DEPARTMENT OF PUBLIC WORKS: CHANGE ORDER MANAGEMENT
All change orders for design and construction in excess of $10,000 go through a multiple review process that takes excessive time and increases costs to the City. The review for a change order includes a review by the user staff, a review by the Department of Audits, and a review by the Change Order Review Committee, Board of Estimates approval, and amount signatures by four layers of City staff. The threshold has not been increased in at least 20 years.
Reconsider the appropriate financial threshold for change order reviews.
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Increasing the change order review threshold would decrease the administrative work time spent reviewing and processing change orders and potentially increase the City’s pool of bidders and companies that now choose not to propose or bid due to the onerous change order process will propose or bid giving the City more competitive proposals and bids.