Chapter 3318:1-3 Calculation of Basic Project Cost-Project Budget

3318:1-3-01 Procedure for determining basic project cost.

(A) Pursuant to section 3318.01 of the Revised Code, the Ohio school facilities commission shall use the calculations identified in this rule to determine the basic project cost for new school facilities and additions to existing facilities. The cost calculations referenced in this rule are contained in the Ohio school design manual , published by the Ohio school facilities commission and are updated annually. The 2011 Ohio school design manual shall be made available on the commission's website, http://osfc.ohio.gov/OSDM.aspx.

(B) In consultation with the school district, a master facilities plan will be developed indicating the disposition of all current buildings, and enrollment and grade configurations of each building to be built or renovated. The appropriate amount of square footage per student or full time equivalent student for each building shall be specified by the 2011 Ohio school design manual, according to grade level, number and type of students to be housed. The square foot cost of a new building is based on the grade configuration and number of students to be housed in the building. The square foot cost of an addition to an existing building is based upon the grade configuration and square footage of the addition.

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(C) For the purposes of establishing cost modification factors for various regions of the state, the state will be divided into nine different regions as specified in the 2011 Ohio school design manual.

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(D) The 2011 Ohio school design manual shall be used for the purpose of calculating all probable costs required to design and construct a school building, including both construction and non-construction costs www.osfc.state.oh.us . The cost calculation also takes into consideration the following factors :

(1) For the purposes of establishing an overall cost per square foot of building summary, historical cost data, bid result analysis, inflation and analysis of current project costs will be used.

(2) The construction costs are included as part of the overall, all inclusive, square foot costs. These items include site development costs and building costs.

(3) Non-construction costs are included as part of the overall, all inclusive, square foot costs.

(E) An allowance may be provided in the basic project cost for demolition of buildings that are being taken out of service. The state share of any unused portion of the demolition allowance shall be withheld by, or returned to, the commission upon completion of the project.

(F) Notwithstanding the above provisions, the Ohio school facilities commission may waive certain square footage criteria for special conditions, including but not limited to student populations having special needs.

(G) Pursuant to section 3318.01 of the Revised Code, the assessment guidelines will be used to determine basic project cost for the renovation of existing classroom structures and eligible vocational education space.

Assessment cost guidelines are contained in the 2011 Ohio school design manual, which is available at the commission website at www.osfc.state.oh.us http://osfc.ohio.gov/OSDM.aspx.

(H) An enhanced environmental assessment may be performed by the Ohio school facilities commission to verify hazardous material abatement costs included in the basic project cost.

(I) The size of an addition shall be determined by subtracting the existing square footage from the required square footage. Under specific circumstances the commission may reduce the recognized existing square footage to account for oversized existing spaces and unusable spaces, and may provide additional dollars per square foot where reprogramming requires the relocation of existing walls.

Effective: 08/10/2012
R.C. 119.032 review dates: 05/18/2012 and 08/10/2017
Promulgated Under: 111.15
Statutory Authority: 3318.31
Rule Amplifies: 3318.01
Prior Effective Dates: 5/29/2003; 11/17/2006

3318:1-3-02 Procedure for budget development and budget adjustments.

(A) The design specifications and materials, and the formula contained in the Ohio school design manual, as specified in rule 3318-4-01 of the Administrative Code and published by the 2011 Ohio school facilities commission at http://osfc.ohio.gov/OSDM.aspx, to determine basic project cost, shall be used to determine the budget for new facilities and additions to existing facilities. The formula takes into consideration the square footage and cost per square foot necessary for the grade levels to be housed in the facility, the variation across the state in construction and related costs, the cost of the construction and the professional design and administration fees associated with a project.

(B) The project budget is based on the basic project cost for new construction, additions, and renovations. The assessment cost guidelines approved by the Ohio school facilities commission are used to determine the budget for the renovation of existing facilities.

(C) After the master facilities plan and scope of the project has been determined, the commission will provide a project budget breakdown to the school district. The project budget breakdown will establish the amount and line items of the construction budget and the non-construction budget.

(D) In the event there is a budget surplus during any phase of a project, the commission will not approve increasing the scope of the project beyond the standards, specifications and recommended alternatives provided in the design manual, or adding square footage.

(E) The commission will not approve the use of project dollars to fund systems that exceed the standards set forth in the design manual, except as approved by a variance committee established by the commission.

(F) Should the construction contingency become depleted, the first source of money used to replenish it will be the investment earnings credited to the project construction fund. If the fund, including all investment earnings credited to the fund, becomes depleted by payments of proper project costs, the school district and commission agree to complete the project, with each contributing additional moneys in proportion to their respective contribution to the fund, pursuant to section 3318.083 of the Revised Code.

(G) To manage circumstances that require an acknowledgment of a modification of the project scope or potential increase in the total project budget, and to implement proportional sharing provisions pursuant to Chapter 3318. of the Revised Code, the following procedure will be used.

(1) When circumstances occur that appear to make necessary a modification of the project scope or adjustment to the total project budget, because the circumstance cannot be addressed solely through management solutions within design standards and construction specifications, commission staff will evaluate the situation and may make a recommendation to the executive director.

(2) The executive director will review the recommendation of commission staff and determine whether the situation requires an acknowledgment of a modification of the project scope or potential increase in the total project budget.

(3) Should the executive director conclude that an acknowledgment is required in order for the project team to move forward without delay, a notice of intent to amend the project agreement will be issued, indicating the recommendation to seek the approval of the commission and the controlling board to approve any modification in the project scope and, if the total project budget is insufficient to enter into contracts or if the contingency reserve and all investment earnings on project funds should become depleted before or at completion of the project, to contribute the state's proportional share of an actual cost overrun.

(4) The school district board shall acknowledge by resolution the obligation to share the school district's portion of an actual cost overrun in proportion to their respective contribution to the project construction fund, if the total project budget is insufficient to enter into contracts or if the contingency reserve and all investment earnings on project funds should become depleted before or at completion of the project.

(5) The approval of the commission and controlling board to amend the master plan and project agreement will be sought prior to the award of construction contracts or "Guaranteed Maximum Price" amendment that cannot be fully funded within the existing budget. The amount of any increase in the project budget may be greater than or less than the notice of intent to amend the project agreement amount, due to updated expense and revenue figures. A notice of intent to amend the project agreement need not be followed by a budget increase, should circumstances allow the project to be completed within the existing project budget.

(6) In the event that implementing a notice of intent to amend the project agreement before a budget increase or scope change would cause construction delays or present a life safety hazard, the commission and the school district may pursue the budget increase or scope change without first implementing a notice of intent to amend the project agreement.

Effective: 08/10/2012
R.C. 119.032 review dates: 05/18/2012 and 08/10/2017
Promulgated Under: 111.15
Statutory Authority: 3318.31
Rule Amplifies: 3318.01
Prior Effective Dates: 5/29/03