Common use of MAJOR PROJECTS Clause in Contracts

MAJOR PROJECTS. A major project is a project with an estimated total cost in the year of expenditure of over $500 million and one that involves any amount of Federal financial assistance. FHWA and CDOT will place special emphasis on major projects including more extensive review of project costs estimates, thorough Cost Estimate Reviews (CER), Project Management Plans (PMP), risk analysis and the development of Finance Plans. Detailed guidance on FHWA’s expectations are found on FHWA major project website including an FHWA memorandum from FHWA Administrator dated January 19, 2007 - ▇▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇▇/majorprojects/ 1. Risk Management Tool: FHWA will utilize a document titled “Risk Management Tool for Managing the Planning/Environmental Phases of Prospective Major Projects,” located on FHWA major project website: ▇▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇▇/majorprojects/resources/mpg_rm_tools.cfm 2. Cost Estimate Reviews (CER): Prior to submitting an EA or FEIS to FHWA, CDOT shall coordinate with the Division Office to schedule a risk based Cost Estimate Review of the preferred alternative. CER requirements can be found at 23 U.S.C. § 106(h)(3). Guidance on cost estimating is found on FHWA major project website: ▇▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇▇/majorprojects/cost_estimating/ 3. Project Management Plan (PMP): A draft PMP must be submitted to FHWA for review prior to approval of the NEPA decision document (within 60 days prior to submittal of the Decision document). FHWA will provide comments and CDOT shall submit a PMP for approval within 90 days of the date of the signed NEPA decision document. This document should clearly define the roles, responsibilities, processes, and activities necessary to manage the project, which will result in the major project being completed on time, within budget, and with the highest degree of quality and safety. A PMP must be approved prior to any federal action such as authorizing federal funds for ROW or construction. Also, during construction, the PMP must be revised and updated periodically as needed to reflect current status of the major project. PMP requirements can be found at 23 U.S.C. § 106(h)(2). Guidance on a PMP is found on FHWA major project website: ▇▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇▇/majorprojects/pmp/ 4. Finance Plans (FP): For Projects greater than $500M, an Initial Finance Plan (IFP) shall be submitted for review and approval prior to construction authorization. The IFP shall be submitted to provide sufficient time such that review and approval can be obtained for construction authorization. Depending upon the complexity of the project, a minimum of 90 days should be planned for review and approval. On a designated date, until completion of construction, CDOT will submit an annual update and certification for FHWA Division Office approval for projects greater than $500 million. For projects with a total cost between $100M and $500M, CDOT shall submit an Initial Finance Plan to FHWA prior to construction authorization (no approval required) and annual updates shall be submitted to FHWA for review purposes only. FP requirements can be found in 23 U.S.C. § 106(h)(3)(D), MAP-21 § 1503(a)(4)(B). Guidance on a major project Finance Plan is found on FHWA major project website: ▇▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇▇/majorprojects/financial_plans/