Capital Projects – Major Policy
Proposed new title: Capital Projects Policy
Consultation Draft October 19, 2015
Purpose:
To establish a formal process for the identification, prioritization, approval, development, and delivery of CAPITAL
PROJECTS.
To define the standard project profile and supporting documents for all programming and financial data related to
a project.
To define protocols for the involvement of stakeholder representatives in the programming, development, and
acceptance of design processes.
Scope:
All CAPITAL PROJECTS regardless of the source of funding.
Definitions:
CAMPUS PLANNING AND DEVELOPMENT COMMITTEE (CPDC) – A standing committee of the Board of Regents
whose responsibilities include the consideration of MAJOR CAPITAL PROJECTS as they relate to general planning
for physical facilities.
CONCEPT DESIGN - an early developmental stage of a project representing design development drawings at 30%
and a Class D estimate
MAJOR CAPITAL PROJECT - A project that has a funding requirement in excess of $5,000,000, and may include:
 the establishment of a new space including construction of new buildings,
 external additions to existing structures,
 other changes to the footprint of existing structures,
 redevelopment of existing space in excess of 30% of a buildings gross area,
 grounds improvements that alter function and use.
 special infrastructure processes which exceed normal maintenance guidelines and which require
significant capital outlay (in excess of $5,000,000).
Funding is assigned outside of the University’s operating budget.
MINOR CAPITAL PROJECT - A project that has a funding requirement less than $5,000,000.
PRIME CONSULTANT - an architectural or engineering firm which has the prime responsibility for the project
PROJECT BRIEF - a description of the scope of work which gives potential bidders an overview of the project and is
included in the Request for Proposals
PROJECT SPONSOR – Senior administrator whose role is to champion, oversee and advocate for the project, its
requirements, and ensure support within the University community.
SELECTION ADVISORY COMMITTEE (SAC) - representatives from Facilities Management and user groups who
review the Request for Proposals document, review and analyze proposals received, and provide a summary of
findings to VPC via the Associate Vice-President (Facilities)
STEERING COMMITTEE – the group of high level members, or groups, who act as the decision making authority for
a project, representing the requirements of all stakeholders and ensuring that the project manager has the
necessary authority, resources and direction to execute the project successfully.
1
UNIVERSITY – Memorial University of Newfoundland
VICE PRESIDENTS COUNCIL - VPC
Policy:
1. MINOR CAPITAL PROJECTS will be approved at the appropriate operational level within the University and in
accordance with the Procedure for Approval and Management of Minor Capital Projects.
2. The following process must be used to guide the approval, development, and delivery of MAJOR CAPITAL
PROJECTS.
a. The Director of Engineering and Construction, Facilities Management is responsible for the administration of
campus design standards, technical evaluation of project proposals, development of project estimates, and
coordination and administration of project design, development and delivery services.
b. Upon recommendation from VPC, the CPDC reviews and prioritizes all MAJOR CAPITAL PROJECTS for inclusion
on a planning priorities list for recommendation to the Board of Regents. This CPDC ensures compliance with
strategic planning directions as set forth by the Board of Regents.
C. These plans may be documented through a variety of sources including institutional plans and frameworks,
Campus Master Plans, Deferred Maintenance/Capital Renewal Plans. This CPDC is also responsible for final
recommendation of a MAJOR CAPITAL PROJECT before it is submitted to the Board of Regents.
Related Documents:
Preliminary Project Estimate form
Preliminary Capital Project Proposal Summary form
Detailed Project Estimate form
Formal Capital Project Approval Request form
NLAA and CENL Guidelines and Recommended Minimum Fees for Architectural and Engineering Projects
Approval Date: TBD Effective Date: TBD Review Date: TBD
Authority: Campus Planning and Development Committee through the Vice President (Administration and
Finance)
Sponsor: Vice-President (Administration & Finance)
Contact: Department of Facilities Management, 709-864-7600
Procedures
PROCEDURE FOR IDENTIFICATION AND PRELIMINARY AUTHORIZATION OF MAJOR CAPITAL PROJECTS
1. MAJOR CAPITAL PROJECTS may be identified through a number of avenues including but not restricted to:
a. The campus master planning process;
b. Special funding opportunities;
c. Research activities;
d. Unit initiatives; and
e. Capital Deferred Renewal Programs.
2.
A requirement for a MAJOR CAPITAL PROJECT may be identified at other levels such as a unit head or primary
researcher. In these instances, the requester must obtain project sponsorship at the Dean, Director, or
Associate Vice-President or Vice-President level.
3.
A project must have a PROJECT SPONSOR. Based on the nature of the project requirement, the PROJECT
SPONSOR could be:
a. The President;
2
b.
c.
d.
A Vice-President or Associate Vice-President;
A Dean, Director, or equivalent; or
The Department of Facilities Management.
4.
The PROJECT SPONSOR is responsible for preparation and submission to VPC of a Preliminary Capital Project
Proposal Summary. That submission must include:
a. Project description;
b. Justification for the project (citing safety, legislative, academic/program need, technical
requirements, etc.);
c. Functional and/or technical outline of the project including the proposed space type, size, occupancy,
and function;
d. Preliminary estimate prepared by Facilities Management that reflects the functional outline and
documents the basis and assumptions under which the estimate has been prepared. Estimates will
follow an approved template and include all aspects of the project including design, construction,
equipment and projected operating costs. (Complete Preliminary Project Estimate); and
e. Proposed funding source(s).
5.
On recommendation of the Associate Vice-President (Facilities), VPC reviews the Preliminary Major Capital
Project Proposal Submission for content and confirmation of alignment with institutional plans.
6.
The CPDC reviews the Preliminary Major Capital Project Proposal, and based on a recommendation from VPC
assigns an overall priority rating, adds as required to the planning priorities list, and forwards it to the Board of
Regents for information purposes and identification of any related issues or comments. This assigned priority
ranking is communicated to VPC, the PROJECT SPONSOR and the Associate Vice-President (Facilities), who
maintains all associated records.
7.
A regular report is prepared by the Director of Engineering and Construction, Facilities Management and
submitted through the Associate Vice-President (Facilities) to VPC to confirm the status of all Preliminary
Major Capital Project Proposals.
PROCEDURE FOR APPROVAL OF MAJOR CAPITAL PROJECTS
1. The PROJECT SPONSOR determines when a submission for approval of a MAJOR CAPITAL PROJECT will be
made and prepares the Formal Capital Project Approval Request and associated documentation. All Formal
Major Capital Project Requests require approval of the Board of Regents before expenditures or preliminary
design work can occur.
2.
Formal Major Capital Project Approval Request submissions must include the following:
a. Project description;
b. Detailed justification for the project including proposed stakeholder management structure;
c. Identification of any special management/academic/ operational issues;
d. Functional outline of the project including the space type, size, function, occupancy, and
recommended acquisition method;
e. Confirmation from Facilities Management that the University Space Standards and Guidelines have
been considered and, where feasible, met;
f. Timing implications and required start-up schedules;
g. Defined funding source and financial plan including cash flow projections;
h. Detailed Major Capital Project Estimate prepared by Facilities Management that includes the basis
and assumptions under which the estimate has been prepared. Estimates must follow the Detailed
Major Capital Project Estimate Form.
3.
Approval of a Formal Major Capital Project Approval Request requires the following sequence:
a. Review by VPC and approved by the President or designate; and
b. Review and approval by CPDC; and
3
c.
d.
Review and approval by the Board of Regents Finance Committee; and
Review and approval by the Board of Regents
4.
The decision of the Board of Regents is:
a. Approval granted for the Vice-President (Administration and Finance) to proceed as proposed
following the Procedure for Management of Major Capital Projects; or
b. Conditional approval, requiring the qualification or provision of additional data; or
c. Deferred for future consideration through the CPDC; or
d. Denied.
5.
Board of Regents approval must include confirmation of the approved budget and preliminary construction
schedule for each approved project.
6.
In addition and in accordance with Section 37. of the Memorial University Act, approval of the LieutenantGovernor in Council is required for projects which incur liability or make expenditure for the purchase of lands
or the erection of buildings.
PROCEDURE FOR MANAGEMENT OF MAJOR CAPITAL PROJECTS
1. Prior to initiation of the project, administrative issues such as funding sources, initial cash flow projections,
and accounting processes must be established.
2.
The PROJECT SPONSOR establishes a STEERING COMMITTEE, which has overall responsibility in relation to the
project.
3.
A Project Management Team is established within Facilities Management. Representatives from units other
than Facilities Management may be appointed as necessary, normally as a result of the specialized nature of a
specific project. A Project Manager is appointed from within the Project Management Team. The Project
Manager has signing authority for the project and responsibility for ensuring that design development
proceeds on the basis of approval granted through the Procedure for Approval of Major Capital Projects.
4.
In collaboration with Facilities Management, the PROJECT SPONSOR establishes Stakeholder Groups, as
needed, comprising representatives of primary facility occupants and/or users, who provide input on program
development and identification of functional requirements.
5.
A Consultant Team(s) is appointed by Facilities Management based on the requirements of the project and in
accordance with the Procedure for Selecting a Prime Consultant Via a Request-for-Proposals Process.
6.
A functional program definition document must be developed through consultation among the Facilities
Management Project Team, the Stakeholder Groups, the PROJECT SPONSOR, and Consultant Team(s).
PROJECT SPONSOR or designate is required to formally approve this document.
7.
CONCEPT DESIGN is prepared on the basis of the program definition. This phase of the project also includes
the development of preliminary construction estimates to ensure that the project remains within the scope of
the approved budget. Where estimates identify funding issues, the project will normally be reviewed with the
PROJECT SPONSOR or designate to determine if revisions can be made to accommodate budget restrictions.
The PROJECT SPONSOR or designate is required to formally approve any changes that impact the original
Formal Capital Project Approval.
8.
A preliminary design, including floor plans and elevations, must be developed based on the approved concept.
Project estimates must be reconfirmed at this stage. A formal proposal will be submitted to the PROJECT
SPONSOR for approval. (See Article 9)
4
9.
Detailed designs are completed only after VPC and CPDC approvals have been granted. Detailed designs
include an operational review by Facilities Management and confirmation of adherence to institutional plans
and frameworks, campus master plans design, technical standards and the University Space Standards and
Guidelines. The detailed design must include a preconstruction estimate to confirm budget compliance.
Where estimates identify funding issues, the project will normally be reviewed with the PROJECT SPONSOR or
delegate to determine if revisions can be made to accommodate budget restrictions. Formal approval by the
PROJECT SPONSOR or delegate is required for all related financial and design documents.
10. In cases where the PROJECT SPONSOR identifies that the revised budget estimates cannot be accommodated
through program revision without serious impact on feasibility of the project, the PROJECT SPONSOR retains
the right to ask VPC and CPDC for consideration of additional funding. This resubmission may apply at any
stage of the design process. Additional funding will be considered by the Board of Regents based on the
recommendation of the CPDC and after appropriate recommendation through VPC and the Board of Regents
Finance Committee.
11. The contract documents are issued in accordance with the Procedure for Using Public Tender. The Project
Management team evaluates the tender results and prepares a recommendation with regard to contract
award. The Director of Engineering and Construction, Facilities Management reviews all tender results and
recommendations and forwards recommendation to the Associate Vice-President (Facilities).
12. The Project Management Team carries out construction management and administration. Periodic updates on
project status are made to the Steering Committee, Stakeholder Groups, VPC, and CPDC.
13. Facilities Management completes and commissions the MAJOR CAPITAL PROJECT.
14. Facilities Management regularly reports the status of MAJOR CAPITAL PROJECTS to the CPDC, through VPC
and the President.
15. Facilities Management is required to perform a post-contract evaluation that reviews all aspects of the project
delivery.
16. A formal project completion report must be submitted to the PROJECT SPONSOR, VPC, and CPDC.
PROCEDURE FOR SELECTING A PRIME CONSULTANT VIA A REQUEST-FOR-PROPOSALS PROCESS
1. Prime Consultants are selected through a Request-for-Proposals process. Facilities Management determines
the type of consulting service required and develops a PROJECT BRIEF for use in the selection process outlined
below. Facilities Management retains the Prime Consultant.
2.
Facilities Management recommends to the Associate Vice-President (Facilities) a Selection Advisory
Committee consisting of:
o The Director of Engineering and Construction and/or designate,
o Representatives of both the Stakeholder Groups and Project Management Team, and
o Others as appropriate for the project
3.
Individuals who are recommended for the SAC must be aware of and comply with the University’s Conflict of
Interest policy.
4.
The Associate Vice-President (Facilities) approves the membership of the SAC.
5.
Facilities Management invites candidate Prime Consultants to submit a brief indicating the makeup and
expertise of the architectural and/or engineering team (including subconsultants) proposed for the project,
the understanding of the proposed project, the manner in which the work is intended to be performed, and
5
the fee structure.
6.
The SAC independently reviews and evaluates the submissions and may interview the candidate Prime
Consultants and subconsultants. A shortlist of qualified Prime Consultants is developed.
7.
Presentations may be requested from shortlisted by Prime Consultants and subconsultants in order to make
the final recommendation for negotiation of a contract.
8.
The SAC prepares a report on its findings which clearly identifies the strengths and weaknesses of each
candidate Prime Consultant and includes a recommendation of the preferred Prime Consultant. The report is
forwarded for review by the Associate Vice-President (Facilities) and recommendation to VPC and for further
recommendation to the Board of Regents, through the President, regarding approval of the Prime Consultant.
9.
The Board of Regents considers the report, associated information and recommended preferred
candidate and appoints the Prime Consultant, which is communicated to Facilities Management, who
communicates the decision to all proponents.
PROCEDURE FOR SELECTION AND APPOINTMENT OF CONSULTANTS FOR A MINOR CAPITAL PROJECT
1.
2.
3.
4.
The Engineering and Construction section of Facilities Management prepares and maintains a list of qualified
consultants as a source file that is reviewed and approved annually by the Associate Vice President (Facilities).
The list is inclusive of corporate literature submitted by consulting firms and inclusive of the University’s
experience information from past project work with established firms. Noted strengths and experience of the
firms will aid in the assignment of projects to consultants based on the project requirements.
The Director of Engineering and Construction consults with the Associate Vice President (Facilities) and
awards the commission to a suitable, qualified consultant based a review of their capability, suitability,
resource availability, managerial ability and proposed fee.
On an annual basis, the Director of Engineering and Construction prepares a report which indicates the
consultants name, nature, scope and value of each commission over the previous year. This report is
submitted to the Associate Vice President (Facilities), Vice President (Finance and Administration), President,
as well as the Campus Planning and Development Committee.
PROCEUDURE FOR APPROVAL AND MANAGEMENT OF A MINOR CAPITAL PROJECT
To Be Determined
In accordance with Section 37. of the Memorial University Act, approval of the Lieutenant-Governor in Council is
required for projects which incur liability or make expenditure for the purchase of lands or the erection of
buildings.
6