Chapter 200Agency and Institution Capital Projects

201Responsibilities of Agencies and Institutions

201.1Policy and Procedures

  1. Agencies and institutions shall name staff members as Capital Projects Coordinators, or CPC’s, responsible for all capital processes within their agency or institution. The term “owner” typically refers to the owning agency Capital Projects Coordinator or a designee.
  2. State agencies, institutions, and community colleges (owners) shall establish needs, scope and budgets for new physical facilities as well as repair and renovation needs. The owner shall request legislative funding by describing the Proposed Repair and Renovation Capital Improvement Project on Form OC-25 Cost Estimate. The Form OC-25 Cost Estimate can be completed online in the State Construction Interscope database as a Cost Estimate. The State Construction Office Facility Condition Assessment Program (FCAP) reports can assist owners in prioritizing needs and preparing cost estimates, and should be included with each renovation funding request.
  3. Once the Form OC-25 Cost Estimate is complete and certified by the State Construction Office, the owner submits the request to the State Budget Office for possible inclusion in a budget request for funding project. When projects are funded by the legislature, the owner shall expeditiously follow all procedures and actively participate in the designer selection, commissioning and contracting processes. The owner shall provide all programming and information needed for the designer to prepare an appropriate scope of design work, schedule and design fee to meet the requirements established in the fund appropriation.
  4. During the design process the owner shall meet regularly and as needed to coordinate with and to provide program information to the designer as required to meet schedules. The owner shall review and approve plans and specifications at designated design stages to ensure project design, program and scope are appropriate and within budget. Owner comments and approvals should be provided to the State Construction Office for coordination and review.
  5. Should there be any owner changes in scope, budget, or design fee, the owner shall request the design contract be amended accordingly and should do so in a timely manner.
  6. For design and construction of Capital Projects, the owner shall ensure that the performance of building systems meets the design intent. To provide quality assurance on a project, the owner shall contract with an independent Commissioning Authority to serve as an advisor on projects above the size thresholds in GS 143-135, currently 20,000 ft² with some exceptions,Commissioning Guidelines are available on the State Construction Office website.

202Capital Project Coordinator

  1. The Capital Project Coordinator is the individual authorized by each funded agency to coordinate all capital improvement projects and related matters with the State Construction Office and to represent that agency on all matters presented to the State Building Commission. The individual so designated for purposes of these rules may have other titles within his or her agency but shall carry out the duties assigned herein. The title Capital Project Coordinator includes a designated assistant or representative.
  2. The State Construction Office will, periodically and based on demand, conduct a course of instruction on the role and duties of the Capital Project Coordinator, as well as all topics pertinent to the state construction process.
  3. The Capital Project Coordinator is responsible for the Designer and Contractor Evaluations required by GS143-135.26(4) and NCAC 30E and 30F. At the end of pre-bid phase, contract award phase, construction phase and post-construction phase, the Capital Project Coordinator shall evaluate designer and prime contractor performance at each phase of the project as well as the overall performance on the project at the conclusion of the work. An interim evaluation may be prepared by the Capital Project Coordinator at the request of either party and either party can review and comment on evaluations prior to filing the report.

203State Capital Budgets

1.For new capital funding: in a two-year budgeting cycle, funds available are typically reversions of monies not spent under the previous budget cycle.
2.Repair and renovation funds are typically appropriated annually and shall not be used to construct new facilities nor increase an existing building footprint except for State or Federal Code Requirements.
3.For Special Appropriations, allocations are created by specific legislative bills.
4.Non-appropriated funds include the following:
  1. Self-liquidating projects / Receipts supported – For example: dorm rentals, parking fees, student activity or recreation fees, gate receipts, food service, bookstores, etc.
  2. "Gift-in-Place" - Private funding, design & construction.
  3. “Foundation” financing.
  4. Issuance of State bonds.

204Requests for Capital Improvement Funding

State institutions and agencies planning a budget request for appropriations for capital improvements shall use Form OC-25 Cost Estimate Proposed Repair and Renovation Capital Improvement Project for verification of scope, schedule and cost estimate. This form is available on the State Construction Office Interscope Project Environment under the heading Cost Estimate, and can be completed on-line once the Capital Project Coordinator has obtained a log-in password. The Form OC-25 Cost Estimate shall fully describe the proposed project and justification for need. Each form shall be completed by an authorized representative of the institution or agency. After review and certification by State Construction Office, these forms are available to the agency for submittal to the Office of State Budget and Management for consideration in a proposed State Budget.

205Certification of Form OC-25 Cost Estimate

According to GS143-341(3)b1, the State Construction Office is to certify that statements of need submitted as Form OC-25 Cost Estimateare feasible, or sufficiently defined in overall scope; building program; site development; construction and equipment budgets; and comprehensive project scheduling so as to reasonably ensure completion within the amount of funds requested. The certification is required by the budget statute GS 143C-3-3(c)(3).

206Advanced Planning

Advance planning contracts with designers are encouraged to assist Owners in programming, scope and budget analysis, site selection, studies, master planning, and other strategic decisions forms. Those reports, studies and estimates shall be included with Form OC-25 Cost Estimate submittals for funding. Advance planning contracts are typically letter agreements for services or the standard design contract with limited scope, as described in Chapter 300.

Funding for advance planning of capital improvement projects may be available to Owners to pay for advance planning only, to establish scope, budget, programming, schedule, or feasibility of a project prior to a request for full funding.

Projects funded only for advance planning through the normal capital improvement budget processes will be handled the same as fully funded projects in the procedures for designer selection, contracting and review.

Long-range planning or master planning for institutional development is encouraged. All agencies are requested to consult with the State Construction Office relative to these programs.

207Design and Construction

207.1Designer Selection

The owner’s Capital Project Coordinator, in consultation with the State Construction Office, shall follow the State Building Commission rules for designer selection described inNCAC 30D.

207.2Design Contract

The owner’sCapital Project Coordinator shall initiate the design contract process as described in Section 308.

207.3Advance Planning

Advance planning is required to comply with the Sustainable, Energy-EfficientBuilding legislation of GS 143-135.35-40. The extent of the advance planning required shall be determined in consultation with the State Construction Office. A flowchartis available to assist the design team with the advance planning process for energy and water efficiency.

207.4Commissioning

On projects subject to the Sustainable, Energy-Efficient Building legislation of GS 143-135.35-40, typically buildings 20,000 square feet and larger, the Capital Project Coordinator shall select and contract with a commissioning firm that is independent of any other designers or contractors on the project. The commissioning firm should be under contract with the owner prior to beginning the schematic design of the project.

207.5Design Phases

The owner’s Capital Project Coordinator shall review and approve plans and specifications forthe design phasesdescribed in Chapter 500 and Section 403. Owner comments should be provided to theState Construction Office for coordination and review.

207.6Bidding and Contracts

The owner’s Capital Projects Coordinator is responsible for soliciting bids and construction contracts as described in Chapter 600.

207.7Construction

The owner’s Capital Projects Coordinator is responsible for facilitating the construction process described in Chapter 700, including approval of change orders. The owner should attend all construction meetings, observe the progress of construction, and suggest punch list items to the Designer prior to the final inspection. Any change orders initiated as a result of owner comments should be processed, and work completed, prior to the final inspection.

207.8Final Inspection

The owner’s Capital Projects Coordinator and maintenance staff should participate in the final inspection, but owner comments should have been addressed by the Designer and contractors prior to the final inspection.

207.9Training and Operations & Maintenance

In coordination with the Designer, Contractors and Commissioning Agent, the owner maintenance staff should receive training and operation and maintenance manuals at completion of the project.

207.10Project Closeout

The owner shall receive or have on-line access to the project closeout documents described in Section 712.

208Emergency Projects

Emergency situations are addressed in the Administrative Code as NCAC 30D.0302(e) for Special Procedures for Emergency Projects and reads as follows:

On occasion, emergency design or consultation services may be required for restoration or correction of a facility condition which by its nature poses a hazard to persons or property, or when an emergency exists. Should this situation occur, in all likelihood there will not be sufficient time to follow the normal procedures described in this Rule. The Capital Projects Coordinator on these occasions may declare an emergency, notify the State Construction Office and then obtain the services of a designer or consultant for consultation or design of the corrective action. In all cases, such uses of these emergency powers shall involve a written description of the condition and rationale for employing this special authority signed by the head of the agency and presented to the State Building Commission at its next normal meeting. Timeliness for obligation of funds or other non-hazardous or non-emergency situations do not constitute sufficient grounds for invoking this special authority.

209Real Property

209.1Demolition of Buildings

209.1.1General Authority

No building or structure owned by the State of North Carolina, except highways, bridges and railroads, may be razed, demolished or otherwise disposed of unless and until authority for such disposition has been approved by the Council of State and given in writing by the Department of Administration, State Property Office according to the conditions of GS 143-341(4) and other applicable statutes. All buildings to be razed or demolished shall be surveyed for asbestos-containing materials or other hazardous materials that shall be properly removed in accordance with environmental regulations and legally disposed of prior to demolition.

209.1.2Procedure to Obtain Authority

Request for authority to raze or demolish any building or structure as defined above shall be made to the State Property Office on Form PO2, Disposition of Real Property. Such request shall be accompanied by a resolution of the board or governing body where such board or governing body exists.

209.2Acquisition of Property

209.2.1Gift of Existing Real Estate to the State

For the State to accept a gift of land, buildings or other structures, proposals shall be submitted by the recipient institution to the State Property Office, which will review and provide a referral to the Office of State Budget and Management. If approved by the Office of State Budget and Management, the State Property Office shall request the State Construction Office to provide an engineering team to inspect and evaluate the property as to suitability for use and estimate the cost of any needed repairs or renovations. The State Property Office will then report those findings and make recommendations to the Council of State. For new building construction, the procedures described in Section 102.4 for non-State funded projects should be followed.