Change Order Procedure

Individual change orders costing $5,000 or more require review and approval by the Board at the next regularly scheduled Board meeting prior to authorizing execution of the work.

Individual change orders costing less than $5,000 may be approved by the administration and work may progress on the change order without prior Board approval.

Approval authorization granted to the administration expires on a given contract when for that contract any one of the following conditions exist:

The cumulative number of change orders for less than $5,000 exceeds five.

The cumulative value of change orders for less than $5,000 exceeds $10,000 or two percent of the original contract price, whichever is smaller.

The Board, at its discretion, revokes authorization.

The project manager and the administration shall implement the following measures prior to authorization of change order work or informing the Board of pending change orders:

Avoid segmentation of change orders into multiple change orders for the purpose of skirting cost ceiling requirements.

Document that all change order components are valid contractual changes warranting contract cost modification.

Obtain a detailed estimate of change order cost from the contractor, review the estimate in detail relative to resources required and unit pricing, and aggressively negotiate a mutually agreeable final change order cost.

Monitor the execution of change order work to ensure that costs were correctly estimated by the contractor.

Keep change order records for each contract individually and all contracts collectively.

Report to the Board at regularly scheduled Board meetings as requested relative to items 2, 3, and 4 above.

Avoid voluntary disclosure of these procedures to contractors.

The Board will review all change orders at selected regularly scheduled Board meetings to substantiate:

Contractual validity of change order scope of work.

Fair pricing.

Compliance with the above procedures.

Alief ISD



DATE ISSUED: 2/2/1987