Sec. 1 Purpose
The purpose of this Policy is to define consistent practices for optimizing resources and managing risk while delivering Major Projects as defined in UTS 168 Capital Expenditure Policy and Rule 80301 of the Regents’ Rules and Regulations.
Sec. 2 Principles
Effective management of the U. T. System’s Capital Improvement Program (CIP) is critical in providing the capital infrastructure necessary for U. T. institutions to achieve their respective missions while minimizing risk and optimizing the use of limited financial resources.
Sec. 3 Policy Statement
Each institution and delegated management authority shall establish and maintain structures, administrative procedures, and designated responsibilities for managing Major Projects as defined by this Policy. All U. T. System Administration offices shall work collaboratively to aid the institutions in their endeavor to successfully deliver Major Projects.
Sec. 4 Management Authority
4.1 The following institutions have been delegated the authority to manage Major Projects on their own behalf in accordance with Rule 80404 of the Regents’ Rules and Regulations:
- The University of Texas at Arlington
- The University of Texas at Austin
- The University of Texas at San Antonio
- The University of Texas Health Science Center at Houston
- The University of Texas Health Science Center at San Antonio
- The University of Texas M. D. Anderson Cancer Center
- The University of Texas Medical Branch at Galveston
- The University of Texas Southwestern Medical Center
4.2 Unless otherwise authorized by the Board of Regents (BOR), the U.T. System Office of Capital Projects (OCP) has delegated authority to manage Major Projects on behalf of the following institutions in accordance with Rule 80402 of the Regents’ Rules and Regulations:
- Stephen F. Austin State University
- The University of Texas at Dallas
- The University of Texas at El Paso
- The University of Texas Permian Basin
- The University of Texas Rio Grande Valley
- The University of Texas at Tyler
- The University of Texas at Tyler Health Science Center
- The University of Texas System Administration
Sec. 5 U. T. System Administration Support
5.1 OCP shall monitor and report on the performance of the CIP and shall act as liaison with the Board of Regents, the Texas Higher Education Coordinating Board (THECB), and others on behalf of all U. T. System institutions.
5.2 All U. T. System Administration offices shall provide subject matter guidance and services related to Major Project administration, management, design, construction, and reporting as necessary, or when requested by any U. T. System institution.
5.2 OCP shall maintain The U. T. System Guide to Major Capital Project Delivery to provide the most current policies, procedures, and resources needed to successfully deliver Major Capital Projects for U. T. System and its institutions.
Sec. 6 Major Project Planning and Approvals
6.1 Each institution shall prepare the ordinary and necessary documentation for BOR Agenda Items related to Major Projects in consultation with and assisted by OCP for review and handling of submission.
6.2 Each institution shall prepare the Institution’s ordinary and necessary documentation for THECB project submissions in consultation with and assisted by OCP for review, certification, and handling of submission.
Sec. 7 Project Management
7.1 All Major Projects shall be managed and executed in compliance with applicable Federal and State laws, Regents’ Rules and Regulations, U. T. System Policies, and agreements with other U. T. System offices.
7.2 The managing authority shall perform periodic risk assessments and audits to verify compliance with Federal and State laws, the Regents’ Rules and Regulations, U. T. System Policies, and delineated in the most current version of the U. T. System Risk Mitigation and Monitoring Plan for Major Capital Projects.
7.3 The managing authority shall solicit and execute contracts related to Major Projects in accordance with State procurement regulations, U. T. System Policies, and Office of General Counsel (OGC) guidelines and templates.
7.4 The managing authority shall perform contract administration and management of professional services and construction contracts.
7.5 Subject to the requirements of Section 8 related to Risk Management, the managing authority shall communicate with OGC, the Office of Contracts and Procurement (CNP), and OCP as needed for procurement-related questions and proposed modifications to standard U. T. System contract language.
7.6 Subject to the requirements of Section 8 related to Risk Management, the managing authority shall develop, use, and maintain its own construction standards and/or specifications, as appropriate, and share those with OCP, especially where benefit to the overall CIP may be realized.
Sec. 8 Risk Management
8.1 The managing authority shall execute all Major Projects using the current U. T. System Construction Risk Management Program managed by the Office of Risk Management (ORM): Rolling Owner Controlled Insurance Program (ROCIP), Master Builder’s Risk Insurance Program (BR), and the corresponding Construction Safety and Risk Management Program.
8.2 The managing authority shall include and utilize the most current U. T. System “Project Safety Requirements” 01 35 23, “Project Administration” 01 31 00, and “Project Insurance Requirements” 00 73 16 specifications in the construction contract documents.
U. T. System institutions can access the current Standard Front-End Specifications from the U. T. System Management Resources section of the U. T. System Guide to Major Capital Project Delivery.
8.3 If a project is eligible for ROCIP or BR, requests for exceptions or modifications to the requirements in Section 8 shall be made in writing by the institution Chief Business Officer prior to a project’s addition to the CIP to the U. T. System Chief Risk Officer and the Executive Vice Chancellor for Business Affairs.
Sec. 9 Major Project Assessment and Reporting
9.1 The managing authority shall provide regular updates on the current status of active Major Projects for reporting to the BOR and U. T. Systemwide programs. U. T. System institutions can access the current reporting requirements from the U. T. System Management Resources section of the U. T. System Guide to Major Capital Project Delivery.
9.2 The managing authority shall provide copies to OCP of documentation attesting to project compliance with State Energy Conservation Office, Texas Commission on Environmental Quality and Texas Historical Commission requirements as required by each agency.
9.3 The managing authority shall provide reports regarding the Historically Underutilized Businesses (HUB) program participation data, objectives, and activities in accordance with UTS 137.
9.4 The managing authority in collaboration with its HUB Office shall provide the data required by Texas Education Code 55.03 on its expenditures with nonminority, minority, and women-owned businesses including subcontracts funded by Revenue Financing System Bonds, Tuition Revenue Bonds, and Capital Construction Assistance Projects each fiscal year by the deadline requested by the U. T. System Administration HUB Office.
Sec. 10 Procurement of Technical Services
10.1 All U. T. System institutions may utilize U. T. System CNP managed Indefinite Delivery, Indefinite Quantity (IDIQ) Master Agreements for professional and technical services and shall collaborate with OGC and CNP to execute appropriate “Companion Agreements” with the selected firms for any such services. A list of services currently available under CNP-managed IDIQ Master Agreements can be requested from CNP.
10.2 Each institution shall provide CNP with a copy of all fully executed Companion Agreements.
10.3 Each institution will be responsible for contract development and administration, issuance of work orders, receipt, and payment of invoices, monitoring of expenditures, and necessary reporting to the BOR for all executed Companion Agreements.
10.4 Each institution may also independently procure and enter into IDIQ agreements for technical services.
Sec. 11 Sharing of Best Practices
11.1 Each institution shall provide comments on and/or participate in U. T. System initiatives related to project administration, management, design, construction, reporting, facilities management, and energy utilization.
11.2 Each institution shall promote the sharing of best practices with other U. T. System institutions and offices regarding project administration, management, design, construction, reporting, facilities management, and energy utilization.
11.3 In order to enhance consistency across the CIP, each institution shall provide ORM and OCP an opportunity to participate in the review of code equivalency interpretations with the State Fire Marshal’s Office and the Texas Department of Licensing and Regulations.
11.4 Each institution shall provide OCP the opportunity to participate in forensic investigations related to Major Projects and provide OCP with copies of preliminary and final reports related to the investigations, especially where benefit to the overall CIP may be realized.
