I am writing to introduce a new method of costing out renovation and
repair work for University facilities and to ask for your cooperation in
adhering to state and University policies and procedures for requesting and authorizing improvements to our capital plant.

Effective July 1, 2003, all renovation and repair work on University
buildings will be administered by Facilities Management under a Job Order Contract with Centennial Construction Enterprises, Inc (Centennial). Centennial succeeds Gilbane Construction Company, which has been performing renovation work for the University for the last seven years. Although Centennial is a new contractor to the University, our procedures for requesting and authorizing work will not change.

Job Order Contracting (JOC) is a method of procuring construction services that has been used successfully in the private sector and the federal government. Virginia Commonwealth University is the first public institution of higher education in Virginia to be permitted by the state Department of General Services to employ JOC for renovations and repairs to its physical plant.

Under the JOC concept, Facilities Management and Centennial will agree to a lump sum, fixed price after the scope of work has been finalized. Centennial will then solicit prices from the most qualified
subcontractors in the area. Regardless of the bid price received from the subcontractors, the price to you will be the price agreed to up-front, except for the cost of approved change orders. Unlike the Gilbane contract, Centennial will not receive a fixed percentage for their overhead and profit above the approved price.

The immediate advantages of Job Order Contracting include improved timeliness, better pricing and the ability to cultivate relationships with those subcontractors who do the best work for the least money, something we could not do with the low-bid procedures of the Gilbane contract. The Board of Visitors authorized the implementation of Job Order Contracting because it has proven to be the most economical way of procuring renovations-type work.

I want to take this opportunity to emphasize that University Policies and Procedures require that all renovation work be coordinated through Facilities Management. Moreover, work requests must be submitted to Facilities Management. Recently, we have noticed an increase in work being performed without proper authorization by Facilities Management. University departments are not authorized to go directly to a contractor to have any work performed, whether it involves painting, changing door locks, adding doors, electrical outlets, casework, or any work that might alter the appearance or arrangement of the built environment.

The Commonwealth of Virginia requires that work beyond the simplest repairs be accomplished only after a building permit has been issued, either by the State, City of Richmond or Facilities Management, depending on the ownership of the building and/or the scope of the work. Most work, other than cosmetic changes such as painting or replacement of carpet, requires a permit.

Before a permit can be issued, Facilities Management must have a detailed scope of the work proposed and, in many cases, detailed plans and specifications signed by a licensed architect or engineer. In the event the work requires that signed/sealed documents be developed by an architect/engineer, Centennial will obtain the services of an Architect/Engineering firm; the design will be developed in consultation with the requester; the price will be agreed upon; and the work will be accomplished.

VCU operates under strict direction from the Commonwealth and ignoring those requirements is a violation of state law. Aside from the fact that work not authorized by Facilities Management may not be properly documented and may not comply with building codes, noncompliance with state policies and procedures jeopardizes our ability to obtain additional autonomy from state oversight of our capital program.

To ensure compliance with these procedures, departments or units found in violation will be assessed a fine of 50 percent of the value of the work performed. The proceeds from the fines will be credited to a Maintenance Reserve account for the campus on which the violation occurred.

I appreciate your cooperation in helping VCU adhere to these
state-mandated requirements.

Paul W. Timmreck
Senior Vice President for Finance and Administration

Copies:
Dr. Eugene P. Trani
Mr. Donald C. Gehring
Dr. Hermes Kontos
Dr. Roderick J. McDavis
Ms. Sue Ann Messmer
Dr. Sheldon M. Retchin
Dr. Marsha R. Torr
Mr. Peter L. Wyeth
Mr. Brian J. Ohlinger