What can the District expect from the Construction Professional after the project is complete? • Warranty coordination School Construction 101

  9. 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? School Construction 101

  10. Expectations • Technology • Electrical capacity • Fiber? • Infrastructure • Network • Wireless School Construction 101

  11. 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? School Construction 101

  12. The Law • Bids • Delivery • Expectations • Finance School Construction 101

  13. 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 School Construction 101

  14. Business Practices School Construction 101 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

  15. Most Common Delivery Methods • Competitive Sealed Proposals • Project Management • Construction Management, Agency • Construction Management, At-Risk • Design/Build • Job Order Contracting School Construction 101

  16. Bonding Requirements School Construction 101 • Bid Bonds • not required – recommended • Performance Bonds – Required over $100,000 • Payment Bonds • Required over $25,000

  17. 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 School Construction 101

  18. 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. School Construction 101

  19. 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 School Construction 101

  20. 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 School Construction 101

  21. Financing 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 School Construction 101

  22. Types of Financing Available to Texas School Districts • Voted Unlimited Tax Bonds • Facility Lease/Purchase • Maintenance Tax Notes • Public Property FinanceContractual Obligations(PPFCO’s) • Time Warrants • Delinquent Tax Notes School Construction 101

  23. Using M&O Fund Balances • 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 School Construction 101

  24. Funding Sources • I&S Bonds • Instructional Facilities Allotment (IFA) • Existing Debt Allotment (EDA) • Maintenance Financing Options School Construction 101

  25. The Plan School Construction 101 • 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

  26. The Plan School Construction 101 • Determine construction delivery method • RFQ for Agent • Agent Reference Check • Contract with Agent • Begin planning for bond • Determine Scope • Design Projects

  27. ADDITIONAL RESOURCES Mike Smith mike@edsas.com 830.214.0742 Von Gallagher Von@gallaghertx.com 972. 633.0564 Stuart Verdon sverdon@tcpn.org 713.459.6009 Joe Carlock 817.645.8864 School Construction 101

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