Capstone Handbook 082011

8/13/2019 Capstone Handbook 082011

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[Updated January 2012]

CM 4900 SENIOR CAPSTONE

STUDENT HANDBOOK

CONSTRUCTION MANAGEMENT DEPARTMENT

SOUTHERN POLYTECHNIC STATE UNIVERSITY

MARIETTA, GEORGIA

TABLE OF CONTENTS

1.0 Course Administration for All Capstone Students........................................ 1-22.0 General Guidelines for All Capstone Students ........................................... 2-53.0 Capstone Project Requirements (General Concentration)........................... 6-114.0 Capstone Project Requirements (Development Concentration) ................. 12-205.0 Capstone Project Requirements (Specialty Concentration) ........................ 21-266.0 Capstone Project Requirements (Facility Management) 27-31

7.0 Project Approval Requirements.................................................................... 32-33

8.0 Progress Sign Off 34-38

9.0 Appendix

Checklists ...40-50

Additional Items for Consideration 51-52

Time Card/Daily Activity Log 52


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B.S. CONSTRUCTION MANAGEMENT PROGRAM

SOUTHERN POLYTECHNIC STATE UNIVERSITY

SENIOR CAPSTONE

1.0 Course Administration for ALL Capstone Students

1.1 Turn in Project Proposals with plans and specifications on or before first class meetingto the Course Professor for approval.

1.2 The Capstone Project Lab is reserved for the use of CM 4900 students during scheduledclass time and whenever the room is not otherwise scheduled. Other CM students may usethe lab at the Capstone Professors discretion.

1.3 Lab class time attendance is to be two continuous hours per class-day in the timeperiod of scheduled class time. Timesheet/work logs for the previous week shall beelectronically delivered.

1.4 The Project is due according to the schedule issued by the professor and dates indicated atthe beginning of this Handbook. Capstone projects will not be accepted early unlessscheduled by the Capstone Professor.

1.5 Project Defenses will be scheduled for the end of the semester as indicated by the syllabus.Senior Exit interviews with the Program Head will be scheduled for that afternoon. Theseare two different appointments: one with the Capstone Defense panel, one with theProgram Head. Students shall confirm with the CM Department Secretary that they haveproperly entered their information on the Alumni system.

1.6 This course is comparable to industry employment. Attendance is presumed. Aprofessional atmosphere of courtesy and cooperation is expected. Attendance at

presentations and guest lectures are required.1.7 Final grading for the Capstone Course will be determined by the Course Professor

based on Defense Panel assessment and professionalism.

1.8 A one-hour "firm meeting" time is scheduled for the first hour of the first class meeting ofthe term. Firm meetings will be held in subsequent weeks at the discretion of the CourseProfessor. The schedule for these meetings, and milestone requirements, will beestablished during the first firm meeting or by syllabus. Students are expected to prepare aschedule that establishes milestones leading to the successful completion of the Capstoneproject in one semester. Student schedules are due by the second meeting of the semester.This latter schedule will be reviewed for acceptability by the Course Professor and used to

assess student progress throughout the semester. The schedule must comply with theCapstone Statement of Understanding.

1.9 Absence from required class meeting will only be considered withprior notice to theCapstone Professor.

1.10 The MS Excel timesheet workbook is to be kept current daily, completed fully andaccurately, and transmitted on the day of the week and by the time specified by theCapstone Professor.

1.11 No food, no drinks, no cooking appliances, nor radios are permitted in the Capstone Project


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Laboratory. NO TOBACCO PRODUCTS, including chewing tobacco, are permitted in theLab. You may use the CD feature of the computers with earphones for music.

1.12 The CM faculty feels strongly that the interaction between seniors working on theirprojects and shared knowledge leads to the development of better projects by each andevery student in the class. This experience is uniquely designed to provide theopportunity for professional interaction of the participants in an automated constructionoffice atmosphere. Up-to-date equipment; similar project work goals; adequateworkspace; and, most importantly, a group of well-educated (soon to be practicing)professionals interacting in an office "team" setting are important elements of the course.

1.13 Faculty supervision should not be expected, but is always available during class meetingtimes.

1.14 Do not change the "desktop" settings on the laboratory computers. Do not install anysoftware/shareware on the laboratory computers. Do not put personal passwords on anyprogram. You are not the exclusive users of the laboratory. Computers are subject tocomplete re-formatting by the Department at any time so you should maintain backupcopies of your work AT ALL TIMES.

1.15 Prior term Capstone projects are available for reference. They will be available for

review during class times only and may not be removed from the capstone lab. DoNOT take papers from these project books.

1.16 Students are required to sign a contract with the Capstone Professor to meet allmilestones established by the Capstone Professor for the semester within thedeadlines announced in the syllabus or they will not be able to defend their projectand receive a passing grade.

1.17 Each student is required to prepare the standard weekly schedule for time management incompleting their Capstone Project. Format for this schedule shall be provided by theCapstone Professor and the student shall submit by the date shown on the CapstoneCalendar.

1.18 Students are not allowed to use projects they have worked or are currently working on attheir jobs for their Capstone Project.

2.0 General Guidelines for ALL Capstone Students

2.1 Academic honesty & integrity are vitally important to your successful completion of thisCourse. Students are expected to be very familiar with what constitutes plagiarism.Evidence of plagiarism in the Capstone Project may result in a grade of "F" and furtherdisciplinary action.

2.2 Each student shall be neat, thorough, and original. Only clean copies of documents areacceptable.

2.3 EACH STUDENT SHOULD HAVE SOMEONE PROOF READ THE PROJECTFOR SPELLING, TYPING AND LOGIC ERRORS. A PROFESSIONAL

QUALITY PRESENTATION IS EXPECTED!

2.4 Each student should use a binder and include your name and semester on the coversheet.

2.5 Each student must do his/her own work. Cooperation with fellow students, exchange ofideas and discussion of problems is encouraged; however, be careful not to be misled bya fellow student. Each student is encouraged to consult with members of the CM faculty


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when appropriate. Information may be gained from contractors, architects, suppliers,building officials, or anyone associated with the construction industry. The best sourcesfor information should be those who are associated with your project. Include with yourproject extra work that is of interest to you. Enhance your total project; for example,photographs and tailored digital video may add to the quality of the presentation.Materials from prior capstone projects or directly from industry employers are not

to be included in your project.

2.6 Drawings and specifications may NOT be returned to the student at the end of theCapstone Defense.

2.7 Any proposal for changing the scope of the Student's project shall be submitted to theCourse Professor for approval within the first ten calendar days of the semester.

2.8 Keys and security information for the capstone laboratory can be obtained from theCapstone Professor at the beginning of the semester. They must be returned by on thedate of Project Defenses. Failure to return keys will result in a grade of "Incomplete, (I)".

2.9 Students should plan to turn in an original of your project on the due date. At theDefense your original project may be kept by the Department, so you may want toprepare and keep a copy of the project for your records.An electronic copy of your

project must also be submitted on the day of Project defenses.2.10 Each student shall maintain a "timecard and work log" for each day worked keeping

track of office (and other) time and briefly indicating activities done by the studentduring office or other hours. Completed and signed timecards are to be included as partof the project.

2.11 The published minimum requirements must be submitted in order to receive a passinggrade. Failure to fulfill a minimum requirement may be allowed by the Course Professorin rare cases. Both the request for and approval of deviation must be in writing.

2.12 Typed (word-processed) Projects are required however, professional quality lettering ispermissible in some parts of the Capstone Project. Quantity take-off sheets do not need

to be typed. Any questions concerning the quality of your lettering may be resolved bychecking with the Course Professor.

2.13 Organization of the Project is important. It must be in a logical order. The Projects areread and evaluated by several people in the brief time between due date and ProjectDefense. The degree of professionalism and legibility of your Capstone Project is asignificant factor in the evaluation of your project. A Table of Contents and theMinimum Requirements Checklist are required.

2.14.0 Basic Assumptions:

2.14.1 All major equipment is rented.

2.14.2 All utilities are available. (exception for 'development' project)

2.14.3 No site access difficulties exist. (except as shown in 'development' projects)

2.14.4 Unless stated to the contrary in the contract documents, there is no rock on the site.

2.14.5 No difficulty will occur with any government authorities.

2.14.6 No union unrest will occur.


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2.14.7 Your company is over 5 years old.

2.15.0 Scheduling Considerations:

2.15.1 All construction activities shall be shown at a level of detail appropriate to thetype of construction.

2.15.2 The total number of activities shall be appropriate to size and complexity of the projectbeing constructed.

2.15.3 All activities shall be coded so as to allow different displays of information for variousproject management and owner personnel.

2.15.4 Supplemental information showing activity floats and derivation of activity durationshall be provided.

2.15.5 Schedule calculations shall allow for holidays, weather, and alternates asappropriate. Recommended drawing size is size C (17"x22"). All schedules shallbe neatly folded and included in the project books.

2.16.0 Quantity Survey & Estimate Guidelines.

2.16.1 Quantity Sheets, Cost Analysis Sheets, and Summary Sheets may be designed by thestudent. It is advisable to have them reviewed by the Course Professor.

2.16.2 All quantity calculation sheets may be completed in pencil, but must be neat andlegible. All estimating work should be self-explanatory.

2.16.3 Published cost data may be used for developing the material and labor prices; however,on major items, students are encouraged to check the prices with the actual sub orsupplier prices. All published cost data must reflect Project locale.

2.16.3 Estimate summary, schedule of values, etc are to be itemized using updated CSI format(not Div 1-16)

2.16.4 Change order proposal to be submitted identifying the scope and cost of at least three (3)materials, process/procedure, or equipment, etc that would enhance the sustainability orLEED credit for the project (required for General and Specialty ONLY)

2.17.0 Business & Project Management Considerations.

2.17.1 All documents included in the Project shall be completed with all blank spaces filled

in as appropriate. All documents shall be properly signed and sealed.

2.17.2 The organizational structure and company overhead should match with the Projectsize. Appropriate management principles shall be used in staffing theorganization.

2.17.3 The financial statements for your organization shall be issued by the Capstone Professorwithin the first two weeks of the academic term. Adjustments may be made by thestudent to match company profile.


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2.17.4 Ensure consistency when assigning dates for your project. You may need to change biddate or data dates for your company financials to be consistent. You can do this byaddenda to the contract documents or by statement in your list of assumptions.Company data dates, cash flow, contract execution, bid date, subcontract execution,change-order examples should be consistent with each other.

2.17.5 Prepare a narrative that describes how your company plans to minimize the Projectsimpact on the environment (e.g. air, water, energy, soil, noise, etc.), and community.

2.18 Capstone Project Defense and Panels

2.18.1 Your Capstone Project is graded by panel members, with the chairperson presiding.

2.18.2 The final grade in the course is determined subsequent to the Project Defense. The panelgrade is submitted to the Course Professor who, after considering your performancethroughout the semester, assigns the final grade.

2.19 When the final Project is received by the Capstone Professor, the student shall show theCapstone Professor, or the Capstone Professors designee, each item listed on the

minimum requirements list. If minimum requirements have not been met, the studentmay receive an "I" for the course, as determined by the Course Professor for furtheraction.

2.20 Once the student shows the Capstone Professor that the minimum requirements havebeen met, the student will be given contact information for his/her Capstone Panelists.The student is then responsible for transporting their own Capstone Project betweenPanelists as directed by the Capstone Professor. Each panel member will preparequestions (referencing the Project page number) to ask each student during the CapstoneDefense.

2.21 Students should arrive early for their Defense dressed in professional attire: men-abusiness suit or sport coat & tie; women-pant suit, skirts, dress, as appropriate.

2.22 Project Defenses shall commence promptly. The chairperson will introduce the panelmembers and the student. The student will brief the panel on the Project. The membersof the panel will then take turns asking questions at the direction of the chairperson. Atthe end of the defense, the student will be excused and the panel will confer.

2.23 Panels may determine the grade for each student at the end of each defense or, after allDefenses are complete, at the discretion of the panel chairperson. In the event of anydisagreement about the grade, their chairperson shall make the final determination. Anassessment form is completed by each panel member and student may review these

sheets the week following the defense.


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3.0 Capstone Project RequirementsGeneral Concentration

3.1 General Requirements: The Capstone Project must be realistic. All assumptions should bereasonable. For example, most General Contractors subcontract much of the work. All work tobe subcontracted should be estimated, totaled and marked-up as if done by a subcontractor. Thiscan be done on the regular Cost Sheets and Summary Sheets under the Subcontractors name.The marked-up price is entered under "Sub" on your Summary Sheet.

3.2 Oral Presentation: The student should have a presentation of approximately fifteen minutesprepared using PowerPoint and, optionally, presentation boards. The presentation will be ofprofessional quality. Contractors/owners are required to convince clients, lenders, and publicofficials of the viability of their projects. This requires excellent presentation skills. The studentsshould demonstrate that he or she has acquired these skills by beginning the Capstone Defensewith the presentation. Copies of presentation slides should be included in the Capstone Binder.

3.3 Administrative Submittals: This section should include the following: Plan Request(approval), Time Cards Daily Activity Log Minimum Requirements, Checklist with pagenumbers, and all other administrative requirements set out in the Capstone Project StudentHandbook and as designated by Capstone Professor.

3.4 Table of Contents: Identified by the tab section with page numbers of the items includedin each section.

3.5 Executive Summary: should be written to articulate what you want the reader to concludeafter reading the rest of your submittal. An Executive Summary is the most important part of thesubmittal; should focus on the conclusion you want the evaluator to reach and not onsummarizing everything in your proposal. The student should provide a one or two page(maximum) executive summary at the beginning of the report that provides the significantfindings of the students research, analysis and compilation of material. The following should beincluded:

Describe the project in terms of use, location, size and any other features that the readerneeds as part of the executive summary to envision the project.

Scope, objectives, and limiting conditions of report: Describe what is covered by thereport, the purpose of the report and list the objectives to be achieved in the study.

Summary of significant points; list all of the major findings. Summarize the conclusions you have reached as to the pricing, scheduling, and

profitability of this project from a contractors or construction managers perspective.

3.6 Business Organization and Financials

The student should focus on the organization of the firm, which may or may not includethe following divisions: preconstruction, interiors, and project management. If thesedivisions are not part of the company (but are needed for the project), then a narrativeexplanation should be provided as to how the services are to be provided to the project.

This section should also include a discussion of non-employee business professionalsincluding their roles, duties and responsibilities. Among these are attorney, bankers,etc. all professionals not in your employ that are required to support your businessoperations.


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The ownership vehicle for the company should described (L.L.C., S Corp., Inc.,partnership, etc.) and the management control structure and decision making authorityfor the project should be detailed.

The balance sheets and income statements of the hypothetical company provided shallbe analyzed to show a complete picture of the financial health of the company. Annualcomparisons with industry standards shall be part of this analysis. Further, the estimateand proposal for the Capstone Project shall reflect the financial and cost structure of the

hypothetical company. As part of the analysis of the hypothetical company, a narrativeshall be provided which describes the present state of the company, the trends underwayat the end of the last given year, and a financial and strategic plan of action for the nextthree years for the company.

Company Narrative & Qualifications: Company Size (volume and number of projectsper year) Identify key criteria such as project size, field overhead, location, otheroverhead, profit margin, etc. Any factor that will be considered in the decision to pursueprojects should be listed and explained as part of the qualifications statement and cannotuse form statements (such as A305 or consensus document) it must be an originalsubmittal.

Organizational chart that reflects all key figures/departments in the company. State whythis form of organization was chosen and describe the benefits and limitations of thechosen form.

Listing of the major duties and responsibilities of each key employee. Professional Resumes of key personnel and should be brief (one half page each) but

should cover the work and education qualifications of each key individual.

Describe the projects completed (or currently underway) by the company and set out anystrong capabilities that the organization has developed. If there is a strong specialty ofthe organization, bring that out.

Provide a corporate schedule in bar chart format for the next three years showing whenprojects will start and when they will be completed.

List of consultants for the company and describe the services to be provided. Company financial statements past and future projections (three years). Statements are to

be consistent with industry standards. Balance Sheet, Income Statement, and Cash flowto include a detailed explanation of G&A is required including how it is recovered.

Ratio Analysis and Trend Analysis on the companys operation should be provided toinclude a narrative that explains trends.

3.7 Project Strategy and Planning - This section should include at least the following:

Location of Project State the location of the project. How many states does yourcompany work and why? Scope of Project? What does your company intend to self-perform and what was the rationale for selecting what scope of work to self-perform?

Project Acquisition: Describe the strategy used to acquire the project. What percentagewas won through a hard bidding process? Was the contract negotiated? Was the contracta public bid? Explain which type of contract (i.e., negotiated or competitive bid) yourcompany prefers and why?


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Source(s) of capital: Describe how loans were structured (amounts, terms, costs,guarantees, etc.) and the sources of financing. Provide a detailed analysis of theminimum project loan desired for your capstone project.

Bonding: What is the bonding capacity of your company and how was it determined?Was and what types of bond(s) are required for the project?

3.8 Construction Cost Estimate

Included in the Capstone Project must be detailed estimates covering all work requiredfor General Conditions, Sitework, Concrete, and Masonry. Show calculations and totals(include all work for quantity take-offs).

All detailed estimates will be taken-off and priced using "bare" costs. Mark-up, taxes,labor burden, etc. will be applied on Summary Sheets. Crew breakdown plus laborand equipment rates will be developed and included. Include a schedule of wagerates.

All other subcontracted work will be taken-off in sufficient detail to permit costing byeither "unit" or "assemblies" approach. You should ensure that the final subcontractorcost includes all appropriate subcontractor mark-up prior to entering totals on theSummary Sheet. The appropriate units of measure should be shown for each item (squarefoot, linear foot, etc.) along with the quantity and unit costs of each. These are totaled andother costs are added (permits, fees, indirect costs, overhead, profit, etc.) to arrive at thecost estimate of the project.

Any unit prices or alternates required by the Bid Form shall be estimated separatelyand must include mark-up. Contract change orders shall also include mark-up.

Be sure to include the following: General and Administrative expense allocation CostAnalyses for GC and Subcontractor Work Cost Summary and Bid Preparation Detailedtake-off for General Conditions, Sitework, Concrete, and Masonry including material(quantity and price) and labor (hours and price)

Provide a square-foot estimate cost for all other areas of scope. (MEP, Finishes, etc.)3.9 Project Contract

This section shall include a fully-executed standard contract between a GC or CM and anowner. Discuss the sections that pertain to contract dollar amount, payment schedule,final payment, start date, completion data, liquidated damages, termination, and extra

work.

Include a fully-executed standard contract between your company and one of thesubcontractors you intend to use on your project.

Include fully executed Change Order which is also to be reflected in paymentapplications schedule of values. Change order form and backup to be submittedidentifying the scope and cost of at least three (3) materials, process/procedure, orequipment, etc that would enhance the sustainability or LEED credit for the project.


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3.10 Project Financials

A monthly cash flow projection should be provided for the project separate from thecorporate cash flow. This should including billing, retainage, amount received, amountpaid to subcontractors, and general and administrative expenses. Provide threeconsecutive pay applications (with lien waivers).

Use the project schedule to estimate to prepare three (3) monthly draw requests,beginning with the first month of the project and ending with the third month of theproject. Also, use the schedule and estimate to prepare a project cash flow projection.Assume on-time project and payments.

3.11 Site Utilization Plan: This section should include the following: Provide separatedrawings and corresponding narrative descriptions of the site utilization plan. Illustrate on yourdrawing and explain in your narrative, the anticipated use of the site at intervals in whichconditions change. Include, as a minimum, temporary roads, barricades, field office(s), parking,dumpster, entrance/exit, fencing, lay-down and staging areas, and a crane.

3.12 Regulatory Issues: A complete discussion of permits required for your project should be

provided. This should include building, demolition, and all forms of environmental permits. Ifspecial consideration for noise and dust control is required by the project or its location, thisshould be discussed along with planned mitigation. The licensing requirements, if any, forcontractor employees should be discussed. The following should be covered: regulatoryrequirements, permits and approvals; prepare and include in your presentation all necessarypermit applications and other legally required documentation and approvals required ofcontractors in the city or county in which it is located. (If the project is located outside theAtlanta Metro area, you may substitute forms from any urban building authority in the Atlantaarea except Cobb County or the City of Marietta).

3.13 Subcontractor Selection and Bids: include any subcontractor employed by the contractor

(MEP, etc.). You will develop and provide subcontractor selection criteria, a bid invitation andinstructions to bidders, a bid form, and all required bond forms.

3.14 Project Start-up and Schedule

The construction project team should be discussed in a narrative to include the roleplayed by the general contractor, owner, architect, design engineers, andsubcontractors, and any other specialty consultants. General construction issues shouldbe discussed (such as site utilization plan (staging), safety program, etc.). Discuss thecontractors role and duties in providing oversight of the construction process (such asadministering applications of payment to the owner/developer, providing for periodic

inspections of work in progress, managing budget issues, additional work items, etc.).Develop and provide a job startup checklist for the project that lists specific tasks and

to whom those tasks are assigned (for both field and office operations associated withthe project). Include all requirements imposed by local building authorities, allelements necessary for efficient conduct of the project and the requirements imposed bycontract.

Project Planning & ScheduleA good, solid plan of HOW the project is to be completed must be in place before the


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first shovel of dirt is turned. A successful project meets the owners needs andexpectations and is completed on time and within budget. Effective Planning andscheduling is the key to successful project delivery. Planning provides an overall strategyto accomplish goals and scheduling entails the individual activities/tasks necessary tocarry out the plan. Project Planning is the process of selecting construction approach,methods, and sequence of work. During the planning process several questions should beanalyzed. For example: How will this project interface with existing conditions? Whatproject delivery method will be used? What are the constraints of the work environment?

What is initial completion date? Etc (re: Planning the Project handout posted)

The schedule is the tool to implement the plan. CPM Network schedules are composedof activities and milestones that are tied together by activity relationships. Activityrelationships define the sequence in which the project is carried out and completed.Determining the activity logic should be developed considering physical, safety, quality,and resource relationships between activities. (re: Scheduling the Project handoutposted)

Provide a Primavera P6 CPM schedule showing sequence of construction. This diagramshall be displayed in such a way so that the overall sequence of construction is easily

determined. The schedule shall show activities in ES/EF order as a minimum. Activitiesshown on the schedule shall also include submittal and procurement activities for keymaterial items and owner-provided items. Training, inspections, and commissioningactivities must also be reflected on the schedule.

Provide schedule narrative that discusses your approach and strategy for completing theproject.

3.15 Risk Management

Analyze/Identify all project specific liability issues to be managed during all phases ofthe project. Provide a narrative that explains risk analysis including strategy, riskidentification, assessment and mitigation, contingency planning and to include a riskregister

Insurance Analysis: The insurance requirements for the project should be discussed.This should include (but not necessarily be limited to) liability, all risk or other forms ofproperty/building insurance, builders risk, unemployment insurance and auto propertyand casualty.

Amounts and types if insurance required should be stated Develop a job site specific program safety including inspections and rules. Include a

narrative that identifies safety precautions unique to this project. Boilerplate safety

programs will be considered unresponsive to this requirement.

3.16 Environmental Protection Plan: Prepare a narrative that explains the measures that will betaken to protect any significant and unique environmental features of the project site (creeks,streams, trees, wildlife, etc.), if present. Include a statement of your understanding of theenvironmental assessment requirements (typically noted on Civil drawings/specifications)

3.17 Conclusions and Recommendations

The student should provide a conclusion section at the end of the report that identifies all


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findings and conclusions relative to your project including profit and length of project schedule.

3.18 References

Provide all references in appropriate format (i.e., MLA or APA). Professional resources journal: Students are encouraged to seek out industry

professionals throughout the Capstone process to discuss their project and maintain a

journal of meetings and discussions documenting date, time, and items/issues, etcdiscussed. Provide a narrative summary of information learned and how these industryresources influenced the preparation of the students Capstone Project.

Include a constructive statement of evaluation and recommendations for the Capstonecourse.


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4.0Capstone Project Requirements Development Concentration

4.1 Oral Presentation: The student should have a presentation of approximately fifteenminutes prepared using PowerPoint and, optionally, presentation boards. The presentation shouldbe of near professional quality. Developers are required to convince investors, lenders and publicofficials of the viability of their projects. This requires excellent presentation skills. The studentsshould demonstrate that he or she has acquired these skills by beginning the Capstone Panel withthe presentation. Copies of presentation slides should be included at the back of the CapstoneBinder under Tab 14.

4.2 Administrative Submittals:Administrative Submittals: This section should include thefollowing: Plan Request (approval), Time Cards Daily Activity Log Minimum Requirements,Checklist with page numbers, and all other administrative requirements set out in the CapstoneProject Student Handbook and as designated by Capstone Professor.

4.3 Table of Contents: Identified by the tab section with page numbers of the itemsincluded in each section.

4.4 Executive Summary

The student should provide an executive summary at the beginning of the report that sets out, inparagraph form, the salient findings of the students research, analysis and compilation ofmaterial. The following should be included:

Describe purpose of report.Development students should assume that their report is inthe format of a formal bank loan package in which the student (who is intending to

develop the project) has prepared the report as background material to solicit a bank

loan or other type of financing in order to develop the project.

Describe the project in terms of use, location, size and any other features that the readerneeds as part of the executive summary to envision what is being proposed.

Provide overview of how project will be executed. Provide overview of market study that pertains to project along with conclusions and

recommendations on product type, mix and projected absorption rates. Provide overview of the conclusions reached based on the financial analysis that pertains

to project. This section should include a summary of the projected budget, as well as allother significant assumptions (absorption rates and pricing, interest rates and preferredreturns, etc.) related to the financial analysis.

Based on your market study and subsequent financial analysis, the student should statethe conclusion that they have reached as to the economic viability of the project and setout their recommendations in terms of timing, pricing, product mix, etc.

4.5 Project Description and Design Development

Provide the following information in both a graphical and narrative format where applicable:

Location: State the location of the site and provide a location map. Boundary survey: Provide a reduced copy (11x17 fold-out) of the boundary survey in the

document that graphically describes the shape and size of the parcel.

Legal description: In addition to the boundary survey described above, provide atraditional written ALTA legal description of the project site.


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Provide a schematic master plan containing a development program (mix, density/yield,phasing, etc.) in a tabular format somewhere on the plan.

Prepare a development program summary table that reflects the units to be built, by type,size, etc. and the timing of the unit construction, the acreage allocated to each usecategory and the corresponding yields/densities.

The narrative for this section should cover the following topics in addition to presenting theabove referenced exhibits:

Selection Criteria: Set out key criteria such as parcel size, yield of units per acre, location,zoning, traffic counts, visibility, etc. that were considered in the decision making process topurchase the site and provide a written narrative in a bullet format explaining each one.

Site Analysis:Provide a complete site analysis in a written bullet format that touches on thefollowing issues: parcel size and configuration, existing site improvements, land ownership,current and past site uses, hazardous waste issues, wetlands and other waterway issues, accessand traffic patterns at the site, zoning and other land use related requirements/issues, vegetation,topography and slope analysis, drainage and hydrology, flood plain, soils, adjacent property landuses, utility availability (water, sewer, gas, power), neighborhood transportation, siteopportunities map, site constraints map, conceptual land use plan and schematic land use plan.

This section should also include aerial and ground level photographs of the Project site, as wellas maps, etc. that provide graphical back up for all of the above topics. Provide a graphical plan

summarizing the opportunities and constraints of the site based on the above issues.

Final Site Plan Development:Provide a written narrative explaining how you took theinformation learned from the Site Analysis above and developed your final Site Plan for theProject. If appropriate, provide interim copies of any Conceptual and Schematic site plans thatwere developed prior to finalizing ones Site Plan. Since the typical Capstone Project is based ona development for which plans already exist, the student should prepare the above work as ifthese plans did not exist. The work, however, may be in support of this final set of plans fromwhich the student is preparing the cost estimate. This should be the students work and not

copies of work previously prepared by a land planner as the basis for the final set of plans.

4.6 Project Execution and Schedule

Project execution and schedule should be discussed in detail to include the following topics:Purchase strategy/technique: Describe the strategy used to acquire the site. Was an assemblagerequired? Was a purchase money mortgage utilized? Was the site acquired directly by your firmor through a nominee? What were the contingencies that had to be met before your firm wasrequired to close? How much time was available to you under the contract to complete duediligence? This is not a complete listing of items to be covered. You should provide allinformation that is relevant to your situation.

Construction Management:

Discuss the following topics related to hiring the general contractor for the project:

General contractor selection criteria (including safety program) Bid invitation and instructions to bidders Bid form and proposed fee Bonding requirements


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The construction project team should be discussed to include the role played by the Developer(owner/principal who may or may not also be serving as his own general contractor), as well assubcontractors employed and by whom, construction manager (if applicable), etc. Generalconstruction issues should be discussed (such as site utilization plan (staging), safety program,etc.). The Developers role and duties in providing oversight of the construction process (such asadministering applications of payment by general contractor, providing for periodic inspectionsof work in progress, managing budget issues, additional work items, etc.). should also be

addressed. If the selected property is a subdivision, builder selection criteria and restrictionsplaced on product and work activities should be addressed. It is to be remembered that thedeveloper is the principal/owner who is managing the GC (or construction manager as the casemay be) as well as consultants and builders selected to build in the subdivision (if that is thecase).

The duties of the architect, MEP engineer, structural engineer, civil engineer, surveyor, and otherdesign team consultants during construction should also be discussed. Describe the services to beprovided by each consultant as well as their method of compensation.

In addition to the above, the following exhibits should be prepared and included in this section:

1. A master project schedule on a monthly basisshould be provided that shows the timingand sequence for the following activities:

Land acquisition and associated due diligence including initial market studies Pre-development activities such as master plan design, development of marketing

concept and land acquisition funding

Regulatory approvals such as rezoning, subdivision, site plan, land disturbance andbuilding permit approvals

Preparation of project financing book (lender package) and obtaining final financing forproject

Installation of subdivision and site infrastructure (if applicable) for the construction ofbuildings and/or homes

Vertical construction activities for all buildings and site amenities If more than one building or phase is to be constructed (residential subdivision or multi-

building apartment complex for example), each building/phase should be reflectedseparately on the master schedule

Project closeout, marketing to final lease-up or sell out (as applicable)2. A master project organization chart that shows in a tree style format how all of the

following parties relate to each other:

Developer Design consultants (ie. architect, MEP engineer, civil engineer, surveyor) Other consultants (ie. soils engineer, environmental engineer, attorney) Construction team (GC, site contractor)


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Marketing team (leasing/sales team) Property Management team3. A master project team list that identifies the name of all firms employed by the Developer

as well as their respective role in the project.

4.7 Development and Construction Cost Estimates

In this section the student should address the following cost estimates associated with developingthe project:

1. A pre-development budget should be provided to reflect the all pre-developmentactivities such as land acquisition, rezoning, land planning, market analysis, architecturaland engineering design, legal fees, etc. that are required before construction cancommence.

2. A site work cost estimate should be provided that includes a cut and fill analysis preparedby the student using the grid method (the use of computer methods are to be discussedand approved by instructor). The cut to fill analysis should include the grid and table

showing each calculation and totals. In addition to the cut to fill analysis, the site workcost estimate should address the cost to install all underground utilities (domestic water,storm water, sanitary sewer, underground power and gas), roads, sidewalks, siteamenities, landscaping & irrigation, etc.

3. A vertical construction estimate should be provided that includes a budget cost(preliminary estimate) for the construction of all building(s) for the project based on asquare foot or assemblies of work. Note care must be taken in adding profit to theconstruction cost estimate. If the developer is acting as general contractor (GC) andtaking a profit or fee for that service or is using a general contractor, then profit should beadded. However, if the developer is acting as his own GC and using his own equity

capital then you may elect to omit the profit as a cost item. The profit will, therefore, bereflected as an increase in the return calculations for the project as a whole. The studentshould explain the selected option and the reason for it.

4. Finally, the development cost budget should also provide projected cost estimates for thefollowing items:

Design costs Other soft costs (marketing, financing costs, etc) Permitting fees Land costs (including acquisition and financing costs)

The Development Cost Budget should be presented in a tabular format that includes threecolumns. Column one should list the total absolute dollar cost for each item. Column twoshould include the Cost/SF or Unit (as applicable) and Column Three should indicate theCost of each item as a percentage of the overall total projected budget.

4.8 Market Study and Marketing PlanIn this section the student should address the following marketing related issues associatedwith developing the project:


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Metropolitan Area Economic Overview: Provide an overview of the metropolitan area

within which the project is to be developed. This should include an analysis of factorsand conclusions as to how each of these impacts the feasibility of the project, location ofthe site, population, employment, housing, income, transportation, directions of growthand land use patterns and factors relative to the specific market within which the projectwill compete (office, single family homes, etc.)

Subject Market Area Economic Overview: Provide an overview of the target marketarea within which the subject Project is to be developed.. This should include an analysisof the following factors and conclusions as to how each of these impact the feasibility ofthe project: location, population, employment, housing, income, transportation, directionsof growth, land use patterns and quality of services (schools, etc) as well as any otherfactors that will affect the projects feasibility, such as property taxes, crime, etc.

3. Market Analysis:Definition of market area applicable to the projects location and mapshowing boundaries should be provided. This Map shall also indicate the location of allcompeting projects. The market analysis should address competitive properties as well asfuture supply and demand trends for the market area. Each competitive project shall have

its own separate page within the report that provides at least one photo of the project as

well as description of its attributes and features in a bullet format. Each projects rentalrate/sales price as well as its vacancy rate/available inventory shall be indicated on its

comp sheet.The demand analysis should be documented with appropriatedemographics and psychographics and should conclude with an absorption schedule forthe project. A formal empirical demand analysis (in a spreadsheet format) should beprepared that quantifies the projected demand for the subject property. The tabulardemand analysis for the market area should be supported by a written narrative thatclearly explains all of the students assumptions used in preparing the analysis.Assumptions used for this analysis should be derived from the data presented by thestudent in the above Subject Market Area Economic Overview. Pricing of units shouldbe clearly demonstrated from the market data for the subject comparables. The market

analysis should develop a clear conclusion that outlines the product type(s), features tobe developed along with an applicable absorption schedule for each product type.

4. Sales, Leasing and/or Marketing Plan: Based on the above information presented initems 1-3 above, a detailed Marketing Plan outlining how the project is to be marketedshould be provided. The marketing plan should covers sales and leasing personnel, amarketing budget and a description of advertising and promotion materials to be used. Aschedule of projected leasing or sales activity should be provided that is derived from themarket analysis above. This information will be used as a primary input into the projectsfinancial pro-forma discussed in Tab 6 below. Commission rates for sales and leasesshould be clearly stated.

4.9 Project Financials and Cash Flow

In this section the student should address the following financing related issues associatedwith developing the project:

1. A detailed discussion outlining the source(s) and use(s) of capital required to develop theproject should be provided. This discussion should include a description of how all loansare to be structured (amounts, terms, costs, guarantees, etc.) and the sources of financingfor acquisition, development, construction and permanent loans. This section should


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clearly set out the amounts and sources of equity capital required to develop the project,as well as how they have been (or will be) acquired. If the developers operating capital isused, the amounts and timing of application should be consistent with the companyfinancials. If investors capital is used, set out the parameters of the investmentagreement(s) (timing for return of capital, returns and profit sharing). The sequencing(timing) and relationship of each loan/equity infusion to the other should be discussed.The amounts and terms of each loan should be stated and reflected in the cash flowprojection below. For simplicity, the student may elect to assume a package loan for the

acquisition, development and construction phases together. Permanent financing must behandled as a separate loan.

2. A detailed cash flow projection on a monthly basisshould be provided for the projectstarting from the date of placing the property under contract until the date that stabilizedincome/sell out is reached. This should include a calculation of internal rate of return,project value, equity value and project net present value. It should be based on theabsorption schedule derived from the students market analysis, as well as thedevelopment cost budget assumptions outlined in Tab 4 above.

3. A set of assumptions that allow the reader to clearly understand the basis for the cashflow projection should be provided in a bullet format that includes the following:

Sources, amounts and terms for all equity capital Sources, amounts and terms for all 3rdparty financing (loans) Product type, pricing and absorption schedule For all rental income producing projects, provide assumptions for operating

deficits starting construction completion and flowing through the date of finallease up to stabilized income.

Profit Analysis and investor return calculations4. For all rental income producing projects, a stabilized first year operating statement

shall also be provided that will serve to substantiate the final projected value of theproject.

4.10 Permitting andRisk Management

A complete discussion of all permits required should be provided. This should include thefollowing types of permits: building, demolition, clearing and grading, and all forms ofenvironmental permits. Based on the political jurisdiction that the project is located a bar chartschedule outlining all applicable steps should be provided as well as a discussion of the expectedtime requirements for each step and the process as a whole should be stated.

If wetlands, endangered species, hazardous waste or any other environmental issues exist at thesite, they should be discussed and a strategy for dealing with them should be set out. If specialconsideration for noise and dust control is required by the project or its location, this should alsobe discussed along with a planned mitigation strategy.

If applicable, the process for subdivision approval should be described for the politicaljurisdiction in question. A chart of the steps should be provided and the expected timerequirements for each step and the process as a whole should be stated. The same shall apply inthe event that the project requires rezoning before subdivision/site plan approval can be obtained.


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The student shall also address all pertinent insurance requirements associated with developingthe project from the Developers perspective. This should include (but not necessarily be limitedto) general liability, all risk or other forms of property/building insurance and builders risk. Thestudent should research the projected cost for each one of these types of insurance by calling alocal commercial insurance broker such as Marsh & McLennan for a quote based on theprojects projected cost and final completion value.

4.11 Legal Issues (Tab 8)

If the project units are to be sold, then the proposed sales contract should be provided anddiscussed, including all costs to be borne by seller and buyer. If an outside broker is to be used tomarket the project, this should be covered and a listing form should be provided and discussed.

If the property is to be leased, then the lease form should be provided and discussed and any costto be borne by the landlord should be stated. As with the above, if an outside broker is to be usedto market the project, this should be covered and a listing form should be provided anddiscussed.

Finally, if a third party property management firm is to be used to manage the project, thisshould be covered and a management agreement should be provided and discussed.

Additionally, the following areas should be addressed and examples provided as applicable:

Construction and Design consultant related contracts including a change order proposal(develop the change order proposal in the form of a letter to your architect identifying theat least three (3) materials, process/procedure, or equipment, etc that would enhance thesustainability or LEED credit for the project).

Declaration of restrictions, easements, liens and covenants Property Association Agreements (e.g. homeowners, merchants, etc.) Construction and Architectural design guidelines for all residential subdivision projects


The student should provide a conclusion section at the end of the report that sets out findings andconclusions relative to the areas below. In short, a clear statement should be provided as towhether the project should be undertaken and why or why not based on the followingconsiderations:

Viability of proposed design Profit and rate(s) of return Proposed product characteristics, mix and quantity Projected market absorption Property management issues Miscellaneous legal/regulatory issues

Finally, student shall also provide a statement of evaluation and recommendations for thecapstone course that is a constructive critique.


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4.13 Company Organization and Financials

In this section the student should address the following issues related to the organizational andfinancial structure of their firm:

Provide a brief narrative background on the organization along with a description of theprojects completed (or currently underway) by the company. This narrative should alsoset out any particular strengths that the organization has developed.

Describe the legal form of the organization (sole proprietor, general or limitedpartnership, REIT, LLC, C- Corp. etc.). State why this form of organization was chosenand describe the benefits and limitations of the chosen form for your purpose.

Provide a company organizational chart that reflects all key figures/departments in thecompany.

Provide a listing of the major duties and responsibilities of each key company employee. Provide professional resumes of key personnel in a brief (one half page each) format that

cover the work and education qualifications of each key individual.

Provide company financial statement (balance sheet and income statement) that areconsistent with industry standards and that cover the previous 2 years of operation beforethe project is developed, as well as a projected balance sheet and income statement forthe period covering development and completion of the project. Note that the projectedbalance sheet and income statements should reflect the income, expenses, increase inasset value and liabilities associated with developing the project.

For those firms engaged in income producing property development, students shouldassume their development company is the general partner for at least 4 other completed

fully leased projects and owns a 10% interest in each one of these projects and that it will

have a 10% ownership position in the subject property to be developed as well as

receiving a 3% development fee for developing the new project. All income producing

projects are assumed to be managed by a third party property management firm that will

receive a 3% fee based on gross revenues.

For those firms engaged in lot sale property development, students should assume theirdevelopment company is the general partner for at least 4 other completed projects that

are 100% complete from a construction standpoint but are still in the process of final lot

sell out. For ease of computation, students may assume that all 4 completed projects are

debt free resulting in a 10% distribution to the general partner based on their

particular lot sale revenue. For the new project to be developed, students should assume

that their development company will own a 10% ownership position in the subject

property to be developed, as well as receiving a 3% development fee for developing the

new project.

Principals personal financial statement is to be consistent with industry standards. ThePrincipals financial statement (balance sheet only) should reflect the fact that they holdat least a 10% limited partnership (or other similar vehicle) ownership position in eachone of the above referenced projects discussed in the preceding paragraph. Note that thisis in addition to the 10% owned by the Principals development company.

4.14 Property Management Plan (as applicable)

Property Management plan: For all income producing projects, the manner in which theproperty is to be managed should be discussed. As noted above, the student should


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assume that all income producing projects will be managed by a third party fee manager.This section should address property management fees (3% of gross revenues),management agreement contract, annual budget preparation, maintenance and capitalimprovements, management reports, insurance, legal, life-safety and environmentalissues. Note that someone at the Developers central office should be tasked withoverseeing all third party property management firms/vendors.

4.15 Site Engineering and Construction Plans

In this section the student should provide reduced copies (11x17) of the following plansas well as appropriate narrative (when applicable) related to each plan and their project:

Site Plan: Discuss all factors that influenced final layout. Grading Plan: Describe the important factors in the grading plan and how the plan is to

be carried out. ( rock and soil problems affecting the plan, high water table anddewatering requirements, grading order or phases, steps, environmental issues addressed,etc).

Erosion and Sediment Control Plan: Set out the salient features of the plan to includemethods used, phasing relative to grading and construction, special problems encountered

and how addressed, etc. Storm Water Management Plan: Describe the storm water management infrastructure to

be installed and discuss the approach taken; underground-hard pipe solution, surfaceswales, retention and detention ponds, combination of the above, etc. If part of theinfrastructure was utilized as desirable design features (open space, ponds, etc) describethe approach used. Discuss phasing issues as appropriate.

Landscaping and Tree Preservation Plan: Discuss species used, placement, measurestaken to preserve trees, etc.

Water and Sanitary Sewer Plans: Discuss materials used and construction issues to beencountered.

Street Design: Describe the type of street design, materials selected and why chosen. Building Plans: Describe the buildings to be constructed in terms of architecture,

materials, sizes, unusual structural or mechanical features, etc.

4.16 References References should be given in appropriate format (i.e., MLA or APA). Professional resources journal: Students are encouraged to seek out industry

professionals throughout the capstone process to discuss their project and maintain ajournal of meetings and discussions documenting date, time, and items/issues, etcdiscussed. Provide a narrative summary of information learned and how these industryresources influenced the preparation of the students Capstone Project.

Include a constructive statement of evaluation and recommendations for the capstonecourse.


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5.0 Capstone Project Requirements Specialty Concentration

5.1 Oral Presentation: The student should have a presentation of approximately fifteen minutesprepared using PowerPoint and, optionally, presentation boards. The presentation will be ofprofessional quality. Contractors/owners are required to convince clients, lenders, and publicofficials of the viability of their projects. This requires excellent presentation skills. The studentsshould demonstrate that he or she has acquired these skills by beginning the Capstone Defensewith the presentation. Copies of presentation slides should be included in the Capstone Binder.

5.2 Administrative Submittals: This section should include the following: Plan Request(approval), Time Cards Daily Activity Log Minimum Requirements, Checklist with pagenumbers, and all other administrative requirements set out in the Capstone Project StudentHandbook and as designated by Capstone Professor.

5.3 Table of Contents: Identified by the tab section with page numbers of the items includedin each section.

5.4 Executive Summary: be written to articulate what you want the reader to conclude after

reading the rest of your submittal. An Executive Summary is the most important part of thesubmittal; should focus on the conclusion you want the evaluator to reach and not onsummarizing everything in your proposal.The student should provide a one or two page (maximum) executive summary at the beginningof the report that provides the significant findings of the students research, analysis andcompilation of material. The following should be included:

Describe the project in terms of use, location, size and any other features that the readerneeds as part of the executive summary to envision the project.

Scope, objectives, and limiting conditions of report: Describe what is covered by thereport, the purpose of the report and list the objectives to be achieved in the study.

Summary of significant points; list all of the major findings. Summarize the conclusions you have reached as to the pricing, scheduling, and

profitability of this project from a contractors or construction managers perspective


The student should focus on the organization of the firm, which may or may not includethe following divisions: preconstruction, interiors, and project management. If thesedivisions are not part of the company (but are needed for the Project), then a narrative

explanation should be provided as to how the services are to be provided to the Project.

This section should also include a discussion of non-employee business professionalsincluding their roles, duties and responsibilities. Among these are attorney, bankers, etc.all professionals not in your employ that are required to support your businessoperations.

The ownership vehicle for the company should described (L.L.C., S Corp., Inc.,partnership, etc.) and the management control structure and decision making authorityfor the project should be detailed.


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The balance sheets and income statements of the hypothetical company provided shall beanalyzed to show a complete picture of the financial health of the company. Annualcomparisons with industry standards shall be part of this analysis. Further, the estimateand proposal for the Capstone Project shall reflect the financial and cost structure of thehypothetical company. As part of the analysis of the hypothetical company, a narrativeshall be provided which describes the present state of the company, the trends underwayat the end of the last given year, and a financial and strategic plan of action for the nextthree years for the company.

Company Narrative & Qualifications: Company Size (volume and number of projectsper year) Identify key criteria such as project size, field overhead, location, otheroverhead, profit margin, etc. Any factor that will be considered in the decision to pursueprojects should be listed and explained as part of the qualifications statement and cannotuse form statements (such as A305 or consensus document) it must be an originalsubmittal.

The section should include the following:

Organizational chart and legal form: Provide an organizational chart that reflects all keyfigures/departments in the company and state the legal form of the organization (soleproprietor, general or limited partnership, REIT, LLC, C- Corp. etc.). State why this formof organization was chosen and describe the benefits and limitations of the chosen formfor your purpose.

Organizational chart that reflects all key figures/departments in the company. State whythis form of organization was chosen and describe the benefits and limitations of thechosen form.

Listing of the major duties and responsibilities of each key employee. Professional Resumes of key personnel and should be brief (one half page each) but

should cover the work and education qualifications of each key individual.

Describe the projects completed (or currently underway) by the company and set out anystrong capabilities that the organization has developed. If there is a strong specialty ofthe organization, bring that out.

Provide a corporate schedule in bar chart format for the next three years showing whenprojects will start and when they will be completed.

List of consultants for the company and describe the services to be provided. Company financial statement is to be consistent with industry standards. Principals personal financial statement is to be consistent with industry standards. Company balance sheet is to be consistent with industry standards. Company 3-year

income and expense statement or budget projection statement is to be consistent withindustry standards.

Scope of Projects: Will your company be providing all MEP subcontracted work?Explain which MEP functions will be provided and why they were selected by yourcompany.

Project Acquisition: Describe the strategy used to acquire the projects. What percentagewas won through a hard bidding process? What percentage was negotiated? Whatpercentage was design/build? Were any other methods employed? Which method does


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your company prefer and why?

Source(s) of capital: Describe how loans were structured (amounts, terms, costs,guarantees, etc.) and the sources of financing. Provide a detailed analysis of theminimum project loan desired for your capstone project.

Bonding: What is the bonding capacity of your company and how was it determined?Was a bond required for the project?

5.7 Specialty and Construction Cost Estimates

The specialty cost estimate should include all specialty areas (HVAC, plumbing, and electricalincluding control systems). Show calculations and totals (include scratch papers used for thetakeoff). The cost estimate for the specialty should reflect labor, materials, equipment, overhead,etc. While the student may submit bid sheets as backup for the detailed cost estimate, costsshould not be pulled from bid sheets as the basis of the estimate.

The remainder of the building cost estimate may be a square foot cost estimate. The appropriateunits of measure should be shown for each item (square foot, linear foot, etc.) along with the

quantity and unit costs of each. These are totaled and other costs are added (permits, fees,indirect costs, overhead, profit, etc.) to arrive at the cost estimate of the project. Note: Care mustbe taken in adding profit to the cost estimate. If the specialty contractor is acting as the primecontractor (PC) and taking a profit or fee for that service it should be noted and explained indetail.

Include: Plan and Specification take-off for building specialty systems including material quantity

and prices and labor hours and price.

Square-foot estimate for the remainder of the project. General and Administrative expense allocation. Estimate summary sheet showing markup

etc.

5.8 Analysis of the Building Specialty Systems

Provide a detailed list of all codes that apply to the specialty systems for this project. Conservation and Energy Efficiency: Is the building in your project LEED certified? If

not what changes in the MEP systems would you recommend that might contribute to aminimum LEED certification?

Plumbing: provide an overview of the installation and operation of the buildingsplumbing systems. This should include an estimate of water usage and the size of therequired sewage system. What sizes and types of materials are used in the buildingpiping systems and why? Are any unusual plumbing materials or equipment used onthis project? Explain why they were used. Explain how the construction of this systemis integrated into the overall construction project.

HVAC: Provide an overview of the installation and operation of the buildings airconditioning systems (heating, cooling, dehumidification, humidification, andventilation). This should include an estimate of cooling capacity and demand. Whatsizes and types of materials are used in the building air conditioning systems and why?


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Are any unusual/interesting air conditioning materials or equipment used onthis project?Explain why they were used. Explain how the construction of this system is integratedinto the overall construction project.

Electrical Provide an overview of the installation and operation of the buildingselectrical systems (power, lighting, and energy management). This should include anestimate of electrical usage and demand. Explain the control strategy for the airconditioning and lighting systems. What sizes and types of materials are used in thebuilding electrical systems and why? Are any unusual/interesting electrical materials orequipment used on this project? Explain why they were used. Explain how theconstruction of these systems is integrated into the overall construction project.

5.9 Project Contracts

Provide an executed contract that is used for agreements between the general contractor and thespecialty contractor. Discuss the sections that pertain to contract dollar amount, paymentschedule, final payment, start date, completion data, liquidated damages and extra work.

Provide an executed contract that is used for agreements between the specialty contractor and asubcontractor. Discuss the sections that pertain to contract dollar amount, payment schedule,

final payment, start date, completion data, liquidated damages and extra work.

Include fully executed Change Order which is also to be reflected in payment applicationsschedule of values. Change order form and backup to be submitted identifying the scope andcost of at least three (3) materials, process/procedure, or equipment, etc that would enhance thesustainability or LEED credit for the project

5.10 Project Financials

A monthly cash flow projection should be provided for the project separate from thecorporate cash flow. This should including billing, retainage, amount received, amount

paid to subcontractors, and general and administrative expenses. Provide threeconsecutive pay applications.

Use the project schedule to estimate to prepare three (3) monthly draw requests,beginning with the first month of the project and ending with the third month of theproject. Also, use the schedule and estimate to prepare a project cash flow projection.Assume on-time project and payments.

5.11 Specialty Engineering and Construction Plans

Site plans: Provide a narrative description of the site plan and how the MEP services areprovided to the site and building.

Mechanical plans: Highlight the location of the major mechanical systems (air conditioning,ventilation, waste interceptors, hot water heaters, etc.)

Electrical plans: Highlight the location of the major electrical systems (transformers, mainelectrical distribution panel and sub-panels, energy management).


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5.12 Regulatory Issues

A complete discussion of permits required for your project should be provided. This shouldinclude building, demolition, and all forms of environmental permits. If special consideration fornoise and dust control is required by the project or its location, this should be discussed alongwith planned mitigation. The licensing requirements, if any, for contractor employees should bediscussed. The following should be covered: regulatory requirements, permits and approvals;prepare and include in your presentation all necessary permit applications and other legally

required documentation and approvals required of contractors in the city or county in which it islocated. (If the project is located outside the Atlanta Metro area, you may substitute forms fromany urban building authority in the Atlanta area except Cobb County or the City of Marietta).

5.13 Subcontractor Selection and Bids: includes any subcontractor employed by the MEPcontractor (controls, etc.). You will develop and provide subcontractor selection criteria, a bidinvitation and instructions to bidders, a bid form, and all required bond forms.

5.14 Construction and Project Management

The construction project team should be discussed to include the role played by the Specialty

contractor as well as the general contractor, owner, architect, design engineers, and othersubcontractors. General construction issues should be discussed (such as site utilization plan(staging), safety program, etc.). Discuss the Specialty contractors role and duties in providingoversight of the construction process (such as administering applications of payment to thegeneral contractor, providing for periodic inspections of work in progress, managing budgetissues, additional work items, etc.).

5.15 Project Planning & Schedule

A good, solid plan of HOW the project is to be completed must be in place before the

first shovel of dirt is turned. A successful project meets the owners needs andexpectations and is completed on time and within budget. Effective Planning andscheduling is the key to successful project delivery. Planning provides an overall strategyto accomplish goals and scheduling entails the individual activities/tasks necessary tocarry out the plan. Project Planning is the process of selecting construction approach,methods, and sequence of work. During the planning process several questions should beanalyzed. For example: How will this project interface with existing conditions? Whatproject delivery method will be used? What are the constraints of the work environment?What is initial completion date? Etc (re: Planning the Project handout posted)

The schedule is the tool to implement the plan. CPM Network schedules are composed

of activities and milestones that are tied together by activity relationships. Activityrelationships define the sequence in which the project is carried out and completed.Determining the activity logic should be developed considering physical, safety, quality,and resource relationships between activities. (re: Scheduling the Project handoutposted)

Provide a Primavera P6 CPM schedule showing sequence of construction. This diagramshall be displayed in such a way so that the overall sequence of construction is easilydetermined. The schedule shall show activities in ES/EF order as a minimum. Activitiesshown on the schedule shall also include submittal and procurement activities for key


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material items and owner-provided items. Training, inspections, and commissioningactivities must also be reflected on the schedule.

A schedule for the entire project (summary overall schedule) to include A detailed schedule for the MEP portion of the project An explanation of how the MEP portions of the project will be integrated into the overall

project schedule.

An explanation of how the MEP work might influence the critical path of the entireproject schedule.

5.16 Risk Management

Analyze/Identify all project specific liability issues to be managed during all phases ofthe project. Provide a narrative that explains risk analysis including strategy, riskidentification, assessment and mitigation, contingency planning and to include a riskregister

Insurance Analysis: The insurance requirements for the project should be discussed.This should include (but not necessarily be limited to) liability, all risk or other forms ofproperty/building insurance, builders risk, unemployment insurance and auto propertyand casualty.

Amounts and types if insurance required should be stated Develop a job site specific program safety including inspections and rules. Include a

narrative that identifies safety precautions unique to this project. Boilerplate safetyprograms will be considered unresponsive to this requirement.


The student should provide a conclusion section at the end of the report that identifies allfindings and conclusions relative to your project including profit and length of project schedule.

5.18 References

Provide all references in appropriate format (i.e., MLA or APA). Professional resources journal: Students are encouraged to seek out industry

professionals throughout the capstone process to discuss their project and maintain a

journal of meetings and discussions documenting date, time, and items/issues, etcdiscussed. Provide a narrative summary of information learned and how these industryresources influenced the preparation of the students Capstone Project.

Include a constructive statement of evaluation and recommendations for the capstonecourse.


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6.0 Capstone Project Requirements Facility Management

6.1 Objective: Students will analyze a facility management department of a large corporation; the projectshould be set in the prospective of the Vice-President of Facility Management who is trying to justify anexpense or approach to the Board. It needs to be realistic enough to demonstrate the project withoutbeing so realistic as to match the current economy to the point that the project cannot be accomplished.This project needs to demonstrate the broad range of skills the student has acquired throughout hiseducation.

6.2 Oral Presentation: The student should have a presentation of approximately ten minutes preparedusing PowerPoint. The presentation will be of professional quality. VPs and Directors of facilitymanagement divisions are required to convince corporate officers, the board of directors, lenders, bondingagents and public officials of the viability of their projects and ideas. This requires excellent presentationskills. The students should demonstrate that he/she has acquired these skills by beginning the CapstoneDefense with a presentation. Copies of presentation slides should be included in the Capstone Binder.

6.3 Administrative Submittals: This section should include the following: Project Request (approval),Time Cards Daily Activity Log Minimum Requirements, Checklist with page numbers, and all otheradministrative requirements set out in the Capstone Project Student Handbook and as designated byCapstone Professor.

6.4 Table of Contents: Identified by the "tab" section with page numbers of the items included in each

section.

6.5 Executive Summary: An Executive Summary is the most important part of the submittal and shouldfocus on the conclusion you want the evaluator to reach and not on summarizing everything in yourproposal.

The student should provide a one or two page (maximum) executive summary at the beginning of thecapstone report that provides the significant findings of the student's research analysis and compilationof material. The following should be included:

Describe the division in terms of use, location, size and any other features that the reader needs toenvision the capstone project.

Scope, objectives, and limiting conditions of report: Describe what is covered by the report , thepurpose of the report and list the objectives to be achieved in the study.

Summary of significant points: list all of the major findings. Summarize the conclusions you have reached as to the pricing, scheduling, and profitability of

this project from a Vice-President of Facility Managements perspective as if trying to justify anexpense or approach to the Board


The student should focus on the organization of the facility management division anddepartments; include the following areas (minimum): development, construction, assetmanagement, maintenance, and energy management.

This section should include a discussion of non-professional and professional employee businessassociates including their roles, duties and responsibilities. Among these are attorneys,

bankers, developers, contractors, maintenance providers, energy consultants.

The ownership vehicle for the company should described (S Corp., Inc., or LLC, partnership,etc.) and the management control structure and decision making authority for the facilitymanagement department should be detailed.

The budget and cash flow statements for the virtual division/departments provided shall beanalyzed to show a complete picture of the financial implication of the division to the company.Annual comparisons with industry standards shall be part of this analysis. Further, the budgetsand proposal for the Capstone Project shall reflect the financial and cost structure of the virtualdivision. As part of the analysis of the virtual division, a narrative shall be provided which


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describes the present state of the company and the division, the trends underway at the end of thelast given year, and a financial and strategic plan of action for the next three years for thecompany and facility management division.

Division Narrative & Qualifications: Development and Construction Department - budget - size- (volume and number of projects per year). Identify key criteria such as if the project is ownedor leased, project size, field overhead, location, other overhead, cash flow, etc. Any factor thatwill be considered in the decision to pursue projects should be listed and explained.

The section should include the following:

Organizational chart and legal form: Provide an organizational chart that reflects all keyfigures/divisions within the company and state the legal form of the organization (sole proprietor,general or limited partnership, REIT, LLC, C- Corp. etc.). State why this form of organizationwas chosen and describe the benefits and limitations of the chosen form for your purpose.

Organizational chart that reflects all key figures/departments in the division. State why this formof reporting structure was chosen and describe the benefits and limitations.

Listing of the major duties and responsibilities of each department and department head. Professional Resumes of key personnel and should be brief (one half page each) but should

cover the work experience, education qualifications and what the employee is doing for thevirtual division.

Describe the projects completed (or currently underway) by the divisions and set out any strongcapabilities that the organization has developed. If there is a strong specialty of theorganization, bring that out.

Provide a division schedule in bar chart format for the next three years showing when projectswill start and when they will be completed.

Construction/Development Projects; Describe the strategy used to award the projects. Whatpercentage was awarded through a hard bidding process? What percentage was negotiated?What percentage was design/build? Were any other methods employed?

Describe the maintenance departments function. Describe the energy management departments function: 3-year budget and cash f lowstatements to be consistent with industry standards. Scope of Division: Will your company be providing all facility management functions? Explain

which functions will he provided and why they were selected by your company?

Source(s) of capital: Describe how leases were structured (amounts, terms, costs, guarantees,etc.) and the sources of financing. Provide a detailed analysis of the minimum division budgetdesired for your capstone project.

Bonding: Does your division require construction projects to be bonded? Why or why not.6.7 Facility Management Division and Departments Budget

The division budget should include all facility management areas (development, construction, assetmanagement, maintenance, & energy). Show calculations and totals (include scratch papers used forthe estimating process). The division budget should include as a minimum (division employees costs,subcontracted work costs, maintenance work costs and energy costs). While the student may submitactual bills as backup for the detailed budget estimate, costs should not be pulled from the bills as thebasis of the budget.

The construction cost estimates may be conceptual (based on square foot costs). The appropriate unitsof measure should be shown for each item (square foot, linear foot, etc.) These are totaled and othercosts are added (permits, fees, indirect costs, overhead, profit, etc.) to arrive at the construction andremodel budgets of the division.


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6.8 Analysis of the Division and Departments

Provide a detailed analysis of how the division reports to the corporation. Provide a detailed listing of the services your division provides to the corporation. Explain the division organizational chart in detail. Write a job description for the VP of facility management

Development and Construction Department

include an organizational chart for this department explain the chart in detail write a job description for each employee list all services provided

o in-houseo using consultants

Asset Management Department

explain how this function is satisfied does it have any dedicated employees list services provided

o in-houseo using subcontractors

Maintenance Department

include an organizational chart for this department explain the chart in detail size of department

o include non-professional and professional employees write a job description for each employee type and number of subcontractor companies

o Determine budgeto Insurance requirementso Hold-harmless agreement

list all services providedo in-houseo subcontractors

Type and number of subcontractor companieso Determine budgeto Insurance requirementso Hold-harmless agreement

BudgetEnergy Department

Include an organizational chart for this department explain the chart in detail size of department

o Include non-professional and professional employees write a job description for each employee list all services provided

o in-houseo consultantso subcontracted

Are the buildings, that your company is designing and having built, high performing buildingsand/or (LEED certified)? If not, why not and what are you doing to change this?

How are you monitoring energy


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o useo demando costs

6.9 Division Contracts

Provide an executed contract that is used for agreements between your company and a general contractor.Discuss the sections that pertain to contract dollar amount, payment

Documents

Capstone Handbook 082011