Policy 6.83 Approval of Construction Change Orders During the construction of public projects, change orders may be necessary due to unforeseen and time sensitive needs, which compel the District to respond swiftly and efficiently. Since change orders may increase the cost of construction, the budget for each public project in this District shall include an appropriate contingency fund (generally 10% unless otherwise determined) over the awarded amount. These contingency funds may be spent only in conformance with this policy and Board approval.(Gulassa) A "change order" is a written supplemental agreement to an awarded construction contract agreed upon by all parties to that contract subsequent to the execution of that original contract. The Chancellor or designee is authorized to approve construction project change orders as follows: 1. When the Board delegates authority to the Chancellor or designee to approve change orders that do not cumulatively exceed 10% of the original contract price. 2. A third party professional such as Project Architect of Record, and Construction Manager (CM) must review and certify a change order item initiated prior to Board approval. 3. Change orders must be approved or ratified by the Board prior to the action or performance of the work included in the change order, except in cases where the action or work is urgently necessary to: i. avoid delay or disruption to the construction process; ii. allow the District to conserve significantly District funds; iii. conserve project construction time; iv. permit continuance of existing class(es); v. avoid damage to life or property; or vi. address a situation that is otherwise considered an emergency under the Public Contract Code section 20654 wherein the matter cannot be deferred until the next Board of Trustees meeting, or no less than 60 days from time of approval. The Chancellor or designee must provide such changes and justifications in writing by the next meeting of the Board of Trustees for their ratification or approval, unless the changes have been approved prior to performance of the contract. The Board of Trustees shall receive written notice of all change order approvals meeting these criteria and all such change orders shall be calendared for Board ratification. Source of Law: Education Code § 81656 Public Contract Code §§ 20651, et seq. Approved by Board of Trustees: Revised: March 25, 2003 Revised: February 8, 2005 Revised by the Board of Trustees: Last printed 6/28/2016 7:30:00 PM