FISCAL PROCEDURE NUMBER

  • 4-1 Capital Construction Administration
  • 4-2 Capital Construction Projects
  • 4-3 Capital Construction Project Retainage

Procedure 4-1 CAPITAL CONSTRUCTION ADMINISTRATION

The State Capital Construction Fund was established to provide a source for appropriations to State Agencies and Institutions of Higher Education to acquire and maintain their physical facilities. The fund has special requirements that must be followed by State Agencies and Institutions of Higher Education receiving appropriations from the fund.

Capital Construction Contracts

  • .01 Formal contracts shall be required when expending funds in excess of $100,000 appropriated for Emergency maintenance projects including construction services or Installation of fixed equipment unless previous approval has been obtained from the Director of the State Buildings Program to use a Purchase Order. Purchases of fixed equipment that do not require Installation services may be purchased with a University Purchase Order. A Purchase Order may be used for construction not exceeding $100,000 if the Director of State Buildings Program records written approval on the face of the Purchase Order. Such approval by the Director of State Buildings Program shall require compliance with approved building codes and signify compliance with bonding requirements in C.R.S. 38-26-106 and 24-105-201. In addition, the Purchase Order shall be bilateral requiring written acknowledgment of acceptance by the contractor prior to the beginning of work.
  • .02 Capital Construction Fund contracts shall follow the contract routing procedures established by the University Controller's Office.

Procedure 4-2 CAPITAL CONSTRUCTION PROJECTS

All funds appropriated for Capital Construction Projects shall be used for their intended purpose. The University shall not use the Capital Construction Fund to pay or reimburse University employees for construction management, administrative activities, direct labor performed, or any other expense outside the scope of the Capital Construction or Controlled Maintenance Project.

Contracts funded by the State Capital Construction Fund shall be executed and the funds encumbered within the time limits established by 24-30-1404, C.R.S. If the University determines that the deadlines imposed by the statute cannot be met, the University may request the Capital Development Committee to recommend to the State Controller that the deadline be waived. The State Controller may grant the waiver request.

Procedure 4-3 CAPITAL CONSTRUCTION PROJECT RETAINAGE

The University shall withhold retainage for all Capital Construction and Controlled Maintenance Projects where the total amount of the contract exceeds the limit established by 24-91-103, C.R.S. The retainage shall be in the form of monies withheld from the contractor or in any other form authorized by statute and acceptable to the University. The retainage shall be released by the University only when the contract has been satisfactorily completed and accepted, the University has proof of publication of "Notice of Final Settlement", in accordance with 38-26-107, C.R.S., and there are no outstanding claims against the project.