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Mandan commissioners adopt updated change-order policy with sliding-scale caps
Summary
The Mandan Board of City Commissioners on July 21 adopted a revised engineering department change-order policy that sets cumulative percentage caps tied to project cost and keeps a statutory 20% ceiling; commissioners asked staff to add reporting on cumulative change-order totals.
The Mandan Board of City Commissioners voted to adopt an updated change-order policy for the engineering department on July 21 after a staff presentation and brief questions.
City staff presenter Riley told commissioners the 2009 policy was restrictive for modern project timelines and costs and proposed a sliding, percentage-based approval scale tied to total project cost. Riley said the approach limits engineer approval by cumulative percentage rather than a single-dollar threshold. "So, taking, for example, 1000000 dollar project, 5% of that project is $50,000," Riley said, explaining how the cumulative cap would work.
The policy as explained ties approval authority to a sliding scale: projects up to $1 million would use a 5% cap, projects between $1 million and $2.5 million a 4% cap, and projects above that a 3% cap; Riley also stated the policy cites a statutory cap of 20% on all change orders. A commissioner asked whether multiple small change orders under the percentage cap are tallied cumulatively; Riley confirmed they are and said staff will track cumulative totals internally and can involve finance staff for oversight.
Commissioner Sjoberg moved to adopt the policy and Commissioner Bulovic seconded the motion. On roll call, affirmative votes were recorded from Commissioners Sjoberg, Heinshawn, Braun, Bulovic and Mayor Freylich; the motion carried. The commission and staff discussed adding language or reporting procedures so commissioners are informed of cumulative change-order amounts on projects as they accrue.
Why it matters: the change lets city engineers approve a larger absolute dollar amount on larger projects while preserving percentagebased limits and an overall statutory ceiling, which changes how frequently the full commission must act on contractor change orders. The policy also acknowledges use of DOT templates for certain consultant projects and keeps an internal tracking requirement for cumulative change orders.
Looking ahead: staff indicated they will work with finance to ensure cumulative totals are tracked and will consider adding explicit reporting language to the policy before wider implementation.
