PROJECT MANAGEMENT POLICY
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1 Heritage Bay Golf & Country Club POL-BOD-Ol -R1 PROJECT MANAGEMENT POLICY Approved Amended December 11, 2017 Reviewed by: Approved by:
2 Project Management Policy 2 TABLE OF CONTENTS 1. Purpose 2. Usage 3. Funding 4. Controls 5. Procedures 6. Addendum 1. PURPOSE: The purpose of this policy is to describe how a Heritage Bay Community Enhancement Project (or project ) is identified by a Heritage Bay Standing Committee, assigned to a Heritage Bay staff member or to a hired individual or company as the Project Manager, and followed through completion. In addition, this Policy is intended to clarify how and when a project transitions from Committee investigation, recommendation, and Master Board of Directors approval, to Project Manager control, implementation, and completion within budget and scope by Heritage Bay Management under the supervision of the Heritage Bay Master Board of Directors. 2, USAGE: This policy and supporting procedures should be used on projects that exceed $25, in cost and require material purchase, architectural designs, and implementation. In addition to establishing a monetary threshold for implementation of these project Management Procedures, the complexity of the project must be considered. When a project is transitioned from a Heritage Bay Standing Committee to the General Manager (GM) and his identified Project Manager, the GM will determine if the project has the complexity to utilize any or all of these Project Management procedural steps. The GM will discuss his/her position with the Board of Directors for final direction as to the utilization of the Project Management Procedures. If the GM does not have a staff member qualified to provide Project Management expertise, he or she should then consider hiring an individual with these skills. The cost for this hire will be incorporated into the project budget. 3. FUNDING: Funding of projects approved by the Heritage Bay Master Board of Directors must occur no later than November 15 th for it to be added to the following years budget. A project that is funded by Reserve Funds could be approved and implemented at any time, since it would not impact the dues of the Heritage Bay members in that particular fiscal year. 4. CONTROLS: The General Manager must ensure that the designated Project Management candidate has the appropriate skills and ability to manage the assigned project and address the project s monthly status including impacts to the project s cost, schedule and performance to the General Manager. In addition, the General Manager assisted by the Project Manager must provide his monthly assessment of the project including recommendations to the Master Board of Directors. If the General Manager does not have a candidate on his staff to handle these Project Management responsibilities, he may have to hire a person with Project Management skills. If this is the case, the cost of this Project Manager will be assigned to the project. The General Manager must provide the designated Project Management candidate with the necessary training to perform his/her mission. Additionally, the General Manager should provide a Project Management tool, such as Microsoft Project, to assist the Project Manager with his/her mission.
3 Project Management Policy 3 5. PROCEDURES: Once a project has been identified by the Standing Committee and the Committee BOD Liaison, the following steps should be taken: Step 1: The Standing Committee, with support from the Committee BOD Liaison, and input from Management, must develop the Project Concept. Once the Project Concept is developed, a majority vote of approval by the Standing Committee is required before it can be presented to the Board of Directors for approval. Step 2: The Committee BOD Liaison will present the Project Concept to the Master Board of Directors for approval to proceed. Step 3: The General Manager will assign a staff member as the Project Manager, or hire a Project Manager, if the appropriate skills are not available in-house. Step 4: The Project Manager and Standing Committee must solicit ideas and quotes from design/architectural professionals for the Project Concept. Step 5: Once a design/architectural professional has been chosen and a cost for the Preliminary Design developed, the General Manager assisted by the Project Manager will present this cost to the Heritage Bay Master Board of Directors and obtain approval for funding Phase 1 of the project, which will be known as the Preliminary Design Phase. During this phase, the Project Manager will obtain a quote for the Final Design of the Project. Step 6: When funding is approved, the General Manager will award a contract to a design/architectural professional to develop a statement of work (SOW), preliminary specification, Terms & Conditions and estimated cost to build/construct/install the project. Step 7: The Project Manager, Standing Committee and Committee BOD Liaison agree on the Final Design and estimated cost. Step 8: The General Manager, Committee Liaison and Standing Committee Chairman present the details of the Project Concept and estimated total cost to the Heritage Bay Master Board of Directors for approval. The details to be presented are: o Statement of Work o Final Design Specification o Preliminary schedules o Estimated Cost o Terms & Conditions Step 9: The Project Manager assumes sole responsibility for the approved Project and obtains funding for Final Design work. Step 10: The Project Manager must solicit a minimum of 3 bids based upon the Statement of Work, Final Design Specification and Terms & Conditions. Step 11: The General Manager and Project Manager presents their recommendation for contract award to the Heritage Bay Master Board of Directors for approval Step 12: The General Manager awards a contract based upon Heritage Bay Master Board of Directors approval and the use of established Heritage Bay procurement/acquisition practices. Step 13: The Project Manager manages the contract and tracks the status of the project. The Project Manager reports the monthly project status to the General Manager. The General Manager assisted by the Project Manager will brief the Heritage Bay Master BOD on the monthly cost, schedule and performance impacts. If there are any issues, the General Manager will provide his/her recommendations.
4 Project Management Policy 4 Step 14: The General Manager and Project Manager will advise The Heritage Bay Master Board of Directors of any significant cost, schedule and performance impacts. The Heritage Bay Master Board of Directors will advise the General Manager and Project Manager to continue the project, make corrective changes, or stop work based upon the information supplied during this meeting with the Heritage Bay Master Board of Directors. 6. ADDENDUM: 1.0 DEFINITION OF TERMS 2.0 WHEN COMMITTEE INVOLVEMENT WITH PROJECT CONCEPT TRANSITIONS TO PROJECT MANAGER CONTROL 3.0 HBCEP PROJECTS REQUIRING APPROVAL BY MEMBERSHIP VOTE
5 ADDENDUM TO HERITAGE BAY PROJECT MANAGEMENT POLICY 1.0 DEFINITION OF TERMS: The following definitions are provided to allow a better understanding of the Project Management Policy (PMP) and are defined as they relate to HBCEP project(s). It should be understood that the definitions are not intended to be all inclusive: HBCEP (Heritage Bay Community Enhancement Project): A proposed construction based project that is intended to serve the entire Heritage Bay Community and which has a demonstrated need and support for under a current or proposed Five Year Heritage Bay Strategic Plan. Architect: A professional licensed in the state of Florida that provides services, including drawings, renderings and other documents that define the style size and purpose of buildings and renovations. Typically, an Architect will need to work with other professionals such as engineers and contractors to take a project from concept to completion. Design-Build Firm: A firm that provides all services needed to build or renovate buildings. A Design-Build Firm will act as a single point of contact for a project, and if the services required are not within their firm, they will contract for those services and manage them. The owner of the project(s) therefore, will pay only one person or firm and that person or firm will be responsible for all aspects of the project from conception to completion. Project Manager: A person whose responsibility is to manage given project(s) and bring it/them to completion on time, within budget and in a finished state that is acceptable to the owner of the project(s). Ideally, the Project Manager is independent of all parties except for the owner of the project(s) and can typically be held directly responsible for such things as budget, timeline, safety and other programmatic parameters. Sometimes they receive incentives for delivering project(s) within given programmatic parameters and can be penalized for not achieving the same. Project Concept: A Project Concept is required under Step 1 of the PMP to start the process of a Committee s recommendation to the Board for a HBCEP. It lays the groundwork for subsequent development of a Conceptual Design, Preliminary Design, and Final Design of a HBCEP, and may leads to final approval of the HBCEP, either by the Board or by a membership vote as required under the Heritage Bay governing documents. The Project Concept reflects investigation by and collaboration between the Committee, Board Liaison, and Management. It shall include as a minimum: 1.1 Identifying Title of the HBCEP 1.2 General Description of the HBCEP 1.3 Statement of Community Based Need and Support for the HBCEP under a current or proposed Five Year Strategic Plan Following approval of the Project Concept by the Board under Step 2 of the PMP, the following information is to be developed through Steps 3-7 of the PMP: 1.4 Statement of Work and/or Request for Proposal with input from Management, to be submitted to three architects and/or construction design build firms requesting conceptual design drawings and projected cost estimate for the designs, with requested deadline for submissions of generally not more than 30 days. The Committee may solicit assistance outside of the Committee membership in drafting the RFP and SOW if additional expertise is needed. 1.5 Names of proposed companies/contractors to whom the SOW and/or RFP will be submitted, with the input/advice of Management 1.6 Request for Information (RFI) from prospective bidders which will include the following: A brief description of your firm, its capabilities, and your experience in Southwest Florida involving similar projects.
6 A list of similar projects completed in Southwest Florida during the last 24 months that exceed $1M in total construction cost. Ideally these would be projects involving golf communities similar to Heritage Bay. A list of employees directly working for your firm including Biographies of the Principals. A description of the disciplines that you have in-house (design, engineering, construction, etc.) A description of the disciplines you would sub-contract to perform the work. A description of the disciplines that Heritage Bay would be required to contract on an individual basis. The objective here is to understand how many individual contracts will be required to carry the project from concept through completion. Provide a brief description of how your firm will invoice of the work to be done. Will there be separate invoices for design, pre-construction, and construction phases? Will the fee be a percentage of the total project cost? Describe your firm ' s involvement in the design, bidding, and construction? For Example: o Would a Principal in your firm be responsible for all phases of design, bidding and construction? o What would your firm s involvement be in the marketing and resident meetings leading up to a community vote for the project? o Would your firm be the only one that would be paid by Heritage Bay, or would there be separate contracts? If so, specify the number and type of those contracts? o Will your firm be responsible for overall project management, including submittal approval, design and construction meetings, permit application, etc.? 1.7 An estimated proposed timeline for obtaining preliminary design, final design, marketing to the membership, and submission to the Board for final approval or submission to the membership for a vote of approval of the final proposed HBCEP Conceptual Design: Quite simply, a concept of what the owner (Heritage Bay) desires. A Conceptual Design allows all appropriate interested parties to come together on exactly what the end results will be. A Conceptual Design will consist of renderings and simple drawings showing what the finished product will look like and what the general layout will be. It will also include an estimate of total cost, but that estimate usually have a lot of variance, since there is no final design which include many details that determine the final cost. Typically, the cost estimate can be as much as +/- 20 percent variance of the final cost. A Conceptual Design MAY require that the selected firm charge the owner of the project(s) a fee for the required Conceptual Design documents. A Conceptual Design is typically used to determine if a project will move forward. Preliminary Design: A step up from a Conceptual Design is the Preliminary Design. The Preliminary Design includes drawings suitable for providing to potential construction firms to allow better cost estimates of total costs. The Preliminary Design will show more details and estimated costs will be more accurate (typically within a range of +/- 10 percent of the final cost). There is a cost for Preliminary Design Documents. Final Design: The Final Design means any design activities following preliminary design and expressly includes the preparation of final construction plans and detailed specifications for the performance of the construction work. Other activities constituting Final Design include final plans, project site plans and drawings, and final Engineering estimates for construction. 2.0 WHEN COMMITTEE INVOLVEMENT WITH PROJECT CONCEPT TRANSITIONS TO PROJECT MANAGER CONTROL
7 After completion of Step 8 following Board approval of the Project Concept, the HBCEP transitions from Committee involvement to the assigned or hired Project Manager who under Step 9 assumes sole responsibility for the approved Project and obtains funding for Final Design work. The Project Manager reports to the General Manager for the HBCEP Project, who in turn reports to the Board of Directors 3.0 HBCEP PROJECTS REQUIRING APPROVAL BY MEMBERSHIP VOTE For those projects that exceed $300,000 and require a vote by the membership as provided in the Heritage Bay governing documents, once Steps 1-7 are completed, in Step 8 the Board votes to approve the Project Concept for a membership vote. If the Project Concept is approved by the vote of the membership as provided for in the Heritage Bay governing documents, Steps 9-14 then apply to the completion of the HBCEP
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