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(c)2014 Archdiocese of Los Angeles
Capital Improvements
Policies & ProceduresFY2015 Edition – rev. 1
2
Capital Improvements
• “Construction” Capital Improvement Projectso New Buildings / Structureso Existing Facilities & Buildings• Maintenance & Repairs• Additions• Renovations / Remodels
o Major Property Insurance Claims involving Buildings (Replacement)
Construction
3
Planning & Preparation
• Key Steps to Executing a Construction Capital Improvement Project (an overview)o Scopeo Budgeto Scheduleo Fundingo Approvalso Contractso Payments
An Overview
4
Planning & Preparation
• Scopeo Define the parameters of Construction Capital
Improvement Project• Identify Project Requirements• Prepare a written description of Work and/or
Drawings (as needed)• Communicate Expectations• Quality
• Prioritize Work (as needed)
An Overview
5
Planning & Preparation
• Budgeto Establish a Project Budget based on defined Scope• Obtain Cost Proposal / Estimate from:• Contractor / Vendor• Design Professional or• Cost Estimator
o Project Phases & Costs• For Larger Construction Project requiring Design,
Engineering, Plan Check & Permits
An Overview
6
Planning & Preparation
• Budgeto Project Phases & Costs• Design / Engineering• Plan Check / Permit Fees• Bidding• Environmental Hazard Abatement (if needed)• Construction Costs• Contingency
An Overview
7
Planning & Preparation
• Scheduleo Do not wait until the last minute to request
approvals, vendor pre-qualification or contracts
o Establish a Project Completion Dateo Consider Contingency / Alternative Planso Consider Parish / School Events & Schedules
(i.e. Summer School, etc.)
An Overview
8
Planning & Preparation
• Scheduleo Allocate adequate time for:
• Approvals• Scope Definition
• Design / Engineering• Drawings / Specifications• Requests For Proposal• Plan Check / Permits
• Bidding / Multiple Proposals• Contracts• Construction• Close Out
An Overview
9
Planning & Preparation
• Fundingo Requires 100% Funding – Cash On Hand• including Contingency
o Note: If Total Project Costs exceeds $20,000• Deposited in Parish or School restricted Investment
Pool Building Fund Account
An Overview
10
Planning & Preparation
• Approvals (if total project costs exceeds $20,000)
o Auxiliary Bishop (except Archdiocesan High Schools)• Pastor sends written letter requesting approval
o Financial: ACC Finance Office (Financial Services)
o Vendor: Recommended Vendor or Pre-Qualified
An Overview
11
Planning & Preparation
• Approvals Dependent on Scope (if total project costs exceeds $20,000)
o School Projects – Contact Department of Catholic Schools
o Liturgical Projects – Contact ACC Office for Worship• May require review of Liturgical Design Review
Committee (“LDRC”)
Note: See Policies & Procedures section for more specific details and requirements.
An Overview
12
Planning & Preparation
• Contractso Total Project Cost Less Than or Equal to $20,000• Use Recommended ACC Small Construction Project
Contracto Total Project Costs Exceeds $20,000• Use Only ACC Standard Contracts
• Contact the ACC Construction Department
Note: See Policies & Procedures section for more specific details and requirements.
An Overview
13
Planning & Preparation
• Payments (if total project costs exceeds $20,000)o Submit Completed Investment Pool Request
Form• Withdrawal from Investment Pool Building Fund
Account that contains Deposited Project Funding
o Attach Invoice & Supporting Documentation
Note: See Policies & Procedures section for more specific details and requirements.
An Overview
14
Policies & Procedures
• Requirements & Approvals
• Consultants / Contractors / Vendors
• Volunteers
• Environmental Hazards
• Resources
Capital Improvements
15
Policies & Procedures
REQUIREMENTS & APPROVALS BASED UPON PROJECT CLASSIFICATION• Minor Projects
o Less than or equal to $20,000 = Local Approval except under special circumstances
• Major Projectso Greater than $20,000 but less than or equal to $1,000,000o Greater than $1,000,000 requires Building Commission approvalo Greater than $2,000,000 also requires Outsourced Project Manager
Classification is based on the Valuation & Total cost of Project, not the cost of individual parts
Capital Improvements: Requirements & Approvals
16
Minor Project RequirementsPolicies & Procedures: Requirements & Approvals
o Funding• Parish / School has 100% of funds available (including Contingency)
o Authorized to Execute Contracts• Pastors (for Parishes, Elementary Schools & Parish High Schools)• Principals of Archdiocesan High Schools
o Contractors• Valid license in the State of California• Minimum Insurance Requirement
o Contract• Archdiocese recommends use of ACC Standard Small Construction
Contract (available in Administrative Handbook on Archdiocese web site, under Publications)
17
Minor Project Requirements
• ACC Standard Small Construction Project Contract (Terms & Conditions)o Offered for Parish or School projects <= $20,000o Developed by ACC Legal Counsel & Construction Department
• Use instead of Contractor Proposals or Contracts
• Suitable for General Contractors and Specialty Trade Contractors (i.e. Roofing, Plumbing, Electrical, etc.)
Policies & Procedures: Requirements & Approvals
18
Minor Project Requirements
• To obtain an Adobe PDF copy of the Contract, access the Archdiocese web site:o http://handbook.la-archdiocese.org
o Select “Chapter 7 – Facilities”
o Search for the link to the “Small Construction Contract”
Policies & Procedures: Requirements & Approvals
19
Minor Project: Key Tips
• Obtain at least 3 Bids / Proposals
• Get Project Expectations in Writing(Price, Scope & Schedule)
• Be cautious when signing Proposals / Contracts prepared by Contractors
• Beware of the fine print!• Only sign the contract if you completely understand the terms
• Confirm the Contractor has Workers’ Compensation Insurance for their employees
• Check the State of California Contractors State License Board Web Site at: http://www.cslb.ca.gov to perform a License Check
Policies & Procedures: Requirements & Approvals
20
Minor Project: Key Tips
• Don’t pay cash
• Don’t let the payments get ahead of the work completed, and don’t pay the full cost of the job up-fronto Contractors should not ask for a deposit of more than 10% of the total
cost of the job or $1,000, whichever is less, unless the contractor provides a bond or bond equivalent ensuring completion of your contract.
• Hold Retainer payments until job is completed
• Ask for Lien Releases
Policies & Procedures: Requirements & Approvals
21
Minor Project: Exceptions
• Contact the ACC Construction Department for Consultation & Review if your project involves:o Asbestos, Lead & Moldo Structural Renovationo Structural Modificationso Conditional Use Permits (CUP)o Day Care Facilitieso Pre-School Facilities
• If you have questions, call uso (213) 637-7850
Policies & Procedures: Requirements & Approvals
22
Major Project Requirements
$20,000 and <= $1,000,000Required Approvals• Regional Bishop (except
Archdiocese High Schools)• Office For Worship (if Liturgical
Project)• Superintendent (if School Project)• Financial (before contract)
Funding• 100% or approved ADLA Loan /
Line of Credit (“LOC”)• Deposited in Parish / School
restricted Investment Pool
Bidding• Competitive Bid
Contracts• ACC Standard
> $2,000,000Required Approvals• Same as left
Funding• Same as left
Bidding• Same as left
Contracts• ACC Modified AIA
Agreement
+Outsourced 3rd Party Project Manager
> $1,000,000Required Approvals• Same as left• + Archdiocesan Building
Commission
Funding• Same as left• +Archdiocese Cash Flow
Model / Chart
Bidding• Same as left
Contracts• ACC Standard or ACC
Modified AIA Agreement
Policies & Procedures: Requirements & Approvals
23
Major Project Requirements
$20,000 and <= $1,000,000Payments• Submit completed & signed
Archdiocese Investment Pool (“IP”) Withdrawal Request
• Attach invoices and supporting documentation
• Funds from restricted Parish / School IP Account
• Reviewed by ACC Construction Department
• Payments processed by ACC Financial Services
Closeout• Project review by Parish /
School and Archdiocese representative
• Lien Releases
> $2,000,000Payments• Same as left
Closeout • Same as left
+ Outsourced 3rd Party Project Manager
> $1,000,000Payments• Same as left• + Attach completed &
signed AIA Payment Application (if contract issued on ACC Modified AIA Agreement)
Closeout• Same as left• + Punch List (if contact
issued on ACC Modified AIA Agreement)
Policies & Procedures: Requirements & Approvals
24
Major Project Requirements
$20,000 and <= $1,000,000
Typical Projects• Painting• Roofing: Repairs &
Replacement• Paving: Repairs &
Replacement• Plumbing: Repairs,
Infrastructure Replacement & New Fixtures
• Electrical: Repairs, Upgrades and Improvements
• HVAC: Repairs, Upgrades• Lighting• Asbestos (ACM) Abatement
> $2,000,000Typical Projects• New Buildings• Large Scale Existing
Building Renovations• Conversion of Large
Existing Buildings – Change of Occupancy & Use
> $1,000,000Typical Projects• Existing Building
Renovations• Conversion of Existing
Buildings – Change of Occupancy & Use
• Synthetic Turf Fields• Site Improvements
Policies & Procedures: Requirements & Approvals
25
Major Project Requirements
• Additional Approvals Requiredo Auxiliary Bishop (except Archdiocesan High Schools)• Pastor sends written letter requesting approval
o Financial: ACC Finance Office (Financial Services)
• Additional Approvals Dependent on Scopeo School Projects – Contact ACC Education Department• Superintendent of Elementary Schools • Superintendent of Secondary Schools
o Liturgical Projects – Contact ACC Office for Worship• May require review of Liturgical Design Review
Committee (“LDRC”)
Policies & Procedures: Requirements & Approvals
26
Major Project Requirements
• Consultation & Reviewo ACC Construction Department
• Fundingo Parish/School has 100% of funds available for the project or
qualify for a short term Archdiocesan Construction Loan / Line of Credit (“LOC”)
o Funds deposited in restricted Investment Pool Account before Contract is issued
• Master Plan/Maintenance Plano Proposed Project conforms with Approved Master Plan for the
Parish/School (excludes Maintenance Projects)o Parish/School has a Facilities Maintenance Plan
Policies & Procedures: Requirements & Approvals
27
Major Project Requirements
• Biddingo Competitive Bids (Minimum of 3) from Pre-Qualified
Contractors• Contractors who are not on the Pre-Qualified List must
complete the Pre-Qualification Process and meet minimum Archdiocesan requirements
o Negotiated / Guaranteed Maximum Pricing (instead of Competitive Bids) requires prior approval of the Archdiocesan Building Commission
Policies & Procedures: Requirements & Approvals
28
Major Project Requirements
• Contractso ACC Standard Agreements Only
• Archdiocese Small Construction Contract • Custom Modified AIA Contracts
o Construction Department prepares contracts on behalf of Parish/School
Policies & Procedures: Requirements & Approvals
29
Financial Approval
• Pre-Requisites for ALL Major Projectso Credit Check / Evaluation
• Evaluation required before fundraising or designo No outstanding past due Accounts Receivables (i.e.
Medical, “MI” - Monthly 1/12th)o Any existing Archdiocese Loans / Lines of Credit (“LOC”)
need to be paid in fullo Parishes or Schools on subsidy are subject to further
review• May require a meeting with an ACC Financial Services
Department representative
Policies & Procedures: Requirements & Approvals
30
Financial Approval
• Financial Analysiso ACC Construction Department works in collaboration with
ACC Financial Services Department to conduct a review and prepare analysis for evaluation
o Cost Datao Funding Review
Policies & Procedures: Requirements & Approvals
31
Financial Approval
• Cash Flow Model & Chart o Required for Projects involving a Construction Loan / Line of
Credit and large major projects (> $1M)o Parish / School submits Project Cost Data and Funding
Informationo Construction Department assists in preparing cost
distribution using provided Cost Data• Where possible, a Project Manager or designated
representative for the Parish / School prepares the distributiono An ACC Financial Analyst prepares funding distribution using
Pledge Schedules provided by Parish / School
Policies & Procedures: Requirements & Approvals
32
Major Projects > $1M
• Typically NOT a Summer Project
• Requires Extra Preparation Time Due To:o Planning
o Additional Required Approvals
Policies & Procedures: Requirements & Approvals
33
Major Projects > $1M
• Additional Required Approvalso Archdiocesan Building Commission• Conceptual Plan Review & Approval• Master Plan Review & Approval• Conceptual/Schematic Design Review & Approval
• In some instances, the Master Plan and Conceptual/Schematic Design Review may be combined
o Financial Review & Approval• Before Bidding• After Receipt of Bids, Prior to Issue and Award of
Contract
Policies & Procedures: Requirements & Approvals
34
Major Projects > $2M
• Additional Requirementso Project Management• Parish / School must hire outsourced Pre-Qualified
Owner’s Project Manager (“PM”)• PM responsibilities include: managing project scope,
schedule, budget, entitlements, bidding, bid analysis, oversight of design & construction, progress payments, change directives, change orders, and close out documentation
Policies & Procedures: Requirements & Approvals
35
Consultants / Contractors
• Recommended Listo Consultants, Contractors, Specialty Trades &
Vendors• Recommendations based on history of successful
past performance• Pre-Qualified List
o Firms completing the evaluation process• Usually for a specific Parish / School project, but may
have not completed an entire project• Lists are updated periodically by ACC
Construction Department
Policies & Procedures
36
Consultants / Contractors
• Submittal For Pre-Qualificationo Requires Recommendation from Parish or School• Only for specific Parish or School project• No referral of candidates for other Parishes/Schools
• Written letter from Pastor (Parish or Parish School) or Principal (Archdiocesan High School)• Candidates• Completes Pre-Qualification form including List of
References• Evaluation and Interviews• Submits required Certificates of Insurance
Policies & Procedures
37
Consultants / Contractors
• Minimum Pre-Qualification Requirementso Valid and current State of California license for
applicable profession or trade• 5 years of continuous operations under current
business name / license and in good standingo Valid Insurance• General Liability, Workers’ Compensation, Auto and
where applicable, Professional Liabilityo Referenceso Acceptance of Archdiocese contract terms and
conditions
Policies & Procedures
38
Volunteers• Volunteer Construction Work
o Discouraged Due To• Risk of Injury
• Lack of experience increases risk of accidents
• Liability Exposure• Costs due to injury can offset or exceed cost of paying a qualified,
licensed and insured Contractor
• Warranties• None provided by volunteers
o Requirements for Volunteers Performing Services Normally Requiring a License (if Paid)• Under Supervision of Licensed Contractor• Requires Proper Insurance Coverage
Policies & Procedures
39
Volunteers• Volunteers Should Not :
o Work Above Ground Levelo Use Ladders, Scaffolding, Platforms, Liftso Perform Electrical Repairso Use Power Toolso Be assigned to Strenuous Labor, Lifting, Hoistingo Work around Environmental Hazards• Examples
Policies & Procedures
40
Environmental Hazards
• Proposed Maintenance, Repairs or Construction (New, Additions, Remodel, Renovation or Demolition) may trigger required abatement of:
o Asbestos / Asbestos Containing Materials (“ACM”) / Asbestos Containing Building Materials (“ACBM”)
o Lead, Lead-Based Paint (“LBP”), Lead Glazing on Ceramics, Lead Containing Building Materials
o Mold
Policies & Procedures
41
Environmental Hazards
• If in doubt, before beginning a proposed construction project:o Contact the ACC Construction Departmento Conduct an Inspection, Site Survey and
Assessment using a Certified Consultanto Obtain a written Report with recommendationso Conduct necessary abatement using Certified
Abatement Contractors
Policies & Procedures
42
Resources• ACC Construction Department
o Contact Information• Phone: (213) 637-7850• Email: [email protected]
Policies & Procedures
43
Resources• Publications & Guidelines
o Administrative Handbook• Chapter 7: Facilities
o Archdiocesan Building Commission Construction Policies
o Construction Project Checklisto “Solar Panel Power System Advisory” dated March 30,
2011• Issued to ALL Pastors, Administrators, Principals and
Business Managers
Policies & Procedures