Understanding Capital Outlay Projects and Building Condition Surveys

To be eligible to receive expedited building aid, a School District must be aware of the deadlines and requirements associated with a Capital Outlay Project.To meet its obligations to review the condition of its facilities, a School District must be aware of the deadlines and requirements associated with its Building Condition Surveys.

Capital Outlay Projects

Capital Outlay Projects (“COP”) are small in scope, but they offer the potential for expedited building aid for the project in the following year. The project could be door replacements, window replacements, or flooring renovations, among other capital improvements.

In order to qualify for expedited building aid, the following requirements must be satisfied: the voters must approve the scope and amount of a COP, either as part of the annual school budget or by a separate voter proposition; the Board must undertake the review required by the State Environmental Quality Review Act (“SEQRA”); and NYSED must review and approve the project. Finally, the project must be completed by June 30th of the school year and have a total cost of no more than $100,000.

Although COPs are relatively small projects, School Districts need to be mindful that the competitive bidding requirements under the General Municipal Law apply and the contracts must be approved by the School District’s Board of Education. The District must estimate the costs carefully, providing enough room for the contractor to adequately complete the work (with or without alternates), as well as factoring in the cost of architect fees and a reasonable financial buffer for unexpected issues. Districts should consider requiring proposals on unit prices and/or using “Alternates”, if possible, in connection with preparing the bid specifications. Considering the current construction marketplace, supply chain issues, the project’s $100,000 funding limit, and the relatively short completion deadline, School Districts should build in as much flexibility as possible, so that at least a portion of the project may be salvaged if bids come in above the funding maximum. Once the project is satisfactorily completed, ensure that all closeout obligations have been satisfied, and that the necessary documentation has been submitted by the contractor(s) and approved by the project architect. Work closely with the District’s fiscal advisor to meet the filing deadline for the final cost report to trigger expedited building aid.

Finally, because of the small scope of a COP, a construction manager typically is not involved; the District and its project architect share the responsibilities for construction administration for the project. Therefore, the District’s contract with the project architect should clearly delineate all administration responsibilities during the construction phase.This will help maintain the project within its budget and ensure its timely completion.

Building Condition Surveys and Deadlines

A Building Condition Survey (“BCS”) must be completed once every 5 years. It is a requirement to review the current condition of the School District’s facilities and develop a 5-year plan to address issues in a prioritized way. The NYSED uses the BCS as a tool for a School District to accurately and actively manage the condition of its facilities. Also, the District’s BCS is a required submittal with each capital project submitted to NYSED for approval.

The NYSED staggered the requirement for a BCS among all School Districts starting in calendar year 2020, through the calendar year 2024. That staggered schedule continues for calendar years 2025 – 2029.Information on a District’s deadline for conducting and filing its BCS is available on the NYSED website.

Contact our office if you have any questions about obtaining expedited State aid for Capital Outlay Projects or complying with the BCS schedule.