Chapter 27.30

CHANGES

Parts:

• 1 Definitions 2 Authority To Execute 3 General Requirements

Part 1

DEFINITIONS

Sections:

The members of a dispute review board will be selected as follows: The City will select a member, the Contractor will select a member and those two (2) members will select a third member. (Ord. 30540.)

No member serving on a dispute review board can have any relationship with the City, Contractor or the construction project that would prevent that member from performing his or her duties in an impartial and fair manner. (Ord. 30540.)

• A. The dispute review board is an advisory body that issues non-binding recommendations.

• B. The recommendations of the dispute review board are not admissible in court in any subsequent litigation.

• (Ord. 30540.)

• 27.30.030 Change order.

• 27.30.040 Directed change order.

27.30.050 Emergency change order.

This Chapter sets forth the requirements for using Change Orders, Directed Change Orders, and Emergency Change Orders. (Ord. 30308.)

The definitions in this Part 1 govern the application and interpretation of this Chapter. (Ord. 30308.)

"Change Order" means a written amendment to the Public Works Contract or work order, executed by both the City and Contractor, that does any of the following:

• A. Changes the scope of work in the contract;

T27:36

PROCUREMENT OF PUBLIC WORKS

§ 27.30.090

• B. Adjusts the time for completing all or a portion of the scope of work in the contract;

• C. Adjusts the Contractor's compensation to reflect any change in the scope of work or any time adjustment; or

• D. Makes any other changes arising from a change to the scope of work, a time adjustment or an adjustment to the Contractor's compensation.

(Ord. 30308.)

"Directed Change Order" means a written amendment to the Public Works Contract or work order that meets the requirements of a Change Order except that it is unilaterally issued by the City. (Ord. 30308.)

"Emergency Change Order" means a Change Order or a Directed Change Order that provides for the Contractor to perform work necessary for the immediate preservation and safety of persons and/or property at or around the construction site. (Ord. 30308.)

Part 2

AUTHORITY TO EXECUTE

Sections:

The Council, by resolution, may delegate to the Director the authority to approve and execute Change Orders and Directed Change Orders that the Director does not otherwise have authority to approve and execute.

(Ord. 30308.)

The Director has the authority to negotiate, execute and issue a Change Order or Directed Change Order that meets each of the following requirements:

• A. The Change Order or Directed Change Order amount, when aggregated with the amount of all previously issued Change Orders and Directed Change Orders for the Public Works Contract or work order, does not exceed the contingency; and

• B. If the Change Order or Directed Change Order alters the scope of work, it complies with the requirements of Section 27.30.100 or 27.30.110, whichever is applicable.

(Ords. 30308, 30686.)

Subject to there being a sufficient unexpended and unencumbered balance in a proper appropriation, the Director has the authority to negotiate, execute and issue an Emergency Change Order in any dollar amount.

(Ord. 30308.)

Part 3

• A. The Council reserves the authority to approve all Change Orders and Directed Change Orders except as delegated in this Part.

• B. The Director will execute, on behalf of the Council, all Change Orders and Directed Change Orders approved by the Council.

• (Ord. 30308.)

Sections:

27.30.110 Directed change orders. 27.30.120 Emergency change order. 27.30.130 Calculating amount.

27.30.140 Compensation reduction.

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SAN JOSÉ CODE

§ 27.30.100

A Change Order that modifies the scope of work must comply with either one of the following requirements:

• A. The modification is needed to properly complete the construction work as contemplated by the City at the time the City awarded the Public Works Contract or work order; or

• B. The modification meets each of the following requirements:

  1. Its cost is not excessive relative to the cost of the Public Works Project to which it is being added;

  2. It involves work on the same worksite as the Public Works Project to which it is being added and is related to that Public Works Project;

  3. It is the most efficient way of completing the work reflected in the modification;

  4. The Contractor has the expertise to perform the modification; and

  5. The Contractor will perform the modification at a reasonable cost.

(Ord. 30308.)

A Directed Change Order can only modify the scope of work as needed to properly complete the construction work as contemplated by the City at the time it awarded the Public Works Contract or work order.

(Ord. 30308.)

Emergency Change Orders can only require a Contractor to perform work needed to address an imminent threat to the safety of persons and property on or around the work site. (Ord. 30308.)

If a Change Order or Directed Change Order includes one or more items that reduce the Contrac-

tor's compensation, and one or more items that increase the Contractor's compensation, the amount of the Change Order or Directed Change Order is the net amount.

(Ord. 30308.)

Any reduction in compensation payable under a Public Works Contract or work order resulting from a Change Order or Directed Change Order will be treated as additional contingency, even if this results in the amount of the contingency exceeding the original contingency amount established for the Public Works Project.

(Ord. 30308.)