Government Operations

Facilities Construction and Management

Rule 29: Categorical Delegation of Project Management

Effective Date: 07/08/2026

Admin. Code Reference: R23-29

Rule Type: Current Rule

NOTICE OF SUBSTANTIVE CHANGE

TYPE OF FILING: Amendment

Filing ID: 57998

Rule or section number:

R23-29

1. Agency Information

Title catchline:

Government Operations, Facilities Construction and Management

Building:

Taylorsville State Office Building

Street address:

4315 S 2700 W, 3rd Floor

City, state:

Taylorsville, UT

Mailing address:

PO Box 141160

City, state and zip:

Salt Lake City, UT 84114-1160

2. Contact Persons

Name:

Phone:

Email:

Mike Kelley

801-957-7239

mkelley@agutah.gov

Please address questions regarding information on this notice to the persons listed above.

3. General Information

A. Rule or section catchline:

R23-29. Categorical Delegation of Project Management

B. Purpose of the new rule or reason for the change:

The amendment to the rule categorically delegates authority to state entities to exercise direct supervision over projects under $100,000. This authority was previously set forth in Subsection 63A-5b-604(1) but was inadvertently removed by HB 508, passed in the 2026 General Session.

The amendment is necessary to maintain the ability of state entities to engage in very small projects.

Also, HB 508 (2026) removed the requirement that Division of Facilities Construction and Management (DFCM) obtain payment and performance bonds.

C. Summary of the new rule or change:

The amendment to this rule delegates authority to state entities to exercise direct supervision over projects under $100,000.

HB 508 (2026) removed the requirement that DFCM obtain payment and performance bonds. The amendment clarifies that this exemption applies only to DFCM.

Finally, the amendment also clarifies responsibility for finances, reporting obligations and audit rights, and reimbursement for DFCM services with respect to categorically delegated projects.

4. Legislative Action Information

A. Are any changes in this filing because of state legislative action?

Changes are because of legislative action.

B. If yes, any bill number and session:

HB 508 (2026 General Session)

5. Fiscal Information

Provide an estimate and written explanation of the aggregate anticipated cost or savings to:

A. State budget:

None -- Some project management costs will be shifted from DFCM to the delegated state institution of higher education/state entity but there is no reason to expect that there will be either a net increase or net decrease in such costs to the state budget overall.

B. Local governments:

None -- The rule applies only to state institutions of higher education and other entities of state government – not to local governments.

C. Small businesses ("small business" means a business employing 1-49 persons):

None -- The rule applies only to state institutions of higher education and other entities of state government - not to small businesses.

D. Non-small businesses ("non-small business" means a business employing 50 or more persons):

None -- The rule applies only to state institutions of higher education and other entities of state government – not to non-small businesses.

E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):

None -- The rule applies only to state institutions of higher education and other entities of state government – not to persons other than small businesses, state or local government entities.

F. Compliance costs for affected persons:

None – Delegating project management functions from DFCM to state institutions of higher education and other entities of state government as provided in this rule is not expected to result in any compliance costs for affected persons.

6. Regulatory Impact Summary Table

Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."

Fiscal Cost

FY2027

FY2028

FY2029

FY2030

FY2031

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Cost

Fiscal Benefits

FY2027

FY2028

FY2029

FY2030

FY2031

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Benefits

Net Fiscal Benefits

7. Regulatory Impact Analysis Approval

The Commissioner of the Department of Government Operations, Marvin Dodge, has reviewed and approved this regulatory impact analysis.

8. Family Impact Information

A. The agency has considered this rule's impact on family health, stability, and formation:

☒

9. Citation Information

Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:

Subsection 63A-5b-305(2)(c)

Subsection 63A-5b-604(4)

11. Public Notice Information

The public may submit written or oral comments to the agency identified in box 1.

A. Comments will be accepted until:

07/01/2026

12. Effective Date Information

This rule change MAY become effective on:

(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)

07/08/2026

13. Agency Authorization Information

Agency head or

Andy Marr, Director

Date:

05/04/2026

designee and title:

R23. Government Operations, Facilities Construction and Management.

R23-29. Categorical Delegation of Project Management.

R23-29-1. Purpose.

This rule provides the terms and conditions for delegation of construction projects to the University of Utah, Utah State University, regional universities as defined in Subsection 53H-3-602(1)(b)(ii) (Regional Universities), comprehensive community colleges as defined in 53H-3-602(1)(b)(iii) (Comprehensive Community Colleges); technical colleges as defined in Subsection 53H-1-102(1)(b) (Technical Colleges); [and ]the

Utah Department of Transportation (UDOT); and other state entities on a categorical basis for projects within a particular dollar range and particular

project type. The University of Utah, Utah State University, Regional Universities, Comprehensive Community Colleges and Technical Colleges are

referred to collectively in this rule as "Institutions". UDOT and other state entities are referred to collectively in this rule as "Entities".

R23-29-2. Authority.

This rule is authorized under Subsection 63A-5b-305(2)(c), which authorizes the director to make rules necessary for the division or director to perform the division or director's duties. This rule is also authorized under Subsection 63A-5b-604(4) which provides that in accordance the Utah Administrative Rulemaking Act, the director may delegate control of design, construction, and all other aspects of any project to entities of state government on a categorical basis for projects within a particular dollar range and particular project type.

R23-29-3. Authority and Extent of Categorical Delegation.

(1) Projects Delegated on a Categorical Basis. As permitted by Subsection 63A-5b-604(4), authority is delegated to [the University of

Utah, Utah State University, Regional Universities, Comprehensive Community Colleges, Technical Colleges and the Utah Department of

Transportation,]Institutions and Entities to exercise direct supervision over the design and construction of all projects on their respective properties or

facilities up to the dollar amounts stated. If an Institution or Entity proceeds with a project under this rule, the Institution or Entity shall be deemed to

have accepted delegation for all projects that qualify for categorical delegation under this rule.

(2) Delegation Dollar Limitations. The delegation referred to in this rule is granted to [the University of Utah, Utah State University,

Regional Universities, Comprehensive Community Colleges, Technical Colleges and Utah Department of Transportation]Institutions and Entities for

projects having a budget for construction, excluding soft costs, consistent with the division's Construction Budget Estimate (CBE) form, of:

(a) $10,000,000 or less for Utah State University;

(b) $30,000,000 or less for the University of Utah;

(d) $1,000,000 or less for Comprehensive Community Colleges;

(e) $250,000 or less for Technical Colleges;[ and]

([e]f) $350,000 or less for the Utah Department of Transportation[.]; and

(g) $100,000 or less for Entities other than the Utah Department of Transportation.

R23-29-4. Annual Review and Revocation of Categorical Delegation.

Categorical delegation under this rule is subject to renewal in writing by the director on an annual basis. In the event the director does not renew a categorical delegation under this rule, such delegation shall be deemed revoked. The director shall have the right to audit the use of funds on

projects delegated under this rule. At any time the director may revoke a delegation on a categorical basis and the division may assume control of the

design, construction, or other aspect of a category of delegated projects or specific project delegated on a categorical basis if the director considers revocation of the delegation and assumption of control to be necessary to protect the interests of the state.

R23-29-5. No Artificial Division of Projects.

Projects may not be divided into multiple projects to create projects which are small enough to meet the dollar limits for delegation. Projects that are designed to be constructed in conjunction with each other and are to be constructed by the same construction contractor, including construction manager/general contractor, are projects that are prohibited from being artificially divided under this rule.

R23-29-6. When Legislative Authorization and a Program Is Required.

When applicable, this delegation authority may not take effect for a specific project until the following requirements are met:

(1) legislative authorization, when required, for design and construction has been obtained for the construction; and

(2) the requirements of Section R23-29-18, when applicable, regarding the completion of a division administered architectural program have been satisfied.

R23-29-7. Building Official.

Pursuant to Subsection 63A-5b-604(7)(a)(iv), for projects delegated on a categorical basis pursuant to this rule, the role of compliance agency under Title 15A, State Construction and Fire Codes Act, shall be filled by the division's building official for Regional Universities, for Comprehensive Community Colleges, for Technical Colleges and for [the Utah Department of Transportation]Entities. The University of Utah and

Utah State University shall use an in-house building official or contract for a building official; all as approved by the division's building official. The director may change the foregoing designations at any time.

R23-29-8. Procurement.

The [state]Institution or [e]Entity delegated a project on a categorical basis under this rule shall be responsible for compliance with the

Utah Procurement Code, Title 63G, Chapter 6a and all applicable procurement rules.

R23-29-9. Contract Documents.

The [state]Institution or [e]Entity delegated a project on a categorical basis under this rule shall utilize substantially the same standard

Contract Documents as used by the division. Any substantive differences must be approved by the division.

R23-29-10. Transfer of State Funds.

[To the extent possible, s]State funds appropriated to the division for projects delegated to an Institution or [ state e]Entity under this rule

shall be transferred to the respective Institution or [state e]Entity in a timely manner upon the receipt of such funds by the division and on a

reimbursement basis after the Institution or Entity provides[ing] such supporting documents as may be required by the division. As provided in

Subsection 63A-5b-303(4), the division shall be entitled to deduct fees established pursuant to Section 63J-1-410 or 63J-1-504 from such funds to

reimburse the division for division services provided by the division to an Institution or Entity in connection with a project delegated to an Institution

or Entity under this rule.

R23-29-11. Contingency Funds, Contingency Reserve, and Project Reserve.

[The]An Institution or [state e]Entity delegated a project on a categorical basis under this rule shall be subject to the same laws and rules

regarding contingency funds as is the division except that:

(1) contingency funds for delegated projects shall be segregated from the contingency funds held by the division for non-delegated projects and released upon justification and such documentation as may be required by the division; and

(2) the Institution or [state e]Entity may not access for the delegated project, the division's statewide contingency reserve and project

reserve authorized in Section 63A-5b-609.

R23-29-12. Space Standards.

An Institution or [state e]Entity delegated a project on a categorical basis under this rule shall comply with the space standards as adopted

by the division. Any significant deviations from these standards must be approved in advance by the director.

R23-29-13. Design Criteria.

An Institution or [state e]Entity delegated a project on a categorical basis under this rule shall utilize the design criteria adopted by the

division. These may be supplemented by special requirements that are unique to each Institution or [state e]Entity delegated a project on a categorical

basis under this rule.

R23-29-14. Value Engineering.

An Institution or [state e]Entity delegated a project on a categorical basis under this rule shall comply with applicable laws and rules

regarding the value engineering and life cycle costing of facilities. The division may assist the Institution or [state e]Entity as requested by the

Institution or [state e]Entity in complying with these requirements.

R23-29-15. Record Drawings.

At the completion of each delegated project, each Institution or [state e]Entity delegated a project on a categorical basis under this rule shall

be responsible for retention of record drawings and other closeout documents and shall submit a copy of all record drawings and other closeout

documents of any new facility to the division as well as record drawings and other closeout documents for any other project when requested by the

division.

R23-29-16. Specific Statutory Requirements.

(1) In addition to the statutory requirement specified elsewhere in this rule, each Institution or [state e]Entity shall comply with the

following requirements:

(a) laws relating to bid security and payment and performance bonds;

([a]b) laws relating to retention;

([b]c) laws relating to health insurance;

([c]d) laws relating to historical preservation;

([d]e) laws relating to the protection of the environment;

([e]f) laws relating to the notification to local governments or any person regarding certain types of projects;

([f]g) the Percent-for-Art program as provided in the Utah Code;

([g]h) Section 63A-5b-406 relating to the reporting of completed projects to the Office of the Legislative Fiscal Analyst;

([h]i) Section 63A-5b-605 relating to the listing and changing of subcontractors and the disclosure of subcontractor bids; and

([i]j) all applicable constitutional provisions, laws, rules, codes, and regulations.

R23-29-17. Reporting.

(1) Unless more frequent reporting is required pursuant to subsection (3), Institutions and Entities[The University of Utah, Utah State

University, Regional Universities, Comprehensive Community Colleges, Technical Colleges and the Utah Department of Transportation] shall report

[monthly ]quarterly to the division on the status of their delegated projects of over $100,000.00.

(2) Reports, at a minimum, must include:

(i) the current project status including all contracts, change orders and modifications;

(ii) a description of any issues that materially impact the project; and

(iii) an accounting of project balances, amounts spent to date, amounts obligated and remaining balances.

([2]3) The director may at any time indicate minimum requirements for reports as well as ask for [further]additional information.

(3) The division may require the reports to be submitted more often than quarterly in the discretion of the director.[reports shall be

submitted to the division in accordance with the schedule established by the division.]

R23-29-18. Programming for Delegated Projects.

(1) For delegated projects within the definition of "New Facility" as defined in Title 63a, Chapter 5b, Administration of State Facilities, a facility program shall be developed under the supervision of the division unless this requirement is waived by the division.

(2) For delegated projects where a program is not required under this rule, the Institution or [state e]Entity may determine the extent of

programming or scope definition required and supervise the development of [these]such documents.

R23-29-19. Sharing of Resources.

The division and the Institution or [state e]Entity delegated a project on a categorical basis under this rule shall coordinate to share

personnel resources to make sure that all personnel resources from both the division and the Institution or [state e]Entity delegated a project on a

categorical basis under this rule are sufficient for the delegated project. The Institution or [state e]Entity and the division shall enter into a separate

agreement to accomplish this sharing of resources.

KEY: buildings, delegation

Date of Last Change: 2026[December 22, 2025]

Notice of Continuation: February 7, 2024

Authorizing, and Implemented or Interpreted Law: 63A-5b-604

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