Chapter 41.32
CHANGE ORDERS – ACCEPTANCE – PAYMENT
Sections:
41.32.010 Change orders.
(a) General. The purpose of this chapter is to delineate the authorities and procedures of the City’s change order control system.
(b) Purpose. The purpose of a change order is to recognize changes occurring on jobs that may result in amendments to the project time schedule and/or cost. Change orders that affect time schedules shall be approved by the appropriate Department Director. Change orders that result in additional costs shall comply with the authority thresholds set forth in this section; these thresholds apply to both the design phase (professional service agreements) and construction phase (construction contract).
(c) Change Orders – Public Improvement Projects/Construction. Any construction change order, which authorizes an improvement under a construction contract, may be executed without competition when:
(1) The improvement is required for the completion of an improvement that is currently under construction pursuant to a competitive bidding or competitive proposal process;
(2) The improvement results from the unforeseen physical conditions at the site of the improvement under construction and is required for the completion of the improvement under construction; or
(3) A written finding has been made by the Project Manager, or his designee, that it is in the City’s best interest to negotiate with a specific, generally on-site, contractor for the construction of the improvement(s).
(d) Authority to Execute Change Orders and Dollar Thresholds.
(1) If the original contract allows for contract modification and the requested change shall increase the contract amount by $50,000 or more and the aggregate of change orders, including the proposed change order, plus the original contract amount is less than the budgeted amount of that contract and/or project, the change shall be approved in advance by the City Council.
(2) If the original contract allows for contract modification and the requested change in contract amount is more than $25,000 and less than $50,000 and the aggregate of change orders, including the proposed change order, plus the original contract amount is less than the budgeted amount of that contract and/or project, the change order shall be approved in advance by the City Manager.
(3) If the original contract allows for contract modification and the requested change is less than $25,000 and the aggregate of change orders, including the proposed change order, plus the original contract amount is less than the budgeted amount of that contract and/or project, the change shall be approved in advance by the requesting agency’s Director or designee.
(e) A request for change must be completed and approved before any change order is effective. Funds shall be encumbered after approval of the change order.
(Res. 04-12 (§ 8.1), 1-16-12)