UAMS ADMINISTRATIVE GUIDE

NUMBER: 11.2.01
DATE: 10/03/02
REVISION:
 09/02/2003

SECTION: CAMPUS OPERATIONS
AREA: FACILITIES
SUBJECT: ESTIMATES, RENOVATION, CONSTRUCTION, OR FURNITURE RELATED PROJECTS

PURPOSE

The purpose of this policy is to inform departments within the University of Arkansas for Medical Sciences (UAMS) system of the uniform procedures to be followed in obtaining authorization for proposed renovation/construction projects involving UAMS facilities.

POLICY

UAMS departments initiating renovation or construction requiring wall support, electrical, phone, data wiring, modular furniture systems, or costing in excess of two-thousand dollars ($2,000.00), and/or possibly resulting in a structural or functional change must obtain proper approval prior to the start of any work.  In order to initiate any estimate, renovation, or construction project, you must complete and submit a UAMS Construction Estimate Request (CER) Form.

Construction Estimate Request (CER) Form

Freestanding furniture, not requiring utility interface, may be purchased directly through the Procurement Services department without Construction Department Co-ordination.  However, we do have professional interior planning expertise available to assist you.  A reasonable hourly fee would be charged for this service.

Modular furniture requirements should be processed as a construction project since the cost is normally above the ($2,000.00) threshold and utility interface is required.

If the right people are involved early, most problems can be avoided and costs/delays minimized

PROCEDURE - Routing the UAMS Construction Estimate Request (CER) Form

1.      Visit our website at http://www.uams.edu/ccm and click on the Forms and Policies section.  Here you will have two forms available to you, an online form or a paper form.  If you wish to use the online form, simply click on the link to the Online CER Form, fill it out thoroughly, and hit the “submit” button.  If you wish to print out a paper version of the CER form, simply click on the link, print and fill it out, then send it to our department (Construction and Contract Management (CCM), Slot 605, Phone: 686-5890).  Please Note: If you do not completely fill out all spaces on our forms, we cannot begin to process the paperwork.

2.      To expedite your request, please use the Online CER Form and instructions provided to ensure an accurate and efficient project initiation process.

3.      Once we have received your CER Form, either online or in paper format, we will log it into our database and contact you to set up an initial meeting to further discuss your needs.

4.   This scheduled Initial Planning Meeting is to introduce you to the planning team that will carry out your project from conceptual design to actual completion.  The meeting is free.  You will be asked questions and allowed to ask questions to help us both understand what it is you truly want.

5.      Once this meeting is completed, we will come back to our office and begin researching your request and needs.  From this point forward, any subsequent meetings will be held at a cost to your department.  We may only meet with you once or there may be many meetings, as in the case with a new building.  We will then provide you with an estimate and action letter.  This action letter allows you to tell us based on the estimate, how to proceed.  You can choose to cancel your initial request, put it on hold, or authorize us to proceed.

6.      If you authorize us to proceed, we will present you with a Construction Funding and Financial Approval (CFFA) Form.  PLEASE NOTE: It is YOUR responsibility to closely monitor the CFFA Form through the various stages of approval.  If your request is urgent, we recommend you walk the CFFA through to ensure prompt response.  If you have questions, please review the instructions for the CFFA Form.  We cannot finalize the plans and construction specifications to begin the construction phase until the CFFA Form has been returned to our department with all the appropriate signatures and funding sources.

7.      Planning and Design of Renovation/Construction Projects: Planning and design for renovation/construction projects is conducted through one of several available methods listed below, with costs assessed accordingly:

A.     Small Projects (less than $100,000): Small projects are normally designed in-house by the UAMS Construction & Contract Management Department.  Occasionally, a specific engineering expertise may be required to supplement the in-house planning capabilities.  This expertise will be obtained on an hourly basis from an engineering firm currently on retainer to UAMS.  Therefore, an engineering consultants fee will be charged in addition to the in-house planning fee that is shown as a sliding scale in Table 1.  The engineering fee is normally composed of direct costs plus overhead, profit and reimbursable expenses.

B.     Medium Projects (between $100,000 and $1,000,000): Medium projects are normally planned by an Architectural/Engineering (A/E) Consulting firm.  UAMS has several A/E firms available with maximum fee annual retainer contracts to draw upon for short notice requirements.  These projects are charged fees on an hourly basis and typically result in higher fees per dollar of construction costs for various reasons.

  C.  Large Projects (usually over $1,000,000): Large projects are normally planned and designed by an A/E Consulting firm selected through a formalized selection process approved by the UA Board of Trustees.  The A/E Consultants fee is negotiated using established guidelines after the A/E Consulting firm is selected.  This fee is normally between 5% and 15% of the construction cost plus reimbursable expenses.  Reimbursable expenses are things like blueprints, travel time, and other operating expenses.  Factors affecting this rate are complexity of the project, type of construction and degree of service required.  For example, renovation of existing structures is typically more complicated than new construction on a clean site and carries a higher percentage fee.  Also, UAMS usually requires less construction administration due to having our own project managers.  Therefore, a lower fee may be obtained.

8.      Abatement of Hazardous Materials: Some projects may require abatement of hazardous materials prior to the start of renovation/construction work.  The UAMS Construction Department plans and manages the design & removal process.  A fee of the abatement contract cost will be assessed for this planning and management, normally 7.5%.  The requesting department should be aware that additional fees will be assessed for an independent contract consultant to monitor the area and take various samples during the abatement work, as currently mandated by the Arkansas Department of Environmental Quality (ADEQ).  Hazardous material abatement consultant fees vary greatly.  In the Example 1 to follow, the fees are shown as 25%.  However, the range of cost for these services can vary depending on the number of phases, size and complexity of the job, and regulatory requirements.  However, some small hazardous material project monitoring fees could cost considerably more in percentage than the fees for medium projects.

9.        Other In-House Services: Two other services performed by the UAMS CCM are A/E Design Management and Interior Planning Co-ordination.  These services provide guidance and improve the facility planning process to insure establishment and maintenance of high facility standards at minimal costs.  Our employees are degreed and highly experienced professionals.  Percentages listed in Table 1, include necessary costs to support these vital functions.

77

Facility Project
Construction Costs

* CCM Fee as a Percentage
of Construction costs

less than $25K

10.5%

$25K - $50K

10.0%

$50K - $100K

9.0%

**$100K - $125K

3.0%

$125K - $275K

2.5%

$275K - $1M

2.0%

$1M and above

1.75%

*

        *The figure in this column is composed of an in-house planning fee (up to $100K) of 6.0%, an A/E and Interior Design coordination fee of 3.0%, if applicable, and a construction Project Management fee of 1.5%.  The total maximum in-house fee is 10.5%.  If we do interior plans in-house a fee composed of 6 - 7% of furniture cost is charged.

** The reason for the large drop in percentage of CCM fees above $100K is the omission of the in-house planning fees.  The construction department will provide a rough estimate of this fee, if requested, based on the information that is available at that time.  Actual A/E consultant fees (applicable for projects over $100K) are not included and should be added to those figures listed.  The A/E consultant fee will either be based on a percentage of the general contract amount or by an hourly rate depending on the consultants contract agreement.

What is a contingency?  A contingency is defined as a cost that will be incurred during renovation of construction for items that are unforeseen or unknown during the planning and design of a project.  Example: During the demolition phase of a renovation project, we discover a steam or water line inside of a wall that must be removed or relocated.  The cost for removal of the piping would be considered as a portion of the overall contingency allocated for the job.  So if the project budget of $50,000 has a contingency of 15%, the contingency would be $7,500.  If the cost of removing the piping were $2,500, your contingency portion of the budget would be reduced leaving a balance of $5,000 in your contingency for other unknown/unseen items that may be discovered later.  It is important to understand that the construction contingency must not be used for changes requested by the project sponsor.

The CCM contingency for projects up to approximately $200K varies from 10 to 15%.  The CCM contingency for larger projects varies in a range from 3% to 15% of the construction costs depending upon the likelihood of unknown conditions which typically cost money to address when discovered.

Projects under $50,000 will have a higher % fee due to fixed cost & reduced economies of scale.  Occasionally, time sensitive small dollar projects may be A/E designed and cost more as a result of this.

It should be noted that these costs are not representative of all funds required to complete a project.  Some items requiring funding are:

(a)    Telephone service

(b)   Furniture and movable equipment

(c)    Moving expenses

(d)   Housekeeping clean-up

(e)    Physical Plant charges for utility coordination and miscellaneous work

(f)     Commissioning building systems to insure proper operation.

Here is what a typical budget sheet looks like:
 

Project Title

 

 

 

 

 

 

ADH Classification

 

 

 

 

Design

Square Feet of Project

 

 

 

 

Estimate

General Construction Costs Estimates

 

Cost per Square Foot

 

1)

General Construction Estimate

 

$0.00

 

$0

2)

Design Contingency

 

$0.00

 

$0

3)

Construction Contingency

 

$0.00

 

$0

4)

Furnishings and Graphics

 

$0.00

 

$0

5)

Furnishings Contingency

 

$0.00

 

$0

6)

Architect and Engineering Fees

 

$0.00

 

$0

7)

Commissioning Fees

 

$0.00

 

$0

8)

Project Reimbursable Expenses

 

$0.00

 

$0

9)

Construction Planning and Management Fee

 

$0.00

 

$0

10)

Interior Design Planning and Management Fee

 

$0.00

 

$0

11)

Asbestos Abatement

 

$0.00

 

$0

12)

Asbestos Abatement Planning Fee

 

$0.00

 

$0

13)

Phone Service to Building

 

$0.00

 

$0

14)

Phone / Data Wiring and Jacks

 

$0.00

 

$0

15)

Physical Plant Support

 

$0.00

 

$0

16)

Signage

 

$0.00

 

$0

17)

Moving Expenses

 

$0.00

 

$0

18)

Security and Fire Alarm Connections

 

$0.00

 

$0

19)

Equipment

 

$0.00

 

$0

20)

Miscellaneous

 

$0.00

 

$0

21)

Occupational Health & Safety fees

 

$0.00

 

$0

22)

Housekeeping

 

$0.00

 

$0

23)

Campus Paging

 

$0.00

 

$0

24)

IS Equipment

 

$0.00

 

$0

25)

Audio Visual Equipment

 

$0.00

 

$0

26)

Bond Fees

 

$0.00

 

$0

27)

Maintenance Endowment

 

$0.00

 

$0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Construction Project Overall Cost Estimate

 

 

$0

 

LARGE PROJECT ESTIMATE

A)

General Construction Estimate

 

 

27,722,507

B)

Construction Project Support - UAMS

 

 

4,785,502

1)

Construction Contingency

 

 

$264,915

2)

Allowance: Relocation of depts..

 

 

$97,644

3)

Feasibility Study

 

 

$43,750

4)

Consultant Fees (7.5% of Items A,B,7)

 

 

$2,129,755

5)

Project Reimbursables

 

 

$160,000

6)

Construction Design & Mgmt Coordination                  (1.75% of A, B.1, B.2) Project Reimbursable Expenses

 

 

$491,489

7)

Furnishings, Graphics

 

 

$674,225

8)

Furnishings, Graphics Contingency (5% of Item B.7)

 

 

$33,711

9)

Interior Design Planning & Mgmt (3% of Items B.7 & B.8)

 

 

$21,238

10)

Asbestos Abatement (House Demo and Estimate Cooling Towers 5A&B)

 

 

$23,192

11)

Asbestos Abatement Planning Fee 7.5%

 

 

$1,739

12)

Physical Plant Controls & Commissioning [0.5%X(A+B1)]

 

 

$139,937

13)

Signage (Interior, Physical Plant Sign Shop)

 

 

$35,000

14)

Phone Service Wiring

 

 

$177,600

15)

Building Data Wiring

 

 

$50,250

16)

Security System Wiring

 

 

$65,000

17)

Perm Refeed to 201 S. Elm

 

 

$4,000

18)

CIS Equipment

 

 

$75,000

19)

Campus Paging

 

 

$10,700

20)

Audio Visual Equipment

 

 

$56,000

21)

Consultants Fee Additional Services

 

 

$120,111

22)

Occupational Health & Safety fees

 

 

$10,000

23 )

 JCI Commissioning Assistance

 

 

34,800

24)

Post Construction Housekeeping

 

 

$10,000

25)

Physical Plant Support Services (.002 X A)

 

 

$55,445

 

Total Construction Project Overall Cost Estimate

 

32,508,009

 

Small Project Estimate

Project Title

 

Renovation Estimate

 

1)

A.   Hazardous Material Removal

 

 

$0

 

B.   Renovation work

 

 

$7,210

 

C.   Furniture

 

 

$0

 

D.   Plumbing

 

 

$0

 

E.   HVAC

 

 

$0

 

F.   Electrical

 

 

$0

2)

Contingency

 

 

$1,506

3)

Architectural and Engineering Fees  

15.0%

 

$0

4)

Construction Planning and Mgmt Fees

10.5%

 

$915

5)

Owner Supplied Equipment

 

 

$0

6)

Physical Plant Commissioning

 

 

$0

7)

Occupational Health & Safety fees

 

 

$0

8)

Computing Services

 

 

$0

14)

Phone Equipment & Services & Overhead Paging

 

 

$0

15)

Moving Expenses

 

 

$0

16)

Security

 

 

$0

17)

Signs

 

 

$0

18)

Housekeeping

 

 

$0

 

Total Construction Project Overall Cost Estimate

 

$9,631

 

Examples are listed below for illustrative purposes:

EXAMPLE #1

       A project to renovate a laboratory into an office space, involving removal of asbestos floor tile prior to actual renovation.  The asbestos abatement is bid and done by contract.  The renovation is done by the in-house construction crew, and the planning and administration are done in-house.  The asbestos low bid is $10,000.  The renovation cost is $70,000.  A typical fee structure would be as follows:

Asbestos Removal Bid Price

$10,000

7.5% fee for Asbestos Planning and Administration

$750

25% fee for Asbestos Removal Monitoring

$2,500

15% Contingency for Unknown Factors

$1,500

Total Asbestos Removal Cost

$14,750

 

Direct Cost of Renovation Work

$70,000

9% fee for Construction Planning and Management (based on $70,000)

$6,300

15% Contingency for Unknown Factors

$10,500

Total Renovation Work Cost

$86,800

Total Asbestos Removal Cost

$14,750

Total Renovation Work Cost

$101,550

   

 

EXAMPLE #2

       A project to construct a new classroom building at a construction cost of $27,722,507.00 The A/E Consultants fee will be negotiated and will probably be 5-9% of the construction cost.  The A/E will also be entitled to reimbursable expenses such as in-state travel, phone calls, reproduction costs, etc.  A typical fee structure would be as follows:

Construction Bid Price

$4,850,000

5% for Construction Contingency

$242,500

5% A/E Consultant fees

$242,500

***1.75% CCM Fee (includes A/E design management, Interior Design, and Construction Administration)

$84,875

Total Direct Construction Cost

$5,419,875

*** This fee may be less if the A/E consultant performs greater construction administration.  However, the A/E consultant fee amount will increase accordingly.

 

EXAMPLE #3

       A customer wants to add some artwork, a new chair, and a lamp located in a corner where there is no power and the total cost is to be $1200.  The CCM Department will advise and plan on the most cost efficient methods known to procure such items and services that will be needed.  You will be charged at a rate of $30.00 per hour, which will be collected monthly through an Inter Departmental Transfer (IDT) that your business officer will authorize.  A typical fee structure would be as follows:

Physical Plant or contractor work performed and purchase of products

$1200

Hourly charges by CCM Dept. (4 hours time estimated on planning, research, and administration)

$120

Total Direct Construction Cost

$1320

Time is estimated in this example.  Actual time will depend on the scope of what you are requesting.  If you continually change the scope, then the cost will continually change.