Ministry of Advanced Education
Version 1.2March 31, 2014
INNOVATION BUSINESS CASE
REPORT CAPITAL ASSET REFERENCE GUIDE:
TABLE OF CONTENTS
EXECUTIVE SUMMARY............................................................................................................. iii1.0 PROJECT DESCRIPTION..................................................................................................42.0 BACKGROUND INFORMATION........................................................................................63.0 STRATEGIC ALIGNMENT................................................................................................74.0 ENVIRONMENT ANALYSIS..............................................................................................95.0 PROGRAM DELIVERY OPTIONS ANALYSIS....................................................................106.0 DETAILED FINANCIAL ANALYSIS..................................................................................187.0 PRELIMINARY RISK ASSESSMENT................................................................................228.0 CONCLUSIONS & RECOMMENDATIONS.......................................................................239.0 IMPLEMENTATION STRATEGY......................................................................................24
OTHER RESOURCES FOR THE INNOVATINO BUSINESS CASE REPORT....................................28APPENDICES FOR THE BUSINSES CASE REPORT....................................................................29
EXECUTIVE SUMMARY Provide a summary for each section of the Innovation Business Case Report
PROJECT DESCRIPTION
BACKGROUND INFORMATION
STRATEGIC ALIGNMENT
ENVIRONMENT ANALYSIS
PROGRAM DELIVERY OPTIONS ANALYSIS
DETAILED FINANCIAL ANALYSIS
PRELIMINARY RISK ASSESSMENT
CONCLUSIONS & RECOMMENDATIONS
IMPLEMENTATION STRATEGY
Innovation Business Case Report | iii
1.0 PROJECT DESCRIPTION1.1 Project Objectives
Category 5: Innovation Projects are driven by the need to improve efficiency in the delivery of core programs and yield a net positive financial return over the lifecycle of the capital asset. Please refer to Section 3.0 Categories of Projects of the CARG for more details.
Identify and state the project objectives in the context of the strategic and business drivers as stated in the Institutional Accountability Plan & Report. Drivers can be related to demographics, program changes, technology, economic or business changes, environmental, social changes, or legislation.
- For example, accommodate 25% of the forecast demand of trades and technology workers in the region, in the next 5 years
- For example, the project will provide new access for a certain number of FTEs annually
- For example, reduce deferred maintenance backlog in the chemistry building
Objectives must be clear and measurable within a specified timeframe
1.2 Project Scope Describe the project scope , which will be used to determine the preliminary
project cost estimates, including total project capital and operating costs Provide an initial estimate of the space requirements based on user needs
(student surveys, interviews, workshops, etc.), Translate the user needs into space requirements using the Ministry’s budget model and space standards:
- Post-secondary Institutions Capital Budget Model - BC Universities Space Manual - BC College, University College, and Institute System Space Standards
Review Include the number of FTEs the project will accommodate For projects where the scope/design is not well defined, provide cost
estimates based on comparable projects
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1.3 Project Outcomes Describe the concrete results necessary to meet the project objectives For example, new academic programs are required to meet forecast demand
for ## workers. As a result, an academic building of XX square meters must be completed by YYYY
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RESOURCES Institutional Accountability Plan & Report 5 Year Capital Plan FTE and space utilization rate Ministry’s Space Standards Ministry’s Budget Model
2.0 BACKGROUND INFORMATION2.1 Current Situation
Describe the events leading up to the opportunity presented Section 1.1 Opportunity Description
Describe the risks of maintaining status quo- For example, unable to meet regional demand for trades and
technology graduates
2.2 Demand Describe the need and indicate the current and forecast demand for the
proposed capital asset Analyze relevant reports, data, or trends using tables/figures relating to the
opportunity, including those identified in the following:- BCStats Population Projections (P.E.O.P.L.E.) - Provincial data on labour trends
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RESOURCES BCStats Population Projections (P.E.O.P.L.E.) Provincial data on labour trends
3.0 STRATEGIC ALIGNMENT3.1 Stakeholder Identification
List stakeholders (both internal and external) and provide a description of why they are/should be invested in this opportunity
Include other ministries with similar goals and objectives
Table 3-1. Stakeholder Identification
StakeholderInternal/External(I or E)
Role
The MinistryStakeholder #2Stakeholder #3Stakeholder #4Stakeholder #5Stakeholder #6
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3.2 Stakeholder Alignment Refer to each stakeholder’s strategic initiatives and business plan to identify
how the proposed project supports their goals Impact refers to the degree to which the proposed project facilitates the
stakeholder’s goalsTable 3-2. Stakeholder Alignment
The Ministry
Goal How the Institution’s Opportunity Supports the Stakeholder’s Goals
Impact(High, Medium, Low)
1.2.3.
STAKEHOLDER #2
Goal How the Institution’s Opportunity Supports the Stakeholder’s Goals
Impact(High, Medium, Low)
1.2.3.
STAKEHOLDER #3
Goal` How the Institution’s Opportunity Supports the Stakeholder’s Goals
Impact(High, Medium, Low)
1.2.3.
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RESOURCES Ministry Business Plans Cross-ministry initiatives
4.0 ENVIRONMENT ANALYSIS4.1 Environment Scan
Identify similar initiatives to the proposed project and summarize the findings in the table below
Table 4-1. Similar Initiatives in Other Jurisdictions SummaryPost-secondary
Institution/Project Name
Type of Project (New Build, Expansion,
Maintenance, etc.)
Programs
Delivered
Scope Cost Risks Impact on Job Creation
Institution #1Institution #2Institution #3Institution #4Institution #5
4.2 Lessons Learned Summarize the lessons learned from the environment scan exercise
performed in 4.1 Similar Initiatives in Other Jurisdictions Summary
Table 4-2. Lessons Learned SummaryPost-secondary Institution/
Project Name Lessons LearnedInstitution #1Institution #2Institution #3Institution #4Institution #5
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RESOURCES Post-secondary institutions and similar
clients in BC and other jurisdictions (provinces, states, international)
5.0 PROGRAM DELIVERY OPTIONS ANALYSISThe program delivery options analysis can be summarized in three steps, as follows:
Step 1– Identify All Options: List all capital and non-capital options including status quo. These are evaluated against mandatory criteria to determine which options are viable and should undergo further analysis
Step 2 – Evaluate Viable Options: Options that meet mandatory criteria undergo vigorous testing:
1. Options are compared using quantitative (cost/benefit) and qualitative (advantages and disadvantages) analysis
2. Identification of financing sources for each viable option3. Preliminary risk assessment for each viable option
Step 3 – Summary of Options: The options analysis will be used to selecet one option as “preferable”, for which an implementation strategy will be developed
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Table 5-3. Options Analysis Methodology
Identify All Options
Quantitative Analysis
(Financial)
Yes
Determine if any mandatory criteria exist. If so, does the option
meet the mandatory criteria?
Option does not move forward for further analysis
Summary of Options
Evaluate Viable Options
Cost/Benefit Analysis
Qualitative Analysis
(Non-Financial)
Preliminary Financing
Preliminary Risk Assessment
NoSTEP
1ST
EP 2
STEP
3
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5.1 Step 1: Identify All Options List all options (both capital and non-capital options) and describe how each
option may meet the demand/opportunity Include “do nothing” as an option to identify the costs and disadvantages of
maintaining status quo
Table 5-4. Summary of Options OPTIONS
Option Type of ProjectCapital (include category of
project) or Non-CapitalDescription
Status QuoOption #1Option #2Option #3
Identify mandatory criteria that the options must meet. For example, mandatory criteria may include:
- Infrastructure Improvements: FCI improvement and/or reduction of life safety & occupational health risks
- Cost Effectiveness: Funding partnerships and/or cost benefits throughout lifecycle
- Innovation: Demonstrates sustainable solutions and/or collaboration- Strategic Alignment: Alignment with government priorities (e.g.
Ministry Service Plan) and Institutional priorities (e.g., mission statement, master planning etc.)
- Quality Education: Improves student learning outcomes, and/or improve access to learning and/or student full time equivalents (FTE) and space utilization rates
Options are evaluated against mandatory criteria to determine if any options can be dismissed. For example:
- Strategic – the option does not conform to the Institution’s master plan etc.
- Quality Education – the option does not accommodate the FTE forecast at maximum student full time equivalents (FTE) and space utilization rate
Projects greater than $50 M must be evaluated by Partnerships BC for public private partnership (P3) viability during the Concept Plan Report activity. Institutions are instructed to coordinate with the Ministry for any services provided by Partnerships BC. While it is not mandatory to use PBC’s services to plan, deliver and oversee project delivery, they do offer those services. For more details, refer to Section 9.0 Governance of the CARG and http://www.partnershipsbc.ca.
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5.2 Step 2: Evaluate Viable Options Options that meet mandatory criteria are evaluated through quantitative
(cost/benefit) analysis, qualitative (advantages/disadvantages) analysis, financing, and preliminary risk assessment
5.2.1 Quantitative (Cost/Benefit) Analysis A quantitative analysis provides a preliminary estimate of annual capital and
operating costs, including program/service delivery and facility lifecycle costs Prepare a net present value cash flow analysis for the shortlisted viable
options. The term of the cash flow analysis should equal one of the following:- If asset is financed with debt – use the term for the debt/mortgage.- If no debt financing required – use the expected life of the new asset.
Include detailed assumptions for revenue and cost estimates Include schedules detailing the annual principal and interest payments to
accompany the cash flow forecast, as well as for total capital cost estimate The cash flow analysis should reflect the total ‘incremental’ costs and
revenues associated with each project option being evaluated, not the ‘full cost’ including existing programs and facilities. However, in cases where the new project/program also results in additional costs or cost savings in existing facilities or programs, these amounts are also to be included in the project incremental cash flow.
Table 5-5. Summary Table of a Quantitative Cost/Benefit Analysis
CASH FLOW FORECAST – Viable Option 1Inflow/(Outflow)
OPERATING YEAR
Year 1201x
Year 2201x
Year 3201x
Years4….1
9
Year 20
201xOperating Cash Flows
Incremental program revenues, by source $ xxx $ xxx $ xxx …….. $ xxxIncremental program costs, by source $ (xxx) $
(xxx)$
(xxx)…….. $ (xxx)
Incremental facility operating costs, by source $ (xxx) $
(xxx)$
(xxx)…….. $ (xxx)
Interest expense on new debt financings * $ (xxx) $ (xxx)
$ (xxx)
…….. $ (xxx)Total Operating Cash Flows $ xxx $ xxx $ xxx …….. $ xxx
Investing (Capital) Cash FlowsTotal capital cost $
(x,xxx) - - - -
Annual capital renewal, by source $ (xxx) $ (xxx)
$ (xxx)
…….. $ (xxx)
Total Investing Cash Flows $ (xxx) $ (xxx)
$ (xxx)
…….. $ (xxx)
Financing Cash FlowsNew debt financing $ x, xxx - - - -Internal financing $ xxx $ xxx $ xxx …….. $ xxxExternal financing $ xxx $ xxx $ xxx …….. $ xxxAnnual debt repayments * $ (xxx) $ $ …….. $ (xxx)
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(xxx) (xxx)Total Financing Cash Flows $ xxx $ xxx $ xxx …….. $ xxx
Net Cash Inflow/(Outflow) $ xxx $ xxx $ xxx …….. $ xxxNet Present Value – 20 years at x
% $ xxxA supporting schedule detailing the annual principal and interest payments should accompany the cash flow forecast. For example:
LONG TERM DEBT – Continuity Schedule
DEBT TERMYear 1201x
Year 2201x
Year 3201x
Years4 to 19
Year 20201x
Long term debt, opening balance $ xx,xxx $ xx,xxx $ xx,xxx …….. $ x,xxxAnnual debt payment:
Interest expense xxx xxx xxx …….. xxPrincipal repayment (xxx) (xxx) (xxx) …….. (xxx)
Long term debt, closing balance * $ xx,xxx
$ xx,xxx
$ xx,xxx …….. $ -
* Closing balance = Opening balance less Principal Repayment
A supporting schedule detailing the total capital cost estimate should also be included. For example:
CAPITAL COST ESTIMATECONSTRUCTION YEAR
TOTALYear 1201x
Year 2201x
Year 3201x
Land:Acquisition costSite preparationParking and improvements
$ xx,xxxx,xxx
-
$ -x,xxx
xxx
$ --
xx,xxx
xx,xxxx,xxx
xx,xxxTotal Land Costs $ xxx,xxx $ xxx,xxx $ xxx,xxx $ xxx,xxx
Buildings:Hard costs (construction materials and labor)Soft costs (design, engineering, PM/CM etc.)Construction contingency
$ x,xxx,xxxxxx,xxxxx,xxx
$ x,xxx,xxxxx,xxxx,xxx
$ x,xxx,xxxx,xxxx,xxx
x,xxx,xxxxx,xxxxx,xxx
Total Building Costs $ x,xxx,xxx $ x,xxx,xxx $ x,xxx,xxx $ x,xxx,xxxFurniture, Fixtures & EquipmentFurniture and fixturesEquipment
$ x,xxxxx,xxx
--
$ xx,xxxxxx,xxx
xx,xxxxxx,xxx
Total F,F&E $ xxx,xxx $ xxx,xxx $ xxx,xxx $ xxx,xxxSub-totalAdd: Inflation during construction $ xxx $ x,xxx $ xx,xxx $ xx,xxxAdd: Construction financing costs $ xxx $ x,xxx $ xx,xxx $ xx,xxx
Total Capital Cost $ x,xxx,xxx
$ x,xxx,xxx
$ x,xxx,xxx
$ x,xxx,xxx
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5.2.2 Qualitative Analysis A qualitative analysis is required to evaluate the non-financial costs
(disadvantages) and benefits (advantages) of each viable option, including physical, social, environmental, and risk considerations
Determine a list of qualitative criteria. Examples include:- Operational – criteria related to expected facility or program
operational improvements, such as: ability to meet student needs and enrollment demand ability to attract new learners (e.g. First Nations, out-of-country) improved staff recruitment and retention integration of new and existing programs ability to implement new technologies and learning
methodologies impact on other areas of the Institution such as parking, food
services, recreation, housing, student, and health services improved operations and maintenance facility costs, e.g energy
efficiency, improved FCI
- Physical – criteria related to increased or decreased facility functionality, efficiency etc., such as:
effectiveness of facilities for meeting existing and new program needs
integration with existing facilities improved access and mobility flexibility to adapt to changing demands in the future
- Environmental – criteria related to the impact that the project and subsequent operations is expected to have on the local environment, such as:
increase/decrease in noise levels Increase/decrease in local traffic levels Impact on GHG emissions, waste levels etc.
- Political – criteria related to impact that the project and subsequent operations is expected to have on key stakeholders, such as:
government education and training goals response to industry requirements attracting research funding now or in future program or Institution prestige public/student perception of the program(s) and/or the
Institution public and private sector perception of the Province/the Ministry perception of other provincial and national institutions
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For each viable option, compile qualitative analysis findings in a summary table. For example:
Viable Option 1: NAMESummary of Qualitative Analysis
Advantages DisadvantagesOperational Physical Environmental Political
Viable Option 2: NAMESummary of Qualitative Analysis
Advantages DisadvantagesOperational Physical Environmental Political
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5.3 Step 3: Summary of Options Typically, the preferred option is the lowest net cost option on a net present
value basis. However, other considerations including those identified in the qualitative analysis, financing, and risk assessment may surface another viable option with a high net cost as the preferred option
Summarize the results from Sections 5.1-5.2, providing advantages, disadvantages, and key findings to select a preferred option
Key Findings Viable Option 1 Viable Option 2
Net Present Value $ $
Qualitative Advantages
Qualitative Disadvantages
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6.0 DETAILED FINANCIAL ANALYSIS The preferred option identified in Section 5.0 Program Delivery Options
Analysis is further defined in this section, and includes the following:- Capital budget- Annual operating costs (including operating cost reductions)- Annual base and incremental revenues- Return on investment
6.1 Capital Budget Identify preliminary capital cost estimates for the project, including costs and
underlying assumptions related to the:- Design- Site preparation- Construction or development- Specialized equipment/IT systems- Contingency- Escalation allowances
Describe why this project cannot be undertaken within the ministry’s current capital plan and/or funded entirely by other partners/beneficiaries, and include supporting evidence
- E.g., funding proposed project within current capital plan would require either deferral or cancellation of other high priority projects, including recent Throne Speech and Budget Commitments
Identify the proposed provincial government capital funding amount and timing of cashflows
Identify an non-provincial government capital funding sources for the project (e.g., capital contributions from federal and local governments, industry, etc.) and the expected contribution amounts and timing of cashflows from each funding source
- Indicate if firm commitments been secured from the non-provincial government funding sources
Table 6-6. Capital Funding Sources/Cashflows$ millions 2012/1
32013/1
42014/1
52015/1
62016/1
7 TotalsA. Provincial Government:
Sub-Total:B. Non-Provincial Government:
Sub-Total:Annual Totals:
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6.2 Annual Operating Costs Identify all annual base and incremental operating costs, including
program/service delivery and maintenance costs- State assumptions for the cost estimates
Identify any expected annual operating cost reductions (e.g., reductions in staff and related wage/benefit cost savings, decreased energy costs, etc.)
- State assumptions for the estimated annual operating cost reductions- Note: that there will be a subsequent review of any forecast annual
operating cost reductions and use(s) of these funds
Table 6-7. Operating Costs and Proposed Reductions
$ millions 2012/13
2013/14
2014/15
2015/16
2016/17 Totals
A. Operating Costs:Base
Program/service deliveryMaintenance
IncrementalProgram/service deliveryMaintenance
Annual Totals:B. Operating Costs Reductions:
Identify specific source(s) of savings (e.g., staff reductions, decreased energy costs, etc.)
Annual Totals:
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6.3 Annual Base and Incremental Revenues Estimate annual base and incremental revenues to Government (if any) that
are a direct result of the proposed capital project- Base and incremental revenues may include additional royalties, fees
and lease payments received by Government and do not include potential increases in corporate and personal income tax revenue
State key assumptions and supporting rationale for each of the estimated annual base and incremental revenue streams
- E.g., forecast annual fee/price and demand estimates, source/basis of estimates)
If applicable, describe how forecast annual incremental revenues have been adjusted to account for risks identified in Section 7.0 Preliminary Risk Assessment
Table 6-8. Base and Incremental Revenues
$ millions 2012/13
2013/14
2014/15
2015/16
2016/17 Totals
RevenuesA. Base
Identify specific revenue source(s)
Sub-Total:B. Incremental
Identify specific revenue source(s)
Sub-Total:Annual Totals:
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6.4 Return on Investment
In order for the proposed project to be eligible for funding through the Capital Innovation Fund, it must provide financial return to the Province over the lifecycle of the capital asset that exceeds the provincial contribution towards capital expenditures, related cost of borrowing and any incremental operating costs
Demonstrate how the proposed project will generate sufficient operating cost savings and/or incremental revenues to the Province that exceed the project’s total capital expenditure, related cost of borrowing and incremental operating costs (if applicable)
The specific financial metric used should be reviewed with the Ministry, and may include simple payback, cost/ benefit ratio, and net present value. Below is an illustration of a net present value (NPV) analysis comparing investment costs to investment returns over the service life of the asset
Table 6-9. Illustration of Net Present Value Return on Investment($ Millions) 2012/1
32013/1
42014/1
52015/1
62016/1
7Etc.
Investment Costs1.) Provincial Contribution Towards Capital
Expenditures (as per Part A of Table 6-1)2.) Annual Provincial Borrowing Cost (3.85%)3.) Incremental Operating Costs (as per Part
A of Table 6-2)Program DeliveryMaintenance
Total Nominal Value of Investment Costs:
A. Total Present Value of Investment Costs1:
Investment Returns1.) Operating Cost Reductions (as per Part B
of Table 6-2)2.) Incremental Revenues (as per Part B of
Table 6-3)Total Nominal Value of Investment Returns:
B. Total Present Value of Investment Returns1:
C. Return on Investment (B – A ) 1:
1Present value should be calculated using a discount rate equal to the province’s current long-term borrowing cost. Refer to the BC Municipal Finance Authority for details.
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RISK IDENTIFICATION(Inherent)
RISK RESPONSE
Risk Identification
Details
Risk Response Details
Risk Monitor &
Control
Risk Evaluation
(With Response)
Risk
ID
Life
Cycle
Risk Event Trigger / Root Cause
Consequence on Project
Performance
Not
es
Risk
Pro
babi
lity
Risk
Impa
ct
Risk
Ran
king
Stat
us
Risk
Ow
ner
Ow
ner
Org
aniz
atio
n
Risk Response
Expected Results of Risk
Response
Resp
onse
Cos
t
Due
Date
of R
isk
Resp
onse
Res
pons
e Pe
rcen
tage
Co
mpl
ete
Notes on Risk Response (progress,
effectiveness, other notes)
Prob
abili
ty w
ith
Risk
Res
pons
e
Impa
ct w
ith R
isk
Resp
onse
Risk
Ran
king
w
ith R
isk
Resp
onse
Risk Identification Risk Response
Risk Evaluation (Inherent)
7.0 PRELIMINARY RISK ASSESSMENT For the recommended option, complete the risk register by identifying and
evaluating the risks in terms of probability, impact, risk owner, and mitigation strategies. Include risks related to achieving annual operating cost reductions or forecast annual incremental revenues
- Example of incremental revenue risk: For an infrastructure project that supports the production and/or distribution of a particular resource commodity, there may be a medium-high risk of decreased market demand for the commodity and resulting declines in provincial production of the commodity and fees/royalties received by the Province
A risk register is in accordance with project management best practices as described in the Ministry’s Risk Management Guide . Refer to CARG Template 9: Risk Register for further details and examples of risk identification, evaluation, and response
Note that risk response, risk monitoring & control, and risk evaluation (with response) are completed in the implementation phase of the proposed project
Table 7-10. Risk Register- Risk Identification & Response
At this stage of the planning phase, Institutions should engage the Province to determine the level of oversight and approval required. Complete the Capital Project Risk Screen Tool (CARG Template 8).
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RESOURCES Ministry’s Risk Management Guide Ministry’s Risk Register (CARG Template 9) Capital Project Risk Screen Tool (CARG Template
8)
8.0 CONCLUSIONS & RECOMMENDATIONS8.1 Conclusions
List major conclusions Summarize findings for the recommended option
8.2 Recommendations List recommended next steps to advance the opportunity to the next activity,
obtaining the Ministry and Ministry of Finance approvals An implementation strategy is developed for the recommended option
identified in Section 8.0 Conclusions & Recommendations
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9.0 IMPLEMENTATION STRATEGY9.1 Project Delivery Models
Provide a preliminary analysis of alternate project delivery models (e.g., design-bid-build, design-build, construction management, P3, etc.)
Summarize findings to arrive at a preferred project delivery model for procurement purposes
Refer to Project Delivery Options Analysis Tool (CARG Template 13)
Table 9-11. Summary of Procurement Models
Project Delivery Models Advantages Disadvantages
Procurement Model 1
Procurement Model 2
Procurement Model 3
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9.2 Preliminary Schedule Create a Gantt chart that identifies the expected duration of each project
phase leading to implementation, including planning, approval, procurement, construction/development, commissioning and start-up
Identify factors that may impact the schedule, such as permitting, weather, government priorities, etc.
Table 9-12. Examples of Schedules Based on Project Delivery Model1
Number of Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40Design-Bid-Build
Tender & Award Arch./Eng'r & ConsultantsDesignTendar & Award Gen. Construction Contract 40Construction
Design-BuildTender & Award Owner's ConsultantsPrepare Design-Bid SpecificationDesign-Build Tender & AwardDesignAward Trade Contracts 36Construction
Construction Manager At Risk – GMPTender & Award Arch./Eng'r & ConsultantsDesignTender & Award GMP ContractNegotiate & Award GMP ContractTender & Award Trade Contracts 37Construction
Construction Manager – Fixed Fee (CM as Agent)Tender & Award Arch./Eng'r & ConsultantsDesignTender & Award Construction ManagerTender & Award Trade Contracts 32Construction Consturction (24 months)
T&ADesign ( 12 months)
T&AConsturction (24 months)
Consturction (24 months)
T&ADesign ( 12 months)
T&AT&A Trade Contracts
T&ADesign ( 12 months)
T&AN&A
T&A Trade Contracts
Award Trade ContractsConsturction (24 months)
T&ASpec
T&ADesign ( 12 months)
1 Projects greater than $50 M must be evaluated by Partnerships BC for public private partnership (P3) delivery. Institutions are instructed to coordinate with the Ministry for any services provided by Partnerships BC. While it is not mandatory to use PBC’s services to plan, deliver and oversee project delivery, they do offer those services. Further details about Partnerships BC can be found at http://www.partnershipsbc.ca.
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9.3 Project Governance The appropriate project governance structure is based on the complexity and
size of the project. Figures 9-1 and 9-2 provide examples of organization charts for a small and large project
The organization structure identifies relationships and communication lines between project members, and is intended to:
- Encourage appropriate input from a wide range of sources- Facilitate timely decisions- Fulfill all Institutional, the Ministry, and Ministry of Finance
requirements- Ensure good business practice in accordance with government contract
guidelines and financial and signing authority controls- Focus on making design and equipment decisions within the
boundaries of key project parameters such as budget, schedule and project scope
A project board may be required depending on the scope, complexity and risk profile of the project, and may include members from the Institution, the Ministry and/or Ministry of Finance. The requirement of a project board will be identified upon completion of the Capital Project Risk Screen Tool (CARG Template 8), which identifies both organizational and project risks. Whereas the Capital Project Risk Screen Tool determines the level of oversight required by the Ministry, a project risk register is project specific and is updated in each phase of the project lifecycle
Figure 9-1. Example of an Organizational Structure for a Small Project
Institution
Stakeholders
Designers Contractors Supplier
Project Manager
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Figure 9-2. Example of an Organizational Structure for a Large Project
Campus Development Committee
Board of Governors
President & Executive Committee
Project Steering Committee
Finance & Audit Committee
President’s Council Capital Projects Academic Schools & Service Units
Construction Manager
Special Consultants
Functional Programmer
Prime Consultant
Program Staff
Sub-trades
Sub-consultants (Structural, Mechanical, Electrical)
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OTHER RESOURCES FOR THE INNOVATION BUSINESS CASE REPORT Institutional Accountability Plan & Report 5 Year Capital Plan Master Plan/Long Range Development Plan Student full time equivalents (FTE) and space utilization rate Ministry’s Space Standards Ministry’s Budget Model BCStats Population Projections (P.E.O.P.L.E.) Provincial data on labour trends Ministry Business Plans Cross-ministry initiatives Partnerships BC Ministry’s Risk Management Guide
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APPENDICES FOR THE BUSINESS CASE REPORT Initial Programming Information Concept Options/Drawings Engineering Pre-feasibility Studies BC Budget Model Output Capital Project Risk Screen Tool (CARG Template 8)
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