School District Construction Contracts: Complete Contractor Guide 2025

K-12 Construction Market Overview

School Construction Market Size

Annual Investment:

$85B+

Nationwide annually

School Districts:

13,000+

Across the U.S.

Avg. Bond Measure:

$100M-500M

Major districts

School district construction represents one of the most stable and substantial segments of public construction. With predictable funding cycles through bond measures and state allocations, contractors can build long-term relationships with districts that provide consistent work opportunities.

Types of School Construction Projects

New Construction

• New school buildings
• Classroom additions
• Gymnasium/multipurpose
• STEM/Career Tech facilities

Modernization

• HVAC upgrades
• ADA compliance
• Seismic retrofits
• Technology infrastructure

School Construction Funding Sources

Primary Funding Mechanisms

General Obligation (GO) Bonds

Voter-approved bonds secured by property taxes. Most common funding source for major construction programs. Requires 55% or 66.7% approval depending on state.

State School Construction Programs

State matching funds for qualifying districts. Often targeted at disadvantaged districts or specific project types like seismic safety.

Certificates of Participation (COPs)

Lease-purchase financing that doesn't require voter approval. Used for smaller projects or when bond elections fail.

Developer Fees

Fees collected from new residential development. Used for new school construction in growing areas.

Tracking Bond Measures

Stay ahead of school construction opportunities by tracking upcoming bond elections:

Monitor county election office for bond measure filings
Review district facilities master plans (usually public documents)
Attend school board meetings where construction is discussed
Track state school construction authority announcements

School District Procurement Methods

Common Delivery Methods

DBB

Design-Bid-Build (Traditional)

Most common for school projects. Lowest responsible bidder wins. Clear separation of design and construction.

CMAR

Construction Manager at Risk

CM hired during design to provide preconstruction services. GMP established before construction. Requires state authorization.

LLA

Lease-Leaseback

Common in California. District leases site to contractor who builds and leases back. Best value selection allowed.

Multiple Prime

Separate contracts for major trades. District acts as general contractor. Common in some states.

Bid Requirements

Bid bond: 10% of bid amount
Performance bond: 100% of contract
Payment bond: 100% of contract
Contractor license verification
Subcontractor listing (if required)

Informal Bid Thresholds

Below threshold, districts may use informal procurement:

California: $15,000 (CUPCCAA)
Texas: $50,000 (varies by district)
Florida: $300,000 (with quotes)
New York: $35,000 (competitive)

Contractor Prequalification

Prequalification Process

Many school districts require contractor prequalification before bidding on projects over certain thresholds. This process evaluates financial stability, experience, and safety records.

Submit Application

Complete district prequalification questionnaire with financial and experience data

Financial Review

Audited financial statements, bonding capacity letter, banking references

Experience Verification

Similar project history, client references, key personnel qualifications

Safety & Compliance

EMR rating, OSHA citations, workers comp history, litigation disclosure

AB 1565 Requirements (California)

California law requires standardized prequalification for public school projects over $1 million:

Standardized questionnaire and financial statement
Objective scoring criteria published in advance
Appeal process for denied applications
Annual renewal with updated information
Applies to first-tier subcontractors as well

Special Requirements for School Construction

Safety & Background Checks

Worker Screening

• Fingerprinting for workers with student contact
• Sex offender registry checks
• TB testing in some jurisdictions
• Badge/ID requirements on campus

Site Safety

• Separate construction from occupied areas
• Daily safety inspections documented
• Construction fencing requirements
• Dust and noise mitigation

Prevailing Wage

Required on most school construction
Certified payroll documentation
Apprenticeship requirements
Labor compliance monitoring

Division of State Architect (DSA)

California school projects require DSA approval:

DSA-approved plans required
Project Inspector of Record (IOR)
Structural and accessibility reviews
Close-out certification process

Winning Strategies for School Contracts

Building District Relationships

Get Pre-Qualified Early
Submit prequalification applications to target districts before specific projects are announced.
Attend Industry Days
Many districts host contractor outreach events before major bond programs launch.
Track Facilities Master Plans
Review district long-range facilities plans to understand upcoming project pipelines.
Deliver Quality Work
School districts share contractor information. Excellent performance leads to repeat opportunities.

Critical Success Factors

Schedule around academic calendar - summer work windows are premium
Plan for phased construction while school is in session
Budget for overtime to meet hard deadlines before school starts
Maintain excellent safety records - EMR under 1.0 preferred
Document everything for DSA and closeout requirements