The philosophy behind Lease-Leaseback is to engage the contractor and architect at an early stage to minimize costly change orders once construction begins, thus staying within the Guaranteed Maximum Price originally set by the Developer Contractor. It fosters architect-builder coordination early on and throughout the process. This coordination doesn’t always happen within the traditional Design-Bid-Build process, since the design documents are finished before the contractor becomes involved.
What are the advantages?
- Higher percentage of projects completed on-time
- Higher percentage of projects completed on or under budget
- Facilitates architect-contractor-owner partnership
- Facilitates project financing/funding requirements
- Provides more opportunity for “value engineering”
- Saves time
- Guaranteed Maximum Price is set early during design
- Encourages participation of local subcontractors
- Identifiable track record
- Allows “best value” contracting based on qualifications the district considers important
- No claims or litigation