Section 2: Change Order Approval Authority

CO approval authority is based on the
Standard Operating Procedure No. 01-22 (SOP)
showing that the District Engineers (DEs) will delegate signature authority in accordance with policy. When signed by the designated official, the CO is approved.
Adhere to district policy and procedures in the review and approval of COs that may be approved at the district level.
Submit CO's requirement Chief Engineer approval and signature through CST Construction Section Director prior to completion.

TxDIP
 Federal-Aid Projects

All TxDIPs S&O Plans are project specific and will dictate the requirements for TxDIP Change Orders. All TxDIP projects and Statewide Management have a
S&O (Stewardship and Oversight)
plan
S&O Plans may state the coordination, communication, and review/approval requirements for COs on TxDIP project on Major, Minor, or all change orders. If SO states approval/review, contact your FHWA Area Engineer. FHWA does not require notification, review, or approval of change orders on TxDIP projects unless specifically stated in the S&O Plan.
COs on TxDIPs are categorized as either major or minor, as defined in the table below. Confirm verbal approval with written correspondence and retain in project files.
Major/Minor Change Orders for FHWA Oversight Projects:
  • Major
    • The cost of the contract >20% of the original cost or by >5% million (both positive and negative).
    • Changes in contract time 30 days or more (both positive and negative).
    • Changes to the contract dates tied to Incentives/Disincentives, Liquidated Damages (LDs), or Milestones due to extraordinary circumstances
    • Changes beyond the previously authorized scope of work or changes that require work beyond the project's boundaries (limits) which may require addtional environmental review or clearance. These changes may also require a Public Interest Finding(PIF)
  • Minor
    • Everything not described above.

Non-TxDIP Federal-Aid Projects

TxDOT assumes all projects oversight responsibilites for all Federal-Funded projects unless otherwise stated in the TxDIP SO Plan, or 2015 Stewardship and Oversight aggreement. Use the
FHWA Contract Administration Core Curriculum (CACC)
, related federal regulations, and Deparment policy to determine federal participation for TEs and COs.
Federal Participation
The Federal Project Authorization and Agreement (FPAA) must reflect accurate project limits. For COs that change project limits, include detailed drawings showing the new project limits.
Federal-aid funds may be used to participate in COs that all:
  • in conformance with federal and state laws
  • allowed by the CACC and federal regulation.
  • in compliance with an FHWA policy or procedure.
Federal-aid participation may be granted if all:
  • he work on the CO did not adversely affect the public.
  • the Department acted in good faith and did not willfully violate a federal requirement.
  • the work was performed in full compliance with federal and state laws.
  • the federal participation does not exceed the cost that would have been incurred had full compliance been achieved.
  • the work was performed according to the contract.
Federal Non-Participation
Examples of COs not eligible for the federal participation are:
  • work performed prior to the "effective date" provided in the Federal Letter of Authorization
  • work performed outisde the project limits and/or involves a significant change in scope, unless the additional work is an emegergency, is to provide a transition at the existing project limits and is covered by a CST-reviewed and concurrence provided Public Interest Finding (PIF) determination.
  • routine maintenance items that are the responsibility of either the contractor or the Department. Examples: graffiti removal, culvert cleaning, worksite maintenance, etc
Examples of individual contract items not eligible for federal participation are
  • work performed by state forces or other "non-competitively bid" work.
  • significant changes in contract scope, unless covered under an approved Public Interest Finding (PIF) determination.
  • completed work that is determined not to be in substantial compliance with the contract.
  • materials that do not meet specifications (Federal participation may be allowed for the reduced price of materials determined to serve the intended purpose of the contract. Accept for federal participation minor deviations at the full price of materials).
  • additional time or cost caused by un-acquired Right of Way (ROW) or incomplete utility adjustments.
  • purchase of unused contractor materials placed in state stock (If the material is subsequently used on another federal-aid project, charge the material cost to the project.);
  • negotiated prices that are determined to be unjustified.
  • work done for the convenience of the contractor (may be eligible for participation depending on specifics and adequate justification)
  • unaudited claim settlements, unless the audit requirement is waived in writing.
  • contract work paid through another means, such as Incidental Construction.
  • anything involving rework.
  • State-furnished materials not included in the original contract and not supported by PIF.

State Funded Projects

COs on state funded projects are approved in accordance with the approval authority outlined in the
Standard Operating Procedure No. 01-22 (SOP)
. CO work may not begin until either written or verbal approval is obtained. (Written documentation is required to follow up verbal approval.) Signatures must follow District, Construction Division, and Executive Director Signature authority found on Contract Services Division (CSD) webpage.

Extending or Adding Project Limits to the Contract

Districts may extend or add project limits if all of the following conditions are met.
  • Transition or tie-in work is less than 1,500 feet
  • The work has a value of less than $50,000
  • No changes made to unit bid prices
  • The scope of work remains the same
  • The funding category remains the same
  • No new control section jobs (CSJ) are required
  • No additional environmental clearance is necessary
If all the above conditions are not met, a CO must be submitted for DE approval, regardless of the amount. Be sure to maintain the integrity of the competitive bid process.
Use the following procedure to add CSJs to the contract through a contract CO,
How to Add CSJ’s to the Contract (State Funded Projects Only):
  • District
     – Notifies CST, DES, and the Financial Management Division (FIN) there is a need to add a new CSJ to a project, Assigns CSJ number, Updates the “Remarks” field on the P1 screen in the Design and Construction Information System (DCIS).
  • CST
     – Updates SiteManager
  • DES
     – Updates “Contract CSJ” field in DCIS
  • FIN
     – Adds the CSJ to DIMS upon receipt of the CO.

Change Order Reason Codes

Form 2146-RC
, "Change Order Reason Code", provides a current list of reason codes to choose from. Non-participating codes are indicated with an asterisk by the reason code number. Other reason codes may be associated with federally non-partifcipating CO depending on the circumstances for the CO.