FY27 Capital Project Request

Guidelines for Submitters

Capital projects enhance University assets in facilities and information technology (IT), generally through new construction, alterations and renovations to existing buildings, or improvements to IT infrastructure. Capital projects also support the purchase of certain library materials and equipment as well as the purchase and/or improvement of land. Typically, capital projects have a specific, defined scope of work and timeline, however, in some circumstances, capital projects may also support planning studies to estimate costs and assess feasibility for prospective future construction, equipment, and IT improvements. University Policy 1004.1 describes the University’s full capitalization policy.

Minor physical improvements, such as repainting or recarpeting, are not capital projects and may be requested through a Service Request to Facilities Services (generally, Service Requests are funded by the requesting unit’s operating budget).

The following guidelines apply to the annual non-major capital process.

Eligibility

All University Entities (academic Divisions/Schools, central Administrative Support units, and Auxiliary units) are eligible to apply for capital projects. Individual University Organizations (departments, centers, programs, etc.) should coordinate capital project proposals with leadership in their cognizant University Entity.

Facilities Services (FS) initiates and manages most capital projects related to building infrastructure. Other University Entities may initiate capital projects and planning studies related to building infrastructure when there is a specific need/opportunity directly related to the performance of the Entity’s academic or administrative mission. Generally, FS will oversee all such projects or coordinate design and construction management with the sponsoring unit.

Information Technology Services (ITS) initiates and manages most capital projects related to IT infrastructure. Other University Entities may initiate capital projects and planning studies related to IT infrastructure when there is a specific need/opportunity directly related to the performance of the Entity’s academic or administrative mission. Generally, ITS will manage all such projects or coordinate implementation with the sponsoring unit.

Provost-initiated capital projects support renovations related to new faculty hires (e.g. laboratory build-outs, expanding research computing capacity), accessibility enhancements, classroom improvements, and other projects that advance central initiatives.

Application Process and Timeline

Most capital project proposals are submitted during the annual On-Cycle Capital Request process. Annually, the call for capital proposals is announced in July, draft proposals are due in August, and final proposals are due in October. Funding decisions are announced in early spring.

Unanticipated projects that require urgent action may be proposed as Off-Cycle Capital Requests throughout the fiscal year, as soon as the sponsoring unit is aware of the need. Review of off-cycle capital requests is on-going year-round.

Before developing project proposals, prospective applicants are encouraged to consult with the Office of the Provost on proposal development. To arrange consultation, please contact Associate Provost Josh Beck (jpbeck@uchicago.edu).

All non-major capital project proposals (On-Cycle and Off-Cycle) must be submitted through the University’s Oracle Planning (UCPLAN) tool, including initial draft proposals. For more information about UCPLAN please refer to the Budget Office website.

Elements of the Project Description

All project proposals should address the following considerations:

1. Scope of Work

• Describe the specific scope of work to be completed

• If the proposed project will be phased over multiple years, require preparatory projects, or trigger mandatory or follow-on project(s), the base project description should include details for those related work scopes

2. Criticality for unit mission

• Describe how the project will advance the unit’s core strategic priorities

• For academic units, describe how the project will advance essential academic functions and/or enhance capacity for future academic initiatives, strengthen the unit’s research and/or teaching mission, improve the quality of faculty and student life, and/or improve administrative operations

• For administrative support units and auxiliary units, describe how the project will advance institutional priorities, reduce high operational, security, reputational, or other risks, or otherwise improve unit performance

• If relevant, describe how the proposed project will impact the unit’s future operating budgets (e.g. significantly increase or reduce operating costs, enable new revenue growth, etc.)

3. Alternatives considered

• What alternatives to the proposed capital project have been considered? Why were those alternatives dismissed or given lower priority?

• Are there opportunities to reduce the scope of work to a minimum necessary to achieve the essential improvements, with optional additional scope pending financial capacity?

• Are there opportunities to phase the project over multiple fiscal years?

4. Budget and Implementation Timeline

• Project proposals should include a preliminary rough order of magnitude budget showing major expense categories with estimated costs; budget notes or a brief budget narrative should describe how costs were estimated and why the budgeted items are essential to the project objectives; generally, budgets for alterations and renovations to building infrastructure should be developed in coordination with Facilities Services, and budgets for enhancements to IT infrastructure should be developed with IT Services.

• Project proposals should include an implementation timeline including anticipated project start-date and end-date, desired key milestones, description of any schedule constraints, restrictions on construction activities (e.g. work must only be performed between certain hours or at certain times of year), potential impact on the University community (e.g. noise, vibration, or dust impact on units operating in or adjacent to the project site) along with strategies to mitigate any significant negative impacts, and any other information about how the project would be implemented.

Review process and Evaluation criteria

The University’s annual On-Cycle capital budget recommendation is developed by the Office of the Provost (OOP) in coordination with the Budget Office, Financial Services, and the Office of the Vice President for Operations before being advanced to the Capital Project Review Committee (CPRC, comprised of the President, the Provost, the Vice President for Operations, and the Vice President and Chief Financial Officer), and then to the Board of Trustees for approval.

In developing its recommendations, OOP evaluates capital project proposals based on the following criteria:

• potential to advance core strategic priorities of the University

• potential to reduce high operational, security, reputational, or other risks

• the financial capacity of the proposing unit and University to support the project

In addition to its role approving the University’s annual capital budget, the CPRC also reviews individual capital projects with budgets of $5 million or greater. In this capacity, the CPRC reviews the project’s strategic and programmatic rationale; site and design options; total project costs, cost per square foot, and other key metrics; impact on campus planning, operations, and environment; anticipated schedule; legal considerations and transaction structure; and financial impact. Projects that establish a potential significant long-term strategic relationship between the University and a third party, including international or other off-campus sites, or that involve the acquisition or disposition of property, are reviewed by a “Deal Team”, who make recommendations to senior leadership concerning each project’s strategic rationale, impact on campus planning, legal commitments, financial impact, community relations, and University reputation. University Policy 1301 details the full review and approval requirements for capital projects and sets forth associated controls for project spending.