The
UNC Policy Manual
600.1.1
Adopted
11/14/97
Amended
06/08/01
Amended
06/14/13
Amended
05/22/19
Amended
11/19/20
Amended
05/27/21
Amended
02/24/22
Amended
11/17/22
I. Authority. G.S. 143C-8-12 provides the
Board of Governors with authority to approve certain expenditures for capital
improvement projects that will be funded and operated entirely from non-General
Fund or non-State Capital and Infrastructure Fund money, including expenditures
to plan, construct, and change the scope of such projects.
Additionally, G.S. 116-31.11 delegates to the Board of
Governors the authority for the administration of design and construction
contracts with regard to the construction, or
renovation of buildings, utilities, and other property developments requiring
the estimated expenditure of public money of $4,000,000 or less. This authority
includes the negotiation of fees for all design contracts and the supervision
and letting of construction and design contracts, the establishment of
procedures in performance of those responsibilities, and specific reporting
requirements to the State Building Commission. The Board is also authorized to
delegate its authority to constituent institutions and affiliates of the
University of North Carolina if a constituent institution or affiliate
is qualified under guidelines developed
in consultation with the director of the budget and the State Building
Commission.
Pursuant to and consistent with its authority under the
North Carolina General Statutes, including G.S. 116-11(13), the Board of
Governors adopts the following policy regarding authority of the president and
boards of trustees of the constituent institution to approve and administer
certain capital improvement projects.
II. Approval
and Administration of Certain Capital Improvement Projects
A.
General Delegations of
Authority to the President and Boards of Trustees for Approval of Certain Capital
Improvement Projects Pursuant to G.S. 143C-8-12.
1.
The Board of Governors delegates to the president and the
boards of trustees the power to approve capital improvement projects that are funded
entirely with non-General Fund or non-State Capital and Infrastructure Fund money
with a total project budget of less than $750,000.[1] The president’s authority may be exercised on
behalf of the UNC System Office, affiliates, or the constituent institutions in
the president’s discretion. Capital
improvement projects that are funded entirely with non-General Fund or non-State
Capital and Infrastructure Fund money with a total project budget of $750,000
or more must be approved by the Board of Governors.
2.
The Board of Governors delegates to the president and the
boards of trustees authority to approve advance
planning of capital improvement projects, where the advance planning effort is
to be funded entirely with non-General Fund or non-State Capital and
Infrastructure Fund money.[2]
3. The Board of Governors delegates to
the president the authority to approve an increase of up to 10 percent of the
cumulative value of an originally-awarded construction
contract for a System Office, affiliate, or constituent institution capital improvement
project previously authorized by the Board of Governors.
4. After the long-term financing of a
capital improvement project has been approved in accordance with statutory
requirements, the president may approve interim financing or bank loans as a
means of short-term financing. The
president shall report any such actions to the Committee on Budget and Finance
at its next meeting.
B. General Delegation of Authority to the President and
Boards of Trustees for the Administration of Design and Construction of Certain
Capital Improvement Projects Using Public Money.
1. In accordance with The UNC Policy Manual, Appendix 1,
Para. VI, the Board of Governors delegates to the boards of trustees, subject
to policies of the Board of Governors and all legal requirements relative to
the construction of state -owned buildings, the responsibility for the
following matters concerning campus capital construction projects which have
been approved by the Board of Governors and authorized by the State of North Carolina:
(1) the selection of architects or engineers for buildings and improvements
requiring such professional services; (2) the approval of building sites; (3)
the approval of plans and specifications; and (4) the final acceptance of
completed buildings and projects. Consistent with UNC Policy 200.1, the
president has authority to execute design and construction contracts for capital
improvement projects; this authority may be delegated.
2. The Board of Governors delegates to the president the
authority for the administration of design and construction contracts for
capital improvement projects, which have been approved by the Board of
Governors and authorized by the State of North Carolina, requiring the
estimated expenditure of public money of $4,000,000 or less. The president’s
authority may be exercised on behalf of the UNC System Office, affiliates, or
the constituent institutions in the president’s discretion, subject to G.S. §
116-31.11.
3. The Board of Governors delegates to the board of trustees
the authority for the administration of constituent institution design and
construction contracts of capital improvement projects, which have been
approved by the Board of Governors and authorized by the State of North Carolina,
requiring the estimated expenditure of public money less than $750,000.
C. Additional Delegations of Authority to the Boards of
Trustees for Administration of Capital Improvement Projects.
1.. Upon request by the board of trustees of a constituent
institution and with the recommendation of the president, the Board of
Governors may delegate to the board of trustees of a constituent institution additional
authority to administer capital improvement projects funded with public money
that are projected to cost less than $2,000,000.[3]
2.
The senior vice president for
finance and administration, in consultation with the senior vice president and
general counsel, shall establish the process by which a constituent institution
may request and maintain delegated authority consistent with G.S. 116.31.11 and
other relevant state law. The minimum
criteria a constituent institution must meet to receive and maintain
authorization from the Board of Governors shall include, but not be limited to,
the following:
a. The constituent institution demonstrates
it has the administrative, technical, and support resources necessary to
properly administer capital projects in compliance with the General Statues of
North Carolina, State Construction Office requirements, and UNC System Office
standards.
b. The chancellor has certified in
writing that the constituent institution will maintain the administrative,
technical, and support resources necessary to properly administer capital
projects in compliance with the General Statues of North Carolina, State
Construction Office requirements, and UNC System Office standards.
c. The constituent institution has an architect
or engineer licensed in the State of North Carolina in a minimum of two key
management positions. At a minimum, the associate vice chancellor over design
and construction of capital projects or equivalent shall be a registered
architect or licensed engineer in the State of North Carolina with substantial
experience in managing capital improvement projects. The requirements for
professional licensure or registration may be waived if the key personnel have comparable
certifications, education, training, and work experience.
d. The constituent institution has
appropriate and sufficient technical and professional staff with demonstrated
capability in the planning, financing, and oversight of capital improvement
projects.
e. An assessment team, assembled and
led by the senior vice president for finance, has reviewed the constituent
institution’s self-assessment, has performed an on-site capabilities appraisal
that confirms the institution’s self-assessment, and has recommended delegation
to the president.
Constituent institutions will be
reviewed for re-authorization under this section on a periodic basis, to be
established by the senior vice president for finance and administration, but
not less than every three years.
3. The president
or the Board of Governors may revoke or suspend the additional delegated authority
of a constituent institution for any reason in its sole discretion. Once
authority has been revoked or suspended all future capital improvement projects
for the institution involved shall be completed in accordance with the General
Statutes of North Carolina and the general delegations of authority provided
for in section II.B of this policy. In addition to the foregoing, the
additional delegated authority for the administration of capital improvement
projects shall be immediately suspended if the position for the associate vice
chancellor over design and construction (or equivalent position) becomes
vacant. Newly established capital projects shall be administered under the
general delegated authority while the position is vacant. The additional
delegated authority will be reinstated when the position is filled consistent
with II.C.2.c of this Policy.
III. Construction
Delivery Method Reporting Requirement. In accordance with G.S. 143-133.1,
constituent institutions that contract with a construction manager at risk,
designer-builder, or private developer under a public-private partnership shall
report to the System Office (in a manner prescribed by the president or the
president’s designee) the following information within 60 days of award for
contracts utilizing such alternative delivery methods:
A.
A detailed explanation of the reason why the
particular construction manager at risk, design-builder, or private developer
was selected;
B.
The terms of the contract with the
construction manager at risk, design-builder, or private developer;
C.
A list of all other firms considered but not
selected as the construction manager at risk, design-builder, or private developer;
D.
A report on the form of bidding utilized by
the construction manager at risk, design-builder, or private developer on the
project; and
E.
A detailed explanation of why the particular delivery method was used in lieu of the delivery
methods identified in G.S. 143-128(a1) subdivisions (1) through (3) and the
anticipated benefits to the public entity from using the particular delivery
method.
The information shall be collectively reported
annually to the Board for all projects awarded during the fiscal year and
submitted with the annual report of the Committee on Budget and Finance.
IV. Procedures and Reporting Requirements. The senior vice president for finance and
administration shall have general authority to establish such procedures and
reporting requirements for constituent institutions and affiliated entities as
may be prudent to enable implementation of this policy and associated
regulations.
V. Other Matters
A.
Effective Date. The requirements of this policy shall be
effective on the date of adoption by the Board of Governors.
B.
Relation to Other Laws. This policy is designed to supplement
and does not purport in any way to supplant or modify, those statutory
enactments and rights which may govern capital improvement projects in the
State of North Carolina.
C.
Regulations and Guidelines. This policy shall be implemented
and applied in accordance with such regulations and guidelines as may be
adopted by the president.
[1]This
delegation of authority shall be interpreted consistent with G.S.
143C-8-12. See also Appendix 1 to The Code and Section 200.6 of the UNC
Policy Manual.
[2]Unless otherwise indicated by the
Board of Governors, this delegation of authority to boards of trustees to
approve advance planning efforts shall not be further delegated.
[3]See endnote
1, above.