Finance and Project Delivery

40 terms

A

• Availability PaymentAn availability payment is a periodic payment a public owner makes to a private partner in a public-private partnership for keeping a facility available...

B

• Best Value ProcurementBest value procurement is a method of selecting a contractor or design-build team by weighing price together with non-price factors such as experience, technical...
• Bond CounselBond Counsel refers to a specialized attorney or law firm that provides legal advice and services related to the issuance of municipal bonds.
• Bridging DocumentsBridging documents are a partial design prepared by an owner's own architect or engineer, typically developed to somewhere between 15 and 35 percent, and...
• Budget PricingBudget Pricing refers to an approximation of the costs associated with an activity, job, program, or project, prepared for budgeting and planning purposes only.

C

• Capitalization (Cap) RateThe capitalization rate, or cap rate, is the ratio of a parking asset's net operating income (NOI) to its value. It is the market's...
• Construction ManagerA construction manager (CM) is a firm or professional that manages the planning, cost, schedule and execution of a construction project for an owner,...
• Construction Manager at Risk (CMAR)Construction manager at risk (CMAR) is a project delivery method in which the owner hires a construction manager during design to provide preconstruction services,...

D

• Debt Service Coverage Ratio (DSCR)The debt service coverage ratio (DSCR) is a facility's net operating income divided by its annual debt service, the principal and interest owed on...
• Design-Bid-BuildDesign-bid-build (DBB) is the traditional project delivery method in which the owner hires a designer to complete the construction documents, then solicits bids on...
• Design-BuildDesign-build (DB) is a project delivery method in which the owner holds a single contract with one entity, the design-builder, which is responsible for...
• Dynamic Pricing (Parking)Dynamic pricing, or demand-based pricing, adjusts parking rates by time, location, event or occupancy to manage how full parking is and how much it...

E

• Equity FinancingEquity Financing involves raising funds by selling ownership shares or equity stakes in the project to investors.

F

• Financial Feasibility Analysis/StudyFinancial Feasibility Analysis Study is a comprehensive evaluation that assesses parking needs, the cost of recommended improvements, and projected revenues and costs.
• First CostFirst Cost refers to the initial expense incurred in the planning, design, and construction of a parking facility.
• Flat Fee PricingFlat fee pricing, often called flat rate parking, charges one set price for a stay regardless of how long the vehicle remains, usually within...

G

• Gross Leasable Area (GLA)Gross leasable area (GLA) is the total floor area designed for tenants' exclusive use and occupancy, the space they lease and pay rent on,...
• Guaranteed Maximum Price (GMP)A guaranteed maximum price (GMP) is a construction contract price in which the contractor is reimbursed for the actual cost of the work plus...

H

• Hard construction costsHard Construction Costs refer to the direct expenses associated with the physical construction of a parking facility.

I

• Integrated Project Delivery (IPD)Integrated project delivery (IPD) is a project delivery method in which the owner, designer and builder, and often key trade partners, sign a single...

L

• Life Cycle Cost (LCC)Life-cycle cost (LCC) is the total cost of owning an asset over its useful life, including design and construction, operation, maintenance, repair, replacement and...
• Lowest Price Technically Acceptable (LPTA)Lowest price technically acceptable (LPTA) is a procurement method in which proposals are first checked against minimum technical requirements, and the contract goes to...

M

• Municipal BondsMunicipal bonds are debt securities issued by states, cities, counties and public authorities to finance public projects, including parking garages. Interest is often exempt...

N

• Net Operating Income (NOI)Net operating income (NOI) is a property's revenue minus its operating expenses, before debt service, income taxes, depreciation and major capital spending. For a...
• Net Rentable Area (NRA)Net rentable area (NRA), also called rentable area, is the floor area of a building on which a landlord charges rent: the tenant's usable...

O

• Operating ExpensesOperating expenses are the ongoing costs of running a parking facility, from staff and utilities to insurance, maintenance and technology, as distinct from capital...

P

• ParadigmA paradigm is a shared framework of assumptions, methods and examples that shapes how a field understands its problems. The philosopher and historian of...
• Parking ConcessionA parking concession is a long-term agreement in which a public or institutional owner grants a private concessionaire the right to operate a parking...
• Parking Rate/FeeA parking rate, or parking fee, is the price a driver pays to park, usually based on the length of stay, the time of...
• Pro Forma (Parking)A parking pro forma is the forward financial model of a facility: revenue by product, operating expenses, capital reserves and debt service, projected over...
• Progressive Design-Build (PDB)Progressive design-build (PDB) is a form of design-build in which the owner selects a single design-build team primarily on qualifications, before design is developed,...
• Public-Private Partnership (P3)A public-private partnership (P3) is a long-term agreement in which a public owner transfers some combination of design, construction, financing, operation and maintenance of...

R

• Request for Proposal (RFP)A request for proposal (RFP) is a formal document an organization uses to invite proposals from potential providers, such as parking operators, technology vendors,...
• Return on Investment (ROI)Return on investment (ROI) is a measure of profitability that compares the gain from an investment with its cost, usually expressed as a percentage:...
• Revenue ShareA revenue share is an arrangement in which parking revenue is split between two parties by an agreed formula, typically between a facility owner...
• Rough Order-of-Magnitude (ROM)A rough order of magnitude (ROM) estimate is an early cost range used to judge whether a project is worth pursuing before any meaningful...

S

• Sale-Leaseback ArrangementA sale-leaseback is a transaction in which the owner of a property sells it to an investor and simultaneously signs a long-term lease to...
• Soft Construction CostsSoft construction costs refer to the indirect expenses associated with a construction project that are not directly related to the physical construction of a...
• Subscription RateA subscription rate is a commercial electricity tariff in which the customer reserves a block of capacity in kilowatts for a fixed monthly fee...

T

• Tax Increment Financing (TIF)Tax Increment Financing (TIF) is a public financing method that is utilized for subsidizing redevelopment, infrastructure, and other community-improvement projects.