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Commissioners debate change‑order limits; consensus leans to 10% cap with $500,000 ceiling
Summary
Contracts staff told Klamath County commissioners that the existing change‑order rules may not be consistently followed and asked the board for direction on approval thresholds.
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Contracts and risk management staff brought the county’s change‑order and unit price overrun policy to the Sept. 16 administrative meeting, reporting confusion about whether the existing approval limits are being followed and asking for direction from the board.
Leslie Barlow Hunter said the policy language was revised last year to define amendments, unit price overruns and change orders, but that some departments may not be bringing changes to Contracts & Risk Management or the board as required. Current policy limits were described as $100,000 or 25% of the total project already approved by the board, whichever is less. Hunter said she had not seen the required contract council review for recent change orders and asked for guidance before taking the matter to the administrative advisory meeting.
Commissioners and staff discussed industry norms. Multiple participants suggested a percentage‑based threshold is more sensible than the existing language. One commissioner suggested a 10% threshold and either a cap or floor (for small projects) and another proposed a 10% threshold capped at $500,000. Points raised included that most construction projects include a 10% contingency and that a flat $100,000 allowance creates disproportionate flexibility for small projects and insufficient oversight for very large projects.
By consensus, commissioners expressed support for changing the policy to a 10% threshold with an upper cap (discussed as $500,000) and applying the standard across departments. Staff were directed to draft proposed language for the policy change and bring it back for formal adoption; there was no formal ordinance or immediate vote to amend the policy at the meeting.
Hunter also recommended improving compliance with the Contracts & Risk Management review process so change orders and unit price overruns come through the proper channels.

