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Memorial University of Newfoundland

  Memorial University of Newfoundland

Capital Projects

Approval Date: 2015-12-03

Effective Date: 2016-12-20

Review Date: 2019-12-03

Authority:

Campus Planning and Development Committee through the Vice-President (Administration and Finance)

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. For Information Technology projects, refer to the Information Technology Project Approval policy.

Definitions

Campus Facilities Management — Refers to the unit(s) at each campus responsible for management of facilities and capital work.

Concept Design — An early developmental stage of a project representing design development drawings at 30% and a Class D estimate.

CPDC — Campus Planning and Development Committee. 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.

Major Capital Project — A capital project that has a funding requirement in excess of $5,000,000, and may include:

Funding is assigned outside of the University operating budget.

Minor Capital Project — A capital project that has funding requirement equal to or less than $5,000,000 and may include:

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 Manager — The individual assigned from Campus Facilities Management who is responsible for the effective execution of the project work.

Project Sponsor — Senior administrator whose role is to champion, oversee and advocate for the project, its requirements, and ensure support within the University community.

SAC — Selection Advisory Committee. 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, which is chaired by the Project Sponsor, and 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.

University — Memorial University of Newfoundland.

VPC — Vice-Presidents Council.

Policy

1. Minor Capital Projects will be approved at the appropriate operational level within the University and in accordance with the Procedure for Approval of Minor Capital Projects and the Procedure for 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. The 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
Government of Newfoundland and Labrador Infrastructure Approval Framework

 

Procedures

For inquiries related to this policy:

Department of Facilities Management, 709-864-7600

Sponsor: Vice-President (Administration & Finance)

Category: Operations

Previous Versions:

There is at least one previous version of this policy. Contact the Policy Office to view earlier version(s)

Approval Date 2015-12-03   Effective Date 2015-12-03
Approval Date 2010-02-08   Effective Date 2013-04-09
Approval Date 2010-02-08   Effective Date 2010-02-08
Approval Date 1999-06-10   Effective Date 1999-06-10

Policy Amendment History

Action: REPLACED
Date: 2019-05-23 15:46:25

This policy was replaced with a new version. Comment provided: Connected definitions using the definitions from the glossary.



Procedure for Approval of Major Capital Projects

Approval Date: 2016-12-06

Responsible Unit: Department of Facilities Management

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 Campus 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 Campus 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
c. Review and approval by the Board of Regents Finance Committee; and
d. 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 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.

 


Procedure for Approval of Minor Capital Projects

Approval Date: 2016-12-06

Responsible Unit: Department of Facilities Management

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.


Procedure for Identification and Preliminary Authorization of Major Capital Projects

Approval Date: 2016-12-06

Responsible Unit: Department of Facilities Management

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;
b. Vice-President or Associate Vice-President;
c. A Dean, Director, or equivalent; or
d. Members of Campus 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 Campus 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 Management of Major Capital Projects

Approval Date: 2016-12-06

Responsible Unit: Department of Facilities Management

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 Campus Facilities Management. Representatives from units other than Campus 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 Campus 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 Campus 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 Campus 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)

9. Detailed designs are completed only after VPC and CPDC approvals have been granted. Detailed designs include an operational review by Campus 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 Open Call for Bids. The Project Management team evaluates the tender results and prepares a recommendation with regard to contract award. The Director of Engineering and Construction, Campus 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. Campus Facilities Management completes and commissions the Major Capital Project.

14. Campus Facilities Management regularly reports the status of Major Capital Projects to the CPDC, through VPC and the President.

15. Campus 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 Management of Minor Capital Projects

Approval Date: 2016-12-06

Responsible Unit: Department of Facilities Management

1. Prior to executing the Minor Capital project, approval must be granted in accordance with the Procedure for Approval of Minor Capital Projects. Minor Capital Projects which engage external services or contractors must follow the process outlined in this procedure.

2. The Project Sponsor must establish and document administrative issues such as funding sources, initial cash flow projections, and accounting processes.

3. The Project Sponsor, in consultation with Campus Facilities Management, may establish a Steering Committee, which has overall responsibility in relation to the project. The size of the committee should reflect the scope of the work and the representation of stakeholders.

4. A Project Manager is assigned within Campus Facilities Management. In certain cases, a Project Management Team may be established including representatives from Campus Facilities Management, and other units 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, within the approved construction budget, for the project and responsibility for ensuring that design development proceeds on the basis of approval granted through the Procedure for Approval of Minor Capital Projects.

5. The Project Sponsor, in collaboration with Campus Facilities Management, may establish Stakeholder Groups, as needed, comprising representatives of primary facility occupants and/or users, who provide input on program development and identification of functional requirements. The Stakeholder Groups should be representative of the scope of the project.

6. A Consultant Team(s) may be appointed by Campus Facilities Management based on the requirements of the project and in accordance with the Procedure for Selection and Appointment of Consultants for Minor Capital Projects.

7. For Minor Capital Projects which require approval of the Associate Vice-President (Facilities), a scope definition or functional program definition document must be developed through consultation among the Project Manager, Project Management Team, if established, the Stakeholder Groups, if established, the Project Sponsor, and Consultant Team(s), if appointed. Project Sponsor or designate is required to formally approve this document.

8. Concept Design is prepared on the basis of the scope 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 Minor Capital Project Approval. See Procedure for Approval of Minor Capital Projects.

9. 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 submission will be sent to the Project Sponsor for approval. (See Section 10)

10. Detailed designs are completed only after required approvals have been granted. Detailed designs include an operational review by Campus Facilities Management for confirmation of adherence to 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.

11. In cases where the Project Sponsor identifies that the revised construction budget estimates cannot be accommodated through program revision without serious impact on feasibility of the project, the Project Sponsor retains the right to seek approval for consideration of additional funding, following the Procedure for Approval of Minor Capital Projects. This resubmission may apply at any stage of the design process. If the funding requirement is such that the project becomes a Major Capital Project, approval must be sought in accordance with the Procedure for Approval of Major Capital Projects.

12. The contract documents are issued in accordance with the Procedure for Open Call for Bids. The Project Manager or Project Management team evaluates the tender results and prepares a recommendation with regard to contract award. The Project Manager ensures that all tender results are reviewed and that the recommendation is forwarded to the Project Sponsor.

13. The Project Management Team carries out construction management and administration. Periodic updates on project status are made to the Steering Committee and Stakeholder Groups, where applicable.

14. Campus Facilities Management completes and commissions the Minor Capital Project.

15. Campus Facilities Management regularly reports the status of Minor Capital Projects valued at more than $500,000 to the Associate Vice-President (Facilities), and to Vice-Presidents Council, in cases where the Minor Capital Project is valued at $1,000,000 or more.

16. Campus Facilities Management is required to perform a post-contract evaluation that reviews all aspects of the project delivery.

17. A formal project completion notice must be submitted to the Project Sponsor, and where applicable VPC.


Procedure for Selecting a Prime Consultant via a Request-for-proposals Process

Approval Date: 2015-12-03

Responsible Unit: Department of Facilities Management

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:

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 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 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

Approval Date: 2016-12-06

Responsible Unit: Department of Facilities Management

1. The Engineering and Construction section of Facilities Management on the St. John’s campus prepares and maintains a list of qualified consultants as a source file that is reviewed and approved at the start of each calendar year by the Associate Vice-President (Facilities). 

2. The list is inclusive of information relating to consulting firms’ capabilities and expertise, past performance, and noted strengths and weaknesses which aids in the assignment of projects to consultants based on the project requirements.

3. The Director of Engineering and Construction continually accepts updated information from those firms in the list and as well as submissions from those firms wishing to be included in this list.

4. For Minor Capital projects whose funding value is $1,000,000 or less or for specialized consulting  in support of studies, plans or maintenance whose direct consulting fees are $50,000 or less, Project Managers at all campuses consult the list, seek advice of the Director of Engineering and Construction, where applicable and assign / award the commission to a suitable, qualified Consultant based a review of their capability, suitability, resource availability, managerial ability and proposed fee.  The decision is communicated to the Consultant as well as the Director of Engineering and Construction.

5. For Minor Capital projects whose costs are $1,000,000 or more, the following process must be followed.

a. Prime Consultants are selected through a Limited Call for Proposals process.  Campus Facilities Management determines the type of consulting service required and develops a  Project Brief for use in the selection process outlined below.
b. Campus Facilities Management recommends to the Associate Vice-President (Facilities) a Selection Advisory Committee (SAC) consisting of:

 i. Representatives of both the Stakeholder Groups and Project Management Team, and
 ii. Others as appropriate for the project

c. Individuals who are recommended for the SAC must be aware of and comply with the Universities Conflict of Interest policy.
d. The Associate Vice-President (Facilities) approves the membership of the SAC.
e. The Project Manager consults the list, seeks advice of the Director of Engineering and Construction, where applicable and establishes a shortlist of suitable, qualified consultants  based on a review of their capability, suitability, resource availability, managerial ability and proposed fee.
f.
The Project Manager invites a minimum of two (2) candidate Prime Consultants to submit a brief indicating the makeup and expertise of the architectural and/or engineering team (including sub-consultants) proposed for the project, the understanding of the proposed project, the manner in which the work is intended to be performed, and the fee structure. At the discretion of the Director of Engineering and Construction, a Request-for-Proposals process may be used.  See Procedure for Selecting a Prime Consultant via a Request-for-proposals Process.
g. The SAC prepares a report on its findings which clearly identifies the strengths and weaknesses of each candidate Consultant and includes a recommendation of the preferred Consultant.  The report is forwarded for review and approval by the Associate Vice-President (Facilities). Upon approval, the Project Manager communicates the decision to the successful Consultant, as well as the Director of Engineering and Construction and the Project Manager.
h. Presentations may be requested from shortlisted Consultants in order to make the final recommendation for negotiation of a contract.

6. On an annual basis, the Director of Engineering and Construction prepares a report, the same report prepared in accordance with the Procedure for Selecting a Prime Consultant via a Request-for-Proposals Process, 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.