HomeMy WebLinkAboutItem #6 Change Orders/6470-t-\
CHUBBUCK
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Memo
To: Honorable Mayor and City Council
From: Bridger Morrison
Date: July 1, 2022
Re: Project Change Order Discussion
Public Works Department
290 E. Linden Ave., Chubbuck, ID 83202
208.237.2430 — Fax 208.237.2409
www.CityofChubbuck.us
At the last Council Study Session, we discussed project change orders and the potential to authorize the
Mayor to approve some change orders under a certain amount or percentage of the contract amount.
During that discussion, it was asked if we could provide some information about the magnitude of
change orders we've had on previous projects. Attached is a summary of several projects the city has
completed over the last 8 years.
The attached summary separates the final change order from the other project change orders. As you
know, when changes are needed during construction, they are typically addressed with a change order.
However, if more or fewer items are needed that are already included in the itemized bid schedule,
direction is given to the contractor and they submit the quantity for the work that was actually
completed on the monthly pay applications. Therefore, at the end of the project, we complete a final
change order that corrects for the quantities that were actually installed. This is done mostly for
accounting purposes so that the contract amount matches what has actually been paid. Here is a
common example:
The construction plans may show replacing 10' of a driveway to match into the new road. During
construction, it's noticed that the driveway has an existing joint at 12'. Knowing that it would be
better to replace the driveway to the joint, the contractor is asked to replace 12' and they reflect
that in their pay application. The final change order would then show an increase in quantity for
driveway repair that had already been completed.
Often times, these quantity additions and subtractions equal out to some extent. Other times, there are
items where the bid quantity is just estimated, such as unsuitable material excavation. An estimate is
included in the bid schedule and the actual quantities are measured throughout the project. At the end,
the final quantity is reflected in the final change order.
For this reason, the attached information separates the typical project change orders from the final
change order where quantity adjustments are made. The information shows the project contract
amounts, the number of change orders, and the magnitude of the individual and combined change
orders.
J:lAdministration�Director�Memos to Council�Change Order Discussion Memo to Council 7-1-22.docx
Project Change Order Summary
7/1/2022
Project
Year
Original Contract
Amount
No. of Change Orders
(excluding final qty
adjustment)
Largest Single CO Amount
(excluding final qty
adjustment)
Percentage of
Largest Change
Order
Total C.O. Amount
(excluding final qty
adjustment)
Percentage of All Change
Orders (excluding final qty
adjustment)
Final C.O. Qty
Adjustment
Final Contract
Amount
Final Project Cost
Compared to
Original Bid
Whitaker Road Reconstruction
2015-2016
$
820,284.75
4
$
125,466.33
15%*
$
211,573.99
26%
$
101,520.40
$
1,133,379.14
138%
Stuart Additions Roadway Reconstruction
2016
$
2,198,888.88
9
$
25,168.44
1%
$
82,957.82
4%
$
161,700.29
$
2,443,546.99
111%
Country Acres Roadway Reconstruction
2017-2018
$
4,377,084.50
8
$
103,400.00
2%
$
129,453.59
3%
$
(548,756.30)
$
3,957,781.79
90%
Industry Way Reconstruction
2018
$
288,069.58
1
$
1,746.59
1%
$
1,746.59
1%
$
3,673.42
$
293,489.59
102%
Siphon Road Phase 1 & 2
2018-2019
$
3,658,559.90
7
$
65,934.83
2%
$
134,470.43
4%
$
2,739.29
$
3,795,769.62
104%
Hawthorne Road - Canal St. to Siphon
2019
$
402,733.60
2
$
5,992.20
1%
$
6,444.11
2%
$
42,747.44
$
451,925.15
112%
Sacajawea Water Line Extension
2021
$
503,300.50 1
2
$
39,955.61
8%
$
42,391.61 1
8%
$
(6,985.50)1
$
538,706.61
1 107%
Water Distribution System Improvements
2018-2019
$
2,343,824.50
8
$
83,524.47
4%
$
246,947.82 1
11%
$
(50,727.90)
$
2,540,044.42
108%
Well 6, tank and booster station
2018-2019
$
3,275,000.00
2
$
(35,247.00)
-1%
$
(60,445.00)
-2%
$
- 1
$
3,214,555.00
98%
* A single change order was used to cover several proposed change orders from the contractor