Capital Program Planning Process Definitions

Definitions for common terms related to the Capital Program Planning Process are defined below.

Project Categories

Each project is categorized into only one of the five major project type buckets:

• New Construction (typically ≥$2M)

  Design and construction of large-scale new building (or building addition), infrastructure, or improvement.

• Major Renovation (typically ≥$2M)

  Design and construction of large-scale renovation and reconfiguration of existing facility or infrastructure to meet academic, research, engagement, or administrative priorities.

• Repair and Rehabilitation (can be ≥$2M)

  Repair, replacement, or restoration of a space, system or component to an appropriate level of condition and functionality and small-scale renovation and new construction utilizing Operating Funds. (Vast majority of projects, use this bucket unless otherwise directed by Capital Asset Management.)

• Utilities (can be ≥$2M)

  New utility infrastructure, or repair or replacement of existing utility infrastructure. UIR (utilities infrastructure reserve) funded work - WL campus utilities only.

• Master Plan

  Dynamic long-term planning exercise that provides a guide for future long-term vision for capital investment needs for an overall unit and not for a specific building or project. Studies needed to prepare for identified projects such as specific space, building or room construction should be classified in the same project category (i.e. New Construction, Major Renovation, Repair and Rehabilitation, Utilities) as the future related project and not as a Master Plan.

The University-wide Initiatives bucket is only to be used for creating a collection.

Project Bucket by Funding Source

Funding sources that may be used for each defined project type are listed with "Yes" in the table below.

	Operating	Operating-Carryforward/Reserves (see below for details)	Non-Operating
New Construction	No	Yes	Yes
Major Renovation	No	Yes	Yes
Repair and Rehabilitation	Yes	No	No
Utilities	Yes	No	No
Master Plan	Yes	No	No

Funding Sources for Major Renovation and New Construction

• Bond Revenue
• Project-specific state appropriations
• Project-specific gifts/grants
• Specific operating carryforward/reserves
  • Gift or restricted fund carryforward/reserves
  • Unrestricted carryforward/reserves when used to backstop project-specific gifts/grants
• Institutional reserves

Annual Target Budget (Repair and Rehabilitation and Utilities (UIR) projects)

Includes segment-level target budgets for Repair and Rehabilitation (R&R) and Utilities capital program needs based on historical trends. Total estimated cost of planned projects plus Segment Contingency shall not exceed the segment target budget (i.e. no variances or special R&R projects above the target budget are permitted).

Segment Contingency

Fiscal budget allowance for addressing all R&R/UIR emerging project needs for a segment outside of the approved project list. Emerging project needs can be one of three types: Unplanned Break/Fix, Overage, and Unplanned Requirement.

Unplanned Break/Fix

Unforeseen condition requiring project in current fiscal year to maintain function and/or protect assets or people, e.g. leaky roof, equipment failure.

Overage

Unexpected increase in cost above approved project budget to execute required scope. 

Unplanned Requirement

Unplanned opportunity requiring project or study in current fiscal year to meet strategic needs and appropriately utilize available resources. Deferral would result in lost net revenue or significantly and adversely affect the academic or research progress of the college or department, e.g. new faculty hire, research grant award.

Segments that may receive restricted funds mid-year specifically for use on R&R projects (e.g. grants, gifts) should manage these potential projects within their contingencies as Unplanned Requirement projects.