63A-5b-1210. Standardized cost reporting.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 7/1/2026

(1)The division shall implement a standardized cost reporting system that:

(a)requires an LEA to report construction costs using consistent categories and formats;

(b)enables accurate cost comparison between projects and districts;

(c)tracks cost trends and identifies potential cost savings;

(d)provides data for legislative oversight and budget planning; and

(e)contains detailed cost reporting requirements, including:

(i)pre-construction cost estimates using the Construction Specifications Institute MasterFormat categories;

(ii)monthly cost reports during construction with variance explanations;

(iii)change order documentation with justification and approval authority;

(iv)final reconciled costs with cost-per-square-foot analysis;

(v)separate reporting of construction, equipment, and soft costs;

(vi)comparison to division cost benchmarks by building type and region;

(vii)supports for audit and compliance activities; and

(viii)annual deferred maintenance reporting including:

(A)identification of all maintenance items deferred during the reporting period;

(B)estimated costs for each deferred maintenance item;

(C)priority ranking based on safety, functionality, and cost implications;

(D)projected timeline for addressing deferred items; and

(E)cumulative deferred maintenance backlog by facility and system type.

(a)Notwithstanding the division's tracking of deferred maintenance, the division and the state assume no liability for any deferred maintenance costs or issues arising from deferred maintenance.

(b)The LEA shall retain all liability for deferred maintenance costs and any consequences resulting from deferred maintenance decisions.

(3)The division shall:

(a)analyze cost data to identify trends and outliers;

(b)provide cost guidance to an LEA;

(c)upon request, report to the Legislature on construction cost trends; and

(d)make aggregated cost data available to support planning and budgeting.

(4)The division shall establish and maintain a comprehensive construction cost database that:

(a)is accessible to the State Board of Education and other relevant stakeholders as the division determines;

(b)consolidates historical cost data from all LEA projects completed after January 1, 2025;

(c)provides cost benchmarks updated quarterly;

(d)identifies cost outliers and investigates variances exceeding 15%;

(e)generates annual cost trend reports for legislative review;

(f)supports an LEA budget planning with predictive cost modeling;

(g)tracks deferred maintenance trends across an LEA and facility types;

(h)identifies facilities with excessive deferred maintenance backlogs requiring intervention; and

(i)provides predictive modeling for long-term maintenance and replacement costs.

(5)Beginning July 1, 2029, an LEA shall submit annual deferred maintenance reports to the division that:

(a)identify all maintenance items with estimated costs exceeding $25,000 that were deferred during the fiscal year, limited to items described in Subsections 63A-5b-405(2)(c)(i) and

(ii);

(b)provide justification for deferral decisions;

(c)include facility condition assessments updated at least every five years;

(d)demonstrate how deferred maintenance decisions align with long-term capital planning; and

(e)report on progress addressing previously identified deferred maintenance items.

(6)The division shall implement the requirements of this section in phases as follows:

(a)by July 1, 2027:

(i)complete initial cost database framework development;

(ii)begin collecting historical cost data under Section 63A-5b-1209 ; and

(iii)develop standardized reporting formats;

(b)by July 1, 2028:

(i)establish preliminary cost benchmarks for elementary and secondary schools;

(ii)implement basic cost comparison tools; and

(iii)provide initial training to LEAs on standardized cost reporting;

(c)by July 1, 2029:

(i)complete baseline cost benchmarks for all major building types and regions;

(ii)implement automated cost comparison and analysis tools; and

(iii)establish full compliance requirements for deferred maintenance reporting; and

(d)by July 1, 2030:

(i)achieve full implementation of all cost database and reporting requirements; and

(ii)provide comprehensive training and technical assistance to all LEAs.

(7)Beginning December 1, 2027, the division shall report annually to:

(a)the Education Interim Committee; and

(b)the Transportation and Infrastructure Appropriations Subcommittee.

(8)The annual report shall include:

(a)progress on phased implementation under Subsection

(6);

(b)status of cost database development and benchmark establishment;

(c)implementation status of automated cost comparison tools;

(d)training provided to LEAs on standardized cost reporting;

(e)analysis of construction cost trends and outliers;

(f)deferred maintenance trends across an LEA and facility types;

(g)compliance audit results and enforcement actions taken;

(h)construction oversight fee revenue and expenditures; and

(i)recommendations for statutory or policy improvements.

Enacted by Chapter 225 , 2026 General Session