All capital works in excess of £100,000.
This definition includes refurbishment projects as well as new build. The financial project limit to be inclusive of fees, VAT, loose equipment and furniture, etc.
Proposals for projects between £100,000 and £2 million will be submitted to the Vice-Chancellor for approval. A proposal will include details of the aims, benefits, risks, timescale, cost and funding of the project. Projects in excess of £2 million and up to £5 million will be submitted to Finance Committee for approval. Detailed schemes for projects in excess of £5 million will be submitted to Council for approval on the recommendation of the Finance Committee.
Any upward revision(s) of the approved project budget totaling up to £250,000 (or, for projects over £2.5 million, 10% of the project budget, subject to a maximum of £500,000), will be subject to approval by the Vice-Chancellor. Any upward revision(s) of the approved project budget more than the upper limit in paragraph 5 but less than £500,000 (or, for projects over £2.5 million, 20% of the project budget, subject to a maximum of £750,000) will be subject to joint approval by the Chair of Council, Treasurer and Vice-Chancellor. Any upward revision(s) of the approved project budget totaling in excess of that specified in paragraph 6 will be subject to approval by Council on the recommendation of Finance Committee.
The project will be controlled by a Project Control Group or the Director of Estates, in the absence of a Project Control Group. All changes having financial implications within contingency sums will be signed off in accordance with the paragraph “Control of Contingencies” set out below. A regular financial report will be presented to the Finance Committee for projects in excess of £2 million, which will include original agreed project budget together with variations since the last meeting and expenditure to date. Finance Committee will also review the design and advise on and monitor the planning and construction process.
Control of Contingencies
Within any capital contract a reasonable sum will be included as contingency. This amount is controlled through the Change Control Record procedure and is intended to provide the initiation, assessment, approval, pricing agreement and implementation of changes to the contract and the project as a whole.
Within limitations the spending of contingencies is controlled through the Director of Estates. Individual variations up to £10,000 and up to 50% of total contingencies would normally be expended by the Director of Estates and monitored by the Project Control Group. Variations above this are subject to the approval of the Director of Finance. The authorised variation limit may vary with the size of the project. Expenditure above the contingency allowance will need to be approved as set out in paragraphs 4 to 6 above.