Procedure for Approval of Minor Capital Projects

Approval Date: 2016-12-06

Effective Date: 2016-12-06

Responsible Unit: Department of Facilities Management

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1. The requirement for a Minor Capital Project may be identified through a number of avenues including but not limited to:

a. The campus master planning process;
b. Special funding opportunities;
c. Research activities;
d. Unit initiatives;
e. Capital Deferred Renewal Programs

2. Minor Capital Projects which are planned, managed and delivered internally occur as part of operations and delivery of services by applicable areas within the University. When external services or contractors are engaged for all or part of a Minor Capital Project, the processes outlined in this procedure must be followed. The authority to decide whether to engage external services or contractors rests as follows:

a. At the St. John's campus, with the Director of Engineering and Construction
b. At Grenfell Campus, with the Associate Vice-President (Administration and Finance)
c. At Marine Institute, with the Associate Vice-President (Administration and Finance)

3. The Minor Capital Project must have a Project Sponsor, who has spending authority relating to the project budget. The Project Sponsor determines when a submission for approval of a Minor Capital Project will be made. The approval is required before expenditures or Concept Design work can occur.

4. The Project Sponsor prepares the formal Minor Capital Project approval request, in accordance with the list below. The list will vary, depending on the scope and size of the project. Consult with Campus Facilities Management, as appropriate.

a. Prepare the Project description;
b. Identify any special management/academic/ operational issues;
c. Establish a functional outline of the project including the function, occupancy, space type, size and recommended acquisition method;
d. Identify timing implications and required start-up schedules;
e. Submit items in a. to d. above, to Campus Facilities Management and request they prepare a budgetary Minor Capital Project Estimate that includes the basis and assumptions under which the estimate has been prepared, as well as a preliminary construction schedule. Estimates must follow the Minor Capital Project Estimate Form
f. Complete the Minor Capital Project Request form;
g. and for those projects valued at $1,000,000 or more or where multiple funding sources exist:

i. Prepare a detailed justification for the project including proposed stakeholder management structure;
ii. Define the funding source(s) and financial plan including cash flow projections

5. The Project Sponsor submits the documentation, as prepared in 4., to the applicable approval level(s). To ensure consistency with University plans such as campus master plans, infrastructure plans and Capital Deferred Renewal Program, etc. review and approval is as follows:

a. For Minor Capital Projects valued at $500,000 or less:

i. at the St. John's campus, by the Director of Engineering and Construction
ii. At Grenfell Campus, by the Associate Vice-President (Administration and Finance)
iii. At Marine Institute, by the Associate Vice-President (Administration and Finance)

b. For Minor Capital Projects valued at more than $500,000 by the Associate Vice-President (Facilities).

In addition, approval of Vice-Presidents Council, is required for Minor Capital Projects valued at $1,000,000 or more.

6. The decision for the Minor Capital Project Approval Request may be:

a. Approval granted for the project to proceed as proposed, following the Procedure for Management Of Minor Capital Projects; or
b. Conditional approval, requiring the qualification or provision of additional data; or
c. Deferred for future consideration; or
d. Denied.

Approval must include confirmation of the approved construction budget and preliminary construction schedule for each approved project.

7. In addition and in accordance with Sections 4.(2) and 37. of the Memorial University Act, approval of the Lieutenant-Governor in Council is required for certain projects, particularly those which incur liability or make expenditure for the purchase of lands or the erection of buildings. The process for this approval is in addition to the Procedure for Approval of Minor Capital Projects. The Project Sponsor leads and coordinates this separate process, in consultation with the Office of the Vice-President (Administration and Finance).

8. A supplemental Minor Capital Project Approval Request is required when there are changes in the funding source(s) or the project budget requirement exceeds the original approval level as specified in Section 5., with the appropriate supporting documentation, as indicated in Section 4. Should the revised Project Estimate exceed the level associated with a Minor Capital Project, the request for approval must be made in accordance with the Procedure for Approval of Major Capital Projects and managed in accordance with the Procedure for Management of Major Capital Projects.

Policies using this procedure:


University Policies

230 Elizabeth Ave

St. John's, NL A1B 3X9 CANADA

Tel: (709) 864-2530

Fax: (709) 864-2552