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Government Operations - Facilities Construction and Management - Delegation of Project Management


Published: 2021-07-02

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R23. Government Operations, Facilities Construction and Management.
R23-29. Delegation of Project Management.
R23-29-1. Purpose.
This rule provides the procedures for delegation of construction projects to the University of Utah, Utah State University, and the Utah Department of Transportation, hereinafter referred to as "Entity" or "Entities." This rule also provides for the use of Partnering Agreements between the Division of Facilities Construction and Management (DFCM) and State Agencies, including the Entities.
R23-29-2. Authority.
This rule is authorized under Subsection 63A-5-103, which directs the Utah State Building Board, hereinafter referred to as "Board" to make rules necessary for the discharge of its duties and the duties of the Division of Facilities Construction and Management.
R23-29-3. Authority and Extent of Categorical Delegation.
(1) Projects Delegated on a Categorical Basis. As permitted by subsection 63A-5-206(4)(a)(i), authority is delegated to the University of Utah, Utah State University, and the Utah Department of Transportation (UDOT), to exercise direct supervision over the design and construction of all projects on their respective properties or facilities up to the dollar amounts stated below.
(2) Delegation Dollar Limitations. The delegation referred to in this Rule is granted to the Entities for projects having a budget for construction, excluding soft costs, consistent with the DFCM Construction Budget Estimate (CBE) form, of:
(a) $4,000,000 or less for Utah State University;
(b) $10,000,000 or less for the University of Utah; and
(c) $350,000 or less for the Utah Department of Transportation.
R23-29-4. When Delegation Above Limits Allowed.
Delegation to the Entities may be allowed above the limits indicated above in this Rule when the Board in a meeting to which the particular Entity and DFCM has an opportunity to provide input, determines that there is a substantial justification that the project should be managed by the particular Entity. The Board may also determine that the particular project should be managed with specific roles defined for DFCM and the particular Entity.
R23-29-5. No Artificial Division of Projects.
Projects may not be divided into multiple projects in order to create projects which are small enough to meet the dollar limits for delegation. Projects that are designed to be constructed in conjunction with each other and are to be constructed by the same construction contractor, including construction manager/general contractor, are projects that are prohibited from being artificially divided under this Rule.
R23-29-6. When Legislative Authorization and a Program Is Required.
When applicable, this delegation authority shall not take effect for a specific project until the following requirements are met:
(1) legislative authorization, when required, for design and construction has been obtained for the construction of all New Facilities; and
(2) the requirements of Rule R23-29-20 below regarding the completion of a DFCM administered architectural program have been satisfied.
R23-29-7. Delegation Agreements.
The Board, at a meeting to which the particular Entity and DFCM has an opportunity to provide input, may require that delegation agreements designating the various responsibilities of the parties be executed prior to the commencement of the project under a project-specific delegation referred to in this Rule. For categorical delegations and project-specific delegations, DFCM and the particular Entity may enter into partnering agreements under Rule R23-29-24.
R23-29-8. Fiduciary Control and Codes.
(1) The Entity to whom control is delegated under this Rule shall assume fiduciary control over project finances, and shall assume all responsibility for project budgets and expenditures.
(2) Delegation of project control does not exempt the Entity from complying with all requirements for design and construction adopted by DFCM or the Board as well as all applicable laws, rules and codes.
(3) The Entity may not access for the delegated project, DFCM's statewide contingency reserve and project reserve authorized in Section 63A-5-209.
R23-29-9. Building Official.
UDOT shall use the DFCM Building Official. The University of Utah and Utah State University shall use an in-house Building Official or contract for a Building Official; all as approved by the DFCM Building Official.
R23-29-10. Procurement.
The Entity shall comply with the Utah Procurement Code, Title 63G, Chapter 6a of the Utah Code and all applicable procurement rules.
R23-29-11. Contract Documents.
The Entity shall utilize substantially the same standard Contract Documents as used by DFCM. Any substantive differences must be approved by DFCM.
R23-29-12. Transfer of State Funds.
(1) To the extent possible, state funds appropriated to DFCM for projects delegated to the Entity shall be transferred to the respective Entity in a timely manner upon the receipt of such funds by DFCM and on a reimbursement basis after providing supporting documents as required by DFCM.
R23-29-13. Contingency Funds, Contingency Reserve and Project Reserve.
The Entity shall be subject to the same laws and rules regarding contingency funds as is DFCM except that:
(1) contingency funds for delegated projects shall be segregated from the contingency funds held by DFCM for non-delegated projects; and
(2) the Entity may not access for the delegated project, DFCM's statewide contingency reserve and project reserve authorized in Section 63A-5-209.
R23-29-14. Space Standards.
The Entity shall comply with the space standards as adopted by the Board. Any significant deviations from these standards must be approved in advance by the Board.
R23-29-15. Design Criteria.
The Entity shall utilize the Design Criteria adopted by the Board. These may be supplemented by special requirements that are unique to each Entity.
R23-29-16. Value Engineering.
The Entity shall comply with applicable laws and rules regarding the value engineering and life cycle costing of facilities. DFCM may assist the Entity as requested in the performance of these reviews.
R23-29-17. Record Drawings.
At the completion of each delegated project, each Entity shall be responsible for retention of record drawings and shall submit a copy of all record drawings of any new facility to DFCM as well as record drawings for any other project when requested by DFCM.
R23-29-18. Specific Statutory Requirements.
(1) In addition to the statutory requirement specified elsewhere in this rule, each Entity shall comply with the following requirements:
(a) laws relating to retention;
(b) laws relating to the notification to local governments or any person regarding certain types of projects;
(c) the Percent-for-Art program as provided in the Utah Code;
(d) Section 63A-5-206 relating to the reporting of completed projects to the Office of the Legislative Fiscal Analyst;
(e) Section 63A-5-208 relating to the listing and changing of subcontractors and the disclosure of subcontractor bids; and
(f) all applicable constitutional provisions, laws, rules, codes, and regulations.
R23-29-19. Reporting.
(1) The Utah Department of Transportation, the University of Utah and Utah State University shall report monthly to the Board on the status of its delegated projects.
(2) The Board may at any time indicate minimum requirements for reports as well as ask for further information.
(3) The above reports shall be submitted to the Building Board staff in accordance with the schedule established by the Building Board staff.
R23-29-20. Programming for Delegated Projects.
(1) For delegated projects within the definition of "New Facility" as defined in Title 63a, Chapter 5, Utah Code, a facility program shall be developed under the supervision of DFCM unless this requirement is waived by DFCM.
(2) For delegated projects where a program is not required under this Rule, the Entity may determine the extent of programming or scope definition required and supervise the development of these documents.
R23-29-21. Sharing of Resources.
DFCM and the Entity shall coordinate to share personnel resources in order to make sure that all personnel resources from both the DFCM and the Entity are sufficient for the delegated project. The Entity and DFCM shall enter into a separate agreement to accomplish this sharing of resources.
R23-29-22. Review of Delegated Projects.
Upon direction of the Board, DFCM staff may review the management of delegated projects and report its findings to the Board.
R23-29-23. Authority to Modify Delegation.
The Board may modify or repeal the authority delegated under this Rule by amending or repealing this Rule as well as by taking action to remove the delegation for a particular project when necessary to protect the interest of the State of Utah, at a Board meeting to which the applicable Entity and DFCM are given an opportunity to provide input.
R23-29-24. Partnering Agreements.
DFCM may execute partnering agreements with any State entity, or any public entity as allowed by law, in which the responsibilities, terms and conditions of the various parties are described. This may include, but is not limited to, allocation of specific responsibilities associated with the project in order to avoid duplicated efforts.
KEY: buildings, delegation
Date of Enactment or Last Substantive Amendment: June 9, 2014
Notice of Continuation: March 6, 2019
Authorizing, and Implemented or Interpreted Law: 63A-5-206