FY2015 Edition – rev. 1 (c)2014 Archdiocese of Los Angeles

“Construction” Capital Improvement Projects o New Buildings / Structures o Existing Facilities & Buildings Maintenance & Repairs Additions Renovations / Remodels o Major Property Insurance Claims involving Buildings (Replacement) Construction 2

Key Steps to Executing a Construction Capital Improvement Project (an overview) o Scope o Budget o Schedule o Funding o Approvals o Contracts o Payments An Overview 3

Scope o Define the parameters of Construction Capital Improvement Project Identify Project Requirements Prepare a written description of Work and/or Drawings (as needed) Communicate Expectations Quality Prioritize Work (as needed) An Overview 4

Budget o Establish a Project Budget based on defined Scope Obtain Cost Proposal / Estimate from: Contractor / Vendor Design Professional or Cost Estimator o Project Phases & Costs For Larger Construction Project requiring Design, Engineering, Plan Check & Permits 5 An Overview

Budget o Project Phases & Costs Design / Engineering Plan Check / Permit Fees Bidding Environmental Hazard Abatement (if needed) Construction Costs Contingency 6 An Overview

Schedule o Do not wait until the last minute to request approvals, vendor pre-qualification or contracts o Establish a Project Completion Date o Consider Contingency / Alternative Plans o Consider Parish / School Events & Schedules (i.e. Summer School, etc.) 7 An Overview

Schedule o Allocate adequate time for: Approvals Scope Definition Design / Engineering Drawings / Specifications Requests For Proposal Plan Check / Permits Bidding / Multiple Proposals Contracts Construction Close Out 8 An Overview

Funding o Requires 100% Funding – Cash On Hand including Contingency o Note: If Total Project Costs exceeds $20,000 Deposited in Parish or School restricted Investment Pool Building Fund Account An Overview 9

Approvals (if total project costs exceeds $20,000) o Auxiliary Bishop (except Archdiocesan High Schools) Pastor sends written letter requesting approval o Financial: ACC Finance Office (Financial Services) o Vendor: Recommended Vendor or Pre- Qualified 10 An Overview

Approvals Dependent on Scope (if total project costs exceeds $20,000) o School Projects – Contact Department of Catholic Schools o Liturgical Projects – Contact ACC Office for Worship May require review of Liturgical Design Review Committee (“LDRC”) Note: See Policies & Procedures section for more specific details and requirements. An Overview 11

Contracts o Total Project Cost Less Than or Equal to $20,000 Use Recommended ACC Small Construction Project Contract o Total Project Costs Exceeds $20,000 Use Only ACC Standard Contracts Contact the ACC Construction Department Note: See Policies & Procedures section for more specific details and requirements. 12 An Overview

Payments (if total project costs exceeds $20,000) o Submit Completed Investment Pool Request Form Withdrawal from Investment Pool Building Fund Account that contains Deposited Project Funding o Attach Invoice & Supporting Documentation Note: See Policies & Procedures section for more specific details and requirements. 13 An Overview

Requirements & Approvals Consultants / Contractors / Vendors Volunteers Environmental Hazards Resources Capital Improvements 14

REQUIREMENTS & APPROVALS BASED UPON PROJECT CLASSIFICATION Minor Projects o Less than or equal to $20,000 = Local Approval except under special circumstances Major Projects o Greater than $20,000 but less than or equal to $1,000,000 o Greater than $1,000,000 requires Building Commission approval o Greater than $2,000,000 also requires Outsourced Project Manager Classification is based on the Valuation & Total cost of Project, not the cost of individual parts Capital Improvements: Requirements & Approvals 15

Policies & Procedures: Requirements & Approvals o Funding Parish / School has 100% of funds available (including Contingency) o Authorized to Execute Contracts Pastors (for Parishes, Elementary Schools & Parish High Schools) Principals of Archdiocesan High Schools o Contractors Valid license in the State of California Minimum Insurance Requirement o Contract Archdiocese recommends use of ACC Standard Small Construction Contract (available in Administrative Handbook on Archdiocese web site, under Publications) 16

ACC Standard Small Construction Project Contract (Terms & Conditions) o Offered for Parish or School projects <= $20,000 o Developed by ACC Legal Counsel & Construction Department Use instead of Contractor Proposals or Contracts Suitable for General Contractors and Specialty Trade Contractors (i.e. Roofing, Plumbing, Electrical, etc.) 17 Policies & Procedures: Requirements & Approvals

To obtain an Adobe PDF copy of the Contract, access the Archdiocese web site: o o Select “Chapter 7 – Facilities” o Search for the link to the “Small Construction Contract” 18 Policies & Procedures: Requirements & Approvals

Obtain at least 3 Bids / Proposals Get Project Expectations in Writing (Price, Scope & Schedule) Be cautious when signing Proposals / Contracts prepared by Contractors Beware of the fine print! Only sign the contract if you completely understand the terms Confirm the Contractor has Workers’ Compensation Insurance for their employees Check the State of California Contractors State License Board Web Site at: to perform a License Checkhttp:// 19 Policies & Procedures: Requirements & Approvals

Don’t pay cash Don’t let the payments get ahead of the work completed, and don’t pay the full cost of the job up- front o Contractors should not ask for a deposit of more than 10% of the total cost of the job or $1,000, whichever is less, unless the contractor provides a bond or bond equivalent ensuring completion of your contract. Hold Retainer payments until job is completed Ask for Lien Releases 20 Policies & Procedures: Requirements & Approvals

Contact the ACC Construction Department for Consultation & Review if your project involves: o Asbestos, Lead & Mold o Structural Renovation o Structural Modifications o Conditional Use Permits (CUP) o Day Care Facilities o Pre-School Facilities If you have questions, call us o (213) Policies & Procedures: Requirements & Approvals

$20,000 and <= $1,000,000 Required Approvals Regional Bishop (except Archdiocese High Schools) Office For Worship (if Liturgical Project) Superintendent (if School Project) Financial (before contract) Funding 100% or approved ADLA Loan / Line of Credit (“LOC”) Deposited in Parish / School restricted Investment Pool Bidding Competitive Bid Contracts ACC Standard > $2,000,000 Required Approvals Same as left Funding Same as left Bidding Same as left Contracts ACC Modified AIA Agreement +Outsourced 3 rd Party Project Manager > $1,000,000 Required Approvals Same as left + Archdiocesan Building Commission Funding Same as left +Archdiocese Cash Flow Model / Chart Bidding Same as left Contracts ACC Standard or ACC Modified AIA Agreement 22 Policies & Procedures: Requirements & Approvals

$20,000 and <= $1,000,000 Payments Submit completed & signed Archdiocese Investment Pool (“IP”) Withdrawal Request Attach invoices and supporting documentation Funds from restricted Parish / School IP Account Reviewed by ACC Construction Department Payments processed by ACC Financial Services Closeout Project review by Parish / School and Archdiocese representative Lien Releases > $2,000,000 Payments Same as left Closeout Same as left + Outsourced 3 rd Party Project Manager > $1,000,000 Payments Same as left + Attach completed & signed AIA Payment Application (if contract issued on ACC Modified AIA Agreement) Closeout Same as left + Punch List (if contact issued on ACC Modified AIA Agreement) 23 Policies & Procedures: Requirements & Approvals

$20,000 and <= $1,000,000 Typical Projects Painting Roofing: Repairs & Replacement Paving: Repairs & Replacement Plumbing: Repairs, Infrastructure Replacement & New Fixtures Electrical: Repairs, Upgrades and Improvements HVAC: Repairs, Upgrades Lighting Asbestos (ACM) Abatement > $2,000,000 Typical Projects New Buildings Large Scale Existing Building Renovations Conversion of Large Existing Buildings – Change of Occupancy & Use > $1,000,000 Typical Projects Existing Building Renovations Conversion of Existing Buildings – Change of Occupancy & Use Synthetic Turf Fields Site Improvements 24 Policies & Procedures: Requirements & Approvals

Additional Approvals Required o Auxiliary Bishop (except Archdiocesan High Schools) Pastor sends written letter requesting approval o Financial: ACC Finance Office (Financial Services) Additional Approvals Dependent on Scope o School Projects – Contact ACC Education Department Superintendent of Elementary Schools Superintendent of Secondary Schools o Liturgical Projects – Contact ACC Office for Worship May require review of Liturgical Design Review Committee (“LDRC”) 25 Policies & Procedures: Requirements & Approvals

Consultation & Review o ACC Construction Department Funding o Parish/School has 100% of funds available for the project or qualify for a short term Archdiocesan Construction Loan / Line of Credit (“LOC”) o Funds deposited in restricted Investment Pool Account before Contract is issued Master Plan/Maintenance Plan o Proposed Project conforms with Approved Master Plan for the Parish/School (excludes Maintenance Projects) o Parish/School has a Facilities Maintenance Plan 26 Policies & Procedures: Requirements & Approvals

Bidding o Competitive Bids (Minimum of 3) from Pre-Qualified Contractors Contractors who are not on the Pre-Qualified List must complete the Pre-Qualification Process and meet minimum Archdiocesan requirements o Negotiated / Guaranteed Maximum Pricing (instead of Competitive Bids) requires prior approval of the Archdiocesan Building Commission 27 Policies & Procedures: Requirements & Approvals

Contracts o ACC Standard Agreements Only Archdiocese Small Construction Contract Custom Modified AIA Contracts o Construction Department prepares contracts on behalf of Parish/School 28 Policies & Procedures: Requirements & Approvals

Pre-Requisites for ALL Major Projects o Credit Check / Evaluation Evaluation required before fundraising or design o No outstanding past due Accounts Receivables (i.e. Medical, “MI” - Monthly 1/12 th ) o Any existing Archdiocese Loans / Lines of Credit (“LOC”) need to be paid in full o Parishes or Schools on subsidy are subject to further review May require a meeting with an ACC Financial Services Department representative 29 Policies & Procedures: Requirements & Approvals

Financial Analysis o ACC Construction Department works in collaboration with ACC Financial Services Department to conduct a review and prepare analysis for evaluation o Cost Data o Funding Review 30 Policies & Procedures: Requirements & Approvals

Cash Flow Model & Chart o Required for Projects involving a Construction Loan / Line of Credit and large major projects (> $1M) o Parish / School submits Project Cost Data and Funding Information o Construction Department assists in preparing cost distribution using provided Cost Data Where possible, a Project Manager or designated representative for the Parish / School prepares the distribution o An ACC Financial Analyst prepares funding distribution using Pledge Schedules provided by Parish / School 31 Policies & Procedures: Requirements & Approvals

Typically NOT a Summer Project Requires Extra Preparation Time Due To: o Planning o Additional Required Approvals 32 Policies & Procedures: Requirements & Approvals

Additional Required Approvals o Archdiocesan Building Commission Conceptual Plan Review & Approval Master Plan Review & Approval Conceptual/Schematic Design Review & Approval In some instances, the Master Plan and Conceptual/Schematic Design Review may be combined o Financial Review & Approval Before Bidding After Receipt of Bids, Prior to Issue and Award of Contract 33 Policies & Procedures: Requirements & Approvals

Additional Requirements o Project Management Parish / School must hire outsourced Pre-Qualified Owner’s Project Manager (“PM”) PM responsibilities include: managing project scope, schedule, budget, entitlements, bidding, bid analysis, oversight of design & construction, progress payments, change directives, change orders, and close out documentation 34 Policies & Procedures: Requirements & Approvals

Recommended List o Consultants, Contractors, Specialty Trades & Vendors Recommendations based on history of successful past performance Pre-Qualified List o Firms completing the evaluation process Usually for a specific Parish / School project, but may have not completed an entire project Lists are updated periodically by ACC Construction Department Policies & Procedures 35

Submittal For Pre-Qualification o Requires Recommendation from Parish or School Only for specific Parish or School project No referral of candidates for other Parishes/Schools Written letter from Pastor (Parish or Parish School) or Principal (Archdiocesan High School) Candidates Completes Pre-Qualification form including List of References Evaluation and Interviews Submits required Certificates of Insurance Policies & Procedures 36

Minimum Pre-Qualification Requirements o Valid and current State of California license for applicable profession or trade 5 years of continuous operations under current business name / license and in good standing o Valid Insurance General Liability, Workers’ Compensation, Auto and where applicable, Professional Liability o References o Acceptance of Archdiocese contract terms and conditions Policies & Procedures 37

Volunteer Construction Work o Discouraged Due To Risk of Injury Lack of experience increases risk of accidents Liability Exposure Costs due to injury can offset or exceed cost of paying a qualified, licensed and insured Contractor Warranties None provided by volunteers o Requirements for Volunteers Performing Services Normally Requiring a License (if Paid) Under Supervision of Licensed Contractor Requires Proper Insurance Coverage Policies & Procedures 38

Volunteers Should Not : o Work Above Ground Level o Use Ladders, Scaffolding, Platforms, Lifts o Perform Electrical Repairs o Use Power Tools o Be assigned to Strenuous Labor, Lifting, Hoisting o Work around Environmental Hazards Examples Policies & Procedures 39

Proposed Maintenance, Repairs or Construction (New, Additions, Remodel, Renovation or Demolition) may trigger required abatement of: o Asbestos / Asbestos Containing Materials (“ACM”) / Asbestos Containing Building Materials (“ACBM”) o Lead, Lead-Based Paint (“LBP”), Lead Glazing on Ceramics, Lead Containing Building Materials o Mold Policies & Procedures 40

If in doubt, before beginning a proposed construction project: o Contact the ACC Construction Department o Conduct an Inspection, Site Survey and Assessment using a Certified Consultant o Obtain a written Report with recommendations o Conduct necessary abatement using Certified Abatement Contractors Policies & Procedures 41

ACC Construction Department o Contact Information Phone: (213) Policies & Procedures 42

Publications & Guidelines o Administrative Handbook Chapter 7: Facilities o Archdiocesan Building Commission Construction Policies o Construction Project Checklist o “Solar Panel Power System Advisory” dated March 30, 2011 Issued to ALL Pastors, Administrators, Principals and Business Managers Policies & Procedures 43