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Procedures for Capital Planning (4.14)

Procedures for Capital Planning (4.14)

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This online version is for convenience; the official version of this policy is housed in the University Secretariat. In case of discrepancy between the online version and the official version held by the Secretariat, the official version shall prevail.

Approving Authority: Vice President: Finance and Administration

Original Approval Date: June 19, 2008

Date of Most Recent Review/Revision: October 2, 2023

Office of Accountability: Facilities and Asset Management

Parent Policy: 4.14 Capital Planning Policy

1.0 Definitions

1.1 Affiliated Organization: An organization or entity that has a formal relationship with the University including: (a) a federated or affiliated college under the Wilfrid Laurier University Act; (b) a constituent group of the University community representing students, employees or alumni; (c) users under a written agreement. These relationships are normally outlined through a written agreement or other formal documentation.

1.2 Annual Capital Budget: Planned expenditures to support Facilities and IT Capital Projects prioritized through Policy 4.14 Capital Planning and IT capital planning process in a particular fiscal year.

1.3 Campus Master Plan: Establishes a vision and framework to guide how and where the University campus will physically change in support of the University’s Strategic Plan, Academic Plan and Strategic Research Plan. A Campus Master Plan is developed for each of Laurier’s campuses.

1.4 Capital Plan: An outcome of the University’s Academic Planning, Campus Master Planning and Capital Planning Processes that set out the Capital Projects which the University has assigned Priority for a specified period of time and that require a source of funding.

1.5 Capital Planning Process: The process by which Capital Projects are assessed, prioritized, approved and implemented. The Planning Process informs the Capital Plan and Annual Capital Budget.

1.6 Capital Project: A new building, a building alteration, an infrastructure investment, or space realignment that involves more than equipment or finishes renewal and is over and above the Facilities and Asset Management maintenance operating budget, e.g., space reorganization, expansion or conversion to new uses. Significant open space projects are also Capital Projects. Notwithstanding the inclusion of land or real property in the definition of a Capital Project for the purposes of the Capital Budgeting Policy, for the procedural purposes of the Capital Planning Policy, these items shall be excluded.

1.7 Capital Project Budget: Is inclusive of:

  1. the Capital Project Cost, as defined in policy 4.14, for Facilities Capital Projects, and as defined by Total Cost of Ownership (TCO) for IT Capital Projects; and
  2. planned Funding Sources. 

1.8 Capital Project Cost: A cost that includes all construction, planning, design, project administration, furniture, audio visual, data communications, and other soft costs as well as contingencies for a Capital Project. This does not include operational costs such as, but not limited to, leasing and rental costs.

1.9 Delegated Executive Sponsor: A senior leader (Associate/Assistant Vice-President, Dean, Vice-President, Senior Executive Officer) at the University who endorses a Capital Project within their department, faculty or affiliated organization. This individual is not always the relevant signing authority for a Capital Project as per policy 5.7 Signing Authority Policy. They are responsible for being the strategic lead for the Capital Project which includes, but is not limited to, securing funding, seeking approval from the relevant signing authority, consulting with and receiving confirmation from stakeholders impacted by the Capital Project, and signing off on space use.

1.10 Facilities Renewal: Also referred to as deferred maintenance, is capital expenditures that are required to maintain University Facilities’ functionality over their useful life. The scope of most Capital Projects will include some Facilities Renewal. 

1.11 Funding Sources: Actual or committed (including, but not limited to, fundraising pledges or targets, contributions from future years’ budgets) sources of funding to support a Capital Project. Funding Sources may include, but are not limited to:

  • internal loans
  • external debt
  • fundraising contributions
  • operating fund contributions (including department-specific contributions)
  • ancillary fund contributions
  • contributions from internally restricted net assets (reserves)
  • external party/partner contributions

1.12 Planning Principles: Planning and design directives that guide the University towards a systematic and comprehensive approach for evaluating design alternatives for University Facilities as identified in the Campus Master Plans.

1.13 Priority: The ranking of Capital Projects based on detailed assessment criteria that includes alignment with strategic Priorities of the University, compliance requirements, financial considerations, and funding strategies.

1.14 University Facility/Facilities: All buildings and grounds, owned, leased or operated by the University, including without limitation outdoor playing areas, parking, athletic and recreational fields, and all University residences and housing.

2.0 Capital Planning Process

2.1 All proposed Capital Projects must be submitted by the Delegated Executive Sponsor to the Facilities and Asset Management department in advance of the fall semester Capital Planning Process to be considered for approval as part of the budget development cycle. Proposed Capital Projects must be submitted to the Facilities and Asset Management department() through the Project Request Form. Any Project Request Forms submitted outside of the budget development cycle will be reviewed throughout the year but may experience delays.

2.2 After review by the Facilities and Asset Management department, all department, faculty or affiliated organization funded Capital Projects will follow the process outlined in section 4.0. Capital Projects that require additional space or a change in space usage will be submitted to the Facilities and Space Management Committees (FSMC). For more information on the FSMC, see section 5.0. All other Capital Projects will be submitted to the Capital Projects Committee to be considered for approval as part of the budget development cycle.

2.3 Proposals or interests in initiating a space and/or renovation request must be submitted to the Facilities and Asset Management department through the Project Request Form. If it is determined that additional space or a change in space usage is required, the FSMC will review all relevant information for the Capital Project to ensure compliance with overall Planning Principles and strategies for the University.

2.4 Upon submission of the Project Request Form, the Facilities and Asset Management department will connect with the Delegated Executive Sponsor and primary contact for the Capital Project to review the needs and requirements of the department, faculty or affiliated organization. Following these discussions, an Initial Project Report will be prepared for the Capital Project.

2.4.1 Included in the Initial Project Report, is a feasibility study (this may include conceptual design and/or engineering reports), which is required to inform planning and the Capital Project Cost (estimate) development for the Capital Project. Upon review of the Project Request Form, the Facilities and Asset Management department will determine if an external consultant is required for the feasibility study. The Delegated Executive Sponsor must approve the development of a feasibility study. Funding for the feasibility study must be provided/sought by the Delegated Executive Sponsor, even if the Capital Project does not move forward in the Capital Planning Process.

2.4.2 Once the Initial Project Report is completed the relevant signing authority will review and approve. The Initial Project Report will inform the Capital Project details (including Capital Project Cost) provided to the Capital Projects Committee. The Capital Project Cost is an estimate based on conceptual design. The Capital Project Cost will be further refined once consultants are brought into the Capital Project to create the schematic design.

2.5 The Capital Projects Committee will assess and prioritize Capital Projects based on alignment with the University’s strategic priorities, compliance requirements, financial considerations (revenue generation opportunities and return on investment), and funding strategies. The synergy between Capital Projects and Priorities may impact assessment and prioritization.

2.5.1 The strategic priorities of the University are informed by Laurier’s Strategic Plan, Strategic Mandate Agreement (SMA), Strategic Enrolment Management (SEM), the Strategic Academic Plan, the Strategic Research Plan, the Multi-Campus Strategy, and Campus Master Plans.

2.5.2 Capital Projects will be assessed by compliance requirements in line with, but not limited to, the Accessibility for Ontarians with Disabilities Act, Facilities Renewal, health and safety requirements, security requirements, building code, fire code, sustainability goals and other regulatory requirements.

2.5.3 A review of financial considerations for Capital Projects will be conducted, taking into consideration revenue generation and return on investment, all in the context of the existing Annual Capital Budget and commitments in place. An assessment of the financial projections, inclusive of impacts to the University’s financial health indicators will be performed prior to finalizing proposals.

2.5.4 A review of funding strategies for Capital Projects will be conducted, taking into consideration Funding Sources, internal funding availability, external funding potential and total Capital Project Cost.

2.6 The Capital Projects Committee will be comprised of the following individuals, or their representatives: the Vice-President: Finance and Administration (chair), the Assistant Vice-President: Facilities and Asset Management, the Assistant Vice-President: Financial Resources, the Provost and Vice-President: Academic, the Vice-President: Advancement and External Relations, the Vice-President: Student Affairs, the Vice-President: Research, and the Senior Executive Officer (SEO), Brantford.

2.7 The Capital Projects Committee will assess and prioritize each Capital Project based on the criteria outlined in 2.5.

2.8 At the end of the assessment and prioritization process the Capital Projects Committee, with support from the Facilities and Asset Management department, will prepare a comprehensive Capital Project Priorities List with a five-year cash flow projection, which will inform the Annual Capital Budget.

3.0. Capital Project Implementation

The following section outlines the implementation of Capital Projects identified in the Annual Capital Budget, as set out in policy 4.15 Capital Budgeting Policy, and/or approved through a Project Planning Report.

3.1 The Facilities and Asset Management department will prepare a Project Planning Report, including a Capital Project Cost, for each Capital Project that has been identified for advancement.

3.1.1 With the approval of the relevant signing authority, (as per 5.7 Signing Authority Policy), the schematic design phase may begin once one hundred percent (100%) of the schematic design costs have been committed.

3.1.2 With the approval of the relevant signing authority, the design development phase may begin once one hundred percent (100%) of the design development costs have been committed. At this stage in the Capital Planning Process, the Delegated Executive Sponsor, in consultation with the Facilities and Asset Management department and Financial Resources, will confirm if the Capital Project will move forward or be put on hold.

3.1.3 With the approval of the relevant signing authority, development of the construction documents phase may begin once fifty percent (50%) of the Capital Project Budget has been committed.

3.1.4 With the approval of the relevant signing authority, construction contract award may begin once seventy-five percent (75%) of the Capital Project Budget has been committed.

3.2 The intent of a Project Planning Report is to initiate the fundamental understanding of what the Capital Project will entail based on schematic design and design development. A Project Planning Report will include:

3.2.1 A high level description of the Capital Project including scope;

3.2.2 The Capital Project Cost based on schematic design and design development;

3.2.3 Projected Capital Project Cost escalation;

3.2.4 Identified risks to the Capital Project Cost and schedule along with risk mitigation tactics;

3.2.5 Information on consultation conducted;

3.2.6 Department, faculty and/or affiliated organization to be accommodated in the space; and

3.2.7 Capital Project’s conformity with the University’s overall Planning Principles.

3.3 Financial Resources will prepare a Capital Project Funding Report in parallel with the Project Planning Report that will outline Funding Sources for the Capital Project and projected cash flow analysis with respect to both revenues and expenditures.

3.4 Once a Project Planning Report and associated Capital Project Funding Report are completed they will be submitted to the relevant signing authority, as per policy 5.7 Signing Authority Policy for review and approval.

3.5 Upon approval of a Project Planning Report and associated Capital Project Funding Report, the Facilities and Asset Management department will initiate the approved Capital Project.

3.5.1 At this time, the Capital Project Priorities List will be updated to remove approved Capital Projects.

3.6 If in the course of development, the Capital Project Cost is projected to be greater than the Capital Project Cost referenced in the Project Planning Report, the Capital Project will be submitted to the relevant signing authority for approval through a Project Cost Increase Report. The intent of a Project Cost Increase Report is to provide an updated Capital Project Cost and associated reasons for said increase. Financial Resources will prepare a Capital Project Funding Report in parallel with the Project Cost Increase Report that will include Funding Sources for the Capital Project Cost increase. This total revised Capital Project Cost, inclusive of the original Capital Project Cost and any adjustments through a Project Cost Increase Report, will be the cost considered for the approval limits set out in policy 5.7 Signing Authority Policy.

3.6.1 If the Project Cost Increase Report and associated Capital Project Funding Report are not approved, the Capital Project will be paused and the Facilities and Asset Management department, Financial Resources and the Delegated Executive Sponsor will explore alternate funding strategies, reducing the scope or terminating the Capital Project.

3.7 A Project Cost Increase Report will include:

3.7.1 The increase in Capital Project Cost from the approved Capital Project Cost in the Project Planning Report;

3.7.2 Updated Capital Project Cost of the Capital Project, including rationale for the increase;

3.7.3 Any impact to the schedule and scope of the Capital Project; and

3.7.4 Identified risks to Capital Project Cost and schedule.

3.8 Project Status Reports are recommended for all Capital Projects and must be prepared for all Capital Projects exceeding five (5) million dollars or are deemed to have reputational or significant financial risk. The intent of a Project Status Report is to provide updated project information on Capital Project Cost, design and construction progress. The Board of Governors will review Project Status Reports for all Capital Projects over five (5) million dollars.

3.9 Project Completion Reports are recommended for all Capital Projects and must be prepared at the completion of a Capital Project exceeding five (5) million dollars or that is deemed to have reputational or significant financial risk. The Project Completion Reports will be submitted to the Board of Governors for information. The purpose of a Project Completion Report is to confirm that financial closure of the Capital Project has occurred and to identify any Capital Project Cost and schedule variances, positive or negative. A Project Completion Report will include:

3.9.1 A summary of the scope of work and Capital Project deliverables, indicating the date of completion for each;

3.9.2 Any contingencies or conditions related to the completion of the Capital Project;

3.9.3 The final Capital Project Cost;

3.9.4 A comparison of the approved schedule against the actual completion dates for the Capital Project;

3.9.5 Any changes to the scope of the Capital Project and their impact on performance, Capital Project Cost or schedule; and

3.9.6 An overview of lessons learned from the Capital Project, including problems and/or issues experienced and the corrective actions taken.

4.0 Capital Planning Process – Department, Faculty or Affiliated Organization Funded Capital Projects

The following section outlines the Capital Planning Process for Capital Projects funded from department, faculty or affiliated organization budgets that arenot identified on the Annual Capital Budget, and require approval by the relevant signing authority as per policy 5.7 Signing Authority Policy.

4.1 Proposals or interests in initiating a space and/or renovation request must be submitted to the Facilities and Asset Management department through the Project Request Form. If it is determined that additional space or change in space usage is required, the FSMC will review all relevant information for the Capital Project to ensure compliance with overall Planning Principles and strategies for the University. 

4.2 Upon submission of the Project Request Form, Facilities and Asset Management will connect with the Delegated Executive Sponsor and primary contact for the Capital Project to review the needs and requirements of the department, faculty or affiliated organization. Following these discussions, an Initial Project Report will be prepared for the Capital Project.

4.2.1 Included in the Initial Project Report is a feasibility study (this may include conceptual design and/or engineering reports), which is required to inform planning and the Capital Project Cost (estimate) development for the Capital Project. Upon review of the Project Request Form, the Facilities and Asset Management department will determine if an external consultant is required for the feasibility study. The Delegated Executive Sponsor must approve the development of a feasibility study. Funding for the feasibility study must be provided/sought by the Delegated Executive Sponsor, even if the Capital Project does not move forward in the Capital Planning Process.

4.2.2 Once the Initial Project Report is completed the relevant signing authority will review and approve. The Initial Project Report will inform the Capital Project details (including Capital Project Cost). The Capital Project Cost is an estimate based on conceptual design. The Capital Project Cost will be further developed once consultants are brought into the Capital Project to create the schematic design.

4.3 TheFacilities and Asset Management department will prepare a Project Planning Report, including a Capital Project Cost for the Capital Project.

4.3.1. With the approval of the relevant signing authority, the schematic design phase may begin once one hundred percent (100%) of the schematic design costs have been committed.

4.3.2. With the approval of the relevant signing authority, the design development phase may begin once one hundred percent (100%) of the design development costs have been committed. At this stage in the Capital Planning Process, the Delegated Executive Sponsor, in consultation with the Facilities and Asset Management department and Financial Resources, will confirm if the Capital Project will move forward or be put on hold.

4.3.3. With the approval of the relevant signing authority, development of the construction documents phase may begin once fifty percent (50%) of the Capital Project Budget has been committed.

4.3.4. With the approval of the relevant signing authority, construction contract award may begin once seventy-five percent (75%) of the Capital Project Budget has been committed.

4.4 The intent of a Project Planning Report is to initiate the fundamental understanding of what the Capital Project will entail based on schematic design and design development. A Project Planning Report will include:

4.4.1 A high level description of the Capital Project including scope;

4.4.2 The Capital Project Cost based on schematic design and design development;

4.4.3 Projected Capital Project Cost escalation;

4.4.4 Identified risks to the Capital Project Cost and schedule;

4.4.5 Information on consultation conducted;

4.4.6 Department, faculty and/or affiliated organization to be accommodated in the space; and

4.4.7 Capital Project’s conformity with the University’s overall Planning Principles.

4.5 Financial Resources will prepare a Capital Project Funding Report in parallel with the Project Planning Report that will outline Funding Sources for the Capital Project and projected cash flow analysis with respect to both revenues and expenditures.

4.6 Once a Project Planning Report and associated Capital Project Funding Report are completed they will be submitted to the relevant signing authority as per policy 5.7 Signing Authority Policy for review and approval.

4.7 Upon approval of a Project Planning Report and associated Capital Project Funding Report, Facilities and Asset Management department will initiate the Capital Project.

4.8 If there is an increase in the approved Capital Project Cost the Capital Project will be submitted to the relevant signing authority for approval through a Project Cost Increase Report. The intent of a Project Cost Increase Report is to provide an updated Capital Project Cost and associated reasons for said increase. Financial Resources will prepare a Capital Project Funding Report in parallel with the Project Cost Increase Report that will include Funding Sources for the Capital Project Cost increase.

4.8.1 If the Project Cost Increase Report and associated Capital Project Funding Report are not approved, the Capital Project will be paused and the Facilities and Asset Management department, Financial Resources and the Delegated Executive Sponsor will explore alternate funding strategies, reducing the scope or terminating the Capital Project.

4.9 A Project Cost Increase Report will include:

4.9.1 The increase in Capital Project Cost from the approved Capital Project Cost in the Project Planning Report;

4.9.2 Updated Capital Project Cost of the Capital Project, including rationale for the increase;

4.9.3 Any impact to the schedule and scope of the Capital Project; and

4.9.4 Identified risks to Capital Project Cost and schedule.

5.0 Facilities and Space Management Committee

5.1 The Facilities and Space Management Committees (FSMC), one for each of Laurier’s campuses, allocate and approve all space owned and/or leased by Laurier. This does not include project budget and funding approvals. The mandate of the FSMC is to:

5.1.1 Review space requests of 500 sq. ft. or greater;

5.1.2 Review space requests related to renovation projects up to a project budget of five (5) million dollars;

5.1.3 Review and approve space requests for alteration, change in use and reorganization of existing space including those from Academic Affiliates and those related to changes in scope of previously approved requests;

5.1.4 Provide consultation on proposals of a strategic nature for alteration, changes in use and reorganization of existing space which multiple departments/faculties occupy;

5.1.5 Periodically review University space to ensure it is being used efficiently;

5.1.6 Recommend space Priorities to Facilities and Asset Management based on consideration of those projects proposed by the department/faculty; and

5.1.7 Review the annual forecast of space needs for the University.

5.2 The FSMC will evaluate space requests in alignment with the Space Allocation Principles. For further information on the FSMC and its membership see the Terms of Reference.

Relevant Legislation

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