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NDDOT reviews change‑order standards: when changes are warranted, documentation and approval process
Summary
An NDDOT presenter outlined when change orders are warranted, required elements of change‑order documentation (detailed explanation, project engineer cost justification, supporting documentation and approval signatures), approval thresholds for DOT and federally funded projects, and best practices for negotiation and cost justification.
Eric, presenting for NDDOT, walked meeting attendees through when change orders are warranted, what they must include and the approval process and thresholds for DOT and locally funded projects.
Eric said change orders are written orders documenting contract revisions for work within the original contract scope and noted every change order must state whether an adjustment to contract time is included. He emphasized that work covered by a change order should be approved before the additional work begins, and that exceptions for emergency work should be documented and later reconciled with force-account tracking.
On when change orders are warranted, Eric listed typical examples: design changes (errors or omissions), unknown subsurface conditions, specification changes when the original specification cannot be met, and contract-administration issues such as haul-road costs not covered in the proposal. He said noncompensable delays, minor quantity overruns for non-major items and changes in supplier costs after bidding typically do not warrant a change order.
Eric outlined the four elements that must accompany a change order: a detailed explanation of the change; a project-engineer cost justification showing how the negotiated price was determined; supporting documentation (contractor quotes, subcontractor agreements, blue-book equipment rates, invoices); and required approval signatures. "Typically, our cost justifications should be longer than 3 or 4 sentences, should have exhibits in it," he said, and described using force-account comparisons per section 10903(e) as a standard check on negotiated prices.
He reviewed approval authorities and thresholds: approval levels depend on cumulative costs and contract-time extensions; local‑agency‑funded work that contains no federal funds does not require DOT approval but the DOT asked to be informed; projects with mixed funding must follow DOT approval rules. Eric warned local agencies to check whether federal funds remain available before assuming federal participation for change-order costs.
Eric closed by urging early notification of potential change orders to higher authorities, timely and clear write-ups, and documentation that prevents later contractor claims. He answered participant questions about where to obtain blue-book equipment rates and the department contacts for federal-funds availability.
