TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 2, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authorization to revise the Contract Change Order Policy for Capital Improvement Construction Projects (As Revised)
Body
Dear Sir:
On November 15, 2012, the Board of Commissioners authorized the inclusion of a 5% contingency line item in construction contracts and increased the approval authority of the Director of Engineering from $10,000 to $100,000 per change. This authority did not include the Director of Maintenance and Operations, as the types of contracts managed by Maintenance and Operations at that time were able to be administered within estimated values.
Currently, the Maintenance and Operations Department manages construction contracts similar to those of the Engineering Department in overall size and scope. Therefore, it is recommended that the change order policy be revised to include Maintenance and Operations Capital Improvement construction projects. Specifically, authorization is requested to include a 5% contingency line item in each Maintenance and Operations construction contract for errors and omissions, and unforeseen circumstances only. All changes in scope will continue to require Board approval.
Consistent with the Director of Engineering’s approval authority, it is further recommended that the approval authority limit of the Director of Maintenance and Operations be increased from the current $10,000 limit to $100,000 per change. Reporting requirements will remain unchanged to ensure full transparency to the Board and the public.
These changes will provide staff with the means to make timely field decisions and keep projects on schedule.
It is hereby recommended that the Board of Commissioners authorize the Director of Maintenance and Operations and the Director of Procurement and Materials Management to execute contract change orders as outlined herein.
It is also recommended that the Resolution adopted by the Board on May 7, 1998, which authorized the Chief of Maintenance and Operations to approve certain change orders, be amended to authorize the Director of Maintenance and Operations to approve construction project change orders up to $100,000 per change, until such time as the 5% contingency included in each such contract is exhausted.
Requested, Pinakin V. Desai, Acting Director of Maintenance and Operations, JBS:BML:JR:MM
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 2, 2026
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