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HomeMy WebLinkAboutResolutions - No. 85-173RESOLUTION NO. 85-173 RESOLUTION ADOPTING A FORMAL POLICY AND rtux;uuxx; TO GOVERN CONTRACT CHANGE ORDERS RESOLVED, that the City Council of the City of Lodi does hereby adopt a formal policy and procedure to govern contract change orders as shown on Exhibit "A" attached hereto and thereby made a part hereof. Date: December 4, 1985 I hereby certify that Resolution No. 85-173 was passed and adopted by the City Council of the City of Lodi in a Regular Meeting held December 4, 1985 by the following vote: AYES: Council Members - Olson, Pinkerton, Reid, Snider and Hinchman (Mayor) NOES: Council Members - None ABSENT: Council Members - None ABSTAIN: Council Members - None &La, ALICE M. REIMCHE City Clerk RECOMMENDED POLICY & PROCEDURES CONTRACT CHANGE ORDERS Purpose Exhibit "A" To establish formal policy and procedures to govern contract change orders. Policy . Definition As used in this policy, a change order shall mean a written order to change the amount of work to be done on a formal contract awarded by the City Council which is anticipated to result in an increase or decrease in contract price. Change orders may not increase or change the scope of the project specified in the contract plans and specifications approved by the City Council. . Department Head Authority The responsible Department Head shall be authorized to approve and issue individual change orders to increase the contract price up to $5,000 or 10% of the formal contract, whichever is larger. The aggregate total of all change orders to each contract may not exceed $25,000. . Authority of the City Manager The City Manager may authorize change orders in excess of 1O% of the formal contract or in excess of $25,000 to avoid extraordinary delay of work or to protect the safety of human life and the environment at or near the work site. The City Manager shall report the change orders and the amounts to the City Council at its next regular meeting. Procedure Written change orders shall be submitted to the Finance Department to be added to the construction contract and encumbered against the specific appropriation prior to payment to the contractor. In the event unencumbered funds are not available a special allocation must be processed to increase the applicable appropriation.