PROJECT MANAGEMENT FEES ON CAPITAL CONSTRUCTION PROJECTS

The policy outlines the guidelines for application of a project management fee on capital construction projects administered through the Facilities & Services Project Management Department.

1. Fee Applicability
   
   For the purpose of this policy a capital construction project is one with a project budget in excess of the construction sealed bid limit in effect at the time the budget was established. Such capital construction projects managed by the Project Management Department of Facilities & Services will be assessed a project management fee. However, feasibility studies and equipment only purchases will be not be assessed a project management fee.
   
   The fee will be included as a line item in each project budget developed by the Planning Division of Facilities & Services.
   
2. Services Covered by Project Management Fee
   
   The project management fee will cover the following incomplete list of services performed by the Project Management Department:
   
   1. Participation in the planning phase to facilitate project execution
   2. Management of the project budget
   3. Administration of professional services and construction contracts
   4. Management of capital delivery process
   5. Approval of payment applications and contract modifications
   6. Finalizing of project decisions in construction phase
   7. Administrative oversight of onsite construction
   8. Communication of project status to project stakeholders
   9. Execution of project closeout
      
      
3. Fee Determination Process
   
   Upon issuance of this policy the fee will be a flat of 1% of the total project budget. It will be reviewed annually and adjusted as necessary in order to fully recover all the relevant costs. The Facilities & Services Advisory Committee is charged with reviewing the rate annually and making recommendations to the Executive Director of Facilities & Services as to any changes.

Questions concerning this policy should be directed to the Director of Construction, Facilities & Services, (217) 333-1234.