This online version is for convenience; the official version of this policy is housed in the University Secretariat. In case of discrepancy between the online version and the official version held by the Secretariat, the official version shall prevail.
Approving Authority: Vice President: Finance and Administration
Original Approval Date: June 19, 2008
Date of Most Recent Review/Revision: N/A
Office of Accountability: Facilities and Asset Management
Parent Policy: 4.14 Capital Planning Policy
1.1 All proposed Capital Projects must be submitted by the Delegated Executive Sponsor to the Facilities and Asset Management department in advance of the fall semester Capital Planning Process.
1.2 After review by Facilities and Asset Management, department or faculty funded Capital Projects will be submitted to the Capital Projects Committee for prioritization or follow the process outlined in section 3.0. All other Capital Projects will be submitted to the Capital Projects Committee for consideration in the fall semester.
1.3 The Capital Projects Committee will assess and prioritize Capital Projects based on strategic alignment with the University’s strategic priorities, compliance requirements and funding strategies.
1.3.1 The strategic priorities of the University are informed by Laurier’s Strategic Plan, Strategic Mandate Agreement (SMA), Strategic Enrolment Management (SEM), the Strategic Academic Plan, the Strategic Research Plan, the Multi-Campus Strategy and the Campus Master Plan.
1.3.2 Capital Projects will also be assessed by compliance requirements in line with, but not limited to, the Accessibility for Ontarians with Disabilities Act, facilities renewal, health and safety requirements, security requirements, building codes, fire code, sustainability goals and other regulatory requirements.
1.3.3 A review of funding strategies for Capital Projects will be conducted, taking into consideration internal funding availability, external funding potential and total Capital Project cost.
1.4 The Capital Projects Committee will be comprised of the following individuals, or their representatives: the Vice-President: Finance and Administration (chair), the Assistant Vice-President: Facilities and Asset Management, the Assistant Vice-President: Financial Resources, the Provost and Vice-President: Academic, the Vice-President: Advancement and External Relations, the Vice-President: Student Affairs, and the Vice-President: Research.
1.5 The Capital Projects Committee will assess and prioritize each Capital Project based on the criteria outlined in point 1.3.
1.6 At the end of the assessment and prioritization process the Capital Projects Committee will prepare the Capital Project Priorities List, which will be included in the Capital Plan.
1.7 A Capital Plan will be submitted to the Executive Leadership Team for review and approval.
1.8 Once approved by the Executive Leadership Team, a Capital Plan will be provided to the Board of Governors for review and approval.
The following section outlines the implementation of Capital Projects identified in the Capital Plan.
2.1 Once a Capital Plan has been approved by the Board of Governors, the Facilities and Asset Management department will prepare a Project Planning Report, including a preliminary cost estimate for the Capital Projects that have been identified for advancement. At this time, Financial Resources and the Delegated Executive Sponsor will confirm the sources of funding.
2.1.1 With the approval of the Delegated Executive Sponsor, project design development may begin once fifty percent (50%) of the funding target has been achieved.
2.1.2 With the approval of the Delegated Executive Sponsor, project final design and project tendering may begin once seventy-five percent (75%) of the funding target has been achieved.
2.2 The intent of a Project Planning Report is to initiate the fundamental understanding of what the Capital Project will entail. A Project Planning Report will include:
2.2.1 A high level description of the Capital Project including scope;
2.2.2 Provisional estimates of the cost of the project including the overall Capital Project budget;
2.2.3 Projected cost escalation;
2.2.4 Potential sources of funding;
2.2.5 A projected cash flow analysis with respect to both revenues and expenditures;
2.2.6 Identified risks to budget and schedule;
2.2.7 Information on consultation conducted;
2.2.8 Department/Faculty to be accommodated in the space; and
2.2.9 Capital Project’s conformity with the University’s overall Planning Principles.
2.3 Once a Project Planning Report is completed it will be submitted based on the process outlined below:
2.3.1 For Capital Projects up to one (1) million dollars, to the relevant level three (3) signing authority for review and approval. If it is determined there is a reputational or significant financial risk from the Capital Project, the Project Planning Report will be submitted to the Executive Leadership Team for review and approval.
2.3.2 For Capital Projects up to five (5) million dollars, to the Executive Leadership Team for review and approval.
2.3.3 For Capital Projects exceeding five (5) million dollars, or when a project is deemed by the President or a Vice-President to have reputational or significant financial risk, to the Board of Governors for review and approval.
2.4 Upon approval of a Project Planning Report, the Facilities and Asset Management department will initiate the approved Capital Project.
2.4.1 At this time, the Capital Project Priorities List will be updated to remove the approved Capital Projects, which will be recorded on the Approved Capital Projects List.
2.5 If in the course of project development, the budget is projected to be greater than the Capital Project cost referenced in the Project Planning Report, the Capital Project will be submitted to the appropriate signing authority for approval through a Project Cost Increase Report. The intent of a Project Cost Increase Report is to provide updated Capital Project costs and associated reasons for said cost increases.
2.5.1 If the Project Cost Increase Report is not approved, the Capital Project will be paused and the Facilities and Asset Management department, Financial Resources and the Delegated Executive Sponsor will explore alternate funding strategies, reducing the scope or terminating the Capital Project.
2.6 A Project Cost Increase Report will include:
2.6.1 Provisional estimates of the cost of the Capital Project from the approved Project Planning Report;
2.6.2 Updated cost of the Capital Project, including rationale for the increase;
2.6.3 Updated funding strategy;
2.6.4 Any impact to the schedule and scope of the project; and
2.6.5 Identified risks to budget and schedule.
2.7 Project Status Reports are prepared for information purposes on an as needed basis for Capital Projects exceeding five (5) million dollars. The intent of a Project Status Report is to provide updated project information on costs, design progress and construction schedules. A Project Status Report will include at minimum:
2.7.1 Updated Capital Project costs to date and projected budget estimates, including justification for significant variances, if any;
2.7.2 Identified risks to budget and schedule;
2.7.3 Changes to scope of the Capital Project, if any;
2.7.4 Updated progress on design and/or construction; and
2.7.5 Updated Capital Project schedule.
2.8 At the completion of a Capital Project exceeding five (5) million dollars, a Project Completion Report will be completed and submitted to the Board of Governors for information. The purpose of a Project Completion Report is to confirm that financial closure of the Capital Project has occurred and to identify any budget and schedule variances, positive or negative. A Project Completion Report will include:
2.8.1 A summary of the scope of work and project deliverables, indicating the date of completion for each;
2.8.2 Any contingencies or conditions related to the completion of the Capital Project;
2.8.3 The planned cost and funding for the Capital Project as approved;
2.8.4 Final costs and funding at completion of the Capital Project, including any changes to the approved Capital Project budget;
2.8.5 A comparison of the initial approved schedule against the actual completion dates for the Capital Project;
2.8.6 Any changes to the scope of the Capital Project and their impact on performance, cost or schedule; and
2.8.7 An overview of lessons learned from the Capital Project, including problems and/or issues experienced and the corrective actions taken.
The following section outlines the Capital Planning Process for Capital Projects funded from department or faculty budgets, not identified on the Capital Plan, that require approval by the relevant signing authority as per policy 5.7 Signing Authority Policy.
3.1 Proposals or interests in initiating a space and/or renovation request must be submitted to Planning, Design and Construction (PDC) through the Project Request Form.
3.2 Upon submission of the Project Request Form, PDC will connect with the primary contact for the Capital Project to review the needs and requirements of the department/faculty.
3.3 If it is determined that additional space or change in space usage is required, the Facilities and Space Management Committee (FSMC) will review all relevant information for the Capital Project to ensure compliance with overall Planning Principles and strategies for the University.
3.4 Upon approval of the Capital Project by the FSMC, a total project cost estimate will be prepared by PDC and forwarded to the relevant signing authority for approval. Once the source(s) of funding is/are identified and approval for the Capital Project is received from the required signing authority as per policy 5.7 Signing Authority Policy, PDC will initiate the Capital Project.
3.5 If there is an increase in costs of the Capital Project associated with unforeseen conditions, a supplementary total project cost estimate will be prepared by PDC and provided to the relevant signing authority for review and approval.
3.5.1 If the supplementary total project cost estimate is not approved, the Capital Project will be paused and the Delegated Executive Sponsor will explore alternate funding strategies, reducing the scope or terminating the Capital Project.
4.1 The University is constantly evolving and changing to meet the needs of students, faculty and staff. As functional units carry out their responsibilities with respect to the University’s activities, they frequently identify requirements with respect to space, such as a need for additional space or a need for alterations and/or renovations to reorganize or convert existing space for another use.
4.2 All space at the University is subject to changes in configuration and usage, with no unit on Campus having proprietary right to any space. Space can be re-assigned to another user and/or function should the University have another purpose or greater Priority, to achieve critical institutional needs, or to satisfy long-range plans.
4.3 The Facilities and Space Management Committee (FSMC) allocates and approves all assignable building space resources for the University, which does not include project budget and funding approvals. The mandate of the FSMC is to:
4.3.1 Review requests for construction and renovations for projects up to five (5) million dollars;
4.3.2 Review and approve requests for alteration, change in use and reorganization of existing space including those from Academic Affiliates and those related to changes in scope of previously approved requests;
4.3.3 Provide consultation on proposals of a strategic nature for alteration, changes in use and reorganization of existing space where multiple departments/faculties are in occupancy;
4.3.4 Periodically review University space to ensure it is being used efficiently;
4.3.5 Recommend Priorities to Facilities and Asset Management based on consideration of those projects proposed by the department/faculty; and
4.3.6 Review the annual forecast of space needs for the University.
4.4 For further information on the FSMC, its membership and procedures see the Terms of Reference.
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