PROCEDURE PP2005 - OFFICE OF PHYSICAL PLANT PROJECT REQUESTS AND BILLINGS
Systems and Procedures
A Division of The Corporate Controller's Office
IN

Procedure PP2005 - Office of Physical Plant Project Requests and Billings

Office of Physical Plant

Policy Steward facilitating procedure: Associate Vice President for Facilities Management

Table of Contents:


GENERAL:

The Office of Physical Plant (OPP) provides feasibility studies, design, and/or construction for projects based upon requests from University departments. The Project Request Form ( Exhibit "A" ) must be reviewed by a Facilities Coordinator (FC) or other authority representing the requesting department before being forwarded to the OPP Project Desk (PD). The Project Request Form is evaluated by the OPP PD to insure all required information is included in the customer request. PD identifies an OPP Project Leader (PL) to manage the project.

The FC or other authority representing the requesting department is the primary point of contact, or liaison, to OPP. This individual is charged with monitoring all project activity within the Academic or Administrative areas.

This procedure documents the processing of forms required to obtain proper authorizations, per Policy FN18 (University Approval Authorization), and the reporting of information required to have charges direct billed to the requesting department, per Policy FN16 (Interdepartmental Transactions) and Procedure CR2069 - Direct Billing , for construction projects completed by OPP.

ABBREVIATIONS

Abbreviation Definition
CAF Construction Authorization Form
FC Facilities Coordinator
OPP Office of Physical Plant
OPP PD Office of Physical Plant Project Desk
OPP P&E Office of Physical Plant Planning & Estimating
OPP PL Office of Physical Plant Project Leader
PD Project Desk
P&E Planning & Estimating
PL Project Leader
SBFR Special Budget Funding Request

PROCEDURE:

TO INITIATE A PROJECT WITH OPP

Once a department decides to have construction improvements executed in their respective area, a Project Request Form ( Exhibit "A" ) must be completed to document their intentions and forwarded to the OPP PD for review and evaluation by OPP. The form can be found on the OPP web site via "Quick Reference" . The requesting department must select one of the actions to be taken by OPP in Section 10 of the Project Request Form either feasibility study, design, or quotation/construction. The form, depending on desired action to be taken by OPP, requires the approval signature of the FC or other authority representing the department and requires a billing address, budget distribution, and approval signatures per Policy FN18 for any charges incurred. It must be routed through the respective FC or other authority representing the department for review before being submitted to OPP PD.

The requesting department may authorize OPP to begin directly with construction on a particular project, pending evaluation and review of the Project Request Form by OPP. This requires a maximum dollar amount be authorized and documented with approval signatures per Policy FN18 to cover the estimated project costs.

Feasibility Study

This action requests OPP to proceed with: a feasibility study, scoping estimate, survey, or permit application, etc. This requires the approval signature of the FC or other authority representing the department and requires a billing address, budget distribution, and approval signatures per Policy FN18 .

NOTE: If the request is for a scoping estimate for a project expected to be less than $25,000 with no design involved, OPP Planning & Estimating (P&E) does not charge for those estimating services. Direct billing authorization is not required.

Design

This action requests an OPP PL to manage and coordinate design for the entire project including soft costs (professional fees, testing reports, printing, etc.), construction documents, and a construction/project budget estimate. This requires the approval signature of the FC or other authority representing the department and requires a billing address, budget distribution, and approval signatures per Policy FN18 . The requesting department must obtain written authorization and approval signatures to direct bill for the design fees prior to beginning any design on the project.

Construction

This action requests an OPP PL to manage and monitor construction activities for the entire project based on the total construction/project budget estimate. This requires the approval signature of the FC or other authority representing the department and requires a billing address, budget distribution, and approval signatures per Project Request Form by OPP reveals a total construction/project budget estimate above the amount authorized on the form to complete the construction, then OPP will issue a Construction Authorization Form (CAF) ( Exhibit "B" ), to the requesting department for the additional funding. The requesting department must obtain written authorization and approval signatures for the revised amount to direct bill prior to OPP beginning any work on the project.

FUNDING EXCEPTION

For any project that is expected to exceed 1.0M, funding authorization is not to be requested via the Project Request Form or CAF . Instead, the respective PL will submit a Special Budget Funding Request (SBFR) to establish a special project budget. This is required for Board of Trustees reporting purposes. When a SBFR is processed, the required funds authorized for the project will be Journal Vouchered by the Corporate Controller's Office from the department budget into the special budget. All project costs will then be charged to the special project budget rather than being direct billed to the department budget.

EVALUATION OF A PROJECT REQUEST

Feasibility Study and Design

If the requesting department indicates either feasibility study or design on a Project Request Form, the OPP PL will either proceed with the preparation of a feasibility study or proceed directly to the design phase.

After completion and review of a feasibility study by the requesting department, the project can be moved to the next phase. A CAF is used to authorize OPP to proceed. The executed CAF provides funding authorization for OPP to move into the design phase. This requires the approval signature of the FC or other authority representing the department and requires a billing address, budget distribution, and approval signatures per Policy FN18 .

To proceed with a project directly to design, OPP requires authorization to direct bill design fees. Prior to submitting the Project Request Form, the OPP PL provides the requesting department a fee proposal documenting the amount of funding needed to complete the design phase. The fee proposal will include fees for soft costs (professional fees, testing reports, printing, etc.) as deemed appropriate. This requires the approval signature of the FC or other authority representing the department and requires a billing address, budget distribution, and approval signatures per Policy FN18 .

CONSTRUCTION

Before actual construction can begin on a project, the full construction/project amount must be authorized by the requesting department. The forms used to authorize OPP to begin construction on a project are either the Project Request Form or the CAF. A Project Request Form can instruct OPP to begin directly with construction on a particular project, pending evaluation and review of the Project Request Form by OPP. If the authorized amount on the Project Request Form is found to be inadequate based upon evaluation of the construction project by OPP, a CAF will be issued to obtain authorization for the total construction/project budget estimated amount.

If a project is indicated on the Project Request Form to proceed directly to construction, the full amount of the total construction/project budget estimate must be authorized prior to beginning any work on the project. If the project is to move from design into construction and funding is needed, a CAF will be issued by the OPP PL and will list in the body of the form a general outline of the construction/project budget estimate. Both instances require the approval signature of the FC or other authority representing the department and require a billing address, budget distribution, and approval signatures per Policy FN18 .

OPP will direct bill the costs of the project per the direct billing authorization stated on the CAF quarterly and/or at completion and final review of the project by the FC or other authority representing the requesting department and by the OPP PL.

Authorization to Review Funding for Change to Construction

The OPP PL must obtain approval from the requesting department for changes to the project scope or for unforeseen conditions encountered after contract award. Additional funding is required once the project contingency is exhausted. The OPP PL will submit a new CAF for authorization and signatures for the revised amount. The form used to fund these change(s) or revision(s) is/are the CAF .

A CAF lists change(s) or revision(s) to an originally approved construction budget estimate. These change orders may be due to a request from the originating department or to address unforeseen conditions encountered after contract award. Additional funding is required once the project contingency is exhausted. This requires the approval signature of the FC or other authority representing the department and requires a billing address, budget distribution, and approval signatures per Policy FN18 authorizing these additional costs.

OPP requires authorization to direct bill the balance due for all construction change orders. The revised amount will be direct billed quarterly and/or at completion and final review of the project by the FC or other authority representing the requesting department and by the OPP PL.

Generally, all project change orders require immediate attention so not to delay the completion of the project.

Billing of Construction Charges

The submission of charges and the processing of direct billing financial activity information for construction jobs must be processed per guidelines documented in procedure CR2069 - Direct Billing , and Policy FN18 - Interdepartmental Transactions . Approval documentation for long-term construction projects shall be valid for the life of the project up to the stated authorized amount. Due to the duration of some long-term construction projects, it becomes beneficial for OPP and the FC or other authority representing the requesting department to review the status of a project periodically, as funding authorization via CAFs do not encumber the funds on the requesting department's account.

Upon substantial completion of the construction project, OPP PL will review the status of the project with the respective FC or other authority representing the requesting department and complete a "punch list" for closing of the project. After final completion of the project, OPP Accounting Office will forward a final billing statement of any remaining charges for direct billing of that project/job to the billing address noted on the Project Request Form authorizing the project.

Any contention to the accuracy of the billing information by the department being charged must be made to OPP Accounting Office and/or the OPP PL.

COMPLIANCE REVIEW

It is the responsibility of the Financial Officer for OPP to review the direct billing operation at least once a year to ensure compliance with the provisions of Policy FN18 , Procedure CR2069 - Direct Billing and this procedure, PP2005.

AUDIT COORDINATION - FINANCIAL AND PROCEDURAL

The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.

RECORD RETENTION, DISPOSITION AND DESTRUCTION:

Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management , and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.

Upon expiration of a stated period of time, documents must be discarded and/or destroyed, unless permission is granted by Records Management Officer or designee to retain the records. Archival records created more than 20 years prior to the current date must be reviewed before destruction. Units should also contact the University Archivist before discarding any document which may be of permanent or historical value to the University. To safeguard the privacy of individuals, documents that contain salary information, personally identifiable information (PII), or student records must also be shredded. See Policy AD53 - Privacy Policy and AD22 - Health Insurance Portability and Accountability Act for additional information regarding privacy and the protection of an individual's personal information. For documents that must be shredded, departments may arrange for Blue Bag service by contacting the Blue/White Shredding Program of the Office of Physical Plant. Exceptions to the practice are as follows:

Additional questions may be directed to the University Archivist or the Records Management Officer.

EXHIBITS:

CONTACT INFORMATION:

For questions, additional detail, or to request changes to this procedure, please contact the Financial Officer, F&B Business Operations.

CROSS REFERENCES:


Procedure Status:

Date Approved: 5/15/15

Most recent changes:

Revision History (and effective dates:)