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- (Central Yup’ik)
- "Greetings, thank you for coming!"
Capital Project Management
Overview
All capital projects seeking state aid through the CIP program must ensure that specific statutory and regulatory requirements are met. Even if a school district has no plans to submit a project under the department’s Capital Improvement Project (CIP) program, the basic steps of project execution are the same. We encourage them for all capital projects. There are four phases to every capital project: 1) Planning, 2) Design, 3) Construction, 4) Maintenance Integration. This page provides major highlights of each phase with links to additional department publications and tools for more detailed information.
For information about administration of a project within the CIP program, see the DEED Grant & Debt Reimbursement Project Administration page.
Planning & Pre-Design
Identifying Need
Identifying a capital need can occur through review of renewal and replacement schedules and maintenance work orders, refined by an on-site condition assessment of the building system(s) by knowledgeable personnel (in-house or consultant).
Options
Evaluation of project options using cost-benefit and life cycle cost analysis should be considered. Examples of project options include: differing technical solutions (types of equipment, components, and materials); differing extents of scope (grouping of related systems into a larger project, a full facility renovation, focus on critical deficiencies); and potential project delivery methods (standard design-bid-build, or alternatives like design-build or force account). Any extensive renovation, one that addresses most building systems, should include an evaluation of an option of a replacement facility, including review of population projections to determine potential future space needs and a review of the facility’s educational specifications to ensure it continues to meet the needs of the educational program.
Identifying Cost
Whether evaluating options or preparing a final budget to present to the school board, estimating the project’s cost is an important piece of planning. Initial costs for a simple system replacement or material options can often be found by an internet search or by soliciting a quote from a vendor. As an alternative to professional cost estimating at the concept-level, the Department maintains the Program Demand Cost Model for new construction and renovation projects.
Pre-Design Considerations
Evaluation of the project delivery method options (“alternative delivery”) may need to occur prior to selection of a design team, as the range of required services may vary. Any project anticipated to participate in the CIP program should seek department approval if not anticipating a standard “design-bid-build” solicitation.
New construction and renovations have additional considerations during the planning stage. Educational specifications provide direction to the design team based on the district’s educational program requirements, so any review and update to the specifications should occur prior to design and may benefit from utilizing the services of an educational facilities planner. Surveying and site investigation can occur before or along with design services. New construction may also require evaluation of potential sites.
Construction Management
If a district does not have in-house personnel to manage the project, a district can solicit the services of a construction/project manager. To be eligible for the CIP program, ensure contracts that may surpass $50,000 follow the requirements set out in 4 AAC 31.065 and not exceed the allowable percentage of the construction budget.
Professional Services Procurement
Once the general need and scope of the project is determined, professional services are procured. Smaller, direct replacement projects may not always require the services of a professional architect or engineer. Certain new construction and renovation projects must include system commissioning and may also utilize a commissioning agent with an approved certification. To be eligible for the CIP program, professional services contracts over $50,000 must follow the requirements set out in 4 AAC 31.065 and be competitively solicited and awarded based on qualifications, with fees and services negotiated within the project budget.
Publications & Tools
Renewal/Replacement Schedule (excel)
Current Attendance Area ADM & GSF Calculations (excel)
Guide for School Facility Condition Surveys (pdf)
Condition Survey Template (word)
Life Cycle Cost Analysis Handbook (pdf)
Life Cycle Costs of Project Alternatives (excel)
A Handbook to Writing Educational Specifications (pdf)
Site Selection Criteria and Evaluation Handbook (pdf)
Site Evaluation Matrix (excel)
Professional Services for School Capital Projects (pdf)
Design
Conceptual Design
For many projects, concept-level design happens with planning, often before professional services are needed; however, new construction projects often benefit from having a design team to assist with these initial design activities such as: adjacencies, organization, massing, visualizing, context, siting, etc.
Schematic Design
Schematic design services consist of the preparation of drawings and other documents that serve to illustrate the general scope, scale, and relationship of project components. At this stage, evaluation, selection, and proposals for systems for all disciplines (architectural, civil, mechanical, structural, etc.) occurs. These are often referred to as “35% documents”.
Design Development
Design development services consist of the preparation, from the approved schematic design documents, drawings and other documents that serve to fix and describe the size and character of the entire project. Structural, mechanical, electrical systems, materials and other such essentials are appropriate. This stage is for coordination of the selected systems among the disciplines and determining how they work and fit together. These are often referred to as “65% documents”.
Construction Documents
Construction documents, prepared from the approved design development documents, are drawings and specifications that provide, in detail, the requirements for construction of the entire project. This design communicates to the contractor/constructor what to provide for a complete working system and whole facility. Prior to being stamped and signed by the architect/engineer, these may be referred to as “95% documents”.
Bidding / Solicitation
Bid services often require the collaboration of the design team and the Owner. The services consist of the preparation, from the approved construction documents, of bid documents for soliciting bids and awarding contracts for construction with approval by the district. These also include drawings stamped by the architect/engineer and project specifications, sometimes referred to as “100% documents”.
Construction solicitations for projects over $100,000 that participate in the CIP program must meet the minimum requirements set out in 4 AAC 31.080 and can be summarized as: written contracts awarded by competitive sealed bids with 3 advertising dates and a 21-day minimum advertising period in a newspaper of general circulation (or as approved by the department), a 10-day protest period, awarded to low bidder, and no local offeror preference.
A bid tabulation is the most common method of evaluation and is completed as the district opens the sealed bids. This documents the bidders and associated bids to provide verification of the lowest bidder for award.
Construction
Contract Award
The construction contract shall be awarded to the lowest responsive bidder unless an alternative project delivery method was approved by the department. A notice of intent to award is published that allows a minimum of a 10-day protest period. During the execution of the contract, the contractor should provide the documentation specified in the solicitation (e.g., performance and payment bonds, insurance certifications). Alaska statute requires all districts and municipalities to file a notice of award with the Department of Labor and Workforce Development.
Change Orders
Unfortunately, unforeseen conditions, design oversights, or other situations may necessitate a change to the scope of work agreed on in the construction contract. Change orders should be reviewed carefully for cost and scope before being agreed to by the district and contractor. Change orders meeting certain conditions must be approved by the department or may not be an allowable cost at the project closeout.
Substantial & Final Completion
Substantial completion is accompanied by a team comprised of representatives from the contractor, designer, and the district. The team inspects the work performed under the contract to determine a “punch list” of work that may still need to be accomplished. This punch list can contain minor items (e.g., remove construction debris or install missing trim piece) to major items (e.g., the fire alarm did not test operational during commissioning).
The date of substantial completion is noteworthy for several reasons. It typically signifies the date that the district takes occupancy of the buildings, and most warranties begin from that date. DEED project agreements also stipulate that final accounting must be submitted 365 days after substantial completion.
Larger scope projects may also have a final completion date, when all work not required for occupancy and substantial completion is finalized and the contractor has demobilized from the site.
Publications & Tools
Maintenance Integration
Capital projects are significant investments and must be properly taken care of throughout the life of a facility or building system.
Maintenance Management Program
Proper documentation and data input into the district’s computerized maintenance management system (CMMS) ensures that the new building or improved building systems will receive the required preventive and routine maintenance required to maximize their anticipated lifespan. Time taken at this phase to enter in system component information can pay off dividends in time and money to the district through consistent use of the CMMS.
System component data should be entered, and components linked to preventive maintenance workorders. Component operating and maintenance manuals should be organized and made available for reference by maintenance personnel.
Capital Planning
The determination of a need for a capital project often begins the review of capital planning documents such as renewal and replacement (R&R) schedules, so it is important at the end of a project to ensure that the R&R schedules are properly updated so district employees can properly forecast future capital project needs.