California Lease-Leaseback Construction
The lease-leaseback project delivery method (LLB) is rapidly growing in popularity as an alternative delivery method in commercial construction. This method involves engaging both the contractor and the architect at the earliest stages of project planning in order to minimize change orders during construction, which can add significantly to the project’s costs. This relationship also fosters a team atmosphere and helps to encourage communication, collaboration, and transparency for a successful and timely outcome.
Agencies that employ LLB have the power to bring their contractor of choice onboard during the pre-construction phase. This allows the contractor to provide the value engineering opportunities and cost analysis necessary to keep the project on budget.
Lease-leaseback gives project owners the freedom to select the most qualified construction company for the project.
The lease-leaseback construction method results in reduced risk to the agency, because the builder is involved during pre-construction to resolve conflicts prior to start of construction. This reduces the possibility of unforeseen conditions and results in delivering the project under an agreed-upon guaranteed maximum price (GMP).
- Faster project delivery at a lower price
- More opportunities for value engineering
- Fewer change orders
- Mitigation of claims and/or litigation
- Third-party financing of the project is available if needed
- Generates work for local subcontractors