The ABCs of Building and Remodeling Schools and Universities

Billions of dollars are being spent in the 21st century on remodeling or building new public schools and university buildings all across America. This construction boom is a true win-win-win development. Builders enjoy increased profitability; communities enjoy modernization and urban development; teachers, students, and parents enjoy improved educational opportunities.

Educational institutions have been thrust into a competitive arena, with each school district or university competing for students. Modern schools and university facilities provide better learning environments, so they attract more students. The construction and remodeling projects also enhance the property values of communities. Even so, funds for the construction boom must be appropriated, and boards must carefully evaluate the potential return on investment. There are risks in these capital expenditures.

Motivations for Remodeling and Construction

There are two primary reasons behind the boom in remodeling many of America's K-12 public schools.

• Space: Enrollment trends have seen the number of students in schools increasing or decreasing dramatically as populations shift to suburbia. Some schools (even the new ones) have to resort to temporarily supplementing space needs with portable classrooms until the buildings can be remodeled. At the same time, economically distressed neighborhoods have schools that are almost empty.



• Modernization: Environmental concerns and regulations are having an impact on schools. Indeed, the most common remodeling projects are replacing plumbing, lighting, and electrical systems, or installing air-conditioning. Updating classrooms in accordance with the Americans with Disabilities Act is also a high priority.


There is a focus on building new science labs and media centers with state-of-the-art equipment. Gymnasiums and multi-purpose rooms are remodeled or constructed for more flexibility. School cafeterias are being remodeled to add snack bars. Some urban schools are remodeled to create new magnet schools, providing specialty services to particular groups of students.

Universities

Because much of their maintenance and renovation budgeting is financed through endowments, many universities defer renovation until funds are available. Meanwhile, older university buildings deteriorate. These challenges, though, are equaled by the need to address rising enrollment rates anticipated throughout the first decade of the 21st century.

College and university students these days are attracted to institutions with modern residences, including private baths and cooking facilities. They also want parking garages and wireless data networks in common areas (such as libraries, on campus, and dining facilities). The goal of achieving student satisfaction in a very competitive industry has spurred construction projects.

In addition, many students have jumped on the environmental bandwagon, demanding along with government entities that academic institutions adopt “green design” measures. Significant projects are undertaken to install systems that conserve energy or water and improve indoor air quality. Using environmentally friendly products, such as mechanized interior shades, is also a trend in university facility renovation.

Financial Risks

As with any large investment, the local community or state's market conditions; the nation's economy; and the supply-and-demand impact on the price of construction materials are potential risk factors.

Large construction and remodeling projects are usually planned several years ahead of the construction start date. By the time the project gets started, the appropriated money may not be enough to accommodate price increases due to inflation and more expensive material costs that occurred since contractor bids. These risks should be built into the original cost estimates.

Another risk is disruption to the education process. School remodeling projects sometimes necessitate transferring students temporarily to different classrooms. Universities and high schools with campus-style multiple buildings may also face the distraction of having to demolish an older building.

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