Passage of change order ordinance long overdue

By Anonymous
Posted Jan 10, 2011 @ 10:45 AM
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Chillicothe City Council members will consider a measure tonight that more clearly defines who within city government will have authority and to what extent their authority reaches when approving change orders on public works projects. It is not unusual that during the course of construction projects such as streets or buildings that unforeseen changes need to be made to the original plan, thus causing the project to have a cost overrun. The ordinance to be presented tonight, which we wholeheartedly support, puts into writing the scope of authority. Among the measure’s requirements: 1. Change orders less than $5,000 each or totaling less than 10 percent of the contract price, may be approved by the department manager for the department responsible for the public works contract; 2. Change orders totaling more than 10 percent of the contract price or $20,000 but less than $50,000, would require approval from the city administrator or the general manager of the board of public works; and 3. Change orders totaling more than $50,000 would require city council approval, except in emergency situations. The proposed ordinance also states that the mayor, city administrator and city council would be provided copies of all change orders within 15 days of the change orders taking place. Passage of this ordinance is long overdue. Had this been in place during the Third Street reconstruction project, all city officials would not only have been made fully aware in a timely fashion about change orders but they could have had the opportunity to vote on the change orders. While both phases of the Third Street project came in below the engineer’s estimates, there were more than $110,000 in change orders.Tonight’s proposal creates a policy that provides clarity of authority and greater openness within government.
 

Chillicothe City Council members will consider a measure tonight that more clearly defines who within city government will have authority and to what extent their authority reaches when approving change orders on public works projects. It is not unusual that during the course of construction projects such as streets or buildings that unforeseen changes need to be made to the original plan, thus causing the project to have a cost overrun. The ordinance to be presented tonight, which we wholeheartedly support, puts into writing the scope of authority. Among the measure’s requirements: 1. Change orders less than $5,000 each or totaling less than 10 percent of the contract price, may be approved by the department manager for the department responsible for the public works contract; 2. Change orders totaling more than 10 percent of the contract price or $20,000 but less than $50,000, would require approval from the city administrator or the general manager of the board of public works; and 3. Change orders totaling more than $50,000 would require city council approval, except in emergency situations. The proposed ordinance also states that the mayor, city administrator and city council would be provided copies of all change orders within 15 days of the change orders taking place. Passage of this ordinance is long overdue. Had this been in place during the Third Street reconstruction project, all city officials would not only have been made fully aware in a timely fashion about change orders but they could have had the opportunity to vote on the change orders. While both phases of the Third Street project came in below the engineer’s estimates, there were more than $110,000 in change orders.Tonight’s proposal creates a policy that provides clarity of authority and greater openness within government.
 

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