Responsible Office: Capital Planning and Development
1. Rule Statement
1.1. Capital projects will be assessed a project management fee (PMF) based on total project costs. These projects are managed by Capital Planning & Development. This fee will be applied on all projects unless an exception is made by the Senior Associate Vice President for Administration or the cost is unallowable per the funding source.
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.
3.1. Created by Capital Planning & Development with input from other Finance & Administration units, Infrastructure Working Group, and Provost Council.
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. Project Delivery: department within Capital Planning & Development, which is part of University Infrastructure and Operations
4.7 TFPC: total forecasted project cost – estimated total project cost as listed in the first project agreement; these include direct construction, professional services, OSU activities, furniture/fixtures/equipment, contingency, and permits/fees/charges
5.1. Budgets are prepared by Project Delivery staff, then a project agreement is prepared and executed to include the PMF.
5.2. E-Builder will create a mass journal voucher file for Financial Services to process monthly. Project management fees will be assessed monthly on actual expenses billed to the project, excluding PMFs.
5.3 The PMF will be collected as internal revenue for the service center by Financial Services.
5.4. Internal accounting process documentation is on the Financial Services shared drive.
5.5. Units in University Facilities, Infrastructure and Operations, 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: The project is categorized by the Total Forecasted Project Cost (TFPC) at the time of Project Agreement
6.1.1. For small projects up to $99,999, the rate on monthly actual costs will be 7.5%.
6.1.2. For projects between $100,000 and $59,999,999, the rate will be based on a linear formula: ((.0149 x TFPC) + 6010) / TFPC
6.1.3. For projects $60,000,000 and more, the rate will be 1.5%.
6.1.4. The rate will be established at the time of Project Agreement and will remain constant for the duration of the project.
6.1.5. Fees will be assessed against actual project costs on a monthly basis.
7. Frequently Asked Questions
7.1. What is included in the project management fee (PMF)?
7.1.1. The service center collects the PMF, which covers the related construction/project manager FTE allocation, mileage, meals/catering, construction contracting labor based on the fee book rate, and eBuilder software costs.
7.2. For PMF projects, what other charges post to the plant fund?
7.2.1. The plant fund would be charged for non-project management costs. Project Managers assign project budget authorizing Facility Services to charge shop labor, based on the fee book rate.
7.3. What studies can be paid for by the project management service center?
7.3.1. Feasibility studies on projects that would be funded by PMFs can be paid by the service center with no CPD labor charged.
7.4. What projects are not charged project management fees?
7.4.1. Project management fees are an unallowable cost and will not be charged to projects fully funded by state bonds. Instead, labor charges based on fee book rates are used.
7.5. Does the monthly expense total charged with the PMF rate include the PMF amount?
7.5.1. The PMF rate is calculated on the forecasted total project costs at the time of the project agreement, which includes the PMF. The monthly PMF charged applies that percentage to actual expenses charged, not including the PMF.
8. Related Information
9.1. Original issue date: July 2017
9.2. First revision date: March 1, 2019
Capital Planning and Development