Requests for Capital Projects are made through the Provost’s Office and Facilities and Campus Operations (Associate Provost for Academic Space and Director of Planning) and evaluated with regard to the institutional objectives and potential funding sources. Each project is categorized at initiation, which determines the actual delivery process for the project. Further information, including the Capital Project categories and information about governance bodies identified in this policy, can be found in the Project Delivery Process.

Capital Projects with a total project cost up to and including $1 million will be reviewed, approved and overseen throughout all stages of the project (planning, design, and construction) by the Space Committee. The Space Committee also has oversight and approval authority for projects over $1 million that are funded through approved capital or operating budgets administered by the Space Committee (e.g., lab renovations funded through the approved capital plan). Projects initiated, reviewed and approved by the Space Committee require a financial funding plan (Section 3.4 below) and will be reported on a regular basis to the Capital Planning Working Group (CPWG).

Capital Project requests with an estimated total project cost of more than $1 million will be presented to the CPWG at an early stage and before detailed project planning begins. CPWG will review Capital Project requests with regard to the University’s strategic plans and priorities, anticipated availability of funding, and available planning resources and will recommend, or not, planning initiation to the President. No detailed project planning may begin without approval from CPWG and the President. Projects initiated, reviewed and recommended for approval by CPWG will be reported on and overseen by CPWG throughout all stages of the project (planning, design and construction).

All Capital Projects must have a financial funding plan, including capital, operating and maintenance, and programmatic funding, approved by the Provost and the Executive Vice President for Finance and Administration for all projects with a total project cost of more than $1 million or the Space Committee for projects with a total project cost of $1 million or less.

The financial funding plan is a critical element of the success of any Capital Project, regardless of total project cost. Realistic and available financial resources must be identified at the earliest possible stages of a project, the project scope must be developed in a manner commensurate with those resources, and fiscal discipline must be exercised at all stages of a project to ensure the appropriate and prudent use of University resources. The financial funding plan and project scope must address financial impacts related to and required for the success of the project, such as swing space, enabling projects, and/or closely associated projects that may be beneficial to undertake at the same time as the primary project.

The financial funding plan will vary according to the project type and cost. Any mix of sources (e.g., departmental funds, philanthropy, debt financing, project revenue) may be used to fund a project, provided they are documented and approved by the appropriate authority.

The approved financial funding plan will identify and define funding sources to cover all estimated and anticipated:

1. design and construction capital costs,
2. operations and maintenance,
3. estimated costs of covering fundraising pledges in advance of receipt (if any), and
4. any other reasonably anticipated capital and ongoing expenses associated with the project.

The financial funding plan must also anticipate and describe estimated incremental program and staffing (if any) for when the Capital Project is completed, occupied, and operational and the associated planning of the responsible school/department/program/etc. to absorb and cover those expenses.

An approved financial funding plan will include:

• Project description and objectives
• Total project cost, inclusive of items 1-4 above
• Project schedule
• Funding source(s) equal to or greater than total project cost
• Revenue associated with the Capital Project (e.g., residence hall room fees; user fees; incremental programmatic revenue enabled by the project, etc.)

At the design authorization stage, the financial funding plan is expected to be preliminary in nature, as detailed scope and associated expenses are determined and developed during design; however, the preliminary financial funding plan must be realistic and determined to have a high likelihood of success prior to the initiation of design. In addition, in order for design to be approved for any project, the full anticipated cost of design must be identified and available through existing University resources and approved by the appropriate authority.

At the construction authorization stage, the financial funding plan must be final and complete, with clear financial targets and assigned responsibilities for meeting those targets, in order to receive approval from the appropriate approval authority to proceed with construction. A final and complete financial funding plan will identify and document all anticipated expenses and commensurate sources of funding.

Capital Projects will be monitored at all stages (planning, design and construction) by the appropriate oversight committee (Space Committee for projects ≤ $1million, CPWG for projects > $1million) for adherence to and consistency with the approved financial funding plan, and significant issues or deviations and identified remediation plans and actions must be reported, as necessary, to the President and/or Budget & Finance Committee.

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