CONCEPT PLAN REPORT
CAPITAL ASSET REFERENCE GUIDE: TEMPLATE 4
Ministry of Advanced Education
Version 1.2
March 31, 2014
TABLE OF CONTENTS
EXECUTIVE SUMMARY .......................................................................................................................................iii
1.0
PROJECT DESCRIPTION......................................................................................................................... 4
2.0
BACKGROUND INFORMATION ........................................................................................................... 5
3.0
STRATEGIC ALIGNMENT ........................................................................................................................ 6
4.0
ENVIRONMENT ANALYSIS ..................................................................................................................... 7
5.0
PROGRAM DELIVERY OPTIONS ANALYSIS ......................................................................................... 8
6.0
CONCLUSIONS & RECOMMENDATIONS ......................................................................................... 19
7.0
IMPLEMENTATION STRATEGY ............................................................................................................. 20
OTHER RESOURCES FOR THE CONCEPT PLAN REPORT .............................................................................. 23
APPENDICES FOR THE CONCEPT PLAN REPORT ......................................................................................... 24
EXECUTIVE SUMMARY
Provide a summary for each section of the Concept Plan Report
PROJECT DESCRIPTION
BACKGROUND INFORMATION
STRATEGIC ALIGNMENT
ENVIRONMENT ANALYSIS
PROGRAM DELIVERY OPTIONS ANALYSIS
CONCLUSIONS & RECOMMENDATIONS
IMPLEMENTATION STRATEGY
Concept Plan Report | iii
1.0 PROJECT DESCRIPTION
1.1 Project Objectives

Update the project description from the Opportunity Assessment Report,
including the opportunity in the context of strategic and business drivers, project
objectives
1.2 Project Scope

Update project scope from the Opportunity Assessment Report, including user
needs, and space requirements, as follows:
- Category 1: New Priority Projects, driven by growth accommodation and
labour market demand-driven capacity, resulting in new system capacity,
IM/IT, skills training, etc.
 Indicate the number of new FTEs the project will accommodate
- Category 2: Whole Asset Replacement & Renewal Projects which improve
the physical asset condition and reduce deferred maintenance backlog.
50% or more of the asset is replaced1, resulting in increased system
capacity from improved functional efficiency
 Indicate the number of additional FTEs the project can
accommodate due to functional improvements, if applicable
1.3 Project Outcomes

Update the project outcomes from the Opportunity Assessment Report, including
the concrete results necessary to meet the project objectives
Note: Projects greater than $50M must be evaluated by Partnerships BC for public
private partnership (P3) viability during the Concept Plan Report activity. Institutions are
instructed to coordinate with the Ministry for any services provided by Partnerships BC.
While it is not mandatory to use PBC’s services to plan, deliver and oversee project
delivery, they do offer those services. Please refer to Section 13.0 Governance in the
CARG and http://www.partnershipsbc.ca.
RESOURCES
 Approved Opportunity Assessment Report
 Institutional Accountability Plan & Report
 5 Year Capital Plan
 FTE and space utilization rates
 Ministry’s Space Standards
 Ministry’s Budget Model
1
This threshold is provided as a guideline, not as a rule. In some instances, the Ministry may determine that it is prudent to undertake projects
that do not meet the threshold.
Concept Plan Report |Page 4 of 24
2.0 BACKGROUND INFORMATION
2.1 Current Situation

Update the current situation from the Opportunity Assessment Report, including
the circumstances and events leading up to the opportunity, as well as the risks
of status quo
2.2 Demand


Update the forecast demand from the Opportunity Assessment Report
Analyze relevant reports, data, or trends using tables/figures relating to the
opportunity, including those identified in the following:
- BCStats Population Projections (P.E.O.P.L.E.)
- Provincial data on labour trends
RESOURCES
 Approved Opportunity Assessment Report
 BCStats Population Projections (P.E.O.P.L.E.)
 Provincial data on labour trends
Concept Plan Report |Page 5 of 24
3.0 STRATEGIC ALIGNMENT
3.1 Stakeholder Identification

Update the internal and external stakeholders identified in the Opportunity
Assessment Report
Stakeholder
Table 3-1. Stakeholder Identification
Internal/External
(I or E)
Role
The Ministry
Stakeholder #2
Stakeholder #3
Stakeholder #4
Stakeholder #5
Stakeholder #6
3.2 Stakeholder Alignment

Evaluate each stakeholder (e.g., business plan, etc.) to determine how the
opportunity supports their goals
Table 3-2. Stakeholder Alignment
The Ministry
Goal
How the Institution’s Opportunity
Supports the Stakeholder’s Goals
Impact
(High, Medium, Low)
1.
2.
3.
STAKEHOLDER #2
Goal
How the Institution’s Opportunity
Supports the Stakeholder’s Goals
Impact
(High, Medium, Low)
Goal
How the Institution’s Opportunity
Supports the Stakeholder’s Goals
(High, Medium, Low)
1.
2.
3.
STAKEHOLDER #3
Impact
1.
2.
3.
RESOURCES
 Approved Opportunity Assessment Report
 Ministry Business Plans
 Cross-ministry initiatives
Concept Plan Report |Page 6 of 24
4.0 ENVIRONMENT ANALYSIS
4.1 Environment Scan

Identify similar initiatives to the proposed project and summarize the findings in
the table below
Table 4-1. Similar Initiatives in Other Jurisdictions Summary
Post-secondary Type of Project
Programs
Institution/
Scope
Cost
Risks
(New Build, Expansion,
Delivered
Maintenance, etc.)
Project Name
Institution #1
Institution #2
Institution #3
Institution #4
Institution #5
Impact on
Job Creation
4.2 Lessons Learned

Summarize the lessons learned from the environment scan exercise performed in
4.1 Similar Initiatives in Other Jurisdictions Summary
Table 4-2. Lessons Learned Summary
Post-secondary Institution/
Lessons Learned
Project Name
Institution #1
Institution #2
Institution #3
Institution #4
Institution #5
RESOURCES
 Approved Opportunity Assessment Report
 Post-secondary institutions and similar clients in
BC and other jurisdictions (provinces, states,
international)
Concept Plan Report |Page 7 of 24
5.0 PROGRAM DELIVERY OPTIONS ANALYSIS
The program delivery options analysis can be summarized in three steps, as follows:



Step 1– Identify All Options: List all options identified in the approved Opportunity
Assessment Report including status quo. These are evaluated against mandatory
criteria to determine which options are viable and should undergo further
analysis
Step 2 – Evaluate Viable Options: Options that meet mandatory criteria undergo
rigorous testing:
1. Options are compared using quantitative (cost/benefit) and qualitative
(advantages and disadvantages) analysis
2. Identification of financing sources for each viable option
3. Preliminary risk assessment for each viable option
Step 3 – Summary of Options: The options analysis will be used to select one
option as “preferable”, for which an implementation strategy will be developed
Concept Plan Report |Page 8 of 24
Table 5-1. Options Analysis Methodology
STEP 1
Identify All Options
Determine if any mandatory
criteria exist. If so, does the option
meet the mandatory criteria?
No
Option does not move
forward for further analysis
Yes
STEP 2
Evaluate Viable Options
Cost/Benefit
Analysis
STEP 3
Quantitative
Analysis
(Financial)
Preliminary
Financing
Preliminary Risk
Assessment
Qualitative
Analysis
(NonFinancial)
Summary of Options
Concept Plan Report |Page 9 of 24
5.1 Step 1: Identify All Options


List all options (both capital and non-capital options) as identified in the
approved Opportunity Assessment Report
Include “do nothing” as an option to identify the costs and disadvantages of
maintaining status quo
Table 5-2. Summary of Options from the Opportunity Assessment Report
OPTIONS
Option
Type of Project
Capital (include category of
project) or Non-Capital
Description
Status Quo
Option #1
Option #2
Option #3


Identify mandatory criteria that the options must meet. For example, mandatory
criteria may include:
- Infrastructure Improvements: FCI improvement and/or reduction of life
safety & occupational health risks
- Cost Effectiveness: Funding partnerships and/or cost benefits throughout
lifecycle
- Innovation: Demonstrates sustainable solutions and/or collaboration
- Strategic Alignment: Alignment with government priorities (e.g. Ministry
Service Plan) and Institutional priorities (e.g., mission statement, master
planning etc.)
- Quality Education: Improves student learning outcomes, and/or improve
access to learning and/or student full time equivalents (FTE) and space
utilization rates
Options are evaluated against mandatory criteria to determine if any options
can be dismissed. For example:
- Strategic – the option does not conform to the Institution’s Campus Master
Plan, etc.
- Quality Education – the option does not accommodate the FTE forecast at
maximum student full time equivalents (FTE) and space utilization rates
5.2 Step 2: Evaluate Viable Options

Options that meet mandatory criteria are evaluated through quantitative
(cost/benefit) analysis, qualitative (advantages/disadvantages) analysis,
financing, and preliminary risk assessment
Concept Plan Report |Page 10 of 24
5.2.1 Quantitative (Cost/Benefit) Analysis





2
A quantitative analysis provides a preliminary estimate of annual capital and
operating costs, including program/service delivery and facility lifecycle costs
Prepare a net present value cash flow analysis for the shortlisted viable options.
The term of the cash flow analysis should equal to one of the following:
- If asset is financed with debt – use the term for the debt/mortgage.
- If no debt financing required – use the expected life of the new asset.
Ensure that assumptions are adequately disclosed for revenue and cost
estimates
Include schedules detailing the annual principal and interest payments to
accompany the cash flow forecast, as well as for total capital cost estimate
The cash flow analysis should reflect the total ‘incremental’2 costs and revenues
associated with each project option being evaluated, not the ‘full cost’
including existing programs and facilities. However, in cases where the new
project/program also results in additional costs or cost savings in existing facilities
or programs, these amounts are also to be included in the project incremental
cash flow
Incremental costs refer to the additional costs associated with the new program only. Costs for the
existing programs prior to the new development would not be included.
Concept Plan Report |Page 11 of 24
Table 5-3. Summary Table of a Quantitative Cost/Benefit Analysis
OPERATING YEAR
CASH FLOW FORECAST – Viable Option 1
Inflow/(Outflow)
Year 1
201x
Year 2
201x
Year 3
201x
Years
4….19
Year 20
201x
Operating Cash Flows
Incremental program revenues, by source
Incremental program costs, by source
Incremental facility operating costs, by source
Interest expense on new debt financings *
Total Operating Cash Flows
$ xxx
$ (xxx)
$ (xxx)
$ (xxx)
$ xxx
$ xxx
$ (xxx)
$ (xxx)
$ (xxx)
$ xxx
$ xxx
$ (xxx)
$ (xxx)
$ (xxx)
$ xxx
Investing (Capital) Cash Flows
Total capital cost
Annual capital renewal, by source
Total Investing Cash Flows
$ (x,xxx)
$ (xxx)
$ (xxx)
$ (xxx)
$ (xxx)
$ (xxx)
$ (xxx)
……..
……..
$ (xxx)
$ (xxx)
$ x, xxx
$ xxx
$ xxx
$ (xxx)
$ xxx
$ xxx
$ xxx
$ (xxx)
$ xxx
$ xxx
$ xxx
$ (xxx)
$ xxx
……..
……..
……..
……..
$ xxx
$ xxx
$ (xxx)
$ xxx
$ xxx
$ xxx
$ xxx
……..
$ xxx
……..
……..
……..
……..
……..
$ xxx
$ (xxx)
$ (xxx)
$ (xxx)
$ xxx
Financing Cash Flows
New debt financing3
Internal financing
External financing
Annual debt repayments
Total Financing Cash Flows
Net Cash Inflow/(Outflow)
Net Present Value – 20 years at x %
3
$ xxx
Although debt financing may not be used for specific projects, there is still an opportunity cost of using
available cash flow for project funding.
Concept Plan Report |Page 12 of 24
A supporting schedule detailing the annual principal and interest payments should
accompany the cash flow forecast. For example:
LONG TERM DEBT – Continuity Schedule
Long term debt, opening balance
DEBT TERM
Year 1
201x
Year 2
201x
Year 3
201x
Years
4 to 19
Year 20
201x
$ xx,xxx
$ xx,xxx
$ xx,xxx
……..
$ x,xxx
xxx
(xxx)
xxx
(xxx)
xxx
(xxx)
……..
……..
xx
(xxx)
$ xx,xxx
$ xx,xxx
$ xx,xxx
……..
$ -
Annual debt payment:
Interest expense
Principal repayment
Long term debt, closing balance *
* Closing balance = Opening balance less Principal Repayment
A supporting schedule detailing the total capital cost estimate should also be included.
For example:
CONSTRUCTION YEAR
CAPITAL COST ESTIMATE
Year 1
201x
Year 2
201x
Year 3
201x
TOTAL
Land:
Acquisition cost
Site preparation
Parking and improvements
Total Land Costs
$ xx,xxx
x,xxx
$ xxx,xxx
$
x,xxx
xxx
$ xxx,xxx
$
xx,xxx
$ xxx,xxx
xx,xxx
x,xxx
xx,xxx
$ xxx,xxx
$ x,xxx,xxx
xxx,xxx
xx,xxx
$ x,xxx,xxx
$ x,xxx,xxx
xx,xxx
x,xxx
$ x,xxx,xxx
$ x,xxx,xxx
x,xxx
x,xxx
$ x,xxx,xxx
x,xxx,xxx
xx,xxx
xx,xxx
$ x,xxx,xxx
$ x,xxx
xx,xxx
$ xxx,xxx
$ xxx,xxx
$ xx,xxx
xxx,xxx
$ xxx,xxx
xx,xxx
xxx,xxx
$ xxx,xxx
Add: Inflation during construction
$ xxx
$ x,xxx
$ xx,xxx
$ xx,xxx
Add: Construction financing costs
$ xxx
$ x,xxx
$ xx,xxx
$ xx,xxx
$ x,xxx,xxx
$ x,xxx,xxx
$ x,xxx,xxx
$ x,xxx,xxx
Buildings:
Hard costs (construction materials and labor)
Soft costs (design, engineering, PM/CM etc.)
Construction contingency
Total Building Costs
Furniture, Fixtures & Equipment
Furniture and fixtures
Equipment
Total F,F&E
Sub-total
Total Capital Cost
Concept Plan Report |Page 13 of 24
5.2.2 Qualitative Analysis


A qualitative analysis is required to evaluate the non-financial costs
(disadvantages) and benefits (advantages) of each viable option, including
physical, social, environmental, and risk considerations
Determine a list of qualitative criteria. Examples include:
- Operational – criteria related to expected facility or program operational
improvements, such as:
 ability to meet student needs and enrollment demand
 ability to attract new learners (e.g. First Nations, out-of-country)
 improved staff recruitment and retention
 integration of new and existing programs
 ability to implement new technologies and learning methodologies
 impact on other areas of the Institution such as parking, food
services, recreation, housing, student, and health services
 improved operations and maintenance facility costs, e.g., energy
efficiency, improved FCI
-
Physical – criteria related to increased or decreased facility functionality,
efficiency etc., such as:
 effectiveness of facilities for meeting existing and new program
needs
 integration with existing facilities
 improved access and mobility
 flexibility to adapt to changing demands in the future
-
Environmental – criteria related to the impact that the project and
subsequent operations is expected to have on the local environment,
such as:
 increase/decrease in noise levels
 Increase/decrease in local traffic levels
 Impact on GHG emissions, waste levels etc.
-
Strategic – criteria related to impact that the project and subsequent
operations is expected to have on key stakeholders, such as:
 government education and training goals
 response to industry requirements
 attracting research funding now or in future
 program or Institution prestige
 public/student perception of the program(s) and/or the Institution
 public and private sector perception of the Province/the Ministry
 perception of other provincial and national Institutions
Concept Plan Report |Page 14 of 24

For each viable option, compile qualitative analysis findings in a summary table.
For example:
Viable Option 1: NAME
Summary of Qualitative Analysis
Advantages
Operational
Physical
Environmental
Strategic




Disadvantages




Viable Option 2: NAME
Summary of Qualitative Analysis
Advantages
Operational
Physical
Environmental
Strategic




Disadvantages




Concept Plan Report |Page 15 of 24
5.2.3 Preliminary Financing



For each viable option, identify intended sources of capital and operating
funding, including direct capital funding (e.g., provincial grants), federal grants,
own resources, debt financing, private financing, disposition of surplus property,
etc.
Financing must include details of conditions, associated with external funding,
borrowing assumptions, and planned commercial revenues
For each source of capital financing, include a table showing the required
financing draws for each year of the construction, matching the applicable
categories in the cash flow forecast, as follows:
Table 5-4. Sources of Funding for Each Viable Option
Project Financing
Sources of Financing
Direct capital funding
 Source A
 Source B
New debt financing
 Source A
 Source B
Internal financing
 Source A
 Source B
External financing
 Source A
 Source B
Total Project Financing
Year
1
Year
2
Year
3
Total
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
$ xxx
Concept Plan Report |Page 16 of 24
5.2.4 Preliminary Risk Assessment
For each viable option, update the risks identified in the initial risk register
completed in the approved Opportunity Assessment Report by evaluating the
risks in terms of probability, impact, risk owner, and mitigation strategies
Include new risks, if applicable
A risk register is in accordance with project management best practices as
described in the Ministry’s Risk Management Guide . Refer to CARG Template 9:
Risk Register for further details and examples of risk identification and evaluation
Note that risk response, risk monitoring & control, and risk evaluation (with
response) are completed in the Business Case Report and implementation phase
of the proposed project




Table 5-5. Risk Register- Risk Identification & Evaluation (Inherent)
RISK IDENTIFICATION
RISK RESPONSE
(Inherent)
Risk Identification
Details

Risk Evaluation
(Inherent)
Risk Response
Details
Risk Monitor
& Control
Risk Ra nk ing
w ith Risk
Response
Im pa ct w ith Risk
Response
N otes on Risk
Response
(progress,
effectiveness,
other notes)
Proba bility w ith
Risk Response
Response
Percenta ge
Com plete
Due Da te of Risk
Response
Ex pected
Risk
Results of Risk
Response
Response
Response Cost
O w ner
O rga niza tion
Risk O w ner
Sta tus
Risk Ra nk ing
Risk Im pa ct
Consequence on
Project
Perform a nce
Risk Proba bility
Trigger / Root
Risk Event
Ca use
Risk Response
N otes
Life Cy cle
Risk ID
Risk Identifica tion
Risk Evaluation
(With Response)
At this stage of the planning phase, Institutions should engage the Province to
determine the level of oversight and approval required. Complete the Capital
Project Risk Screen Tool (CARG Template 8).
RESOURCES
 Ministry’s Risk Management Guide
 Ministry’s Risk Register
 Capital Project Risk Screen Tool (CARG
Template 8)
Concept Plan Report |Page 17 of 24
5.3 Step 3: Summary of Options


Typically, the preferred option is the lowest net cost option on a net present
value basis. However, other considerations including those identified in the
qualitative analysis, financing, and risk assessment may surface another viable
option with a higher net cost as the preferred option
Summarize the results from Sections 5.1-5.2, providing advantages,
disadvantages, and key findings to select a preferred option
Key Findings
Viable Option 1
Viable Option 2
Net Present Value
$
$
Qualitative Advantages


Qualitative Disadvantages


Financing


Risk Assessment


Concept Plan Report |Page 18 of 24
6.0 CONCLUSIONS & RECOMMENDATIONS
6.1 Conclusions


List major conclusions based on Section 5.0
Identify a preferred option that has been selected
6.2 Recommendations


List recommended next steps, including a corresponding budget for a
comprehensive Business Case Report for the following activities:
- Initial Functional Program
- Indicative Design
- Quantity Surveyor Cost Estimate
- Geotechnical Report
- Environmental Assessment
- Engineering Feasibility Studies
An implementation strategy is developed for the preferred option identified in
Section 6.0 Conclusions & Recommendations
Concept Plan Report |Page 19 of 24
7.0 IMPLEMENTATION STRATEGY
7.1 Project Delivery Models



Provide a preliminary analysis of alternate project delivery models (e.g., designbid-build, design-build, construction management, P3, etc.)
Summarize findings to arrive at a preferred project delivery model for
procurement purposes
Refer to the Project Delivery Option Analysis Tool (CARG Templates 13).
Table 7-1. Summary of Procurement Models
Project Delivery Models
Advantages
Disadvantages
Procurement Model 1
Procurement Model 2
Procurement Model 3
7.2 Preliminary Schedule

Create a Gantt chart that identifies the expected duration of each project
phase leading to implementation
Table 7-2. Examples of Schedules Based on Project Delivery Model4
Number of Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
Design-Bid-Build
Tender & Award Arch./Eng'r & Consultants
Design
Tendar & Award Gen. Construction Contract
Construction
Design-Build
Tender & Award Owner's Consultants
Prepare Design-Bid Specification
Design-Build Tender & Award
Design
Award Trade Contracts
Construction
Construction Manager At Risk – GMP
Tender & Award Arch./Eng'r & Consultants
Design
Tender & Award GMP Contract
Negotiate & Award GMP Contract
Tender & Award Trade Contracts
Construction
Construction Manager – Fixed Fee (CM as Agent)
Tender & Award Arch./Eng'r & Consultants
Design
Tender & Award Construction Manager
Tender & Award Trade Contracts
Construction
T&A
Design ( 12 months)
T&A
40
Consturction (24 months)
T&A
Spec
T&A
Design ( 12 months)
Award Trade Contracts
36
Consturction (24 months)
T&A
Design ( 12 months)
T&A
N&A
T&A Trade Contracts
37
Consturction (24 months)
T&A
Design ( 12 months)
T&A
T&A Trade Contracts
32
Consturction (24 months)
4
Projects greater than $50 M must be evaluated by Partnerships BC for public private partnership (P3) delivery.
Institutions are instructed to coordinate with the Ministry for any services provided by Partnerships BC. While it is not
mandatory to use PBC’s services to plan, deliver and oversee project delivery, they do offer those services. Further
details about Partnerships BC can be found at http://www.partnershipsbc.ca.
Concept Plan Report |Page 20 of 24
7.3 Project Governance



The appropriate project governance structure is based on the complexity and
size of the project. Figures 7-1 and 7-2 provide examples of organization charts
for a small and large project
The organization structure identifies relationships and communication lines
between project members, and is intended to:
- Encourage appropriate input from a wide range of sources
- Facilitate timely decisions
- Fulfill all Institutional and government requirements
- Ensure good business practice in accordance with government contract
guidelines and financial and signing authority controls
- Focus on making design and equipment decisions within the boundaries
of key project parameters such as budget, schedule and project scope
A project board may be required depending on the scope, complexity and risk
profile of the project, and may include members from the Institution, the Ministry
and/or Ministry of Finance. The requirement of a project board will be identified
upon completion of the Capital Project Risk Screen Tool (CARG Template 8),
which identifies both organizational and project risks. Whereas the Capital
Project Risk Screen Tool determines the level of oversight required by the Ministry,
a project risk register is project specific and is updated in each phase of the
project lifecycle
Figure 7-1. Example of an Organizational Structure for a Small Project
Institution
Stakeholders
Project Manager
Designers
Contractors
Supplier
Concept Plan Report |Page 21 of 24
Figure 7-2. Example of an Organizational Structure for a Large Project
Board of
Governors
Campus Development
Committee
President &
Executive
Committee
Project Steering
Committee
President’s Council
Capital Projects
Construction
Manager
Special
Consultants
Functional
Programmer
Finance & Audit
Committee
Academic Schools
& Service Units
Prime
Consultant
Program
Staff
Subconsultants
Sub-trades
(Structural,
Mechanical,
Electrical)
Concept Plan Report |Page 22 of 24
OTHER RESOURCES FOR THE CONCEPT PLAN REPORT













Approved Opportunity Assessment Report
Institutional Accountability Plan & Report
5 Year Capital Plan
Campus Master Plan
Student full time equivalents (FTE) and space utilization rates
Ministry’s Space Standards
Ministry’s Budget Model
BCStats Population Projections (P.E.O.P.L.E.)
Provincial data on labour trends
Ministry Business Plans
Cross-ministry initiatives
Partnerships BC
Ministry’s Risk Management Guide
Concept Plan Report |Page 23 of 24
APPENDICES FOR THE CONCEPT PLAN REPORT
The following should be appended to the Concept Plan:






Initial Programming Information
Concept Options/Drawings
Engineering Pre-feasibility Studies
BC Budget Model Output
Quantity Surveyor Cost Estimate
Capital Project Risk Screen Tool (CARG Template 8)
Concept Plan Report |Page 24 of 24