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MARKET SPOTLIGHT: SCHOOL CONSTRUCTION


Now underway via “progressive design-build” delivery, Sacramento State University’s new 70,000-sq.-ft. addition to its University Union is part of a $250 million building boom underway on campus. The design-build team of McCarthy Building Companies, Inc. and Dreyfuss + Blackford Architecture is slated to complete the project in fall 2018. (Rendering courtesy Dreyfuss + Blackford Architecture)


School’s new performing arts center, the first time the San Juan Unified School District in Northern CA has employed a progressive design- build delivery method on one of its projects.


To Renovate or Replace? While workforce shortages, costs


escalations and other factors pose unique challenges for contractors in the institutional market, the demand for both new construction and renovation projects isn’t likely to slow down anytime soon due to population growth, changing educational needs and perhaps most significantly, aging facilities with deferred maintenance backlogs. Te Public Policy Institute of California (PPIC) reports that of California’s 10,000-plus public K-12 schools, 70 percent are now more than 25 years old, and by 2022 these schools will need about $117 billion for facility


12 March/April 2018


maintenance, modernization or new construction. (Source: PPIC’s “Bonds for K-12 School Facilities in California”). “What we really see at the K-12


level is many districts with deferred maintenance issues,” Rogers said. “Maintenance and development was stagnant for so many years following (the passage of) Prop 13, and districts had not been able to pass a single bond large enough to remotely address the needs. I think the state bond (Prop 51) passing was a trigger for local commu- nities to go out and say, hey let’s pass local bonds and get as many available matching funds as possible.” Hazardous material issues can be


a key factor on many K-12 renovation projects, due to the presence of asbestos in many decades-old structures. Owners often must weigh the benefits of simply replacing facilities against the often- sizeable renovation costs, Albiani said. “Abatement is an issue, and then having


to bring everything up to current code can also be expensive.”


Changing Delivery Landscape To get the most for their capital


investment and speed projects to market sooner, many institutional owners are increasingly looking to alternative delivery methods in lieu of the traditional design-bid-build method. Design- build, lease-leaseback (which received some clarification through passage of AB 2316 last year), CM at Risk and best value selection rank among the methods owners are choosing to deliver their facilities or select their design and construction teams. “Collaborative design-build delivery


methodology is the biggest change I’ve seen in the industry lately,” Albiani said. Also referred to as “progressive design- build” by the Design Build Institute of America, this method essentially combines best value team with design-


California Constructor


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