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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: January 21, 2025 <br /> Action Agenda <br /> Item No. 6-b <br /> SUBJECT: Project Management Options for School Construction <br /> DEPARTMENT: County Manager <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Project Management Structures Pros and Kirk Vaughn, (919) 245-2153 <br /> Cons <br /> PURPOSE: To have an initial discussion on how to approach project management for school <br /> construction projects and to provide direction to staff. <br /> BACKGROUND: Over the past two years, the County has developed a plan to fund the <br /> construction of new and renovated school facilities through the passage of the bond referendum. <br /> During this planning period, the School Capital Needs Workgroup and Board members have <br /> identified the importance of project management in successfully completing these projects. <br /> However, the exact model of project management for the upcoming construction projects has yet <br /> to be decided by the County and the Districts. <br /> Successful project management will achieve several goals for the County and the Districts in <br /> implementing the bond plan. First, it will ensure that projects are achieved on time, in budget and <br /> in scope. Second, the County has identified several values in the Major Project Planning <br /> Addendum that should be prioritized. Project management staff would ensure that those values <br /> are carried through during the design and construction process into the final builds. Those two <br /> components make project management important regardless of the delivery method chosen. For <br /> example, in the Construction Manager at Risk delivery method, the construction manager <br /> assumes more of the risk in maintaining the budget and scope of the project, rather than the <br /> owner. Project management would still ensure that the building meets the district's long-term <br /> needs and the County's priorities. <br /> Under State Statute, the school districts are responsible for school construction, and as such are <br /> responsible for management, design, and construction oversight. Under the current model, the <br /> districts hire either staff or a firm to provide project management, both for the annual maintenance <br /> of existing facilities and for new construction. The school districts make all contracts, decisions <br /> and payments regarding school construction and then bill the County for reimbursement. The <br /> districts do not construct new facilities very frequently. The most recent new school was the major <br /> renovation of Chapel Hill High School from the 2016 bond. In addition, both districts had issues <br /> spending down their maintenance funding during the Covid-19 Pandemic. The County <br />