Chapter 2.65
CHANGE ORDERS AND CONTINGENCIES
Sections:
2.65.020 Change orders – Roles.
2.65.030 Change orders – Issuance and authorities.
2.65.040 Contingency provisions.
2.65.050 Fiscal responsibility of the public works director.
2.65.060 Reasonable exception.
2.65.010 Definitions.
Words and terms not defined shall have their ordinary meaning.
A. “Authorized signatory” means an individual authorized to commit a party to a contract or to a change order.
B. “Change order” means a valid instruction, from an authorized signatory of the city, that results in revised work to a contract. Change orders are appended to the original contract and become part of said contract.
C. “Contingency provision” means a budgeted amount of money used to pay the cost of change orders and expressed as a percentage of the bid amount accepted by the city to complete the work contemplated in the bid.
D. “Contract” shall be defined as set forth in RCW 39.04.010, and as amended in the future.
E. “Exceptional change order” means a change order approved under the reasonable exception section of this chapter that, either singularly or in the aggregate, exceeds 10 percent of the original bid amount accepted by the city.
F. “Original contract” means a contract exclusive of any subsequently appended change orders.
G. “Project manager” means a direct employee of the city of Newcastle responsible for the management of a given public work.
H. “Public work” shall be defined as set forth in RCW 39.04.010, and as amended in the future.
I. “Public work contract” means a contract let to complete a public work.
J. “Revised work” means the change, addition, or deletion of work within a public work contract. (Ord. 2005-313 § 1).
2.65.020 Change orders – Roles.
The positions or body identified below have the following roles in change orders:
A. City Council. Authorized to approve any and all change orders, particularly those in amounts in excess of the authority granted below.
B. City Manager. Authorized to negotiate and approve any and all change orders in accordance with the authority granted by the city council.
C. Public Works Director. Authorized to negotiate and approve change orders for all public works as specified in NMC 2.65.030. The public works director shall timely notify the city manager of all change orders approved by the public works director.
D. Project Manager. Not authorized to approve change orders but is authorized to (1) determine whether change orders should be issued to initiate revised work, (2) negotiate change orders for subsequent approval by his or her superior, and (3) add working days to the original contract for weather delays (as the project manager may determine) or other bona fide reasons (as determined by the project manager when in the absence of the city manager and public works director). The project manager shall timely report said determinations, negotiations, and additions to the public works director or to the city manager in the absence of the public works director.
E. Design Engineer. Not authorized to negotiate or approve change orders, but is to be consulted on all change orders other than simple variations of quantity. (Ord. 2005-313 § 1).
2.65.030 Change orders – Issuance and authorities.
A. Issuance. Change orders may be issued to effect revised work that is required as a result of unanticipated developments that arise during the performance of a public work contract. A change order is issued by the city, provided the revised work can be considered a reasonable part of the original scope and intent of the public work rather than departing from it, and where it clearly would be contrary to the public interest to halt the public work and call for bids.
B. Authority. Change orders that result in a final contract cost in excess of the bid amount accepted by the city may be administratively approved if the changes made are in accordance with this chapter, executed in writing, and approved by the appropriate authorized signatory.
1. City Council. The city council may authorize any change order. Such authorization shall require majority approval of the council.
2. City Manager. The city manager may approve change orders, whether singularly or in aggregate, for any given public work up to an amount equal to $100,000 or up to an amount equal to 10 percent of the original bid amount accepted by the city to complete the work contemplated in the bid, whichever is less. The city manager may exceed the aforementioned $100,000 amount or 10 percent amount in accordance with the provisions of NMC 2.65.060.
a. Notwithstanding subsection (B)(2) of this section, the city manager may approve change orders for the Coal Creek Parkway Construction Phase II and Phase III Projects, whether singularly or in aggregate, in amounts up to $500,000 for each of these projects. During the effective period of the project, the city manager or the public works director shall provide a report and an accounting at regular meetings of the city council concerning all change orders approved by the city, as well as the balance remaining in the Coal Creek Parkway Construction Project contingency.
b. Subsection (B)(2)(a) of this section shall be in effect until the completion of Phases II and III of the Coal Creek Parkway Construction Project, or December 31, 2010, whichever occurs later.
3. Public Works Director. The public works director may approve change orders according to policy established by the city manager. (Ord. 2007-368 § 1; Ord. 2005-313 § 1).
2.65.040 Contingency provisions.
Each public work contract shall have a contingency provision as set forth in this section. The contingency shall equal 10 percent of the original bid amount accepted by the city to complete the work contemplated in the bid. The contingency provision shall be used exclusively to pay the costs associated with change orders for a given public work and for no other purpose. (Ord. 2005-313 § 1).
2.65.050 Fiscal responsibility of the public works director.
The public works director shall apprise the finance director of all anticipated and actual fiscal obligations of public works contracts and change orders, and shall verify sufficient funds are available to cover said obligations of the city prior to letting public works contracts or authorizing change orders. (Ord. 2005-313 § 1).
2.65.060 Reasonable exception.
Notwithstanding the provisions of RCW 39.04.280, in unique circumstances the city manager may exceed the authority granted in NMC 2.65.030, if it is deemed in the best interest of the public and the project to approve an exceptional change order; provided, that based upon the recommendation of the public works director and/or the project manager, not issuing the exceptional change order would risk unacceptable project delay and/or higher costs (e.g., remobilization); and provided further, that the next regular city council meeting is sufficiently far in the future that not issuing the exceptional change order would significantly risk the project’s ultimate cost and/or anticipated completion. In the event the city manager approves an exceptional change order under this reasonable exception provision, he/she shall notify the city council at the next regular meeting of the city council and seek ratification of his/her actions by resolution of the city council. (Ord. 2005-313 § 1).