Powering K-12 Construction in Colorado: Design-Build and Energy Performance Contracts

Following numerous school bond initiatives across Colorado, districts now face a significant opportunity— and responsibility—to turn public trust into tangible improvements for students, staff, and communities. In the K-12 environment of Colorado—where performance, cost control, and efficiency hold a high priority—district leaders must navigate complex decisions to maximize the value of their investments. The good news? Proven delivery models and innovative funding combinations offer a pathway to success.

High Demand, Limited Resources

Colorado’s K-12 construction market is experiencing a surge. The successful passage of multiple bonds reflects strong public support for improving school facilities, from new construction and major renovations to safety upgrades and energy improvements. But while funding has increased, so have challenges:

• Rising construction costs due to inflation, labor shortages, and supply chain disruptions.
• Compressed timelines to deliver promises made to voters.
• Public accountability for ensuring bond dollars are spent efficiently and transparently.

This is where alternative project delivery methods and strategic financial tools become essential.

The Case for Design-Build

Design-build is increasingly being adopted by school districts seeking a more efficient, collaborative approach to capital projects. This method combines architectural and engineering design and construction into a single team under one contract with the owner. With one team accountable for everything, the community can trust you’ll build exactly what voters approved—without compromises, surprises, or “value engineering” after the fact.

Design-Build removes the gap (which is a lot of risk on the owner) often seen when managing separate teams’ contracts for design and building. With design-build, you get faster, more cost-effective results compared to traditional construction methods⁽¹⁾.

This integrated model delivers several key advantages in the current environment:

• Speed and Efficiency: Design-build accelerates project timelines by eliminating delays between design and construction phases. Speed is a critical advantage in a market where delays can increase costs.
• Cost Certainty & Risk Management: Early involvement of all stakeholders—including the contractor—ensures realtime pricing and constructibility feedback, reducing the risk of budget overruns and costly change orders.
• Collaborative Problem-Solving: When architects, engineers, and construction project managers work closely together, from day one, innovation and problem-solving thrive. This commitment to teamwork often leads to higher-quality outcomes tailored to each district’s needs.

Amplifying Bond Impact with Energy Performance Contracts (EPCs): A Strategic Synergy

Colorado districts are encouraged to explore how Energy Performance Contracts can complement bond-funded projects. When implemented effectively, this method can unlock additional value, funding, and sustainability benefits—without new taxes.

Key Strategies for Districts:

• Bundle energy upgrades with bond-funded work: EPCs can address HVAC, lighting, building controls, building envelope, water usage, and more—creating operational savings that free up general fund dollars.
• Maximize every dollar: By aligning bond scope with performance contracting, districts can stretch bond funds further while improving overall building performance.
• Leverage guaranteed savings: EPCs include contractual guarantees on energy savings, providing measurable ROI and financial protection.

Tips for District Leaders

Here are practical tips for district leadership to maximize Design-Build and Energy Performance Contracts:

1. Engage early: Involve your Design-Build and Energy Performance Contracts partners early in the planning process to identify synergies and avoid scope gaps.
2. Prioritize Long-Term Value: Consider lifecycle costs, operational savings, and educational impact; not just initial cost.
3. Use Objective Selection Criteria: Select partners with proven K-12 experience, transparent pricing models, and hold current Energy Service Company (ESCO) pre-qualification from the Colorado Energy Office.
4. Future-Proof Your Facilities: Design adaptable spaces and systems that accommodate evolving teaching methods, technology upgrades, and sustainability goals.
5. Involve Local Stakeholders: Engage educators, parents, students and community leaders to shape solutions that reflect your district’s unique needs and priorities.
6. Optimize Funding Strategies: Collaborate with your bond counsel to understand your financial capacity, and leverage bonds or Certificates of Participation or other financing tools to maximum capital capacity.
7. Build the Right Team: Assemble a cohesive, high-quality team committed to transparency, collaboration and your district’s long-term vision.

Turning Public Trust into Tangible Results

The passage of bonds across Colorado reflects a shared commitment to educational excellence and student success. School districts can honor that commitment with timely, cost-effective, and future-ready projects by embracing integrated delivery models such as Design-Build and strategically leveraging tools like Energy Performance Contracts.

⁽¹⁾Construction Industry Institute (CII)/Penn State research comprising 351 projects ranging from 5,000 to 2.5 million square feet. The study includes
varied project types and sectors.

Ready to start building with us? Contact us today, and our talent team will meet with you to discuss how our design-led, design-build approach can take your next construction or renovation project to the next level.