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. Alternative Delivery Methods (ADMs)
  7. Design Consultant (Design Professional) and Construction Manager Selection, Agreements and Amendments
  8. Program Statements
  9. Schematic Design Documents
  10. Project Descriptions and Budgets
  11. Preparation of Plans and Specifications
  12. Bidding of Construction Contracts
  13. Bid Openings, Receipt of Construction Bids and Award of Construction Contracts
  14. Construction Contracts and Change Orders
  15. Acceptance of Completed Construction Contracts
  16. Final Reports
  17. 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 the Annual Facilities Report, which includes the:
      • Five-Year Capital Plans for State Funds
      • Facilities Governance Report
      • Institutional Roads Program
    3. Approval of financing of capital projects.
    4. Review of facility stewardship.
  2. Campus Master Plans
    1. Each university shall present an updated campus master plan to the Property and Facilities Committee or the Board 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 mission and strategic plans.
  3. Annual Facilities Report
    Submitted annually to the Board for approval, the Annual Facilities Report is a comprehensive summary of Board of Regents’ facilities that is presented to the Property and Facilities Committee
    1. Five-Year Capital Plans, include three sections:  
      • State-Funded Five-Year Capital Plan, including the next fiscal year’s capital appropriation requests,
      • University of Iowa Hospitals and Clinics Five-Year Capital Plan and the
      • Other Funds Five-Year Capital Plan.
  1. State-Funded Five-Year Capital Plan

Annually, the State-Funded Five-Year Capital Plan shall be submitted to the Board Office and presented to the Board. It includes all projects to be funded by state appropriations. After Board approval, the Board Office submits it to the Department of Management, who subsequently submits it to the General Assembly for their consideration.

  1. University of Iowa Hospitals and Clinics Five-Year Capital Plan

Annually, the University of Iowa Five-Year Capital Plan shall be submitted to the Board Office. It includes projects to be funded by the University of Iowa Hospitals and Clinics.

  1. Other-Funds Five-Year Capital Plan

Annually, the Other-Funds Five-Year Capital Plan shall be submitted to the Board. It includes projects to be funded by sources other than state funds and University of Iowa Hospitals and Clinics funds.

  1. Facilities Governance Report

Annually, the institutions shall prepare a facilities governance report in a format provided by the Board Office. The report include information size, age, all funds spent on facilities, facility replacement values, fire and environmental safety and deferred maintenance.

  1. Size, Age and Value of Facilities

Institutions shall report on their facilities in a format provided by the Board Office.

  1. All Funds Spent

Institutions shall report on all funds used in project budgets over $250,000 in a format provided by the Board Office.

  1. Classroom Utilization

Institutions shall report on updates to classroom and instructional technology improvements in a format provided by the Board Office.

  1. Interinstitutional Collaboration

Institutions shall report on interinstitutional collaboration in a format provided by the Board Office.

  1. Fire and Environmental Safety

Institutions shall report on fire and environmental safety projects/improvements in a format provided by the Board Office. These needs should be integrated into the annual Five-Year Capital Plans.

  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.
  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.
  1. Deferred Maintenance

Institutions shall report on deferred maintenance projects/improvements in a format provided by the Board Office. These needs should be integrated into the annual Five-Year Capital Plans.

  1. Institutional Roads Program 

Annually, the institutions shall prepare their Institutional Road Program report in a format provided by the Board Office.

  1. Projects administered by the Iowa Department of Transportation (DOT) will proceed according to DOT 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.  Projects administered by the Board of Regents institutions will follow Board policies as outlined in this chapter.
  2. 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 DOT shall be informed, consulted and concur in the various phases of the project as determined by a formal agreement between the Board and the DOT. The DOT shall reimburse the university for the actual design and construction costs of the project, as detailed in the formal agreement.
  3. The DOT shall enter into maintenance agreements with the Regent institutions. Agreements shall set institutional road mileage to be maintained by each institution and specify the routine maintenance categories for which each institution shall be reimbursed.
  1. Energy Conservation
    1. The institutions shall develop energy conservation plans.
    2. Design Professionals should emphasize energy conservation and life cycle costs in new construction and remodeling projects, consistent with Iowa Code.
       
  2. Facility Stewardship

    1. 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.

    2. 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.

    3. 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 1.0% 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:

    • For a bonded enterprise, future funding for renewal could be obtained either through incremental increases in the “improvement funds” for the enterprise or through planned additional debt capital to be issued as the need arises.

    • 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.

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

2. Real Property

  1. Duties and Responsibilities of the Board of Regents include:
    1. Approval of the sale and purchase of property.
    2. Approval of the disposal, transfer and sale of property and facilities.
    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. Sales and Purchases
    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.
    2. Acquisition includes the procurement of real property by purchase, gift grant or other method.
    3. Disposal includes the transfer of real property to another entity by sale, gift, grant or other method.
      1. 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.
      2. Property purchased shall be purchased at no more than the high appraisal or not more than 5 percent above the average of two appraisals, whichever is less. This policy is not intended to limit negotiation for a price lower than the appraised value.
      3. All requests for Board approval of the sale or purchase of property shall be in a format with necessary documentation as delineated by the Board Office.
  4. Disposal, Transfer or Sale of Property and Facilities
    1. Disposal, transfer or sale of buildings with an estimated fair market value of $25,000 or more shall be approved by the Board.
    2. The chief business officer or designee of each institution is authorized to dispose of obsolete or worn out buildings with an estimated value under $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 institutions include:
      1. Those with the Board as both lessee and lessor as further outlined in this section, including individual subleases within the SUI Research Park, ISU Research Park and farm leases;
      2. Leases under 10,000 gross square feet, with less than $150,000 in annual base rent or for less than five years duration. Leases over 10,000 gross square feet, more than $150,000 in annual base rent or more than five years duration require Board approval. The annual base rent does not include any other costs, including taxes, common area maintenance (CAM) fees, insurance or utilities.  The Board Office may annually increase the $150,000 threshold for annual base rent by the Consumer Price Index – All Urban Consumers (CPI-U).
      3. Lease addenda increasing the amount of leased space, as long as the lease and addenda in total fall within the parameters listed above;
      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 CPI-U.
    5. Each institution will report annually on the new leases, new renewals (excluding renewal periods provided for in the original lease) and property rental rates that the institution entered into over the last fiscal year.
    6. Institutions will identify one institutional office with authority to approve leases, and inform the Board Office and institutional community of the same.
    7. Lease arrangements to be approved by the Board or the institutions will use a form as provided by the Board Office. Deviations from this form for university-approved leases will require the Board Office and institutional general counsel approval.
    8. Institutions may opt to submit a lease for Board approval, even if it falls within their authority to approve.
    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, 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 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).
    13. 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.
  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.)

3. Capital Improvement Projects - Definitions, Duties and Responsibilities

  1. Definition of Capital Improvement Project, New Construction and Renovation
    1. A capital improvement project is one, which provides for the construction, repair, or improvement of buildings including utilities, grounds, razings, mechanical/electrical system upgrades, restroom modifications, roof replacements, exterior envelope repairs and equipment installation projects where the equipment cost is 50% or more of the total construction budget.  Evaluation Criteria is not required.
    2. A major capital improvement project is defined as any new building, major addition or renovation project with an estimated project budget of $2 million or more. Evaluation Criteria is required.
    3. New construction is an entirely new structure or a major addition to an existing structure and/or systems.
    4. A renovation is an upgrade to an existing building and/or systems, improving it to new or like new condition.
  2. Special School Capital Project Requirements

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

Iowa State University shall be responsible for the administration of capital projects at the Iowa School for the Deaf (ISD) and Iowa Braille and Sight Saving School (IBSSS). In conjunction with the Board Office, ISU shall plan the specific responsibilities for ISD, IBSSS and ISU in order to develop docket items for Board meetings, Project Descriptions and Budgets, selection of Alternative Delivery Methods and all other Board of Regents capital project procedures. Specific responsibilities may change depending on the project.

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

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. Approve Permissions to Proceed with Project Planning.
  2. Approve Alternative Delivery Methods.
  3. Approve Schematic Designs.
  4. Approve Project Descriptions and Budgets and a Revised Project Budgets.
  5. Delegate responsibility to the Executive Director, Board Office, or the institution as provided for in this chapter.
  1. Duties and Responsibilities of the Executive Director and Board Office

Whenever a capital improvement project is undertaken at any institution under the control of the Board, the Executive Director and the Board Office, the 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:
  • Alternative Delivery Methods
  • Program Statements
  • Design Professional Selections, Agreements and Amendments
  • Design Build Bridging, Feasibility Study and Ancillary Consultant Agreements
  • Project Descriptions and Budgets and Revised Budgets
  • Construction Contract Awards, Construction Contracts, Payment and Performance Bonds and change orders as provided for in this chapter.
  1. When it is determined to be in the best interest of the Regent enterprise, reject all bids and/or determine alternative procedures.
  2. Advise the Board on actions requested by the institutions on capital projects.
  3. Refer capital project actions requested of the Board Office to the Board at the discretion of the Board Office.
  4. Act on behalf of the Board on capital project actions, subject to Board ratification, when failure to take immediate action would have an adverse impact on institutional programs, cause unnecessary project delays, result in increased costs, or when it is otherwise in the public interest. The Board shall be asked to ratify such actions at the next Board meeting.
  5. Advise the Board regarding institutional plans for fundraising for capital projects.
  6. Provide reports to the Board as needed.
  1. 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. Utilize members of its staff to act as architect, engineer or associate architect or engineer when it is in the institution’s best interest, rather than acquire the services of a private sector consultant(s).
  3. Act as project manager.
  4. Certify to the Executive Director 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 Professional agreements and amendments, contract awards or rejection of bids, and change orders.
  7. Approve:
  • Design Professional Selections, Agreements and Amendments
  • Design Build Bridging, Feasibility Study and Ancillary Consultant Agreements
  • Project Descriptions and Budgets and Revised Budgets
  • Construction Contract Awards, Construction Contracts, Payment and Performance Bonds and change orders as provided for in this chapter.
  1. 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.
  2. Submit to the Board Office a semi-annual report for all ongoing project budgets over $250,000 occurring January 1 – June 30 or July 1 - December 31 of each year, within 45 days of the end of each period. The content and format of the semi-annual report will be provided by the Board Office.
  3. 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 advice on capital project policies and procedures, and d) discuss any capital project issues.
  1. Capital Project Evaluation Criteria

The institutions shall submit information to address the Board’s Capital Project Evaluation Criteria for major capital improvement projects (new building, major additions or renovation projects with estimated project budgets of $2 million or more), when Permission to Proceed with Project Planning is requested or when approval of the Schematic Design and Project Description and Budget are required.

Evaluation Criteria is not required for utilities, grounds, razings, mechanical/electrical system upgrades, restroom modifications, roof replacements, exterior envelope repairs and equipment installation projects, where the equipment cost is 50% or more of the total construction budget.

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, 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.

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; Consultant Agreements and Amendments; Program Statements, Schematic Design Documents; Project Descriptions and Budgets; Construction Contracts and Change Orders.  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

  1. 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 Professional 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 “Capital Project Evaluation Criteria” above).

6. Alternative Delivery Methods

  1. To utilize alternative delivery methods, follow the “Alternative Delivery Method Guidelines” on the Regent’s website.
  2. For project budgets under $5,000,000 using an ADM, submit a request to the Board Office to use the ADM before or with the request for approval of the Design Professional, Design Build Bridging Consultant or Construction Manager Selections and Agreements.  Include three ADM advantages over the traditional Design Bid Build method.
  3. For project budgets over $5,000,000 using an ADM, submit a request to the Board to use the ADM with the request for Permission to Proceed. Include three ADM advantages over the traditional Design Bid Build method.

7. 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, Construction Management Services and Design Build Firm Selection
    1. Iowa Preference

Preference shall be given in accordance with Iowa Code to the selection of design consultant, construction management services firms or design build 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.

For design build firms, it is the design build firm’s choice whether the design firm or the build firm (or both) are based in Iowa or with permanent offices in Iowa.

  1. Design Consultant and Construction Management Selection Process
    1. Projects budgets less than $1,000,000, selection and approved shall be by the institutions. Approval of the negotiated agreement by the institution (as detailed in this Chapter) shall constitute selection of the firm.
    2. Projects budgets more than $1,000,000, selection shall be by an institutional committee and approved by the Board Office.
      1. 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.
      2. The institution shall advertise its need for design services for the project. The institution shall notify the Iowa Chapter of American Institute of Architects (AIA), if the institution's intention is to secure architectural services.
      3. 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.
      4. 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.
      5. 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.
      6. The selection committee’s summary report shall be combined with the agreement and forwarded to the Board Office for approval.
      7. 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.
      8. 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.
      9. The requirements of this section do not apply to the selection of ancillary design consultants such as commissioning agents, quality control, material testing, equipment consultant, testing and balancing, move planning, and move execution. The institutions shall use their discretion to determine the best method to select ancillary design consultants, and shall document the method used. Agreements for ancillary services require approval of the Board Office only when the negotiated fee is $200,000 or greater.
  1. 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.
    2. The selection process for Construction Manager - Agent should follow those outlined above for design consultants.
    3. Just as the contract award and contract approval are two separate Board Office approvals when using the Design-Bid-Build delivery method, the contract award and the contract approval should be two separate Board Office approvals, when using the Construction Manager at Risk or Design-Build delivery methods.
  1. Design Consultant or Construction Management Services Agreements
    1. Projects budgets less than $1,000,000 shall be reviewed and approved by the institutions.
    2. Projects budgets more than $1,000,000 shall be reviewed and approved by the Board Office.
  1. Design Consultant or Construction Manager Services Amendments
    1. Projects budgets less than $1,000,000, amendments to design consultant or construction management services agreements shall be approved by the institution's chief business officer or designee.
    2. Projects budgets more than $1,000,000, 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.
  1. Design Consultant or Construction Manager Fees
    1. 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.
    2. To expedite the start of design, an institution may request a design professional to include their Schematic Design fee with their regular RFP proposal at the time of the final interviews. The fee would be set by the institution and clearly stated in the RFP. After a design professional is selected by the institution, the institution and the design professional would enter into a Schematic Design agreement based on the Schematic Design fee. As Schematic Design nears completion, all remaining design professional services are negotiated and added to the Schematic Design agreement as Amendment #1. The new agreement amount is defined as the sum of the Schematic Design agreement and Amendment #1.
  1. 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.

  1. Design Build Bridging, Feasibility Study and Ancillary Consultant Agreements

Institutions are authorized to use Design Build Bridging, Feasibility Study and Ancillary Consultant Agreements.

  1. Feasibility Study Agreements may involve strategic planning or master planning services related to university facilities for the purposes of establishing the feasibility, concept or scope for capital projects.
  2. Ancillary Consultant Agreements may include, but are not limited to, services for building commissioning, quality control, material testing, equipment consultant, testing and balancing, move planning and move execution.
  3. For Design Build Bridging, Feasibility Study or Ancillary Consultant Agreements with a total anticipated cost less than $200,000, including reimbursables, the institution shall determine the process for selection of the consultant or negotiate with the consultant.  The institution’s chief business officer or designee shall approve the selection and Agreement.
  4. For Design Build Bridging, Feasibility Study or Ancillary Consultant Agreements with a total anticipated cost of $200,000 or more, including reimbursables, the institution shall formally advertise for services, form a Selection Committee, evaluate submittals, short list firms for interviews, interview those firms and make a final selection. The Board Office shall approve the selection and Agreement.

8. Program Statements

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 Professional or with the assistance of the Design Professional.  Once prepared and approved, the Program Statement provides a basis for agreement between the project user, the institution, and the Design Professional.

  1. 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.
  2. Program Statements are not required for utilities, grounds, razings, mechanical/electrical system upgrades, restroom modifications, roof replacements, exterior envelope repairs and equipment installations, where the equipment cost is 50% or more of the total construction budget.
  3. 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.

9. 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 additions 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.
  2. Schematic Designs are not required for utilities, grounds, razings, mechanical/electrical system upgrades, restroom modifications, roof replacements, exterior envelope repairs and equipment installations, where the equipment cost is 50% or more of the total construction budget.
  3. 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.
  4. 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.
  5. Board approvals of both the Schematic Design and Project Description and Budget will constitute Regents final project approval and authorization to proceed with construction.
  6. Material changes in program, design or cost subsequent to the Board’s final approval must be returned to the Board for further approval.

10. 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 only, and does not need Board Office approval.
  1. Project Budgets less than $1,000,000 shall be reviewed and approved by the institutions. Any project budget for the official state-owned residence of an institutional head of $100,000 or more shall be reviewed and approved by the Board Office.
  2. Project Budgets of $1,000,000 to $2,000,000 shall be reviewed and approved by the Board Office.
  3. Projects Budgets of $2,000,000 or more shall be reviewed and approved by the Board.
  4. Revised / Amended Project Budgets

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

  1. Revised Project Budgets less than $1,000,000 Shall be reviewed and approved by the institutions. Please include all revised budgets in the semi-annual report to the Board Office. 
  2. Revised Project Budgets $1,000,000 to $2,000,000 shall be reviewed and approved by the Board Office.
  3. Revised Project Budgets more than $2,000,000 Shall be reviewed and approved by the Board. Revised project budgets less than $750,000 above the last approved budget, shall be approved by the Board Office.

11. 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 comply with the project approved by the Board and the chief business officer or designee shall so certify to the Board Office.
  1. 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.

  1. Requirement for Holding Bids

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

12. Bidding of Construction Contracts

The policies of the Board of Regents, State of Iowa, for the bidding of construction contracts comply 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.

  1. 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.

13. 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 budget of $500,000 or more is scheduled.

  1. 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.
    3. Upon electronic receipt, bids will be secured by a university representative.
    4. The place where bids are to be opened publicly and read aloud shall be posted by the university in the advertisement for bids.
    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.
    6. 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.
    7. With appropriate detailed justification such as the receipt of no bids or under emergency circumstances, an institution may request from the Board Office a waiver of the bidding process and permission to negotiate a contract with a specific contractor.

14. 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.

  1. Reports and Awarding of Contracts
    1. For projects with approved budgets less than $500,000, the construction contract shall be awarded by the institution.
    2. On projects budgets of $500,000 or more, the universities shall forward to 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 $1,000,000, 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 a signed recommendation for award of the construction contract, which will include 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.
      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 project 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.
  1. 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 budgets less than $1,000,000, change orders shall be approved by the institution.
    4. For projects 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. Information on all approved change orders for projects of $1,000,000 or more shall be reported to the Board as needed.
  1. 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.
  1. 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 Board of Regents 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.

15. 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 within project budgets of $500,000 or more, which have been accepted as complete by the chief business officer, shall be reported to the Board Office.

16. Final Reports

Final reports for completed capital projects 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. For any surplus project funds, describe where those funds would be allocated. For any overdraft of project funds, provide an explanation.

17. Naming

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

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

  1. 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.
  1. 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.