Developing Child Care Facilities

(A brief guide)

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CHILDREN'S INVESTMENT FUND

Undertaking the development of a new child care center or the expansion or renovation of an existing one offers the opportunity to cost effectively design and build the center you want. By defining your goals and "wish lists" early in the planning process, you are more likely to have them included in the final design. Planning is key. Child care providers and staff who have worked in early education over time are probably the best sources for defining how facilities should function. Professionals (architects, designers, contractors) can incorporate that knowledge into designs. It is the effective interaction between the professionals who work with children and the professionals who design and build facilities that generates high quality facilities.

The following is a brief summary of the "development process", with suggestions about how to use that process to enhance the quality of the facility your are developing.

CONCEPTUAL STAGE

Someone within the organization has a "vision" about what their facility should look like and how it should function. That "vision" should be a guiding factor. Initially, ask yourselves how your project:

Is consistent with your mission? How will this project help you carry out your organizational mission? Will it help you build upon your existing skills and expertise?

Meets a need? Will the project address some need that you currently cannot meet? A need from your community, your staff, your program, or your children? Is there a "market" for it? Will it be used?

Will get managed? Do you and your organization have the capacity to complete the project? If not, what other types of skills or assistance might you need? Who specifically within the organization will manage the project on a day-to-day basis?

Remember, only someone from within the organization, who understands the "vision" for this project can communicate that vision to other members of your team, and remind them of its importance.

PROJECT PLANNING

Allow time for planning. It is the most critical period in the development process. Attention to planning will allow you to incorporate those quality improvements that you want more cost effectively. Many quality improvements are not that costly - if they are planned for early. Early planning should also include schedules and tasks for permitting and licensing. Regulatory agencies (i.e.: building department, fire department, accessibility boards, OCCS) should be engaged and consulted early in the process to avoid delays with permitting and licensing at the end of the project. The key stages of the planning process include:

Site control: Will the site be purchased or leased? In either case some form of site control, such as an option, purchase and sale, or pre-lease agreement, should be established so you can carry out other planning tasks with the confidence that the site will still be available to you when your have finished your feasibility studies.

Assemble a development team: What other professional assistance will you need? The two most important team members will be your organization’s lead person (project manager) and the architect.

Project Manager: The project manager will act as the representative of your organization and will coordinate the activities of all the team members. Identify someone who has the time to play this role, is highly organized and communicates well. Often this responsibility falls, by default, to the executive director. Does she/he have time for this responsibility? Is there a board member with project management experience? Do you want to hire a professional project manager to act on your behalf?

Architect: An equally important team member will be your architect. Find an architect who has experience in the design and construction of child care facilities. This experience will be valuable to you. Go look at the centers they have designed and talk to the provider occupying those sites to see how well they function. In addition to knowing about designing spaces for children and staff, architects should be good listeners and good problem solvers.

Staff: Your staff is a valuable resource- include them in planning discussions with your architect.

Attorney: Will you need an attorney to negotiate leases, property acquisition or contracts?

Contractor: Search for and select a contractor with a good reputation for delivering projects on time and on budget. The contractor should be licensed and fully insured. If you can identify one who has built other child care centers, that is a plus. Identifying and including your contractor early in the planning will be a benefit. Their ideas and experience can add to the planning process, especially with you and the architect. Let the contractor know early in the process the numerous agencies which have project oversight and the level of documentation which must be submitted to each in order to get a Certificate of Occupancy and your OCCS license.

Though not part of your development team, the following will play key roles in your project. The more they are involved and informed, the smoother it is likely to go.

Licenser: Involve your EEC licenser early. The conceptual stage is not too early. Make them aware of your project and your schedule. Invite them to review plans periodically so you can get their feedback.

Local building department: Let the local building department and building inspector know of your plans early in the planning process. You should hear any special concerns they may have earlier rather than later.

Project Planning: Defining the specifics of the project (timing, budget) will be an iterative process. Develop the basic information at the beginning and continue to modify it as you continue with project development. The basic elements are:

Project schedule: When do you anticipate completion? Is this consistent with your program’s operation, including enrollment periods or start up of new program year.

Project budgets: Develop a preliminary capital budget for the project, including sources of funding to cover the costs. Who will you be approaching to help fund the capital project? Develop a preliminary operating budget, including sources of program revenue and estimates of program expenses in the new site. Do a three year projection of the operating budget.

Program feasibility: Make sure there is demand in the community (talk with other providers and your Resource and Referral agent). If you are serving low income families are there subsidies available to enroll new children? What other competition exists in the immediate community? Are other providers planning expansions in the same community.

Site feasibility: Have the architect do a preliminary review of the zoning, parking, environmental, accessibility, use classifications for the site. Will variances be required? What agencies have approval rights over the site? Are there any barriers to receiving the permits and licenses required to operate a child care facility at this site?

QUALITY CONSIDERATIONS

Quality space supports quality programming. Quality improvements are not that expensive, especially if they are planned from the beginning. A well designed, quality space will enhance and support your children’s developmental progress and will enhance and support your staff in implementing your quality program. A quality space which supports staff, rather than works against them, improves staff performance, morale and longevity.

A list of quality considerations is attached.

PROJECT MANAGEMENT

We encourage a project management model for project implementation. The project manager becomes the central team member during the development phase. The project manager is responsible for the completion of the project. This is accomplished by having the project manager act as the central point of coordination and communication for all other team members. Who will play this role? The director? A staff person? A contracted project manager? Identify this role, and who will play it, early and be clear about their responsibilities. They will deal with day-to-day issues and problem solving, including:

Collecting or closing on all financing commitments and grants. In order to sign a construction contract and in order to assure project completion, all funding sources must be "in hand".

Negotiating project contracts. The most important contracts will be with your architect and your general contractor. These key documents should be clear and complete, and someone must understand them and what they mean for your organization.

Construction management. During construction, the work must be monitored and requests for payment from the general contractor must be reviewed, evaluated and approved. Change orders to the contract must be evaluated and approved or modified. Disbursements from funding sources must be coordinated and completed. These tasks should be done by the project manager and the project architect.

Budget and schedule monitoring. The project must be monitored for its progress against the time schedule and the budget to make sure both are in line. If they are not, adjustments should be proposed to you, the owner, and you should be aware of the time or financial consequences.

Permits and licenses. Securing your permits and licenses will take coordination of all team members and processing through regulatory agencies. This task takes dedicated attention to details, organization, communication and persistence.

PROJECT OPERATIONS

If the project is of significant size or means a dramatic change in the size or complexity of your facility, be sure to include a plan for post-development project operations in your planning. You should consider:

Taking possession. Once the project is completed, the general contractor should take the owner, or the owner’s facility or property manager, through the entire building and explain how all mechanical systems operate. Who will do this on behalf of your organization?

Warranties: When the general contractor is finished and they turn the building over to you, they will pass on to you the warranties for equipment and installations from all of the sub contractors. These are vital warranties as they represent the contractors’ and sub contractors’ obligations to repair any defects for a specific time period (usually one year). Someone within the organization should understand these warranties, know where they are, and know who to contact if there are problems during the warranty period.

Maintenance: How will the new facility be maintained? Will you contract for this service? Does the new facility have new maintenance needs? What are they? Develop a standard maintenance program for your staff or your contracted maintenance service to implement. Monitor the program periodically to make sure it’s effective. Make sure to budget for maintenance in your new operating budget.

Repairs: How will facility repairs be handled? Is this a staff function or a contracted service? Make sure to budget for repairs in your new operating budget.

Replacement reserves: In order to replace furnishings which will wear out (i.e. carpeting, paint, appliances, etc.), the owner should budget an amount to be set aside each year for replacements. This replacement reserve account can fund ongoing replacements in a planned and budgeted manner.