Meeting construction needs and energy savings with reduced financial risk through Allied’s cost-certain hybrid construction model

Silvis School District is utilizing Allied Facility Partners’ hybrid construction model to build their much-needed addition to George O. Barr Elementary School and improve their mechanical systems.  Using this model, work and services related to the construction of the addition all follow standard procurement procedures for school construction.  Scopes of work impacting energy consumption, however, are performed under a Performance Contract.  This hybrid model provides cost certainty for the district because Allied performs this work for a guaranteed price with an agreed upon markup following the bidding process.  This cost certainty provides accountability for project costs and eliminates excessive over-budget costs frequently incurred through the traditional approach.

In addition to reducing financial risk of construction, this hybrid model also benefits from the energy focus of the Performance Contract model.Understanding and making decisions with a focus on energy efficiency decreases the total cost of ownership for the district.  Allied is undertaking this project below the budget presented in 2019 while also installing a geothermal loop to address the existing building’s water source heat pumps.  In addition to driving energy savings, this design upgrade will allow the existing fluid cooler to be eliminated and reduce energy usage, chemical treatment, and frequent maintenance and troubleshooting.

Under the hybrid model, the school cohesively address two of its’ biggest challenges with cost-certainty: creating new classroom and office spaces and addressing their fluid cooler that has been a maintenance and cost burden since it was first installed.