Project Delivery Business Operations Detailed June 2015 Final

Project Delivery Business Operations Detailed June 2015 Final PD Training FMD WUSM 6/15/15 1

Step 1: Needs Development Step 1: Needs Development (Jennifer) Obtain Project number from Construction Management System The Construction Management System auto generates the number. When the project request is received a decision is made within facilities to start the review as a initiative. - In this step it is critical to enter all known information into the Construction Management System. This includes but isn’t limited to: Building, Floor, room(s), Department, Proposed use, Scope of Work. Final PD Training FMD WUSM 6/15/15 2

Step 2: Scope Development Step 2: Scope Development (Janice) Create Resolution Narrative Document highlighting scope of work , cost and funding sources. This document’s primary focus provide information to the various approval committees. Present Resolution at various approval committees depending on financial threshold of project For some committees the resolution plus a presentation is used to obtain approval. Final PD Training FMD WUSM 6/15/15 3

The Business Operations Approval Levels Less than 100K Asst. V.C. - Facilities Capital Planning - Monthly Review 100K - 499,999 Executive Vice Chancellor Capital Planning - Monthly Review Projects Committee -Monthly Review 500K - 1,999,999 Capital Planning Executive Vice Chancellor Projects Committee (Chancellor approval) Med. Finance Committee ( 1 Million & above) 2M - 4,999,999 Capital Planning Executive Vice Chancellor Projects Committee (Chancellor approval) Med. Finance Committee B & G Committee 5M and above Capital Planning Executive Vice Chancellor Projects Committee (Chancellor approval) Med. Finance Committee B & G Committee Executive Committee Final PD Training FMD WUSM 6/15/15 4

Step 2: Scope Development Step 2: Scope Development (Janice) After all approvals are obtained, set up funds in the financial system and the CMS (Construction Management System). Depending on size of project, this could be Property Accounting or Business Operations. The funds are set up via journal or budget adjustment in AIS. In CMS the committee approvals will be recorded and will generate the project budget. Final PD Training FMD WUSM 6/15/15 5

Step 2: Scope Development Notify stakeholders when funds are available in financial system via email from Business Operations Create work request in Work Order System Once an initiative becomes a project, it should be set up in the Work Order System This allows Facilities to bill out services Final PD Training FMD WUSM 6/15/15 6

Step 3: Selection of Design Team Step 3: Selection of Design Team (Angie) Prepare contract agreement PM submits contract checklist and/or proposal to Business Operations The required information is entered into the contract template in CMS Business Operations generates, saves , and sends the contract to the PM for review and approval through the CMS workflow Send contract electronically to A/E for signature After A/E signs, contract is routed through the CMS workflow for University approval Final PD Training FMD WUSM 6/15/15 7

Step 3: Selection of Design Team Create purchase order in financial system The PO is created by Business Operations in Marketplace which feeds AIS and will feed the CMS the details Final PD Training FMD WUSM 6/15/15 8

Step 4: Design Phase There are no Business Operations tasks in this step Final PD Training FMD WUSM 6/15/15 9

Step 5: Selection of Contractor Step 5: Selection of Contractor (Jennifer) Did we have 3 competitive bids? Some projects require a specific contractor for a variety of reasons and are not competitively bid. In this instance sole source justification and approval is required If proposal exceeds 25k, the university purchasing policy requires three competitive bids. Reason why we might not competitively bid: - Project requires expertise of a certain vendor - Emergency repair/project (accelerated project timeline) - Equipment repair requires use of a particular vendor Final PD Training FMD WUSM 6/15/15 10

Step 5: Selection of Contractor Step 5: Selection of Contractor In the absence of the 3 competitive bids, a Supplier Selection Justification Form (Sole Source form) must be completed. The approval of the form depends upon the monetary amount Create PO or Standard form of agreement and obtain approvals Final PD Training FMD WUSM 6/15/15 11

Step 6: Construction Phase Step 6: Construction Phase (Angie) Review and process progress payments Vendor e-mails Business Operations invoice Review to validate: PO#, Contract amounts match proposals, prior payments, accuracy of amounts, relevant lien waivers, direct payments to MBE/WBE subcontractors After review enter into the Construction Management System and route to PM & Fiscal Administrator for review/approval Save the invoice electronically in the project file Final PD Training FMD WUSM 6/15/15 12

Step 6: Construction Phase Step 6: Construction Phase After all reviews/approvals, we make a Xerox copy of invoice and put in campus mail to CFU for payment processing. We keep copy and date stamp. Monitor payment status. Once paid we can throw our paper copy away. Final PD Training FMD WUSM 6/15/15 13

Step 6: Construction Phase Step 6: Construction Phase (Jennifer) Process change orders as necessary Reasons why a change order occurs (appropriate approvals must be obtained prior to the creation of the change order) 1. Scope change (PM manual has a complete list of reasons why scope might change – PCO Reason & Terms form) 2. Spending of contingencies Final PD Training FMD WUSM 6/15/15 14

Step 6: Construction Phase Step 6: Construction Phase - PM sends Business Operations a request for a Change Order including the PCO reasons and term sheet form. - Validate project has funding available - If funding is not sufficient then getting additional funding requires going back to Step #2 - Create change order in the Construction Management System and route for external approvals - After external approvals have been obtained Change Order is entered into AIS and routed for appropriate internal approvals. Final PD Training FMD WUSM 6/15/15 15

Step 7: Transition, Activation and Closeout Step 7: Transition, Activation and Closeout (Janice) Project Close Out File Review Encumbrances & remaining set asides - Looking for open encumbrances that have not been paid and reviewing the list with PM and or vendor. Close out project - Once all open encumbrances are eliminated and no additional POs are pending Project is marked complete in the Construction Management System. Account in AIS is closed and residual funding returned to original sources. Final PD Training FMD WUSM 6/15/15 16

Step 7: Transition, Activation and Closeout Step 7: Transition, Activation and Closeout Project Close Out File Review Post Project Evaluation feedback for process improvement opportunities. Final PD Training FMD WUSM 6/15/15 17

Wrap Up Keys to Success: Communication Getting appropriate approvals Reconciling invoices with purchase orders and/or contracts. Follow through to make sure CFU pays invoices. Final PD Training FMD WUSM 6/15/15 18

Questions / Discussion Final PD Training FMD WUSM 6/15/15 19