Changes in the Work

General
The construction industry recognizes it is unrealistic to expect a construction project to be built without deviating from the project plans. Project designers should be diligent and exercise due care in developing the plans. However, there are many peculiarities (e.g., unforeseen site conditions, utility conflicts, changes in the geology, etc.) that can arise during construction, and every project should anticipate the potential need for changes. Only the construction engineer is in a position to judge the adequacy of project designs and respond to needed changes.
For a project involving an agreement between a LG and TxDOT, TxDOT must formally concur with proposed major extra work or major changes in the contract plans and provisions before work begins. However, when emergency or unusual conditions justify, TxDOT may give advance verbal concurrence and formally confirm as soon as practical. Non-major changes and non-major extra work also require formal concurrence. However, such concurrence may be given retroactively at TxDOT's discretion. The
LGPM Guide
provides a definition of a major change.
Early coordination between the LG and TxDOT district is essential in the review of change orders. There are five basic components TxDOT will consider during its review of change orders, which are described in detail in the
LGPM Guide
. These considerations are:
  1. impact on the original “scope of the work;”
  2. eligibility;
  3. consultant design errors;
  4. basis of payment; and
  5. time extensions.
Federal Requirements
  1. 23 CFR §635.120
    – Requires, for design-bid-build projects, all changes to federal-aid highway projects must be approved by the FHWA. TxDOT assumes this responsibility for projects administered under the provisions of the TxDOT/FHWA Stewardship/Oversight Agreement for Design and Construction. The bid documents should include language describing administration of change orders.
  2. For design-build projects, since design and construction are performed under the same contract, it is not anticipated that change orders for plan errors or omissions would be approved. (This is a matter of FHWA policy. See FHWA’s
    Contract Administration Core Curriculum Participant’s Manual
    ). However, TxDOT or a LG may direct changes to a design-build contract after work begins, in which case a change order may be appropriate.
State Requirements
  1. Texas Local Government Code §252.048
    – Requires that:
    1. the governing body of the municipality may approve changes;
    2. the total contact price may not be increased unless there are available funds;
    3. the original contract price may not be increased by more than 25 percent; and
    4. the original contract price may not be decreased by more than 25 percent without the consent of the contractor.
  2. Texas Local Government Code §262.031
    – Provides that the county commissioner’s court has authority to make changes. The total contract cost may not be increased unless there are available funds.
  3. Texas Local Government Code §271.060
    – Allows a governing body to approve change orders if there are available funds.
Required Practices
The
LGPM Guide
provides a detailed description of the required practices for requesting and processing change orders. In general, the LG must get TxDOT approval of change orders.