Planning Phases for Capital Projects

Pre-construction phases of a capital project start with an idea, determine financial feasibility, go to the Board of Regents for approval to move forward, and end with final construction drawings.

Review the processes and role responsibilities below. These phases can range from less than a year (funding in place) to a decade if funding becomes a challenge. The cost for pre-construction phases can range from less than a hundred thousand to over a million. When these phases are managed well, the final outcome generally comes in on budget with a high satisfaction rate for the end-users.

Informal statement of intent (2-3 page executive summary w/ limited supporting documentation) by project initiator with wildly variable accuracy. Minimal time/expense invested by the project initiator or Planning, Design, & Construction (PD&C).

Preliminary investigation and scoping of the project and site—largely desk research. Initially performed by internal PD&C staff. Involves outreach to users/occupants and campus University Housing (UH) staff. A financial feasibility analysis is performed. Detailed studies may engage external consultants.

A detailed investigation involving primary research—both market and technical—leading to a business case, including product and project definition, justification and the proposed development plan, often performed with an external consultant.

Program testing and validation with initial building layout and massing. Interim design phase to refine the project. Performed with the assistance of external consultants. 

This is a planning phase involving architects and engineers to develop construction drawings. These costs are capitalizable when directly leading to the final drawings. A Fund 71 speedtype can now be requested for a capitalizable project.

  • For buildings follow the Capital Building Matrix attached as addendum #1.
  • For improvements to land follow the Improvements Matrix attached as addendum #2.
  • For hybrid projects including equipment purchases, mixed categories, demolition, etc. contact the Debt & Asset Manager in the Controller’s Office for a review.

Organize funding sources to arrange for cash transfers to cover monthly costs. (See the “General” section of Capital Debt & Purchases of Buildings & Land for detail)

  • If a project is expected to be in deficit due to lagging cash a request for a PIE exemption should be placed to CCO’s Debt & Asset Manager.
  • The Budget & Financing Services (BFP) Department will manage the financing of the project, more on the process in the Capital Debt section.
  • If outside funding is sought, the Treasury Department at Systems will get involved. CCO will set up a Fund 73 and Fund 74 Speedtype as needed to manage the debt-specific accounting. BFP will work with the construction project managers to estimate a draw schedule to assist the Treasury team in getting the best return on available cash.

Final design to refine project development prior to sending Program Plan to the Board Of Regents for review and approval.

Construction documents developed leading to bidding and procurement. Final review of scope (including site implications), budget and schedule before construction commences.