FY2015 Edition – rev. 1 (c)2014 Archdiocese of Los Angeles.

(c)2014 Archdiocese of Los Angeles

Capital Improvements

Policies & ProceduresFY2015 Edition – rev. 1

http://www.la-archdiocese.org/


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• “Construction” Capital Improvement Projectso New Buildings / Structureso Existing Facilities & Buildings• Maintenance & Repairs• Additions• Renovations / Remodels

o Major Property Insurance Claims involving Buildings (Replacement)

Construction


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Planning & Preparation

• Key Steps to Executing a Construction Capital Improvement Project (an overview)o Scopeo Budgeto Scheduleo Fundingo Approvalso Contractso Payments

An Overview


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• Scopeo Define the parameters of Construction Capital

Improvement Project• Identify Project Requirements• Prepare a written description of Work and/or

Drawings (as needed)• Communicate Expectations• Quality

• Prioritize Work (as needed)

An Overview


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• Budgeto Establish a Project Budget based on defined Scope• Obtain Cost Proposal / Estimate from:• Contractor / Vendor• Design Professional or• Cost Estimator

o Project Phases & Costs• For Larger Construction Project requiring Design,

Engineering, Plan Check & Permits

An Overview


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• Budgeto Project Phases & Costs• Design / Engineering• Plan Check / Permit Fees• Bidding• Environmental Hazard Abatement (if needed)• Construction Costs• Contingency

An Overview


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• Scheduleo Do not wait until the last minute to request

approvals, vendor pre-qualification or contracts

o Establish a Project Completion Dateo Consider Contingency / Alternative Planso Consider Parish / School Events & Schedules

(i.e. Summer School, etc.)

An Overview


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• Scheduleo Allocate adequate time for:

• Approvals• Scope Definition

• Design / Engineering• Drawings / Specifications• Requests For Proposal• Plan Check / Permits

• Bidding / Multiple Proposals• Contracts• Construction• Close Out

An Overview


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• Fundingo Requires 100% Funding – Cash On Hand• including Contingency

o Note: If Total Project Costs exceeds $20,000• Deposited in Parish or School restricted Investment

Pool Building Fund Account

An Overview


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• Approvals (if total project costs exceeds $20,000)

o Auxiliary Bishop (except Archdiocesan High Schools)• Pastor sends written letter requesting approval

o Financial: ACC Finance Office (Financial Services)

o Vendor: Recommended Vendor or Pre-Qualified

An Overview


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• Approvals Dependent on Scope (if total project costs exceeds $20,000)

o School Projects – Contact Department of Catholic Schools

o Liturgical Projects – Contact ACC Office for Worship• May require review of Liturgical Design Review

Committee (“LDRC”)

Note: See Policies & Procedures section for more specific details and requirements.

An Overview


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• Contractso Total Project Cost Less Than or Equal to $20,000• Use Recommended ACC Small Construction Project

Contracto Total Project Costs Exceeds $20,000• Use Only ACC Standard Contracts

• Contact the ACC Construction Department


An Overview


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• Payments (if total project costs exceeds $20,000)o Submit Completed Investment Pool Request

Form• Withdrawal from Investment Pool Building Fund

Account that contains Deposited Project Funding

o Attach Invoice & Supporting Documentation


An Overview


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Policies & Procedures

• Requirements & Approvals

• Consultants / Contractors / Vendors

• Volunteers

• Environmental Hazards

• Resources



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REQUIREMENTS & APPROVALS BASED UPON PROJECT CLASSIFICATION• Minor Projects

o Less than or equal to $20,000 = Local Approval except under special circumstances

• Major Projectso Greater than $20,000 but less than or equal to $1,000,000o Greater than $1,000,000 requires Building Commission approvalo Greater than $2,000,000 also requires Outsourced Project Manager

Classification is based on the Valuation & Total cost of Project, not the cost of individual parts

Capital Improvements: Requirements & Approvals


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Minor Project RequirementsPolicies & Procedures: Requirements & Approvals

o Funding• Parish / School has 100% of funds available (including Contingency)

o Authorized to Execute Contracts• Pastors (for Parishes, Elementary Schools & Parish High Schools)• Principals of Archdiocesan High Schools

o Contractors• Valid license in the State of California• Minimum Insurance Requirement

o Contract• Archdiocese recommends use of ACC Standard Small Construction

Contract (available in Administrative Handbook on Archdiocese web site, under Publications)


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Minor Project Requirements

• ACC Standard Small Construction Project Contract (Terms & Conditions)o Offered for Parish or School projects <= $20,000o Developed by ACC Legal Counsel & Construction Department

• Use instead of Contractor Proposals or Contracts

• Suitable for General Contractors and Specialty Trade Contractors (i.e. Roofing, Plumbing, Electrical, etc.)

Policies & Procedures: Requirements & Approvals


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Minor Project Requirements

• To obtain an Adobe PDF copy of the Contract, access the Archdiocese web site:o http://handbook.la-archdiocese.org

o Select “Chapter 7 – Facilities”

o Search for the link to the “Small Construction Contract”


http://handbook.la-archdiocese.org/

http://handbook.la-archdiocese.org/


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Minor Project: Key Tips

• Obtain at least 3 Bids / Proposals

• Get Project Expectations in Writing(Price, Scope & Schedule)

• Be cautious when signing Proposals / Contracts prepared by Contractors

• Beware of the fine print!• Only sign the contract if you completely understand the terms

• Confirm the Contractor has Workers’ Compensation Insurance for their employees

• Check the State of California Contractors State License Board Web Site at: http://www.cslb.ca.gov to perform a License Check


http://www.cslb.ca.gov/

http://www.cslb.ca.gov/


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Minor Project: Key Tips

• Don’t pay cash

• Don’t let the payments get ahead of the work completed, and don’t pay the full cost of the job up-fronto Contractors should not ask for a deposit of more than 10% of the total

cost of the job or $1,000, whichever is less, unless the contractor provides a bond or bond equivalent ensuring completion of your contract.

• Hold Retainer payments until job is completed

• Ask for Lien Releases



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Minor Project: Exceptions

• Contact the ACC Construction Department for Consultation & Review if your project involves:o Asbestos, Lead & Moldo Structural Renovationo Structural Modificationso Conditional Use Permits (CUP)o Day Care Facilitieso Pre-School Facilities

• If you have questions, call uso (213) 637-7850



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Major Project Requirements

$20,000 and <= $1,000,000Required Approvals• Regional Bishop (except

Archdiocese High Schools)• Office For Worship (if Liturgical

Project)• Superintendent (if School Project)• Financial (before contract)

Funding• 100% or approved ADLA Loan /

Line of Credit (“LOC”)• Deposited in Parish / School

restricted Investment Pool

Bidding• Competitive Bid

Contracts• ACC Standard

> $2,000,000Required Approvals• Same as left

Funding• Same as left

Bidding• Same as left

Contracts• ACC Modified AIA

Agreement

+Outsourced 3rd Party Project Manager

> $1,000,000Required Approvals• Same as left• + Archdiocesan Building

Commission

Funding• Same as left• +Archdiocese Cash Flow

Model / Chart

Bidding• Same as left

Contracts• ACC Standard or ACC

Modified AIA Agreement



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$20,000 and <= $1,000,000Payments• Submit completed & signed

Archdiocese Investment Pool (“IP”) Withdrawal Request

• Attach invoices and supporting documentation

• Funds from restricted Parish / School IP Account

• Reviewed by ACC Construction Department

• Payments processed by ACC Financial Services

Closeout• Project review by Parish /

School and Archdiocese representative

• Lien Releases

> $2,000,000Payments• Same as left

Closeout • Same as left

+ Outsourced 3rd Party Project Manager

> $1,000,000Payments• Same as left• + Attach completed &

signed AIA Payment Application (if contract issued on ACC Modified AIA Agreement)

Closeout• Same as left• + Punch List (if contact

issued on ACC Modified AIA Agreement)



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$20,000 and <= $1,000,000

Typical Projects• Painting• Roofing: Repairs &

Replacement• Paving: Repairs &

Replacement• Plumbing: Repairs,

Infrastructure Replacement & New Fixtures

• Electrical: Repairs, Upgrades and Improvements

• HVAC: Repairs, Upgrades• Lighting• Asbestos (ACM) Abatement

> $2,000,000Typical Projects• New Buildings• Large Scale Existing

Building Renovations• Conversion of Large

Existing Buildings – Change of Occupancy & Use

> $1,000,000Typical Projects• Existing Building

Renovations• Conversion of Existing

Buildings – Change of Occupancy & Use

• Synthetic Turf Fields• Site Improvements



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• Additional Approvals Requiredo Auxiliary Bishop (except Archdiocesan High Schools)• Pastor sends written letter requesting approval

o Financial: ACC Finance Office (Financial Services)

• Additional Approvals Dependent on Scopeo School Projects – Contact ACC Education Department• Superintendent of Elementary Schools • Superintendent of Secondary Schools

o Liturgical Projects – Contact ACC Office for Worship• May require review of Liturgical Design Review

Committee (“LDRC”)



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• Consultation & Reviewo ACC Construction Department

• Fundingo Parish/School has 100% of funds available for the project or

qualify for a short term Archdiocesan Construction Loan / Line of Credit (“LOC”)

o Funds deposited in restricted Investment Pool Account before Contract is issued

• Master Plan/Maintenance Plano Proposed Project conforms with Approved Master Plan for the

Parish/School (excludes Maintenance Projects)o Parish/School has a Facilities Maintenance Plan



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• Biddingo Competitive Bids (Minimum of 3) from Pre-Qualified

Contractors• Contractors who are not on the Pre-Qualified List must

complete the Pre-Qualification Process and meet minimum Archdiocesan requirements

o Negotiated / Guaranteed Maximum Pricing (instead of Competitive Bids) requires prior approval of the Archdiocesan Building Commission



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• Contractso ACC Standard Agreements Only

• Archdiocese Small Construction Contract • Custom Modified AIA Contracts

o Construction Department prepares contracts on behalf of Parish/School



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Financial Approval

• Pre-Requisites for ALL Major Projectso Credit Check / Evaluation

• Evaluation required before fundraising or designo No outstanding past due Accounts Receivables (i.e.

Medical, “MI” - Monthly 1/12th)o Any existing Archdiocese Loans / Lines of Credit (“LOC”)

need to be paid in fullo Parishes or Schools on subsidy are subject to further

review• May require a meeting with an ACC Financial Services

Department representative



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Financial Approval

• Financial Analysiso ACC Construction Department works in collaboration with

ACC Financial Services Department to conduct a review and prepare analysis for evaluation

o Cost Datao Funding Review



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Financial Approval

• Cash Flow Model & Chart o Required for Projects involving a Construction Loan / Line of

Credit and large major projects (> $1M)o Parish / School submits Project Cost Data and Funding

Informationo Construction Department assists in preparing cost

distribution using provided Cost Data• Where possible, a Project Manager or designated

representative for the Parish / School prepares the distributiono An ACC Financial Analyst prepares funding distribution using

Pledge Schedules provided by Parish / School



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Major Projects > $1M

• Typically NOT a Summer Project

• Requires Extra Preparation Time Due To:o Planning

o Additional Required Approvals



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• Additional Required Approvalso Archdiocesan Building Commission• Conceptual Plan Review & Approval• Master Plan Review & Approval• Conceptual/Schematic Design Review & Approval

• In some instances, the Master Plan and Conceptual/Schematic Design Review may be combined

o Financial Review & Approval• Before Bidding• After Receipt of Bids, Prior to Issue and Award of

Contract



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• Additional Requirementso Project Management• Parish / School must hire outsourced Pre-Qualified

Owner’s Project Manager (“PM”)• PM responsibilities include: managing project scope,

schedule, budget, entitlements, bidding, bid analysis, oversight of design & construction, progress payments, change directives, change orders, and close out documentation



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Consultants / Contractors

• Recommended Listo Consultants, Contractors, Specialty Trades &

Vendors• Recommendations based on history of successful

past performance• Pre-Qualified List

o Firms completing the evaluation process• Usually for a specific Parish / School project, but may

have not completed an entire project• Lists are updated periodically by ACC

Construction Department



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• Submittal For Pre-Qualificationo Requires Recommendation from Parish or School• Only for specific Parish or School project• No referral of candidates for other Parishes/Schools

• Written letter from Pastor (Parish or Parish School) or Principal (Archdiocesan High School)• Candidates• Completes Pre-Qualification form including List of

References• Evaluation and Interviews• Submits required Certificates of Insurance



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• Minimum Pre-Qualification Requirementso Valid and current State of California license for

applicable profession or trade• 5 years of continuous operations under current

business name / license and in good standingo Valid Insurance• General Liability, Workers’ Compensation, Auto and

where applicable, Professional Liabilityo Referenceso Acceptance of Archdiocese contract terms and

conditions



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Volunteers• Volunteer Construction Work

o Discouraged Due To• Risk of Injury

• Lack of experience increases risk of accidents

• Liability Exposure• Costs due to injury can offset or exceed cost of paying a qualified,

licensed and insured Contractor

• Warranties• None provided by volunteers

o Requirements for Volunteers Performing Services Normally Requiring a License (if Paid)• Under Supervision of Licensed Contractor• Requires Proper Insurance Coverage



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Volunteers• Volunteers Should Not :

o Work Above Ground Levelo Use Ladders, Scaffolding, Platforms, Liftso Perform Electrical Repairso Use Power Toolso Be assigned to Strenuous Labor, Lifting, Hoistingo Work around Environmental Hazards• Examples



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Environmental Hazards

• Proposed Maintenance, Repairs or Construction (New, Additions, Remodel, Renovation or Demolition) may trigger required abatement of:

o Asbestos / Asbestos Containing Materials (“ACM”) / Asbestos Containing Building Materials (“ACBM”)

o Lead, Lead-Based Paint (“LBP”), Lead Glazing on Ceramics, Lead Containing Building Materials

o Mold



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Environmental Hazards

• If in doubt, before beginning a proposed construction project:o Contact the ACC Construction Departmento Conduct an Inspection, Site Survey and

Assessment using a Certified Consultanto Obtain a written Report with recommendationso Conduct necessary abatement using Certified

Abatement Contractors



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Resources• ACC Construction Department

o Contact Information• Phone: (213) 637-7850• Email: [email protected]


mailto:[email protected]


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Resources• Publications & Guidelines

o Administrative Handbook• Chapter 7: Facilities

o Archdiocesan Building Commission Construction Policies

o Construction Project Checklisto “Solar Panel Power System Advisory” dated March 30,

2011• Issued to ALL Pastors, Administrators, Principals and

Business Managers



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FY2015 Edition – rev. 1 (c)2014 Archdiocese of Los Angeles.

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