The nationās 90,740 state and local governments provide office space and support facilities for 16.6 million full-time equivalent employees. By comparison, the General Services Administration, the nationās largest civilian landlord, provides workspace for roughly a million federal workers.
The obvious difference between working with a single agency like the GSA and working in the state and local government sector is that the latter encompasses tens of thousands of units with an immense variety of political, social, and economic frameworks. Moreover, state and local governments typically have their own legislative mandates, regulations, and policies when it comes to engaging the services of architects, engineers, and contractors.
To take the pulse of this diverse market, we contacted capital facilities officials at state and local government agencies, as well as AEC professionals whose firms do work with such public-sector clients. Hereās what they advised.
1. Bring your best game to the party
āI am intrigued by how much things vary from state to state,ā said Tim Mason, Administrator of Idahoās Division of Public Works. āWe all do things a little differently.ā
Masonās office has responsibility for capital construction and upkeep of existing facilities for all state agencies in Idaho. But in his role as president of the National Association of State Facilities Managers, he also has a unique perspective on the ways in which states operate with regard to capital projects.
Despite their differences, states are looking for designers to bring more to the table, says Mason. āWe look to the design community to be on top of whatās happening so they can come to us with innovative ideas, such as in areas like energy efficiency,ā he says. āWe donāt want to just keep building the same thing year after year.ā He points to the new College of Business and Economics Building at Boise State University, where local firm Hummel Architects specified chilled-beam technologyāāthe first one of those weāve done, and it was the design team that suggested it.ā
What state and local government clients want from you:
1. Bring your best game to the party.
2. Reduce client risk, establish ironclad trust.
3. Be patient, but be prepared for delays.
4. Learn to work within regulatory constraints.
5. Help state and local government clients solve their funding problems.
6. Be open to using new alternative delivery methods.
7. Be wary about fees, but donāt assume youāll be exploited.
8. Push the right local hot buttons.
9. Go for the doughāāessential services.ā
To Masonās point, Peter Conway, market leader for campus and institutional sectors for Albany, N.Y.-based CHA Companies, says his firm has become more of a partner with the state and local municipalities because of the financial constraints theyāre under. āWith budget cuts and staff reductions, theyāre relying more and more on the design community to come up with innovative, cost-effective solutions to their problems,ā he says. āWeāre much more engaged now than we ever have been, right from the initial concept through completion.ā
CHA Companies, which works in roughly 20 states, is also doing a lot more these days to help municipal clients save energy on their building portfolios. āIn some cases, itās a substantial amount of money,ā says CHA president and COO Rodney J. Bascom. āIn many cases, state and local programs are helping to fund those initiatives.ā
2. Reduce risk, establish ironclad trust
Relationships between AEC firms and state and local government clients are evolving rapidly, says Bascom. āA lot of firms can do facility engineering, like when the client says, āWe need to fix a boiler.ā Now itās more a collaborative approach to problem-solving. Clients have a lot of questions: āHow can we afford these improvements? How do we initiate them? Can we phase them?ā We pride ourselves on having become engineering consultants rather than just engineers, bringing in the right expertise and working together as a team toĀ solve the problems the municipalities face.ā
That approach is playing well in other parts of the country, too. āMore than anything, these clients want attentiveness and the peace of mind that they will be taken care of,ā says Michael Brack, PE, president of Datum Engineers, with offices in Austin, Dallas, and San Antonio, Texas. āThey tend to be risk-averse, and they want to be certain that all the angles have been considered. They donāt want to be embarrassed by surprises or blunders. We walk our public clients through the decisions we are making, or that need to be made, so they are a part of the process.ā
Robert Utsey, a senior vice president in the Orlando, Fla., office of Skanska USA Building, says, āThereās got to be a level of trust established and maintained, and everybody at the table has to be cognizant of that. Itās how you behave, how you deal with people, how you communicate, and how transparent you areāall the basic things that are required to establish trust.ā
3. Be patient, but be prepared for delays
Building Teams are also reporting that public-sector clients are still stretching out the decision-making process. āWhen clients are slow to make decisions and complete reviews, it creates gaps in our workflow, which are especially challenging when projects go on hold for a period of time,ā says Datumās Brack. Delays of this kind are more frequent these days, he says, forcing Building Team member firms to move on to other projects. āOf course, those owners are going to want us to be ready to jump when theyāre ready,ā he says.
The chief cause of these backups? Staff reductions at state and local agencies. But thatās not the only reason. āIn most cases, we are the enemy when it comes to breaking promises,ā says Bruce Bockstael, FAIA, chief architect for the State of Connecticut Department of Public Works. āWe seldom can meet our own deadlines, due to low staff, and have difficulty performing up to the level we expect of our vendors.ā
Bockstael notes, however, that legislative mandates regarding the timing of project advertising, oversight reviews, and multiple levels of review on certain contracts (three, in the case of Connecticut) are also impediments to timeliness. Moreover, at any moment, state legislators may pass a law that directly or indirectly affects building codes and practices, from which there may be no appeal.
āWe recognize these problems, and admit them to our design and construction partners,ā says Bockstael. āThey generally play along, but for the most part, the enemy is us.ā
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4. Learn to work within the regulatory restraints
On the Left Coast, Californiaās Office of Statewide Health Planning & Development is notorious for the depth of its oversight requirements. Created in 1978, OSHPD regulates design and construction for all healthcare facilities, public and private, in the Golden State.
āYou really have to be a skilled practitioner to be able to work within their requirements,ā says Gregg G. Sauter, vice president in the Los Angeles office of Skanska USA Building. He says OSHPDās permitting process can take up to two years. āThatās a long time,ā Sauter says. āWe can sometimes get it down to a year, but in other states itās usually just two to three months.ā
Sauter also cites the California Environmental Quality Act as a frequent source of delays. Dating from 1970, CEQA casts its long shadow on almost all construction within in the state. āThe fatal flaw with this act is that itās all too easy for anyone who is opposed to any development to spend the few dollars required to document and register a protest,ā he says. āOnce a protest is registered, it has to be fully heard, and this really restricts the development process,ā sometimes stretching it out for years.
āNobodyās trying to get around anything,ā says Sauter, ābut you need to improve the effectiveness of the legislation,Ā to make sure itās not as restrictive as it currently is.ā
5. Help state and local government clients solve funding problems
The universal disease afflicting virtually all state and local governments is lack of funding for capital expenditures. In an era when revenues from sales, excise, and property taxes have fallen dramatically, public officials have adopted a heightened sensitivity to spending, with adverse consequences for AEC firms.
āWe see city councils and county governments that have funds and they donāt obligate them,ā says Benton Rudolph, AIA, senior vice president and national business sector manager for architecture with Atkins North America. āThey may have gone for a bond referendum, but thereās a sensitivity to the taxpayers, and whether itās appropriate to be obligating those funds for new projects.ā Thus, says Rudolph, even when the money and the authority to initiate projects are in place, many cities and counties are not budging simply because of the political and economic climate.
Many government owners also are becoming more interested in alternative delivery methods to enhance their funding capabilities. John Raff, PE, deputy executive director of the Texas Facilities Commissionās Facilities Design and Construction Division, says the state is promoting public-private partnershipsāso-called P3sāas a means to stimulate capital improvements without an initial outlay of public funds.
āWe have a lot of state employees doing essential government functions in leased space,ā says Raff. āIt would be a huge boon for the state if we could get them back into state-owned space.ā Raff says the TFC is considering a P3 option for long-term leases of state-owned land, perhaps with an option to purchase.
AEC firms that hope to partner with state and local governments in P3 projects also need to have the fourth P, for āpatience,ā notes Fred Evins, redevelopment project manager/architect for the Economic Growth and Redevelopment Services Office of Austin, Texas. Acting as the business development arm of Austin Energy, EGRSO works with private developers to redevelop underutilized downtown assets. For example, the cityās oldest water treatment facility is being redeveloped through a 10-year P3 project that will return the property to the tax rolls.
āOur P3 partners find it very beneficial that we act as a facilitator with the rest of the city organizations,ā Evins says. āWhen theyāre trying to get a permit and get conflicting directions from different departments, we help mediate the situation.ā
Evins says one lesson from EGRSOās experience in P3 is to base agreements on performance. āThe cityās investment doesnāt come forward until after the project has reached performance milestones,ā he says.
6. Be open to using new alternative delivery methods, like 'IPD Lite'
Ron Rochon, AIA, LEED AP, a partner at Seattleās Miller Hull Partnership, says his firmās expertise in multiple alternative delivery methodsādesign-build, CM at risk, and something known in the Northwest as āgeneral contractor/construction manager,ā or GCCMāhas been to its advantage in public projects.
The latest alternative delivery mechanism is referred to as āIPD lite.ā Rochon explains that, because the state of Washington prohibits government entities from entering into three-way contracts, the IPD lite mechanism empowers the state to select the GCCM right after the architect is named; this process allows for fast-tracking and real-time costing as the project develops.
āThe idea is to get the benefits of integrated project delivery without going through that contracting methodology,ā he says. āFirms that have the expertise and are nimble enough to do those different delivery methods are doing better than firms which arenāt yet there.ā
Connecticutās Bockstael says his state has learned that low bid is not usually the best method to obtain a complete design. āSeldom do we complete a building project without change orders, with the result that our final cost is often closer to the median bid,ā he says. The state now uses a best-value approach on both design-build and construction manager at risk projects, considering both the cost and the capability of the team.
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7. Be wary about fees, but don't assume you'll be exploited
Twelve years ago, in an effort to foster collaboration, Bockstaelās office instituted a monthly Industry Advisory Council meeting, which it has been hosting ever since. Participants include virtually all of the regional construction industryās key playersāAE firms, construction managers, and the various contractor organizations. āWe invite open discussion on how our department is doing, what changes need to be made, and other industry problems that maybe we, as an organization, can address or change,ā says Bockstael.
āWe believe we have a fair system of compensation,ā he says, āand have benchmarked our fees with other states, organizations such as various colleges within our region, and private companies that often hire these types of consultants.ā
Robert F. Pulito, AIA, president of the S/L/A/M Collaborative, Glastonbury, Conn., says the Nutmeg State has been an enlightened patron. āWhen the recession hit and everybody was struggling for work, a lot of the state work continued at a reasonable pace. Private institutions and corporations really dropped off, but our state work did not.ā He says that many private-sector corporations, schools, and institutions ātook full advantageā of the economic situation to squeeze fees but the states did not. āThe states know what it takes to do the work,ā says Pulito. āThe fees they pay are reasonable for the effort they expect. Plus, they are interested in maintaining high quality.ā
Atkinsās Rudolph echoes that point of view. āThere are overly cost-competitive clients out there who donāt care if you lose money on a project,ā he says. āOn the other hand, government clients push you, and theyāre competitive about their expectations, but for the most part they do care about their communities, and they are not there to put you out of business.ā
Unfortunately, not all public entities were so benevolently inclined during the economic downturn. āThe big concern is the lack of opportunity at this level,ā says Miller Hullās Rochon. āThere are opportunities, but theyāre limited. And for firms that do a lot of public work, like we do, we see risk aversion at the municipal level.ā
Moreover, says Rochon, many large firms have been going after smaller projects that they might ordinarily have passed over, which pushed fees downward. āIn 2007 and 2008, when it was really crashing, local governments were getting incredible deals on their public projects,ā he says. āThey were bidding at 25% or 30% below what we had estimated.ā The point: Donāt blame low fees entirely on the states and cities.
8. Push the right local hot buttons
Rudolph says a game-changing trend he calls āhyper-local presenceā has recently made its way onto project checklists, particularly with local governments in Florida and Texas. āIt used to be that it wasnāt a big deal if you were based in Houston and went for a project in Austin, but there seems to be new scrutiny that is looking for very local staff,ā he says. āClients want to know that youāre an architect in the city, not just in the county.ā
Of course, many local governments also have sustainability as a hot button. According to the U.S. Green Building Council, 384 cities, 58 counties, and 34 states reference LEED in some way for public buildings.
Since 2000, for example, Austin, Texas, has mandated LEED Silver certification for new or reconstructed municipal buildings. Kalpana Sutaria, AIA, LEED AP BD+C, PMP, supervisor of the project management division of Austinās Public Works Department, says, āItās a constant learning process for the contractors and their subcontractors, but our consultants seem to be much more on board in the last few years. When we did the first project, in 2001-2002, they were not as familiar and the fees were higher, too.ā Now, she says, training and experience, plus the ability to visit the cityās 15 LEED-certified projects (including the LEED-EB:O+M Gold Austin Convention Center), are all proving to be helpful.
9. Go for the doughā'Essential services'
Among todayās active state and local government-owned projects, many have been specifically funded for so-called āessential services.ā
āThere is an abundance of specifically funded projects,ā says Atkinsās Rudolph. āIn most of the states we deal with, public safety projects are funded, as are emergency operations centers. Beyond a lot of smaller projects and deferred maintenance projects, it seems to be the essential buildings that are being funded.ā
Texas Facility Commissionās Raff says his organization has been working on crime labs and regional offices throughout the state for the Department of Public Safety. They also recently completed the $35 million Texas Center for Infectious Disease, a tuberculosis treatment facility in San Antonio. Although the revenue bond for this project was approved in 2001, the legislature only released the money in 2007.
Another prime example of an āessentialā project is the new 525,000-sf Travis County (Texas) Civil and Family Courthouse, now in the conceptual design stage. The county is building the new courthouse in Austin to provide badly needed space for court-related support facilities and technically up-to-date courtrooms.
āTodayās family courts have very specialized needs,ā says Belinda Powell, strategic planning manager in the countyās Planning and Budget Office. āItās not necessarily the traditional courtroom setup. You have to deal with all the participants in family life, which could be several parents and grandparents involved in the proceedings around one child.ā
The existing courthouse, built in the 1930s, simply does not offer the necessary non-courtroom space to accommodate offices for the many county support agencies, nor does it have an adequate circulation system to keep the public and persons in custody separated. āModern courtrooms need much more than what was available in the historic facility,ā says Powell.
Meanwhile, the historic courthouse will be used for more suitable purposes, such as probate court. āThe idea is to create new facilities to meet new needs, while repurposing older facilities for more suitable functions,ā says Powell.
What, then, are state and local government clients looking for in their Building Teams? āLong-term, established relationships, above anything else,ā says Atkinsās Rudolph. While this has always been a factor, he notes that, in todayās climate, āYou have to be a known commodity, you have to provide best value, and you have to offer low risk to your owner. They need to know that they will look good in the end.ā +
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