Council must also create a policy for planning and carrying out capital projects.
This policy includes the steps for:
- setting the maximum amounts that show when a capital project planning process should begin. These should be set by the amount of money available, sources to receive money from, projects, or the expected impact on the community
- when the maximum amounts are exceeded, Council must document a capital project plan (which may also be called a business plan or financing proposal)
- the capital project plan must include all information that is needed to reach an informed decision. This includes the ability to continue the plan’s goals over a period of time, the tasks needed for the project to operate smoothly, and a risk assessment
This policy must state that the plan for a capital project must include:
- the necessary project planning, design, engineering, safety, and environmental standards
- the cost, budget , financing, and approval of the project
- the standards for hiring or bidding for a contractor
- tender , contract form, and contract acceptance
- insurance for the varying steps of construction
- the guarantees of project performance
- project control, including contract management
- money withheld, approvals to work, and procedures for payments and audits
This policy must also state that the First Nation’s members must be part of or told about capital projects and any borrowing of money that is done for the construction of new capital asset projects.