Administration of University Construction and Maintenance Projects

Accounting and Safeguarding of Assets


40.13     Administration of University Construction                                                   Issued: January 16, 2002
             
and Maintenance Projects                                                          



1.     Definitions

        
University Construction Project – The construction of new buildings, facilities or other permanent
        improvements that do not exceed $1,000,000 in cost, and projects for the repair, renovation or
        rehabilitation of existing buildings, facilities or other permanent improvements that do not exceed
        $2,000,000 in cost. [See System Policy 51.04 - Delegations of Authority on Construction Projects]

        
Maintenance Project – Generally, repairs and replacements involving a single trade and not requiring
        an Architect/Engineer (A/E) design.

2.    Delegations of Authority and Responsibilities

       
2.1     The Chancellor has delegated in System Regulation 51.04.01 to the President authority to
                 administer minor construction projects. Said delegation includes the authority to initiate the
                 project, appropriate funding (University funds only), select and contract with A/E firms, select
                 and contract with construction vendor, and any other tasks necessary to completion of the
                 project.

         
2.2    The President has assigned responsibility for the administration of minor construction, and
                  maintenance projects to the Physical Plant Department. To carry out this responsibility, the
                  Physical Plant Department has established a Planning and Construction Office.

3.      Project Requests

         
3.1     To initiate a project, the requesting department must complete and submit a Physical Plant
                   Job Order/Project Request form (see Attachment 1).

          
3.2    The Director of Physical Plant will review each Physical Plant Job Order/Project Request
                   and make a determination of whether the project meets the criteria for a Maintenance
                   Project or a University Construction Project and indicate determination on the form.

           
3.3    If the project is determined to be a Maintenance Project, the Director of Physical Plant will
                   notify the requesting department that either Building Maintenance or a private contractor will
                   perform the work.

          
3.4    If the project is determined to be a University Construction Project, the Director of Physical
                  Plant will forward the request to the Planning and Construction Office.

4.     Maintenance Project – Building Maintenance

        
4.1     For projects to be handled by Building Maintenance, the project is initiated by the user
                 department submitting a Purchase Requisition through the Interdepartmental Order (IDO)
                 process (see Administrative Procedure 10.01). The vendor on the Purchase Requisition
                 will be Building Maintenance.

      
 4.2     Upon receipt of a properly approved IDO, the Building Maintenance staff will handle all aspects
                of the project, including the procurement of materials, hiring of labor, scheduling of work, and
                inspection or work.

5.    Maintenance Project – Private Contractor

       
5.1     Initiation Process

                
A maintenance project is initiated by the requesting department submitting a Purchase
                Requisition to the Purchasing Office. If the requesting department has solicited quotes it
                should attach the quotes received to the Purchase Requisition. To ensure that the desired
                work is obtained, the requesting department should provide a complete description of work
                to be performed on the face of the Purchase Requisition or on an attached document.

       
5.2    Procurement Process

               
The procurement process is the same as for any other purchase of goods or services at the
               University. The Purchasing Office will take the necessary steps to ensure that the State and
               University bidding requirements and documentation are met and then issue a Purchase Order
               to the selected vendor. Upon completion of the project and receipt of an invoice, the Accounts
               Payable Office will obtain an approval to pay from the department receiving the services and
               then process it for payment.

               
Note: Vendors sometimes provide an invoice to the receiving department at the end of the job.
               When this occurs, it is important that the receiving department approve the invoice for payment,
               note the Purchase Order number on the face of it, and forward it immediately to the Accounts
               Payable Office.

6.     Minor Construction Project

        
6.1     General

                  
The University will adhere to The Texas A&M University System Construction Procedures
                  Manual. Exceptions to the procedures and forms contained therein will be approved by the
                  TAMUS Facilities Planning and Construction Office.

        
6.2      Project Initiation and Approvals

                   
6.2.1     Upon receipt of a Physical Plant Work Order Request for a minor construction
                               project, the Construction and Planning Coordinator will prepare a C-1 form to obtain
                               approval to initiate each requested project. Depending upon the size and nature of
                               the project, a C-1 may be prepared to fund the initial design work and then a second
                               C-1 prepared after the project has been designed and bid to fund the full project.
                               Sometimes circumstances make it is necessary to modify the scope and cost
                               of the project. When this occurs, a C-1 form must be completed to obtain approval
                               of the changes.

                   
6.2.2     The completed C-1 form is routed for the following approvals:





























Approval

Purpose

Requesting Budget Head

Approval of project scope and funding source.

Office of Sponsored Programs or Research Foundation

Approval of compliance with grant or contract requirements.

Construction and Planning Coordinator

Certification that C-1 form is correct and complete.

Director of Physical Plant

Certification that all Physical Plant requirements have been met.

Vice President for University Operations

Certification that all Physical Plant requirements have been met; Recommendation that project proceed.

Controller

Certification that sufficient funding is available in source account and that source of funds can legally be used for construction.

Vice President for Finance and Administration

Certification that all financial and legal requirements have been met; Recommendation that project proceed.

President

Approval of Project.


     6.3     A/E Contracting Process

              6.3.1     Specific minor construction projects will be assigned to an eligible A/E firm based
                          upon project requirements, availability and interest of firm in the project, ability of firm
                          to meet project time lines, etc. An A/E contract amendment will be executed for each
                          project assigned. [See Section 11 for contract approval process.]

              6.3.2     Upon execution of the contract amendment, the Construction and Planning Coordinator
                          will submit a Purchase Requisition (with copy of contract amendment attached) for the
                          full amount of the amendment to the Purchasing Office for processing of a Purchase
                          Order.

      6.4    Construction Bidding and Contracting Process

               6.4.1    Upon approval of the project design, the Construction and Planning Coordinator will put
                           together a bid package containing the scope of work, construction contract form,
                           design and work specifications, and all required standard forms relative to the project.

               6.4.2     A Request for Bid (RFB) will be issued and advertised by the Purchasing Office in
                           compliance with System Policy 51.01 – Advertising Policy for Construction Projects,
                           including posting on the Texas Market Place. The Construction and Planning
                           Coordinator will initiate newspaper advertisements with Purchase Requisitions.
                           The RFB will require bids to be submitted directly to the Purchasing Office.

               6.4.3     Bids will be secured by the Purchasing Office until the scheduled bid opening. The bid
                           opening will be jointly administered and witnessed by representatives from the
                           Purchasing Office and the Physical Plant Department. The Purchasing Office will
                           document attendance and tabulate bids received using its standard forms.

               6.4.4    The Construction and Planning Coordinator, with consultation of the assigned A/E firm,
                           will review the bids and make the selection based upon conformance to bid requirements
                           and the bid amount. Generally, the lowest qualified bid will be awarded the contract.
                           Justifications for selections other than the lowest bidder will be documented.

               6.4.5     The selected contractor will be asked to execute the standard construction contract
                            form. [See Section 10 (below) for required contract approvals.] Upon execution of the
                            contract and upon receipt of required bonding and insurance documentation by the
                            University, the contractor is authorized to begin construction.

               6.4.6      If during the construction project a change to the project specifications is required to
                            address an issue identified and the issue is within the original project scope, the
                            standard Change Order form will be processed by the Construction and Planning
                            Coordinator and approved by all parties who approved the original contract. Except
                            in the case of an emergency, work associated with the Change Order will not be
                            authorized until all approvals are obtained.

               6.4.7      Upon execution of the construction contract, the Construction and Planning
                            Coordinator will submit a Purchase Requisition to the Purchasing Office for issuance
                            of a Purchase Order. Upon execution of a contract amendment, the Construction and
                            Planning Coordinator will submit a Purchase Requisition to the Purchasing Office to
                            increase the amount of the Purchase Order for the original contract. Copies of the
                            contract and/or contract amendment must be attached to the Purchase Requisition.

      6.5    Payment Process

               6.5.1     The University will adhere to the payment processes contained in the standard A/E and
                            construction contract forms.

               6.5.2     Upon receipt of a billing from an A/E or construction contractor, the Construction and
                           Planning Coordinator will review and verify that the billing amount is correct and
                           conforms to the contract and that the work has been completed. The Construction
                           and Planning Coordinator will prepare and approve a Construction Voucher and submit
                           it to the Accounts Payable Office for processing. The applicable Purchase Order and
                           Project Account numbers must be referenced on the voucher.

      6.6     Project Design and Management Fees

               6.6.1    The project design and management fees for Physical Plant Construction Projects
                           will be handled as follows:

                           Project Design                  The A/E fee will be negotiated for each project. An A/E fee in                                                                   excess  of 10% of the construction cost must be approved by                                                                   the Vice President for Finance and Administration.

                          Project Management          Each project will be assessed a 5% management fee to help
                                                                  defray the cost of administering projects.

              6.6.2    The project design fees will be paid to the A/E using the prorated payment schedule
                         provided for in the A/E contract. The project management fees will be billed by the
                         Planning and Construction Office on a monthly basis by IDO, based upon project
                         expenditures for the month.

      6.7    Project Accounting and Close-outs

              6.7.1    Upon completion of the construction project and payment of all billings, the Planning
                         and Construction Office will prepare the standard C-30 form to close out the project and
                         revert any unspent funds to the source accounts. As part of the close out, the Planning
                         and Construction Office will determine the proper breakdown of project costs between
                         capital and non-capital. Within the capital category, a breakdown by asset class to
                         meet the State Comptroller’s componentization requirements will be provided. The C-30
                         form should be completed and processed within 90 days of the project completion.

              6.7.2    Upon receipt of the C-30 form, the General Accounting Office will prepare the necessary
                          journal entries to record the reversion of funds and close out of construction costs from
                         Construction in Progress to the appropriate asset accounts and/or expense codes.

7.     Telecommunications and Campus Net

        7.1   Telecommunications Projects must be submitted to the University’s Telephone Office. The
                Director of Telecommunications is responsible for administering the project and providing proper
                coordination with the Physical Plant Department. A copy of all As-Built Drawings for each
                project will be submitted to the Construction and Planning Office for record.

        7.2   Campus Net Projects must be submitted to the Information Technology Services Department.
                The Associate Vice President for University Operations is responsible for administering the
                project and providing proper coordination with the Physical Plant Department. A copy of all
                As-Built Drawings for each project will be submitted to the Construction and Planning Office
                for record.

8.     A/E Selection Process

       8.1     Projects $600,000 or less
 
                8.1.1    To expedite individual construction projects, the University will select
                           Architectural/Engineering (A/E) firms to be on its approved A/E list.

                8.1.2    Interested A/E firms will be invited through a Request for Qualifications (RFQ) to
                           submit information on their credentials, experience, prior projects, and references.
                           The RFQ will be advertised in accordance with System Policy 51.01 – Advertising
                           Policy for Construction Projects, including posting on the Texas Market Place.

                8.1.3   The selection of A/E firms will be based upon a review of the interested firms’
                          qualifications. The selections will be made by the Construction and Planning and
                          Coordinator and the Director of Physical Plant.

                8.1.4   The selected A/E firms will be asked to execute the University’s standard A/E contract.
                           [See Section 10 (below) for required contract approvals.] All firms that have a fully
                          executed contract on file will be eligible for University construction projects.

        8.2    Projects over $600,000

                For projects over $600,000, the procedures promulgated by TAMUS Facilities Planning and
                Construction will be used.

9.     Physical Plant Review and Inspection Process

        All University construction and maintenance projects will be inspected by appropriate Physical
        Plant Department personnel. The purpose of the reviews and inspections is to ensure University
        facility standards are maintained. The requesting department or construction project will be billed
        for inspection services.

10.    Contract Approvals


         All construction related contracts will be subject to the following approval process:




























Approval Purpose
Construction and Planning Coordinator Certification that all requirements of the bid and/or selection process have been met and that vendor is qualified.
Director of Physical Plant Verification that all Physical Plant requirements have been met.
Vice President for University Operations Verification that all Physical Plant requirements have been met; Recommendation that contract be executed.
Purchasing Agent Certification that all State, System, and University bid requirements have been met.
Training & Compliance Officer Review and approval for legal sufficiency.
Controller Verification that adequate funding exists in project.
Vice President for Finance and Administration Certification that all financial and legal requirements have been met; Recommendation that contract be executed.
President Approval of contract.



Contacts:     Director of Physical Plant
                   
Controller





 

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