(1) The division may provide comprehensive construction management services to an LEA, including: (a) project procurement and contractor selection; (b) construction oversight and inspection coordination; (c) cost management and change order approval; (d) compliance verification and quality assurance; (e) project scheduling and milestone management; and (f) architect and design professional services when required under Section 63A-5b-1204 or requested by an LEA. (2) An LEA may request division construction management services for: (a) any project exceeding $3,500,000 in total cost; (b) complex projects requiring specialized expertise; or (c) projects where the LEA lacks sufficient internal capacity. (3) The division shall provide construction management services when: (a) requested by an LEA and capacity allows; or (b) an LEA has demonstrated repeated compliance failures. (4) (a) The division shall establish a cost structure for managed services where: (i) the LEA reimburses the division for all direct project costs; (ii) administrative fees do not exceed: (A) 3% of total project cost; and (B) for projects under $3,500,000, the actual cost of providing management services in relation to the specific project; and (iii) fee schedules are published annually in division rules. (b) The division shall ensure: (i) the administrative fee structure for division-managed projects includes the construction oversight fee required by Section 63A-5b-1214; and (ii) an LEA may not pay duplicative fees. (c) The division shall provide an LEA with a detailed fee breakdown showing: (i) additional direct project management costs; and (ii) the total administrative fee percentage. (5) The division shall ensure that for division-managed projects: (a) the division assumes full responsibility for code compliance; (b) all procurement follows state procurement rules; (c) the LEA retains authority over educational program requirements; and (d) regular progress and financial reports are provided to the LEA governing board as defined in Section 53E-1-102. (6) An LEA may appeal the division's determination to require division-managed construction services to the appeals panel established under Section 63A-5b-1221.
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