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Construction Project Approval Process

1. The campus identifies the source of funds or method of finance and estimated costs.

  • If the project is to be funded through bond proceeds or issuance of bonds, contact the Chief Financial Officer or the General Counsel’s Office.
  • For major repairs or renovation, new construction or additions to existing facilities, submit a completed Method of Finance (MOF) and a project proposal to the System Chief Financial Officer. Board Policy 730.1 and Ark. Code Ann. § 19-4-1407.
    • Where the project will be funded through issuance of bonds or other borrowing requiring review by the Arkansas Division of Higher Education, the MOF is submitted after Board approval.
  • If approved by the System Office, the MOF is transmitted by the System Office to ADHE, which in turn will transmit the MOF to the Department of Finance and Administration. If the projected cost exceeds $250,000, DFA submits the MOF to Arkansas Legislative Council.
  • No affirmative steps toward construction, including employment of design professionals or contractors, may be taken until the MOF is reviewed at all levels.
  • If there is a change in the contemplated cost of a project, the funding source or any other material information contained in the original MOF, the campus or unit must submit a revised MOF, following the same process as for the original MOF.
    • Increases in the contract cost above the amount listed in the MOF may not be approved or implemented until the process for an amended MOF is complete.
  • Revised MOFs must reflect the same number as the original MOF with a capital alpha suffix.

2. For projects requiring Board approval, the campus submits to the President its project concept description, a request for authority to begin the selection process for architects and engineers, an estimate of costs and identification of potential funding sources, and any request to select a contracting process other than competitive sealed bids. Board Policy 730.1.

3. If approved by the President, the campus issues an RFP for design professionals. The notification must include newspaper advertisements. Board Policy 730.1.

  • A different process may be used for projects estimated to cost more than $5,000,000. This alternative process is described in Board Policy 730.2 and Ark. Code Ann. § 19-4-1415 and is sometimes referred to as the process for “Major Capital Projects” or the “Alternative Delivery Method.”

4. A campus committee considers the design professional proposals and recommends a minimum of three. The recommendation is transmitted to the President, and then to the Board’s Building and Grounds Committee. Board Policy 740.1.

  • For Major Capital Projects a campus committee also accepts proposals for contractors and construction managers and submits recommendations to the Board. Board Policy 730.2.

5. The Board of Trustees meets and selects design professionals and approves funding sources. Board Policy 730.1.

  • For Major Capital Projects, the Board also selects the contractor and a construction manager, if one is to be retained.

6. Proposed design professional contracts are prepared and submitted to General Counsel for review. UASP 300.1

  • For Major Capital Projects all contracts are drafted and submitted at this stage for General Counsel review.

7. Design professional contracts must be submitted to DFA. Design professional contracts exceeding $50,000 are submitted by DFA for legislative approval.  Ark. Code Ann. § 19-11-265.

8. After the design professional contracts and cost estimates are finalized the campus submits any proposal for issuance of bonds for Board approval.  If approved, the Board authorizes issuance of any bonds. Board Policy 730.1.

9. At the President’s request, multiple phases of the approval process may be combined to achieve approval of all aspects of the project at a single board meeting. Board Policy 730.1.