Brian P. Whitmore, AIA, NCARB, LEED®AP, Vice President of Design and Associate Principal of BCA Architects, presented today at the Alternative Project Delivery (APD) Summit in Sacramento, California about the value of the Lease-Leaseback method of project delivery in public construction. The presentation was of interest to a wide variety of industry sectors and professionals, from government building owners to construction companies. Presenters shared their project delivery method selection reasoning, their project experiences, and lessons learned.
The focus for this year’s APD Summit was to help owners, engineering professionals, and construction professionals get to the “tipping point” of using alternative project delivery. Those who are already using an alternative delivery method, such as lease-leaseback, design-build and “Lean” construction, were able to learn ways to more confidently implement a wider variety of delivery methods. Everyone has the chance to learn to apply APD methodology to many different types of projects, more effectively and successfully to better meet their project, financial, and organization goals. Brian Whitmore spoke specifically about the architect’s perspective on the Lease-Leaseback model and the successes that BCA Architects has had using this model.
Traditionally, many professionals were using the “Design/Bid/Build” method. The issue with this method is that there is no collaboration or teamwork in design. The owner is relying on architects for cost estimates and ultimately the lowest responsible bid wins, even though it may not be the best quality bid. Additionally, change orders can add 15% – 50% or more to the original project construction costs. The goal of the APD summit was to explore other methods that have been successful, and help eliminate hidden costs for prospective clients.
The Lease-Leaseback Delivery model is a construction project delivery method that allows an owner to select a contractor based on their qualifications, and team members, thereby getting the best of a private sector model while meeting the public sector requirements for procurement of a contract. Generally speaking, this method allows owners to solicit proposals from contractors with criteria that they personally define (i.e. staffing, preconstruction services, local business enterprise, etc.) and then negotiate with the selected contractor to reach a guaranteed maximum price.
“I was thrilled to be able to give the architectural perspective of the lease-leaseback method,” said Brian Whitmore, AIA, NCARB, LEED®AP. “Lease-Leaseback is a method that allows an owner to select a contractor based on trust and there is a strong element of teamwork that develops from this model. The owner knows what they are getting from their contractor with no surprises. You get a guaranteed price and you don’t have to go back to your governing board and ask for money later. Everyone wins – and you can’t ask for more at the end of the day.”