Palm Beach board considers higher change‑order thresholds, faster approval to speed projects; some members urge tighter oversight

District staff asked the board Nov. 7 to approve a package of updates to construction and procurement policies aimed at speeding project delivery, clarifying committee roles and aligning retainage rules with new state law.

Mr. Joe Sanchez, chief operating officer, and construction staff described five policy areas: (1) CORK (Construction Oversight Review Committee) composition and duties; (2) repeal of an HVAC policy now covered by the Florida Building Code; (3) revised change‑order procedures and delegated approval authority to meet a new state 35‑day requirement; (4) clearer rules for use of construction and project contingencies; and (5) updated retainage provisions to align with Florida Statutes.

The change‑order policy is the most contested proposal. Staff recommended raising per‑change limits (for example, raising some delegated thresholds from $100,000 to $200,000) and setting aggregate caps tied to contract size (for example, a $500,000 cumulative threshold for projects under $7.5 million and $1 million for larger projects). The district said the numbers are lower than some consulting recommendations and are intended to reduce delay: staff reported that only eight of 182 change orders in the prior year would have shifted from board review to staff approval under the proposed thresholds.

Supporters argued that higher delegated limits and streamlined documentation will speed payments to contractors and make the district a more attractive owner to local firms. Opponents cautioned that the board has a fiduciary duty to preserve taxpayer oversight of major dollar changes and asked for faster reporting and specific procedures for preapproval of large changes. Chair Brill and others asked staff to ensure that CORK continues to review safety and school security projects in closed sessions as needed; staff agreed that security‑sensitive items may be handled outside the public agenda when appropriate.

Staff also proposed modest composition changes to CORK to allow more flexible appointments (including at‑large members) and to remove redundant general counsel sign‑off on routine, dollar‑only change orders so counsel can focus on contract language changes. The retainage proposal aligns the district’s policy with recent changes in Florida law on how much money may be withheld on construction contracts and how retainage is released.

Staff said they will bring the revised policies through the policy development cycle with a development reading Dec. 10 and a proposed adoption Jan. 21. No immediate board vote was taken on the policy package; board members asked for follow‑up materials on historical change‑order timing and examples of the types of changes that would fall under the delegated limits.