AASHTOWare Change Order Guidance

This guidance supersedes Contract Administration Manual 5-591.350

Change Order Level 1

A CO Level 1 is required to:

·  Document the basis of acceptance and to adjust the Contract Unit Price of unacceptable Work allowed to remain in place in accordance with 1512.1.

·  Document substitution of materials per 1605.

·  Document changes resulting from adoption of new standards, new instructional memoranda, or recommendations from MnDOT Central Office

·  Document changes in the original (P) quantity due to re-measurement or re-computation in accordance with 1901.1.

·  Document substitution of methods or equipment at the Contractor’s request in accordance with 1805.

·  Document 1905 Compensation for Eliminated Items

·  Document incentive payments/disincentive assessments to the Contractor for pavement ride quality, quality standards, or early completion as provided in the Contract.

·  Document final pay quantities for landscape items

·  Document contract predetermined prices.

Signatures Required for CO Level 1:

1)  MnDOT Project Engineer

2)  Local Agency if funding Change, wholly or in part

3)  Contractor (Optional)

4)  Consultant Contract Administrator (can only recommend approval), if applicable

Contract Change Unit is available for a cursory review of a Change Order level 1 at Engineer’s request.

CO level 1s are not considered amendments to the contract, therefore they do not require OCIC or Department of Administration approval.

CO level 1s will not be “self-encumbering” These will be treated like any other contract overrun and be encumbered when needed. Finance requires a further explanation on any encumbrance over $500,000, as to what specific cost overruns are included.

Design Build CO level 1 will require a separate encumbrance, however CCU will take care of that for you.

Process:

  1. Engineer enters Change Order level 1 in AASHTOWARE including explanations for Issue, Resolution, Entitlement, Impact, Cost and Payment. This may include adding items if required to “New Item “ tab.
  2. Engineer approves in AASHTOWARE
  3. Engineer emails signed change order level 1 to CCU,
  4. CCU approves in AASHTOWARE, and attaches executed document.
  5. CCU emails Engineer to notify of approved Change Order level 1.

Change Order Level 2

Note: Similar to Work Order – Minor Extra Work and Supplemental Agreement.

A CO Level 2 is required to:

  1. Direct the Contractor to perform work in accordance with 1402.
  2. Waive Liquidated Damages in accordance with 1807.2 Waiver of Liquidated Damages
  3. Revise the method of measurement per 1901.11 Other Basis of Measurement
  4. Alterations of special provisions and specifications.
  5. Experimental work or procedures. (requires approval by appropriate specialty office)
  6. Document Changed Work.
  7. Revisions of the structural section above the sub-base.
  8. Alterations in the scope of the contract or character of the work.
  9. Major revisions in geometric design of the mainline roadway, ramps, frontage roads, or crossovers and additions or deletions.
  10. Additions, deletions, or relocations of bridges or other structures that affect the functional scope and intent of the approved design.
  11. Settlement of Claims / release of liability.
  12. Change of start date, completion date or contract time.

Signatures Required for CO Level 2:

1)  MnDOT Project Engineer

2)  Contractor

3)  Local Agency, if using local funds or under local jurisdiction.

4)  Commissioner of Transportation (by OCIC with delegation of authority)

5)  Department of Administration (by MnDOT Office of Contract Management with delegation of authority)

6)  Consultant Contract Administrator (can only recommend approval), if applicable

Change Order level 2 are considered amendments to the contract.

Change Order level 2s will be self-encumbering (ie no separate encumbrance will be needed)

Justification letter/recommendation letters are no longer required for Change Orders. However, in the case that more information is needed in to approve document, a recommendation letter can be as requested by ADE, Contract Change Unit, OCIC (signing for Commissioner of Transportation), or Contract Management (signing for the Commissioner of Administration). A recommendation letter can address entitlement, cost justification, risk or issues and explanations not included in the agreement.

Recommendation letters should be written by Construction Project Engineer to ADE, OCIC, or requesting office (which may include FHWA).

Process:

  1. Engineer enters Change Order level 2 in AASHTOWARE including explanations for Issue, resolution, Entitlement, Impact, Cost and payment. Add items if required.
  2. Engineer emails Draft for language approval and cost review
  3. CCU approves language and recommends costs
  4. Engineer gets signatures from Contractor
  5. Engineer approves Change Order level 2 in AASHTOWARE
  6. Engineer emails signed document to CCU
  7. CCU processes Change Order level 2 for OCIC, Finance and Contract Management approval.
  8. CCU approves Change Order level 2 and notifies Engineer of full execution.

Discussion on ADE approvals

Approval by ADE is no longer required by Office of Construction and Innovative Contracting. Communication between District Construction Staff and Assistant District Engineer for Construction will be up to the decision and enforcement of that district.

We will recommend copying the ADE when agreement is signed by contractor and sending into OCIC for approval.

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