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Major capital projects control forms for building works and equipment

The major capital projects control forms allow an account to be opened against which expenditure from major capital grants can be charged.


Factsheet

Buildings works

This form (obtainable from the Finance Office) must be completed and submitted to the Director of Finance to allow an account to be opened against which expenditure from major capital grants can be charged. Under no circumstances must orders be raised or expenditure committed until the Director of Finance has authorised this form.

Major capital grants usually result from initiatives by HEFCE, the research councils and charities to fund building works and equipment (e.g. SRIF, JREI). Standard grant announcements, which may include some minor building work, do not fall into this category.

Where the total estimated costs exceed the grant funds available, the additional funding source(s) should be specified and approved by the Faculty Dean. Responsibility for expenditure in excess of grant funds available rests with the grant holding department and will be charged to its operating budget in the absence of additional funding sources.

Separate forms exist for equipment and for building works. Where a major capital grant includes both elements then both forms should be completed. They can be submitted separately. Separate accounts will normally be set up, one for the equipment and another for the buildings.

There is often the necessity to incur fees and other pre-construction costs in relation to the planning of building works before the cost profile can be completed. In this case the Form should be completed with the Pre-Construction Phase section completed but leaving out the Main Works section. The Director of Finance will approve a budget for the pre-construction phase and an account will be set up for expenditure up to that budget. Finance will retain a copy of the Form and the Form itself will be returned to Estates awaiting completion of the Main Works Section. The department responsible for this part of the work should sign off this section. This would normally be Estates, but where this is not the case, the appropriate Head of Department should sign.

Work must not commence on the building itself until the Main Works Section of the Form has been completed and returned to and approved by the Director of Finance and the expenditure profile sent to the project sponsor by the Finance Office. Both the Director of Estates and the Head of Department should sign off this section of the form.

The total cost should be the latest estimate of all the costs associated with the building part of the project and should include the pre-construction element. A summary breakdown should be attached. If this latest estimate exceeds the original cost estimates, the first section of the form should be updated and the Faculty Dean must re-approve the “other funding sources” statement.

Expenditure profiles are required for all projects. This may be a requirement of project sponsors who often pay to a submitted profile but is also required by the University to enable cash requirements to be planned. The expenditure profile for building works should be completed by Estates and attached to the form for the Finance Office to send onto the sponsor. The Finance Office is available to assist in this.

There may be project specific requirements that need to be fulfilled before a project can be activated. E.g. in the case of SRIF projects, Contractual Commitment Notices are required to be submitted to HEFCE along with the profile of expected expenditure.

Where the building works or equipment being funded is divisible into a number of discrete projects, which do not all take place at the same time, a Project Control Form and expenditure profile should be completed prior to each stage. Authority can then be given for that stage to commence.

Any changes in the cost or profile of expenditure after approval of this form must be notified to the Finance Office. Any increase to approved costs must be authorised by way of a revised Project Control Form. No further expenditure may be committed until this is done.

Use the form.

Equipment

This form (obtainable from the Finance Office) must be completed and submitted to the Director of Finance to allow an account to be opened against which expenditure from major capital grants can be charged. Under no circumstances must orders be raised or expenditure committed until the Director of Finance has authorised this form.

Major capital grants usually result from initiatives by HEFCE, the research councils and charities to fund building works and equipment (e.g. SRIF, JREI). Standard grant announcements, which may include some equipment, do not fall into this category.

Where the total estimated costs exceed the grant funds available, the additional funding source(s) should be specified and approved by the Faculty Dean. Responsibility for expenditure in excess of grant funds available rests with the grant holding department and will be charged to its operating budget in the absence of additional funding sources.

Separate forms exists for equipment and for building works. Where a major capital grant includes both elements then both forms should be completed. They can be submitted separately. Separate accounts will normally be set up, one for the equipment and another for the buildings.

The total cost should be the latest estimate of the costs of the equipment and its installation (where not covered within the building works section). It should include non-recoverable VAT.

Expenditure profiles are required for all projects. This may be a requirement of project sponsors who often pay to a submitted profile but is also required by the University to enable cash requirements to be planned. The Finance Office will assist with the preparation of expenditure profiles on the basis of information provided by departments.

A list of equipment items costing more than £10,000 is required to help the Finance Office monitor actual spend against profile.

There may be project specific requirements that need to be fulfilled before a project can be activated. For example, in the case of SRIF projects, Equipment Procurement Applications are required to be submitted to HEFCE along with the profile of expected expenditure. These need to be completed by Purchasing Services in conjunction with the department and forwarded with this form to the Director of Finance.

Where the building works or equipment being funded is divisible into a number of discrete projects, which do not all take place at the same time, a Project Control Form and expenditure profile should be completed prior to each stage. Authority can then be given for that stage to commence.

Any changes in the cost or profile of expenditure after approval of this form must be notified to the Finance Office. In certain cases, the sponsor may need to also be informed. This should be done by the Finance Office.

Use the form.

Frequently asked questions

When is a major capital project control form (lilac form) required?

It is required for any major capital work, which is funded or part funded by a grant. It must be completed and approved before any expenditure is committed.

Which form do I use on a project that has both building and equipment elements?

Use both forms, one for the building element and one for the equipment. This is because separate budgets may have been designated by the sponsor and also because the responsibility for buildings lies with Estates, whereas an academic department may have responsibility for the equipment side.

How do I know if a major grant can be classified as research?

Normally the sponsor is a good indicator. Research councils’ grants would normally be classed as research, whereas HEFCE grants cannot be. If it is not a HEFCE grant, then the first point of contact will normally be the Research Support Unit.

I have completed a lilac form for an equipment grant, do I also have to complete a Purchasing Services Blue Form when I come to order the items?

The lilac form covers the total expenditure. If the budget is only to fund one item, then the form could also double as the Blue Form, provided that details of tenders/quotes are attached. Where the budget is to be spent on a number of equipment items, some of which cost over £10K, then each order over £10K must be preceded by a Blue Form.

What happens if the expenditure exceeds the grant funds available?

For equipment purchases, where the budgetary responsibility lies with the department, then any excess of costs over funding will be charged to the department’s operating budget.

What happens when the project is complete, ie all the funding has been spent?

Let the RSU or Finance Office know as soon as possible. There is likely to be have to be a final claim and possibly a completion statement to be completed. In some cases the sponsor may require an audit before releasing the final tranche of funding.

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