|Note:||At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.|
PCS 215: Land/Building Purchase and New Building Construction
To outline requirements for purchasing land or buildings and for constructing new buildings
Arizona Board of Regents Policy Manual - 7-303
Department of Facilities Management
Purchasing and Business Services
Land and Building Purchases
Land and building purchases must have prior approval from the Board of Regents. All construction, repair, and maintenance projects expected to cost more than $105,000, regardless of the funding source, must have prior approval. If the original estimate was expected to be less than $105,000 and the final estimate exceeds this amount, the Board of Regents must approve the project before construction.
Capital Improvement Projects
Capital improvement projects must have prior approval from the Board of Regents regardless of cost.
Real property purchased by ASU is legally owned by the Board of Regents. This property must be appraised before purchase. Emergency purchases may be made without prior Board of Regents’ approval provided certain conditions are met. Board action following purchase may be required.
Real property may consist of the following:
Land (Object Code 7890 01)
Improvements to Land Other than Buildings (Object Code 7890 06)
This category consists of land improvements outside the periphery of the building. Improvements to land, other than buildings, which are required to make land ready for its intended use, are capitalized if the aggregate expenditure is $100,000 or more per project.
This category includes: roads, walkways, tunnels, utilities, drainage systems, landscaping, parking lots, tennis courts, athletic fields, fences, curbs, streetlights, and other similar items. The capitalization criteria are the same as those used for building capitalization.
Buildings/Building Components (Object Codes 7890 11– 99)
Property Control establishes a separate and complete inventory record for each distinct unit of real property. A separate building record is established immediately after title is acquired for a new tract of land or building, or construction of a new building is completed.
The department submits a memo and a proposal to University Real Estate Development Office justifying the use and funding source of the land or building being purchased.
|Note:||The University Real Estate Development Office is distinct from Property Control.|
The University Real Estate Development Office submits proposals to the Board of Regents for approval, if applicable. When approval is granted, the University Real Estate Development Office:
Once the property is acquired, Facilities Management:
|Note:||The building number is used as a reference for future additions or improvements. Future capital renovations are added to the building inventory record based on PCS 103, “Remodeling and Other Building Costs.”|
Property Control records all capital costs, including additions and improvements, to the appropriate building record, provided they comply with PCS 101, “Plant Acquisitions,” and PCS 103, “Remodeling and Other Building Costs.”
For authoritative references see the Research Policies and Procedures Manual— RSP 101, “General Research Policy”
skip navigation bar
skip navigation bar