The Office of the Provost plays a primary role in capital planning for General Fund buildings on the Ann Arbor campus.

Decisions on renovating, replacing and adding buildings are complex and on-going and involve balancing both unit and university priorities with available resources. To promote strategic building use and growth on the Ann Arbor campus, the Office of the Provost ensures that:

  • Existing General Fund facilities are used efficiently.
  • The need for new or expanded facilities aligns with the university’s academic and research mission and overall institutional priorities.

Major Capital Project Requests & Annual Review Process

Capital projects estimated at $5M or over are considered major projects and need to follow the instructions below to formally submit requests for the provost’s consideration and prioritization via the annual fall submission process. This process enables units and the provost to better articulate and understand needs, vision, and mission alignment to university leadership; this is even more so important with Vision 2034 and Campus Plan 2050.

  • Instructions for Major Capital Project Requests – Updated May 2024
    Provost-reporting units should follow these instructions for submitting a major capital project request to the provost. These instructions replace the “Statement of Need” described in the Capital Project Guidelines.
  • Capital Project Guidelines
    Note: this document has not been updated in response to Vision 2034, Campus Plan 2050, and other in-progress changes to capital planning decision-making bodies on campus.
  • Annual Deadline: September 15
  • Submit to: [email protected]

Capital Projects Thresholds & New Study Intake Form

In their May 2024 meeting, the U-M Board of Regents approved a change in the threshold for obtaining board approval for new construction and renovation projects from $3 million to $5 million. Projects from $500,000 up to $5 million will be reported monthly to the board. Provost’s Office processes are being amended slightly to align with these new thresholds and to ensure leadership awareness and support of projects in the under $5 million range.

To support the above change, a new Study/Project Intake Form is being implemented to facilitate information sharing between units, AEC, the Provost’s Office, and U-M leadership on projects that do not necessarily follow the major capital project request process. Please read the sections below to learn how to use this new tool.

Download: Study/Project Intake Form (instructions and form)

Guidance for schools, colleges, & research units (activities-based units)

Note: As campus adjusts to the May 2024 regental capital project threshold change, the following will be revisited in the coming year to adjust approval and signature responsibilities if needed. 

Capital projects at $3M or less (total project cost)
Activities-based units may work directly with AEC to initiate. Dean/director office level approval is needed. Units may use the Study/Project Intake Form linked above to initiate this process, but it is not required.

Capital projects estimated between $3M to $5M (total project cost)
Activities-based units may work directly with AEC to initiate but should use the Study/Project Intake Form linked above to inform the Provost’s Office along with AEC. Provost’s Office will continue to formally approve all capital projects over $3M as part of the regular AEC approval processes.

Capital projects estimated at $5M or over (total project cost)
Activities-based units must first submit a Major Capital Project Request to the Provost’s Office following the annual process for provost review and prioritization. This includes projects that take shape as a result of an exploratory study. In some cases, projects up to $10M (total project cost) that will be 100% self-funded with unit reserves or signed gift agreements can use the Study/Project Intake Form (and not follow the annual fall submission and review process). Read FAQs below and contact [email protected] for additional guidance.

Exploratory studies at any estimated cost
Activities-based units planning to study a potential project should complete the Study/Project Intake Form. Note: Units wishing to pursue a capital project that may result from such a study will still need to submit a Major Capital Project Request via the annual process. 

Guidance for other provost reporting units (non-activities based units)

Note: As campus adjusts to the May 2024 regental capital project threshold change, the following will be revisited in the coming year to adjust approval and signature responsibilities if needed. 

Capital projects at $3M or less (total project cost)
Non-activities based units may work directly with AEC to initiate. Unit director level approval is needed. Units should complete the Study/Project Intake Form linked above. 

Capital projects estimated between $3M to $5M (total project cost)
Non-activities based units should complete the Study/Project Intake Form linked above to inform the Provost’s Office and AEC for the need for the study or project. Provost’s Office review and approval will be needed before a study or project of this size can move forward. Provost’s Office will continue to formally approve of all capital projects over $3M as part of the regular AEC approval processes, including project initiation forms and change orders.

Capital projects estimated at over $5M (total project cost)
Non-activities based units must first submit a Major Capital Project Request to the Office of the Provost following the annual process for provost review and prioritization. This includes projects that take shape as a result of an exploratory study. In some cases, projects up to $10M (total project cost) that will be 100% self-funded with unit reserves or signed gift agreements can use the Study/Project Intake Form (and not follow the annual fall submission and review process). Read FAQs below and contact [email protected] for additional guidance.

Exploratory studies at any estimated cost
Non-activities based units planning to study a potential project should complete the Study/Project Intake Form. This requires Provost’s Office approval to formally move forward as a study. Note: Units wishing to pursue a capital project that may result from such a study will still need to submit a Major Capital Project Request via the annual process. 

Provost’s Funding Sources

Capital Renewal Fund
The capital renewal fund is a funding mechanism built into the budget and space charging model, and it generates funds for the Provost to direct to major capital projects. It remains an active part of the Provost’s capital funding approach. Additional background on the capital renewal fund program is on the Office of Budget and Planning website intranet (unit resources page). Units wishing to request such funds for potential projects should continue to follow the Major Capital Projects Request process outlined above.

Provost Capital Fund (New Financing and Loan Program)
During the State of the University convening on November 27, 2023, Provost McCauley announced the creation of a $500M capital fund. The Provost Capital Fund (PCF) consists of long-term debt-financing with discounted interest rates that will be available to qualifying units for capital projects as an additional source of financing.

The PCF will be allocated for the renovation and construction of instructional, research, and academic support facilities, particularly those projects that may also include some or all of the following characteristics:

  • Projects previously submitted to the major capital project request process that received a “priority” score.
  • Facilities with significant deferred maintenance backlogs.
  • Projects with incomplete funding plans that currently have material fundraised amounts.
  • Projects that include a significant sustainability component that can support the university’s carbon neutrality commitment.

The PCF will not be for ancillary needs, swing space, or other temporary needs. Units wishing to request such funds for potential projects should continue to follow the Major Capital Projects Request process outlined above. For more information on the PCF, please refer to the Provost Capital Fund FAQ document.

Provost’s Capital Projects Review Committee

The Provost’s Capital Projects Review Committee collectively reviews and prioritizes all capital project requests in the fall and then makes recommendations to the Provost. The committee is comprised of the following members:

  • DuBois Bowman, Dean, School of Public Health
  • Thomas A. Finholt, Vice Provost for Academic & Budgetary Affairs
  • Fadi Musleh, Assistant Vice Provost for Academic & Budgetary Affairs
  • Lori Ploutz-Snyder, Dean, School of Kinesiology

Frequently Asked Questions (FAQs)

Click to Read FAQs

Why do we have to follow this process?

The University makes a long-term financial commitment every time it invests in a new building, building addition, or renovation, not only to build the facility, but also to maintain and operate the facility for the entire life of the building. The capital projects process ensures that the University’s long-term investments are always directed to its highest priority needs and U-M’s long-term strategic goals.

Additionally, the capital projects process provides a consistent process for submitting, planning, and approving capital projects for General fund academic and administrative units, and ensures that all projects are approved based on the same selection criteria.

What is required for the September 15 deadline?

All provost-reporting units seeking a major capital project are required to formally submit their request to the Provost’s Office by September 15th.  This enables the Provost’s Office and the Provost’s Capital Projects Review Committee to review and compare unit needs against institutional priorities and resources collectively versus on a case-by-case basis. After September 15th, the committee will spend the next few months reviewing, assessing, and comparing all unit needs. The Provost’s Office will provide the status of the review early the following calendar year in the December or January timeframe.

Can my unit complete any project under $3 million at our own discretion?

While most projects under $3 million may be completed at the unit’s discretion, there are a few exceptions:

    • Renovations to space that is available for campus-wide use. (e.g., Rackham auditorium)
    • Conversion of space to a new function. (e.g., classrooms to office space)
    • Building expansions.
    • Changes that affect exterior elements of the building.
    • Changes in land use.
    • Proposed financing with debt.
    • Potential projects for non-activities based units may require more financial review from the Provost’s Office before being initiated. Please see detailed guidance above for non-activities based units.

My unit has the funding available to cover the entire cost of the capital project. Do we need to follow the Capital Project Guidelines and fall submission process?

For projects estimated at under $10 million and 100% unit-funded, either through unit reserves or signed gift agreements, the unit can often follow an abbreviated process without going through the formal annual submission and review process. We do ask, however, that units discuss the project with the Provost’s Office before the project is initiated to ensure that the project aligns with institutional needs and priorities and complete the Provost’s Study/Project Intake Form  Exceptions include:

    • Renovations to space that is available for campus-wide use. (e.g., Rackham auditorium)
    • Conversion of space to a new function. (e.g., classrooms to office space)
    • Building expansions.
    • Changes that affect exterior elements of the building.
    • Changes in land use.
    • Proposed financing with debt.

In order to fundraise for a project, we need to show conceptual designs to prospective donors. When can my unit do this?

A unit may begin showing them to donors only after the designs have been approved by the Board of Regents and only with permission from the Chief Financial Office (CFO) or Associate Vice President for Facilities and Operations. Designs must not be shared until this permission is granted.

May I turn to external architectural firms for initial estimates or schematic designs?

All initial designs and estimates must be coordinated through Architecture, Engineering and Construction (AEC).

Who pays for the initial estimates by Architecture, Engineering and Construction (AEC)?

The unit is responsible for all costs associated with requesting and executing a capital project, including any fees assessed by AEC for preliminary estimates.

My unit does not have the funding to pay for a capital project in its entirety. What options are there for my unit?

Before any discussions of a capital project occur with the Provost’s Office, the unit should ensure that, in general, it has the financial capacity to support a capital project (including operating costs), whether that means paying for a capital project in its entirety or using a combination of funding sources to pay for the project. In most cases, capital projects are funded using the unit’s fund balances that are available for use (i.e., unrestricted funds), gifts, or grants. Additionally, the Office of the Treasurer provides consulting on financing principles and options in constructing a viable funding plan. See the Provost Capital Fund FAQ document for more information.

What happens when a proposal is not approved by the Provost or Capital Projects Committee?

A capital project proposal may be deemed lower priority because of an insufficient needs analysis, lack of available funding, or proposed project that is inconsistent with overall University priorities. Resubmission is possible in subsequent years.

Contact

Email [email protected] for questions on any of the above.