The current hard-bid method of bidding and building projects using the lowest responsive bid has become problematic for many public works projects. Historically, lowest-bid projects result in non-cooperation, poor service, poor quality, a high change order rate, and prolonged construction delays.
Lease / Lease Back allows school districts to select a construction contractor based on bid amount while factoring in past performance, merit, and financial stability.
Once a contractor and architect have been selected, the team agrees upon a guaranteed maximum price (GMP) and a lease is extended to the District for the duration of the project. Upon project completion, the lease terminates and the District assumes full control of the property. Many safeguards exists to protect the District including performance bonds and liquidated damages provisions.
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