HomeMy WebLinkAbout09-116 - ADMIN Resolution - City Council - 2009/09/08RESOLUTION NO. 09-116
RESOLUTION ADOPTING CHANGE ORDER POLICY
WHEREAS, to expedite the approval of change orders that are within the City Manager's
purchasing authority, it is in the best interest of the City to update a Change Order Approval process;
and
WHEREAS, the City approved Resolution 87-122, by Council on September 8, 1987
authorizing the City Manager to administratively approve change orders with limitations; and
WHEREAS, in accordance with City Charter, the City Manager is the chief purchasing agent
of the City. The Charter also states that City contracts must be made in compliance with State Law;
and,
WHEREAS, State Law has increased the level of purchasing limits and the City Council is
interested in increasing the level allowed for the City Manager to administratively approve change
orders with limitations;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis
Park, Minnesota to rescind Resolution 87-122 and adopt the following policy:
1. PURPOSE
The purpose of this policy is to update the procedure to process change orders to
construction and public improvement contracts.
2. DEFINITIONS
Change Order: A written amendment to a construction or public improvement
contract that is within the scope of the original contract.
Supplemental Agreement: A written amendment to a construction or public
improvement contract changing the scope of the original contract.
3. BACKGROUND
Change orders in construction contracts are common place. The design process cannot
economically provide sufficient detail to completely identify all items of construction
work. There is no `typical' change order amount; however, there are generally accepted
percentages (as compared to the total construction contract amount).
Change orders are the result of the following conditions:
• Owner Requested: Work desired that was not clearly called for in the original
contract documents and could result in adding to or removing from a project or
contract.
Resolution No. 09-116 -2-
• Changed Condition — Foreseen Conditions: Work involving existing conditions or
construction that was not clearly shown or identified in the original contract
documents that directly affect construction work methods, material/labor costs or
time.
• Changed Condition — Unforeseen Conditions: Work that could not have been
reasonably identified by the designer in the initial design phase.
• Code Change: Construction codes have changed since the design was completed.
• Design Deficiency — Added Value: Work that would have resulted in a higher bid
price had the design detail or drawing been correct in the contract documents.
• Design Deficiency — No Added Value: Work that clearly results from a design
deficiency, error, or omission, but would not have resulted in an increased bid price
if the contract documents were correct.
4. PROCEDURE
'ihange orders require the following approval:
,) Upon verification that appropriate and prudent funding is available and/or
appropriate reductions in the contract are in the best interest of the City, the City
Manager or designee may approve change orders under $100,000. The City
Manager may not approve change orders for a contract that cumulatively exceeds
$100,000. The City Manager may not approve supplemental agreements and;
• May not issue change orders which materially change the scope of the contract,
including additional projects, and;
• The City Manager or designee shall report time extensions to the City Council; and
• City Council approval is required for all other change orders and for all supplemental
agreements.
Review
dministration
City Manag r
Attest:
Y7 ct_.:4_e_ei
City Clerk
pted by the City Council September 8, 2009
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