Purpose

Capital construction projects managed by the Construction Management Division, Project Management Group of Facilities & Services must be assessed a project management fee appropriate to the scope and scale of the project.

Scope

All capital construction projects managed by the Construction Management Division, Project Management Group of Facilities & Services will be assessed a project management fee. However, feasibility studies and equipment-only purchases will not be assessed a project management fee.

Authority

The Facilities & Services Advisory Committee is charged with reviewing the rate annually and making recommendations to the Executive Director of Facilities & Services as to any changes. This policy is implemented under the authority of the Office of the Executive Director of Facilities & Services.

Policy

Upon issuance of this policy the fee will be assessed in accordance with the sliding scale against the total project budget. The makeup of the sliding scale fee will be reviewed annually and adjusted as necessary in order to fully recover all the relevant costs.

Project Management Fee Assessment Sliding Scale

1. Projects of less than $1 million: PM Fee = 3.5%
2. Projects from $1 million up to $10 million: PM Fee = [a] + 0.6% of balance
3. Projects from $10 million up to $30 million: PM Fee = [a] + [b] + 0.55% of balance
4. Projects greater than or equal to $30 million: PM Fee = [a] + [b] + [c} + 0.45% of balance

Definitions

For the purpose of this policy, a capital construction project is one with a project budget in excess of the construction sealed bid limit in effect at the time the budget was established.

Processes/Procedures/Guidelines

The project management fee includes, but is not limited to, the following list of services performed by the Project Management Group:

1. Participation in the planning phase to facilitate project execution
2. Management of the project budget
3. Administration of professional services and construction contracts
4. Management of capital delivery process
5. Approval of payment applications and contract modifications
6. Finalizing of project decisions in the design and construction phases
7. Administrative oversight of onsite construction
8. Communication of project status to project stakeholders
9. Execution of project closeout

Contact

Questions concerning this policy should be directed to the Director of Construction, Facilities & Services, (217) 244-0338.