NYC public school vs. private school construction considerations - by Sophia Loria
Outsource Consultants, Inc.
Construction projects for public and private sector schools differ in a few key ways — and these differences are only more important when working with the NYC School Construction Authority (NYC SCA). Specific vendor procurement requirements, stricter budgets, less code flexibility, and complicated timelines can be major obstacles to unfamiliar applicants.
Let’s break down some of the key differences!
Key Difference #1: Bidding
While private schools are free to select vendors based on preferred quality, relationship, or fit, public schools look for vendors that follow formal procurement laws, and highly prioritize those who match all their requirements.
One such requirement is the SCA’s MWLBE utilization plan, which requires contractors to include minority-owned, women-owned, and local businesses in their project bid, certified only by the SCA itself. If the prime contractor does not qualify as an MWLBE, they can select subcontractors that contribute to these goals:
• 18% for minority-owned firms
• 12% for women-owned firms
The SCA also requires bidding contractors to be prequalified, a process that involves rigorous vetting and evaluations. According to the SCA’s description, requirements for approval may include:
• At least two years of experience
• Strong references
• A proven track record of performance
• Financial capability
• Safety records
• Compliance with Locally Based Enterprise (LBE), Minority Business Enterprise (MBE) and Woman-owned Business Enterprise (WBE) requirements
• Enrollment in New York State Department of Labor (DOL) approved apprenticeship training programs for those trades in which an applicant seeks prequalification
• Evidence of firm integrity and mission
After an application is approved, firms are considered prequalified for three years.
Key Difference #2: Budget
While private sector school budgets are funded by tuition, donations, endowments, and private investors, public school projects often allow for less financial flexibility. Most capital costs are financed by city-backed bonds, and construction is offset by state funded building aid. The SCA keeps public school budgets under close regulation, meaning that every financial decision must be considered carefully.
Every fiscal year, the SCA’s budget may expand or contract depending on the needs of the city. Recent budget shifts have accommodated growing class sizes, despite declining birth and enrollment rates, though enrollment is often dynamic and subject to change.
The SCA has also allocated additional funds to prioritize accessibility in construction, with the goal of reaching full compliance with the Americans with Disabilities Act (ADA) within the next 15-20 years. The SCA has proposed a $20.5 billion capital plan for 2025 through 2029 – an increase of $1.5 billion in comparison to the preceding five-year plan. This commitment seeks to adapt to growing needs and demands for electrification.
Key Difference #3: Flexibility
Due to governmental constraints, the SCA expects top-of-the-class diligence when it comes to ensuring their projects are up to code. This means that any loopholes or creative workarounds will not be accepted.
Low flexibility also means a heightened awareness of sustainability, standardized design practices, and a commitment to ADA compliance. These standards don’t just exist to ensure the highest quality of construction for public schools, but also to mitigate constantly changing legal guidelines and costly errors.
For the most up-to-date reference on the SCA’s sustainability practices, refer to the NYC Green Schools Guide, a continuously updated rating system that was developed in response to the landmark Local Law 86 of 2005. The SCA has also developed a comprehensive Historic Schools Rehabilitation Guide, detailing the history and technical limitations of historical renovations.
Key Difference #4: Timelines
In general, the requirements for city-backed projects often mean a slower timeline to completion. This could be due to the more selective procurement/bidding process, as well as strict compliance with labor laws and union rules during construction. Private sector projects may be able to utilize the compressed schedules of private contractors, but the SCA expects negotiation with city agencies every step of the way.
Construction projects in the private sector are a negotiation/change order, meaning that architects are not responsible for remediation from any previous project, but this is not the case for the SCA. If any aspect of the previous project has not been finalized, which could include incomplete sign offs, applications, violations, or inspections, the firm working on a new project must oversee those jobs to completion.
These resolutions are often expected without additional compensation or formal change orders, creating a significant risk and time management concern for firms working in the public sector.
Are You Aiming for A+?
The SCA’s bidding process is competitive, but selecting the right subcontractors could be the key to securing your next project! Make sure to reach out to the right experts to ensure your team passes with flying colors.
Sophia Loria is a technical copywriter for the Decoder at Outsource Consultants, Inc., Manhattan, N.Y.