Every successful school construction project begins with a strong conceptual foundation. Understanding the nuts and bolts of architect requirements, independent supervision, competitive bidding, and construction delivery methods will help school officials build that foundation and navigate their project with confidence.
Use of Architect/Engineer
Regardless of the selected delivery method, under both the School Building Construction Act (SBCA) and Section 2011 of the Occupational Code, a public school must retain an architect or engineer (A/E) for any school building construction project with a cost exceeding $15,000. The A/E is primarily responsible for developing the plans and specifications, which describe project requirements in detail and are used to select the contractor(s) performing the work. The A/E must also provide cost estimates and review the materials used and supervise completed phases of construction.
Independent Supervisor
Section 2 of the SBCA requires the person supervising construction to be responsible for construction of the school building in conformance with the approved plans and specifications. The Michigan Attorney General has opined that an entity cannot both construct and supervise a project because it would create an inevitable conflict of interest (i.e., the entity is evaluating its own performance).
Bidding Requirements
Michigan law generally requires public schools to competitively bid all labor and materials for construction projects pursuant to Revised School Code Section 1267, where the labor and materials exceed an annually adjusted statutory threshold (currently $31,321). The services of professional consultants, like an A/E, are generally not subject to competitive bidding requirements, absent any board policies or federal grant terms and conditions to the contrary.
Construction Delivery Methods
One of the first foundational decisions school officials must make related to a school construction project is determining which construction delivery method to use. The four most common construction delivery methods are: (1) General Contractor, (2) Construction Manager as Adviser (CMa), (3) Construction Manager as Constructor (CMc), and (4) Design-Build.
- General Contractor
Under a General Contractor method, a school separately contracts with an A/E for design and a general contractor for construction. This delivery method is often used for smaller projects and does not utilize a construction manager.
Under the General Contractor approach, after the A/E prepares the plans and specifications, the school will award a single bid to a general contractor for the full scope of the project. The general contractor may perform the work itself or subcontract some or all of the work to individual trade contractors. In either case, aside from the A/E contract, the school’s contractual relationship is solely with the general contractor, who is ultimately responsible for all project construction.
- Construction Manager as Adviser
CMa is the most common delivery method used by Michigan public schools for large, complex construction projects. Under the CMa method, a school enters into separate contracts with the A/E, construction manager, and each individual trade contractor.
The CMa’s role is to provide advice and counsel to school officials regarding trade contractor performance. During the preconstruction phase, a CMa provides cost estimation, sequencing, and scheduling services. A CMa also compiles bid documentation and works in conjunction with the A/E to assemble and release bid packages.
During the construction phase, the CMa will generally have one or more representatives located onsite to oversee and supervise construction. Because the CMa is not directly affiliated with the trade contractors performing construction, they can be (and often are) designated to serve as the independent supervisor under the SBCA. The CMa also bears responsibility for handling the administration of change orders and pay applications from trade contractors, as well as coordinating and “closing out” the work.
- Construction Manager as Constructor
Under a CMc delivery method (also referred to as a “CM At-Risk”), a school enters into separate contracts with the A/E and construction manager. A CMc’s pre-construction phase services largely mimic those provided under a CMa arrangement. However, after the school competitively bids and awards contracts to individual trade contractors, the contracts are assigned to the CMc, who effectively becomes a general contractor and assumes responsibility for their performance.
The CMc method provides a single point of responsibility and may offer cost efficiencies related to insurance and bonding; however, because the CMc is directly responsible for construction, it cannot serve as the project’s independent supervisor under the SBCA. Instead, the school must either designate its A/E as the independent supervisor, or it must engage a third party (i.e., owner’s representative) to serve in that role.
- Design-Build
Public Act 67 of 2024 codified Design-Build as a permissible construction delivery method for all public school construction projects. Previously, this delivery method had only been permitted for certain energy improvement projects.
In a Design-Build project, a school enters into a single contract with a design-builder who is responsible for both design and construction, either individually or as part of a design-build team.
Before entering into a contract with a design-builder, a school must engage the services of a design-criteria developer or an A/E who is licensed in the State of Michigan and not employed by the design-builder to assist the school with the selection, compensation, and scope of services of the design-builder or design-build team. A design-criteria developer is responsible for preparing a design-criteria package – a set of documents sufficient to enable a design-builder to prepare a proposal in response to a school’s request for proposals – and may also provide construction supervision services. Because a design-builder is responsible to perform construction, it cannot also supervise that performance without creating an impermissible conflict of interest.
Construction Contracts
Regardless of which project delivery method is selected, school officials should ensure that all contract documents are modified to align with Michigan public school construction requirements and are consistent with the selected delivery method.
The most commonly used construction contract forms are created by the American Institute of Architects (commonly referred to as “AIA” contracts). The standardized AIA forms are organized into series that must be used consistently. For example, when using a CMa delivery method, the school will need an A132 (Contractor Agreement), A232 (General Conditions), B132 (Architect Agreement), and C132 (Construction Manager Agreement). Mixing forms from different AIA series can create confusion, result in inconsistent allocation of responsibilities among project participants, and produce contract documents riddled with inaccurate or incompatible cross-references.
By selecting an appropriate project delivery method and ensuring clear, consistent construction contracts, school officials lay the groundwork for a successful project.