WESTERN ILLINOIS UNIVERSITY CONSTRUCTION PROJECT PROCEDURES WESTERN ILLINOIS UNIVERSITY CONSTRUCTION POLICY

Transcription

1 WESTERN ILLINOIS UNIVERSITY CONSTRUCTION PROJECT PROCEDURES WESTERN ILLINOIS UNIVERSITY CONSTRUCTION POLICY Management of all campus construction projects will be provided exclusively through the Facilities Planning and Construction (FPC) division of the Western Illinois University Physical Plant. This includes, but is not limited to planning, programming, design, construction, renovation, remodeling, or any modification of all Western Illinois University facilities, infrastructure, utility, and campus landscape. This guide describes steps, timelines, lines of authority and procedures from project inception to project completion. These procedures adhere to University policy, and the policies and rules of the State Capital Development Board (CDB), the Illinois Board of Higher Education (IBHE), and State Procurement Code. CONTENTS Construction Western Illinois university Construction Policy... 1 Project Procedures from Inception to Completion... 2 Project Expectations... 4 Construction Timelines... 7 Final Construction Costs... 7 Maintenance versus Project... 8 Final Policy Provisions... 8 Project Timelines and Approvals /6/2011 Page 1 of 15

2 PROJECT PROCEDURES FROM INCEPTION TO COMPLETION 1. A construction project is requested by entering an electronic work request in the Sprocket system. 2. A project manager will be assigned by Facilities Planning and Construction (FPC) to work with the person requesting the project. The project manager will work with the project requestor to develop the project scope and provide an estimated cost of the project. 3. FPC will contact other campus entities to review their potential involvement in the project. This may include but is not limited to: University Technology (UTech), Equal Opportunity & Access (EOA), Disability Resource Center (DRC), Campus Council on Planning & Utilization (CCPU), Master Plan Implementation Team. 4. FPC may require a planning study to develop project scope, evaluate alternate project options, develop conceptual plans, or estimate probable project costs. The project manager will work with the requestor to initiate and develop the study. 5. Estimates and finished studies are returned to the project requestor. A project initiation window will be provided. This will include a proposed construction strategy for in house, contract, or combination of construction delivery methods. These estimates are usually good for six months. Form FPC 001; Project Estimate Memorandum. 6. Project approval documents and funding authorization is returned to FPC before the cost estimate window expires or the findings of a programming study become no longer valid. 7. A Quality Based Selection process (QBS) is initiated by FPC if an external designer will be used. 8. If needed, a detailed design and programming study will be developed. Several design iterations may be necessary depending on the complexity and scope of the project. The project design documents are initiated by FPC, either internally or with an A/E firm. 9. Design review process is coordinated by FPC with the project requestor and project users. This process may include other campus and external entities including but not limited to: UTech, EOA, DRC, CCPU, State Plumbing Inspector, Fire Marshall, University Insurance Carrier. 12/6/2011 Page 2 of 15

3 10. Design is completed. 11. In house construction period identified, or a bid date is set by FPC, Procurement Office, and/or CDB when required. 12. In house projects are constructed, and commissioned by FPC and then turned over to the requesting department. Funds to pay for the project will be encumbered and actual project costs transferred electronically by the Business Office, to the Physical Plant. 13. Project bids are secured and evaluated for completeness and available funding by FPC and the Procurement Office. 14. FPC and project requestor jointly issue a memorandum to award or reject contract bids by the appropriate University or State authorities. 15. Project is constructed with overview of FPC. The FPC Project Manager is the only conduit for communication between the construction firm and the University. FPC provides periodic schedule and budget updates to the project requestor as the project progresses. 16. The Project Requester must always be accompanied on the construction site by an FPC representative or the Project Manager. 17. FPC will negotiate any required project change orders to accommodate changing or unknown conditions or for the purpose of altering project scope. 18. Upon final completion, the project undergoes final acceptance. Form FPC 002 Project Final Completion completed by FPC and occupancy by owner. 19. A 12 month project warranty period begins. 20. Expired cost estimates or projects with rejected bids may be reinitiated by the requestor to update scope and costs estimates for reevaluation of funding. 12/6/2011 Page 3 of 15

4 PROJECT EXPECTATIONS Projects must comply with State and Federal Codes and the current Campus Master Plan. When a proposed project cannot be identified in the Campus Master Plan, it must not directly interfere with or negate any part of that plan unless so recommended by the campus Master Planning Implementation Team and approved by the President or their designee. Projects may be subject to approval by the campus Master Planning Implementation Team. FPC will determine whether a project proposal requires evaluation and recommendation by the Master Planning Implementation Team and approval of the President or their designee. Project designs will incorporate institutional quality methods, materials and equipment selected for superior maintainability and longevity. Institutional quality materials may increase first cost, while improving lifecycle cost through longer service lives and lesser maintenance costs. FPC may modify this strategy for emergency or urgent projects, and in economic conditions when funding does not allow for use of lifecycle cost principals. Project designs will follow all the WIU design guidelines. At a minimum this includes the Building guidelines, Exterior Landscaping Guidelines, and University Technology Standards Project designs will meet or exceed all required building codes. Project designs shall incorporate sustainable design methods and energy efficient building systems that meet the highest practical LEED or equivalent certification criteria. All new construction on campus will meet minimum LEED Silver or equivalent certification criteria. Major renovations will be designed and constructed to LEED or equivalent certification criteria when it can be demonstrated that the cost of LEED design elements will be returned as cost savings from higher energy performance or maintainability during the expected service life of the facility. FPC may waive LEED criteria for emergency or urgent projects and in economic conditions when funding does not allow for use of lifecycle cost principals. Project estimating, selection of a design team, design of project, project scheduling, and construction management are functions that are provided exclusively by FPC. FPC will seek all necessary project approvals from senior University Administration, University Board of 12/6/2011 Page 4 of 15

5 Trustees, the Procurement Office, Illinois Board of Higher Education and Capital Development Board as may be required to authorize construction of a project. FPC provides cost estimates: not quotes or bids to inform project requestors of the most probable expected cost of a project. Cost contingencies are added to project estimates to cover expected inflation during the period from design to construction as well as other project related risks, such as uncertainty of conditions to be encountered during construction. Projects with high uncertainty of conditions, such as renovations of an older facility, will incorporate higher contingencies than new construction. FPC does not negotiate project cost estimates with requestors. If cost estimates provided by FPC exceed available funds or the budget expectations of the project requestor, the following recommendations may be made by FPC: 1) The requestor is asked to reduce project scope without substantially affecting intended project functions. 2) The requestor is asked to increase project funding. 3) It is recommended that the requestor cancel the project. Project bid packages may include alternates as approved by FPC in order to optimize the use of available project funds. Alternates will not be used in construction documents to overcome significantly underfunded projects relative to estimates provided by FPC. FPC will not utilize alternates when the omission of an alternate at contract award would substantially affect the intended functions of the project. When projects are planned to be phased in over several separate projects, or initially built for the purpose of completion at a later time or finish out by others, FPC will utilize alternates and unit item bids to maximize use of available funding. FPC is fully authorized to make these determinations on behalf of a project requestor. However, if FPC does not agree that a phased project proposed by a requestor is in the best interest of the University, it may ask the department to seek further recommendations from the Master Planning Implementation Team, or approval of the Vice President of Administrative Services, the President or their designee. Project funding requirements identified by FPC are not negotiable and must be authorized in total by all appropriate University authorities and fiscal agents before major projects are designed and bid out for construction. Projects are bid out for construction in strict accordance with State Procurement Code, WIU procurement policy, and CDB provisions whenever required. 12/6/2011 Page 5 of 15

6 Construction labor costs estimated by FPC are based on current legally binding prevailing wage rates established by the Illinois Department of Labor. Prevailing labor rates must be used by contractors and for University compensation of its own in house crafts and trades. Department of Labor wage rates are in many cases higher than those employed for similar work performed on private residences and small businesses in the local community. Please note that such reduced local labor rates may not be legally used on University construction contracts for in house work on campus. Project coordination and communication with A/E design firm and with construction contractors will be accomplished exclusively by FPC. Any required meetings or other project related communications that involve a contractor, trade persons and the project requestor must take place in the presence of authorized FPC personnel. Certain project activities including funding approvals, authority to proceed, and other critical path issues required of the requestor shall be executed in a timely manner by the requestor so as not to delay formal project schedules. Employing A/E firms to design projects will add between 8% to 13% project costs and is a funding responsibility of the requestor. While FPC will discuss in house versus external design, as well as contract construction versus in house construction services with a project requestor, FPC will make the final determinations regarding all design processes and construction delivery methods. There are no service charges for FPC labor used in development and management of campus projects. However, when the local cost of printing or copying of studies, drawings, renderings and project related materials exceeds $200, FPC may include these costs in project estimates or project invoices. In some cases FPC may be allowed to charge back its direct labor costs to a department when a project requestor refuses to proceed with project bid or award without also having adequate justification. FPC will not bill departments to reimburse costs when projects are cancelled due to lost funding, cancelled grants, University wide budget freezes, State rescissions, or other circumstance beyond the control of the requestor. Funding Constraints, Project Design and Funding Timelines The Physical Plant s dual responsibilities to campus include maintenance and construction. With its limited resources, Physical Plant trades personnel may be assigned both 12/6/2011 Page 6 of 15

7 maintenance and project responsibilities concurrently. As continuing daily operations of the University are the most important responsibility of Physical Plant, construction contracting is used on many campus projects as opposed to using its own in house workforce. It can be extremely challenging to accomplish departmental projects given existing deferred maintenance liabilities and expiration of State funds at the end of a fiscal year. FPC is unable to change these constraints and project realities. As such it is exceedingly important that departments adhere to timelines provided by FPC, executing their responsibilities to secure funding and approvals, and to provide critical design information within as requested by FPC. Departments will be notified in writing when project critical path issues are found to be their specific responsibility. Failure of project requestors to meet documented timelines will likely result in costly project delays for which FPC cannot be responsible. CONSTRUCTION TIMELINES FPC will make every effort to ensure that projects are designed, constructed and completed within target timelines. However, due to the nature of remodeling aged and obsolete facilities, many campus projects can be delayed due to unknown conditions. Completing contracted construction projects on time is complicated by the State s use of Multiple Prime Contractors in lieu of a single General Contractor. When using Multiple Prime Contractors it is not easy to use liquidated damages to reinforce construction completion dates. Without liquidated damages, some financial leverage with contractors to effectively adhere to contract completion dates is lost. Fortunately, most projects are completed in reasonable periods of time anticipated during programming and design. FINAL CONSTRUCTION COSTS Payment of all design and construction costs are the responsibility of the project requestor s department. This includes changes in scope and contract change orders needed to cover the cost of unknown conditions discovered during construction. FPC and commissioned A/E firms make every effort to limit project change orders by fully 12/6/2011 Page 7 of 15

8 researching conditions affecting project design. However, not every site condition may be discovered and documented during design. For these reasons change orders are the responsibility of the requester. Physical Plant will not supplement project costs with its own funding for required project change orders. Change orders may typically add up to 2% to the final total cost of a project. However, this rule of thumb percentage may not apply to low cost projects, difficult renovations in older buildings, projects that involve significant utility or mechanical construction, site work, historic restoration or projects where the requestor has not affectively communicated the scope and needs of their projects. MAINTENANCE VERSUS PROJECT In some cases, certain specific project requirements may also be listed in the campus deferred maintenance backlog or a portion of the project scope may be considered unfunded capital renewal. Project requestors will be notified when part of their expected project funding responsibility includes a deferred maintenance or capital renewal item. The scope of these items might include utility line replacements, HVAC replacement, code compliance issues for fire, safety, and disability, roof repairs, carpeting, etc. If a project includes a deferred maintenance item that was to be funded by Physical Plant during the project construction period, project funding may be supplemented by only those existing funds that were to be made available for that specific deferred maintenance item. However, unless otherwise directed by senior University administrators, other fully funded and higher priority deferred maintenance items will not be cancelled to supplement a deferred maintenance priority included in a departmental project request. FINAL POLICY PROVISIONS This policy and all requirements specified are given under the authority of the President of the University and are enforceable through the Vice President of Administrative Services, the President or their designee. 12/6/2011 Page 8 of 15

9 PROJECT TIMELINES AND APPROVALS Project approvals Required for Total Projects Costs of: Purchases of $500 or greater require prior approval from the respective Dean/Vice President. Purchases of $100,000 to $499,000 require prior approval from the President of the University. Over $500,000 WIU Board of Trustees (Quarterly meetings) Project requests for work to be completed during the summer construction period are due to F,P&C by February 1 st. This date will depend on the work load for F,P&C to estimate and design the project as well as the purchasing department to process the RFP if required. 12/6/2011 Page 9 of 15

10 Definitions A/E Design Firm: An Architectural and/or Engineering professional design firm that is retained by the University Physical Plant or CDB to program and design a project. The A/E firm is primarily managed by Physical Plant, except for large state funded projects that are co managed by Physical Plant and the CDB. A/E design fees typically range from 8% 13% of total project costs depending on project type and complexity. AFS Projects: Projects for the AFS system such as annual Remodeling Repair and Restoration Replacement (R&R) or a specific project for AFS. Alternate Bid: An independent bid for additional work items to be added to (additive alternate) or deducted from (deduct alternate) the base bid at the option of the university contract awarding authority. Appropriated: The State funded portion of the University. Auxiliary Facilities System(AFS): Portion of University not funded directly by State funds. Examples include Residence Halls and University Union. Base Bid: The sum of all prime bids or single bid for the primary project scope, generally expected to be >80% of the total constructed cost of the project. Beneficial Occupancy: A term used when the project requestor or university staff may begin using the facility or when taking over maintenance and operational responsibility for the project begins. (See also Substantial Completion ) Boiler Plate: Legal and contractual documents that bind the contractor to the owner and State of Illinois for performance at specified consideration. Bond, AFS (Auxiliary Facilities System) (Bond or Auxiliary Enterprise): A portion of the University that is funded through room, board & fees and/or other revenues not provide through State appropriations. Budgetary or Conceptual Estimate: A broad based cost estimate used to evaluate the probable dollar cost of a project or to compare the costs of project options. This type of estimate is not used as a basis to fund a project. (See also Detailed Cost Estimate ) 12/6/2011 Page 10 of 15

11 Capital Renewal Project: A large project typically that replaces aged or obsolete equipment and building systems or utility and plant infrastructure. Capital renewal also refers to remodeling, renovation and exterior restoration of buildings. Much of what is classified by universities as deferred maintenance is actually is a capital renewal need of the campus. CDB (Capital Development Board): A state agency that monitors the QBS, and contracts the A/E firms engaged in the design of state funded projects. CDB charges universities and State agencies 3.5% of total project costs as a project administration fee. Certain Contract language: Owner is WIU or the University. A/E is the Architectural and Engineering firm contracted to accomplish the design and provide some construction management overview. The Contractor is the company or companies awarded contract(s) to construct a project. Construction Drawings (CD): The actual drawings used to bid out the construction of a new facility, renovation, remodel, or modification. The drawings used by a contractor or Physical Plant to construct the project Contract Change Orders: A process to increase or in some instances decrease the scope and cost of a project by adding, changing or deleting work after the construction contract is started. A change order process is a legal procurement process that may only be initiated and approved by FPC through the Procurement Office and must meet the requirements and limitations of the State procurement code and policies of FPC, as well as the CDB when applicable. The departmental project requestor may request a change in project scope from the FPC project manager but may not discuss specific project scope changes or cost implications directly with any contractor associated with the work or outside contractor not associated with the work. Contract Documents: Construction drawings and specifications that make up the bidding package and documents used to construct project. Contract Time: The period of calendar days or an exact date specified in a construction contract in which the contractor is required to be substantially complete with the project. Critical Path: The sequence of activities that must be completed on schedule for the entire project to be completed on schedule. 12/6/2011 Page 11 of 15

12 Critical Task: Each task on the critical path. If a Critical Task is delayed the entire project will be delayed. Deferred Maintenance: Typically refers to an extensive project list of mostly unfunded or backlogged projects that affect the function and appearance of nearly every facility on campus. Originally referred to accelerated equipment or facility longevity due to declining state funding of public institutions of higher education. Departmental Project: A project that is initiated and paid for with departmental funds. Departments include all campus entities not part of AFS. Funds may be sourced from appropriations, gifts, income, or grants. Design Development: After Schematic Design is complete this step crystallizes the design concept and starts developing Construction Drawings. Detailed Cost Estimate: A specific cost estimate that is intended to reflect the actual cost of a project for a period of time. These estimates can be used to secure project funding for up to six months after they are completed. Detailed Design Phase: This phase includes interaction between the Project Users and the design team that results in a completed project design. Drawings: Detailed schematics that are used with the specifications to completely describe the project. Final Completion: Projects reach final completion when all construction has been completed, the punch list is completed and full ownership has been transferred to the building occupants. This starts the 12 month warranty period. (See also Substantial Completion ) In House Construction: Projects that are constructed by trades professionals employed by the Physical Plant, usually on projects designed by Facilities Planning and Construction. In House Design: Projects that are designed and managed by the Physical Plant Facilities Planning and Construction design team. Item Bid or Unit Cost Bid: A bid for a unit of work such as cubic foot of excavation or square yard of concrete work. Contract cost is determined by the unit rate of cost times the units approved and documented completed by FPC on the project. An example might be cost per cubic yard of excavation that is used in a contract when it is 12/6/2011 Page 12 of 15

13 indeterminable how many yards of excavation will be required until after the project begins. Liquidated Damages: A contractually specified amount to be paid by the contractor to the owner for not completing a project within the stated contract time. Liquidated damages are tied to estimated real costs or lost revenues of the owner when it is unable to occupy or use the constructed facility after the specified date stated in the construction contract. Liquidated damages are not penalties charged to a contractor to punish them for not completing a project on time. Maintenance Project (Permanent Improvement, or PI Project): A project that is related to maintenance or minor capital renewal of the university buildings, and infrastructure not paid for out of standard operations and maintenance budgets. Major Capital Project: Typically, any project exceeding $1 million for design, construction or major renovation and remodeling of a new or existing building. Funding is not limited to State appropriations or AFS. Mixed Use Facility: A facility or utility infrastructure that is used by both Appropriated and AFS functions. Preliminary Design: The initial graphic design layout or floor plan of spaces that may include interior or exterior views of the planned facility. Prime Contractor, General Contractor, Subcontractor :Prime contractors will have contractual responsibility to the university or State for a general area of the construction process such as all site work and building construction, or a more specific area of construction such as mechanical systems. General contractors have responsibility for the entire construction project including all subcontractors. Subcontractors have responsibility for a very specific area of construction such as electrical systems. On State and University projects, a multiple prime contracting model is used. Accordingly, there may be many prime contractors on a large construction project as opposed to one general contractor in Illinois. Programmatic Schematic Design: A written, tabular, or diagrammatical program that identifies functional criteria, space requirements, and affinities between areas of a proposed project design. A programmatic design is typically an evaluation of proposed project requirements, and is not a set of complete or cohesive drawings. Followed by Schematic Design. Project Manager: Person who plans and organizes resources to complete a project. 12/6/2011 Page 13 of 15

14 Project Requester: Person or department who initiates a project request with the Physical Plant and is responsible for funding the project. Project Users: Persons who will use or occupy, or that represent those who will use or occupy a finished project or facility. Punch List: List of items in a project that do not meet contract specifications. The list is typically generated at Substantial Completion and the contractor must complete the list before Final Completion and Final Payment. QBS (Quality Based Selection) sometimes referred to as an RFQ (Request for Qualifications): A legal procurement process for selecting and contracting an Architectural and Engineering firm. A structured committee driven process for selecting an A/E firm from a group of firms that have expressed a formal interest in performing design work on a university project. The QBS generally leads to contract negotiations and hiring of the initially selected A/E firm. A QBS may be required by FPC at any project dollar amount, but is required by law when a project design will be over $25,000. RFI (Request for Information): A process of solicitation for information that is requested by the university from outside professional sources. RFP (Request for Proposal): A process of solicitation of interest in a project, study or evaluation. Also, a solicitation for bids for any item to be procured by the university. RFP (Request for Purchase): Process to initiate purchase of an item or service through the Purchasing office. Schematic Design: First phase of the design of a project where the A/E firm starts the design. Schematic Diagrams give a general view of components and overall scale of the project. Specifications: A detailed written document that specifies all general and special project conditions as well as materials, equipment, construction processes, and warrantee requirements. Together, the Specifications and the Construction Documents make up the bid package from which a construction contractor bids a project and is used by the Contractor or Physical Plant to construct the project. Substantial Completion: Projects are substantially complete when construction has been completed such that safe occupancy and use of the facility is possible or the primary intended functions of a project may be initiated. This is the start of the 12/6/2011 Page 14 of 15

15 process of transferring responsibility for the project from the contractor to the owner. (See also Beneficial Occupancy ) 12/6/2011 Page 15 of 15