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Alternative Delivery Methods: LeaseLeaseback and Integrated Project Delivery

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Title: Alternative Delivery Methods: LeaseLeaseback and Integrated Project Delivery


1
Alternative Delivery Methods Lease-Leaseback
and Integrated Project Delivery
  • Society for Marketing Professional Services
    (SMPS)
  • The Sacramento Grand Ballroom
  • May 26, 2009
  • Mark Rosson
  • Michael Flores
  • Capital Program Management, Inc.

2
Agenda Key Points
  • Current Delivery Method Options
  • What is Lease-Leaseback?
  • What is Integrated Project Delivery or IPD?
  • The value / benefits to Owners, and Design
    Construction Teams of these delivery methods?
  • Current Market Trends
  • Business Development Opportunities

3
Current Delivery Method Options
  • Public
  • Private
  • Design-Bid-Build
  • Design-Build
  • Agency Construction Management (CM)
  • CM At Risk
  • CM Multiple Prime
  • Lease-Leaseback
  • Negotiated GMP
  • Select List Bid
  • Design-Build
  • Click Here For
  • Delivery Method Schedule

4
What is Lease-Leaseback?
  • Lease-Leaseback is a project delivery method
    authorized by Ed Code 17406 which allows a school
    district to select its entire construction team
    at the start of design
  • Qualifications-Based Selection of Contractor (LLB
    Entity)
  • Separate selection of Architect
  • Contractually -- requires 3 contracts with the
    LLB Entity
  • Preconstruction Services Contract
  • Site Lease Agreement (VUSD for 10.00 to the
    District) upon DSA approval
  • Facilities Lease Agreement upon DSA approval

5
CONTRACTS
6
What is Integrated Project Delivery (IPD)? How
does it Relate to Lease-Leaseback?
  • Integrated Project Delivery is a term that has
    emerged from the Lean Project Management
    methodology that can only be fully implemented
    through delivery methods like Lease-Leaseback (or
    other non Design-Bid-Build methods)
  • Relational Contracting
  • Requires an involved owner
  • Three party agreement

7
The History of Lean
  • In the 1990s, Toyota revolutionized the auto
    industry with Lean Production Management, a novel
    approach to getting the right things to the right
    place at the right time in the right quantity,
    all with the intent of minimizing waste and
    maximizing operational flexibility.

8
Techniques and Tools of Lean or IPD
  • Developed by Lean Construction Institute (LCI)
  • Reliable Promises
  • Pull Scheduling aka Reverse Phase Schedule
  • Last Planner and the Weekly Work Plan
  • Target Costing
  • BIM Building Information Modeling

9
Reverse-Phase Scheduling in construction trailer
10
BIM
11
BIM
12
Whats So Special About IPD?
  • The value / benefits to Owners, and Design
    Construction Teams.
  • Change your mindset.


13
Change Your Relationship
14
Open Kimono
15
No Plan-Hoarding Allowed
16
Collaboration is the Key
  • All parties agree to meet weekly starting with
    conceptual design.
  • All parties send the representative who will be
    consistently there throughout the project.
  • All parties agree to adhere to the Lean method of
    meetings and communication.
  • Contractor will include Project Superintendent.
  • IPD Team and Core Team responsibilities.

17
Current Market Trends
  • According to one local builder, over half the
    jobs they are proposing are being done with an
    IPD element.
  • There is both existing and anticipated
    legislation on the horizon that will give other
    Public Entities more flexibility in delivery
    methods like L-LB is used for schools.
  • Click here for P2SL Report
  • Many developers are offering financing as part of
    the Lease-Leaseback contract, so theres little
    or no out-of-pocket expense for an owner. In the
    public sector, this is known as
    Public-Private-Partnerships (P3).

18
Business Development Opportunities
  • 90 of local school bond measures passed in
    November, 2009.
  • Several school districts are starting Master Plan
    exercises this year.
  • Additional local bonds will be on November, 2010
    ballots.

19
Resource Information for Implementing IPD
  • 2) P2SL
  • University of California, Berkeley
  • Dr. Glenn Ballard
  • Http//p2sl.berkeley.edu/
  • 4) Capital Program Management, Inc.
  • 2150 Capitol Avenue
  • Sacramento, CA 95816
  • Michael Flores
  • www.capitalpm.com
  • 1) Lean Construction Institute
  • Box 1003
  • Ketchum, ID 83340
  • Gregory Howell, P.E.
  • www.leanconstruction.org
  • 3) McDonough Holland Allen PC
  • 500 Capitol Mall, 18th Floor
  • Sacramento, CA 95814
  • Will Lichtig
  • www.mhalaw.com
  • Books, Etc.
  • The Toyota Way by Jeffrey Liker
  • Lean Thinking by Womack/Jones
  • What is Lean Construction by Gregory A.
    Howell Study Paper

20
Special Thanks to our Host,DPR Construction, Inc.
21
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