Responsible Office: Capital Planning and Development
Effective: 07/01/2017
Revised: 07/01/2017

1. Rule Statement

1.1.     Capital projects will be assessed a project management fee (PMF) based on total project costs such as: direct construction, professional services, OSU activities, furniture/fixtures/equipment and permits/fees/charges. This fee will be applied on all projects unless an exception is made by the Vice President of Finance and Administration.

2. Reason for Rule

2.1.     This rule defines how projects are charged and what costs the associated Service Center supports. The fee is designed to provide the resources required for effective professional administration of capital projects as well as the project’s impact on the campus infrastructure. 

3. Scope

3.1.     Created by Capital Planning & Development with input from other Finance & Administration units, Infrastructure Working Group, and Provost Council.

 

4. Definitions

4.1.     Project: construction, remodel, upgrade, renovation, and repair project investments
4.2.     Service Center: self-support fund at the university
4.3.     Project Agreement: documentation of project scope, funding, and agreement - created at start of a project and used to document changes during project
4.4.     Professional Administration: those that support and develop capital projects, including Capital Planning & Development and Capital Contract Administration
4.5.     E-Builder: software used by Capital Planning & Development for project management
4.6.     Design & Construction: department within Capital Planning & Development, which is part of University Infrastructure and Operations

5. Responsibilities         

5.1.     Budgets are prepared by Design & Construction staff to include the project management fee.
5.2.     Once the project agreement has been fully executed, 10% of the fee will be transferred at the time the plant fund is created by Financial Services.
5.3      E-Builder will notify Financial Services to process a journal voucher once the project reaches the following milestones:

5.3.1.   30% at execution of design contract
5.3.2.   50% at start of construction
5.3.3.   10% at substantial completion

5.4.     The fee will be transferred to the service center by Financial Services.
5.5.     Internal Accounting process documentation including detailed list of applicable charges are on the Financial Services shared drive.
5.6.     Units, including Capital Planning & Development and Capital Contract Administration, which support and develop capital projects will be charged to the service center. These include salaries, E-Builder software, and external consultants.

6. Forms & Tools

6.1    Fee calculation: For projects up to $100,000, the fee is 7.5% of the total project cost. For projects above $50,000,000, the fee is 1.5% of the total project cost. For projects between the two, a linear function is used to calculate the project management fee [PMF = (14,880 x total project cost in millions) + 6013]

 

7. Frequently Asked Questions

7.1.    None

 

8. Related Information

8.1.     FIS 516: Service Center Operations
8.2.     FIS 606: Year End Processes for Capitalization

9. History

9.1.     Original issue date:  July 2017

10. Website

http://fa.oregonstate.edu/cpd

11. Contacts 

Capital Planning and Development
541-737-5412
http://fa.oregonstate.edu/cpd