Change Order Preparation

Prepare COs using the guidelines in this chapter when contract revisions, additions, or deletions to the work are necessary. COs may be required due to:
  • an error or omission in the contract (consultant errors and omission refer to PEPS procedures)
  • differing site conditions
  • adding a specification
  • adding new items of work
  • resolving a dispute
  • changing the sequence of work or
  • other contract changes.
Submit COs requiring a design exception to the appropriate division (Design, Bridge, or Traffic Safety) for approval.
The DCO assists the AO with the CO description and reason coding, if necessary, and coordinates with the District or Construction Division (CST) FHWA Liaison to confirm federal participation. The AE and /or DCO also coordinates with the District Transportation Planning and Development (TP&D) Financial Manager to procure funding for CO's.
 Ensure that all COs are signed and sealed by the Area Engineer at minimum.
Show all information and quantities about the proposed change on the CO. A performance bond is required if the CO increases the contract cost above the $100,000 threshold.
Use the following steps
and
Form 2146
, “Change Order Checklist,” for CO preparation.
  1. For CO description, answer the following questions:
    • What is the CO for?
    • Why is the CO needed?
    • Where is the CO work being performed (alignment, station/offset, lane direction)?
    • How will the CO work be accomplished?
    • Are the costs verified and considered fair and reasonable?
    • Are there added/modified plan sheets?
    • Has environmental clearance been addressed?
    • Are there any TDLR requirements?
  2. Determine appropriate CO reason code(s)
    using
    Form 2146-RC
    .
  3. Determine appropriate function (zero dollar, overrun, time extensions, etc.)
  4. Determine whether or not time adjustments are required. If so, provide a description, including a breakdown of the days added.
    - Address time by one of the following methods:
    • 1) Add Time extension number and time in the box provided
    • 2) State in the narrative that no time in is added by this CO
    • 3) State in the narrative that time will be addressed later in the project when time impacts to the critical path are known.
    Methods 1 and 2 are preferred. Method 3 should not be normal practice. If time cannot be agreed on with the contractor upon execution of a CO, method 3 is acceptable. See
    “Additional
     Time Guidance” below.
  5. Before adding items in SiteManager, coordinate with the DCO to determine participation. Refer to the
    SiteManager Contract Administration User Manual
     for information on creating CO’s in SiteManager.
    NOTE: Participating and non-participating pay items must be on separate CO’s.
  6. Unique CO items will only be used when an appropriate bid code is not available.
  7. Under the New Contract Item tab, add a supplemental description in the following format, “Added by CO#X, description of Item”.
    When using a Unique Item also include the Unit of Measure (UOM) in the description.
  8. Copy the supplemental description, navigate to the CO Item tab, and paste the supplemental description into the CO Item Description field.
  9. Coordinate with DCO to determine funding category.
  10. CO signatures can be either written or electronic. Signatures must follow District, Construction Division and Executive Director
    "Signature of Authority,
     found on
    Contract Services Division
    webpage
    (internal access only)
    .
  11. If the CO involves third party funding, complete the funding notification sheet (Form
    2146-AFA
    ). Provide notice to the local government or other third party. Ensure that an authorized third-party representative signs the Third-Party Funding Notification Sheet, regardless of the CO amount. See “Advance Funding Agreements” under “Other Factors Affecting CO’s” for additional requirements.
    The dollar amount to be placed for Advance Funding Notification or Donation Agreement (third party funding) on the Form CO should be the same as the dollar amount on line 3(a) on the Form
    2146-AFA
    , which should be only the amount of contract items corresponding to the third party without the E&C and Indirect Costs.
    The contractor is not responsible for any delays the district may have in the obtaining a third party’s signature.
  12. Determine if the CO requires Form 1295. See
    "Texas Ethics Commission Form 1295", under "Other Factors Affecting CO's", for addtional requirements.