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

mike@edsas.com830.214.0742

Von GallagherVon@gallaghertx.com972. 633.0564

Stuart Verdonsverdon@tcpn.org713.459.6009

Joe Carlock817.645.8864