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In North Carolina, school districts have a variety of options for constructing <br />schools: <br />• General Statute 143 -128 (a1) includes (1) Separate Prime Bidding, <br />(2) Single Prime Bidding, and (3) Dual Bidding <br />• General Statute 143 -64.31 provides for Construction Management <br />at Risk <br />• General Statute 143 - 135.26(9) provides for alternative contracting <br />methods <br />• Senate Bill 2009 (Senate Law 2006 -232) provides for capital leases <br />of school buildings and school facilities <br />Both the Construction Manager at Risk and the capital lease options allow <br />school districts flexibility in setting actual project cost. Examples of <br />potential benefits associated with these options include: <br />• Contract Negotiation - School Boards and staffs become integral <br />partners within the design build teams that includes the architect <br />and the contractor. This team develops a maximum project cost, in <br />a transparent manner, throughout all areas of the design and <br />development process thereby controlling these costs within the <br />design phase. <br />• Flexibility - While school systems had the statutory authority to <br />lease facilities in the past, with the ratification of Senate Bill 2009 in <br />2006, through public - private partnerships between Boards of <br />Education and contractors, school districts now have opportunities <br />for to enter into "build -to -suit' contracts. School districts have <br />opportunities to identify where the district needs schools, and to <br />provide design, programming and construction specifications to the <br />developer. <br />• Future Maintenance of Facility — In accordance with Senate Bill <br />2009, as part of contract negotiation, responsibility for future facility <br />maintenance /repairs and energy usage guarantees can be <br />assigned to the developer and not the school system. <br />• Ownership — Per Senate Bill 2009, transfer of ownership of the <br />leased property may occur at the end of the lease term or <br />ownership may stay with the developer. <br />• Time Savings — Contract negotiations offered through public - private <br />partnerships can potentially be conducted more quickly than more <br />traditional public methods. While entities may not realize major <br />cost savings in building costs, there may be savings attributed to <br />beating inflation. <br />111103 <br />