I. Approval for Live Projects
A. Program Based Live Client Projects
For College programs that have a clinical/lab component which are open to the public a routine part of the curriculum and program, the Dean or designee responsible for the program shall make an annual report at the end of each semester to the Vice President of Instruction regarding live client projects. The Vice President is authorized to approve the continued use of live client projects for these programs.
B. Specific Live Client Projects
If an instructor desires to implement a specific or new live client project, the instructor shall provide a completed Request for Live Project form to the program’s Dean for approval. The VP of Instruction, VP of Administrative Services and President must also sign the request form prior to beginning work on the project.
The utilization of live projects for a curriculum program shall be based on the following criteria:
II. Client Selection
Preference shall be given to current students, employees and Trustees in selecting clients for live projects. When, however, it becomes necessary to solicit outside clients in order to provide students with enough experience to carry out the desired live project, the instructor responsible for the live project shall adopt specific, written criteria for selecting outside clients. The criteria must be approved in advance by the Vice President for Instruction and shall not be inconsistent be consistent with the State Board Code. The course instructor has discretion on whether or not to undertake a project on the basis of whether or not it fits in with the course curriculum. The instructor will notify the client whether or not the project is accepted, the estimated start and completion date as well as any parts or materials required for the project.
III. Client Charges
Under State Board Code, the College is authorized to charge clients for goods and services produced through live projects. For live projects involving repair or remodeling non-College owned personal and/or real property, the owner of the property shall supply or pay for all parts required. For live projects involving the construction of structures that are sold, produced goods that are sold, or services that are provided, the College shall charge the client for the value of the structures, goods and/or services. Project receipts shall be deposited into an unrestricted institutional account.
IV. Payment for Live Projects
A. The instructor may, at his/her sole discretion, order necessary supplies directly from the supplier as long as those costs involved are repaid prior to release of the project. The purchase must be made through the Business Office by utilizing the College’s E-Trieve system, with the applicable institutional account noted on the request. Clients must pay costs directly to the Business Office before the project can be released. The Business Office will issue a receipt after payment, which must be presented to the appropriate instructor as a basis for releasing the project.
B. Travel expenses to and from an off-campus live project site may also be charged to the client at the current mileage rate for private vehicles. Instructors will complete the standard Travel Authorization and Reimbursement form in E-Trieve. Student travel expense to an off-site live project will be handled on an individual basis between the instructor and the student then approved by the program’s Dean.
C. Curriculum supplies used solely as teaching aids will not be subject to billing provided they remain the property of the College or are expendable.
D. No instructor or other employee of the College is to receive personal monetary gain from live projects. Per the College’s Purchasing Manual, the intent and appearance of unethical or compromising practices in relationships, actions and communications must be avoided. College employees must refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the institution. Therefore, live project supplies shall not be purchased from an employee’s personal business, nor will the employee sell any live projects through his/her business.
V. Use of Live Client Project Receipts
All costs that otherwise would not have been incurred absent the live client project shall be supported by funds from the College’s account that receives the live client project receipts and shall not be supported from State funds. These costs include, but are not limited to: supplies and materials used in producing the good or service; additional personnel required to serve clients; specialized equipment; liability insurance; and other costs directly related to the live client project as distinguished from an instructional program that does not produce income. In the context of construction live client projects, these costs include, but are not limited to: all building materials; land; land improvements; amounts paid to subcontractors for work not performed by College students or employees; any actual interest paid on construction loans or financing arrangements provided for by a partnering third-party entity; and any legal fees and closing costs that may be required. Live client project receipts may also be used to supplement instructional costs of those programs engaging in live client projects. The instructor responsible for the live project shall maintain detailed records so that the College may prepare annual financial statements and a complete audit of the account may be made after the close of the fiscal year.
A. Where federal programs are involved, federal regulations do not permit goods to be sold. In such programs, goods produced may be used for the benefit of the College or donated to another nonprofit charitable organization, educational agency or institution.
B. For live projects that involve the repair of equipment purchased with State funds or Federal surplus property, the repair of this equipment and its sale as surplus shall follow the State Division of Purchase and Contract regulations. The proceeds of such sales shall be deposited with the State Board of Community Colleges and credited to the College’s equipment budget.
C. The College may use a combination of State funds and live client project receipts to support costs associated with providing services to patrons, such as cosmetology and dental hygiene services.
D. If the college decides to discontinue a live client project activity, any unexpended funds in the live client project institutional account shall be used for other live client projects or used consistent with the provisions of 1E SBCCC 700.7.
VI. Construction Live Projects
A. The College shall not engage in live client construction projects that repair or remodel property for companies or individuals that are in the construction business, unless the property undergoing repair or remodeling is used in the usual course of the business and is not being resold.
B. For construction live client projects where a permanent building is constructed on the College’s campus or on property owned by the College, the College shall follow all requirements of the General Statutes in acquiring the building materials and any subcontracted work, as well as in disposing of the building and property. College employees on the College’s permanent payroll are permitted to perform construction or repair work as long as project costs do not exceed the maximum thresholds established in G.S. 143-135. A project cannot be subdivided to evade the provisions of G.S. 143-135.
VII. Liability Issues
A. Prior to entering into any live client projects, the instructor for the live project must obtain all the appropriate signatures on the Request for Live Project form. The participating clients must sign the form, acknowledging the waiving of all liability for work, projects and services provided by the College. The participating clients shall assume any and all risk, as well as all future liability, for the live client project when the College declares the students/instructor(s) involvement terminated and the live client project finished. No item held by the college shall be deemed a live project or the responsibility of college officials until the appropriate form has been submitted and approved.
B. When a live project has been completed, the property owner will be notified. As applicable, the property owner will have six months to retain their property. If the owner fails to retain the live project property within the six month timeframe the item will become property of the college and disposed of as the college sees fit.
Adopted: September 9, 2019
Updated: March 1, 2023
Legal Citation: 1H SBCCC 300.1
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Last Updated: Wednesday, May 3rd, 2023 at 9:30 AMSee Alert History