Accounting and Safeguarding of Assets
40.13 Administration of University Construction Issued: January 16, 2002
and Maintenance Projects
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
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
6. Minor Construction Project
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:
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.
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.
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
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
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:
|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
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