Change Orders

Build the project that was bid and awarded

Change Orders Build the project that was bid and awarded

Change Orders Build the project that was bid and awarded The ONLY permissible change orders are for changes required to complete the project as originally scoped

Change Orders Build the project that was bid and awarded The ONLY permissible change orders are for changes required to complete the project as originally scoped

Change Orders Build the project that was bid and awarded The ONLY permissible change orders are for changes required to complete the project as originally scoped LPAs cannot use local funds for work beyond the original scope

Change Orders Build the project that was bid and awarded The ONLY permissible change orders are for changes required to complete the project as originally scoped LPAs cannot use local funds for work beyond the original scope

Change Orders Amend the contract – Adding or deleting work (quantity adjustments) – Additional costs for differing site conditions – Changes in the scope of work that affects: Sequence Method of construction Efficiency of work – Changes for the convenience of the owner – Changes needed due to actions of others

Elements of a Change Order Elements of a change order: Face (Identification): – PROJECT - Quantity – C/R/S- Ref # – Fed #- Part Code – Fed Acceptance type- Item Code – CHANGE ORDER- Item Description – CO number - COST INFO – WORK INFO - Unit Price/Lump Sum – Units of measure - Total +/- and Total

Elements of a Change Order Body of Change Order – Reference Number, Extra Work Number, Part Code – Reason Code – Explanation of necessity Problem/solution Approach to change order pricing – Schedule impact Signatures – Agency – Contractor

Elements of a Change Order Attachments – Approval by ODOT Construction Monitor (EVERY change order) – Authorization by internal controlling board (City Council, County Commissioners, etc.) – FHWA approval (on Federal Oversight projects) – Supporting documentation (letters to/from Contractor, ODOT, internal engineers) explaining change - Cost Analysis

Change Order Pricing Agreed unit price – Use prices already in the contract – Compare prices for similar work statewide Similar quantities Similar area of state Available on website Production rate calculations – Agreed lump sum – Force Account

Change Order Pricing Force Account (C&MS ) (ODOT’s least favored, Contractor’s favorite) Work Force (name, class, hrs. reg., hrs. OT) Equipment (“Blue Book”, type, model, age, capacity, hrs. worked, hrs. idle) Materials (invoices: description, qty., price) 3 rd Party Billing (invoices) Allowable markups (see C&MS ) Inefficiencies

Change Order Pricing Changes to the plans involving extra or changed work could affect the schedule – delays turn into dollars. Project Schedule important tool. DOCUMENT, DOCUMENT, DOCUMENT Someone who knows nothing about the project should be able to come back five years later and with only the change order and attachments understand why and how a change order was processed.