Faithful+Gould Advises on PBI California Court Cost-Effectiveness Study

Kathy Caswell
We recently assisted on a report titled "Governor George Deukmejian Courthouse: Evaluation of Cost Effectiveness" for the Judicial and Court Operations Services Division of the Administrative Office of the Courts (AOC) on the Governor George Deukmejian Courthouse in Long Beach.

The report submitted to the California State Legislature as required by Senate Bill 75 (Statues of 2013, Chapter 31), reviews the first true Performance-Based Infrastructure (PBI) and first social infrastructure-type project procured in the United States. It is important that California tax payers understand the value for money that has been achieved through this PBI approach compared to original predictions when the project was conceived.

Faithful+Gould Project Manager Richard Tregaskes said, "Faithful+Gould was appointed for this work due to its unique commercial and risk consulting capabilities together with a deep understanding of construction cost consulting and construction management delivery methods. Our ability to recognize the impacts of technical risks within the context of a complex commercial structure helped demonstrate to the Judicial Council of California and the California State Legislature the value for money of this method of project delivery."

"Faithful+Gould was appointed for this work due to its unique commercial and risk consulting capabilities together with a deep understanding of construction cost consulting and construction management delivery methods."

Richard Tregaskes, Faithful+Gould's Project Manager

Our team's analysis clearly showed that the Governor George Deukmejian project was delivered two years sooner at a nearly identical cost per square foot (within 0.15 percent) compared to a similarly scaled court built to the same standards while allowing for more resilient building systems and greater future expansion in the number of courtrooms. The shorter design and construction period for the Governor George Deukmejian courthouse is primarily due to the overlapping of design and construction, and not being reliant on unpredictable state bond sales for funding.

Faithful+Gould helped the AOC compare the PBI delivery method used for the Governor George Deukmejian Courthouse against three traditionally-procured court buildings to understand the cost, schedule and risk allocation on each of the projects. The comparison included adjustments for market and location-based factors based on Faithful+Gould's extensive expertise on similar work for the Federal court system.

We provide advisory services to government agencies as well as investors and bidders, a balance necessary to provide truly comprehensive advice to either side of a transaction. In this sense, we are not only capable of attracting investors and facilitating the development of Public Private Partnerships (PPPs) for public clients, but are also able to provide confidence to investors which, in turn, expedites the process of funding and executing a project. To achieve this balance, Faithful+Gould acts in such capacities as lender’s technical advisor, independent certifier and public advisor.

Faithful+Gould was involved in some of the earliest high-profile PPPs in the UK and Europe and quickly became established as a premier technical advisor. The firm delivers the necessary combination of technical expertise and first-hand experience with various methods of PPP, including the PBI approach used for the Governor George Deukmejian Courthouse.

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