QUALITY ASSURANCE REVIEW

PLAN FOR

CHANGE ORDER POLICY

 

May 1, 2004

 

Measurement Criteria

            1.  CFR 635

            2.  Ohio Revised Code Section 5514

            3.  Construction & Material Specification Sections 109.04, 109.05

            4.  Standard Procedure 510-010(SP) and Policy 27-010(P)

 

Monitoring Method

1.  Interview with District Construction Engineer and Project Engineer with attached QAR on Change Order Policy and Standard Procedure.

2.  Visit at least one Project(s) selected for size, Federal participation, and 50 to 95% complete and review in accordance with attached QAR on Change Order Policy and Standard Procedure.

 

Monitoring Frequency

            1.  All Districts will be reviewed every year

 

Results Reported

1.  Written report to the District

2.  Written QAR summary report published annually

 

Result Shared

            Written report to:

            1.  Deputy Director Division of Construction Management

            2.  Administrator, Office of Construction Administration

            3.  State Construction Engineer

4.  FHWA

            5.  District Construction Engineer                                                                          

            6.  Office of Quality   

 

Compliance Tracking

1.  QAR file in the Office of Construction Administration

 

Compliance Follow-up

            1.  Yearly review of District performance until improved to desired level          

            2.  Review and revision of plan if warranted    

 

 

 

 

Deputy Director Signature _______________________________________Date ____________


 

QAR

Change Order Policy and Standard Procedure

 

 

District:__________                             Contractor:__________________________               Date:____________

 

Project:__________                            Project Engineer:_____________________                C/R/S:___________

 

Change Order

       Change Order used for contract quantity and price adjustment

o       If so, state the purpose of the Change Order

 

 

       Change Order used for lump sum adjustments of contract payments

o       If so, state the purpose of the lump sum adjustment

 

 

       Change Order involved in a change in contract specification

o       If so, state the nature of the change

 

 

Extra Work Change Order

       Extra Work Change Order (EWCO) used.  The EWCO was used for the which of the following

o       An increase in a bid item quantity that results in a total payment increase for that bid item that exceeds of the Contract Limits.

o       The addition of new items of work.

o       The payment of settlements of disputes and claim awards, also termed an equitable adjustment. These disputes and claims are due to changed conditions, alteration of the plans or specifications, Department caused delays, utility delays, delays caused by the action of a Local Government, and suspension of work under Section 104.02 (b) (C&MS 1997) or 104.02.C. (C&MS 2002). 

o       Project termination cost when terminated under Section 108.031(C&MS 1997) or 108.09 (C&MS 2002) for the convenience of the Department.

o       Implementation of a Value Engineering Change Proposal (VECP) and payment of the Contractor’s share of the VECP savings.

o       Payments for erosion control items that exceed the encumbered amount will be made by an EWCO using the proposal specified unit prices. The proposal specified unit prices are fixed for the contract and may not be negotiated or adjusted for inflation or claimed changed condition.

o       Other _____________________________________________________________________

 

Extra Work Negotiated Prices

       Extra Work negotiated price used.  The acceptable method to justify negotiated price was

o       Use of Contract bid prices

o       Use of the average unit prices awarded for the item of work as reported in the “Summary of Contracts Awarded”

o       Use of comparative prices bids on different projects found by a query of CMS conducted by the District

o       Use of a cost analysis of labor, equipment, and material with markups allowed under Section 109.04 (C&MS 1997) or Section 109.05 (C&MS 2002)

 

Force Account

       Force Account used when agreement can not be reached on prices to perform Extra Work.

o       The allowed compensation for Force Account shall be as provided in Section 109.04 (C&MS 1997) or 109.05 (C&MS 2002) and Change Order Appendix A.

o       The District monitored Force Account work as follows

·        The project will document daily number of workers by work classification and pieces of equipment that they observe working on the Force Account.

·        The Project and Contractor will document on a Daily Force Account Record the labor and equipment used on the Force Account.  Each Daily Force Account Record will be signed by the Project and Contractor personnel

 

Other

       Other pricing methods used on EWCO.

o       Third party billing within the limits allowed

o       Proposal specified unit prices for erosion control.

o       Awards made by the Deputy Directors Board and the Director’s Claim Board.

 

Approval Authority

       District Change Order approval process required two different signatures for approval authority

o       One or both signatures are by a Registered Professional Engineer

       Change Order exceeded Contract Limits and State Controlling Board approval was required

o       Approval was not entered into CMS before State Controlling Board approval is granted

o       District attached the executed State Controlling Board approval to the EWCO on file

       Change Order exceeded Contract Limits and State Controlling Board approval was not required as per the emergency process specified in the Change Order procedure.

o       EWCO was approved without State Controlling Board approval

o       EWCO was designated “Emergency” in CMS

 

Major Changes – Federal Highway Administration (FHWA) oversight project only

       Project Change Order meets FHWA requirements of a major change

       District consulted with the FHWA Programs Engineer about the major change

       District has documentation of FHWA consultation in the District project file

 

Emergency Authority to Proceed with Work – if necessary

       Granted by DCE under specified conditions in Change Order Policy, or

       Granted by DDD under specified conditions in Change Order Policy

 

       The Emergency Permission to Proceed with Work form is adequately completed and signed

       The Emergency Permission to Proceed with Work form is copied to everyone on the form and kept in the District project file

 

EWCO with a pay item in excess of Contract Limits must be submitted to the State Controlling Board for approval – if necessary

       The District forwarded the Office of Construction Administration a copy of the EWCO and a draft explanation appropriate for the State Controlling Board request

       EWCO was not divided into inappropriate pay items for the purpose of avoiding State Controlling Board review

       The District forwarded EWCO’s that require Emergency Permission or increased quantities due to Final Measurements to the Office of Construction Administration for quarterly reporting to the State Controlling Board.                                                                         

 

Office of Construction Administration

 

Name:_________________________