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Posted: May 05, 2023
Rapid City
Agenda Item Summary

Agenda Item Ref. #: PW050923-18

Agenda Item Title:

Authorize Amendment to the General Conditions for Public Works Construction to allow the Public Works Director to approve of interim change orders that decrease cost, do not affect cost, or increase cost no more than the limits set in SDCL 5-18B-19.

Origination Group:
Public Works Committee
Origination Meeting Date:
05/09/2023
City Council Hearing Date:
05/15/2023
Staff Contact:
Carla Cushman, Roger Hall
Agenda Item Summary:
Under the current procedure, the City Council approves of all change orders to Public Works contracts, even those that are no cost change orders or that reduce the total contract cost. This procedure of Council review delays the approval of interim change orders submitted during construction. This timeline results in delays for construction and progress payments to the contractors, and can cause higher bids from contractors who have to float the costs while the payments are processed. The City would like to simplify this procedure and streamline progress payments to our contractors on City projects. This agenda item would allow the Public Works Director to approve of interim change orders that reduce the total project cost, that do not affect cost at all, and that increase costs within the parameters laid out in SDCL 5-18B-19. That statute sets dollar amounts for change orders which may be approved for payment without having to rebid the change order work. All final change orders would still come to the City Council for review and approval. The following language is proposed to be added to Section 7.59 of the General Conditions: The Public Works Director may approve the following interim change orders: 1. Change orders that decrease the cost, 2. No cost change orders, and 3. Change orders that increase the total project cost, up to the limits of SDCL 5-18B-19, not to exceed a maximum of 15%, dependant on the contract amount. All final change orders shall be approved by the City Council.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

Attachments & Links to Download:

PW050923-18 Staff Memo 

Published in 2023 - PW Agenda Items

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