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Housing Policy --- Section 2-2

Change Order

Change Orders are the formal process for handling proposed changes to the scope due to unforeseen conditions after the construction contract has been executed and the project has started construction.  Change Orders shall be minimized and used appropriately and provide information on the proposed changes, the impact of the changes to the contractor’s sum and the adjustment, if any, to the time needed to complete the contract work.  All Change Order must be submitted as Requests (COR) in writing prior to any work being done or it will be rejected.   All Change Orders are subject to approval by DND, based on justification of need and overall construction costs.  If at any time the cumulative effect of change orders or the Project cost overruns causes the construction contingency to fall below 50% of its original amount, the City shall have the right to suspend further advances of the City’s loan proceeds until the Developer has demonstrated to the City’s satisfaction additional sources of funds sufficient to guaranty completion of the Project.    

Change Order Types - DND will consider for approval only the CO types listed below:

  • Non Design-related Change Order: These change orders include unforeseen conditions, code-related issues, field conditions and building inspector changes.

  • Design-related Change Order: These change orders include additions or subtractions of the scope of work and/or unincorporated elements that affect the appearance, layout, functionality, dimensions, and/or quality of the project.

  • Emergency Field Condition Change Orders: These change orders include any condition that causes an emergency situation where safety or other immediate losses may occur.  Advanced approval is not required, although DND must be notified immediately, with a written submission to follow.

  • Donation/Contribution Change Orders: These change orders include changes resulting from the donation of materials or labor. All donations and contributions must be processed as a change order. Any savings realized will be added to the hard cost contingency.

  • Betterments:  Owner requested changes in the scope of work during construction that are upgrades in equipment and materials beyond the base scope of work within the contract.  For Betterments to be considered, the project must draw upon or pledge in writing available Developer Fee, or committed outside funding sources.  If there are project cost savings, the project can use “developer” portion of savings for Betterment payment or reimbursement.

  • Credits: Modifications in the scope of work during construction, which reduces the cost of the scope or creates savings in the contract budget.  Credits must be submitted as COR immediately once they have been identified and discussed with the CS. Delay in the submission of a credit COR may result in the delay in approval of other pending CORs.

 Change Order Submission

  • Change Order Requests (CORs) must be prepared and signed by the contractor and include the following:
    • Proposed changes to the contractor’s scope of work;
    • Dollar amount of adjustment, if any, to the contractor’s sum;
    • The adjustment, if any, in time needed to perform the proposed work and complete the contract;
    • Subcontractor Invoices must be attached to all COR’s;
    • Any COR that exceed $10,000 must be accompanied by a written explanation, prepared by the project architect regarding the exact reasons for the COR; and
    • No work shall commence prior to approval of the COR.

  • As CORs are approved, they may be packaged together and processed as one Change Order. Each Change Order package should be prepared by the Project Architect or Project Developer. The package must include the AIA Standard Document G701, the approved Change Order Request(s) and associated back up.  The Change Order package must be signed by the Developer (or Developer’s representative), Project Architect, General Contractor and DND Construction Specialist and Development Officer, and state their agreement upon all of the following:
    • Changes to the Work
    • The amount of the adjustment, if any, in the Contract Sum; and
    • The extent of the adjustment, if any, in the Contract Time

 



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