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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

Innovation Business Case Report | of 31

http://www.aved.gov.bc.ca/cppm/documents/space.pdf

http://www.aved.gov.bc.ca/cppm/documents/space.pdf

http://www.aved.gov.bc.ca/cppm/documents/univ_space.pdf

http://www.aved.gov.bc.ca/cppm/uucci/documents/budgetmodel.xls

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


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


RESOURCES BCStats Population Projections (P.E.O.P.L.E.) Provincial data on labour trends

http://www.bcstats.gov.bc.ca/data/pop/popstart.asp

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


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


1.2.3.

STAKEHOLDER #3

Goal` How the Institution’s Opportunity Supports the Stakeholder’s Goals


1.2.3.


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


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


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


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.


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)


(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


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


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


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


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:


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:


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:


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.


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).


RESOURCES Ministry’s Risk Management Guide Ministry’s Risk Register (CARG Template 9) Capital Project Risk Screen Tool (CARG Template

8)

http://www.aved.gov.bc.ca/cppm/related_documents.htm






http://www.aved.gov.bc.ca/cppm/documents/Risk_Management_Guide.pdf

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


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



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&AT&A Trade Contracts


T&AN&A

T&A Trade Contracts

Award Trade ContractsConsturction (24 months)

T&ASpec


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.


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




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)


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


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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