On February 14, 2017, the Board of Governors approved the amendment of Policy #125 – Retained Risk Fund for Major Construction Projects.
The amendments are of a housekeeping nature, resulting from the Board’s June 2016 resolution that Board approval is required for capital projects with significant campus impact, and other amendments to bring the Policy up to date since the Policy’s adoption in 2009 and update in 2011. In particular:
- The language of the Policy was updated to reflect a change to Board and Executive approval processes for construction projects valued at $2.5 million and greater.
- The Policy’s scope was confirmed in two ways:
- The Policy is limited to construction projects, rather than all projects of a capital nature; and
- The Policy applies to construction projects at UBC Sites as well as on UBC’s Vancouver and Okanagan campuses (for example, UBC Robson Square, and the UBC Learning Exchange).
- Previously, the Policy contemplated that the Board would determine, from time to time, the amount of the Retained Risk Fee to be paid into the Fund by each project. The amended Policy expressly sets out the Fee: 1% of the project’s value. This will provide clear guidance to the community and a single reference point of reference for matters concerning retained risk.
- In keeping with these amendments and the proposed amendments to Policy #126 – Capital Projects, Capital Purchases and Internal Loans, which specifically defines “Construction Projects”, the name of the policy has been updated to refer to Major Construction Projects, rather than Major Capital Projects.
A copy of amended Policy #125 is available at https://universitycounsel.ubc.ca/files/2017/02/policy125.pdf.