D. Construction

1.   General Policy Relative to Construction

1.1   Construction project contracts shall be awarded following an open, competitive process which can include Design/Build, Construction Management and traditional Lump Sum bidding methods. The Chancellor shall develop and implement prudent procedures establishing the form and application of the competitive processes and will ensure the processes comply with generally accepted purchasing guidelines. The Financial Affairs Committee must review and approve all construction contracts where USNH did not use a competitive bidding process.

1.2   The Chancellor may delegate to campus Chief Executive Officers and their staffs the responsibility for the design and development of campus construction projects, including the selection of architects. The degree of delegation possible depends on the availability of necessary administrative resources for such projects. Where volume of activity is insufficient to justify separate campus staffs to administer such projects, central services are provided by the Chancellor's Office. The Chancellor reviews and approves initial estimates of capital budget projects, presents projects for consideration by the appropriate Committees of the Board, maintains fiscal control, and reports to the State on all projects supported by capital appropriations. All capital projects with costs in excess of $250,000 shall be reported to the Chancellor's Office. Permanent records of capital appropriation projects are held in the Chancellor's Office.

1.3   For each construction project with a change of use or expansion of existing square footage which costs in excess of $1,000,000, the Programs and Services Committee approves a Program/Needs Assessment which outlines the proposed project scope and includes a detailed project budget, prior to inclusion of the project on the USNH Capital Project Schedule (two year). The Financial Affairs Committee subsequently approves Schematic Design Documents for all such projects in excess of $1,000,000 to ensure their conformance to the Program/Needs Assessment. Any other capital project which costs in excess of $1,000,000 and not currently included in the Financial Affairs committee approved USNH Capital Projects Schedule (two year) must be approved by the Financial Affairs Committee.

1.4   Any change order on a Trustee-approved project which, either, individually or when aggregated with other approved and proposed change orders on the same construction project, either materially alters the design of the project or increases the total project cost by more than $100,000, or five percent (5%), whichever is greater, must be approved by the Financial Affairs Committee.