Capital Planning Process

Overview

Capital projects must be appropriately planned, approved in accordance with the University's Financial Regulations, and managed by Estates Services project managers based on the requirements of the Estates Regulations and the Guide to Capital Building Projects. Those responsible for approving and managing projects will ensure that every project is subject to a series of progress reviews. Major projects are additionally subjected to reviews by PRAC and Council during their life cycle.

Key Stages

  1. Embryonic project proposals are initially assessed in the context of divisional strategies and technical viability. In order to properly determine the suitability of a proposed project, discussions take place involving departmental and/or divisional representatives and Estates Services.
  2. A steering group is convened to develop a more detailed project proposal in partnership with a nominated project manager who is responsible for submitting the proposal for approval.
  3. The nature of the proposal will determine the means of approval, the process being dependent on scale and the funding sources that are envisaged for the project as a whole. The procedural requirements are identified within the University's Financial Regulations. Recommendations and decisions relating to projects are covered by divisional boards, the Capital Steering Group (CSG), PRAC and the Buildings and Estates Subcommittee (BESC), with Council as the ultimate approving body. The core University services that are usually involved in the process are Estates Services, the Finance Division and the Planning and Resource Allocation Section (PRAS).
  4. Following the consideration of a project proposal, approval can have a number of possible outcomes, typically:
    •   conducting a feasibility study
    •   permitting work to be carried out to a specified design or planning stage
    •   pursuing fund-raising activity to bring the project to fruition
    •   carrying out the entire project
  5. Upon approval, all interested parties are notified and the project is included as an approved item within the Capital Plan.
  6. Once formal approval has been given, procurement activities can take place including, as required, the appointment of a design team, cost consultant (quantity surveyor), architect and main contractor.
  7. The Finance Division will set up the project within the Oracle Financials Construction Projects Module using a unique reference number. At this stage the project funding source(s), cost budget and VAT treatment will be identified within the system for ongoing monitoring and financial control purposes.
  8. All committed expenditure and actual costs incurred in the delivery of a project are appropriately captured within Oracle Financials. Routine reporting is undertaken by way of cost updates to the Capital Plan and via regular monthly financial review meetings with the project manager.

Further Information

Capital Project Initiation shows, in diagrammatic form, the key stages of project planning - initiation, feasibility, project proposal and project setup.

For more detailed information please refer to the Guide to Capital Building Projects and the Financial Management of Building Projects process.

If you wish to discuss any aspect of capital projects in relation to Oracle Financials please contact: The Estates and Capital Projects Accounts team.

Documents

Guide to Capital Projects (142kb)