Policy 2.11.2: Construction and Tenant Alteration

Effective: October 28, 2003
Responsibility: Vice-President Real Estate, Legal Services, and General Counsel

STATEMENT OF POLICY

  1. With the exception of Transmission & Distribution properties, all construction projects (renovation, modernization, remodeling and alteration) that occur within CBC buildings and/or lands require the involvement of Real Estate Services, in order to ensure conformity with the Corporation and Real Estate Services’ global planning for the Corporation’s real estate as a whole. Real Estate Services or an entity delegated by Real Estate Services will assign a project manager who would be responsible for all activities, which fall under the responsibility of Real Estate Services .
  2. The project scope will be clearly defined through a statement of need prepared by the department requiring the project for Real Estate Services, which will clearly define the project scope and objectives. The Corporation’s professional project management team will prepare a detailed project plan based on the statement of need, and will exercise appropriate time, cost and quality controls.
  3. All construction and alterations will be done in accordance with federal, provincial and municipal codes and regulations in order to provide a safe and healthy environment
  4. Real Estate Services sign-off on feasibility study will be required prior to beginning of construction.
  5. For projects processed through the Capital Planning process, media/support departments responsible for the overall project, will assign a Senior Project Manager, who would be responsible for the management of all aspects of the project, including cost. For the portion of the project managed and executed by Real Estat, the Senior Project Manager will monitor costs through appropriate reports furnished to him/her by Real Estate Services. Real Estate Services shall be responsible for construction cost.

The attached appendices outline the roles and responsibilities of the departments and Real Estate Services.

HISTORY

This is a new Policy

CBC premises have occasionally been modified or renovated by a CBC occupant without the initial involvement of Real Estate Services. A standard approach to construction and premises alteration management will ensure that projects are realized within the scope of global planning and the strategic intent of this centralization of construction projects in Real Estate Services, which is to control the time, cost and quality of all such projects. It will also ensure that building code standards are met.

REFERENCES

Corporate Policies:


PERSON RESPONSIBLE FOR INTERPRETATION AND APPLICATION

All questions pertaining to the interpretation or application of this policy should be referred to the Vice-President Real Estate, Legal Services, and General Counsel.

DEPARTMENT RESPONSIBLE TO UPDATE THIS WEBPAGE

Corporate Secretariat.


APPENDIX A
ROLES AND RESPONSIBILITIES

Departments

Many situations arise where departments desire to modify premises and initiate a project that will result in physical changes to the premises. Examples are:

  1. A department desires to renovate its premises due to their age and obsolescence.
  2. A department requires space rearrangements due to changes in operation or organization.
  3. A department requires the installation of new equipment that affects the building (broadcast equipment, antennas, adjustments to ceilings, modifications or additions to mechanical and electrical elements and redecorating to accommodate a change in occupants).

In all situations, departments must forward a statement of need to Real Estate Services. The statement of need will define broad objectives for physical alterations or additions to the premises.

Real Estate Services

  1. Typically, Real Estate Services will detail the project concept and its requirements (space utilization standards, performance criteria, physical feasibility and economic feasibility), obtain municipal approvals when required, arrange and coordinate financing, hire architects/engineers, select the proper approach to project organization, administer the contractor selection process, hire the contractor, set the project staffing and the reporting mechanisms.
  2. Real Estate Services shall also coordinate communications relating to the project, as construction will at times impact CBC production activities, other departments as well and suppliers.
  3. Real Estate Services shall be responsible for the commissioning. This refers to the process of certifying that each building/premises system and structure conforms to contract specifications and performance test requirements. Commissioning also includes administering and documenting tasks relative to this certification process.
  4. Real Estate Services shall manage or ensure that the delegated project manager coordinates insurance and bonding in the four areas that affect a construction project:
    1. Liability
    2. Worker’s compensation (in accordance with municipal jurisdiction)
    3. Property/builder’s risk
    4. Surety bonds (bid bonds and performance bonds)
  5. Real Estate Services shall manage the payment of work performed. Usually, contracts provide for progress payments to the contractor based on the materials delivered and work completed. Contracts for partial payment are typically written to allow 10% or 15% retention until final project completion. Completion to the point that the owner or department can use the premises or the enhancements is called substantial completion. The final completion requires not only that all work, including the punch list, has been completed, but that the construction/alterations have been documented with as-built drawings, equipment guarantees, operating manuals, and, when required, a certificate of occupancy from governmental authority having jurisdiction.
  6. Real Estate Services will charge project costs to the department requiring the project.
  7. When a fit-up or project requires new furniture, Real Estate Services shall, in collaboration with procurement departments, inform the requestor of the guidelines for selecting and purchasing furniture, as well as assist the latter in decision making. This is to ensure consistency at the local level, improved furniture functionality, and compliance with Canada Labour Code ergonomics regulations.

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