NEW BUILD AND DEMOLITIONPOLICY 2010
CONTENTS
1.0Policy Statement
2.0Major Projects
3.0New Build and Extension Projects
4.0New Build Development Agreements
5.0Acquisition, Disposal and Demolition Projects
6.0Leased Property
7.0Student Accommodation
8.0Energy, Environment and Carbon management
9.0Equality and Diversity
1.0Policy Statement
The University’s strategic plan identifies that fit for purpose infrastructure is vital if the University is to achieve its ambitions. However, the age and condition of some of the University’s infrastructure provides significant maintenance challenges. For this reason the University will plan for new buildings and demolition of existing buildings to ensure that the estate remains fit for purpose. All potential new builds, extensions, land and building acquisitions and demolitions will be identified within the University’s Estates Strategy and Capital Planwith opportunities and unplanned circumstances managed as they occur.
The Capital Plan is a rolling five year plan updated annually and developed and agreed by the University’s Senior Management Group (SMG) and Court that identifies the priority order and start dates of all capital investment. The capital plan, in combination with the approval process for each project, requiring a business plan showing the return on investment, ensures that infrastructure is developed inline with strategic need. The Capital Plan provides a roadmap for initiating projects and is the financial plan for delivering the Estates Strategy.
The plan includes Key Projects which are those projects that are very difficult to move or cancel due to external constraints. All other projects are placed into five priorities on a qualitative rather than quantitative basis linked with affordability. A holistic is taken as to how the projects will help contribute towards University and College strategies. New builds and demolition projects can be identified as Key or in one of the other priorities.
This policy provides the project governance model for Major Projects so that Colleges and University Services can identify their roles and responsibilities. New builds, extensions, demolitions, acquisitions and disposals are typically major projects.
2.0 Major Projects
Major projects are defined as projects which add or remove physical m2 space to the University Estate such as acquisition or disposal, new builds, extensions or demolitions, and involve individual capital or revenue expenditure over the approval thresholdfor Capital Works in the University’s Scheme of Delegated Authorities.
The University’s Financial Regulations are written and published by the Finance Office and approved by Finance Committee. The financial thresholds and approvals for expenditure are documented in the Scheme of Delegated Authority approved by University Court
Major Projects will not initiate until the appropriate authorisation/approvals within the Regulations and Scheme are in place and signed off on a Major Project (CapEx) Application Form. These requirements also need to be fulfilled during summer and winter recess periods. Project Owners and Sponsors are expected to plan for this annual occurrence.
Maintenance and refurbishment projects do not require the level of Project Governance necessary for new builds, extensions, acquisitions, disposals or demolitions, unless they meet the major project definition, and will use Estates and Buildings Project Management procedures in line with Financial Regulations and the Scheme of Delegated Authority. Where major projects have 100% revenue funding and exceed the Scheme of Delegated Authorities thresholds they will also be expected to progress through the CapEx Application process.
3.0New Build and Extension Projects
Use of the Scottish Funding Council (SFC) Decision Point Process is mandated on all land new buildand extension major projects.
Details of the SFC Decision Point Process can be found on the following link:
Use of a specific or combined Project Board (e.g. by College ownership) is mandated for allnew build and extension major projects.
The following key appointments will be made on all Project Boards:
- Investment Decision Maker (IDM) – Secretary of Court and/or VP (Strategy and Resources) on behalf of University Court, and endorsed by Estates Committee
- Project Owner – Head of College, Secretary of Court or other SMG member appointed by Principal, on behalf of the Principal, and endorsed by SMG
- Project Sponsor – Appointed by IDM on recommendation from Project Owner. Responsible for all Decision Point Reviews
- Project Board – Advisory only, appointed by IDM, usually includes Project Owner, Project Sponsor, Director of Finance or Deputy, Director of Estates & Buildings or Deputy, other advisors as required by IDM, Project Owner or Project Sponsor
- Client Advisor(s) – Appointed by Project Sponsor and/or Director of Estates and Buildings and includes Legal Advisors and other specialists such as Equipment Technicians and IT Services
- User Panel – Appointed by Project Sponsor including functional and operational stakeholders
- Project Manager – Assistant Director (Estates Development) or Estates Development Manager
The summary roles of the appointments are:
Investment Decision Maker
The Investment Decision Maker (IDM) is responsible for approving the project and maintaining the sustained management commitment for its delivery. This is normally the SMG and University Court.
Project Owner
The project owner is usually the Principal or nominated deputy, reporting to the IDM, and is responsible for the project and its budget with the status and authority to provide the necessary leadership as they must have clear accountability for delivering the project requirements.
Project Sponsor
The project sponsor should be a senior officer within the College or University’s organisation, appointed by and reporting to the Project Owner. The project sponsor should lead organisation and preparation of decision point reviews and reports with the assistance of the design team, project management team and Director of Estates and Buildings.
4.0 New Build Development Agreements
Where the University enters a Development Agreement for a new building with other parties then a joint Project Board will be established. Estates Committee are to approve any Project Board proposal for these purposes. It is expected that the third party will have at least membership of the Project Board and may co-own or co-Sponsor a project. As the University of Glasgow is expected to be the contracting party and own associated risks, it will have the majority decision rights legally agreed. The SFC Decision Point Process is also to be used for these projects unless the other parties have an Estates Committee orUniversity Court approved alternative
5.0Acquisition, Disposal and Demolition Projects
Potential land and building acquisitions, disposals and demolitions will be identified in the University’s Capital Plan and Estates Strategy.
Land and building acquisition, disposal and demolition projects will not have a mandated use of the SFC Decision Point process or Project Boards
The Project Sponsor for all land and building acquisitions, disposals and demolitions and related CapEx applications will be the Secretary of Court.
The Director of Estates & Buildings will submit an option appraisal for CapEx Application Group to consider any potential land and building acquisition, disposal or demolition decision and make recommendations to Estates Committee.
All acquisitions, disposals and demolitions will require University Court approval on recommendation from Estates Committee and Finance Committee in line with the University’s Financial Regulations
6.0 Leased Property
This policy will apply to leased property where legislative and lease obligations permit
7.0Student Accommodation
Only retained Student Residential Accommodation is included in this policy
8.0Energy, Environment and Carbon Management
All new builds, extensions, acquisitions, disposals and demolitions will comply with the University’s Energy, Environmental and Carbon Management Policies.
9.0 Equality and Diversity
All new builds, extensions, acquisitions, disposals and demolitions will comply with the University’s Equality and Diversity Policy and Disability and Equality Scheme (DES) Action Plan for Physical Access.
Date Reviewed:December2010
Version Number: 1
Author/Revised by: Director of Estates and Buildings
Approved by: Estates CommitteeXX/XX/XXSMG XX/XX/XX University Court XX/XX/XX
Next Review Date: December2012