Predesign and Capital Projects.  Predesign is a planning and analysis process that may be completed prior to the design and construction phases of capital projects.  Broadly, predesigns for state-funded capital construction projects include identification of the problem that the project would address, analysis of project alternatives, detailed analysis of the preferred alternative, and project budget analysis.  Predesigns typically include: 

• building massing schemes;
• site planning;
• other planning and regulatory analysis;
• risk assessment; and
• detailed consideration of the preferred alternative's programmatic use and planned occupancy of the facility. 

State-funded predesign requirements are outlined in the Office of Financial Management's (OFM) Predesign Manual.

Predesign Cost Thresholds.  Predesigns are generally required for state-funded capital construction projects valued over $10 million.  Certain capital projects below this threshold, such as high-risk projects, may also be required to complete a predesign.  OFM may also grant exceptions for some or all predesign requirements for higher-cost projects under certain conditions—in other words, low-risk or relatively simple projects.  If some or all predesign requirements are waived, OFM may propose a professional cost estimate in lieu of a request for predesign funding.  When OFM grants exceptions to the predesign process, it must report various information about the exception to the fiscal committees of the Legislature.

Prior to 2021, projects over $10 million for higher education and $5 million for all other agencies required a predesign.  In 2021, the Legislature raised the threshold to $10 million for all agencies and authorized OFM to waive the predesign requirements if certain conditions were met.

C-100 Form.  As part of OFM's budgetary role in administering state capital projects, it requires agencies to submit a capital budget form called the C-100 for major capital project funding requests.  This form is used for cost estimating purposes and includes an inflation factor that is updated each year.

The statutory threshold for capital construction projects is increased from $10 million to $15 million.  OFM is required to adjust this threshold annually for inflation, using the C-100 form's inflation factor, beginning July 1, 2027.

PRO:  Allowing an agency to avoid a predesign creates efficiencies in two ways.  One, predesigns are expensive; and two, it can spread a project out over several years.  With the predesign requirement it can take up to three biennia to complete a project. There can be significant cost escalation over that time period.