Ohio Administrative Code › Title 3318:1 - Ohio Schools Facilities Commission › Chapter 3318:1-3 - Calculation of Basic Project Cost-Project Budget › Section 3318:1-3-02 - Procedure for budget development and budget adjustments

Current through all regulations passed and filed through July 1, 2024
(A) The design specifications and materials,
			 and the formula contained in the Ohio school design manual, as specified in
			 rule 3318:1-3-01
								 of the Administrative Code and published
			 by the Ohio facilities construction commission at ofcc.ohio.gov, 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 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.