The bond project team continually evaluates the effect of market conditions on facilities improvement bond projects and engages school staff and District leadership on the best path forward for the bond program. Those efforts have led to a strategic shift in contracting methods and scheduling.
The unprecedented amount of construction activity in the region is presenting the following market challenges:
- Too much bid activity for the available contractors and subcontractors
- Shortage of qualified construction personnel
- Rapidly increasing costs due to supply and demand
- Competing bond work in nearby districts
Contracting Methods
Oregon Revised Statutes recognize the traditional open public bid process as the default method of selecting a general contractor. On November 1, 2018, the bond project team recommended, and the Board approved, an alternate method of contracting known as Construction Manager/General Contractor (CM/GC).
The CM/GC contracting method utilizes an integrated team approach in the planning, design, and construction of a project in order to control time and cost and to assure quality for the project owner. The team consists of the owner (in this case, the District), a project management firm, an architecture firm, and the CM/GC. The selection of the successful CM/GC is based on multiple factors including qualifications and experience, rather than price alone.
Last November, Lincoln and Hoover were considered appropriate candidates for the open public bid (hard bid) process rather than CM/GC. The bond project team has now determined that the best way to mitigate the market conditions noted above is to use a qualifications-based selection process (CM/GC) for Lincoln and Hoover.
The contractor selection process will begin with the issuance of a Request for Proposal on Monday, September 30, 2019. Proposals will be ranked by the selection committee and interviews will follow. The Board will be asked to take action with a vote of approval when Guaranteed Maximum Prices (GMP) are developed for the projects in the spring and fall of 2020.
Project Schedule
The bond project team is constantly reviewing the schedule and making updates to reflect the optimum design process, the best timing for the bid market, and the least impact on school operations.
Rather than starting and completing the construction of Lincoln and Hoover schools at the same time, Lincoln construction will begin in late spring 2020 and Hoover construction will begin in summer 2020. A revised bond timeline showing all projects will be available on October 1.
The new schedule moves the upcoming projects to more favorable bid timing and better accommodates the District’s capacity for an orderly process for opening the new schools. We are targeting building completion for Lincoln in the fall of the 2021-22 school year. Hoover is targeted for building completion during winter 2021-22, with grounds and site work targeted for completion by the fall of 2022. Occupancy dates will be determined later in the project. Project teams for each school are continuing to work through the design process and will be submitting requests for building permits at the end of 2019.