Capital Program Planning Process Definitions

Definitions for common terms related to the Capital Program Planning Process are defined below.

Project Categories

Each project is categorized into only one of the four major project type buckets:

  • New Construction (always ≥$2M)

    Design and construction of large-scale new building (or building addition), infrastructure, or improvement.

  • Major Renovation (always ≥$2M)

    Design and construction of large-scale renovation and reconfiguration of existing facility or infrastructure to meet academic, research, engagement, or administrative priorities.

  • Repair and Rehabilitation (can be ≥$2M)

    Repair, replacement, or restoration of a space, system or component to an appropriate level of condition and functionality and small-scale renovation and new construction utilizing Operating Funds.  (Vast majority of projects, use this bucket unless otherwise directed by Asset Management.)

  • Utilities (can be ≥$2M)

    New utility infrastructure, or repair or replacement of existing utility infrastructure. UIR (utilities infrastructure reserve) funded work - WL campus utilities only.

Project Bucket by Funding Source

Funding sources that may be used for each defined project type are listed with "Yes" in the table below.

Operating Operating-Carryforward/Reserves (see below for details) Non-Operating
Repair and Rehabilitation Yes No No
Utilities Yes No No
Major Renovations No Yes Yes
New Construction No Yes Yes

Funding Sources for Major Renovation and New Construction

  • Bond Revenue
  • Project-specific state appropriations
  • Project-specific gifts/grants
  • Specific operating carryforward/reserves
    • Gift or restricted fund carryforward/reserves
    • Unrestricted carryforward/reserves when used to backstop project-specific gifts/grants
  • Institutional reserves

Annual Target Budget (Repair and Rehabilitation and Utilities (UIR) projects)

Includes target budgets for recurring routine Repair and Rehabilitation and Utilities capital program needs based on historical trends. Total estimated cost of planned projects, excluding Special R&R Projects, shall not exceed target budget.

  • No departmental program contingency shall be included.
  • Savings from project(s) due to cancellation, deferral, scope reduction, or other factors shall not be used to fund Variance Requests (Unplanned Break/Fix, Overage, or Unplanned Requirement).

Special R&R Project

Unique, typically large scale, non-routine, planned project or study that is outside of the Annual Target Budget and meets strategic goals of the university as approved by the T/CFO. Submitted as part of the annual capital program planning process.

Variance

Deviation from approved annual capital program. Could be a new project or budget adjustment to an existing project. Three types include: Unplanned Break/Fix, Overage, and Unplanned Requirement.

Unplanned Break/Fix

Unforeseen condition requiring project in current fiscal year to maintain function and/or protect assets or people, e.g. leaky roof, equipment failure.

Overage

Unexpected increase in cost above approved project budget to execute required scope. 

Unplanned Requirement

Unplanned opportunity requiring project or study in current fiscal year to meet strategic needs and appropriately utilize available resources. Deferral would result in lost net revenue or significantly and adversely affect the academic or research progress of the college or department (Ex. New faculty hire, research grant award).

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