You are on page 1of 166

Facilities Project Managers

Guide

May 2008
TA B L E O F C O N T E N T S

Introduction to the Facilities Project Manager’s Guide ........................................................ 8

Part I: Stakeholders and Roles ............................................................................................ 11

Part II: Project Requests and Approval Process ................................................................. 27

Part III: Project Controls ........................................................................................................ 34

Part IV: Project Process Phases ........................................................................................... 56

Part V: Appendix ................................................................................................................... 75

FOR ASSISTANCE IN USING THIS GUIDE OR TO PROVIDE COMMENTS AND EDITS,


PLEASE CONTACT DONNA GOSS

Facilites Project Managers Guide Page 1


D E TA I L E D T A B L E O F C O N T E N T S
Introduction to the Facilities Project Manager’s Guide ........................................................ 8

Executive Summary ............................................................................................................................................... 8


How to Locate the Guide ....................................................................................................................................... 8
Summary Overview of this Guide .......................................................................................................................... 9
This Guide and Other Documents ......................................................................................................................... 9
The Cornell Project Management Methodology (CPMM) Guide ....................................................................... 9
The Project Manager’s Toolbox......................................................................................................................... 9
Facilities Services Website and Other Websites ............................................................................................. 10

Part I: Stakeholders and Roles ............................................................................................ 11

Facilities Services: Key Departments ................................................................................................................. 13


Project Team ....................................................................................................................................................... 15
Core Team ....................................................................................................................................................... 15
Executive Group .............................................................................................................................................. 15
Primary Customer ............................................................................................................................................ 15
Project Executive / Director ............................................................................................................................. 16
Project Manager .............................................................................................................................................. 16
Construction Manager ..................................................................................................................................... 16
Project Coordinator .......................................................................................................................................... 16
Project Coordinator Responsibilities ........................................................................................................... 16
Role Agreement .......................................................................................................................................... 17
Cornell Approval Groups ..................................................................................................................................... 18
Consultants and Contractors ............................................................................................................................... 19
Cornell Stakeholders ........................................................................................................................................... 20
Alumni Affairs and Development ..................................................................................................................... 20
Construction Management Office .................................................................................................................... 20
Contracts & Capital Projects Office ................................................................................................................. 21
Cornell Information Technologies .................................................................................................................... 21
Cornell Police................................................................................................................................................... 21
Alumni Affairs and Development ..................................................................................................................... 21
Environmental Compliance and Sustainability Office ...................................................................................... 21
ECOS Checklist .......................................................................................................................................... 22
Environmental Health and Safety .................................................................................................................... 22
Facilities Management ..................................................................................................................................... 22
Maintenance Management .............................................................................................................................. 22
Office of Government and Community Relations Office.................................................................................. 22
Office of the University Counsel ...................................................................................................................... 23
Project Planning and Estimating ..................................................................................................................... 23
Risk Management and Insurance .................................................................................................................... 23
Transportation and Mail Services .................................................................................................................... 23
Treasurer’s Office ............................................................................................................................................ 23

Facilities Project Managers Guide Page 2


University Architect .......................................................................................................................................... 23
University Budget Office .................................................................................................................................. 23
University Engineer ......................................................................................................................................... 24
University Planner ........................................................................................................................................... 24
The Roles of the University Planner and University Architect .................................................................... 24
Utilities and Energy Management ................................................................................................................... 24
External Stakeholder Groups............................................................................................................................... 25
Building Inspector and Fire Marshall ............................................................................................................... 25
Community/Neighborhood Associations ......................................................................................................... 25
Planning and Development Boards ................................................................................................................. 25
Other Boards ................................................................................................................................................... 26

Part II: Project Requests and Approval Process ................................................................. 27

Cornell University Approval Process ................................................................................................................... 27


Transaction Authority Policy ................................................................................................................................ 28
The Project Approval Request (PAR) .................................................................................................................. 29
Project Plans.................................................................................................................................................... 29
How to Write a PAR ............................................................................................................................................. 30
Types of PARS ................................................................................................................................................ 30
Concept PAR .............................................................................................................................................. 30
Design PAR ................................................................................................................................................. 30
Construction PAR ........................................................................................................................................ 31
Revised PARS ............................................................................................................................................ 31
Municipal Approval Process ................................................................................................................................ 31
Project Authorization Letter ................................................................................................................................. 33
Letter of Authorization ..................................................................................................................................... 33

Part III: Project Controls ........................................................................................................ 34

Introduction .......................................................................................................................................................... 34
Budget Development ........................................................................................................................................... 34
Budget Planning Phases: Overview ................................................................................................................ 34
Planning Phase ........................................................................................................................................... 34
Design Phase .............................................................................................................................................. 34
Bid Phase .................................................................................................................................................... 34
Construction Phase Cost Tracking ............................................................................................................. 34
Budget Template ............................................................................................................................................. 35
Planning Phase Budget Development ............................................................................................................. 35
Design Phase Budget Development ............................................................................................................... 37
Feasibility Study Phase Budget Development ............................................................................................ 37
Schematic Design (SD) Phase Budget Development ................................................................................. 37
Step 1: Parallel estimate ......................................................................................................................... 37
Step 2: Reconciliation of estimates ........................................................................................................ 37
Facilities Project Managers Guide Page 3
Step 3: Allowance Items ......................................................................................................................... 37
Step 4: Value Analysis /Value Engineering (VA/VE) .............................................................................. 37
Design Development (DD) Phase Budget Development ............................................................................ 39
Step 1: Perform a cost/value analysis .................................................................................................... 39
Step 2: VA/VE Items ............................................................................................................................... 39
Step 3: Life Cycle Costs ......................................................................................................................... 39
Step 4: DD Estimate ............................................................................................................................... 39
Step 5: Project Budget Validation ........................................................................................................... 39
Construction Documents Phase Budget Development ............................................................................... 39
Bid Project Phase Budget Development ......................................................................................................... 40
Lump Sum Projects ..................................................................................................................................... 40
Public or Private Bid Openings ................................................................................................................... 40
GMC Projects Negotiations ......................................................................................................................... 40
Bids Exceed Construction Budget .............................................................................................................. 41
Awarding the Project to a Bidder ................................................................................................................ 41
Construction Phase PAR ............................................................................................................................ 41
Construction Phase Cost Tracking .................................................................................................................. 42
Pre-construction .......................................................................................................................................... 42
Construction ................................................................................................................................................ 43
Keep Schedule ....................................................................................................................................... 43
Validate, Track and Monitor Change Orders .......................................................................................... 43
Review for ADA Access Compliance ...................................................................................................... 43
Timely Responses to Contractor ............................................................................................................ 43
Timely Payments .................................................................................................................................... 43
Quality Assurance/Quality Control .......................................................................................................... 43
Monitor Contractor’s Compliance ........................................................................................................... 43
Close-out/Move-in ....................................................................................................................................... 44
Resolve any claims ..................................................................................................................................... 44
Project Contingencies ...................................................................................................................................... 44
Escalation Contingency............................................................................................................................... 44
Projects with fixed, non-escalating budgets ........................................................................................... 45
Projects with budgets that are allowed to increase with escalation ....................................................... 45
Design Contingency .................................................................................................................................... 46
Design Contingency for Design Phase of Budget .................................................................................. 46
Construction Contingency ........................................................................................................................... 46
Errors and Omissions ............................................................................................................................. 47
Unforeseen Conditions ........................................................................................................................... 47
Scope/Program Change ......................................................................................................................... 47
Capital Project Funding Plan ............................................................................................................................... 50
Schedule Development ........................................................................................................................................ 50
Contractual Agreements ...................................................................................................................................... 50

Facilities Project Managers Guide Page 4


Design Agreements ......................................................................................................................................... 51
Project Manager Issues Request for Proposal (RFP) ................................................................................. 51
Project Manager Presents Proposals to C&CP .......................................................................................... 51
C&CP Reviews Proposal ............................................................................................................................ 51
Types of Design Agreements ...................................................................................................................... 52
Construction Agreements ................................................................................................................................ 53
Types of Construction Contracts ............................................................................................................ 53
Invoices and Payment Applications ..................................................................................................................... 54
Setting up an Account ..................................................................................................................................... 54
Receipt of Invoice in C&CP ............................................................................................................................. 54
C&CP Review of Invoice ................................................................................................................................. 54
Construction Manager Reviews....................................................................................................................... 54
Project Coordinator Review ............................................................................................................................. 54
Approval by PM and Return to C&CP ............................................................................................................. 54
CC&P Requests Payment by DFA .................................................................................................................. 55
Project Over Budget ........................................................................................................................................ 55
Project Manager’s Report ................................................................................................................................ 55
Financial Reviews and Reporting ........................................................................................................................ 55
Projects over $5 Million ................................................................................................................................... 55
Projects under $5 Million ................................................................................................................................. 55

Part IV: Project Process Phases ........................................................................................... 56


Project Delivery Flow Chart ................................................................................................................................. 56
Planning Phase .................................................................................................................................................... 57
Goal ................................................................................................................................................................. 57
Deliverables ..................................................................................................................................................... 57
Client Responsibilities ..................................................................................................................................... 57
PM Responsibilities ......................................................................................................................................... 57
Steps ................................................................................................................................................................ 58
Initiate Project ............................................................................................................................................. 58
Review Project Plan .................................................................................................................................... 58
Create Project Team ................................................................................................................................... 58
Create Project Space Program ................................................................................................................... 58
Site Selection (new construction only) ........................................................................................................ 59
Consultant Selection ................................................................................................................................... 59
Decide need for either Concept Study and/or Feasibility Study ................................................................. 59
Project Formulation ..................................................................................................................................... 60
Primary Customer Approval ........................................................................................................................ 60
Planning Phase Approval ................................................................................................................................ 61

Facilities Project Managers Guide Page 5


Design Phases ..................................................................................................................................................... 62
Schematic Design (SD) ................................................................................................................................... 62
Deliverables ................................................................................................................................................ 62
Process ....................................................................................................................................................... 63
Schematic Design Approvals ...................................................................................................................... 64
Design Development (DD) ............................................................................................................................... 64
Deliverables ................................................................................................................................................ 64
Process ....................................................................................................................................................... 64
Design Development Approvals .................................................................................................................. 65
Construction Contract Documents (CD) .......................................................................................................... 65
Deliverables: ............................................................................................................................................... 65
Process ....................................................................................................................................................... 65
Construction Documents Approvals ............................................................................................................ 66
Bid Phase............................................................................................................................................................. 66
Deliverables ..................................................................................................................................................... 66
Process ............................................................................................................................................................ 66
Bid Phase Approvals ....................................................................................................................................... 67
Construction Phase ............................................................................................................................................. 67
Site Preparation / Mobilization ......................................................................................................................... 67
Construction..................................................................................................................................................... 67
Deliverables ................................................................................................................................................ 67
Close-out/Move-in ........................................................................................................................................... 68
Deliverables ................................................................................................................................................ 68
Process ....................................................................................................................................................... 68
Obstacles to Closing a Project Account .......................................................................................................... 69
Resources........................................................................................................................................................ 69
Risk Management in Project Management .......................................................................................................... 71
Assess Financial Risk ...................................................................................................................................... 71
Outline Legal Relationships: Design Phase/Have Clear Contracts ............................................................... 71
Oversee Aspects of the Claims Process ......................................................................................................... 72
Three Types of Claims ................................................................................................................................ 73
Workers Compensation .......................................................................................................................... 73
Liability .................................................................................................................................................... 73
Property Damage Liability Claims .......................................................................................................... 74
Property .................................................................................................................................................. 74

Facilities Project Managers Guide Page 6


Part V: Appendix ................................................................................................................... 75

Sample Matrix for Project Coordinator (PC) Responsibilities .............................................................................. 76


Sample Project Manager and Construction Manager and Project Coordinator Duties and Responsibilities ..... 79
Sample Role Agreement...................................................................................................................................... 82
Sample Revised Par ............................................................................................................................................ 84
Construction Contingencies Exposures ............................................................................................................... 89
GMC Systems ...................................................................................................................................................... 90
GMC Cost of Work (Current Bidding Climate) ..................................................................................................... 91
GMC GC’s............................................................................................................................................................ 93
Sample Budget Sheet .......................................................................................................................................... 96
Sample Budget: Building Cost ............................................................................................................................. 98
Sample Budget : $110 Million .............................................................................................................................. 99
Sample Budget: $154 vs. $140 Million .............................................................................................................. 104
Sample Project Plan .......................................................................................................................................... 109
Sample Feasibility Study ................................................................................................................................... 114
Sample SD VE ................................................................................................................................................... 127
Sample SD Cost Strategy .................................................................................................................................. 133
Sample Design Development Value Engineering ............................................................................................ 135
Sample Construction Development 50 Value Engineering ............................................................................... 150
Sample Change Order Letter............................................................................................................................. 162

Facilities Project Managers Guide Page 7


Introduction to the Facilities Project Manager’s Guide
Executive Summary
The Facilities Project Manager’s Guide is designed to support the Capital Project Delivery Process
Guide by providing the ―how to‖ of Project Management for capital projects at Cornell
University. It is written for Project Managers.
The Capital Project Delivery Process Guide describes the ―what‖ of Project Management, and was
written to provide better clarity of the process for project development for clients and users
outside Facilities Services.
The Facilities Project Manager’s Guide describes the process for managing large capital
projects overseen by Facilities Services; it also provides guidelines common to all capital
projects. Small projects may have a very different structure than large projects. Project size and
difficulty depend on the desired program, scope of work, and the complexity of the space in
which it is to be constructed. Renovation projects are also addressed, to some degree, in this
guide.

How to Locate the Guide


Go to www.fs.cornell.edu

From the drop down box under Policies and Procedures, select ―Facilities Manager Project
Managers Guide.‖

Facilities Project Managers Guide Page 8


Summary Overview of this Guide
The Facilities’ Project Manager’s Guide is organized into four parts.
 Part I describes the role of Facilities Services in capital project execution and the list of
stakeholders that participate in the process along with their principle roles.
 Part II describes the project requests and approval process at Cornell.
 Part III describes project controls. Presented separately to emphasize its importance, the
controls section describes the systems the University has designed to control the project
budget and schedule, and presents an overview of the contract tools used to define the
relationship between Cornell and the consultants and contractors that work for us.
 Part IV outlines how projects are managed and presents the phases of a typical project and
describes what happens in each phase.

This Guide and Other Documents


In addition to this document and the Cornell Project Delivery Guide mentioned above, there
are two additional reference tools available to assist project managers when leading projects:
 The Cornell Project Management Methodology Guide (CPMM)
 The Project Manager’s Toolbox.

The Cornell Project Management Methodology (CPMM) Guide


The CPMM website is located at http://projectmanagement.cornell.edu/
The guide can be found at this web address:
http://www.cit.cornell.edu/computer/robohelp/cpmm/cpmm_guidebook.htm
The website contains useful tools such as templates, training announcements, and document
examples. Although Facilities Project Managers typically have the training and knowledge
covered in this guide, these resources are still valuable for Project Managers who want to
refresh and refine their knowledge.

The Project Manager’s Toolbox


The Project Manager’s Toolbox is the archive for past PM trainings delivered by Facilities
Services PM Toolbox team. These materials can be found at

Facilities Project Managers Guide Page 9


http://www.fs.cornell.edu/fs/PMT/default.cfm
Throughout this guide we
will reference the various
trainings that have been
offered and archived as they
relate to a particular topic.

Facilities Services Website


and Other Websites
Throughout this guide, there
will be references to the
Facilities Services web site
http://www.fs.cornell.edu.
Many topics are explained in
detail under the Resources
and the Procedures drop-
down boxes. For instance, the
Project Manager’s Toolbox
page found in the Resources
list provides a library of
resources for capital project
planning and processes that
was created specifically for
project managers across the
University.
This guide will point the
reader to other various web
sites, such as Environmental
Health and Safety, or the City
of Ithaca, that have relevant
information on how to
perform the tasks outlined in
this guide.

Facilities Project Managers Guide Page 10


Part I: Stakeholders and Roles
One of the most important responsibilities of the Project Manager is to identify the key
stakeholders for a capital project. The stakeholders listed in this guide include
 Facilities Services
 Project Team
 Cornell Approval Groups
 Consultants and Contractors
 Cornell Stakeholders
 External Stakeholders
The organizational diagram below shows most of the participants in the execution of Cornell’s
capital projects. The Core Project Team carries the project from its inception through
completion and works with internal and external stakeholders to ensure that their needs are
met across the University and in the community.

Facilities Project Managers Guide Page 11


Core Team
Executive Group
Primary Customer
Project Executive/Director
Project Manager
Construction Manager
Project Coordinator

Cornell Approval Groups

Consultants and
Contractors

Cornell Stakeholders
PDC’s Construction Management Contracts & Capital Projects
Cornell Information Technology Cornell Police
Environmental Compliance Office Facilities Management
Government and Community Affairs Office of the University Counsel
PDC’s Project Planning and Estimating
Risk Management Transportation and Mail Services
Treasurer’s Office University Architect
University Engineer University Planner
Utilities & Energy Management

External Stakeholder Groups


City, State and Federal Agencies
Building Inspector
Planning and Development Boards
Other Boards

Facilities Project Managers Guide Page 12


Facilities Services: Key Departments
Facilities Services is an administrative support division that includes many of the departments
typically involved in capital projects. In this section, we will briefly outline some of these key
departments and their roles in capital projects:
 Contracts & Capital Projects
 Contract Colleges Facilities
 Facilities Management
 Planning, Design and Construction
 Office of the University Architect
 Utilities and Energy Management
The Office of the Vice President, Facilities Services serves Cornell through the planning,
design, construction, operation and ongoing maintenance of University facilities. All of the
departments in Facilities Services may participate as stakeholders in the Project Delivery
Process. Two of the departments, Contract Colleges Facilities and Planning, Design and
Construction, play a central role in the management of projects for customers outside the
Facilities Services Division. Contracts & Capital Projects also plays a central role in executing
the contracts and administering the payments associated with the contracts. The role of these
three departments, along with others, in the execution of Cornell’s capital projects is
summarized below.
The Contracts & Capital Projects Office (C&CP) has two primary functions:
The formation and management of facilities-related contracts;
The financial tracking support for Project Managers who manage capital projects.
Contract formation and management services typically include contracts for
architectural/engineering design, consulting services, testing services, renovations and
construction services for both capital and non-capital projects.
Financial support includes invoice processing and project tracking to monitor the financial
status of projects in support of Project Managers who are responsible for capital projects.
Further, this office provides regular project status report summaries to the Buildings &
Properties Committee of the Board of Trustees.
The Contracts & Capital Projects Office is funded as an enterprise and charges both on an
hourly rate and on a lump sum basis for its services.
The Contract Colleges Facilities Office (CCF) manages the Contract Colleges Capital Plan
including project development, initiation, and execution. They facilitate the management of
State University Construction Fund (SUCF) projects and provide project management for
College and University funded capital projects for the Contract Colleges (State campus). The
Contract Colleges Facilities Office is funded by an appropriation.

Facilities Project Managers Guide Page 13


Project Design and Construction (PDC) provides project management services for general
building and renovation projects in its Science and Technology and Architectural sections.
Projects that are somewhat trade specific, such as a mechanical upgrade or structural repair,
are generally managed in one of the PDC Engineering sections. PDC is funded as an enterprise
and bills on an hourly rate for project management services.
Project Planning and Estimating (PP&E) is often the first point of contact when considering a
renovation or small project. This group provides estimates for work and architectural design
services that in most cases are constructed by the PDC Shops. Projects that are constructed by
the PDC Shops may be managed within one of the Shops or by one of the aforementioned
sections.
PDC also includes a Construction Management section that specializes in the management of
the construction phase of our medium and large building projects.
The Campus Planning Office and the University Architect become involved in any new
building project and any other project that impact the physical campus of the University. See
the PM Toolbox training: The Campus Planning office in Capital Projects.
Maintenance Management provides an ADA Coordination function that serves to assist
Project Managers in the ADA accessibility implications of their projects. For every project,
Project Managers should conduct a preliminary review to determine what, if any, elements
will impact accessibility in the interim (construction) or long term for their project. If their
projects have implications for accessibility in either the short or long terms, the ADA
Coordinator should be involved. If it is unclear if there are any elements for accessibility,
consultation with the ADA Coordinator for determination is recommended.

Facilities Project Managers Guide Page 14


Project Team
Core Team
 Executive Group
 Primary Customer
 Project Executive / Director
 Project Manager
 Construction Manager
 Project Coordinator
The Core Team for a project includes, at a minimum, the Primary Customer and the Project
Manager. The Core Team may also include a Construction Manager, a Project Coordinator, a
Project Director and others who are directly involved with the project. The Core Team may
report to an Executive Group.

Executive Group
Larger, more complex projects (e.g., new buildings, laboratory renovations) often have an
Executive Group. The Executive Group makes strategic project decisions that don’t require
approval by the senior University administrators who represent the Capital Funding and
Priorities Committee (CF&PC) or the Buildings and Properties Committee (B&P) of the Board
of Trustees, and makes recommendations for decisions that do require such approvals. The
group stays informed of project progress and challenges, and provide guidance to the Core
Team. The Executive Group is selected by and may be chaired by the Executive Vice President
for Finance and Administration. Alternatively the Group may be chaired by the Dean or Vice
President of the College or Division sponsoring the project.
Other members typically include the following:
 The Department Directors who will use or administer the new space;
 Someone from the Office of Planning and Budget , if central University funds are
involved;
 The Vice President for Facilities Services or the Director of Project Design and
Construction;
 Others associated with the project.
The Core Project Team acts as staff to support the Executive Group, and may provide the
agenda for the meetings. When properly configured and chaired, the Executive Group
provides a valuable forum for debating and resolving project issues and establishing strategic
project goals and direction.

Primary Customer
The Primary Customer establishes the desired program (scope) and works with the Project
Manager to define schedule and budget for the project. The Primary Customer may be the

Facilities Project Managers Guide Page 15


eventual user of the finished project, or may be acting on behalf of the user. The Primary
Customer may be an individual or a group of people. If the latter, the Primary Customer
group is encouraged to identify a single individual to work with the Project Manager and
serve as program manager.

Project Executive / Director


Construction programs consisting of a series of capital projects or a very complex single
project (e.g. residential initiatives, new science buildings), may have a Project
Executive/Director (PE/PD). The purpose of this position is to ensure that the sequence of
capital projects are coordinated and meet the overall scope, schedule and budget goals of the
University. The PE/PD is generally a senior staff member in the Facilities Services Division
and serves to guide the project team.

Project Manager
The principle responsibility of the Project Manager is to deliver the project within the scope,
schedule, and budget agreed to by all of the stakeholders of the project. The Project Manager
may delegate tasks to other project team members, but still retains the responsibility for project
success. One of the key responsibilities of the Project Manager is to communicate and consult
with all of the various stakeholders. In one of the sections below in this guide, you will find the
numerous project stakeholders who may have a stake in capital projects. The Project Manager
is responsible for including those stakeholders relevant to the project, and establishing a
balance between the sometimes conflicting goals of project stakeholders and between the
various elements of the project (scope, schedule, budget, etc.).

Construction Manager
Larger projects (>$2M) typically use the services of a Construction Manager (CM) who
manages the construction phase of the project and who is the single point of contact for the
Contractor. The split of project tasks between the Project Manager and Construction Manager
is not fixed; however, the Project Manager retains responsibility for the overall success of the
project, budget and design.

Project Coordinator
Larger projects typically have a Project Coordinator (PC) who assists the Project Manager.
PCs also manage projects that range in value from $50,000 to $500,000 having the same
responsibilities as a Project Manager. The PC provides both administrative support to the
project team, and technical support to the project. PCs play a major role in large and small
projects, from inception of the project through to close-out.

Project Coordinator Responsibilities


The PC Matrix is a sample guide for the roles and responsibilities of each of the three
levels of Project Coordinator (PC1, PC2, and PC 3). The roles may be assigned
differently for each project and depending on the expereineces of thos involved. They
may also change as the project progresses.
See: Sample Matrix for Project Coordinator (PC) Responsibilities

Facilities Project Managers Guide Page 16


Role Agreement
The Project Manager, Construction Manager and Project Coordinator project team
should start with "PM-CM-PC Responsibility agreement in which they agree on roles.
Below are samples of how the Project Manager (PM) , Project Coordinator (PC), and in
the first sample, the Construction Manager (CM) can create a clear understanding of
what role each plays in a project. Each project will be unique, so please use this as a
guide.
See Sample Role Agreement
See Sample Project Manager and Construction Manager and Project Coordinator Duties
and Responsibilities

Facilities Project Managers Guide Page 17


Cornell Approval Groups
The PM is responsible for coordinating timely authorizations and approvals of the various
phases of the project with the following Approval Groups:
 Executive Vice President for Finance and Administration (EVP) or Provost ;
 Capital Funding and Priorities Committee (CF&PC - members include Senior
Administration of the University);
 Buildings and Properties Committee (B&P - a committee of the Board of Trustees).

The Project Approval Request (PAR) is the principle document for seeking authorizations and
approvals. (See Part II of this guide.) A PAR is required for any capital project with a total
project budget greater than $50,000. The approvals required for a project are dependent on the
total budget.

PROJECT IS AUTHORIZED/APPROVED WHEN….

TOTAL COST PAR signature list Capital Funding and Buildings and
complete Priorities Committee Properties Committee
OF PROJECT approves (CF&PC) (B&P) and Executive
Committee
(funding/financing)
approves

$50K- $500K 
(Referred to as a Signature
PAR.)

$500K - $5M  
> $5M   

See Part II: Project Requests and Approval Process to learn more about the different types of
PARS and how to fill them out.

See Part II: Project Requests and Approval Process for more on the approval process.

Facilities Project Managers Guide Page 18


Consultants and Contractors
Cornell’s facility capital projects are
 generally designed by architectural and engineering consultants (A/E);
 built by contractors, with the construction managed by construction managers.

The Project Manager is responsible for insuring that


 the A/E and contractors are selected using approved processes .
 appropriate contract documents are executed
 the work of the A/E and contractor is properly managed.

The Project Manager is generally the University’s point person with the A/E.
As mentioned above, the CM serves as point person for the contractor.

Note:
 PDC has an in-house design group that provides A/E services for renovation projects up to
about $1M.
 The PDC Shops occasionally compete for construction of projects up to about $1M.
See the FS website for more on architect/engineer procurement process. Also see the PM
Toolbox training, Architect-Engineer Procurement.
See the Quality control section below for proper management of contractors. Also see the
Contractor Qualifications information.

Facilities Project Managers Guide Page 19


Cornell Stakeholders
Cornell has numerous departments and individuals who play a role in our capital projects.
The PM is responsible for including them as appropriate to the project. Possible stakeholders
are:
 Alumni Affairs
 Construction Management Office
 Contracts & Capital Projects Office
 Cornell Information Technologies
 Cornell Police
 Environmental Compliance and Sustainability Office
 Environmental Health and Safety
 Facilities Management
 Government and Community Relations Office
 Maintenance Management
 Office of the University Counsel
 Project Planning and Estimating
 Risk Management
 Transportation and Mail Services
 Treasurer’s Office
 University Architect
 University Budget Office
 University Engineer
 University Planner
 Utilities and Energy Management

Alumni Affairs and Development

Construction Management Office


PDC’s Construction Management Office includes construction managers and project
coordinators who manage contractors and construction phase activities. Individuals in the
Construction Management Office are frequently members of the project Core Team. The
Director of Construction Management is also responsible for leading the contractor selection
process for PDC-managed projects. Core Teams work with the Director to select pre-
construction contractors, construction managers, general contractor bidders’ lists, and to
develop a construction delivery strategy.

Facilities Project Managers Guide Page 20


Contracts & Capital Projects Office
Most projects that involve hiring companies to provide labor for design, construction and
renovation work require execution of a contract, as opposed to a purchase order which is used
for procurement of supplies and/or materials. The C&CP Office writes the University’s
contracts. The C&CP Office also administers the Capital Project System, an accounting system
that tracks PAR authorizations, budget allocations, and commitments/expenditures associated
with capital projects.

Cornell Information Technologies


Cornell Invormation Technologies (CIT) can play one of three roles in a facilities project:
 Construction Standards: CIT authors construction standards and works with designers on
the design of IT systems, including telecommunication rooms and raceway systems.
 Installation and Maintenance: CIT installs and maintains telecommunication equipment
and software across campus and/or manages installation of these systems by contractors.
 AV Consulting: CIT provides an audio/visual consulting group that helps project teams
and consultants specify, install and commission high tech A/V systems.
See PMT Trainings Communications Wiring, Phone Services and Data Services and Total
Technology Integration.

Cornell Police
Cornell Police participate in projects when the following are being addressed:
 building security system design
 electronic access
 video surveillance
 intrusion alarm
 locations for Blue Light telephones
 movement of large construction-related vehicles across campus roadways.

Alumni Affairs and Development


Please see the Alumni Affairs and Development web site for information on this stakeholder.

Environmental Compliance and Sustainability Office


The Environmental Compliance and Sustainability Office (ECOS) provides three distinct
services to project teams:
 They are available to lead or support the Municipal Site Plan Approval process, including
preparation of environmental assessment forms and presentations to municipal approval
groups.
 They assist in making sure completed projects comply with various State and Federal
regulations concerning the protection of air and water resources.
 They oversee construction phase preparation and compliance with storm water pollution
protection regulations and assist with the LEED certification process.
Facilities Project Managers Guide Page 21
For information on the Green Buildings Oversight Committee, contact the Services Team at
ECOS.
See Cornell’s Environmental Compliance and Voluntary Environmental Initiatives
See Cornell’s Green Building Guidelines

ECOS Checklist
To better understand how ECOS interacts with capital projects, see the checklist on its
website.
PMs are encouraged to fill out this checklist to help them determine what needs to be
considered with respect to environmental compliance issues for their projects.

Environmental Health and Safety


Environmental Health and Safety (EH&S) provides four distinct services to project teams.
 The Lab Safety group provides advice and review of construction documents for lab
projects.
 The Fire Protection group provides advice for sprinkler and fire alarm systems.
 Document Review for overall code compliance, and assistance with abatement of asbestos
and hazardous materials.
 EH&S can help with the oversight of construction site safety and review contractor safety
plans.
See Your Project and EH&S and EH&S and Construction Services in the PMT Training.

Facilities Management
Facilities Management (FM) provides maintenance and custodial care for academic buildings
and grounds care for the overall campus. They provide advice and review of construction
documents regarding maintainability of building and site elements of the project. They also
provide advice to project managers regarding the forecasted operating and maintenance costs
that must be identified and included in Section 8 of PAR’s.

Maintenance Management
Project managers are encouraged to take advantage of collaboration with the ADA
Coordinator within Maintenance Management for all projects planned. This is available to
Project Managers to ensure ADA compliance for every project on Campus.

Office of Government and Community Relations Office


The Office of Government and Community Relations must be involved in the project for all
municipal approvals or when the project is of interest to Cornell’s neighbors. Examples
include projects that involve construction on the perimeter of campus, that make a noticeable
change in vehicular traffic flow on surrounding streets, or that have other noticeable
environmental impact.

Facilities Project Managers Guide Page 22


Office of the University Counsel
Office of the University Counsel represents Cornell’s interests with regard to municipal law
and the impact on the community and the University. Projects requiring zoning variances or
having complex site plan approval processes should involve the University Counsel.

Project Planning and Estimating


PDC’s PP&E Office provides project plans, cost estimates, design services and project
management for projects intended for execution by the PDC Shops. When not occupied in
design work intended for the Shops, PP&E is available to prepare architectural designs for bid.
The Manager of PP&E also chairs regular meetings with the City and Town Building
Departments.
Core Teams are encouraged to use the PP&E venue to initiate discussions with the City and
Town Building Departments.
See the PM Toolbox training on Permits.

Risk Management and Insurance


The Risk Management and Insurance Department makes decisions regarding required levels
and types of insurance for consultants and contractors, and also analyzes the fiscal health of
those companies. See more information on Risk Management in Project Management below.

Transportation and Mail Services


Transportation and Mail Services works with project teams to identify parking resources both
for contractors and to support the finished project. See the Transportation Infrastructure
Charge Policy in the Cornell Project Delivery Process, Appendix M.

Treasurer’s Office
The University Treasurer (Treasury Management Services):
 Arranges debt financing for projects as necessary.
 Should be consulted on the source of funding for projects that may have an effect on
historic/cultural resources. Projects using State of New York funds or State-issued bonds
will trigger review by the NYS Historic Preservation Office.

University Architect
The University Architecht (UA):
 Leads the architect selection process. (See also PM Toolbox for more on architect selection.)
 Serves as steward for all architectural matters, including working with the University
Planner in the site selection process.
 Makes presentations at CF&PC and B&P for approval of project concept and design.

University Budget Office


Please see this University Budget Office web site for information about this stakeholder.

Facilities Project Managers Guide Page 23


University Engineer
The University Engineer ( UE ):
 Works with designers to develop concepts for engineered systems.
 Maintains the Cornell Design and Construction Standards
 Ensures that construction documents comply with the Design and Construction Standards
and other standards of quality. In this role, the UE
o meets with the A/E early in the development of the design,
o reviews design documents.

University Planner
The University Planner ( UP):
 Brings the campus-wide planning context to bear upon the individual project and plays a
major role in site selection.
 Advises on the long-term planning impacts of siting decisions, both from the University’s
perspective as well as from the community’s and ensures that decisions are consistent with
existing plans.
 Writes the Site Development Guidelines (formely called ―Site Criteria‖) for new
construction projects. (See CPDP, Appendix C).
 Presents selected sites for approval to the CF&PC .

The Roles of the University Planner and University Architect


Here is what the Project Manager needs to know regarding the responsibilities of the
University Architect and the University Planner

UNIVERSITY ARCHITECT UNIVERSITY PLANNER


New buildings Site selection for new building

Building expansions Landscaping, mapping, signage

Exterior building changes Other site design

Major interior building changes Land use questions

Building aesthetics Open space use questions

Exterior building finish or other changes Site Development Guidelines

University Architect Selection leadership Planning consultant selection leadership

Utilities and Energy Management


Utilities and Energy Management has two principle functions:
 They work with project teams to identify utility construction methods, including metering
systems and connections to the various campus distribution networks.

Facilities Project Managers Guide Page 24


 They provide advice and review of construction documents for energy saving initiatives.
See Energy Management and Utilities Customer Relations - Construction Projects

External Stakeholder Groups


The project team is responsible for acquiring approvals of the following groups external to the
University.
Note that the Cornell central campus occupies one county and three municipalities.
 Tompkins County
 City of Ithaca
 Town of Ithaca
 Village of Cayuga Heights
In some instances the Village of Lansing and the Town of Dryden may be involved.
Each has unique procedures for permitting and site plan review. The following is intended to
be a very general overview of these processes.

Building Inspector and Fire Marshall


The Building Inspector generally works with the project team and the Architect/Engineer
during design of the project to prepare a strategy for code compliance. The Building Inspector
may include the Fire Marshall to gain consensus on things such issues as fire truck access to
the project site, design of fire protection systems, and proposals for handling flammable
materials.
Although Cornell’s contractors generally apply for building permits and arrange for
inspections themselves, most jobs require the Project Manager to facilitate discussions and
resolution of code issues during construction and project close-out phases.

Community/Neighborhood Associations
Cornell’s campus is surrounded by many neighborhoods, each of which has an association of
homeowners. Cornell’s Office of Government and Community Relations normally arranges for
meetings with these groups as appropriate to keep them informed of projects near their
neighborhoods.

Planning and Development Boards


As mentioned above, Cornell’s central campus in Ithaca occupies Tompkins County and three
municipalities (City and Town of Ithaca, Village of Cayuga Heights).
Each has a unique Environmental Quality Review and Site Plan Review and approval process,
and the PM is responsible for ensuring the timely engagement of the various staff and
planning board groups. See ECOS’s Environmental and Local Approvals Resource (ELAR)
site for information. Also see the PM Toolbox training called ―ELAR Website Review‖.

Facilities Project Managers Guide Page 25


Other Boards
These include zoning boards for projects requiring some form of variance. The City of Ithaca
has an Ithaca Landmarks Preservation Commission that must approve projects in the City that
affect historic resources that are Designated Landmarks and Designated Historical Districts.

Facilities Project Managers Guide Page 26


Part II: Project Requests and Approval Process
Cornell University Approval Process
Building maintenance, renovation and new construction projects with total costs exceeding
$50K are designated as capital projects.
The Transaction Authority Policy - Procedure for Processing Facilities Projects establishes cost
thresholds and associated approvals.
Schedules for Capital Funding and Priorities Committee (CF&PC) and Building and Properties
Committee (B&P) meetings are published by the Vice President for Facilities Services office
each summer for the upcoming academic year, and include dates for submission of enabling
documents.
PMs should note that all requests and presentations to the Buildings and Properties
Committee (B&P) must first be authorized by the Capital Funding and Priorities Committee
(CF&PC)

Facilities Project Managers Guide Page 27


Transaction Authority Policy
Procedure for Processing Facilities Projects
As adopted by the Executive Committee of the Board of Trustees, March 2, 2005. This can also be
found at http://www.fs.cornell.edu/fs/IR/fs_ta_facility.cfm (Transaction Authority Policy & Procedure
For Processing Facilities Projects)
Project Approval Transaction Authority

$50,000 to $500,000 † Executive Vice President for Finance and


Administration or Provost

$500,000 - $5,000,000 † CF&PC

$5,000,000 and beyond: New Construction

Architect Selection CF&PC

Project Concept * Buildings and Properties Committee

Project Design ** Buildings and Properties Committee

Project Construction ^ Buildings and Properties Committee

Financing Executive Committee

$5,000,000 and beyond: Major Renovation

Architect Selection CF&PC

Budget Buildings and Properties Committee

Financing Executive Committee (Investment and


Development Committees as appropriate)

Annual Campus Plan Buildings and Properties Committee and Board

Annual Operating & Capital Plan Board


† The B&P Committee may also review any project that significantly changes the outward appearance of a building or
area within the core campus.
* Includes a description of the functional program to be satisfied, a general description of the scope of construction,
citation of the key project schedule milestones, and the major components of a preliminary budget. For new structures,
Project Concept approval may also include review of criteria for the placement of the structure upon a site.
** Design approval includes a review of the schematic or design development documents that illustrate the layout,
massing and exterior appearance of the facility within the context of its site. Also included is an updated planning
budget based upon a refined definition of the project scope and delivery schedule.

Facilities Project Managers Guide Page 28


^ Construction approval authorizes construction of the final project scope defined by the construction documents and
specifications. The final project budget is reviewed for the recommendation to the Executive Committee for approval.

The Project Approval Request (PAR)


The PAR is the principle enabling document for capital projects. The purpose of the PAR is to
provide information about the project to the project approvers, including the primary
customers, and to confirm their agreement with the information provided.
The electronic PAR Approval Process is available online.
In general, Project Managers prepare PARs. The Project Manager places his or her name on
the front page of the PAR, and is the person responsible for the overall execution of the project.
 PARs are submitted through CCF, FM or PDC, or directly to the VP Facilities Services
office, to be entered into the ePAR system to circulate for signature. This also ensures the
project is included on the CF&PC/B&P agendas as appropriate.
 The approval of a capital project is accomplished by getting full sign-off of the PAR
signature page, and approval by CF&PC and B&P, as applicable.
 The PAR template lists specific directions for the creation of the PAR, as well as details on
who should be included in the signature page.
Project managers are encouraged to become familiar with the schedules for CF&PC and B&P.
(For the most recent project approval calendar and the schedules for CF&PC and B&P
approvals, see Project Approval Calendars in Information and Resources)
 CF&PC meets monthly
 B & P meets seven times a year, in September, October, December, January, March, May
and June.
See How to Write a PAR below, and the various types of PARs.
Project Managers for State-funded and Contract Colleges projects should consult with the CCF
office to obtain the slightly different PAR template and coordinate with their schedule due
dates for submittal. Its PAR template is located under Get Things Done on CCF’s home page.
Please note the CCF approval calendar that this section provides.

Project Plans
Project Managers are encouraged to write a Project Plan for projects requiring approval by
CF&PC. The Project Plan uses the PAR template and describes the overall project purpose and
scope, and an estimated schedule, and budget. Project Plans may be combined with PARs
requesting approval to begin design work, or for large projects for approval to begin planning.
See a Sample Project Plan.

Facilities Project Managers Guide Page 29


How to Write a PAR
The PAR is the first approval needed in order for a project to take the next step in the planning
phase. See Initiate Project in Part IV.
In the Cornell Project Management Methodology Guide (CPMM), which is a general
introduction to project management, the PAR is referred to as a PIP. (Project Initiation Plan).

Types of PARS
In the Plan/Design/Bid/Construct Model used at Cornell, the PM might generate PARs
throughout the various phases of the project. There are three general phases of a project:
Planning, Design, and Construction. The most often used PARs for each phase include:

Concept PAR
A Concept PAR is used during the Planning Phase and may include the following:
 Fleshing out alternatives
 Outlining the major Alternatives Considered and Why Rejected
See below Part IV: for more on the Concept Study.

Design PAR
The description of the scope in a Design PAR may include this type of language:
 Create design
 Design layout
o See Section 3.3 of CPDP Guide, page 36ff.
When the PM outlines the scope of work during the Design Phase with the client,
she/he should refer to the Owner/Architect Agreement Schedule G. This contract
includes what architects and engineers are required to provide during the design phase.
The PM may want to split the design phase into three PARs:
 Schematic Design PAR
 Design Development PAR
 Construction Documents and Bid PAR
Each of these PARs is a milestone in the design process.

Facilities Project Managers Guide Page 30


Construction PAR
The scope of a Construction PAR may include these terms:
 Demolish…
 Construct…
 Provide (furnish and install)…
See Section 3.5 of CPDP Guide page 39ff.

Revised PARS
On an infrequent basis it is necessary to revise a PAR. This may be due to a change in
the project scope, schedule, or budget. Revised PARs follow the same procedures and
pathways as the original PAR. An effective way to write a revised PAR is to use the text
of the original and insert changes in bold type. This allows the reviewers to readily see
the changes from what they had originally approved. See Sample Revised PAR.

Revised PARs are submitted for the following cases:


1) To request an increase in the approved project budget;
2) For revisions to the project’s scope of work;
3) For project schedule changes due to unforeseen issues/conditions that occurred
during the current phase (design or construction) of the project.

Municipal Approval Process


Local Municipalities
The requirements for municipal approval and permitting vary by municipality. Portions of
Cornell’s main campus fall into the jurisdiction of the:
o City of Ithaca
o Town of Ithaca
o Village of Cayuga Heights.
Projects off of the main campus may also be in the:
o Town of Dryden
o Town of Lansing
o other municipalities

Facilities Project Managers Guide Page 31


State-funded and/or State-owned Buildings
Projects funded by the State University Construction Fund (SUCF) or performed in a state-
owned building are not subject to approval by the local municipality, but instead are reviewed
and approved by the Code Enforcement Officer in the Contract Colleges Facilities Office.
New York State Building Code and Local Code Ordinances
All but very small projects require a building permit issued by the municipality in which the
project is located. A prerequisite to obtaining a permit is the demonstration to the building
inspector that the project meets applicable requirements of the New York State Building Code
and local codes and ordinances.
Building Inspector / Fire Department
The Project Manager is responsible for arranging communication between the designers of the
project and the building inspector. These meetings may also include a representative from the
fire department and from Cornell’s Environmental Health and Safety group. PDC’s Project
Planning and Estimating group meets regularly with both the City and Town of Ithaca
Building Departments. Project managers are encouraged to use these meetings to initiate
discussions on new projects.
Municipal Site Plan Approval
Projects that change the exterior appearance of the campus generally require site plan
approval from the municipality in which the project is located. Municipal Site Plan Approval
is a multi-step process that includes
 an environmental quality review and
 Preliminary and final site plan review and approval.
The project manager is responsible for moving the project through these processes and
including stakeholders as appropriate to the project.
Municipal Approvals
As with Cornell’s internal approvals, the Project Manager must include time for municipal
approvals in the overall project schedule. Projects under SUCF or CCF Code Authority are
exempt from Municipal site plan review, but courtesy presentations are sometimes given.

Facilities Project Managers Guide Page 32


Project Authorization Letter
Once a project has been authorized/approved by the appropriate group and all signatures are
complete in the ePAR system, the Office of the Vice President for Facilities Services issues a
Project Authorization Letter (See the sample in the CPDP, Appendix, Item O).
This letter serves as the vehicle for Contracts and Capital Projects to request an account from
the Division of Financial Affairs and proceed with the issuance of contracts for the project.
Without this documentation, the C&CP office does not have authorization to proceed or incur
expenses for the project. No project may start without a written contract.

Letter of Authorization
Under certain circumstances, a project contract may commence with a Letter of Authorization
(LOA) signed by the Vice President for Facilities Services or Executive Vice President for
Finance and Administration, depending on the dollar amount requested. A LOA is a
contractual document that authorizes a consultant or contractor to proceed with a fixed scope
of work and to expend a fixed dollar amount which sum shall then be included in their
contract.

Facilities Project Managers Guide Page 33


Part III: Project Controls
Introduction
This section describes Project Controls. Project Controls exist to help insure projects are
efficiently organized and executed in a manner consistent with sound business practices.
Controls exist for the following areas of project management:
 Budget Development
 Funding Plan
 Schedule Development
 Contracts
 Invoices and Payment Applications
 Financial Reviews and Reporting

Budget Development
Budget Planning Phases: Overview

Planning Phase
The Project Manager, working with the Core Team, develops an initial model for the
overall project budget during the Planning Phase, using benchmark data and the Project
Budget Template. See CPDP Guide Item L. (Disclaimer: Please note that at this time, the
budget model provided here does not match up with the Project Manager’s report
produced for the project.).

Design Phase
The Project Manager develops and refines the budget model as the project proceeds
through the Design Phase.

Bid Phase

Construction Phase Cost Tracking


During the Construction Phase, or project execution phase, the Project Manager updates
the budget model at least monthly, including approved amounts, paid amounts to date,
and forecast amounts, for each line of the budget model.

Facilities Project Managers Guide Page 34


Budget Template
Budget development, tracking and control are primary responsibilities of the Project Manager.
The main subcategories of project costs from the Project Budget Template are:
1. Construction
2. Planning & Design
3. Furniture, Fixtures & Equipment (FFE)
4. Project Support
5. Transportation Assessment (if applicable. See Appendix, Item M, in CPDP Guide)
6. Project Management
7. Project Contingency

The definitions of the above budget lines are provided in the Appendix of the CPDP Guide,
Item L. (Disclaimer: Please note that at this time, the budget model provided here does not
match up with the Project Manager’s report produced for the project.)

Planning Phase Budget Development


The development of a Planning Budget can start with either:
 the selection of a desired budget number, from which a corresponding range for
project/program scope can be derived, or
 a program scope, from which a budget range can be derived.
In either case a key deliverable for the Project Team is to establish a range of typical unit
($/sf) construction costs and a ratio of construction costs to total project cost.
Estimations of unit construction cost are based on a preliminary understanding of the program
and site, and selection of appropriate benchmark projects for comparative purposes. The
Project Team will select representative projects at Cornell and, if possible, at other institutions,
to establish a range of unit $/SF construction costs.
The Project Manager will also work with the core team to identify any unusual project ―soft‖
costs. For purposes of the initial Planning Budget, the ratio of construction cost to total project
cost at the beginning of a project is generally in the range of 2/3 to 3/4, and depends on the
anticipated level of the soft costs.
Soft costs are all costs not incorporated in the finished building; they are the expenses other
than bricks and mortar incurred in developing a building project. Lines 2.0 (Planning and
Design), 4.0 (Project Support), 5.0 (Transportation Assessment) are budget line items for soft
costs. 1.0 (Construction) and 3.0 (FF&E) may also show soft costs for suchs things as quality
assurance services.
The following table lists the soft cost budget lines and a range of typical percentages of project
cost.

Facilities Project Managers Guide Page 35


LOW HIGH
Planning and Design 10% 16%
Fixtures, Furnishing and Equipment 2% 6%
Project Support 2% 8%
Transportation Assessment 2% 2% See CPDP
Guide Appendix, M
Project Management 2% 6%
Contingency 8% 10%

Building efficiency is another important factor in establishing the relationship between


program size and construction cost. The ratio of net program area to building gross area is
normally in the range of 55% to 65%.
Remember that the cost per square foot is proportional to efficiency; the higher the efficiency,
the greater the cost per gross square foot.
Relationship Between Area Efficiency (NASF/GSF) and Cost Per GSF

NASF GSF Efficiency Cost/GSF Total Cost

80,000 160,000 50% $ 200 $ 32,000,000


80,000 153,846 52% $ 205 $ 31,538,462
80,000 145,455 55% $ 211 $ 30,690,909
80,000 140,351 57% $ 218 $ 30,596,491
80,000 133,333 60% $ 225 $ 30,000,000
80,000 129,032 62% $ 230 $ 29,677,419
Note: It's not easy to increase efficiency. The program and mechanical space are the costlliest spaces.
As efficiency increases, it's the less costly space that's being reduced.
Please note that un-programmed space includes
 entrance areas
 attics
 mechanical rooms
 lavatories
 corridors
 stairways
 space within walls
 ―left-over‖ spaces that occur in a building design.
To estimate archiving fees, see Worksheet for Computation of Capital Project Fees (projects $50K or
greater)

Facilities Project Managers Guide Page 36


Design Phase Budget Development

Feasibility Study Phase Budget Development


A feasibility study can be quickly done for some projects, but significant projects
usually require a feasibility / concept study. Using the preliminary program
requirements for the project, an ―order of magnitude‖ planning budget will be
developed by the Core Team. See sample feasibility study.
During this phase of the project a range of project costs, e.g., design fees, management
fees, construction estimate, should be used. This range of costs will be further refined as
the design progresses.
Realistic contingencies to account for unforeseen circumstances during the development
of the project should be established. These tend to be substantial at this stage of project
development.
The product of a feasibility phase is the Schematic Design PAR and the budget for this
phase, discussed next.

Schematic Design (SD) Phase Budget Development


An important objective at the end of the feasibility study is to develop a Schematic
Design phase project budget for the project scope that fully meets the program
requirements. The project budget should only require slight adjustments after the end
of this phase if the scope of the project does not change.
The Core Team should follow these steps to develop the SD budget:

Step 1: Parallel estimate


In addition to the SD cost estimate provided by the design consultant as part of their
contract, an independent cost estimating professional should be used to furnish a
second, parallel cost estimate of the proposed work. The estimates should utilize similar
formats so that they can be easily compared.

Step 2: Reconciliation of estimates


To the extent possible, both estimators must reconcile the two cost estimates to ensure
that they both include the same scope of work. The result of this reconciliation is the
determination of a budget for the project.

Step 3: Allowance Items


Identify, and budget for, those items that will be carried in the budget as ―allowance‖
items. Such things as furniture, special user equipment, audio-video equipment, special
furnishings, etc., may fall into this category. This allowance will represent the not-to-
exceed amount for these items.

Step 4: Value Analysis /Value Engineering (VA/VE)


Earned Value Management (EVM) is a project management technique that measures
project progress objectively. EVM has the unique ability to combine measurements of
technical performance (i.e., accomplishment of planned work), schedule performance

Facilities Project Managers Guide Page 37


(i.e., behind/ahead of schedule), and cost performance (i.e., under/over budget) within
a single integrated methodology. EVM provides an early warning of performance
problems while there is time for corrective action. In addition, EVM improves the
definition of project scope, prevents scope creep, communicates objective progress to
stakeholders, and keeps the project team focused on achieving progress.
This process is a rigorous one, in which the project manager attempts to deliver project
scope at a lower cost. The Project Manager’s responsibility is to consider life cycle costs.
In this process, called ―value analysis / value engineering‖ (VA/VE), the core team,
impacted stakeholders, and appropriate experts need be invited to review and accept
decisions.
VA/VE is one of the first steps in the Earned Value Management process, which is
designed to test and validate cost estimates. The team will identify a long list of items
to consider, if estimates exceed the target budget established during the Feasibility
Planning Phase. It is strongly recommended that the Project Manager manage the
project at or below the maximum range of costs for the design at this phase, before
moving on to Design Development. It will become increasingly more difficult (and
costly) to identify significant cost savings as the design moves toward completion.
See PM Toolbox training Life Cycle Costing in Value Engineering
See Sample SD VE
Sample SD Cost Strategy.
At the end of Schematic Design, the project budget and program should be aligned and
the final budget should be approved.
 If the budget and the scope do not yet align, the team will return to the SD
process to make the adjustments necessary to get the project scope and
budget in alignment before proceeding to the Design Development phase of
work.

Facilities Project Managers Guide Page 38


Design Development (DD) Phase Budget Development

Step 1: Perform a cost/value analysis


The selected service provider of pre-construction services may perform this analysis
which allows the contractors to review the design and propose alternatives that could
result in additional cost savings. Design options must be decided on so that the design
may progress including the lowest cost systems/assemblies that meet the stated design
criteria. This step is a follow up to the cost/value analysis that was conducted at the
end of Schematic Design.

Step 2: VA/VE Items


Determine a comprehensive list of VA/VE items to be considered through the
subsequent design and bid phase. Even if the budget estimate shows the project aligns,
this will not be certain until after bids have been secured and analyzed. See sample DD
VE.

Step 3: Life Cycle Costs


Cornell’s project teams are required to design for minimum life cycle costs. Core Teams
will consult with Cornell stakeholders (for instance, Maintenance Management,
Utilities, and other Facilities Services groups) to solicit their participation in design
decisions regarding life-cycle costs, durability and maintainability.
See the PM Toolbox training Life Cycle Costing in Value Engineering.

Step 4: DD Estimate
Perform a DD estimate at the end of the Design Development Phase along with an
optional parallel estimate from an independent, professional cost-estimating firm as
deemed necessary by the Project Manager. This estimate should have a consistent
format with schedule of values in the budget template so that useful forecasting
statistics can be maintained.

Step 5: Project Budget Validation


Validate the Project Budget with the DD estimate. At this phase of design, the range of
costs must be narrowed to a fairly certain Project Budget target that will carry through
the Construction Document/Bid Phase.

Construction Documents Phase Budget Development


The design must not change during this phase.
Alternates to the base bid design must be finalized and agreed to by the Core Team.
Alternates are often developed during the Construction Documents (CD) phase to
estimate the costs of specific scope elements or to identify scope that can be deleted
from the project in the event that the bids exceed the budget.
Separating items provides a clear means for cost benefit analysis of options that would
enlarge or shrink the building program, according to the available project budget.

Facilities Project Managers Guide Page 39


A final CD cost estimate is prepared at the end of this design phase.
A contractor selected to perform pre-construction services will review the construction
documents to validate the final cost estimate and to help avoid potential bid cost over
runs.
Perform final budget reconciliation just prior to bid. Ensure that the selected alternates
will allow a construction contract to be issued.

Bid Project Phase Budget Development


 The Contracts & Capital Projects Office (C&CP) is responsible to uphold the integrity of the
bid process for all construction projects at the University.
 For all projects, the Architect /Engineer provide the Technical Requirements
(specifications and drawings).
 The Core Project Team edits Cornell’s General Requirements to represent the specific
circumstances of the project, and provides both the Technical and General Requirements to
the Contracts & Capital Projects Office.
 C&CP prepares Instructions to Bidders, Bid Forms and Cornell’s General Conditions with
assistance from the PM as requested.
 C&CP issues the resulting bid documents and administers all flow of paper and
information associated with the bid, including conducting the bid opening.
o See in the CPDP, Appendix G, Bid Document Package, and Appendix H, General
Conditions and General Requirements.
o See C&CP web page Pricing your Construction Project .

Lump Sum Projects


On lump sum projects, the bids from the invited general contractors are received by
C&CP and analyzed with the Core Team.

Public or Private Bid Openings


Bid openings are typically public. However, private openings may be held at the
discretion of the Contracts & Capital Projects Office. (State-funded Project must conduct
a public bid opening).
If a qualified bid is within the Project Budget, a contractor may be selected for the work.

GMC Projects Negotiations


When the form of contract is Guaranteed Maximum Cost (GMC) the Core Team and the
Contracts & Capital Projects Office will negotiate General Conditions, General
Requirements (which can be found in the CPDP, Appendix H), contractor fee, and other
contractual terms with the selected general contractor. See PM Toolbox Training
Negotiations for Project Managers and Fixed Price Audit Program.
All work will be competitively bid by the selected general contractor, and the result will
be a negotiated guaranteed maximum cost for the work, that is within the project
budget.
Facilities Project Managers Guide Page 40
GMC may be used when there is a challenging project schedule or a highly technical or
complex project.
The GMC delivery method allows the owner, contractor and design team to work
together to save time during construction.
o See the GMC Cost of Work spreadsheet for estimating.
o See Appendix for examples of GMC documents and spreadsheets:
 GMC Systems
 GMC Cost of Work (Current Bidding Climate)
 GMC GC’s

Bids Exceed Construction Budget


If all bids exceed the construction budget, conduct a scope review and/or value
engineering (cost saving) session to determine if the project can be completed within the
approved construction budget. This is sometimes referred to as ―de-scoping the
bidder‖.
De-scoping the bidder is the process the Project Manager uses to reassure herself that
the contractor has provided a responsible bid and has priced the project for the scope of
work the contractor was asked to bid on. The Project Manager might sit down with the
contractor and review the responsibilities of the contractor in order to confirm explicitly
what the contractor is responsible for in the bid scope.

Awarding the Project to a Bidder


On a Lump Sum project, award is made on the basis of low base bid or project specific
criteria. Once this selection has been made, alternate pricing is then taken into
consideration.
State-funded projects are awarded on the basis of base bid plus alternates in sequential
order.
A contract is then awarded by the Contracts & Capital Projects Office.
Prior to award, the Core Team considers and makes decisions as to incorporation of all
acceptable VA/VE suggestions made by the selected contractor.
 See the PM Toolbox Training Bidding a Project.
 See sample budgets.

Construction Phase PAR


The Construction Phase PAR is finalized with the construction budget fixed, including
contingency. Funds are authorized.

Facilities Project Managers Guide Page 41


Construction Phase Cost Tracking
Construction phase Project Contingency is generally set at 10% of the value of the
construction contract. During the Construction Phase, the Project Manager and Construction
Manager are responsible for
 administering the intent of the construction agreement
 monitoring progress
 ensuring conformance to plans and specifications
 quality control
 payment application approvals
 pending items
 controlling the budget

Pre-construction
The Project Manager should implement effective processes of communication between
the Core Team, design consultant and contractor.
See PM Toolbox Training:
o Projects Communications Plan
o Managing Expectations
o Project Communications
o Project Communications Checklist (use this as a model)
o The Project Manager is responsible for conducting a pre-construction meeting per
the terms of the Agreement.
Prior to a contractor mobilizing on site, a contract must be fully executed and all
contractual requirements for insurance, bonding, etc., as specified in the Contract must
be in place. Project-specific methods for addressing such things as Change Orders,
answering questions related to the work and control of payments are discussed. See
Risk Management below.
Minimize or eliminate the occurrence of ―scope creep‖. Contingency funds are not to be
used for discretionary design changes or scope items not specifically defined in the
PAR.
The Project Manager and Construction Manager develop an expedited means to
review/approve submittals, and monitor it carefully. Coordination of trades and site
logistics must be expedited, as well, by the Construction Manager.

Facilities Project Managers Guide Page 42


Construction

Keep Schedule
The Construction Manager keeps to current published schedule.
The Project Manager and Construction Manager avoid discretionary changes to the
design at this phase. Changes made now carry a severe cost penalty.

Validate, Track and Monitor Change Orders


o The Project manager and Construction Manager validate all Change Orders in a
timely manner including the processing of contractual change orders. Document the
cause of all Change Orders ( e.g., field conditions, design errors and omissions,
owner initiated program change).
o Keep an accurate, current Change Order log and insure Change Order costs are
added to/deducted from the Master Project Budget Model.
o See C&CP website for information on change orders.
o See Sample Change Order letter.

Review for ADA Access Compliance


Project Managers should -keep an accurate review of partners consulted on access
review, as well as have conversations with architects and Cornell University staff on
access elements.

Timely Responses to Contractor


Make sure there is always a timely response to all requests by the Contractor.
Adopt an effective system to manage and document this flow of information.

Timely Payments
Make timely payments. See invoice payment.

Quality Assurance/Quality Control


Implement a Quality Assurance/Quality Control system during the Construction
Phase. See PM Toolbox training Quality Control, Inspections and Commissioning.
Also, see next section.

Monitor Contractor’s Compliance


Continue to monitor Contractor’s compliance with contractual submissions. Many
different Cornell stakeholders can play a role in monitoring compliance. The Cornell
shops, structural engineers, designers, project team, EH&S, clients, the commissioning
agent, Maintenance Management, are examples of groups who can provide input into
compliance of the contractor.
See PM Toolbox training for contractor compliance and quality assurance topics
 Energy Management Tools
Facilities Project Managers Guide Page 43
 LEED Rating System at Cornell
 Quality Control, Inspections & Commissioning
 Testing & Inspection Services
 Your Project and Environment Health and Safety

Close-out/Move-in
During this phase of the project, the Project Manager should promptly initiate the
financial close-out of all Project commitments. This will avoid accumulation of
unnecessary administrative costs to the Project.

Resolve any claims


The Project Manager should resolve any claims. See Risk Management. Morever, this
is a good time to advise other Project Teams of any lessons learned and/or innovations
that could be used in the future.

Project Contingencies
Capital building project budgets carry three types of contingencies:
 Escalation
 Design
 Construction

Escalation Contingency
Escalation Contingency adjusts the project budget model for changes in the cost of
construction, caused by increases in labor costs and volatility/increases in material
costs, and inflation of the other budget lines over time.
Escalation Contingency must be considered for projects lasting over a year.
The following guidelines apply to the use of cost escalation in project budgets.
o Project budget models should list a separate line for escalation for each of the six
major budget categories. Construction cost estimates from our pre-construction
estimators should break escalation out separately and the same factor used to
escalate the construction estimate to the bid date should be used in the Construction
section of the project budget.
o Escalation factors will probably be different for each of the project budget sections.
For example:
 The Planning and Design section might not escalate once the A/E fee has
been negotiated.
 Project Management costs will escalate with increases in the enterprise billing
rates.
 Construction costs will escalate per the anticipated conditions in the local
construction market.

Facilities Project Managers Guide Page 44


Projects with fixed, non-escalating budgets
o Projects with fixed, non-escalating budgets are more sensitive to volatile
construction escalation than projects that are allowed to escalate.
o Fixed budget projects require the project team to estimate future escalation figures at
the start of the project, and then adjust the scope if the escalation estimates are
wrong.
o Scope adjustment can be very difficult, especially late in the design phase of the
project. Consequently fixed budget projects require a more conservative approach to
picking escalation figures, i.e., they have a larger escalation contingency.
o The intent of fixed project budgets is to emphasize preservation of project budget
over scope.
o The preferred method for building the project budget is to structure the budget
model at each project milestone cost estimate (i.e., Concept, SD, DD 50%DD),
assuming immediate construction start. Then an escalation contingency factor is
applied to each of the main budget subcategories to arrive at the total project cost.
Finally the scope is adjusted as required to match the estimated total project cost to
the budget. Escalation contingency applied to the construction line should come
from the construction cost estimators working on the project, in concert with the
Project Team.
o Finally the scope must be adjusted as required to match the estimated total project
cost to the budget. Escalation contingency applied to the construction line should
come from the construction cost estimators working on the project, in concert with
the Project Team.
o Projects with fixed, nonescalating bugets should include bid alternates that may be
taken in the event that escalation assumptions are inadequate. Development of a
strategy for use of alternates is particularly important if the project budget is non-
escalating.

Projects with budgets that are allowed to increase with escalation


o Projects with budgets that are allowed to increase with escalation are easier to match
scope with cost than projects with fixed budgets, because there is less risk from
faulty escalation assumptions.
o The concept is that, if you can afford the project now, you will be able to afford it in
the future because you are protected from escalation, except in circumstances where
the escalation is so extreme, the project becomes unaffordable.
o For projects with budgets that are allowed to escalate, the starting budget is allowed
to escalate from the project approval date (the date the project base budget is set) to
the start of construction.
o The intent of escalating project budgets is to emphasize preservation of project scope
over budget.

Facilities Project Managers Guide Page 45


o Escalating project budget models can be structured in the same manner as non-
escalating projects except the escalation contingencies are treated as additions to the
project budget.
o The purpose of the escalation contingency is to provide an estimate of the eventual
total project cost.

Design Contingency
Design Contingency is used in the design phase of a project in acknowledgement that,
until the design is completed, the construction cost estimate is based on incomplete
information.
The following guidelines apply to use of Design Contingency in project budgets.

Design Contingency for Design Phase of Budget


Design phase Project Contingency is used during the design phase of the project to pay
for things such as
o increases in A/E fees due to program changes,
o complications in the site plan review process, or
o delays in the project during which the project team continues to work and bill its
time.
The Design Contingency belongs in the construction section of the budget. Funds are
moved from the Design Contingency line into the construction line to pay for scope that
is identified as the design progresses.
There is no need for a Design Contingency when using unit square foot costs to
benchmark the cost of a proposed project during the Planning phase. The proposed
project is being compared to an existing facility that is complete.
The Design Contingency should be set at 10% to 15% of the construction cost-of-work
amount in cost estimates during the planning or feasibility stage of a project. Projects
typically carry
o 10% at the end of Schematic Design,
o 5% at the end of Design Development, and
o 2.5% at the 50% construction document estimate.
o Design Contingency is 0% when the design is complete and ready for bid.

Construction Contingency
Construction phase Project Contingency is generally set at 10% of the value of the
construction contract. Project contingency is used during the construction phase for
some of the above reasons, as well as for the following possibilities:
o unforeseen expenses in areas such as underperforming value engineering initiatives,
o quality assurance inspections
o added commissioning costs. See sample budgets.
Facilities Project Managers Guide Page 46
o allowances or alternates to the construction contract
o Factory Mutual (insurance) or Building Inspector requirements identified during
construction.
Use of the contingency for these items is generally determined by the Project Manager
with input from the Construction Manager.
Project Contingency is also used during the construction phase to pay for three general
categories of cost increases related to the construction contract:
o Errors and Omissions
o Unforeseen Conditions
o Scope / Project Changed

Errors and Omissions


Errors and Omissions (E&O) in the design documents are defined this way:
o Errors occur when the designer makes mistakes in the contract documents; e.g.
specifying a 32‖ wide door when a 36‖ door is required.
o Omissions occur when the designer neglects to put something in the contract
documents that should have been there; e.g. forgetting to put a door where one is
needed.

Unforeseen Conditions
Unforeseen conditions occur when the architect or contractor had no way of
anticipating a job site condition that affects the project. For example, in a renovation
project the contractor may discover a structural problem in the building when a wall is
opened up. Another example is the contractor doing an excavation and encountering a
utility line that was not on the construction documents and not on the Owner’s utility
maps. In each case, no one is responsible for not having addressed the condition in the
construction documents and Cornell must pay to fix the problem.

Responsibility: E & O and Unforeseen Conditions


 The Project Manager is responsible for determining use of contingency in the
E&O and Unforeseen Conditions categories.
 Project teams frequently encounter circumstances at the conclusion of a
project, when the building is newly occupied and problems arise as a result of
the dissatisfaction of certain occupants or stakeholders. For example, the
occupant of an office might want an extra data outlet, or a piece of mechanical
equipment may prove to be unreliable, even though it was purchased and
installed according to the contract documents. The Project Manager is
responsible for post-construction contingency use when it falls into the E&O
and Unforeseen Conditions categories.

Scope/Program Change

Facilities Project Managers Guide Page 47


Scope or program changes occur when Cornell makes a change to the scope of the
project after the work has been bid and awarded. It is important to note that
discretionary changes to the project after construction has begun are strongly
discouraged.
Although Project Contingency is not intended for scope/program changes during the
construction phase, these changes are sometimes unavoidable.
Typically there is an executive committee comprised of the Project Manager and the
PDC Director; there may also be a a central admininistrative representative and the
program representatives. This group discusses options and makes a recommendation
on the use of contingency. At the next level--VP Facilities— s/he will probably insist
on bringing forward a PAR to approve the use. For example, on the Life Sciences
Technology Building project, the PAR's have noted the use of contingency and asked
for backup in that amount if the project goes over budget.

Responsibility: Scope / Program Change


 Requests to spend construction contingency on Scope/Program change
require the authorization of the
 VP for Facilities Services,
 the person representing the source of the funding, and, depending on
the size of the change,
 CF&PC.
 When large projects are involved, the Executive Committee should make
timely decisions on the use of contingency for scope changes.
A Construction Contingency Worksheet for exposures is available for project
managers.

Facilities Project Managers Guide Page 48


BUDGET

TYPE OF PLANNING DESIGN CONSTRUCTION


CONTINGENCY
The Planning and Design section might not Construction costs will
ESCALATION
escalate once the A/E fee has been negotiated. escalate per the
Project Management costs will escalate with anticipated conditions in
increases in the enterprise billing rates. the local construction
market.
10% to 15% of the 10% of the cost of the The Design Contingency
DESIGN
construction cost-of- design fee for each belongs in the
work amount in cost phase construction section
estimates during the --10% at the end of
planning or feasibility Schematic Design,
stage of a project.
--5% at the end of
Design Development,
and
--2.5% at the 50%
construction
document estimate.
Design Contingency
is 0% when the
design is complete
and ready for bid.
10% of the value of the
CONSTRUCTION
construction contract.
Errors and
Omissions
Unforeseen
Conditions
Scope / Project
Changed

Facilities Project Managers Guide Page 49


Capital Project Funding Plan
Each capital project is required to have a funding plan, identifying
 the source(s) of funding for project costs,
 the need for debt financing and
 the source of repayment of debt service (principal and interest).
This funding/financing plan is the responsibility of the business manager or similar position
within the unit that is providing the project funding.
Funding sources, including identification of account numbers, must have sufficient funds
available to cover the project cost or an explanation of where funding will ultimately come
from. If debt financing is needed to cover project cost, either on a short-term, bridge basis or
long-term, permanent basis, the unit business manager is to work with the University’s
Director of Debt on the loan terms and loan application process.
Project funding to come from gifts must have backup listing the gifts raised for the project,
payments received, and a schedule of anticipated payments on outstanding gift pledges.

Schedule Development
Schedule development and update is another principal responsibility of the Project Manager.
The contractor provides the schedule to the Project Manager.
A properly designed schedule includes
 each phase of design work with time for design review
 cost estimating milestones
 associated redesign periods if needed,
 bid or buy-out period,
 construction period, and
 internal and municipal approvals.
The duration of a typical project that experiences no unusual delays, from start of initial
programming through move-in of users, ranges from 6-8 months for a smaller project
designed and built by PDC, to five or six years for a large laboratory building.
See PM Toolbox training Construction Scheduling

Contractual Agreements
After a consultant or contractor has been selected for a project, and prior to start of design or
construction work, the terms and conditions surrounding the execution of the work must be
documented in a Contractual Agreement.
Cornell’s Office of Contracts & Capital Projects (C&CP) maintains Cornell’s contractual
instruments and develops all Contractual Agreements between the University and its
consultants and contractors. The Project Manager is responsible for working with Contracts &

Facilities Project Managers Guide Page 50


Capital Projects on modification of the contract instrument to meet the specific requirements of
the project.

Design Agreements

Project Manager Issues Request for Proposal (RFP)


The Project Manger issues the RFP. In order for a contract to be executed with a
consultant, the consultant needs to have responded to a Request for Proposal which
includes
o a description of the services requested,
o the deliverables and schedule requirements, and
o a copy of Cornell’s A/E agreement (see page 8) which allows the consultant to
respond to the RFP with an understanding of the terms of the proposed contract.
o The University Architect is also involved in the selection of an architect for the
project.

Project Manager Presents Proposals to C&CP


The Project Manager should review thoroughly (but not sign) proposals from
consultants to ensure that all required work has been addressed and that no fees are
included for services that are not requested (alternate pricing options may be identified)
and present the resulting proposal to Contracts & Capital Projects for consideration in
the preparation of a contract.

C&CP Reviews Proposal


Contracts & Capital Projects will review the proposal to make sure that it is consistent
with the stipulations within the proposed contract.

Facilities Project Managers Guide Page 51


Types of Design Agreements

DOCUMENT USE BACK- LIMIT


NAME UP

Owner/Architect Professional None Less than


Agreement Design Fees $100,000 in
(Short Form) and Services Professional
Fees
Short Form
(limited)
Short form (full
service)

Owner/Architect Professional None Greater


Agreement Design Fees than
and Services $100,000 in
See Long form
Professional
Fees

Preconstruction Preconstruction None No Limit


Services Fees and
Agreement Services

See Design Agreements.


See Blanket A/E Agreements.
See relevant sections in PMToolbox Architectect Procurement
For Contract College Facilities, see
o Pofessional Service Selection Information Sheet
o Standard 254 Form
o Standard 254 Form Guidelines

Facilities Project Managers Guide Page 52


Construction Agreements
The Core Team, working with Contracts & Capital Projects, selects the bid and/or negotiates
the proposal that is most advantageous to the University.
Contracts & Capital Projects handles the development and execution of the construction
contract.

Types of Construction Contracts

DOCUMENT USE BACK-UP LIMIT


NAME
Short form agreement The procurement of Written scope of Typically
small renovation and/or work, contract value $100,000
construction services cost, schedule,
funding source, PAR
(over $50,000)
Construction Construction costs and Bid Form Plans, Typically
Agreement services contracted Specifications, greater than
with a Lump Sum cost. Addendums $100,000
incorporated by
reference.
*Guaranteed Maximum Construction costs and Contractor Proposal, Typically
Cost (GMC) Agreement services contracted General Conditions greater than
with a Guaranteed Costs, Assumptions $1,000,000
Maximum Cost and Clarifications
Plans, Specifications,
Addendums
incorporated by
reference.

*These are customized agreements in which the Project Team works closely with the
Office of Contracts and Capital Projects on the wording of the General Conditions (see
GMC GC’s).
Key items for negotiation with the Construction Manager include fee, general
conditions costs (see GMC GC’s), contractor’s contingency and sometimes
incentive/disincentive clauses.
Under this contracting method, assembly, distribution of the bid documents and receipt
of bids for subcontractor work is generally done by the Construction Manager.
See PM Toolbox Training Managing Contracts.

Facilities Project Managers Guide Page 53


Invoices and Payment Applications
The Project Manager is responsible for insuring the accuracy and appropriateness of payments
made by the University to consultants and contractors in payment for execution of the various
work tasks of the project. C&CP oversees the payment of invoices for projects.

Setting up an Account
Before invoices can be paid, the PM must generate a PAR and have an Approval Letter, which
C&CP uses to set up the project account with the Division of Financial Affairs (DFA).
Each month C&CP receives an accounting statement from DFA.

Receipt of Invoice in C&CP


Invoices are received by the Contracts & Capital Projects Office. Invoices received by the
Project Manager or Construction Manager should be routed to C&CP.

C&CP Review of Invoice


Upon receipt of an application for payment C&CP performs the following steps before
forwarding it to the Project Manager for approval:
 Identify the payment source
 Review the payment history
 Check invoice against contract terms and conditions
 Resolve any discrepancies with the applicant’s accountant

Construction Manager Reviews


The Construction Manager reviews the construction invoices. The Construction Manager
negotiates changes, and can determine if the contractor is offering a responsible proposal. The
Construction Manager also ensures that the services for which Cornell is being billed have
been delivered. If the project has a Project Coordinator, and if general conditions are included
in the contract, the Construction Manager may create a ―pencil copy‖.

Project Coordinator Review


Project Managers typically route payment applications to a Project Coordinator who reviews
them for completeness of supporting documentation and accuracy.
 For contracts that allow billing of reimbursable expenses, the supporting documentation
must include receipts for all expenses.
 For contracts that allow billing of actual general conditions costs (Cornell’s GMC
contract), the PM must check to be sure only allowable expenses are billed.

Approval by PM and Return to C&CP


The Construction Manager or Project Coordinator returns the invoice to the Project Manager,
who approves payment. The PM sends the invoice to others for approval, including the PM’s

Facilities Project Managers Guide Page 54


supervisor and, in the case of PDC PMs, to the PDC Director, the appropriate finance person,
and the VP for Facilities Services.
The PM then sends the payment applications to the Contracts & Capital Projects Office where
all contractual payments are processed.

CC&P Requests Payment by DFA


Pay requests are sent to the DFA, where checks are issued.

Project Over Budget


CC&P will not sign off on a commitment if it causes the project to go over budget. The Project
Manager must submit a new PAR or re-allocate funds (for example, use contingency.)

Project Manager’s Report


The Project Manager’s Report contains
 Approved Budget
 Current Commitments in the contract
 Amount of the budget expended to date.
See an example of a Project Manager’s Report in the CPDP Guide, Appendix , Item N.
CC&P sends this report to Project Managers monthly.
The Project Manager can access job cost invoices by going to the Facilities Services website,
and click on ―Facilities Information‖ and then on ―FS Administrative Services /Job Cost.‖
See also Project Controls and Payments.

Financial Reviews and Reporting


Projects over $5 Million
For projects with a budget greater than $5 million, the Project Manager submits a Project
Status Report (PSR) to the VP Facilities Services and Primary Customer on a monthly basis.
The PSR includes:
 a financial status report using the seven budget categories,
 a brief summary of project activity, with focus on elements of the project that are significant
milestones or challenges.

Projects under $5 Million


For projects with a budget less than $5 million, the PM prepares a monthly PSR if requested by
the Primary Customer. See Appendix, Item P in the CPDP Guide for an example of a PSR.

Facilities Project Managers Guide Page 55


Part IV: Project Process Phases
Project Delivery Flow Chart
The Project Delivery Flowchart summarizes the approval process for endowed Cornell capital
construction projects on the Ithaca campus. This chart represents the most common method of
project delivery used by Cornell University – Design/Bid/Build. Contract College Facilities
has a similar flow chart which can be obtained from their office.
The chart has two basic purposes. (1) to consolidate a very complex process into a simple, one
page format that can be easily understood by any Project Team member or other interested
person that may want to gain a basic understanding of the overall Project Delivery Process. (2)
to provide a concise visual tool for the Project Management Team to manage milestone
activities as well as to provide a list of common tasks that must be accomplished each step of
the way.
The chart shows the general phases of each project – Planning, Design and Construction.
Individual steps within each general phase further define the order normally followed by
projects.
The ―Steps‖ section of the chart indicates the various stages in the sequence of project delivery.
The section of the chart above the steps, describes the various approvals for either funding or
design required for the project by senior university administration, Board of Trustee
committees or the Board of Trustees. Level of approval required is based on the total project
budget.
The section of the charts below the steps describes project milestones for the Project Team,
including the client group.
See the Project Deliver Flow Chart in the CPDP, page 34.

Facilities Project Managers Guide Page 56


Planning Phase
Goal
The Project Manager’s goals during the planning phase are to initiate the project properly,
review and understand the client’s needs, address options thoroughly, and select the option
that is most feasible.

Deliverables
 Project Space Program
 Site Selection (new construction only)
 Consultant Selection
 Project Formulation
 Approvals

Client Responsibilities
 Define need and project goals
 Develop Project Plan (sometimes with the PM)
 Identify funding sources
 Initiate project

PM Responsibilities
 Initiate Project with client
 Review and/or help develop Project Plan.
 Create project team.
 Initiate Project Space Program.
 Ensure Site Selection is completed(new construction only) or define existing boundaries
(renovation)
 Select Consultant
 Decide need for either Concept Study and/or Feasibility Study
 Project Formulation
 Ensure Primary Customer Approval
 Develop Schematic Design PAR and/or Design Development PAR to begin next phase
of the Project Management Process

Facilities Project Managers Guide Page 57


Steps

Initiate Project
The client may initiate a project with either of the following:
o Ticket through Facilities Services Customer Services
o Request for Services
o Request for Capital Project
o Request for Renovation work
All of the above methods for entering into a project are a device to engage resources for
information and advice about infrastructure and existing space

Review Project Plan


Client and Project Manager review Project Plan. See a Sample Project Plan.

Create Project Team


o Identify all stakeholders that will contribute to program development.
o Identify the Project Team.
o Run team meetings. See PM Toolbox for tips on how to run effective meetings:
 Job Meeting Problems
 PM Meeting Techniques
 Running Job Meetings

Create Project Space Program


o Define programming needs with the Core Team.
o Create Space Program. New building and building addition projects always start
with a Space Program. Initially, it begins as a simple list of space types (e.g. faculty
office, class room) and floor area. The Program is developed over time to include a
complete description of each space. The description includes area, finishes,
adjacencies to other spaces, environmental and infrastructure requirements, and
furnishings to be provided by the contractor.
o Resources for developing a space program may include:
 Search Facilities Services’ Web Sites
 Find Information About Your Facility
 Document Archive
 Project Manager’s Environmental Checklist

o For a restoration project, define the project boundaries.

Facilities Project Managers Guide Page 58


Site Selection (new construction only)
o The Project Manager should contact the University Planning Office and the
University Architect as soon as he or she is aware of a project of significant size.
o Project Team, University Planner and University Architect develop context study in
which the question ―how does this project fit with the rest of the neighborhood and
surrounding area?‖ is addressed.
o Site selection options are explored and narrowed to the preferred site. Criteria for
selecting the site must be developed with the University Planning Office and
University Architect.
o It takes a few months to complete the Site Development Guidelines (formely called
―Site Criteria‖). The University Planning Office will review the Site Development
Guidelines (formely called ―Site Criteria‖) with the project team, stakeholders, and
the Campus Planning Committee.
o Once a preferred site has been identified, the University Planning Office and the
Project Team will develop the Site Development Guidelines (formely called ―Site
Criteria‖). (See CPDP, Appendix C).
o For both site selection and criteria the UP presents to CF&PC and B&P for approval.

Consultant Selection
o The established University Consultant Selection process will be followed. This effort
is led by the chair of the selection team.

Decide need for either Concept Study and/or Feasibility Study


The Project Plan usually leads to a Feasibility Study (see sample Feasibility Study) or a
Concept Study.
o Both studies are conducted by a consultant to determine if the project is possible
within a pre-defined budget or other program expectation.
o A Concept Study looks in more detail at options for the deliverables listed below
and produces a plan that can be reviewed by the customer and University. A
Feasibility Study generates a possible solution to that space need with associated
dollar amount. It generally has a program study. The feasibility study asks: ― I
know I need the space, how do I get the space?‖
o Upon the completion of this phase and after the required approvals are obtained, the
preferred option will then proceed into design.

Facilities Project Managers Guide Page 59


Both the Concept Study and the Feasibility Study take into account the following:

PROGRAM SCOPE STAKEHOLDER


Codes and regulations Federal, state, ECOS, EH&S,
municipal, Maintenance
Management (ADA
compliance) local code
officials
Site or location Site Selection University Planner
Building context and existing Context Study University Architect
campus fabric
Building technology Lab? Office? CIT
Cost See budget section Utilities, O&M, Client

Project Formulation
o Develop conceptual budgets and timelines.
o Consider the various project delivery methods for design and construction.
o Funding sources should be identified by the primary customer.
o Known risks should be identified for budget and schedule impacts.
o Narrow possible options that meet stated program requirements.
o Project Manager prepares PAR for Schematic Design Phase which includes an
overall context, concept and scope of the project.

Primary Customer Approval


o Select one concept for development
o Approve and align program and conceptual budget
o Finalize site selection.
o Develop Site Development Guidelines (formely called ―Site Criteria‖).
o Agree on the project delivery method for design and construction.
o Identify known risks to primary customer.

Facilities Project Managers Guide Page 60


Planning Phase Approval

With these approvals, the schematic design phase can begin.

Approve site selection


EXECUTIVE
Authorize funding if >$5M
COMMITTEE OR
FULL BOARD
Review A/E Selection
B&P
Approve Project Plan
Approve site selection
Approve Site Development
Guidelines (formely called
―Site Criteria‖)
Approve Concept Par Authorize site selection
CF&PC
Authorize PAR Approve Site Development
Guidelines (formely called
―Site Criteria‖)
Authorize SD
Authorize project plan:
budget, scope, schedule and
funding

Facilities Project Managers Guide Page 61


Design Phases
Schematic Design (SD)
The Schematic Design:
 leads to clarification of the project program
 explores of the most promising alternative design solutions
 provides a reliable basis for analyzing the project cost.
The result of the Schematic Design is a clearly defined, feasible concept that can be presented
in a form that achieves the Primary Customer’s understanding and acceptance.

Deliverables
o 100% Schematic Design documents (See CPDP, Appendix, Item F, Schedule G,
Documents Submittal Requirements ) from the Design Consultant that include, but
are not limited to:
 Site Plan , Including connection to central Utilities, if required.
 Typical floor pllans for each level
 All typical elevations
 Two or more sections
 An outline specification
 Other characteristics in comparison to the program
 A preliminary cost estimate (may require an independent additional
estimate)
 Renderings, models or other drawings needed adequately present the
concept, including sustainable design charrette and narrative which is
required during this phase for all capital projects.
o Confirmed budget
o Confirmed schedule
o Commissioning Strategy (SeePM Toolbox training Quality Control, Inspections and
Commissioning.)
o Identification of local, state and federal approvals needed and strategies to obtain
them.
o Plan for occupant relocation, swing space, and move timing
o Schematic Design Package review and approval. Refer to Schedule G, Document
Submittal Requirements.
o Engagement of Facilities Inventory Group.
o PAR for Design Development Phase

Facilities Project Managers Guide Page 62


Process
o Develop schematic design budget and ensure project budget confirmation
(including adjustments to either the program or budget to achieve alignment).
o Project schedule confirmation.
o Project Team must coordinate with stakeholders (such as PDC Engineering, Utilities,
Contracts, Cornell Police, CIT, Maintenance Management, EH&S, ECOS, etc.)
o Review for ADA Access Compliance
o Keep an accurate review of partners consulted on access review.
o Conversations with architects and Cornell University staff on
access elements.
o Optional pre-construction services of a qualified contractor or construction manager.
o Commissioning strategy development, depending on project scope a 3rd party
commissioning agent should be brought in at this time if not sooner. SeePM Toolbox
training Quality Control, Inspections and Commissioning.
o Form Municipal Approvals Team which will identify local, state and federal
approvals needed and strategies to obtain them. Be aware of municipal calendar.
o Begin planning for occupant relocation, swing space and move timing.
o Review and approve the Schematic Design package. (See Schedule G.) Obtain
Primary Customer and Stakeholder approvals (including design review by PDC
Engineering or Facilities Management).
o Project team must engage Facilities Inventory Group for assignment of facility code
(new buildings) and for room numbering (all new buildings and renovations that
move partition walls). See ―For Project Managers: When does a new building or
renovation get added to the Facilities Inventory‖?
 See PMT Training Project Archiving and Project Documentation.
 For document archives, go to the FIG archiving page.
o Prepare PAR for Design Development Phase.

Facilities Project Managers Guide Page 63


Schematic Design Approvals
With these approvals, the project can move to the Design Development Phase.
Authorize funding if > $5M
EXECUTIVE
COMMITTEE OR
FULL BOARD
Approve Schematic Design
B&P
Authorize DD if >$5M
Validate budget, scope, schedule, funding
CF&PC
Approve SD
Authorize DD

Design Development (DD)


This phase develops the scope of work previously approved in the Schematic Design Phase.
The primary purpose is to define and describe all important aspects of the project so all that
remains after the completion of this phase is the creation of construction contract documents.

Deliverables
100% Design Development documents from the Design Consultant that include all
documents from SD, documentation defined in the contract’s Schedule G (Appendix
Item F in CPDP) modified as required to meet the project requirements, as well as:
o Fully developed floor plans, interior and exterior elevations, reflected ceiling plans,
wall and building sections, and key details
o Basic mechanical, electrical, plumbing and fire protection systems are accurately
defined, if not fully drawn.

Process
o Project Team must continue to coordinate with stakeholders such as PDC
Engineering, Utilities, Contracts, Cornell Police, CIT, Maintenance Management,
EH&S, ECOS, etc.
o Validate project schedule, including definition of long-lead items.
o Validate and reconcile project budget with DD estimate. This may require an
additional independent estimate.
o Review and get approvals for DD package from Core Team and Stakeholders
(including design review by PDC Engineering or Facilities Management and
customer agent). Obtain sign-off on plans.
o Begin dialogue and agreements regarding front ends General Conditions and
General Requirements for the bid package by our contracts office and the consultant.

Facilities Project Managers Guide Page 64


o Prepare PAR for Construction Contract Document and Bid Phase. (See CPDP,
Appendix Item B)

Design Development Approvals


With these approvals, the project can move to the Construction Phase.

EXECUTIVE
Authorize funding if > $5M
COMMITTEE OR
FULL BOARD
Validate budget, scope, schedule, funding
CF&PC
Approve DD
Authorize CD

Construction Contract Documents (CD)


This is the final stage of the design process, which finalizes the drawings and specifications for
all components and systems of the project, resulting in construction contract documents used
to solicit bids for the work and construct the project.

Deliverables:
100% Construction Contract Documents. This set of documents fully describes the
project and will be the basis for soliciting bids from the selected contractors. This
documentation is defined in the contract’s Schedule G (Appendix Item F in CPDP)
modified as required to meet the project requirements.
Internal review of the documents by University stakeholders is normally done at 50%
and 95% completion for content and final comments.

Process
o Construction Documents Estimate
A Construction Document Estimate that finalizes the project budget is required. All
final adjustments to the program and budget should be completed in anticipation of
bidding the project.
o Validate schedule and budget.
o Construction management plan finalized.
o Review and approve CD package.
o Prepare bid document package, noting any special project requirements such as
accelerated schedule or working on off shifts .
o Prepare DRAFT PAR for Construction Phase awaiting bids.

Facilities Project Managers Guide Page 65


 Note that the PAR requires changes to Operating and Maintenance (O&M)
Costs; these costs should be researched and described within the document.
See PM Toolbox Maintenance Costs.
 The key issue is to identify the range of the costs, and which department(s)
will be responsible for assuming them. The analysis should include a
discussion on energy use and life cycle costs.
 For energy use range of costs, see PM Toolbox Utilities and Your Project.
 Please contact Facilities Management for assistance.

Construction Documents Approvals


With these approvals, the project can move to the Bid Phase.

Authorize Bid Phase


CF&PC

Bid Phase
The bid phase tasks include working closely with the Contracts & Capital Projects Office as
well as Director of Construction Management in selecting preferred, qualified contractors, and
securing bids for the specified work. A construction contract will eventually be negotiated and
awarded to the selected bidder.

Deliverables
Select qualified contractors, including interviews, if deemed necessary.

Process
o Determine whether bid opening will be public or private. (Note: State-funded
projects require that certain procedures be followed regarding bidders, public bid
opening, payment of prevailing wages, etc.)
o Determine bidding period and schedule pre-bid meeting with all invited bidders to
answer any remaining questions about the work. Issue addendum to the bid
documents, if necessary. (See CPDP, Appendix, Item G)
o Select lowest responsive responsible bid, after consideration of all other factors.
o Finalize PAR for Construction Phase. Note the O&M section and expected utility
costs need to be complete at this stage.
o Contract preparation and execution.
o See PM Toolbox training
 Bidding a Project.
 Managing Contracts
 General Conditions and Requirements
 Negotiations for Project Managers
Facilities Project Managers Guide Page 66
Bid Phase Approvals
With these approvals, the project can move to the Construction Phase.

Authorize construction if > $5M


EXECUTIVE
COMMITTEE OR
FULL BOARD
Authorize construction if > $5M
B&P
Authorize construction if > $500K
CF&PC

Construction Phase
The primary objective is to build the specified project within the agreed-upon schedule and
budget and with a high level of quality.

Site Preparation / Mobilization


During the early phase of construction, a the Construction Manager will establish will
establish with the contractor:
o administrative procedures
o progress meeting schedules
o progress update requirements
o schedule controls
o methods to expedite the required approvals of certain documents provided by the
design consultants.
Permits must be obtained by the contractor, and coordination of building trades and site
logistics must be determined and agreed to by the Construction Manager.

Construction

Deliverables
Required submissions are listed in the General Conditions and General Requirements
sections of the contract which can be found in the CPDP, Appendix H.
o The Construction management point of contact information plan as described in the
General Requirements, includes a site-specific Safety Plan, Affirmative Action
requirements for the general contractor (GC), etc.
 Cornell Construction Contract Environmental General Requirements
o Manage and limit scope creep.

Facilities Project Managers Guide Page 67


o Keep schedule and budget current and communicated to the Project Manager and
Construction Manager.
o Process any Change Orders in a timely manner.
 Reminder: If there are changes in the design that impact the floor plan,
Facilities Inventory needs to be notified to re-assign official room
numbers. It could be costly to correct errors after design documents
have been published.
o Pay contractors promptly.
o Assure quality of work.
o Review for ADA Access Compliance
 Keep an accurate review of partners consulted on access review.
 Conversations with architects and Cornell University staff on access elements.
o Contractor must communicate clearly with the Construction Manager, especially on
items that pose a risk to either the budget or schedule.
o Core Team and contractor must finalize move-in plan, and date of occupancy.
o Punch list

Close-out/Move-in
This phase facilitates the occupancy and turnover of the completed and commissioned project
to the Primary Customer.

Deliverables
Delivery of the completed project to the occupants.

Process
o See CPDP Guide, Appendix, Item K for the suggested close-out procedures.
o Coordinate with Primary Customer on CIT, furnishings and move-in .
o Punch list items completed promptly.
o Before occupancy, initiate the process of obtaining measured drawings through
Facilities Inventory see ―When does a new bulding or renovation get added to the
Facilities Inventory?‖ (budget line 02.06.03), and site conditions CAD mapping
through PDC Civil Section (budget line 02.06.01).
o Obtain Certificate of Occupancy.
o Archiving: Sort project materials for dispensation to one of these:
 the University Archives (See FIG website)
 Facilities Document Records Center
 Primary Customer.

Facilities Project Managers Guide Page 68


o See CPDP, Appendix Item I. The master list defines those records needed for the
archives. All other records belong in the Records Center with copies sent to the
Primary Customer as needed.
o Meet with the PDC archivist to turn over project records to turn over project records,
including record drawings and develop a plan for any outstanding documents. See
Archiving Questionnaire for this meeting. Other useful links include filing
protocol worksheet and document archiving instructions.
o Complete commissioning activities, including generation of final building
commissioning report and owner training in building operations by the Design
consultant and Contractor.
o EH&S Hood / Safety Inspections
o Fire alarm testing - EH&S
o Post-occupancy survey/analysis if desired
o Resolution of any claims
o Obtain contractual close-out documentation and make final payment to the
Contractor.
o Financial close-out of project promptly after completion of all work and payment of
all project related expenses.

Obstacles to Closing a Project Account


1. Open RFS or Purchase Order against a project
2. Legal action or claim (see Risk Management)
3. Lack of final paperwork from the contractor. (for example, .e., record
drawings/asbuilts, required O&M manuals & warranties.)
4. Open contract or commitment.
Close-out phase lasts through the end of contract warranty periods.

Resources
 PM Toolbox training Closing out a Project which provides checklists for close-out for
the following areas:
o Project Close- out: Construction Site
o Contract Close-out and Final Payment
o Capital Project Account Closure
o Archiving
 Suggested Close-out Procedures in the CPDP Guide, Appendix, Item M.
 Final Release in General Conditions Article 12.04, located in the PM Toolbox training
Closing out a Project and the CPDP, Appendix Item H.
 Guarantee in General Conditions, Article 14

Facilities Project Managers Guide Page 69


 Consent of Surety of Final Payment in General Conditions, Article 12.04
 Record drawings as cited in Owner/Engineer Agreement, p. 13, section 9 and in
Retention of University Records Policy
 Complete specifications as cited in Owner/Engineer Agreement, Schedule G,
Document submittal requirements, first item.
 Master List of Records for archival storage from all PAR level facilities projects

Facilities Project Managers Guide Page 70


Risk Management in Project Management
There are three responsibilities the PM assumes in Risk Management of a project:
 Assess Financial Risk
 Outline Legal Relationships
 Oversee Aspects of the Claim Process

Assess Financial Risk


 During Design Phase/Bid Process/Bid Analysis: Risk Management and Insurance reviews
financial risk of contractors with a model developed to determine a contractor’s risk of
bankruptcy. The model is only one indicator among others that are used by Contract’s
Management to evaluate risk of contractors.
 If the risk is high, Cornell can require a bond from the contractor, which will add to the
cost of the project.

Outline Legal Relationships: Design Phase/Have Clear Contracts


 The legal relationship concerning risk is defined in the answers to these two questions:
1) Who is responsible for insuring safety on the site?
2) How are safety roles and issues addressed? (see Claims below)
 Risk Management defines these types of relationships with respect to who is responsible
for safety

TYPE OF WHO HAS RISK LEVEL INSURANCE


RELATIONSHIP RESPONSIBILITY FOR COVERAGE
FOR RISK OPERATIONS- RISK
SIR
EXPOSURE

Normal construction Contractors Low High


process

Owner-Controlled Contractors but Cornell High Low


Insurance Program or has financial risk.
OCIP
Cornell as General Cornell High Low
Contractor

State

 The PM should understand these relationships. They are defined in the contracts. If the
PM knows the contracts and legal relationships which define the University’s exposure to
risk, they can better manage the project by determining if the contractor is adhering to
responsibilities defined in the contract.

Facilities Project Managers Guide Page 71


 See the PM Toolbox presentation ―Risk Management at Cornell University.‖ Slides 15 – 18
define the insurance requirements relative to the contract, and how to make claims
1) Major Construction Project General Liability
2) Contractor Insurance Requirements
3) A/E Insurance Requirements
4) Builders Risk

What if contractor is not adhering to safety requirements as stated in the contract?


 Set up meeting with contractor. If contractor still not meeting requirements:
o Set up meeting with contractor and Director of Risk Management and Insurance. If
contractor still not meeting requirements:
 Set up meeting with contractor and Director of Risk Management and
Insurance where Risk Management will state consequences. If contractor still
not meeting requirements:
Cornell may create a work stoppage, dismiss contractor from site, or
terminate contract (depending on seriousness of noncompliance.) It
is important that the PM brings many people to the table before this
last point is reached, such as EH&S, Director of Construction, etc.

Oversee Aspects of the Claims Process


 The claims process is determined by the relationships defined in the contracts. Claims
occur during the Construction Phase.
 PM needs to know who to call to start the process.
 PM may be asked to provide information about an incident. For this reason, it is important
that the PM keep good notes and meeting minutes. PM may also be called to testify in
court.
 Caution: The PM must be concerned with the facts of the case and not
attempt to place blame. Responsibility can only be determined after a full
investigation and after all experts have weighed in regarding an incident.
Contact Legal Counsel and/or Risk Management before giving any
statements.

Facilities Project Managers Guide Page 72


Three Types of Claims
The PM should be aware of the following claims, and should be prepared to address
them should they arise:
o Workers Compensation
o Liability
o Property

Workers Compensation
PERSON RELATIONSHIP CLAIMS PROCESS
INJURED

Cornell Endowed All Contracts Cornell Medical Leave


employee Administration-EH&S link
Cornell State All Contracts Covered by state insurance fund
employee
Contractor’s employee Normal contract Contractor’s insurance
OCIP OCIP claims process-OCIP
Administrator

See http://prp.ehs.cornell.edu/Acc-Inj/ for endowed employee claims forms.

Liability
RELATIONSHIP PERSON CLAIMS
RESPONSIBLE FOR PROCESS
INJURY

Normal contract Cornell Employee Cornell Insurance—report


to Risk Management
Contractor Contractor reports to his
carrier
Contractor employee is injured May tender back to
and sues Cornell Contractor—Over-action
Claim
OCIP All Report to OCIP
administrator

Facilities Project Managers Guide Page 73


Property Damage Liability Claims

PROPERTY PERSON CLAIM PROCESS


OWNER RESPONSIBLE

Cornell Contractor Cornell files claim or sues


contractor
Contractor Cornell Contractor files claim or sues
Cornell

Property

PROPERTY OWNER COVERAGE CLAIMS


Cornell Builders risk Requires an
understanding of who is
carrying builders risk,
Cornell or contractor
Contract College Builders risk SUCF process
Contractor Contractor’s property Contractor’s claim
insurance process

Facilities Project Managers Guide Page 74


Part V: Appendix

Facilities Project Managers Guide Page 75


Sample Matrix for Project Coordinator (PC) Responsibilities

PC1 PC2 PC3

COMMUNICATION
Work directly with User Groups on logistical issues such as moving,
signage and data jacks. x
Communicates with and coordinates day-to-day issues with the
customer contact person, e.g. moves, information exchange, parking,
traffic, EHS, police, fire department/alarm testing, crane schedules,
inspections, COs and TCOs, etc. x
Coordinate with Transportation on issues such as parking, coordinating
contractor permits, laydown areas, etc. x
Answer public questions on the project with standard responses.
Provide site tours. x
Manage non-capital projects and segments of projects with budgets of <
$50k. x
PM for projects that are in the range of $50k-250k x
PM for projects in the range of 50k-2M x

FINANCIAL
Financial Management - Generate reports from database using BRIO,
monitor expenses against budget lines, and maintain spreadsheet of
project expenses. Supervise administrative activities related to the
project (i.e. accounts payable, job cost, status reports). x
Issue tickets to the shops and monitor progress. Track ticket costs and
keep PM informed. Highlight deviations from budget estimates. x

RESPONSIBILITIES
Coordinate job site safety efforts of EH&S including review of the Safety
Plan and scheduling mock OSHA inspections. x
Manage and enforce site safety plan x
Coordinates with CIT - schedule and coordinate activities x
Coordinates with CIT - Secure estimates and manage installation x
Coordinate field inspections by PDC Shops and other parties. Monitor
quality of workmanship and materials with the assistance and support of
the Design Consultant and associated PDC Shops to maintain high
standards x
Conduct field inspects and punch list conformance inspections. x

Facilities Project Managers Guide Page 76


PC1 PC2 PC3
Supervise and conduct field inspections to assure conformance with
plans and specifications. x
Schedule and attend regular job meetings, prepare and distribute
minutes. Work with the PM to prepare meeting agenda. x
Run regular job meetings in absence of PM. x
Provide direction at regular job meetings, make immediate decisions
within the authority given by the project manager. x
Manage submittal process including tracking submittals & RFI's on
projects x
Manage change orders to agree upon the scope, cost, and schedule
impact of changed conditions. Prepares independent CU cost
estimates. Present rational/justification for approval to the PM. x
Approve Change Orders presented by the CM x
Coordinates and directs, as authorized by the contract, Contractors
during construction, acts as a single voice for CU to the contractor. PM
is the backup voice. Day-to-day communication is between contractor
and CM. x
Prepare RFPs with direction from the PM. x
Independently prepare RFPs within established procedures. Review
terms of contracts with respect to examples. x
Manage consultant selection process, negotiate terms of contract. x
Manage and direct the activities of A/E consultants. Review contract
compliance and authorize payments. x

TECHNICAL SKILLS
Project Scheduling - Builds and maintains project schedule using MS
Project or Primavera from data given by others. x
Project Scheduling - Monitors project schedule milestones against
progress. x
Project Scheduling - Implements corrective action to keep project on
schedule x
Lab furniture and equipment - coordinate purchase, arrange for storage
and transport as requested by the PM. x
Lab furniture and equipment - manage purchasing process, responsible
for inspection prior to turnover to contractor, Responsible for installation
contract. x
Lab furniture and equipment purchasing - review technical standards x
Formal Training in construction and contracting practices (TC3 class or
CEE 595) x
Build and maintain databases in Access x
Independently prepare Power point presentations for project approval
from Sr Administration x

Facilities Project Managers Guide Page 77


PC1 PC2 PC3
Develop and maintain comprehensive section schedule x
Manage section work schedule by recommending adjustments to staffing
assignments x
Author PARS (Draft) x
Maintain section web site and Project web site x
Maintain List Serve x
Maintain Standards on web x
Manage commissioning process x
Perform Web Research for products and services x

Facilities Project Managers Guide Page 78


Sample Project Manager and Construction Manager and Project
Coordinator Duties and Responsibilities

Action PM CM PC

Manage change orders to agree upon the scope, cost, and


schedule impact of changed conditions. Prepares
X
independent CU cost estimates. Present
rational/justification for approval to the PM.
Approve Change Orders presented by the CM X
Coordinates and directs, as authorized by the contract,
Contractors during construction, acts as a single voice for
X
CU to the contractor. PM is the backup voice. Day-to-day
communication is between contractor and CM.
Work directly with User Groups on scope items and project
development issues. CM and PM negotiate the magnitude
of scope items the CM can and can't commit to during
X
construction (scope creep). PM and CM to negotiate the
level of cost change issues, either additive or deductive, that
need PM approval before the fact.
Communicates with and coordinates day-to-day issues with
the customer contact person, e.g. moves, information
exchange, parking, traffic, EHS, police, fire X X
department/alarm testing, crane schedules, inspections,
COs and TCOs, etc.
Reviews schedule for constructability. Monitors progress
against the schedule and keeps PM informed of deviations.
X X
Recommends actions to get back on schedule if needed.
Maintains schedule.
Reviews schedule evaluation and recommendationss from
CM. Advises CM as to correctness of schedule and
X X X
evaluation and to jointly develop actions for schedule
compliance corrections.

Monitor output of Contractors; feedback, site productivity, etc X X X

Coordinate efforts of EH&S (Job Site Safety). Work with


EHS to review the Safety Plan, enforces Safety Plan. X X
Schedules mock OSHA inspection with EHS.

Coordinates the construction efforts of CIT X


Coordinates the construction efforts of Cornell Line Crew
X
(cableing and hookups)
Oversee purchasing (ex: buying furniture) for owner Assist
supplied equipment identified in the PAR as an F&CS X X PM & CM
responsibility.
Coordinate arrival of CU purchased equipment. Arrange for
storage and transport to the site as required and requested
X X
by the PM. Responsible for inspection prior to turnover to
contractor. Responsible for installation contract if needed.

Facilities Project Managers Guide Page 79


Action PM CM PC

Responsible for installation contract if needed. X

Tracking construction costs, telecommunications costs, site


work and other costs that need to be tracked on an as X X
needed basis against budget costs
Responsible for controlling the use of contingency funds X X X
Issue tickets to the shops and monitor progress. Track ticket
costs and keep PM informed. Highlight deviations from X X
budget estimates.
Supervise the coordination of administrative activities related
to the project (i.e. accounts payable, job cost, status X X X
reports). CM to track reports as requested by PM.
Develop contracts and subcontracts as needed X X X
Supervise payments for project services, ensure that
X
expenses are monitored against project budgets.
Supervise and inspect field conditions and progress of work
against project schedule; coordinate and/or act as liaison
X X X
among participants to resolve problems or conflicts. Work
with PDC Shops in providing quality inspections
Who can say "NO" from a contractual perspective to the
X X
Contractors? The Contracting Officer
Run the "owners" weekly job meetings. Write the minutes.
PM and CM work together to develop the format of the X X
meetings.
Prepare space programs, building standards and other Assist
X Assist PM
project criteria to guide the work of outside A/E consultants. PM
Interview and advise on the selection of A/E consultants for Assist
X Assist PM
major design projects. PM
Negotiate service agreements with outside A/E consultants. Assist
X Assist PM
Prepare contracts. PM
Manage and direct the activities of A/E consultants. Review Assist
X Assist PM
contract compliance and authorize payments. PM
Monitor quality of workmanship and materials with the
assistance and support of the Design Consultant and Assist Assist
X
associated PDC Shops to maintain high standards. CM CM
Coordinate and schedule Shops inspections.

Create the CM and PC budget line dollar amount. X X X

Responsible for the project construction documents


X X X
review/written response process.
Assist Assist
Empowered to give field direction changes to the contractor X
CM CM

Facilities Project Managers Guide Page 80


Ensures frequent contact between the CM and the Contract
Officer. Computer status reports by CM and X X
Superintendent.

Establish criteria and measure Team performance X X X

Assist
Responsible for the monthly/trustee report X Assist PM
PM
Assist
Review and approve progress payments Approves Approves
PM & CM

Authorized to release retainage Approves Approves

X
Provides feedback on contractors/AE performance X (AE) X
(Contractor)
Assist
Speaks to the news media X X
PM & CM
Coordinate parking issues, such as coordinating contractor Assist
X X
permits and how does PDC arrange for laydown areas, etc. PM & CM
Who settles insurance issues? Risk Management and
Contract Officer
Who is empowered to settle claims? Director for Contracts
Administration

Recommend a scope or time increase during construction X X

Authority to make no cost/no time field related changes?


X X
PM & CM to discuss & negotiate
At least once a month review of the project with the PM, CM,
University Architect, University Engineer, Director of
X X
Construction Management, Director of Facilities and Director
for Contracts Administration
Bid Attendance. Who determines how money shortages will
be met, whether from contingency or elsewhere? Who
determines which alternates will be accepted? The PM has
X X
authority up to 25%; The Director of PDC has authority
greater than 25%. If continugencybring to attention of
Director of PDC and VP for Facilities
Authority to take risks with University resources? University
Architect, University Engineer, and Director of PDC
NOTE: The PM may delegrate authority for any of the above to the CM, and may ask that the CM
perform any of the above. In such cases, the PM remains responsible for those portions of the
project listed above.

Facilities Project Managers Guide Page 81


Sample Role Agreement
RESPONSIBILITY GUIDELINES FOR CONSTRUCTION

ACTION PM CM PM CM
PC PC

Manage change orders to agree upon the scope, cost, and X


schedule impact of changed conditions. Prepares
independent CU cost estimates. Presents
rational/justification for approval to the PM
Approve Change Orders presented by the CM X
Work directly with the User Groups on scope items and X X
project development issues. CM and PM negotiate the
magnitude of scope items the CM can and cannot commit
to during construction. PM and CM negotiate the level of
cost change issues, either additive or deductive that need
PM approval before the fact.
Communicates with and coordinates day-to-day issues with X
the customer contact person, e.g. moves, information
exchange, parking, traffic, EHS, police, fire department
alarm testing, crane schedules, inspections, COs and
TCOs
Reviews schedule for constructability. Monitors progress X
against the schedule and keeps PM informed of deviations.
Recommends actions to get back on schedule and
maintains schedule
Coordinates efforts of EH&S for job site safety. Work with X
EHS to review Safety Plan, enforces Safety Plan.
Schedules mock OSHA inspection with EHS.
Coordinates the construction effort of CIT X
Oversee purchasing for owner supplied equipment such as X
Cage Wash and racks.
Coordinate arrival of CU purchased equipment. Arrange for X
storage and transport to site as required and requested by
the PM. Responsible for inspection prior to turnover to
contractor. Responsible for installation contract if needed.
Tracking construction costs, telecommunication costs and X
other costs that need to be tracked against budget costs
Responsible for controlling the use of contingency funds X
Issue tickets to the shops and monitor progress. Track X X
ticket costs and keep PM informed. Highlight deviations
from budget estimates.
Supervise the coordination of administrative activities X X
related to the project (i.e. accounts payable, job cost, status
reports). CM to track reports as requested by PM.
Supervise and inspect field conditions and progress of work X X
against project schedule: coordinate and or act as liaison
among participants to resolve problems or conflicts
Run the owners weekly job meetings and write minutes. X X

Facilities Project Managers Guide Page 82


ACTION PM CM PM CM
PC PC

Manage and direct the activities of the A/E consultants. X


Review contract compliance and authorize payment
Monitor quality of workmanship and materials with the X
assistance of the Design Consultant and associated PDC
Shops to maintain high standards
Coordinate and schedule Shops inspections X X
Responsible for project construction documents X
review/written response process
Empowered to give field direction changes to contractor X
Responsible for monthly trustee report X
Review progress payments for approval and payment X
Approve progress payments X
Coordinate parking issues, site layout, staging areas X
Recommend scope or time increases during construction X X
Authority to make no cost/no time field related changes X
Coordinate for A/E meetings or attendance X
Responsible for Budget and cost compliance X
Responsible for the coordination and recommendations for X X
independent lab testing

Facilities Project Managers Guide Page 83


Sample Revised Par
This example of a Revised PAR is a request for additional money to cover an increase in the project's
scope of work.

PROJECT APPROVAL
REQUEST (PAR)
#…

BUILDING Q
ELECTRIC SERVICE
CONSTRUCTION
PAR ID #
Project Team

Project Manager: (name) PDC Shops Representative: (name)

Engineer-in-Charge: (name) Utilities Representative: (name)

Questions or comments should be directed to the


Facilities Services Project Manager:
(name)
Revised – (date)

Facilities Project Managers Guide Page 84


PROJECT APPROVAL REQUEST

==================================================================
This PAR requests an increase in the original authorized amount of $68K (date) to $95k for the
connection of the Office Q electric service to the Utility Department’s 13.2kV electric distribution
system. This revised PAR will allow for an increase in electric distribution capacity and reliability to
accommodate a planned facility to be located near the new office building.
==================================================================

1. Sponsoring Department: Utilities Department

2. Purpose and Need: The purpose of this project is to add distribution equipment to an existing medium
voltage circuit to allow for the connection of cables to feed the new office building. The need to provide
service to the office building comes from the customer’s desire for low electric rates and a high level of
reliability.

3. Scope of Work: The scope of work for this PAR includes the following:

• Install a three-way separable tap in manhole 112.

• Increase cable capacity from 200 amps to 400 amps.

• Increase duct capacity from two-way to three-way. This will allow for a loop circuit plus one spare
duct.

• The 13.2kV loop circuit will be completed only when plans for future construction are finalized.

4. Major Alternatives Considered and Why Rejected:

• Have NYSEG provide the electric service to the new office building. This was rejected due to the
customer desire for lower electric rates and higher reliability.

5. Proposed Schedule: The proposed schedule for this phase is as follows:

Approval Begin Complete


Construction Jun (year) Jul (year) Jan (year)

Facilities Project Managers Guide Page 85


6. Project Budget: This PAR requests an increase in the original authorized amount of $68K (date) to $95k
for the connection of the Office Q electric service to the Utility Department’s 13.2kV electric distribution
system. This revised PAR will allow for an increase in electric distribution capacity and reliability to
accommodate a planned facility to be located near the new office building. The proposed budget for this
PAR is as indicated below:

Previously
Category Authorized This Request To Date Budget
1. Construction $ 52,000 $ 25,000 $ 77,000
2. Planning & Design Fees - $ - $ -
3. Long-Lead Equipment - $ - $ -
4. Project Support (Shops) - $ - $ -
5. Project Management $ 5,000 $ 2,000 $ 7,000
6. CP Admin Fee $ 3,000 $ 3,000
7. Project Contingency $ 8,000 $ 8,000
TOTAL $ 68,000 $ 27,000 $ 95,000

7. The project will be funded as follows:

Amount Primary Account


Number funds will be
provided by

Funds provided by Unit / College $95,000 (account #)


Total project expenses ***see below $95,000
Name Phone NetID
Contact person in unit for funding (name)
issues/questions
Contact person to authorize transfer of (name)
funds.
***Total project expenses must equal the total project budget amount to date as listed on
this PAR.

8. Change in Maintenance and Operating Costs: Maintenance and Operating costs will slightly increase
when the project’s electric distribution equipment is turned over to Utilities.

9. Mode of Accomplishment: (name) will serve as Project Manager of this project. Construction will be
performed by the PDC Electric Shop on a Time & Material (T&M) basis.

Facilities Project Managers Guide Page 86


10. Municipal, State and Federal Discretionary Approvals: This project falls within the municipal jurisdiction
of the Town of Ithaca. There are no related discretionary issues and it is not subject to the State
Environmental Quality Review (SEQR) process.

11. Potential Issues:

• An outage to the (building name) will be required. A generator can be provided during the outage
time frame, if needed, to alleviate disruption to building occupants.

Facilities Project Managers Guide Page 87


12. Submitted by:

Project Manager Date


Planning, Design and Construction

Manager Date
Electric Purchasing & Energy Distribution

Endorsed by:

University Engineer Date


Planning, Design and Construction

Director Date
Planning, Design and Construction

Director Date
Utilities and Energy Management

Vice President Date


Facilities Services

Vice President Date


Planning and Budget

Executive Vice President Date


Finance and Administration

(date)
Date Prepared
dm

Facilities Project Managers Guide Page 88


Construction Contingencies Exposures
Budgeted
Amount or
Low High Subcontract(s)
Exposure Category Estimate Estimate Value Notes

Regulatory/Variance Code – We have


negotiated mitigations to gain the City
Building/Fire department support for the use of
flammable gases, flammable liquids in the $ $ $
basement and high toxics in BUILDING H 600,000 750,000 -
Contractor Parking – We will probably lose
the Hoy South lot. - 50,000 -

Building Skin – We expect to encounter


additional costs for integration with building
systems and field implementation issues. 750,000 1,250,000 12,403,845
PDC Shops Q/A Inspections – Missing or
incorrect items are typically found during
inspection, especially in the mechanical,
electrical, and plumbing systems. 500,000 600,000 -
MEP Coordination & Commissioning – The
coordination and commissioning process
uncover issues that need to be addressed
similar to the inspection process. 750,000 1,250,000 32,706,609
Furniture Purchase – The budget is very tight
for this item. 500,000 1,000,000 2,000,000
Utility Costs During Construction –
Contingency may be required to cover rising
costs. 500,000 750,000 1,050,000

NYSERDA – The project financial plan includes


$440K of rebates that may not be fully realized
or the program could be eliminated. 220,000 440,000 440,000
Plant Science Tunnel - Add’l underpinning,
interior stair change, custom elevator. 300,000 500,000 2,245,866
Space Customization – Construction inflation
is eroding our ability to accommodate specific
faculty. 250,000 750,000 -
Fit-out – Construction inflation is eroding our
ability to accommodate a longer schedule
and/or customization of labs. 800,000 1,000,000 4,231,110
$5,170,000 $ 8,340,000 $ 55,077,430
Current GMC Value $104,235,108

Value of Work in Place (25,000,000)


Balance To Be Accomplished $79,235,108
Contingency on balance $7,923,511

Facilities Project Managers Guide Page 89


GMC Systems
Description Source/Phase

GMC Cost of Work (Current Bidding Climate)

Foundations $ -
Structure
Exterior Enclosure
Roofing
Interior Architectural Development
Specialties & Millwork
Furnishings, Fixtures and Equipment
Vertical Circulation
Plumbing
Fire Protection
HVAC
Electrical
Controls
Sitework and Utilities
FitOut
$
SubTotal GMC Cost of Work
- A

Design/Estimating Contingency to 100% CD’s B $ - C=A*B


Escalation to Bid Date D - E=(A+C)*D
$
Total GMC Cost of Work
- F

GMC General Conditions


G (from GC
General Conditions Worksheet H=G/F $ - detail)
Builder’s Risk I - J=F*I
GL Insurance K - L=F*K
Performance Bond M - N=F*M
$
Total GMC General Conditions P=O/F
- O
$
GMC Internal Contingency Q
- R=(F+O)*Q
$
GMC Fee S
- T=(F+O+R)*S

Total GMC $ U=F+O+R+T

Facilities Project Managers Guide Page 90


-

GMC Cost of Work (Current Bidding Climate)

Section Description Source/Phase


$
Division 1 General Requirements -
Division 2 Existing Conditions
Division 3 Concrete
Division 4 Masonry
Division 5 Metals
Division 6 Wood & Plastics
Division 7 Thermal & Moisture
Division 8 Openings
Division 9 Finishes
Division 10 Specialties
Division 11 Equipment
Division 12 Furnishings
Division 13 Special Construction
Division 14 Conveying Equipment
Division 21 Fire Suppression
Division 22 Plumbing
Division 23 HVAC
Division 25 Integrated Automation
Division 26 Electrical
Division 27 Communications
Division 28 Electronic Safety and Security
Division 31 Earthwork
Division 32 Exterior Improvements
Division 33 Utilities
Division 34 Transportation
Division 35 Waterway and Marine Construction
Division 40 Process Integration
Division 41 Material Processing and Handling Equip.
Process Heating, Cooling & Drying
Division 42 Equip.
Division 43 Process gas and Liquid handling Equip.
Division 44 Pollution Control Equipment
Division 45 Industry-Specific Mfgr. Equipment
Division 48 Electrical Power Generation
$
SubTotal GMC Cost of Work A
-

Facilities Project Managers Guide Page 91


Design/Estimating Contingency to $
B C=A*B
100% CD’s -
Escalation to Bid Date D E=(A+C)*D
-
$
Total GMC Cost of Work F
-

GMC General Conditions


$ G (from GC
General Conditions Worksheet F - detail)

Builder’s Risk I - J=F*I

GL Insurance K L=F*K
-
Performance Bond M N=F*M
-
P
=
$
Total GMC General Conditions O
-
/
F O

$
GMC Internal Contingency Q R=(F+O)*Q
-

$
GMC Fee S T=(F+O+R)*S
-

$
Total GMC U=F+O+R+T
-

Facilities Project Managers Guide Page 92


GMC GC’s
Description Quantity Unit Unit Price Total

On Site Staff
$
Project Executive weeks -
Reimbursables weeks
Senior Project Manager weeks
Reimbursables weeks
Project Manager weeks
Reimbursables weeks
Superintendent weeks
Reimbursables weeks
Project Engineer weeks
Reimbursables weeks
Accountant/Cost Eng weeks
Reimbursables weeks
Project Safety Manager weeks
Reimbursables weeks
Administrative Assistant weeks
Reimbursables weeks
On Site Staff $
SubTotal -

Off Site Staff

$
Project Executive weeks -
Reimbursables weeks
Project Scheduler Mngr weeks
Reimbursables weeks
Project Accountant weeks
Reimbursables weeks
Computer Support weeks
Reimbursables weeks
Off Site Staff $
SubTotal -

Facilities Project Managers Guide Page 93


Field Office Expenses

$
Extra Plan Copies sets -
Office Supplies lump sum
Telephone, Data month
Office Trailers month
Trailer Utilities month
Trailer Furniture & Equipment lump sum
Field Office $
Expenses SubTotal -

Professional Expenses

$
Stormwater Plan lump sum -
Licensed Surveyor lump sum
Temporary Utilities
Temporary Electric lump sum
Temporary Water and
Sewer lump sum
Temporary Heating
Equipment lump sum
Fuel for Temporary
Heating lump sum
Professional $
Expenses SubTotal -

Construction Site

$
Fire / Safety lump sum -
Winter Protection lump sum
General Hoisting lump sum
Portable Restrooms month
Trash Removal lump sum
Protect Trees to
Remain lump sum
Pump Water lump sum
Snow Removal lump sum
Storage Trailer month
Temporary Fencing linear foot
Wash Glass square foot

Facilities Project Managers Guide Page 94


Protect Floors square foot
Final Cleaning lump sum
Maintain Traffic / Street
Clean lump sum
Trucking lump sum
Construction Site $
SubTotal -

Total GMC General $


Conditions -

NOTES: Reimbursable expenses include transportation, lodging, meals for the individual listed.

List all other general conditions expenses as applicable.

Facilities Project Managers Guide Page 95


Sample Budget Sheet
$90 Million Dollar Project
$
GSF: 193,400 NSF/GSF 90,000,000
$
NSF: 113,410 58.64% -
DESCRIPTION Project
Budget
CONSTRUCTI0N
Building Construction $ 62,000,000
Site Work (Utl, Parking, etc) 2,900,000
Furnishings, Tele/Data & Equipment 2,400,000
Munincipal Approvals (Bldg permit, Site Plan,
SEQR) 485,000
Construction Contingency 6,730,000

Total Construction Budget $74,515,000

PROFESSIONAL FEES
Design Fees $ 8,300,000 0.133871
Environmental & Safety Consultants (EIS) 1,560,000
Pre-construction Services 750,000
Professional Fees Contingency 475,000 $ 530,500.00
Total Professional Fees $11,085,000 0.148762

OTHER COSTS
Design Review & Project Supervision $ 500,000
Project, Enviro, Contract & Construction Mgmt 2,500,000
Commissioning & Q/A 500,000
General Expenses 500,000
Other Costs Contingency 400,000 $ 4,000,000

Total Other Costs $ 4,400,000 0.059049

CONTINGENCY
Construction $ 6,730,000
Professional Fees 475,000
Other Costs 400,000
Total Contingency $ 7,605,000 0.0845

Facilities Project Managers Guide Page 96


PROJECT BUDGET SUMMARY
CONSTRUCTION $ 74,515,000
PROFESSIONAL FEES 11,085,000
OTHER COSTS 4,400,000
PROJECT TOTAL $90,000,000

$'s/GSF Bldg Cost


$ 290 $ 56,086,073
$ 300 $ 58,020,075
$ 310 $ 59,954,078
$ 320 $ 61,888,080
$ 330 $ 63,822,083
$ 340 $ 65,756,085
$ 350 $ 67,690,088
$ 360 $ 69,624,090
$ 370 $ 71,558,093
$ 380 $ 73,492,095
$ 390 $ 75,426,098

Facilities Project Managers Guide Page 97


Sample Budget: Building Cost

Bldg GSF: 230,000 Bldg/Proj=70.9% 70.91%


$'s/GSF Bldg Cost Proj Cost
$ 290 $ 66,700,000 $ 94,058,354 53000000
300 69,000,000 97,301,745 290000
310 71,300,000 100,545,137 182.7586
320 73,600,000 103,788,528
Realistic
330 75,900,000 107,031,920 Target
340 78,200,000 110,275,311
350 80,500,000 113,518,703
360 82,800,000 116,762,094
370 85,100,000 120,005,486
380 87,400,000 123,248,877
$ 390 $ 89,700,000 $ 126,492,269

BUILDING H O&M Model


O&M Item Cost/GSF Annualized Cost
Bldg Care $ 1.50 $ 345,000

Routine & Preventive Maint 1.50 345,000

Planned Maint @1.5% of


construction 4.95 1,138,500

Utilities 7.50 1,725,000


$ $
15.45 3,553,500

Facilities Project Managers Guide Page 98


Sample Budget : $110 Million

#REF! Area GSF: 250,037


#REF! Area NSF: 131,767
ITEM DESCRIPTION Current REMARKS
Budget
01. CONSTRUCTI0N

BUILDING H,
tunnel to
$ PlantSci and
01.0101 GMP 74,816,000 landscape

Cost of Work (Trades-All) 64,000,000 54,400,000.00


74,816,000
GC/CoW =
10.00%, incl
GMP-GCs $6,400,000 Bldr's Risk Ins
299.22
Cntgcy='s 2.5%
Contractor Contingency 1,600,000 CoW

Fee ='s 4% of
GMP-Fee 2,816,000 CoW+GC

Athletics Compensation
01.0102 Projects 2,000,000

Asbestos
01.0103 Removal/Monitoring 250,000

Asbestos Removal 175,000

Asbestos Monitoring 75,000

01.0900 Municipal Approvals/Fees 474,400

Initial fee +10%


for extend
Building Permit 360,000 beyond 3yrs

Municipal Services-Site
Plan Review 54,400 $1/K of CoW

EIS Review Consultant to CEQR approval


City 60,000 facilitation

PDC/CIT Construction
01.1000 Support 590,000

PDC Shops Construction


Support 70,000

Facilities Project Managers Guide Page 99


CIT Construction Support 20,000

Q/A, Commissioning, T&B


(PDC Shops) 500,000

Uncommited

Total Construction $ 78,130,400 115.20

02. SITE WORK


ID Utilities & other civil
02.0100 UFPO/PDC Engr - Site Support $ 25,000 support
Utility costs until
02.0200 Utility Operations 500,000 occupancy
Stm, ChW & PotW - by CU
02.0300 CU Utilities Reloc & Ext 1,725,000 Utilities Dept
NYSEG, Bell Atlantic &
02.0400 NYSE&G Relocation 5,000 Time Warner
02.0500 Tel/TV/Computer Conduits
02.0600 Project Control 30,000 Detailed site surveys
Tree protection &
02.0700 Landscaping 50,000 relocation of donor trees
2% of project budget
02.0800 Parking Tax - 2% 2,200,000 $110M
02.0801 Replacement Parking 345,000 69 spaces @$5Kea
02.0900 Construction Site Preparation
02.1100 Misc Site Unfpreseen
Uncommited
$
Total Site Work 4,880,000

03. FURNISHINGS
$
03.0100 New Furniture Purchase 2,000,000
03.0600 Moving Costs 100,000
03.0700 Telephone & Data 350,000
03.0900 Janitorial Svcs & Supplies 50,000
03.1100 Plaques & Signs 75,000
03.1400 AV Equipment 300,000
Uncommited
$
Total Furnishings 2,875,000

04. PROFESSIONAL FEES


04.0100 A/E Fee (RMP) #REF!
04.0100 Feasibility Study #REF!

Facilities Project Managers Guide Page 100


04.0200 Schematic Design #REF!
04.0300 Design Development #REF!
04.0400 Construction Documents #REF!
04.0500 Add'l Due To EIS 100,000
04.0600 Construction Administration #REF!
04.0700 A/E Reimbursables #REF!
04.0800 Utility Design 195,000 Gryphon
04.0900 Geotechnical Engineer 100,000
CM Pre-Construction Fee/Direct
05.1500 Payment 600,000
CM Pre-Construction
05.1600 Reimbursables 200,000
04.0800 Special Consultants 150,000
04.0800 EIS Consultant 120,000
04.1000 Environmental Engineer 600,000

04.1100 Existing Conditions-Survey 20,000


04.1200 Asbestos Design Services 25,000
Space Inventory dwgs
04.1300 As-Built Drawings 37,506 @ $0.15/gsf
Uncommited
Total Professional Fees #REF!

05. OTHER COSTS


$ UA, Dir PDC & design
05.0100 PDC - Design 150,000 reviews
UE & PDC design
05.0200 PDC - Engr 200,000 reviews

05.0300 Contract/Financial Mgmt 100,000

05.0400 Proj Mgmt 825,000 5 yrs full time @$110/hr 825000

05.0400 Asst Proj Mgmt 414,000 5 yrs full time @$60K/yr 414000

05.0401 Proj Coord 412,500 5 yrs full time @$50/hr 412500

05.0402 Constr Mgmt 427,500 3 yrs full time @ $90/hr 427500

05.0402 Environmental Proj Mgmt 150,000

05.0500 Travel & Subsistence 150,000


05.0600 Reproduction & Printing

Facilities Project Managers Guide Page 101


25,000

05.0700 Photography 10,000

05.0800 Communications 10,000

05.0900 Publicity 30,000

05.1000 Testing Services 150,000

05.2000 Job Office Site 20,000


Uncommited
$
Total Other Costs 3,074,000

06. CONCEPTUAL COSTS


$ Actual costs - ASTI
06.0100 A/E Fees 38,000 Space Assessment &

06.0200 Other Costs 6,000 Preplanning Phase


$
Total Conceptual Costs 44,000

99. CONTINGENCY Target %


$
99.01 Construction 7,813,040 10%

99.02 Site Work 488,000 10%

99.03 Furnishings 287,500 10%


99.04 Professional Fees #REF! 2.50%

99.05 Other Costs 184,440 6%

99.06 Conceptual Costs - Completed


Total Contingency #REF!

PROJECT BUDGET
SUMMARY
$
01. CONSTRUCTION 78,130,400

02. SITE WORK 4,880,000

03. FURNISHINGS 2,875,000


04. PROFESSIONAL FEES #REF!

05. OTHER COSTS 3,074,000

Facilities Project Managers Guide Page 102


06. CONCEPTUAL COSTS 44,000
99. CONTINGENCY #REF! #REF!
PROJECT TOTAL #REF!

Facilities Project Managers Guide Page 103


Sample Budget: $154 vs. $140 Million

GMC @ $382
Area GSF: 251,057 247,978 vs $371/GSF
Area NSF: 132,135 130,189

ITEM DESCRIPTION $154M Budget $140M Budget REMARKS


01. CONSTRUCTI0N
BUILDING H, tunnel
to Building I and
01.0101 GMC $ 96,345,309 $ 92,000,000 landscape

Cost of Work (Trades-All) 78,834,992 75,440,000


01.0102 Athletics Compensation Projects 3,500,000 2,000,000
01.0103 Asbestos Removal/Monitoring 250,000 250,000

Asbestos Removal 175,000 175,000

Asbestos Monitoring 75,000 75,000


01.0900 Municipal Approvals/Fees 562,575 540,930

Building Permit 402,060 384,744 $6/K of adjusted CoW


$1.50/K of adjusted
Municipal Services-Site Plan Review 100,515 96,186 CoW
CEQR approval
EIS Review Consultant to City 60,000 60,000 facilitation
01.1000 PDC/CIT Construction Support 590,000 1,090,000

Construction Support 70,000 70,000

Construction Support 20,000 20,000

Q/A, Commissioning, T&B 500,000 1,000,000


Independent Testing
01.1100 Construction Testing Services 200,000 200,000 Agency
Total Construction $ 101,447,884 $ 96,080,930
ITEM DESCRIPTION $154M Budget $140M Budget REMARKS

02. SITE WORK


$ $ ID Utilities & other civil
02.0100 Engr - Site Support 25,000 25,000 support
Utility costs until
02.0200 Utility Operations 500,000 500,000 occupancy

Facilities Project Managers Guide Page 104


Stm, ChW & PotW -
02030.0 CU Utilities Reloc & Ext 500,000 2,000,000 by CU Utilities Dept
NYSEG, various
02.0400 Non-CU Utl Relocation 5,000 5,000 company names
02.0500 Connection to HiVolt 50,000 50,000

02.0600 Project Control 30,000 Detailed site surveys


Tree protection &
relocation of donor
02.0700 Landscaping 50,000 trees
02.0700 Job Office Site 20,000 20,000
69 spaces @$6Kea or
reduce and pave
02.0801 Replacement Parking 414,000 414,000 something
Total Site Work $ 1,594,000 $ 3,014,000
ITEM DESCRIPTION $154M Budget $140M Budget REMARKS
03. FURNISHINGS FF&E
$ $ ~$4K/person, expl
03.0100 New Furniture Purchase 2,000,000 2,000,000 recyclers
Growth Chambers &
$ $ other unique unshared
03.0300 Growth Chambers Equipment 6,000,000 3,210,000 equip.
$ $
03.0400 Vivarium Equipment 2,050,000 1,100,000 Mouse racks
03.0600 Moving Costs 100,000 100,000
Based on discussions
03.0700 Telephone & Data 750,000 750,000 w/ CIT Engr
Allowance based on
03.0800 Security System Equipment 350,000 350,000 previous
Allowance based on
03.0900 Janitorial Svcs & Supplies 50,000 50,000 previous
Allowance based on
03.1100 Plaques & Signs 75,000 75,000 previous
Allowance, need
03.1400 AV Equipment 500,000 500,000 program and design
Uncommited
Total Furnishings $ 11,875,000 $ 8,135,000
ITEM DESCRIPTION $154M Budget $140M Budget REMARKS

04. PROFESSIONAL FEES


04.0100 A/E Fee 17,325,000 14,226,019
$ $
04.0100 Feasibility Study 750,000 750,000
16.5% vs 13% of
04.0200 Schematic thru Construction Admin 15,675,000 11,960,000 GMC

Facilities Project Managers Guide Page 105


04.0300 Record Drawings 50,000
04.0400 Pre-guarantee Expiration Inspection 20,000
04.0500 Add'l Due To EIS 100,000
Excess Liability Insurance 446,019 3.73%
04.0700 A/E Reimbursables 900,000 900,000
Stm, ChW & PotW -
04.0800 Utility Design 50,000 100,000 by CU Utilities Dept
04.0900 Geotechnical Engineer 100,000 In A/E Fee
CM Pre-Construction Fee/Direct
05.1500 Payment 550,000 550,000 Per Agreement

05.1600 CM Pre-Construction Reimbursables 250,000 -


04.0800 Special Consultants 150,000 150,000 Safety, LEEDs, etc.
EIS Consultant to Faciltate Municipal
04.0800 Approvals 120,000 By Proj Team
EIS, wind tunnel,
04.1000 Environmental Engineer 600,000 400,000 chemical analysis
Interface with existing
04.1100 Existing Conditions-Survey 20,000 20,000 buildings
04.1200 Asbestos Design Services 25,000 25,000
Fly Overs, Visual
05.0700 Photographer 10,000 10,000 Simulations, etc.
Space Inventory &
Archiving dwgs @
04.1300 Archiving and Inventory Services 37,659 86,792 $0.35/gsf
Total Professional Fees $ 19,237,659 $ 15,567,811
ITEM DESCRIPTION $154M Budget $140M Budget REMARKS

05. OTHER COSTS


$ $
05.0100 Project Executives 150,000 150,000 Dir PDC, UA
UE, Proj Dir & PDC
05.0200 Engr 600,000 400,000 design reviews

05.0300 Contract/Financial Mgmt 100,000 100,000


$'s ToDate, 2 yrs full
time, 2 yrs half time
05.0400 Proj Mgmt 825,000 670,000 @$x/hr

05.0400 Prgm Mgmt 414,000 414,000 5 yrs full time @DPE

05.0400 Asst Proj Mgmt 594,000 475,200 4 yrs full time @$x/yr
2.5 yrs full time
05.0401 Construction Admin Asst 412,500 68,112 @$x/hr
05.0402 Constr Mgmt 2.5 yrs full time

Facilities Project Managers Guide Page 106


855,000 427,500 @$x/hr
Technical Review and
05.0402 Environmental Proj Mgmt 150,000 50,000 Site Inspections

05.0500 Travel & Subsistence 200,000 150,000

05.0600 Reproduction & Printing 25,000 25,000

05.0700 Photography 10,000 10,000

05.0800 Communications 10,000 10,000

05.0900 Publicity 30,000 30,000


Total Other Costs $ 4,375,500 $ 2,979,812
ITEM DESCRIPTION $154M Budget $140M Budget REMARKS

06. CONCEPTUAL COSTS Report


$ $ Actual costs - Space
06.0100 A/E Fees 34,584 34,584 Assessment &

06.0200 Other Costs 12,047 12,047 (company name)


$ $
Total Conceptual Costs 46,631 46,631
ITEM DESCRIPTION $154M Budget $140M Budget REMARKS

99. CONTINGENCY Target %


$ $
99.01 Construction 10,144,788 9,608,093 10%

99.02 Site Work 159,400 301,400 10%

99.03 Furnishings 1,187,500 813,500 10%

99.04 Professional Fees 961,883 778,391 5.00%

99.05 Other Costs 262,530 178,789 6%

99.06 Conceptual Costs - - Completed


Total Contingency $ 12,716,101 $ 11,680,172
ITEM DESCRIPTION $154M Budget $140M Budget REMARKS

PROJECT BUDGET SUMMARY


$ $
01. CONSTRUCTION 101,447,884 96,080,930

02. SITE WORK 1,594,000 3,014,000


03. FURNISHINGS

Facilities Project Managers Guide Page 107


11,875,000 8,135,000

04. PROFESSIONAL FEES 19,237,659 15,567,811

05. OTHER COSTS 4,375,500 2,979,812

06. CONCEPTUAL COSTS 46,631 46,631

99. CONTINGENCY 12,716,101 11,680,172 9.19% vs 9.29%


PROJECT SubTOTAL $ 151,292,775 $ 137,504,357
2% Parking Tax 3,025,855 2,750,087
PROJECT TOTAL 154,318,630 140,254,444

Facilities Project Managers Guide Page 108


Sample Project Plan
PROJECT PLAN
ROUTINE MAINTENANCE
COST STUDY
Project Team
Project Manager:
PDC Shops Representative:
Customer Representative:
IT Representative:
Facilities Customer Service Representative:

Questions or comments should be directed to the


Facilities Services Project Manager:
(name and phone)
(date)

Facilities Project Managers Guide Page 109


PROJECT PLAN

==================================================================
This Project Plan requests authorization for $75K to fund a Routine Maintenance Cost Study. Associated
PARs may be forthcoming, as the study is expected to provide recommendations requiring additional actions.
==================================================================
1. Sponsoring Department: Facilities Management

2. Purpose and Need:


The purpose of this project is to analyze and investigate routine maintenance cost data. This is needed to
guide planning efforts and assure cost effective maintenance is provided consistent with the University
mission and maintenance goals.
The Cornell University core endowed campus consists of approximately five million square feet of
classrooms, laboratories, offices, athletic facilities, recreation, and other specialty areas. In its mission to lead
excellence in education and research, the University facilities continuously evolve and age, with associated
changes in maintenance requirements. As a result, it has become increasingly difficult to forecast costs for
the routine maintenance portion of the maintenance budget. The maintenance allocation is budgeted in three
major categories: planned, routine (unplanned /breakdown), and preventive maintenance. Gross analysis of
these major budgetary components indicates the requirements for routine maintenance are growing at a
greater rate than the others. Routine Maintenance Costs have more than doubled over the last ten years,
going from approximately $1.5M to $3.5M annually. While it could be predicted that routine maintenance
spending would be up as a result of the aging physical plant and the growth in the planned maintenance
inventory, the exact correlation among these factors is unclear. Analysis of the maintenance costs data is
expected to provide useful guidance to correct the trend or verify appropriateness of the current maintenance
spending.

3. Scope of Work:
The scope of work for this Project Plan includes the following:
o • Preliminary investigation of routine maintenance cost information and
development of data plots to establish and verify routine maintenance cost trends in
terms of maintenance categories, and building usage types. Both macro level
(campus) and micro level (building) investigations will be completed.
o • Secondary investigation and analysis to suggest correlations between maintenance
costs and applicable building maintenance cost factors: building infrastructure,
building use/function, building system technology, building code, legal factors, as
well as, University policies and business practices.
o • Responsive managerial initiative(s) to guide routine maintenance activities for
continued improvement.
o • Review the efficacy of the routine maintenance work management process,
including work identified, work planning, work scheduling, work accomplishment,
documentation, analysis and performance.
4. Major Alternatives Considered and Why Rejected:

Facilities Project Managers Guide Page 110


 • Do nothing. This was rejected because unscheduled maintenance costs have increased
significantly in recent years and the investigation will provide necessary facilities
managerial information for continuous improvement.
 • Maintenance Management has considered funding a term position to achieve the goals of
this project but rejected the alternative; because, developing the expertise requires
extended time and a change of career path is likely to occur before significant results are
gleaned.

5. Proposed Schedule: The proposed schedule for the study phase is as follows:
Investigation – Phase I

Approval Begin Complete

Feb 04 Feb Jun 04


04

6. Project Budget: This Project Plan requests authorization for $75K to fund a Routine Maintenance Cost
Study. Associated PARs may be forthcoming, as the study is expected to provide recommendations requiring
additional actions. The proposed budget for this Project Plan is as indicated below:

Study Phase
Consultant Fees $
Project Management
Contract Admin
Miscellaneous
Contingency
Total $

7. The project will be funded as follows:


Primary Account
Number funds
will be provided
by

Amount
Funds provided by $
Unit / College
Contact person in
department to
authorize transfer of
funds

8. Change in Maintenance and Operating Costs:


The study is intended to provide insight into causes for trends in increased routine maintenance costs. The
results will be used to identify initiatives that assure effective use of maintenance resources.

9. Mode of Accomplishment:

Facilities Project Managers Guide Page 111


X Inc. will investigate trends of increasing routine maintenance costs to provide data plots and analytic tools
for the project team. The project team will assist X Inc with gaining access to necessary information,
interpret investigation results, and identify productive initiatives.

10. Potential Issues:


• The investigation will rely on data available through the job cost system. Skanska will be given access to
the maintenance cost data.
• Outreach to other university databases and facilities information may be required.

Facilities Project Managers Guide Page 112


12. Submitted by:

Project Manager Date


Planning, Design, and Construction

, Director Date
Maintenance Management
Endorsed by:

Director Date
Facilities Management

Director Date
Planning, Design, and Construction

Associate Vice President Date


Division of Facilities Services

Vice President Date


Planning and Budget

Vice President Date


Administration and CFO

Date Prepared

Facilities Project Managers Guide Page 113


Sample Feasibility Study

Executive Summary
The department of x intends to augment its research capabilities at (name of building) by installing two
growth chambers in Room B74. Two used “XYZ Company” growth chambers have been purchased and
reassembled in the East wing of (name of building). The chambers are approximately 15 years old and
when completed, they will be made operational as part of the departments purchase agreement. To
complete the growth chamber installation, they must be connected to an electric power source, a heat
rejection system, and additional requirements may become evident during design development.
To develop this report Persopn A met with Person B (name of company.), Person C (PDC HVAC/R
Shop), and Person D (PDC Mechanical Design) to review the conditions at the site. We reviewed the
building conditions to establish options for heat rejection Appling a diversity factor to full time
operations, we estimated life cycle energy costs for each of the heat rejection options. Identifying
categorical scope elements, we applied gross cost estimating methods and contacted XYZ Company for
budget cost information to develop a potential range of construction costs.
Infrastructure costs will be sensitive to the design details, selected scope of construction work, and the
existing conditions. In this case, electric power is readily available for connection to the growth
chambers; however, water based heat rejection sources are not readily available. A source for chilled
water requires approximately 500 ft of piping; there is no cooling tower based condenser water loop in
the building. A domestic water source is readily available; however, it is not a feasible long term means
for heat rejection. Based on these observations and associated economic analysis, air cooled condensing
is the most economically feasible means of rejecting heat from the growth chambers. (See Table 1)
Reviewing the decision to purchase new or used equipment, we note economic considerations. Two used
chambers cost $73K; two new units of equivalent capacity cost approximately $260K. Accommodative
infrastructure is necessary for both new and used equipment, as (name of building) is not fully equipped
to support growth chamber operations, the cost to provide the infrastructure is expected to be in a range
of $100K to $160K. Therefore, capital costs for the new vs. used option are in the ranges of $360K to
$420K and $170K to $230K, respectively. Energy requirements are not appreciably different for new
and used equipment. The manufacturer representative indicates the technological advances employed in
the new chambers primarily reduce manufacturing costs. Long term maintenance costs will also be
similar for the used and new equipment; driven by reliability requirements, a comprehensive
maintenance program is recommended for both new and used equipment. Nonetheless, there is a risk
that maintenance costs will be initially higher for the used equipment, but the decision to purchase new
or used equipment is not sensitive to this difference. Therefore, we conclude the used equipment will
have minimum life cycle costs.
In conclusion, modifying the existing equipment to achieve heat rejection via air cooled condensers
results in minimum life cycle costs. To implement this option, new air cooled condensers will be located
on the roof immediately above the growth chambers. XYZ Company will adapt new heat rejection
systems to the existing growth chambers, and install the new equipment in coordination with local
trades. A structural design will also be necessary to place the condensers on the roof, assure structural
integrity, and coordinate the required utility connections. Project cost to provide the necessary
modifications and infrastructure is estimated to be in the range of $100K to $160K.

Facilities Project Managers Guide Page 114


(NAME OF BUILDING)
B74 ENVIRONMENTAL GROWTH CHAMBER
FEASIBILITY STUDY

TABLE OF CONTENTS
Page
Executive Summary
Background
Condition Evaluation of the Growth Chambers
Heat Rejection Options
Economic Analysis
Alternatives for Condenser Heat Rejection
New vs. Used Growth Chamber Purchase
Schedule and Mode of Accomplishment
Conclusion
Appendix A – Life Cycle Cost of Differential Options
Option 1-Air cooled Condenser
Option 2 – Cooling Tower Water Cooled Condenser
Option 3 – Chilled Water Condenser Cooling
Option 4 – Domestic Water Cooling
Option 5 – Chilled Water Direct Cooling

Facilities Project Managers Guide Page 115


Background
The Department of X intends to augment its research capabilities at (name of building) by installing two
growth chambers and has purchased two used “XYZ Company” growth chambers. The growth
chambers have been reassembled at (name of building), but they must be connected to electric power
and a means for heat rejection. Electric power is readily available for
connection to the growth chambers; however, there are several heat rejection options having
significantly different first cost and life cycle costs.
The growth chambers have been situated in their present location since 2002 and the department is
anxious to put them into operation. The equipment had been purchased through a used equipment
broker; disassembly, storage, reassembly, and start-up services had been purchased with costs to date of
$73K. If purchased new, a budget estimate of the cost is $130K per chamber. The service provider is
contracted to return to the site to complete the work after utility connections have been
completed. In an effort to expedite placing the chambers into operation, Person B (name of company.),
provided a proposal to design a temporary domestic water system anticipating availability of chilled
water in the near future. Person B provided valuable input to establish the alternative options for long
term operations.
The original water-cooled heat rejection systems on the growth chambers had been connected to a
cooling tower condenser water system. A cooling tower is not available at the (name of building)
facility, so an alternate means for heat rejection is required.
There are several options for providing the necessary heat rejection systems, which have varying levels
of cost. (See Heat Rejection Options for a comprehensive explanation of the different system
characteristics and cost factors.)
Economic analysis indicates that modifying the existing equipment to achieve heat rejection via air
cooled condensers results in minimum life cycle costs, and the used equipment will also result in
minimum life cycle costs as opposed to purchasing new equipment.
Analysis indicates that completing the installation is feasible, and that converting the condensing portion
of the refrigeration system water cooled to air cooled will have minimum life cycle costs. Total project
costs associated with completing the installation are estimated to be in a range between $100K and
$160K.

Condition Evaluation of the Growth Chambers


The growth chambers are approximately 15 years old and appear to be in good condition capable of
providing precision control of environmental conditions for growing plants. A combination of Metal
Halide and High Pressure Sodium Lights are used to illuminate the chambers to what the manufacturer
describes as an optimal spectral blend. The level of lighting can be automatically varied with several
levels of lighting. Control is provided electronically by a programmable panel
that maintains the lighting level, temperature, humidity, and auxiliary functions such as automatic
watering and can be ramped or stepped up to 192 times per day.
The design temperature range is 4?C to 40? C with the lights off and 10?C to 40? C with the lights on. The
humidity control system is design to maintain 85%RH at 30C, by adding water via spray nozzle
humidification, but is not capable of active dehumidification. Temperature is controlled to within 0.5?C
and humidity is controlled to within 3%. The design ranges are generally considered to be the industry
standard for growth chambers.

Facilities Project Managers Guide Page 116


The X Departmentwill be using the chambers for plant growth experiments. The temperature range will
be from 10 C to 38 C as a min and max, with most experiments probably in the 24 to 28 range. The
humidity control will be in the 45 to 85 %RH range, with most experiments around 50-60%RH. These
conditions are all within the capabilities of the growth chambers being considered.
Reviewing the condition of the used equipment, the cabinet shells are solid and square, appearing to
have good insulation and panel seals. The doors open and close freely. There is some disarray, as most
of the ceiling panels have not been installed, and the interior of the units have not been cleaned. The
control cabinets remain in a standard condition and control wiring has been terminated at the I/O
devices. We understand the assembly contractor will be responsible for final testing of the control
components upon connecting the systems to the required utilities. Prior to disassembly, the units where
reported to be operational. Nonetheless, the equipment is used and increasing levels of maintenance will
be required to keep them operational. Spare parts from a third chamber may reduce the material costs;
however, labor associated with storing, handling, cataloging the spare parts will increase the operating
expenses.
The refrigeration systems will be critical elements in terms of system reliability. The system components
have been completely reassembled and the refrigerant piping is brazed together. As such, the
refrigeration systems have not been left open to the damaging affects of humidity and airborne dirt.
Upon placing the equipment into operation, the lighting and cooling systems will impart significant
loads on the electrical system, with associated cost. To provide close tolerance temperature control, the
refrigeration compressors will run continuously when the chambers are in operation contributing electric
load. The associated energy costs are expected to be in the range of $10K to $20K per year In terms of
sustained operability, XYZ Company remains in business providing standard replacement parts for the
systems and supporting versatile and reliable growth chamber operation. Additionally, the
campus contains many other XYZ Company chambers and there is a significant resource base for
maintenance, trouble shooting, and repair. As previously mentioned the refrigeration compressor run
continuously and periodic compressor replacement may be necessary. To assure reliable operations, a
preventive maintenance program is also outlined in the manufacturers operating instructions. It includes
daily system checks and periodic cleaning. Depending upon the reliability requirements and mode of
accomplishment, the maintenance costs could vary over a large ranger, but through an effective
maintenance strategy, they may be kept between $5K and $10K per year.
Heat Rejection Options
As previously noted, the purchased growth chambers require a heat rejection system. The existing
chambers were previously connected to a cooling tower rejection system. Cooling towers normally
complete the heat rejection system and recirculate bulk system water while a portion evaporates to reject
waste heat to the atmosphere. The associated cooling towers require ongoing maintenance to prevent
fouling from dissolved build-up from the make-up water. However, when combined to serve
a large quantity of individual units, they provide the most efficient refrigeration effect with the best
economy. In this case, the scale is not sufficiently large to support cooling tower operations.

Dry coolers are more commonly used where individual water cooled condensers units must reject heat
remotely and at a distance. They recirculate water mixed with antifreeze within a closed circuit having a
water-to-air finned heat exchanger and operate at relatively high temperatures, relying on sensible

Facilities Project Managers Guide Page 117


cooling. Spray systems can be incorporated to improve heat transfer with increased maintenance
requirements. They provide the advantage of rejecting heat remotely, trading off
lowered efficiency caused by higher operating temperature. In this case, we will not consider a dry
cooler because, heat rejection can be accomplished within a relatively short distance from the growth
chamber.
Air cooled condensing provides the most direct means of rejecting system heat. Refrigerant is
circulated directly through a remote air cooled heat exchanger. Sensible cooling requires relatively high
condensing temperatures, with lower operating efficiency and higher electrical energy costs for the
refrigeration compressor energy. Spray water systems can be added to improve efficiency, additional
maintenance and first cost requirements must be compared with base characteristics to
establish benefit. Relative to the base cooling tower case, the heat rejection costs are minimal and
include condenser fan energy and increased refrigeration compressor energy from reduced efficiency of
higher condensing temperatures. This is the most economically attractive option.
Chilled water condenser cooling is a form of cascaded cooling; the cooling medium is pumped to the
site at significant expense to except the heat of rejection from the local refrigeration system. The local
system contains a refrigeration compressor which operates at significant expense to refrigerate the
system. The cumulative costs of the two refrigeration systems are prohibitively expensive. Therefore the
option is not recommended for this application.
Domestic water condensing is cost prohibitive and wasteful of potable water resources. Termed once
through cooling, this method of condenser cooling results in utility cost to cover the potable water
treatment and transportation, as well as, the sanitary waste treatment costs. This method typically
provides emergency backup of cooling tower operations or for interim operations while a normal source
is being planned and implemented.
Direct Chilled Water Cooling is a feasible option that replaces the local refrigeration circuit entirely.
Implementing this option requires replacement of the refrigerated cooling coil in the growth chamber
with a new chilled water coil. Control system retrofit for the chamber temperature is also necessary.
These changes have significant expense and also have a significant impact on operational performance.
The cooling coil dewpoint temperature is limited by the chilled water supply
temperature, which also limits the ability to operate at lower temperatures and limits the ability to
control humidity. Frequently, these limits do not impact usefulness for research involving plant growth.
Economic Analysis
Alternatives for Condenser Heat Rejection
To provide an economic analysis of the alternatives for heat rejection at the condenser, we assume each
of the options has a similar level of cost for compressor energy consumption, maintenance, and
operation of the refrigeration systems, and develop differential analysis of the available heat rejection
media. The analysis indicates that conversion to air cooled condensers will result in minimum life cycle
costs. Net present values of five options including first cost and annual differential cost over a 20 year
analysis period are presented in the following table.

Facilities Project Managers Guide Page 118


Local Refrigeration Compressor

Air cooled Tower Water Chilled Domestic Direct Chilled


condenser Cooled Water Water Cooled Water Growth
Condenser Cooled Condenser Chamber
Condenser Cooling

First Cost 90,000 $120,000 $90,000 $50,000 $93,500


Annual $657 $6,728 $35,040 $37,142 $28,032
Condenser
Heat Rejection
Cost
NPV of Life $ $64,000 $81,000 $290,000 $306,000 $216,000
Cycle
Operating Cost
NPV of Total 154,000 $201,000 $380,000 $356,000 $310,000
Life Cycle
Costs

Table 1

Please note the analysis does not include the energy costs associated with lighting, humidifying, and
heating the chamber. Those costs may be higher by a factor closely related to the Energy Efficiency
Ratio of the refrigeration system. This analysis is intended to inform a decision regarding the most
economical means of rejecting chamber heat associated with the application described in this report.
New vs. Used Growth Chamber Purchase
Comparing life cycle costs of purchasing new or used equipment, the energy requirements to operate
new or used chambers are similar. The manufacturer indicates that the technology advances employed in
the new chambers primarily reduce manufacturing costs and have little if any impact on energy
consumption. For example, new lighting ballasts tend to be lighter in terms of weight of the materials
used to make them, as higher starting voltage can be generated with electronic components, but the
energy required to operate the lights is lower.

Growth Chamber with Air cooled condenser

Used New

First Cost $148,000 $380,000

Annual Condenser Heat Rejection Cost $657 $657

NPV of Life Cycle Heat Rejection Costs $64,000 $64,000

Annual differential Maintenance Cost $ 28,000 $0

NPV of Annual Differential $216,000 $0


Maintenance Costs

Annual Differential Chamber Energy $0 $0

Facilities Project Managers Guide Page 119


Costs

NPV of Annual Differential Chamber $0 $0


Energy Costs

NPV of Total Life Cycle Costs $428,000 $444,000

Table 2

The refrigeration system components have changed slightly, however, the main characteristic in term of
energy consumption has not changed; the refrigeration compressor runs continuously during operation.
As the system is used and the refrigeration system had been disassembled there is some risk of an early
failure which would cost approximately $10K to replace; failure usually results in acid byproducts in the
refrigeration circuit that must be removed. However, both the new and used systems require periodic
maintenance to assure early detection of refrigeration leaks, failed components, and clean heat transfer
surfaces. Here we would note that the used equipment first costs are significantly lower than new
equipment and a decision for used equipment purchase is not sensitive to maintenance costs. In this case
annual differential maintenance cost would have to be in excess of $28K to trigger a decision to buy new
equipment. See Table 2.

Schedule and Mode of Accomplishment


As the anticipated costs exceed $50K, the project will require authorization as a capital project through
the PAR system for design and construction. The feasibility study report will form the basis of a Design
and Construction PAR. Gaining authorization for design and construction will enable pre-purchase of
the condensing units which have a 60 to 90 day lead time.
Upon receiving PAR approval, design services will begin in order to occur in parallel with equipment
pre-purchase. The design documents will define the construction work for a fixed price estimate by PDC
shops.
After receiving a fixed price estimate within the construction budget, a 2 month construction period is
anticipated. Based on this approach, the project can be completed in approximately 6 months after
receiving departmental approval to proceed. This approach will also allow for an abbreviated design
effort with associate reduction in time requirements and costs. To validate the fixed price cost estimate,
we also recommend a parallel estimate; this will add approximately $2K to the project costs.
Alternatively, construction documents can be developed for a competitive bid. These documents would
have to be developed to a higher level of detail with specifications and general requirements for a
contract. The additional design and associated bid periods will add approximately 3 months to the
completion schedule.
Conclusion
In conclusion, providing a mean to reject the heat generated in the growth chambers presents the most
challenging obstacle to placing the growth chambers into operation. Several options were considered for
meeting the most challenging component of the project. On the basis of minimum life cycle costs, air
cooled condensing is a clear choice. Although this choice does not have the lowest first costs, the lowest
first cost alternative, domestic water cooling, has high water and sewerage utility costs and is not a
viable long term option. The other options have significantly higher costs than the air cooled option.

Facilities Project Managers Guide Page 120


To implement this option, new air cooled condensers will be located on the roof immediately above the
growth chambers. XYZ Company will provide proprietary engineered components for installation by
union tradesmen. A structural design will also be necessary to place the condensers on the roof, assure
structural integrity, and coordinate the required roof penetrations.
A new water supply and drainage system will also be provided for humidification and watering. The
refrigeration systems will contain sufficient refrigerant to require leak detection and alarm. At this early
stage, we also anticipate additional scope may be required to accommodate design details not considered
at this early stage, feasibility.
Total project costs associated with completing the installation, are estimated to be in a range between
$100K and $160K as indicated in the budget presented below. Additional breakdown of the anticipated
costs are presented in the appendices.

Budget Range

Construction $75,000 $120,000


Planning and Design 8,000 10,000
FFE 0
Project Support 2,000 3,000
Transportation 0
Project Management 10,000 15,000
Contingency 5,000 12,000
Total $100,000 $160,000

Table 3

Facilities Project Managers Guide Page 121


APPENDIX A – LIFE CYCLE COST OF DIFFERENTIAL OPTIONS
Option 1-Air cooled Condenser
Construction Costs low NPV high
General Conditions $5,000 $6,000

GC Roof penetrations and 5,000 10,000


stuctural dunnage

Mechanical 2,000 5,000

Electrical 20,000 25,000

Plumbing 10,000 20,000

Refrigeration

Refrigerant 3,000 5,000


Monitoring

Refrigeration 8,000 12,000

Condensing unit 22,000 22,000

Design Development 0 15,000


Allowance

$75,000 $75,000 $120,000

Used Equipment Purchase 73,000

Net Present Value of Life Cycle


Compressor Energy Costs(eer=5)
58,979
Annual Air cooled condenser hear rejection cost
Energy Consumption (electrical)
Cooling Capacity (tons) 40
Diversity 0.50
delta Temp (air) 10
condenser fan horse power 1
annual hours of operation 8,760
electric use rate (kw) 1
annual useage (kwh) 6,570
electric billing rate ($.10/kwh) $0.10
annual air cooled condenser heat rejection cost $657.00 $5,073
Net Present value $212,052
Refrigeration Compressor (Air Cooled)
Rated Amps 21
Voltage 480
Phase factor 1.73
KVA 17
EER @ Tc=115 5
full load heat rejection(tons) 25
full load refrigeration capacity (tons) 20
diversity 50%
Annual hours of operation 8760
Annual compressor energy consumption (kwh) 76,380
Electric power billing rate ($/kwh) $0.10
Annual compressor energy cost ($) 7,638
discount rate 0.05

Facilities Project Managers Guide Page 122


Net Present Value of Life Cycle Compressor Energy Costs(eer=5) 58,979

Option 2 – Cooling Tower Water Cooled Condenser


NPV
General Conditions $5,000.00
Mechanical 16,000
Electrical 23,000
Plumbing
Domestic water & sanitary connection 26,000
Roof 15,000
Cooling Tower Package 20,000
Design Development Allowance 15,000
$120,000.00 $120,000
Net Present Value of Life Cycle Compressor Energy Costs(eer=10) $29,489

Energy Consumption (condenser water)


Cooling Capacity (tons) 40
Diversity 0.50
delta Temp 8
average flow rate (gpm) 72
annual hours of operation 8,760
annual evaporation rate (gal) 33,692
blowdown 67,385
domestic water billing rate ($/gal) $0.0032
sanitary waste billing rate $0.0040
fan energy 1,000
water treatment 5,000
annual domestic water cost 323
annual sanitary waste cost 404
$6,727.75 $51,950
Net Present Value $201,439

Refrigeration Compressor (Chilled Water Cooled Condenser)


Rated Amps 21
Voltage 480
Phase factor 1.73
KVA 17
EER @ Tc=115 5
EER @ Tc=85 10
full load heat rejection(tons) 25
full load refrigeration capacity (tons) 20
diversity 50%
Annual hours of operation 8760
Annual compressor energy consumption (kwh) 38,190
Electric power billing rate ($/kwh) $0.10
Annual compressor energy cost ($) 3,819
discount rate 0.05
Net Present Value of Life Cycle Compressor Energy Costs(eer=10) 29,489

Facilities Project Managers Guide Page 123


Option 3 – Chilled Water Condenser Cooling
NPV
General Conditions $2,500
Mechanical 2,000
Electrical 14,000
Plumbing
Domestic water & sanitary connection 16,500
Isolation heat exchanger package 20,000
2" Chilled water line 500 ft. 20,000
Design Development Allowance 15,000
90,000 $90,000
Net Present Value of Life Cycle Compressor Energy Costs(eer=15) 19,660

Energy Consumption (chilled water)


Cooling Capacity (tons) 40
Diversity 50%
delta Temp 24
average flow rate (gpm) 20
annual hours of operation 8,760
annual flow rate 10, 512,000
annual useage (ton hours) 175200
chilled water billing rate ($/ton hour) $0.20
annual chilled water heat rejection cost $35,040 270,570
Net Present Value $380,229

Refrigeration Compressor (Chilled Water Cooled Condenser)


Rated Amps 21
Voltage 480
Phase factor 1.73
KVA 17
EER @ Tc=115 5
EER @ Tc=70 15
full load heat rejection(tons) 25
full load refrigeration capacity (tons) 20
diversity 50%
Annual hours of operation 8760
Annual compressor energy consumption (kwh) 25,460
Electric power billing rate ($/kwh) $0.10
Annual compressor energy cost ($) 2,546
discount rate 0.05
Net Present Value of Life Cycle Compressor Energy Costs(eer=15) 19,660

Facilities Project Managers Guide Page 124


Option 4 – Domestic Water Cooling
Option 4 - Domestic Water Cooling NPV
General Conditions $ 2,500
Mechanical 2,000
Electrical 14,000
Plumbing 16,500
Design Development Allowance 15,000
50,000 $50,000
Net Present Value of Life Cycle Compressor Energy Costs(eer=15) 19,660

Energy Consumption (domestic water)


Cooling Capacity (tons) 40
Diversity 0.50
delta Temp 48
average flow rate (gpm) 10
annual hours of operation 8,760
annual flow rate 5,256,000
domestic water billing rate ($/gal) $0.0031
Sewer water billing rate ($/gal) 0.004
annual domestic water cost $16,118
annual sanitary waste cost $21,024
annual domestic water heat rejection cost $37,142.40 286,804
Net Present Value $356,463

Facilities Project Managers Guide Page 125


Option 5 – Chilled Water Direct Cooling

Option 5 - Chilled Water Direct Cooling NPV


General Conditions $2,500
Mechanical 2,000
Electrical 14,000
Plumbing
Control Modifications 15,000
Evap Coil 25,000
2" Chilled water line 500 ft. 20,000
Design Development Annalysis 15,000
93,500 $93,500

Net present value of compressor energy costs 0


Energy Consumption (chilled water)
Cooling Capacity (tons) 40
Diversity 0.50
delta Temp 12
average flow rate (gpm) 40
annual hours of operation 8,760
annual flow rate 21,024,000
annual useage (ton hours) 140160
chilled water billing rate ($/ton hour) $0.20
annual chilled water heat rejection cost $28,032 216,456
Net Present Value $309,956

Facilities Project Managers Guide Page 126


Sample SD VE
Value Engineering Ideas by
Discipline Cost Impact Comments Yes Maybe No

Mechanical

1 Heat Recovery Options $ (60,000) Analyze in DD (60,000)


Eliminate 2 speeds
2 from Recirc clean room (150,000) Analyze in DD (150,000)
50% fixed sash @31
3 fume hoods (31,000) (31,000)
Eliminate 3rd floor
4 specialty labs Scrubber (245,000) (245,000)
ENSR advise, $
4a Downsize scrubber TBD
View current AHU #4 -
5 Eliminate Fan Coil (10,000) (10,000)
Reduce Floor Ht at 16' Verify
floors and raise archit/struct/ME
6 penthouse (200,000) P impact (200,000)
Acid Nuetralization
7 systems -Eliminate (30,000) (30,000)
Eliminate all
humidifyers for clean
8 room (20,000) (20,000)
Eliminate lab
humidifyers in
9 penthouse (50,000) (50,000)
Unify humidification /
10 dehudificate to 42% (65,000) (65,000)
Central HVAC in Reduce # of
11 Penthouse (20,000) AHU (20,000)
Reduce
Delete 18 meg ohm distribution, final
12 system (360,000) polish (360,000)
13 PVC Pipe for DI water (32,000) (32,000)
Galvanized steel
ductwork for solvent
14 exhaust (100,000) (100,000)
Consolidate all solvent
14a exhaust (20,000) add CNF to lab (20,000)
Revise non-potable
15 water system (21,000) at lab sinks (21,000)
16 Delete natural gas to (21,000) Utility corridor (21,000)

Facilities Project Managers Guide Page 127


Value Engineering Ideas by
Discipline Cost Impact Comments Yes Maybe No
labs distribution only
Utility corridor
17 Delete nitrogen to labs (5,000) distribution only (5,000)
Delete vacuum
sys/install exhaust explore
18 system (100,000) requirements (100,000)
Reduce Utl explore
19 compressed air (20,000) requirements (20,000)
Reuse Company E
AHU/Combine non lab
20 AHUs
$ $
SubTotal $ (1,560,000) SubTotal $ (979,000) (350,000) (231,000)
SubTotal w/
20% Markup (1,872,000) 20% Markup (1,174,800) (420,000) (277,200)
Realize 100% $
60% Realized $ (1,123,200) Yes, 35% Maybe $ (1,174,800) (147,000) $ -

Electrical

1 VFD Change $ (24,000) (24,000)


Locate generator in verify storage of
2 basement (40,000) fuel (40,000)
Downsize generator -
look at optional
3 standby (140,000) (140,000)
Relax CU spare
capacity standard -
4 generator (5,000) (5,000)
Lighting package consider fewest
5 reduction to $6/sqft (131,000) # of fixtures (131,000)
Review quantity of
6 power outlets (12,500) (12,500)
Reduce raceway
6a standards (13,000) (13,000)
7 Rough in changes (25,000) (25,000)
delete Central Clock
8 sys (31,000) (31,000)
Adjust to 500
9 TeleData drops -
Not construction
10 Delete Video/Confr (18,000) budget (18,000)
11 Delete Paging Sys (16,000) Not construction (16,000)

Facilities Project Managers Guide Page 128


Value Engineering Ideas by
Discipline Cost Impact Comments Yes Maybe No
budget
Lightning Protection
12 system (65,000) (65,000)
$ $
SubTotal $ (520,500) SubTotal $ (386,500) (129,000) (5,000)
SubTotal w/
20% Markup (624,600) 20% Markup (463,800) (154,800) (6,000)

Realize 100% $
60% Realized $ (374,760) Yes, 35% Maybe $ (463,800) (54,180) $ -

Structural
Reduce vibration at 3rd
1 floor $ (50,000) (50,000)
Relocated tunnel, infill
basement, move
2 elevator (50,000) Verify sheilding (50,000)
$
SubTotal $ (100,000) SubTotal $ - (100,000) $ -
SubTotal w/
20% Markup (120,000) 20% Markup - (120,000) -

Realize 100% $
50% Realized $ (60,000) Yes, 35% Maybe $ - (42,000) $ -
Architectural
Adjust slate flooring
1 pricing to thin set $ (120,000) (120,000)
Reduce stone walls in
2 atrium (200,000) Revise materials (200,000)
Add 40 fire shutters @
2a Atrium 80,000 80,000
Reduce railings in
3 atrium (30,000) (30,000)
Reduce stone on
4 exterior (50,000) (50,000)
Another freight
5 elevator scheme (50,000) (50,000)
Review casework
6 allowance (100,000) (100,000)
7 Delete Natural gas in Mechanical

8 Barrell vault roof (50,000) (50,000)

Facilities Project Managers Guide Page 129


Value Engineering Ideas by
Discipline Cost Impact Comments Yes Maybe No

Cleanroom Wall Verify rated


9 system (50,000) assembly needs (50,000)
Revise perimeter walls
9a of cleanroom (50,000) (50,000)
Reduce ClnRm ceiling
9b system (70,000) (70,000)
Reduce sound
10 treatment at atrium (50,000) (50,000)
Reduce carpet
11 allowance to $25/sqyd (20,000) (20,000)
Eliminate cleanroom
12 casework - TBD
Eliminate Elevator or
13 Stair (45,000) (45,000)
14 Reduce Curtainwall (50,000) (50,000)

15 Eliminate fritted glass (20,000) Increases HVAC (20,000)


Terrace deck material
change 80/20
16 crete/stone (150,000) (150,000)
Delete Window
17 washing equipment (25,000) (25,000)
Cleanroom floor
18 system (45,000) (45,000)
19 Interior Signage (40,000) (40,000)
20 Gas cabinets to fit out (220,000) (220,000)
$ $
SubTotal $ (1,355,000) SubTotal $ (895,000) (340,000) (120,000)
SubTotal w/
20% Markup (1,626,000) 20% Markup (1,074,000) (408,000) (144,000)

Realize 100% $
50% Realized $ (813,000) Yes, 35% Maybe $ (1,074,000) (142,800) $ -

Contract/Purchasing Strategy
Adjust
Escalation/Acceleratio
n Assumptions $ - TBD

Early Procurement $ (300,000) Big $ items (300,000)


Open Spec $ - TBD
SubTotal $ (300,000) SubTotal $ - $ $ -

Facilities Project Managers Guide Page 130


Value Engineering Ideas by
Discipline Cost Impact Comments Yes Maybe No
(300,000)
SubTotal w/
20% Markup (360,000) 20% Markup - (360,000) -

Realize 100% $
100% Realized $ (360,000) Yes, 35% Maybe $ - (126,000) $ -

Total Projected value $ $


of VE Ideas $ (2,730,960) $ (2,712,600) (511,980) -
Function/Program Options
Office Support
1 adjustment by Users (350,000) (350,000)
Adjust Program - swap Variable, but
2 space types - insufficient -
Reduce Dry Lab
3 covertiblity (250,000) (250,000)
Reduce Cleanroom;
Accommodate all
characterization,
Teaching Lab & CNF
4 Admin - TBD -
Reduce Cleanroom
5 Class to 10,000 - TBD -
No High Toxic Lab
6 capability - -
Change module size Shorten bldg by
7 from 11' to 10'-6" (665,100) 8' (665,100)

Shorten bldg by (1,490,320


8 Trim 1 module slice (1,490,320) 10'6"' )

Shorten bldg by (2,981,200


9 Trim 2 module slice (2,981,200) 21' )
Move Colloquium to Reduces other
10 Bldg footprint (250,000) program (250,000)
$ $
(2,405,420 (3,231,200
SubTotal $ (350,000) ) )

SubTotal w/ (2,886,504 (3,877,440


20% Markup 20% Markup (420,000) ) )
Total Projected
value of Realize 100% $ $
Function/Progra Yes & Maybe $ (420,000) (2,886,504 -

Facilities Project Managers Guide Page 131


Value Engineering Ideas by
Discipline Cost Impact Comments Yes Maybe No
m Ideas )
Building
Atrium Name W

64 70
72 90
4608 6300
73.14%
12 30
22 30
264 900
5.73% 14.29%
4344 5400
80.44%
Building
Building Name Name W

80 70
72 90
5760 6300
91.43%
Building
Building Y Name W

30 70
194 90
5820 6300
92.38%
Building
Total Atrium Name W

16188 6300
256.95%

Facilities Project Managers Guide Page 132


Sample SD Cost Strategy

Building Company A Company B

Project Elements Estimate Estimate Delta

New Bldg. $ 31,390,718 $ 32,623,000 $ (1,232,282)


Atrium Addition and
Modifications 5,995,745 6,530,000 (534,255)
―B‖ Hall 2,044,009 1,077,000 967,009
Sitework 2,639,180 2,607,000 32,180
$
(767,348
Total $ 42,069,652 $ 42,837,000 )

Buidling Company A Company C

Project Elements Estimate Estimate Delta


$
Landscape (Carried (347,000
Above) $ 953,000 $ 1,300,000 )

Gross Area

Type of Space Budget Estimate Delta

Mechanical Rooms 22,500 46,934 24,434


Service, Misc. 13,120 12516 (604)
1st Floor Clean Room ** 36,600 27301 (9,299)
2nd Floor Lab Space 30,000 26954 (3,046)
3rd Floor Lab Space 28,640 27589 (1,051)
Atrium 18,940 22142 3,202
Total Project GSF 149,800 163,436 13,636

Project Budget/SD Estimate $ 37,000,000 $ 42,069,652 $ 5,069,652

Cost/GSF $ 247.00 $ 257.41

Cost/GSF x GSF Delta $ (3,368,037) $ (3,510,009)

Facilities Project Managers Guide Page 133


How to get to 37 million? Goals
I. Reconcile A/BDifferences $ -
II. Reconcile A/C Differences $ -
Value Engineering Yes Maybe
III.
Mechanical $ 1,174,800 $ 147,000
Electrical 463,800 54,180
Architectural 1,074,000 142,800
Structural - 42,000
Contract/Purchasing - 126,000
$ $
SubTotal VE 2,712,600 511,980
Continued
Functional/Program Changes Yes Maybe
IV.
Reconfirm program $ 420,000 $ -
Quantity/function of lab - 300,000
SqFt reduction - 2,586,504
Redesign - -
Reduce Quality Not Explored Beyond VE
$ 420,000 $ 2,886,504

Yes Maybe

Net Total Cost Reductions $ 3,132,600 $ 3,398,484

V. Risk Items
Verify storage for
Rock events
Vibration Study Redundancy
Shoring/Underpinning EIS Study
Code Issues Gas Detection
Company E In Operation
Off peak work
vibration, sound
Const. Freight
elevator, travel
Temp Eclosure on west
elevation
I.E.S. study
Wind Tunnel results
Environmental
Casework in cleanroom

Facilities Project Managers Guide Page 134


Sample Design Development Value Engineering

Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

Foundations
1.01 6/12/2000 Delete stainless steel $ (10,000) Pending Need EMI
rebar at characterization. consultant
1.02 6/12/2000 Revise rock unit pricing. $ 226,000 Approved
1.03 6/12/2000 Revise bank shoring unit $ (21,000) Approved
pricing/quantity, look at
alternate wall forming
methods (in at $36/sf).

1.04 6/12/2000 included with 1.06 $ - N/A


1.05 6/12/2000 Raise basement floor $ (72,000) Approved
elevation 1' in mechanical
room and 2' in electrical
room
1.06 6/12/2000 Revise Caisson per new $ (25,000) Approved
sizing.
Floor and Roof Structures
3.01 6/12/2000 Change concrete frame Pending
unit prices.

3.02 6/12/2000 Delete fireproofing at $ - N/A included in


penthouse roof framing. revised design
and estimate
3.03 6/12/2000 Change roof framing from $ (85,000) Approved
15# to 10# per sf.
3.04 6/12/2000 Reduce concrete frame $ (33,000) Approved Per John H.
heating.
Enclosure
4.01 6/12/2000 Revise composite metal $ (80,000) Rejected
panels from gasketed
system to wet seal.
4.02 6/12/2000 Lower atrium curtain wall $ (75,000) Pending ABC to review
elevation heights 5'-0" +/-. design
Eliminate/minimize implications
clerestory windows at
Building Y terrace (reduce
by 5'-0" +/-)
4.04 6/12/2000 Delete storefront on north $ (18,000) Rejected Bob thinks we
side of Building Y; existing are light in the
to remain estimate

Facilities Project Managers Guide Page 135


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

Roofing and Waterproofing


5.01 6/12/2000 Eliminate rectangular $ (16,000) Rejected
skylights at Atrium.
5.02 6/12/2000 Eliminate skylight at $ (7,500) Rejected
Atrium stair
5.03 6/12/2000 Weathered Terne Coated $ (88,000) Rejected Cannot be
Steel to painted metal on taken with
barrel vault roof. 5.03a
5.03a 6/12/2000 Terne Coated Steel to $ (105,000) Rejected Cannot be
Sarnafil profile taken with 5.03
Interior Partitions
6.01 6/12/2000 Reduce cleanroom ceiling $ (18,000) Approved Cannot be
height to 9'. (from 10') taken with
17.17
6.02 6/12/2000 Use hollow metal frames $ (40,000) Approved
in lieu of aluminum.
6.03 6/12/2000 Change all interior doors $ (4,500) Rejected
from 9'-0" to 8'-0".
6.03a 6/12/2000 Change all interior doors $ (4,500) Rejected
from 8' to 7'
6.04 6/12/2000 Review extent of $ - N/A
sidelights/transoms at
interior doors.
6.05 6/12/2000 Change interior doors $ (10,000) Rejected Possible Bid
from solid core maple Alternate
finish to more economical
species - based on 3x9'
doors
6.05a 6/12/2000 Change interior woodwork $ (20,000) Rejected Possible Bid
from maple to more Alternate
economical species

Facilities Project Managers Guide Page 136


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

6.06 6/12/2000 Eliminate roll down fire $ (6,000) Pending 1450 sqft of
shutters and glass acoustical
guardrails at all openings treatment
(1st, 2nd, 3rd floors). needed.
Replace with
tempered/laminated glass
windows in gasketed
frames with minimum two
deluge sprinklers per
opening (to maintain 2
hour separation required
by New York State
Building Code.) include
bridge connections in this
change
6.07 6/12/2000 Included in 6.06 $ - N/A
6.08 6/12/2000 Reduce number of doors $ (8,000) Approved
in clean room or change
size or type.
6.09 6/12/2000 Replace automatic sliding $ (19,000) Approved
doors in clean room with
single swinging doors.
6.10 6/12/2000 Reduce size of doors $ (11,000) Approved research finish
upstairs to serv. Corridor- hardware count
width double doors to on these leaves
single doors.
6.11 6/12/2000 Replace ZB walls with Z $ (39,000) Approved

6.11a 6/13/2000 Replace some clean room $ (11,000) Rejected


walls with standard stud
walls for "fixed" rooms

6.12 6/12/2000 Revise F13 Partition @ $ (30,000) Approved


clean room to Epoxy finish
Floor, Wall and Ceiling Finishes
7.01 6/12/2000 Change slate paving to $ - N/A included in
slate tile, thin set revised design
application. (Investigate & estimate
fixed tile sizes, pattern
options, and domestic
stone supplier.)

Facilities Project Managers Guide Page 137


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

7.02 6/12/2000 Change stone tile to $ (75,000) Rejected Potential to re-


patterned stained price slate tile in
concrete for Atrium floor. lieu of stamped
concrete
7.03 6/12/2000 Change stone tile walls to $ (29,000) Rejected
painted gyp. Board.
7.04 6/12/2000 At Atrium ceiling, revise $ (27,000) Rejected
ceiling design to utilize
suspended T-bar/perf.
Metal lay-in panel
construction with
acoustical material
behind.
7.05 6/12/2000 Revise Atrium ceiling to $ (41,000) Rejected
use Tectum type
acoustical panel instead
of perf. Metal.
7.06 6/12/2000 Eliminate acoustical fabric $ (37,000) Rejected
wrapped paneling
Compare
performance/cost to glue
down fabric installation
7.07 6/12/2000 Revise carpet cost from $ (13,000) Approved
$35/yd to $28/yd. Verify
carpet as direct glue
installation, no pad.
(Cannot be taken with
7.08)
7.08 6/12/2000 Investigate using poly- $ - N/A see 7.07
olefin type carpet and
reducing carpet cost to
$15-$20/yd.) (Cannot be
taken with 7.07)
7.09 6/12/2000 Revise cleanroom $ - N/A see 6.11 and
materials 6.12
7.10 6/12/2000 Revise cleanroom layout $ (240,000) Rejected
7.11 6/12/2000 Remove ceiling grid over $ - N/A included with
service area in clean room 7.13
7.12 6/12/2000 Change floor in mos $ - N/A included with
service area (end of clean 7.13
room) to vct controls?

7.13 6/12/2000 Reduce ceiling grid at $ (18,000) Approved


clean room - eliminate
furnace back area - use

Facilities Project Managers Guide Page 138


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


VCT in lieu of static
flooring

Function Equipment and Specialties


8.01 6/12/2000 Eliminate all racks, etc. in $ (52,850) Approved
chem storage area.
Owner will fit out as
needed.
8.02 6/12/2000 Replace walk-in hoods in $ (37,000) Approved
chem waste area with
snorkels.
8.03 6/12/2000 Reduce/eliminate $ - N/A with 8.05
overhead service carriers.
8.04 6/12/2000 Reduce out fitting of toxic $ - N/A with 8.05
gas labs until occupants
better known.
8.05 6/12/2000 Eliminate some lab $ (415,851) Approved Target
specialties items. $1,000,000 for
lab equipment -
Lynn to review
Kewaunee
estimate
8.06 6/12/2000 Reduce Lab Furniture $ - N/A with 8.05
8.07 6/12/2000 Delete Clean Room $ - N/A with 8.05
Equipment added at DD
8.08 6/12/2000 Reduce Signage $ (30,000) Approved
allowance to $30,000
Vertical Transportation and Stairs
9.01 6/12/2000 Provide standard cab $ (24,000) Approved go to the
finishes in elevators. standard
stainless cab
interior
9.02 6/12/2000 Stair railings to be $ - N/A estimate not
standard SS mesh based on
product in painted metal custom design
frame with SS grab rails
9.03 6/12/2000 Delete translucent glass $ (30,000) Approved Go to standard
risers riser
9.04 6/12/2000 Relocate elevator at $ - N/A included with
Building Y south. 9.11

Facilities Project Managers Guide Page 139


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

9.05 6/12/2000 Change Stair #1 and #2 to $ - N/A


rectangular switchback
stairs (not squares).
9.06 6/12/2000 Eliminate star #3 at South $ - N/A impacted by
Building Y. Retain 9.11
exterior fire escape for
egress from 2nd floor.
9.07 6/12/2000 Remove dumbwaiters $ (24,000) Rejected
completely, transport
chemicals in service
elevators.
9.08 6/12/2000 Change guardrails from $ - N/A included with
stainless steel/mesh to all 9.02
painted metal.
9.09 6/12/2000 Review changing $ - N/A included with
handrails from stainless 9.02
steel to wood.
9.10 6/12/2000 Alternative to the $ - N/A not allowed by
handicap elevator - wheel code
chair lift
9.11 6/12/2000 Redesign HRM delivery $ (430,000) Approved
systems. Delete Stair 12,
delete elevator 1, Elevator
2 becomes (elev 1) freight
& passenger and adds
basement HRM corridor
stop. Elevator 3 becomes
hydraulic three stop (
basement MER, HRM and
cleanroom/service). Add
6x6 hatch in penthouse
deck with chain fall to 3rd
floor (service corridor @
south?). South Building Y
stair (#3) extended to
785'6". Move dumbwaiter
to that area, use
Company E basement for
HRM route & storage.
Ventilate storage w/HRM,
new lights in storage.
9.12 6/12/2000 Change Traction Freight $ - N/A included with
elevator to hydraulic 9.11
Subtotal Architectural $ Approved
(1,225,701)

$ (91,000) Pending

Facilities Project Managers Guide Page 140


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

$ (837,500) Rejected
$ (2,154,201) Total
10.01 6/12/2000 Delete non-potable water $ (14,000) Approved Cannot be
system. taken with
10.05
10.02 6/12/2000 Delete laboratory suction $ (94,000) Rejected Reconsider
vacuum system. distribution to
2nd & 3rd floors
Watch
acceptance of
10.06
10.03 6/12/2000 Eliminate roof Rejected
drains/overflows. Provide
scuppers/gutters at
exterior.
10.04 6/12/2000 Add insulation for non $ 39,000 Approved
potable domestic water
10.05 6/12/2000 Delete non potable hot $ (114,000) Rejected Cannot be
water system and taken with
associated 10.04 10.01
insulation
10.06 6/13/2000 Delete gases distribution $ (55,000) Rejected Reduce credit
in corridors, risers only by 8,000 if
10.02 is
accepted
10.07 6/13/2000 Bring gases into building Rejected
only
10.08 6/13/2000 Use copper materials in $ (5,000) Rejected
lieu of stainless for
nitrogen
Subtotal Plumbing $ 25,000 Approved
$ - Pending
$ (268,000) Rejected
$ (243,000) Total
HVAC
11.01 6/12/2000 Reduce HEPA's (increase $ (39,500) Rejected
air flow from 62 fpm to 80
fpm), changes coverage
from 30% to 25%
11.02 6/12/2000 Reduce process cooling $ (17,000) Approved
from 400 to 200 gpm.

Facilities Project Managers Guide Page 141


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

11.03 6/12/2000 Reduce chilled water $ - Rejected


system gpm.
11.04 6/12/2000 Reduce heating water $ - Rejected
system gpm.
11.05 6/12/2000 Delete temporary exhaust $ (121,000) Rejected
system for canopies.
11.06 6/12/2000 Fan filter units at clean $ (416,000) Rejected Mario would
room. prefer 11.26
11.06a 6/20/2000 Fan Filters at Corridors Pending Explore at CD's
11.06b 6/20/2000 In duct HEPAs at class Pending Explore at CD's
10,000 space
11.07 6/12/2000 Delete heat recovery unit $ (331,000) Approved need this with
along with all heat constant
recovery piping, pumps, volume
controls, etc.
11.08 6/12/2000 Change all fume hoods to Pending
constant volume half
sash. Use a non ddc
phoenix valve heresite
coated with sound
attenuator for each fume
hood or grouped snorkels.
The labs will remain vav
with ddc tracking supply
and exhaust terminal units
with Building Z Control
controllers mounted on
teh terminal units.
Therefore, you eliminate
the Anemostat lab control
system. To save further
energy consider using the
Air Sentry fume hood by
Flow Safe Inc which
requires 330 to 500 cfm
for a 18"-21" sash
opening at 40' per minute
velocity compared to 900
cfm at 100 fpm for the
standard hood.
11.08a 6/20/2000 Low Flow Fume Hood Pending Cornell To Give
Guidence
11.09 6/12/2000 Delete the return air $ - Rejected Already
terminal units in the office included in
areas. Use flow estimate
measuring station in the

Facilities Project Managers Guide Page 142


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


main return duct to track
the supply fan.

11.10 6/12/2000 Verify that there are no N/A


control valves at the
radiant panels.. The
radiant panel system is a
constant flow variable
temperature system. A
main control valve
controls the loop
temperature based on
outdoor air temperature.
11.11 6/12/2000 Delete scrubber. Leave $ - Rejected Already
space. included in
estimate
11.12 6/12/2000 Delete clean steam $ (36,000) Rejected
generator for clean room.
11.13 6/12/2000 Eliminate some back up Rejected
systems/pumps.
11.13a 6/19/2000 Eliminate Chilled Water $ (28,000) Rejected
stand-by pump chp-2
11.13b 6/19/2000 Eliminate process chilled $ (9,000) Rejected
water stand-by pump
PCHP-2
11.13c 6/19/2000 Eliminate glycol hot water $ (10,000) Rejected
stand-by pump gwp-2
11.13d 6/19/2000 Eliminate hot water stand $ (10,000) Rejected
by pump HWP-2
11.13e 6/19/2000 Eliminate perimeter heat $ (6,000) Rejected
stand-by pump HWP-4
11.14 6/12/2000 Fan filters instead of fans $ - N/A void
and filters.
11.15 6/12/2000 Reduce di capacity. N/A
11.16 6/12/2000 Reduce air changes in N/A
upstairs labs.
11.17 6/12/2000 Reuse some Company E Pending
lab Exh. Lam. Flow
benches.
11.18 6/12/2000 Eliminate natural gas on $ (4,000) Approved (name) to re-
3rd floor. (Still costing price
Cornell at least $16,000.)

Facilities Project Managers Guide Page 143


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

11.21 6/12/2000 Utilize steam preheat in $ (100,000) Rejected


lieu of hot water with
glycol
11.23 6/12/2000 Replace desiccant drier $ 100,000 Rejected
with low temp chiller and
coil
11.24 6/12/2000 Delete clean room $ (37,000) Approved
instrument air loop
11.25 6/13/2000 Delete stack sound $ (55,000) Approved
attenuators
11.26 6/13/2000 Adjustment of re- $ (391,500) Approved
circulating supply duct to
units
11.27 6/13/2000 Provide premanufactured Pending
clean room system
(modular tunnel)
11.28 6/13/2000 Reduce recirculation air Rejected
by 10%
Subtotal HVAC $ (835,500) Approved
$ - Pending
$ (675,500) Rejected
$ (1,511,000) Total
Electrical
12.01 6/12/2000 Remove cable $ - N/A refer to 12.07
tray/isoduct language
from office spaces and
distribute majority of
voice/data at the
perimeter walls.
Distribute to centers of
rooms via fixed drop
(poles or fixed
architectural walls).
12.02 6/12/2000 Rotate lights parallel to $ (16,000) Approved
lab benches and maintain
75 fc at bench height.

12.03 6/12/2000 Select cheaper fixture for $ (87,000) Approved


Labs and provide
alternate
selections/manufacturers.-
stay with parallel scheme

Facilities Project Managers Guide Page 144


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

12.04 6/12/2000 Provide fixture alternates $ (90,000) Approved


for Offices at $6/sf.
12.05 6/12/2000 Reduce cost of Atrium $ (30,000) Approved
lighting by 10% without
affecting the design (does
not include light tube).
12.06 6/12/2000 Eliminate draw-out $ (36,000) Approved Bob review by
construction for feeder maintenance
circuit breakers on the
main switchboard. Main
draw-outs for the main
and tie circuit breakers.
This will require that one
side of the main
switchboard be shut down
to pull periodic
maintenance of feeder
circuit breakers.
12.07 6/12/2000 Provide a system of fixed $ (55,000) Pending Pending
power poles in lieu of redesign
linear flexibility Quantities
and layout to be
determined.
12.08 6/12/2000 Fully develop the design $ - N/A Pending overall
of the cleanroom to design
determine the actual
power requirements. At
this time the requirements
are for an allowance of 30
watts/sf. This needs to be
confirmed. Detailed
equipment lists will be
required.
12.09 6/12/2000 Delete door access and $ (30,000) Rejected
card reader system $
remaining in construction
cost. Limit security and
CCTV work to power and
raceways only. System
equipment and wiring to
be provided by the Owner.
12.10 6/12/2000 Relocate the generator to $ (37,000) Rejected
the roof of Building X to
reduce the length of the
emergency feeder.

Facilities Project Managers Guide Page 145


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

12.11 6/12/2000 Reduce emergency $ (135,000) Approved


generator capacity - life
safety only- 1250 kw to
900 kw
12.12 6/12/2000 Reduce 110v outlets by $ (29,000) Rejected
25%
12.13 6/12/2000 Reduce isoduct by 25%- $ (11,000) Rejected
shorter sections along
each wall.
12.14 6/12/2000 Lighting in labs - drop in $ (58,000) Pending additive with
fixtures vs alternate 12.03
pendant fixtures parallel to
benches
12.14a 6/12/2000 Lighting in offices - drop in $ (187,000) Pending Additive with
fixtures not pendant. 12.04
12.15 6/12/2000 Wireless as a solution to $ - N/A
the open office tele/data
problem.
12.16 6/12/2000 Alternative wire $ - N/A see 12.07
distribution in flex-office
space.
12.17 6/13/2000 Review & Adjust Clean $ (30,000) Approved
Room Fixture Counts &
Pricing
12.18 6/13/2000 Delete Lightning $ (30,000) Pending Bob get
Protection comments from
FMI
12.19 6/20/2000 Additional Smoke $ 100,000 Approved Mike to confirm
Detectors at all rooms that qtys and budget
are enclosed

Subtotal Electrical $ (324,000) Approved


$ (330,000) Pending
$ (107,000) Rejected
$ (761,000) Total
Sitework
15.01 6/12/2000 Direct burial of utilities in $ (55,000) Pending Additional
lieu of cast in place saving to 16.01
- precast utility
tunnel.
15.02 6/12/2000 Remove terrace walkway $ - Rejected
(no wall, simple path.

Facilities Project Managers Guide Page 146


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

15.03 6/12/2000 Make terrace walk $ (4,000) Rejected


narrower (12 feet instead
of 16 feet).
15.04 6/12/2000 Revise pricing cover at $ (35,000) Approved
Loading Dock area.
15.04a 6/12/2000 Remove cover on Loading $ (60,000) Rejected
Dock area.
15.05 6/12/2000 Remove enclosure walls $ (14,000) Rejected
@ service area

15.06 6/12/2000 Move X north entrance to $ (66,000) Pending


Quad budget
15.07 6/12/2000 Delete limestone and $ (45,000) Rejected
llenroc handrail at west
side terrace from
mechanical shaft south to
ahndicap access (137 lf)
and associated concrete
footing/retaining wall
16.01 6/12/2000 Precast south utility tunnel $ (170,000) Approved Cannot accept
in lieu of cast in place with 15.01
16.02 6/12/2000 Sleeves versus concrete $ - N/A see 15.01
for utility tunnel.
Subtotal Site $ (205,000) Approved
$ (121,000) Pending
$ (123,000) Rejected
$ (449,000) Total
General Conditions and Scope
17.01 6/12/2000 Refine tower crane $ (60,000) Approved adjust duration
duration/size/cost, move to 14 months
to GC's.
17.02 6/12/2000 Adjust escalation. $ - N/A No value in
current market

17.03 6/12/2000 Take 6'-0" off south end of $ (30,000) Rejected


Building X (approximately
1,000 gsf).

17.04 6/12/2000 Eliminate $ (27,000) Rejected


bridge/interaction space at
Building Y Atrium on 3rd
floor (+/- 500 sf).

Facilities Project Managers Guide Page 147


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

17.05 6/12/2000 Eliminate bridge $ (35,000) Rejected


connection between
Building Y and at the 3rd
floor level.

17.06 6/12/2000 Eliminate bridge $ (35,000) Rejected


connection between
Building Y and at 2nd
level
17.07 6/12/2000 Build Chem. Tunnel in $ - N/A included with
Phase 2, use Stair #3 to 9.11
acccess/egress from
basement level. Use
Elevator #4 as temporary
service elevator and serve
Building X through west
entry until completion of
tunnel in Phase 2
(demolition of Company
E) is complete.
17.08 6/12/2000 Move service elevator and $ - N/A included in 9.11
dumbwaiters outside of
Building Y footprint (into
Atrium).
17.09 6/12/2000 Delay renovation to $ - N/A Sacred -
Building Y 1st floor. Use Program
chemical storage trailers compromise
at exterior. Perform
renovation as part of
donor or grant proposal
build out (by future
occupants, companies,
etc.)
17.10 6/12/2000 Delete owner/architect $ (13,000) Approved Target some
trailer rental/setup/utilities. savings from
$26,500;
perhaps utilize
larger
contractor
trailer
17.11 6/12/2000 Reduce Kitchen/vending $ - N/A
17.12 6/12/2000 Abandon the flex office $ - N/A
concept.

Facilities Project Managers Guide Page 148


Compnay A Building X
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University June 21, 2000

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS

17.13 6/12/2000 Reduce basement size by $ - N/A included in


using some of Company E other items
lab basement for
incidental mechanical
items.
17.14 6/12/2000 Basement smaller, $ - N/A too late in
penthouse bigger to cut design
down on rock excavation.

17.15 6/12/2000 Shorten time frame by Pending


early occupation of clean
room.
General Conditions and Scope Summary $ (73,000) Approved
$ - Pending
$ (127,000) Rejected

$ (200,000) Total
W/ 15 %
markup
Total Summary $ (2,638,201) Approved
(3,033,931)
$ (542,000) Pending
(623,300)
$ (2,138,000) Rejected
(2,458,700)
$ (5,318,201) Total
(6,115,931)

DD Estimate $43,341,000
Summary
Budget $39,000,000
Delta $4,341,000

Approved VE W/ markup ($3,033,931)

Current Delta $1,307,069

Facilities Project Managers Guide Page 149


Sample Construction Development 50 Value Engineering

Company A Building X Hall Don't forget to hide these


VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


Approved Pending Rejected
1 - Foundations 0 0 0

1.01 11/30/2000 Review Rock $ Approved Provide trench for D 20000 0 0


Excavation 20,000 laterals/pit
Quantity
1.02 11/30/2000 Review MEP $ Approved Provide all MEP D -124794 0 0
Trench excavtion in (124,794) rock excavation by
rock sitework
1.03 11/30/2000 Review bank $ Approved Company D -200000 0 0
shoring - un- (200,000) C/company B qtys
realized VE of - 9,900 sf
$235K
1.04 11/30/2000 Verify underdrain $ Approved ABC to validate D -20000 0 0
quantity at (20,000) 700 lf quantity with
basement slab geotech
1.04a 11/30/2000 Review $ Pending ABC to validate D 0 -24000 0
requirement for (24,000) requirement with
underdrains at geotech
basement slab

3 - Floor and Roof Structures 0 0 0

3.01 11/30/2000 Add penthouse $ Approved P 20000 0 0


structure to 20,000
Building Y for
HVAC equipment
3.02 11/30/2000 Revise atrium $ Approved -46000 0 0
structural steel (46,000)
pricing to
$3200/ton
3.03 11/30/2000 Review concrete $ Approved -50000 0 0
pan slab pricing - (50,000)
target savings
3.03 A 12/7/2000 Eliminate all 4" $ Approved -5000 0 0
distribution ribs at (5,000)
pans slab
3.03 B 12/7/2000 Revise pan slab $ Rejected 0 0 -15000
layout to eliminate (15,000)
20" wide pans

3.04 11/30/2000 Delete fireproofing $ Rejected 0 0 -41800


at penthouse steel (41,800)

3.05 11/30/2000 Delete fireproofing $ Approved -16000 0 0


at upper atrium (16,000)
steel and/or
bridges

4 - Enclosure 0 0 0

Facilities Project Managers Guide Page 150


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


4.01 11/30/2000 Adjust unit pricing $ Pending ABC to refine 0 0 0
for curtain - design for future
walls/support steel cost review
at atruim
0 0 0
4.02 11/30/2000 Adjust unit price for $ Pending ABC to refine 0 0 0
curtain - design for future
walls/support steel cost review
at Dufflied
4.03 11/30/2000 Revise north entry $ Pending 0 -32000 0
to existing Building (32,000)
Y - existing to
remain
4.04 11/30/2000 Revise exterior $ Approved -15000 0 0
caulking scope (15,000)

5 - Roofing and Waterproofing


5.01 11/30/2000 Provide $ Approved D -20000 0 0
membrane (20,000)
roofing as 0.060
EPDM un-
reinforced fully
adhered with
design average
R-value
5.02 11/30/2000 Revise smoke $ Approved D 7000 0 0
vents at 7,000
stairwell roofs
5.03 11/30/2000 Fluid applied vs. $ Approved D -16000 0 0
membrane (16,000)
foundation
waterproofing

6 - Interior Partitions 0 0 0

6.01 11/30/2000 Pending $ Pending 0 0 0


-
0 0 0

7 - Floor, Wall and Ceiling Finishes


7.01 11/30/2000 Revise slate wall $ Approved Confirm unit A -42000 0 0
material/thickness (42,000) pricing
from mechanically
fastened to
adhered
7.02 11/30/2000 Revise source of $ Approved Vermont Slate D/A -72000 0 0
slate materials (72,000)
7.03 11/30/2000 Review clean room $ Pending 16192 sf per ABC D 0 0 0
ceiling -
quantites/details at
partitions
7.04 11/30/2000 Review clean room $ Pending Company A to D 0 0 0
ceiling support - verify estimate
system under

Facilities Project Managers Guide Page 151


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


recirc units and
ductwork

7.05 11/30/2000 Revise Mech room $ Approved D -17000 0 0


B0070 floor to clear (17,000)
sealer
7.06 11/30/2000 Delete ceiling grid $ Approved D -14117 0 0
at clean room (14,117)
furnace area

8 - Function Equipment and Specialties


8.01 11/30/2000 Reduce quantity $ Approved D -102545 0 0
of lab casework (102,545)
and equipment
to 85% DD VE
scope
8.01 A 12/8/2000 Delete coldroom $ Approved -45000
- move to fitout (45,000)
costs
8.02 11/30/2000 Review lab $ Pending D 0 0 0
casework unit -
pricing
8.03 11/30/2000 Add gas $ Rejected D 0 0 0
cylinder -
restraints at labs
8.04 11/30/2000 Revise window $ Approved Still have 6000 sf D -40000 0 0
treatment unit (40,000) at $5/sf
pricing
8.05 11/30/2000 Reivew $ Approved R -8000 0 0
projection (8,000)
screen vs.
marker board
quantities

9 - Vertical Transportation and Stairs 0 0 0

9.01 11/30/2000 Reduce freight $ Pending Changes openings D/A 0 -135000 0


elevator (135,000) and door heights
capacity from and arrangements
7000# to 5000#
for #1 and #4
9.02 11/30/2000 Provide direct $ Approved Need vendor D/P -20000 0 0
purchase of (20,000) quotes
dumbwaiters

Subtotal Architectural $ Approved


(826,456)
$ Pending
(191,000)
$ Rejected
(56,800)
$ Total
(1,074,256)

Facilities Project Managers Guide Page 152


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


10.01 11/30/2000 Reduce misc. $ Approved D -10649 0 0
plumbing R/I's (10,649)
quantity from 100
to 50
10.02 11/30/2000 Revise Laboratory Pending D 0 0 0
air compressor
10.03 11/30/2000 Provide $ Approved D -10562 0 0
mechanical joint (10,562)
pipe at under 3"
vents for acid
waste piping
10.04 11/30/2000 Provide w/10.03 Approved D w/10.03 0 0
mechanical joint
pipe at under 3"
drains for acid
waste piping
10.05 11/30/2000 Provide welded $ Pending Bob to pursue as D 0 30000 0
stainless steel 30,000 vendor provided
nitrogen piping for
clean roon
10.06 11/30/2000 Delete fire wrap on $ Approved Need sprinklers on D -15900 0 0
plastic pipe in (15,900) ceiling plenum at
plenums ((DI, acid cleanroom
waste)
10.07 11/30/2000 Revise cost per Pending all 0 0 0
Company Dl
pricing
10.08 11/30/2000 Provide kitchen $ Approved No exhaust D/P 20000 0 0
equipment rough- 20,000
ins
10.09 11/30/2000 Delete tool hook-up $ Rejected D 0 0 -92914
piping - provide as (92,914)
fit-out (DI, vacuum,
air, nitrogen)
10.10 11/30/2000 Bore permanent Pending D 0 0 0
Building Y water
feed from Building
X thru to Building Y
basement
10.11 11/30/2000 Future drain $ Approved D 10000 0 0
locations above 10,000
clean-rooms
10.12 11/30/2000 Simplify clean- Pending Cornell to confirm D 0 0 0
room fit-out scope
10.13 11/30/2000 Delete automatic $ Approved D -14076 0 0
flush valves (14,076)
10.14 11/30/2000 Delete domestic $ Approved D -9700 0 0
water booster (9,700)
pump
10.15 11/30/2000 Delete vacuum to $ Approved D -40000 0 0
2nd and 3rd floor (40,000)
labs
10.16 11/30/2000 D 0 0 0

Facilities Project Managers Guide Page 153


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


0 0 0

Subtotal Plumbing $ Approved


(60,238)
$ Pending
30,000
$ Rejected
(92,914)
$ Total
(123,152)

11- HVAC
11.01 11/30/2000 Revise cost per
Company D
pricing
11.02 11/30/2000 Change FRP $ Approved (name) to confirm D -200000 0 0
duct to alternate (200,000) pricing
material
11.03 11/30/2000 Revise w/11.02 D 0 0 0
loacations for
FRP duct
11.04 11/30/2000 Delete FRP duct Rejected D 0 0 0
connections to
hood - provide
with fit-out
11.05 11/30/2000 Utilize standard $ Approved D -54000 0 0
valves in lieu of (54,000)
process quality
valves and
controls at re-
circ air units at
clean room -
quantity of 24
(all but RAHU
2/3)
11.06 11/30/2000 Provide Pending D/A 0 0 0
competitve
controls bidding
11.07 11/30/2000 Revise smoke $ Approved (name) to review A
exhaust duct in (40,000) BR+A drawings
atrium
11.08 11/30/2000 Eliminate $ Approved A -27089 0 0
cooling at (27,089)
bridges
11.09 11/30/2000 Review costs for $ Approved Review schedule D -10000 0 0
temporary air (10,000)
intake relocation
(only needed 2
months per
Cornell)

Facilities Project Managers Guide Page 154


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


0 0 0
11.10 11/30/2000 Spark resistant $ Approved D -2000 0 0
vs. explosion (2,000)
proof motors at
exhast fans
11.11 11/30/2000 Add flying fin- $ Approved Need drawings D 18000 0 0
tube heating of 18,000 from A/E
curtain walls -
no cover
11.12 11/30/2000 Bore permanent Pending D 0 0 0
Building Y
steam feed and
condensate
return from
Building X thru
to Building Y
basement
11.13 11/30/2000 Delete clean $ Rejected 0 0 -65286
room process (65,286)
cooling fit-out
11.14 11/30/2000 Delete lap-top $ Approved D -5000 0 0
computer with (5,000)
full graphical
software
package
11.15 11/30/2000 Delete training $ Pending confirm pricing of D 0 -10000 0
instructions per (10,000) revised spec
specifications
11.16 11/30/2000 Provide $ Approved D -12000 0 0
laboratory (12,000)
quality in lieu of
process quality
temperature
transmitters
(except for
RAHU 2/3)
11.17 11/30/2000 Change silane $ Approved -42824 0 0
duct from SS (42,824)
304 welded to
galvanized
spiral
11.18 11/30/2000 Delete $ Pending review load calcs D 0 -33000 0
recirculating (33,000)
pumps at 24
RAHU's
0 0 0
11.19 11/30/2000 Change class of $ Approved
instructional lab (27,000)
from 1000 to
10,000
11.20 11/30/2000 Adjust chilled $ Approved D 8000 0 0
water and 8,000
condensate
meters

Facilities Project Managers Guide Page 155


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


11.21 11/30/2000 Change vacuum $ Pending (name) to confirm 0 0 0
pump exhaust - pricing
duct riser from
20 to 12 inch
diameter
11.22 11/30/2000 Change outside $ Approved -4700 0 0
air plenumbs (4,700)
from SS to
galvanized G90
except for the
bottom panel
11.23 11/30/2000 AHU-2, 3 & PH- $ Approved (name) to confirm 50250 0 0
1 to be double 50,250 with Trane
wall in lieu of
single wall
11.24 11/30/2000 $ Pending
-

Subtotal HVAC $ Approved


(281,363)
$ Pending
(43,000)
$ Rejected
(65,286)
$ Total
(389,649)

12 - Electrical
12.01 11/30/2000 Delete lab $ Approved D -75583 0 0
equipment (75,583)
connections
12.02 11/30/2000 Provide solid $ Approved D -17000 0 0
bottom/covered (17,000)
cable tray vs.
ladder type
12.03 11/30/2000 Revise pricing $ Rejected Cornell to A 0 0 0
of light pipe at - prepurchase
Atrium
12.04 11/30/2000 Revise power $ Approved No data - (name) D 0 0 0
pole pricing at - to price
offices
12.05 11/30/2000 Review $ Approved S -20000 0 0
Company E (20,000)
demolition costs
12.06 11/30/2000 Owner to $ Approved all -34000 0 0
provide (34,000)
tele/data wiring
12.07 11/30/2000 Provide kitchen $ Approved D/A 10000 0 0
equipment 10,000
rough-ins
12.08 11/30/2000 Increase power $ Approved A 9450 0 0
and data outlets 9,450
at Atrium

Facilities Project Managers Guide Page 156


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


12.09 11/30/2000 Delete remote $ Approved (name) to review D 0 0 0
ballasts at e- - pricing
beam rooms
and utilize
incandescent
0 0 0
12.10 11/30/2000 Class A wiring $ Approved R -10000 0 0
for initiating (10,000)
devices not
required - use
class B
12.11 11/30/2000 Change 600 $ Approved Revises to -20000 0 0
kcmil to 500 (20,000) standard breakers
kcmil up to at 80%
800A, eliminate
special devices
12.12 11/30/2000 Delete witness $ Approved -15000 0 0
testing on (15,000)
transformer and
generator
0 0 0
12.13 11/30/2000 Delete impulse $ Approved -1000 0 0
testing on (1,000)
transformers,
provide data for
similar
equipment
12.13 11/30/2000 Utilize aluminum Pending (name) to price 0 0 0
in lieu of copper
at switchgear,
panels, etc.
12.14 11/30/2000 COMPANY A - $ Approved -2000 0 0
delete limit 6 (2,000)
buckets per
vertical stack
0 0 0

Subtotal Electrical $ Approved


(175,133)
$ Pending
-
$ Rejected
-
$ Total
(175,133)

13 - Fire Protection
13.01 11/30/2000 Eliminate flex $ Approved BR+A to review D -31306 0 0
heads at clean (31,306) details for ability to
rooms change hepas
0 0 0
13.02 11/30/2000 Provide Sch. 10 $ Approved D/A -6700 0 0
vs. Sch. 40 (6,700)

Facilities Project Managers Guide Page 157


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


piping

0 0 0
13.03 11/30/2000 Verify no $ Pending BR+A to review A 0 0 0
sidewall heads -
at skylights
0 0 0
13.04 11/30/2000 Add pre-action $ Rejected Estimate include 0 0 40000
system to E- 40,000 preaction at
beam rooms Characterization
0 0 0
13.05 11/30/2000 Delete Pre- $ Pending 0 -41000 0
action system to (41,000)
Characterization
0 0 0

Subtotal Fire Protection $ Approved


(38,006)
$ Pending
(41,000)
$ Rejected
40,000
$ Total
(39,006)

15 - Sitework
15.01 11/30/2000 Revise routing $ Approved BR+A and S -85000 0 0
for emergency (85,000) Lemessuir to
generator thru review routing,
Building Y Hall Company A to
price
15.02 11/30/2000 Revise routing $ Approved Need design S -50000 0 0
for tele/data (50,000) information from
ductbank thru BR+A
Building Y Hall
15.03 11/30/2000 Provide on-site $ Rejected Discuss with S 0 0 -5000
stockpiling of (5,000) Company M,
excavated potential location
materials to be at equestrian
re-used/filled building
15.04 11/30/2000 Revise natural Pending Costich to S 0 0 0
gas evaluate
piping/NYSEG
allowance -
$40,000
15.05 11/30/2000 Review $ Pending Company A to S 0 0 0
concrete vault - evaluate
removal costs
15.06 11/30/2000 Review site $ Approved -10000 0 0
painting cost of (10,000)
$25K

Facilities Project Managers Guide Page 158


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


15.07 11/30/2000 Review $ Pending Company A to S 0 -20000 0
dumping costs (20,000) evaluate
for Company E
and Building Y
15.08 11/30/2000 Add SDR-21 $ Pending (name) to review S 0 0 0
liner to 16" DIP - with (name)
sanitary sewer
under Atrium
15.09 11/30/2000 Provide clean $ Pending Review at future S 0 0 0
corridor and - CNF move
elevation strategy meeting
adjustment for
access between
clean rooms in
Company E and
Building X
15.10 11/30/2000 Delete or $ Approved S -21000 0 0
change Gothic (21,000)
lights
15.11 11/30/2000 Revise pricing $ Pending (comments) S 0 -4000 0
for bulk Nitrogen (4,000)
tank piping
15.12 11/30/2000 Add temporary $ Approved S 5000 0 0
stairs for south 5,000
Building Y
during
construction
15.13 11/30/2000 Add temporary $ Pending Review at future S 0 5000 0
dock for CNF 5,000 CNF move
move strategy meeting
15.14 11/30/2000 Revise pricing $ Pending (comments) S 0 -25000 0
for bulk Nitrogen (25,000)
tank systems
15.15 11/30/2000 Temporary $ Pending (comments) S 0 0 0
HRM storage -
facility
15.16 11/30/2000 Revmove cost $ Approved S -19000 0 0
of stairs and (19,000)
bollards at
loading dock
and site signage
15.17 11/30/2000 Eliminate $ Approved S -10600 0 0
benches (10,600)
15.18 11/30/2000 Delete special $ Approved S -10000 0 0
shoring (10,000)
15.19 11/30/2000 Delete $ Approved S -56250 0 0
duplication on (56,250)
Gothic lights on
wall
0 0 0
$ Approved
(256,850)
$ Pending

Facilities Project Managers Guide Page 159


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


(44,000)

$ Rejected
(5,000)
$ Total
(305,850)

17 - General Conditions and Scope


17.01 11/30/2000 Review moving $ Pending Review at future G 0 0 0
CNF to Building - CNF move
X with 100% strategy meeting
shutdown of
Company E as
soon as Duffiled
cleanroom is on
line and
validated
17.02 11/30/2000 Provide unit $ Pending G 0 0 0
prices for lab fit- -
out work a
reduce fit-out
work included in
construction
17.03 11/30/2000 Revise General $ Approved G -50000 0 0
Conditions (50,000)
estimate
17.04 11/30/2000 Reduce $ Pending 0 -358149 0
contingency to (358,149)
2.5%

General Conditions and Scope $ Approved


(50,000)
Summary
$ Pending
(358,149)
$ Rejected
-
$ Total
(408,149)
App/pend
(2,521,782)

Total Summary $ Approved


(1,698,695) (1,826,097)
$ Pending
(647,149) (695,685)
$ Rejected
(180,000) (193,500)
$ Total
(2,525,844) (2,715,282)

50% CD Estimate $42,017,447

Facilities Project Managers Guide Page 160


Company A Building X Hall Don't forget to hide these
VALUE ENGINEERING/COST ADJUSTMENTS Cornell University columns
(date)

NO DATE DESCRIPTION AMOUNT ACTION COMMENTS


Summary Budget $39,100,000
Delta $2,917,447

Approved VE W/ markup ($1,826,097)

Current Delta $1,091,350

Facilities Project Managers Guide Page 161


Sample Change Order Letter

DATE: June 8, 1998

TO: (name)
(name at C&CP)

FROM: Project manager

SUBJECT: X Project
Change Order #6, Contract # C…
X Construction Company

Please process Change Order #6 to the Guaranteed Maximum Cost (GMC) agreement between Cornell
and the Company G contract #C…, dated …, to cover the following detailed in the attached
documentation:
The following Potential Change Orders (PCO’s) were due to Design Changes:
PCO General Description COW GC's Fee Amount
149 Added type FAG light fixtures not indicated on $7,965 $159 $8,124
drawings
167 RFI#404 -- Foot grill size increase $807 $16 $823
174 ASI#110a - Relocation of floor boxes in $20,743 $415 $21,158
classrooms
216 Change to ACT-4, ceiling tile in classrooms $3,444 $69 $3,513
218 Upgrade brackets & standards in 20 faculty $3,905 $78 $3,983
offices
236 Add 8 ceiling cruciforms in classrooms at $5,317 $106 $5,423
projectors
243 Upgrade concrete and asphalt walks to CU $13,718 $274 $13,992
standards
248 RFI#423-Provide (12) 2" circuit setters $2,526 $51 $2,577
253 RFI#618-Relocate classroom equipment $2,550 $51 $2,601
254 Finials atop vaulted roof $1,369 $27 $1,396
269 Gold Leaf on signature stones $1,505 $30 $1,535
Total PCO’s due to Design Changes: $63,849 $1,276 $65,125

Facilities Project Managers Guide Page 162


The following PCO was due to a Scheduled Allowance Adjustment:
PCO General Description COW GC's Fee Amount
114 Spire Allowance Adj. $66,828 $8,483 $1,337 $76,648

The following PCO’s were Owner Directed:


PCO General Description COW GC's Fee Amount
217 Change shelving to bookcases in 40 $143,280 $2,866 $146,146
faculty offices
225 Wood ceiling in Exec Ed classroom $8,435 $169 $8,604
141
244 ASI#123-Added concrete walks $8,473 $169 $8,642
255 Delete mow strip ($4,500) ($4,500)
262 Added locks at storm windows per CU $2,065 $41 $2,106
266 Additional receptacles in telephone $4,337 $87 $4,424
closets per CU
273 Telecom Tie-in to Dover Elevator $1,413 $28 $1,441
Total PCO’s due to Owner Directed: $163,503 $3,360 $166,863

The following PCO’s were due to Unforeseen Conditions:


PCO General Description COW GC's Fee Amount
081 Existing Floor Joist Work per $1,049 $21 $1,070
RFI#316
104 Remove existing plank at roof edge $693 $14 $707
for blocking
116 Unforeseen at Projected Dormer $2,073 $41 $2,114
185 Window jamb extensions $28,456 $569 $29,025
222 Upgrade parking lot to CU standard $34,402 $688 $35,090
PCO’s due to Unforeseen Conditions: $66,673 $1,333 $68,006

Facilities Project Managers Guide Page 163


The following table summarizes Change Order #5 costs and the impact to the GMC line items:

Item Current Change Revised

Unforeseen Conditions $68,006.00


Scheduled Allowance Adj. 76,648.00
CU Directed Changes 166,863.00
Design Changes 65,125.00
Cost Of Work $23,680,821.00 $360,853.00 $24,041,674.00

General Conditions $2,216,869.00 8,483.00 $2,225,352.00

Fee $902,851.00 7,306.00 $910,157.00


Total GMC $26,800,541.00 $376,642.00 $27,177,183.00
Additionally, retainage reduction to zero is requested for various . subcontractors:
Original Final Retainage Retainage
Contract Contract Reduction
Company Trade Held
Amount Amount Request

(name) Spire Steel Fab $19,900 $19,900 $1,990 $1,990

(name) Spire Erection, $43,954 $43,954 $4,779 $4,779


etc.
(name) Fireproofing $228,375 $280,914 $28,247 $28,247

(name) Scaffolding $288,680 $314,621 $31,462 $31,462

(name) Auto Closing $82,616 $86,386 $4,319 $4,319


Doors
(name) Accordion Doors $52,173 $52,173 $5,217 $5,217

(name) Telephone Spec. $4,800 $4,800 $480 $480

(name) Signage $4,091 $4,091 $409 $409

(name) Libr. Security $13,145 $13,145 $1,314 $1,314


Sys.
(name) Access Flooring $4,500 $4,500 $225 $225

(name) Microfiche $14,928 $14,928 $1,492 $1,492


Cabinets
(name) Historic Moldings $5,940 $5,940 $594 $594

(name) Refrigerators $1,088 $1,088 $108 $108

(name) Louvers $5,041 $5,041 $504 $504

(name) Library Book $2,133 $2,133 $213 $213


Drop

Facilities Project Managers Guide Page 164


Original Final Retainage Retainage
Contract Contract Reduction
Company Trade Held
Amount Amount Request

(name) Foot Grilles $5,900 $16,457 $1,645 $1,645

If you have any questions or require additional documentation, please let me know.

Thank you.

Attachments

xc:

Facilities Project Managers Guide Page 165