2.3 Property and Facilities

Page index:

  1. Capital Plans, Requests and Reports
  2. Real Property
  3. Capital Improvement Projects – Definitions, Duties and Responsibilities
  4. Register of Capital Improvement Business Transactions
  5. Permission to Proceed with Project Planning
  6. Program Statements and Schematic Design Documents
  7. Project Descriptions and Budgets
  8. Design Consultant (Design Professional) and Construction Manager Selection, Agreements and Amendments
  9. Preparation of Plans and Specifications
  10. Bidding of Construction Contracts
  11. Bid Openings, Receipt of Construction Bids and Award of Construction Contracts
  12. Construction Contracts and Change Orders
  13. Acceptance of Completed Construction Contracts
  14. Final Reports
  15. Policies for Institutional Roads Projects
  16. Naming

 

  1. Capital Plans, Requests and Reports

    1. Duties and Responsibilities of the Board of Regents include:
      1. Review of campus master plans.

      2. Approval of five-year building programs and capital appropriation request(s).

      3. Approval of annual capital plan.

      4. Approval of financing for capital projects.

      5. Review of capital issues.

      6. Receipt and/or approval of annual governance reports.

    2. Campus Master Plans
      1. Each university shall present an updated campus master plan to the Board or a Board Committee as requested. The plan should indicate past, present, and anticipated development and note any significant changes from plans previously presented to the Board or Committee.

      2. The campus master plan should relate directly to the university’s strategic and academic plans.

    3. Five-Year Building Programs and Capital Requests
      1. Five-Year State-Funded Building Program and Capital Appropriation Requests
        1. The Board of Regents submits annually to the General Assembly its five-year building program for state funds for the institutions under its jurisdiction.

        2. The building program may be revised annually.

        3. The first two years of the five-year building program for state funds represent the Board’s biennial capital request and the first year of the program will represent the Board’s annual request.

        4. All subsequently state funded projects, and all other projects, are subject to the capital improvement policies outlined in this Chapter.

      2. All-Funds Five-Year Building Program

        An all-funds five-year building program shall be presented to the Board annually and shall include major building needs anticipated to be funded by all sources. A separate five-year building program shall be submitted for the University of Iowa Hospitals and Clinics.


      3. The Board Office shall coordinate the work of the institutions in preparing all five-year building programs, including the formats, dates of submission and projects to be included.

    4. Annual Capital Plan

      The institutions shall submit annually for Board review spending plans for the upcoming fiscal year by project category in a format and on forms provided by the Board Office.


    5. Financing of Capital Projects

      The Board of Regents has been granted statutory authority to finance capital projects in several ways. Specific authorizations in Iowa Code include Academic Building Revenue Bonds (Chapter 262A (PDF)), Dormitories and other Self-Liquidating Facilities (Chapter 262 (PDF)), and Hospital Revenue Bonds (Chapter 263A (PDF)).


    6. Reports and Issues
      1. Facilities Governance

        Each year the institutions shall prepare a facilities report in a format provided by the Board Office. The report may include information on fire and environmental safety and deferred maintenance.

        1. Fire and Environmental Safety
          1. Each year the institutions shall submit reports to the Board Office indicating the results of the latest State Fire Marshal’s inspection, the results of environmental safety inspections, and programs completed or underway to correct deficiencies. The report shall indicate the financial resources needed to correct outstanding deficiencies. These needs should be integrated into the annual capital request and the five-year capital plans.

          2. Institutions should immediately notify the Board Office if any facilities within their jurisdictions have been cited for violations of federal, state, or local laws or regulations or have been decertified or notified of the threat of decertification from compliance with any state, federal or other nationally recognized certification or accreditation agency or organization.

        2. Deferred Maintenance and Improvements

          Deferred maintenance and improvement needs shall be considered in the institutional five-year capital program and capital appropriation requests.


      2. Energy Conservation
        1. The institutions shall develop energy conservation plans.

        2. Design consultants should emphasize energy conservation and life cycle costs in new construction and remodeling projects, consistent with Iowa Code.

      3. Strategies and Policies for Optimal Utilization of Existing Campus Facilities
        1. Institutions should be as thorough and innovative as possible in their allocation and reallocation of space within their existing facilities.

        2. Each university should adopt general principles, consistent with the Board’s and each university’s strategic plan, regarding space assignment and scheduling of classes and should so inform the campus community. Each university should also ensure that its policies and procedures regarding space are consistent with these principles.

        3. The universities should use their appropriate campus committees to stimulate discussions on improving the utilization of campus space and facilities, and to provide recommendations to the university administration.

        4. Space planning is an institutional responsibility and should be part of comprehensive long range campus planning, which includes an analysis of the quality, quantity and location of the space.

        5. Requests for new space should continue to be documented and justified on a functional need basis with a demonstration that the identified program need cannot be met more economically through more efficient use of existing space or renovation, consistent with the Board’s previous adoption of the capital project evaluation criteria.

        6. Each university should review its existing utilization data when planning for new or renovated space; to the greatest extent possible, objective measures should be used to determine space needs. These objective measures could include benchmarking data or objective models, supplemented by further analyses and specialized studies.

        7. Each university should consider development of policies regarding office space for part-time employees, including adjunct faculty, graduate students and emeritus faculty.

        8. Each university should keep and utilize for each new construction or renovation project guidelines for the size of offices.

        9. Each institution should submit with its request to lease space in the general vicinity of the main campus, an explanation of the spaces on campus examined and found unsuitable.

        10. Classrooms, class laboratories and other facilities should be designed and scheduled for optimal utilization given program needs and student expectations.

        11. The universities should strive to design efficient facilities, providing for as much usable (net) square footage as reasonably possible within the gross square footage and program goals of the building.

        12. For those facilities thought to be obsolete, the institutions should assess their physical condition, contribution to the university’s heritage, adaptability to being efficiently renovated and reused, and viability of reuse versus replacement. Based upon this assessment, each university should determine whether it is prudent to retain each of its obsolete facilities.

      4. Facility Stewardship
        1. Naming Policy (Chapter 2.3.16) incorporates contributions for programs, annual operating or future capital renewal costs in addition to the costs of construction and renovation for named facilities.

        2. Institutional capital campaigns for private contributions are to include donor options for supporting annual operating costs and future capital renewal, as well as program initiatives that, when funded with private support, enable the university more readily to meet its educational mission by protecting the general fund and the core costs of facility stewardship, including operating costs and capital renewal.

        3. Annual operating costs of all major additions and new buildings shall include:
          1. Definitions and cost benchmarks established.

          2. Preliminary cost and source of funds identified with the Permission to Proceed with Project Planning stage of Board consideration.

          3. Revenue sources for annual operating cost support linked directly to uses of the facility and identified in the Board’s budgeting process.

        4. Future capital renewal amount determined for each new major addition or building project for which the project budget has not yet been approved by the Board.
          1. Annual investment to be approximately 1.5% of replacement value to meet future capital renewal needs.

          2. Amount and intended sources of future capital renewal funding to be included in submittals when the project budget is presented for Board action. For example:
            1. For a bonded enterprise, future funding for renewal could be obtained through either incremental increases in the “improvement funds” for the enterprise or through planned additional debt capital to be issued as the need arises.

            2. For General Fund supported facilities, increments to the overall General Education Fund “building renewal (repair)” budget may be necessary to reflect the additional square footage (net of any facilities being taken off line or razed) within this category.

            3. For historic or iconic facilities, private resources may be a source of future capital renewal, either through a current or a future capital campaign.

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  2. Real Property

    1. Duties and Responsibilities of the Board of Regents include:
      1. Approval of the purchase and sale of property.

      2. Approval of the disposal, transfer and sale of buildings.

      3. Approval of leases and easements.

    2. Control, acquisition, and disposition
      1. The Board is responsible for management and control of real and personal property of the institutions under its control pursuant to Iowa Code.

      2. All acts relating to the management, purchase, disposition, or use of lands and other property of the institutions are to be approved via roll call vote pursuant to Iowa Code.

    3. Purchases and Sales
      1. The Board shall acquire real estate for the use of the Regent institutions, and dispose of real estate belonging to the institutions when not necessary for their purposes as delineated in Iowa Code.
        1. Acquisition includes the procurement of real property by gift, grant, purchase or any other method.

        2. Disposal includes the transfer of real property to another entity by gift, grant or sale or by any other method.

      2. Real estate should be conveyed for monetary consideration based on appraisal; in all cases in which monetary consideration is waived by the Board, the alternative consideration shall be approved by the Board.

      3. Property purchased shall be purchased at no more than the high appraisal or not more than 5 percent over the average of two appraisals, whichever is the lower figure. This policy is not intended to limit negotiation for a price lower than the appraised value.

      4. All requests for Board approval of the purchase or sale of property shall be in a format with necessary documentation as delineated by the Board Office.

    4. Disposal, Transfer, and Sale of Buildings
      1. Disposal, transfer, or sale of buildings with an estimated fair market value of $25,000 or more will be docketed for Board action.

      2. The chief business officer or designee of each institution is authorized to dispose of obsolete or worn out buildings with an estimated value of less than $25,000.

    5. Leases
      1. Iowa Code provides the Board with authority to lease properties and facilities, either as lessor or lessee, for the proper use and benefit of the institutions. The Board may, at its discretion, delegate authority to the universities to approve leases as detailed in Iowa Code. All leases requiring Board approval must be approved by roll call vote in accordance with Iowa Code.

      2. Authority for approval of leases for the special schools is delegated to the Director of Business Operations of the special schools in consultation with the Board Office, following the parameters outlined below.

      3. Approval of tenant property rental rates is delegated to the institutions.

      4. Lease approval delegations to the universities include:
        1. Those with the Board as both lessee and lessor as further outlined in this section, including individual subleases within the SUI – Technology Innovation Center and ISU – Iowa State Innovation System, and farm leases;

        2. Those for less than 10,000 gross square feet, and with less than $125,000 in annual rental costs, and for five years or less duration. (Leases for more than 10,000 gross square feet, or more than $125,000 in annual rental costs, or for greater than five years duration require Board approval. The Board Office may annually increase the $125,000 annual rental threshold by the Consumer Price Index – All Urban Consumers.);

        3. Lease addenda increasing the amount of leased space, as long as the lease and addenda (in total) fall within the parameters of (b);

        4. Lease addenda decreasing the amount of leased space; and

        5. Lease renewals where there are no substantial changes in terms from the original lease or previous renewal, and the lease percentage rate increase (from the original lease or previous renewal) does not exceed the Consumer Price Index – All Urban Consumers.

      5. Each institution will report annually on the new leases and lease renewals into which it has entered during the last fiscal year (excluding renewal periods provided for in the original lease), as well as the approved tenant property rental rates. The reporting format will be developed by the Board Office in conjunction with the universities.

      6. Universities will identify one institutional office with authority to approve leases and inform the university community and Board Office of that identification.

      7. Lease arrangements to be approved by the Board or the institutions will use the standard Regent form developed by the Board Office unless exceptions are granted. Deviations from this form for university approved leases will require the approval of the university’s general counsel office; exceptions for leases requiring Board approval will be made by the Board Office.

      8. A university or special school may opt, at its discretion, to submit a request for approval of a specific lease to the Board even if it were to fall within the parameters of delegated leases.

      9. All leases which include an option to purchase, a right of first refusal to purchase, or other right or option to purchase the improvements or the land on which the improvements are located, require Board approval.

      10. Land leases, excluding farm leases which would be delegated as per 4a above, require Board approval.

      11. For purposes of implementing Iowa Code a lease is defined as the right to the sole use and occupation of property in exchange for consideration, usually rent.

      12. The institution will prepare an exhibit for all lease agreements being presented for Board approval. The exhibit will include the information requested by the Board Office.

      13. The institutions will notify the Board Office when a lease agreement has been terminated prior to the end of the lease term, or when a lease agreement has expired (i.e., when either a renewal option or monthly extension is not exercised).

      14. When the Board is the landlord in a farm lease, the lease shall terminate consistent with the provisions of Iowa Code; notification of termination shall be in accordance with Iowa Code.

    6. Easements
      1. The Board is authorized to grant easements pursuant to Iowa Code.

      2. The institution will prepare an exhibit for all easements being presented for Board approval. The exhibit will include the information requested by the Board Office.

    7. Payments in Lieu of Taxes
      1. Payments in lieu of taxes (PILOTs) are defined as payments negotiated voluntarily by officials of a tax-exempt entity and officials of the community where it is located as a substitute for property taxes. They do not include payments made under service agreements specifically provided by Iowa Code.

      2. Prior to beginning any negotiations with a political subdivision on a PILOT, the institution shall notify the Executive Director of its intent to negotiate such an agreement.

      3. Agreements resulting in payments in lieu of taxes (PILOTs) between institutions under the control of the Board of Regents and a political subdivision shall be approved by the Board. The request for approval shall include a detailed explanation of the need for the PILOT, the manner in which it was calculated, and concurrence from the applicable public entity assessor(s) as to the assessment calculation for establishing the amount of the PILOT. The negotiated PILOT shall include a sunset / termination date and shall ensure, to the extent permitted by law, that the PILOT is dispersed to the applicable taxing entities (county, city, school district, etc.).

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  3. Capital Improvement Projects – Definitions, Duties and Responsibilities

    1. Definition of a Capital Improvement Project
      1. A capital improvement project is one which provides for the construction, repair, or improvement of buildings (including fixed equipment within buildings), utility systems or grounds under jurisdiction of the Board of Regents.

      2. A major capital improvement project is defined as any new building construction (including a major addition) or any building renovation project with an estimated project budget of $2 million or more. Utility projects (excluding those housed within a facility), grounds projects and projects for which equipment costs are fifty percent or greater of the total project cost are not considered major capital improvement projects and capital project evaluation criteria submittals are not required (see below).

    2. Special School Capital Project Requirements

      The capital procedures/policies for the universities apply to the special schools, with the following exception:

      Responsibility for Administration of Capital Projects
      Iowa State University shall be responsible for the overall administration of capital projects at the special schools (Iowa School for the Deaf and Iowa Braille and Sight Saving School) and shall document, in conjunction with each school and the Board Office the specific responsibility (school or Iowa State University) for development / approvals of a project description and budget, preparation of Board agenda materials, bidding process and other components of the Regents capital project process. The specific responsibilities of Iowa State University or the school may change by project; these specific responsibilities could be determined by dollar thresholds or the level of complexity of a project.


    3. Duties and Responsibilities
      1. Duties and Responsibilities of the Board of Regents

        Whenever a capital improvement project is proposed or undertaken at any institution under the control of the Board of Regents, the Board may, as provided for in this Chapter:

        1. Grant permission to proceed with project planning.

        2. Approve a program statement.

        3. Approve the schematic design drawings.

        4. Approve a project description and budget and revised project budget.

        5. Approve the selection of a design consultant (design professional) or a construction manager

        6. Approve contract awards or rejection of bids.

        7. Delegate responsibility to the executive director, chief operating officer, Board Office, or the institution as provided for in this Chapter.

      2. Duties and Responsibilities of the Executive Director, Chief Operating Officer, Board Office

        Whenever a capital improvement project is undertaken at any institution under the control of the Board, the executive director, chief operating officer or Board Office is authorized and directed to carry out provisions of this Chapter, including:

        1. Negotiate financing arrangements other than appropriations as directed by the Board of Regents.

        2. Receive certification from the institution's chief business officer or designee that the nature and scope of a project is substantially the same as approved by the Board.

        3. Approve program statements; design consultant selections, negotiated agreements and amendments; project descriptions and budgets, and revised budgets; and construction contract change orders as provided for in this Chapter.

        4. Award construction contracts as provided for in this Chapter.

        5. When it is determined to be in the best interest of the Regent enterprise, reject all bids and/or determine alternative procedures.

        6. Advise the Board on capital project requested actions of the institutions.

        7. Refer capital project actions requested of the Board Office to the Board at the discretion of the Board Office.

        8. Act on behalf of the Board on capital project actions subject to ratification of actions taken by the Board when failure to take immediate action would have an adverse impact on institutional programs, cause an unnecessary delay in the project, result in increased cost, or when it is otherwise in the public interest. The Board shall be informed of such actions at the next Board meeting.

        9. Advise the Board regarding institutional plans for fundraising for capital projects.

        10. Provide reports to the Board as may be needed.

      3. Duties and Responsibilities of the Institutions

        The institutions under the control of the Board of Regents are authorized to carry out on behalf of the Board duties as provided for in this Chapter including:

        1. Survey needs, recommend capital projects and capital project actions to the Board.

        2. Furnish members of its staff to act as architect, engineer, or associate architect or engineer, when it is in the institution’s best interest to utilize its staff, rather than consultant(s), to provide these services.

        3. Act as project manager.

        4. Certify to the executive director, chief operating officer or Board Office that the final plans and specifications have been completed in conformance with the scope of the project approved by the Board or Board Office.

        5. Make all reports available and secure approvals as required by other governmental agencies.

        6. With the approval of the chief business officer or designee of the institution and consistent with policies outlined elsewhere in this Chapter, conduct projects, including approval of project descriptions and budgets, revised budgets, design consultant agreements and amendments, contract awards or rejection of bids, and change orders.

        7. Notify the Board Office whenever it is determined that a contractor or consultant is not performing satisfactorily, and when consideration is being given to removing the contractor or consultant.

        8. Submit to the Board Office a semi-annual report for all ongoing capital projects over $250,000 as of June 30 and December 31 of each year, within 45 days of the end of each semi-annual period. The content and format of the semiannual report will be provided by the Board Office.

        9. Notify the Board Office prior to solicitation of private and/or federal funds for major capital projects by an affiliated organization or the institution.

      4. The Board Office and institutions shall meet regularly to: a) discuss issues related to capital projects; b) ensure coordination of capital project policies and procedures; and c) provide, upon the Board’s request, advice on capital project policies and procedures, and reports on activities.

    4. Capital Project Evaluation Criteria
      1. The institutions shall submit information to address the Board’s capital project evaluation criteria for major capital projects as defined in this Chapter (new building, major additions or building renovation projects with estimated project budgets of $2 million or more) when Permission to Proceed with Project Planning is requested and when approval of the schematic design and project description and budget are requested. (Utility projects excluding those housed in a new facility or major addition or building system upgrades are not defined as major capital projects.

      2. For those projects meeting the criteria of a major capital project for which Permission to Proceed with Project Planning is not required (see below - anticipated budget of greater than $2 million but less than $5 million), information to address the Board’s capital project evaluation criteria need only be submitted when approval of the schematic design and project description and budget are requested. The criteria are outlined below:
        1. How does this project help fulfill the institution’s mission and strategic plan in the following areas:
          1. Faculty needs in areas strategic to the university?

          2. Program accreditation?

          3. Student demand?

          4. Other strategic plan-related criteria?

          5. Environmental health and safety?

        2. What other alternatives were explored to meet the needs identified in number 1 above, why were they rejected and why is the proposed project the best way to meet the identified need?

        3. When this project is completed, what facilities and total square footage will be abandoned, transferred or demolished and how does this compare to the new or renovated square footage?

        4. What financial resources are available to build/remodel/renovate the proposed capital project including:
          1. Source(s) of funding?

          2. Availability of funds?

          3. Income stream to provide debt service on bonds, if they are to be issued?

          4. Calculation of financial return on investment, when applicable?

        5. What resources are available to operate and maintain (O&M) the proposed capital project without compromising current programs and operations:
          1. Preliminary costs and sources of O&M funds, e.g., general fund, self-supporting, endowment, etc.?

          2. Effect on existing programs/operations if O&M support comes from general fund?

        6. Identification of any compelling external forces that justify approval of this capital project:
          1. Federal and/or state mandate?

          2. Compliance with health/safety/welfare laws?

          3. Federal/foundation grant or other external funding opportunities?

          4. State policy direction consistent with institutional mission?

        7. Amount and intended sources of future capital renewal funding to be included when the project budget is submitted for approval.

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  4. Register of Capital Improvement Business Transactions

    1. Each institutional submission shall carry a single agenda item for its Capital Improvement Business Transactions, as defined in this section.

    2. Capital actions, for which approval of the Board is requested at its next meeting, shall be by means of the "Register of Capital Improvement Business Transactions" (hereafter referred to as the "Register"). For easy reference, the Register should be divided into subheadings, as needed, for: Permission to Proceed with Project Planning; Program Statements and Schematic Design Documents; Project Descriptions and Budgets; Consultant Agreements and Amendments; and Construction Contracts and Change Orders to Construction Contracts. Policies related to the subheadings are included in separate sections.

    3. The chief business officer or designee of each institution shall certify the Register and send it to the Board Office with agenda materials.

  5. Permission to Proceed with Project Planning

    Institutions shall seek the approval of the Board prior to initiating formal planning for any project estimated to cost $5,000,000 or more. Permission shall be requested in an exhibit in the Register, which shall include a description of the need or identification of the program to be accommodated by the project; a narrative description of the project, if known; and of alternatives, if any, to the proposed course of action. The estimated cost of the project expressed as a range and the probable source of funds should be provided. (Cost estimates provided at this time are tentative and are subject to later revision. Permission may be sought at this time to seek the assistance of a design consultant or the use of a project delivery method other than the traditional design-bid-build process, including the services of a construction manager.) The institution must submit, at this time, information to respond to the Board’s evaluation criteria for new buildings, major additions and renovation projects (see above under “Capital Project Evaluation Criteria.”).


  6. Program Statements and Schematic Design Documents

    1. Program Statement
      1. The program statement describes the facility which is to be constructed in terms of purpose and scope. It may be prepared prior to hiring a design consultant or with the assistance of the design consultant. Once prepared and approved, the program statement provides a basis for agreement between the project user, the institution, and the design consultant.

      2. Program statements for new buildings, major additions and renovation projects with estimated project costs of $2,000,000 or more shall be submitted for Board Office approval. (Examples of projects which do not require program statements are mechanical system upgrades or restroom modifications; other possible exceptions should be discussed on a case by case basis with the Board Office.) The program statements may be forwarded for Board action at the discretion of the Board Office. The program statement may include a review of the design concepts and projected measures of efficiency, including net to gross square feet, construction cost per gross square foot and projected utility and maintenance costs.

    2. Schematic Design Documents

      Approval of schematic design follows approval of the program statement.

      1. Schematic designs shall be submitted for Board approval for new building, major addition and renovation projects with an estimated project cost of $2,000,000 or more. The schematic designs should reflect the program statement approved by the Board Office or the Board. The institutional exhibit should include a comparison to the building program, information on the net to gross square footage ratio, estimated construction cost per gross square foot, exterior materials and relationship of exterior design and materials to the campus context (for new construction or addition), operating and maintenance costs, project schedule, and any additional information requested by the Board or Board Office.

      2. Institutional requests for Board approval of a “project description and budget” (including funding sources) are to be presented no later than the time at which the “schematic design” is presented.

      3. Board approvals of both the “schematic design” and “project description and budget” (including funding sources) will constitute Regents final project approval and authorization to proceed with construction.

      4. Material changes in program, design or cost subsequent to the Board’s final approval must be returned to the Board for further approval.

      5. Final information to address the Board’s evaluation criteria must be submitted when approval of the schematic design is requested.

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  7. Project Descriptions and Budgets

    1. Definitions

      The project description and budget shall include a brief history of the project, the justification or need for the project, the purpose to be served, a description of the project scope, the approximate net and/or gross square feet, how the project would impact future campus space utilization, an initial budget, and any additional information requested by the Board Office or the Board. The source of funds should be as specific as possible.

      1. The initial budget shall contain lines for major expenditure items and identify source(s) of fund(s).

      2. A revised project budget increases or decreases the total budget from the amount approved in the initial budget.

      3. An amended project budget changes the line items and/or source(s) of fund(s) from those approved in the initial budget; the total project budget does not change.

    2. Projects with Budgets of Less than $500,000

      A Project Description and Budget shall be prepared for all capital projects with a project budget of $100,000 or more. Institutional approval of the Project Description and Budget shall constitute approval of projects with budgets of less than $500,000. However, the renovation, modification or improvement to the official state-owned residence of an institutional head requires approval of the executive director of the Board should the project budget exceed $100,000.


    3. Projects with Budgets of $500,000 to $1,999,999

      Project descriptions and budgets between $500,000 and $1,999,999 shall be submitted to the Board Office for review and approval.


    4. Projects with Budgets of $2,000,000 or More

      All project descriptions and budgets of $2,000,000 or more shall be submitted for Board review and approval as an entry on the Register with exhibit.


    5. Revised / Amended Project Budgets
      1. Revised Project Budgets less than $1,000,000

        A project with an increased budget which results in a revised budget totaling less than $1,000,000 shall be approved by the institution. Information on all revised budgets approved by the institution shall be provided in a semi-annual report to the Board Office.


      2. Revised Project Budgets between $1,000,000 and $1,999,999

        A project with an increased budget which results in a revised budget totaling between $1,000,000 and $1,999,999 shall be approved by the Board Office.


      3. Revised Project Budgets greater than $2,000,000

        A project with an increased budget which results in a revised budget totaling $2,000,000 or more shall be approved by the Board. However, a revised project budget increase of less than 10% of the project budget approved by the Board (Board Office) or $500,000, whichever is less, may be approved by the Board Office.


      4. Revised, Decreased Project Budgets and Amended Project Budgets

        A revised, decreased budget, or an amended budget as defined in 2.3.7A3, need not be submitted to the Board Office or the Board for approval.


    6. General
      1. Commitments on projects with budgets exceeding $500,000 shall not be made until approval is given by the Board Office or the Board.

      2. Significant changes to the project description may require resubmission to the Board Office or Board.

      3. If the project will employ alternative delivery methods other than the traditional design-bid-build process, the request for permission to proceed or the project description and budget, as applicable, shall include a review of the advantages and disadvantages of the proposed delivery method.

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  8. Design Consultant (Design Professional) and Construction Manager Selection, Agreements and Amendments

    1. Definition

      Design consultant agreements include but are not limited to agreements for architectural, engineering, other design professional, and construction management services.

      1. Design Consultant and Construction Management Services Selection
        1. Iowa Preference

          Preference shall be given in accordance with Iowa Code to the selection of design consultant or construction management services firms either based in Iowa or with permanent offices in Iowa. If a firm which is neither Iowa-based nor with a permanent office in Iowa is selected, reasons shall be reported to the Board Office.


    2. Design Consultant and Construction Management Selection Process
      1. Selection of Design Consultants for Projects with Budgets of Less than $999,999

        The process for selection of the design consultant is the responsibility of the institution. Approval of the negotiated agreement by the institution (as detailed in this Chapter) shall constitute selection of the firm.


      2. Selection of Prime Design Consultants for Projects with Budgets of $1,000,000 or More
        1. Recommendations for design consultant selection for projects expected to cost $1,000,000 or more shall be by an institutional committee.

        2. The committee shall be established for the purpose of selecting a firm for the specific project; the committee shall be comprised of appropriate institutional personnel depending upon the consultant services to be provided.

        3. The institution shall advertise its need for design services for the project. The Iowa Chapter of American Institute of Architects shall be notified by the institution if the institution's intention is to secure architectural services.

        4. The institution shall notify the Board Office when the institution will evaluate the proposals received to determine a short list of firms to be interviewed and when the committee will meet to interview firms. A representative of the Board Office may elect to participate in the selection process as a member of the selection committee.

        5. The committee shall evaluate the proposals received utilizing appropriate criteria, and select the firms it believes are the most qualified for the project for interviews with the committee.

        6. Based on the committee’s interviews with the firms, the committee shall recommend a firm and forward its selection, with justification, to the university chief business officer or designee for authorization to negotiate an agreement with the firm.

        7. The committee’s summary report shall be forwarded to the Board Office with the institution’s request for approval of the selected firm.

        8. If Board approval is required, the selected firm, and/or the negotiated agreement, shall be included on the Register of Capital Improvement Business Transactions for Board approval.

        9. With appropriate detailed justification, an institution may request of the Board or Board Office (depending upon the size of the project) a waiver of the selection process and the utilization of a specific design consultant or construction manager rather than the utilization of a selection committee.

        10. The requirements of this section do not apply to the selection of ancillary design consultants such as commissioning agents or the provision of testing services. The institutions shall use their discretion to determine the best method to select ancillary consultants, such as commissioning agents, quality control or testing services, and shall document the method used. Agreements for ancillary services require approval of the Board Office only when the negotiated fee exceeds $150,000.

      3. Construction Manager Services Selection Process
        1. When the institution proposes to use construction management services in lieu of a single stipulated sum prime construction contractor, the institution shall obtain approval from the Board, or the Board Office; Board Office approval may be requested when the project does not meet the project cost thresholds by the Board of Permission to Proceed with Project Planning.

        2. Selection processes should follow those outlined above for design consultants.

        3. The provision of services by construction managers is subject to the policies governing design consultants as outlined above.

      4. Use of Consultants for Feasibility Studies

        Institutions are authorized to use consultants (typically design professionals) to conduct feasibility studies and strategic planning related to university facilities for the purpose of establishing the feasibility, concept, and/or scope for capital projects, provided the study does not include the preparation of construction documents.

        1. For feasibility study agreements with a total anticipated cost of less than $200,000, including reimbursables, the institution shall determine the process for selection of the consultant.

        2. For feasibility study agreements with a total anticipated cost of $200,000 or more, including reimbursables, the institution shall advertise its need for services and an institutional committee shall evaluate the firms’ submittals and determine a short list of firms to be interviewed, and interview the short list firms.

        3. The institution’s chief business officer or designee shall approve the consultant agreement for feasibility study agreements with a total anticipated cost of less than $100,000.

        4. The Board Office shall approve the selection of the consultant and the agreement for all feasibility study agreements with anticipated costs of $100,000 or greater; the institution shall provide the Board Office with a description of the selection process and the rationale for selection of the consultant with its request for approval.

      5. Design Consultant or Construction Management Services Agreements
        1. The chief business officer or designee may approve the selection and agreement for design consultant or construction management services for projects with an estimated project budget of $999,999 or less.

        2. Whenever the estimated project budget for a construction project is $1,000,000 or more, the design consultant / construction manager selection and agreement shall be approved by the Board Office, but the selection and/or agreement may be referred for Board action at the discretion of the Board Office.

      6. Design Consultant or Construction Manager Services Amendments
        1. For projects with budgets of $999,999 or less, amendments to design consultant or construction management services agreements shall be approved by the institution's chief business officer or designee.

        2. For projects with budgets of $1,000,000 or more, amendments shall be approved by the institution unless a single amendment exceeds 5 percent or $100,000 (whichever is less [with a minimum of $50,000]) and/or the sum of the cumulative amendments exceeds 20 percent of the original agreement. If the amount of the amendment(s) exceeds this threshold, the amendment(s) shall be approved by the Board Office, but may be referred for Board action at the discretion of the Board Office.

      7. Design Consultant or Construction Manager Fees

        Payments to the design consultant or construction manager for services shall be based on a fee negotiated with the institution and approved by the institution, Board Office, or Board as provided for in this Chapter.


      8. Disputes with Design Consultants and Construction Managers

        Disputes between the design consultants or construction managers and the university will be handled in accordance with procedures outlined in the Board of Regents consultant’s or construction manager’s agreement.

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  9. Preparation of Plans and Specifications

    1. Preparation of Plans and Specifications
      1. Plans and specifications will be prepared in compliance with good practice, state and federal law, and Board policy.

      2. Final plans and specifications shall be in compliance with the project approved by the Board and the chief business officer or designee shall so certify to the Board Office.

    2. Liquidated Damages and Performance Based Incentives

      Liquidated damages clauses are to be used on those capital projects that are of extreme urgency to a university function or for a project involving income generation. Performance based incentive clauses may be used under limited circumstances with specific rationale. Provisions for liquidated damages and performance based incentives shall be consistent with Iowa Code.


    3. Requirement for Holding Bids

      Universities shall provide in their instructions to bidders that all bids be held for at least 45 days.


    4. Art in State Buildings
      1. Requirements for the Art in State Buildings Program are included in the Iowa Code and Iowa Administrative Code.

      2. The Art in State Buildings Program shall apply to construction of new buildings, major renovations, or additions to existing buildings, with the exception of the facilities listed in the Iowa Code.

      3. The dollar amount allocated for Art in State Buildings shall, at a minimum, be the amount of the project budget stipulated in Iowa Code and will cover the cost of selection, acquisition, shipping, installation, and any other associated costs, except professional fees.

      4. The Regent institutions participate in the Iowa Arts Council's program with the following understanding:
        1. The Regent institutions shall coordinate and administer the selection, purchase, and installation of art objects for each project affected by the program.

        2. The Regent institutions shall receive, hold, and disburse the fine arts funds applicable and designated for each project.

      5. When preparing capital appropriation requests, the Regent institutions shall plan for the expense of fine arts elements in their requests.

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  10. Bidding of Construction Contracts

    The policies of the Board of Regents, State of Iowa, for the bidding of construction contracts are in compliance with the requirements of the Iowa Code and Iowa Administrative Code.

    1. Public Competitive Bidding
      1. The university, in the name of the Board, shall advertise and competitively bid the contemplated capital improvement or construction consistent with provisions of Iowa Code.

      2. Targeted Small Businesses Construction Contracts

        All laws and rules pertaining to solicitations, bid evaluation, contract awards, and other procurement matters apply to targeted small business targets to the extent there is no conflict. If Iowa Code related to targeted small businesses conflicts with other laws or rules, then Iowa Code related to targeted small business shall govern.

    2. Bid Security
      1. Bid security shall be as provided in Iowa Administrative Code. Bids accompanied and secured by any other form of bid security or for which no bid security is provided shall automatically be disqualified.

      2. As permitted by Iowa Code, on a project total bid of $50,000 or less, Certified Targeted Small Businesses may either provide a bid bond OR a bond waiver from the Department of Inspections and Appeals. The waiver applies only to a prime contract where the total, individual transaction does not exceed $50,000.

      3. Other provisions related to the requirements for and provisions of bid security are detailed in Iowa Administrative Code.

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  11. Bid Openings, Receipt of Construction Bids and Award of Construction Contracts

    1. Notification of Bid Openings

      The universities shall notify the Board Office immediately when a bid opening for a project with a budget of $500,000 or greater is scheduled, via e-mail or an alternate method to be determined by the university and the Board Office.

    2. Receipt of Construction Bids
      1. All construction bids shall be received as detailed in the advertisement for bids and “the instructions to bidders” after which such bids will promptly be publicly opened and read aloud by the chief business officer or designee.

      2. No bid shall be received after the designated time for receipt of bids unless the university's representative determines that a prospective bidder was in line ready to submit a hard copy bid at the designated time for receipt of bids.

      3. Upon receipt, hard copy bids will receive a time stamp and be secured by a university representative and moved by a university representative to the place designated for opening of bids.

      4. The place where bids are to be opened publicly and read aloud shall be posted at the location where bids are received.

      5. Any bidder who submitted a timely bid and has concerns related to the bidding of a construction contract under this chapter shall contact the university Associate Vice President of Facilities or equivalent position, or his/her designated representative, within two university business days following public opening of the bids. The Associate Vice President of Facilities or equivalent position, or his/her designated representative, shall discuss the issue(s) with the bidder in an effort to resolve the dispute. If an acceptable resolution is not achieved, the Associate Vice President or equivalent position or his/her designated representative, shall document the bidder’s concerns in writing and forward them to the appropriate decision-maker along with the recommendation to award the contract. Once a contract has been awarded in accordance with this chapter the decision is final.

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  12. Construction Contracts and Change Orders

    1. Construction Contracts

      A Regent construction contract shall be let consistent with Iowa Code to the lowest responsible bidder. However, if in the judgment of the Board, bids received are not acceptable, the Board may reject all bids and proceed with the construction, repair, or improvement by a method as the Board may determine as provided by Iowa Code.

    2. Reports and Awarding of Contracts
      1. For projects with approved budgets of less than $500,000, the construction contract shall be awarded by the institution

      2. On projects with budgets of $500,000 or more, the universities shall forward to the Board Office, via a method to be determined by the university and the Board Office, a copy of the bid tabulation within 24 hours of the bid opening. The bid tabulation shall include the construction cost estimate(s) for the Base Bid and any alternates.

      3. For projects with approved budgets between $500,000 and $999,999, the construction contract shall be awarded by the institution unless there are unusual circumstances, other than a minor irregularity, in which case the award shall be referred to the Board Office for action. (When the contract is awarded by the institution, a copy of the bid tab and Notice of Award shall be provided to the Board Office.)

      4. For projects with approved budgets of $1,000,000 or more, the construction contract shall be awarded by the Board Office, but may be referred for Board action at the discretion of the Board Office.
        1. The chief business officer or designee shall furnish to the Board Office, via a method to be determined by the university and the Board Office, a signed recommendation for award of the construction contract which will include the copy of the bid tabulation with construction cost estimate(s), a report of the bid opening and any bidding irregularities, as well as a written statement indicating whether award of the contract to the low responsible bidder will allow the project to proceed within the last approved project budget or whether a revised project budget is necessary.

        2. The award recommendation should include copies of any targeted small business documentation provided with the bid, if applicable.

        3. If the chief business officer or designee determines that any unusual circumstances exist which require special attention of the Board, the report of the bid opening and the award recommendation shall include such a statement.

        4. The Board Office shall notify each university formally by letter of action taken on each award of a contract. The contract shall not be considered to be awarded until the university receives a formal letter from the Board Office. Upon approval to award the contract by the Board Office, the university may proceed to issue a "Notice of Award" to the contractor with a copy to the Board Office.

      5. Regardless of other provisions of this Manual, for all projects with budgets exceeding $500,000 for which there are unusual circumstances other than a minor bidding irregularity, the construction contract shall be awarded by the Board Office.

    3. Construction Contract Change Orders
      1. The university may authorize or submit to the Board Office for approval change orders to the construction contract.

      2. All change orders shall be accompanied by an explanation of the reason for the change.

      3. For projects with budgets of less than $1,000,000, change orders shall be approved by the institution.

      4. For projects with budgets of $1,000,000 or more, change orders shall be approved by the institution, unless a single change order exceeds 5% of the contract amount or $100,000 whichever is less [with a minimum of $50,000] and/or the sum of the cumulative change orders exceeds 20 percent of the original construction contract amount. If the amount of the change order(s) exceeds this threshold, the change order shall be approved by the Board Office. With the concurrence of the Board Office, the twenty percent threshold may be based on the original construction contract amount plus the sum of prior change orders. Information on all approved change orders for projects of $1,000,000 or more shall be reported to the Board as needed.

    4. Retention from Payments on Contracts
      1. Retention from payments to construction contractors is governed by provisions of Iowa Code.

      2. Iowa Code provides for prompt payment by the contractor to its subcontractors.

    5. Iowa State Sales Tax on Construction Projects
      1. The services and materials furnished as part of Regent construction projects are generally exempt from state sales tax.

      2. Iowa Code provides two options to deal with Iowa state sales tax on Regent construction projects.
        1. Regent universities may issue exemption certificates to contractors and subcontractors allowing them to purchase, or withdraw from inventory, building materials for the contract free from Iowa sales tax following Department of Revenue procedures, or

        2. The contractor pays Iowa sales tax on all building materials and includes that cost in the bid; the contractor then submits Department of Revenue forms to the Regent university to document the amount of Iowa sales tax paid on the construction materials incorporated into the real property. The Regent university would then apply for a refund of the Iowa sales tax following Department of Revenue procedures.

        3. The Conditions of the Contract for all Regent construction projects shall identify whether exemption certificates will be issued.

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  13. Acceptance of Completed Construction Contracts

    1. The chief business officer or designee, is authorized to accept contract work as complete and authorize final payments on behalf of the Board of Regents and in accordance with Iowa Code. The waiting period, required by Iowa Code, shall commence on the date of such acceptance and authorization.

    2. The contract performance bond shall provide coverage for at least one year following contract acceptance by the institution and permit the Board recourse to remedy contractor deficiencies without prejudice due to prior acceptance of the contract by the institution.

    3. All construction contracts for projects with budgets of $500,000 or more, which have been accepted as complete by the chief business officer, shall be reported to the Board Office in a method to be determined by the Board Office.

  14. Final Reports

    Final reports for completed capital projects with budgets of $500,000 or more shall be sent to the Board Office in a timely manner. The final report document shall show in summary form the last approved project budget, expenditures, balance or overdraft in the project account, and disposition of the balance or overdraft (with explanation).

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  15. Policies for Institutional Roads Projects

    1. Projects administered by the Iowa Department of Transportation (Department) will proceed according to Department rules and regulations after a project description and budget have been approved by the institution, Board Office, or Board according to requirements of this Chapter.

    2. Projects administered by the Board of Regents institutions will follow Board policies as outlined in this Chapter.

    3. On certain projects a university may be responsible for the preliminary engineering, design, administration, contract letting, construction engineering, and inspection of a programmed institutional road construction project. The Department shall be informed, consulted, and shall concur in the various phases of the project as determined by a formal agreement between the Board and the Department. The Department shall reimburse the university for the actual construction and design costs of the programmed project, as detailed in the formal agreement.

    4. The Department shall enter into maintenance agreements with the Regent institutions. Agreements shall set out institutional road mileage to be maintained by each institution and shall specify the routine maintenance categories for which each institution shall be reimbursed.

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  16. Naming

    1. All proposed honorary names of facilities, properties, or university units (except minor facilities as defined below) owned or operated by the five Regent institutions, including UIHC, or the Board of Regents, State of Iowa, must have specific Board of Regents approval prior to naming. “Major Units” include entire buildings, wings of buildings, colleges, programs and large sections of campus. “Minor Units” include campus areas or sections of facilities (e.g., rooms, labs, open spaces, streets, structures, physical features, etc.). Naming of Minor Units or functional names of Major Units (e.g. Physics Building, Chemistry Building) may be approved by the institutional head and do not require Board of Regents approval.

    2. Before proceeding with any naming, all circumstances surrounding the naming must be carefully considered, including the overall benefit to the institution, whether the name is and will continue to be a positive reflection on the institution, and whether the name comports with the purpose and mission of the Board of Regents and its institutions.

    3. The Board may name facilities, properties or university units in honor of persons (living or deceased) or, entities such as a business or foundation. Examples of the categories of persons and entities eligible include:
      1. Alumni with close ties to the institution.

      2. Distinguished Iowans.

      3. Persons who have made an outstanding contribution to a field of study, discipline, university, the State of Iowa, the nation or world.

      4. Donors who have made significant contributions to the institution generally, to a college or major unit, or to a related program.

      5. Donors who have made significant contributions toward construction, renovation and/or the critical programmatic, annual operating, or future capital renewal costs of new, renovated, or other existing facilities.

      6. Employees (presidents, superintendents, faculty staff) – no earlier than two years following the end of employment/appointment or upon death. No unit may be named for a current Regent employee.

      7. Combinations of the above.

    4. Corporate Naming

      Corporate namings require a thorough degree of due diligence to avoid commercial influence or conflict of interest.


    5. Institutional Responsibilities
      1. Each institutional head shall regularly inform the President and President Pro Tem of the Board of Regents and the Executive Director of developments relating to any possible naming of a Major Unit.

      2. The institution shall:
        1. Ensure that individuals wishing to pursue a gift-based naming opportunity for a Major Unit obtain the permission of the institutional head before any prospective donor is approached;

        2. Consult and coordinate, as needed, appropriate members of the institution’s community and with the appropriate officials of the applicable fundraising arm of the institution to provide the benefit of the collective institutional memory and perspective with regard to the potential naming;

        3. Develop guidelines/rationale to determine the appropriate recognition of a donor, including the contribution threshold for the naming of a Major Unit.

        4. Conduct a thorough “due diligence” review of each donor and the person/entity (if different than the donor) in whose honor the naming is to be made and the implications of the naming for the institution. A thorough due diligence would include, at a minimum:
          1. Review of any potential conflict of interest issues affecting any Regent institution;

          2. Review of potential impact upon the academic and research autonomy of the institution;

          3. Evaluation of the impact on future giving by the donor or others;

          4. Consultation with the Board’s bond counsel to determine whether the naming of the Major Unit could adversely affect existing or future tax-exempt bonds, and if so to what extent; and

          5. Consultation with institutional counsel and, to the extent appropriate, counsel for the applicable fundraising arm of the institution to ensure compliance with applicable laws and regulations.

    6. Utilize a written gift agreement with each donor when the naming of a Major Unit may result (unless this provision is waived by the Board); the agreement must stipulate that, among other items, recognition is subject to the prior approval by the Board of Regents, that it remains subject to applicable policies of the Board, and to subsequent reconsideration by the Board. Reconsideration by the Board may occur in extraordinary circumstances if the prior approved naming may be damaging to the reputation of the Board or the institution; or contradictory to applicable law or to the policies, procedures or strategic objectives of the Board or institution.

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