The last Biennium Budget Bill included grants for the expansion of career technical opportunities. Last fall, the Governor’s office announced that of the 59 applicants for the Career Technical Construction Program, 35 were awarded almost $200 million. This funding will be used to build and expand classrooms and training centers at JVSDs, compacts, and comprehensives across Ohio in various programs like engineering, manufacturing, health sciences, construction, and more.
There are various construction delivery methods available to recipients of these funds who choose to use the for construction projects. The main three delivery methods utilized by school districts are summarized below.
1. Design-Bid-Build (“DBB”). This is the more traditional method of construction delivery. With this method, the owner hires an architect to develop the plans, specifications and estimates of cost. This requires a qualifications-based selection process. The architect then assists the owner with bidding the various bid packages for the contract either through a single general contract or multiple contractors. This method is typically used for smaller projects such as minor renovations, pre-fabricated buildings, athletic facility upgrades, etc., but can be utilized for larger projects as well. The Owner would contract with the architect and each prime contractor coming onto the project.
2. Design-Build (“DB”). This is often confused with DBB even though it is an entirely different delivery method. Through this method, the architect is responsible for both the design and the construction of the project. The owner has a single contract with the design-build firm. The design-build firm is selected according to a two-stage selection process that first considers qualifications then technical and price components for the delivery of the project. Prior to selecting a design-build firm, the Owner must hire a criteria architect to develop the design criteria for the project. The criteria architect is hired using a qualifications-based selection process in the same manner as hiring an architect or engineer for professional design services. Design-build is considered a faster delivery method, however, this is because there is not a lot of owner input on the actual design itself, only the criteria for the design, i.e., what components and functions the finished build must have. This method is good for projects such as an additional wing of traditional classrooms that do not have unique design components.
3. Construction Manager at-Risk (“CMR”). This is currently the most popular delivery method for new school construction, major renovations and additions projects, and projects where the owner wants to have a lot of input on the design and functional components of the build. With CMR, the owner hires an architect for the necessary professional design services. The Owner goes through a two-stage selection process first considering qualifications, then technical and pricing proposals. The Owner combines the scores across both stages and awards a contract to the winner. The CMR serves as both the construction manager and the builder. The Owner has a single contract with the CMR and the CMR is responsible for bringing in all materials, labor, and equipment to the Project.
Districts undertaking large or complex projects may consider hiring an owner’s representative. An owner’s representative is a professional agent who advises the owner and supervises the project to make sure it stays on track. While it is true that the architect and contractor will have contractual obligations to the owner, they are not “in their corner” so to speak and may end up in an adversarial position if a dispute about the work arises. The owner’s rep in turn is the agent of the owner and their focus is on asserting the owner’s interests on the project. The Ennis Britton Consulting Group (“EBCG”) provides owner’s representative services. Barb and Steve Shergalis of EBCG are former architects very experienced in public school construction projects.
Each of these delivery methods has their own unique requirements for properly soliciting the contracts to get the Project off the ground. It is therefore important to make sure that you are taking all the proper steps to ensure you have a valid contract in place that does not expose the Board of Education to unnecessary liability risks. Please do not hesitate to contact a member of the Ennis Britton Construction Practice Group with questions about the right delivery method for your project.