To establish the fee structure in the project budget for the planning, design and construction work performed by the Department of Operations to cover the cost of planning, architectural and engineering design, project management and financial services.

II.       ACCOUNTABILITY

Under the direction of the President, the Senior Vice President for Administration and Senior Vice President for Finance shall ensure compliance with this policy. The Assistant Vice President for Operations and University Controller shall implement this policy.

III.      REFERENCES

The following policies provide additional and related information:

A.       Program Document                                                                00-01-70-20:00

B.       Renovation/Alteration/New Construction                                00-01-70-45:00

C.       Facilities Planning and Construction Project Management        00-01-70-70:00

IV.      POLICY

The project fees outlined below shall be included in the project budget along with other costs for project specific services.

A.       Planning and Project Management Fees:

The project budget shall include a Planning and Project Management Fee of 8.0 percent of the estimated project construction cost for performance of planning and management services.

Facilities Planning and Construction will provide planning services which include technical, informational and administrative services for project scope definition; programming; cost estimates; and assistance in the development of the appropriate Program Document as defined in University policy Program Document, 00-01-70-20:00, for approval by the end user, Finance Committee, Board of Trustees and other entities.

Facilities Planning and Construction will also arrange on behalf of the end user for feasibility analyses, existing conditions surveys, hazardous materials surveys, code compliance analyses and other detailed studies when these are necessary for the planning of the project.

Facilities Planning and Construction will

• provide internal project coordination
• single source project responsibility
• manage design, procurement and construction activities
• review and correct consultant design drawings and specifications
• organize, coordinate and lead the Project Team
• develop assignments, timetables and responsibilities for Project Team members for the duration of the project
• ensure that construction projects are built to specifications and quality standards, that schedules are maintained, and that construction is within the project budget
• ensure that adequate project testing and inspection occurs throughout the construction period
• close-out the project

B.       Financial Services Fee:

The project budget shall include a Financial Services fee of 0.375 percent of the estimated project construction cost for financial Operations including reports, analyses, construction account reconciliations and payments to vendors.

C.       Distribution of Fees:

Once the project has been approved, the Office of the University Controller shall transfer the above fees into the appropriate accounts.

When a project has been completed and closed out by the Project Manager, the Office of the University Controller shall indicate the remaining project budget balance, if any, in the project Plant Fund Account which is returned to the funding source.

By Direction of the President:

_____________________________________
Senior Vice President for Administration

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