New $55,000 Alterations Limit

Application of the $55,000 limit

As legislated by the State, there is a limit on the dollar value of renovation work that can be done in-house, by Campus Alterations. The limit has occasionally been adjusted, by action of the Legislature, most recently during the 2007 session, in ESSB 5770.

The following information covers the operational guidelines to which Campus Alterations adheres in observing the mandated limit.

Statutory stipulations (RCW 28B.l0.350)

• Any multi-trade project of “construction, renovation, remodeling or demolition [that] will equal or exceed” $55,000 in labor and construction materials costs must be a Public Works project managed through the Capital Projects Office.
• Any single-trade project in excess of $35,000 in labor and construction materials must be a Public Works project.

Exclusions:

• Emergencies: declared by the UW President, under “a condition likely to result in immediate physical injury to persons or to property…in the absence of prompt remedial action or a condition which immediately impairs the institution’s ability to perform its educational obligations.”
• Maintenance Work: both state-funded and recharge maintenance, work that provides for replacement in-kind of renewable surfaces and/or worn-out materials (see additional information below).
• Equipment and/or furnishings: provided and/or installed by outside vendor.

NOTE: the cost of equipment or furnishings purchased from an outside vendor is not included in the limit, but labor expended by University staff to install the equipment or furnishings is included.

NOTE: Contracts for construction services (such as paving) are awarded through the public works process and then administered by M&A.

Additional exclusions from the $55,000 limit for billing purposes:

• Contingency amount on contracts (the contingency appears on the contract as a recommendation to the client; the contingency amount is not part of the fixed-price contract)
• Project management fee (Alterations management fee 8%)
• Design fees (billed to the client through Design Services)
• Hazardous materials management —testing and contractor work
• C&C/ComTech cable provision

Inclusion NOTE: All labor services for construction, contracted with an outside vendor via purchase order to augment Shops labor (such as electrostatic painting or core drilling) are included in “labor and construction materials costs.”

Distinguishing between maintenance and alterations

Maintenance involves replacement in-kind of renewable surfaces. Maintenance work covers repairs, upkeep, and assuring the continuing operation of systems, equipment and furnishings.

Renewable surfaces and materials include: paint, flooring, counter tops, ceiling tiles or grids, and casework.

In conducting alterations or minor remodeling projects, in-kind replacement or repair (i.e., maintenance) of surfaces and material may occur. In such cases, if an existing material is no longer available or may be compromised by hazardous materials, an approved and/or like material of the best available quality is provided. If the renewal work calls for a change in the kind of surface (such as finished concrete floor to carpeted floor), it cannot be classified as maintenance.

Estimating and Scoping

Good faith estimating and project scoping determine the project amount.

Projects may not be sub-divided into multiple work requests to keep construction work within the $55,000 limit. Use the following checkpoints in determining if circumstances exist that would indicate use of Public Works processes.

1. Is a single, same department making the request?
2. Does the renovation or modification respond to a single program?
3. Are the project area(s) adjacent to one another?
4. Are project schedules interrelated?
5. Are technical decisions interdependent?

It is always the goal to satisfy the needs of the client, but those needs must be accommodated within the requirements of law and reasonable practice.

Always refer borderline situations for analysis to Alterations management, M&A management and/or Design Services management.