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Supplemental Topic

Following the Change Order Process ContentsIntroduction to Change Orders ..................................................................4

Who’s Involved in Change Orders?.................................4What is the Change Order Process?................................5Change Order Process Timing .......................................8

The Importance of Timing..........................................8

The Change Order Process: Project Administration’s Steps...................8

Initiating a Change ........................................................8Reasons for Change...................................................9

Verifying Need and Funding Availability.........................9Assessing the Level of Urgency.................................9

Processing Standard Change Orders ...........................10Preparing the Bulletin..............................................11Reviewing the Contractor’s Proposal......................14

Reviewing Requests for Time Extension..............14Responding to the Proposal.....................................15Completing the Change Order Form........................15

Signing and Delivering the Change Order Form ..19Processing Change Orders Internally.......................19

About the A-600 Form..........................................19Completing the A-600 Form.................................20Does Your Change Order Require an A-910? .......23Completing the A-910 Form ................................25Assembling Change Order Documents for Processing ...........................................................29

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What Happens Next? Approval/Accounting Processes...........................30

Steps in Capital Projects Reporting...............................30Steps in Capital Finance...............................................31

A-600 Form....................................................................................31Change Order Form.......................................................................31Supporting Documentation............................................................31

Processing Emergency Change Orders.....................................................32

Completing the Emergency Field Work Order...............33

Processing Amendments.............................................................................35

Figures1 Change Order Bulletin2a Blank Change Order Form2b Completed Change Order Form 3 A-600 Form4 A-910 Form5 Emergency Field Work Order (EFWO)6 Amendment

TableWhen Does a Change Order Require Approval Routing?

ChartChange Order Process Flow

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Changes to Following the Change Order Process

Revision 1, June 2002Changes made as part of this revision appear with a in the margin.

Page Description/Reason

23 Text change: Change Orders now require approval routing when the cost of a Change Order on a contract exceeds $1.210 million, or if the Change Order causes a threshold of $1.210 million to be crossed.

24 Table change: Throughout the table “When Does a Change Order Require Approval Routing?”, examples were changed to reflect the new $1.210 million approval amount.

30 Text change: Two items in the bulleted list were revised to reflect the new approval amount.

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1

Introduction to Change OrdersChanges to contractual agreements can become necessary at any time in the life of a project. Between the signing of the original contract and the completion of work, literally dozens of changes to a project’s scope of work, schedule, and/or budget can be requested.

The University Architect Division has developed a process for managing these project changes. When followed, the process helps balance the need to keep project work moving forward against some equally important internal needs:

The need to ensure that contract changes are properly and legally approved

The need to keep account information up to date The need to pay vendors promptly

This document presents the University Architect Division’s process for managing Change Orders.

Who’s Involved in Change Orders? The following areas are involved in processing change orders: Project Administration initiates change orders and communicates with vendors. Project Administration also initiates the processes that move a Change Order through its internal approval and accounting steps. For purposes of this document, the term “Project Administration” encompasses the Project Administrator; the Associate Architect, if applicable; the Senior Staff Engineer; support staff members; and others in Construction Management, as applicable. The term “Architect” in this document refers to either the Associate or the in-house Architect. Capital Projects Reporting checks documentation on Change Orders that require routing for contract approval. This documentation includes the A-910 Form, Change Order documents, and supporting information. Capital Finance checks Change Order documentation, determines whether sufficient funds are available for the change, and updates the account information in the College

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and University Financial System (CUFS) and the Office of the Architect Shared Information System (OASIS). University Purchasing ultimately authorizes the vendor to include the Change Order in the vendor’s payment application.

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What Is the Change Order Process?The following is an overview of all parties’ steps in the Change Order Process (for non-emergency changes to Construction contracts):

1. When a change to contracted work is requested, the Project Administrator or Associate Architect (as applicable) confirms that the change is needed and that sufficient funding is available in the project budget.

2. The Architect provides details about the change to the Construction Contractor in a Bulletin or other appropriate means as determined by the Project Administrator.

3. From the Bulletin, the Construction Contractor develops a proposal (including cost) to complete the change work.

4. The Project Administrator and/or Architect review and respond to the proposal, checking it for conformance to University pricing requirements and conducting negotiations as necessary. (Due to the nature of the additional work, or a lack of agreement on pricing, a “not to exceed” Change Order shall be processed before work begins.)

5. Using the pricing in the Construction Contractor’s proposal, the Architect (or Senior Staff Engineer [SSE], depending on contractual responsibilities) prepares the Change Order Form. The Architect, Project Administrator, Senior Staff Engineer, and Construction Contractor sign the Change Order Form.

6. The Senior Staff Engineer oversees completion of the A-600 Form. This form provides accounting personnel with the information they need to enter the funding change into CUFS. Ultimately the A-600 will be provided to the vendor as authorization to bill for the change work.

7. The Project Administrator determines whether the Change Order requires contract approval and routing. If so, the Project Administrator completes the A-910 form, which summarizes the contract change for the individuals who will need to sign it.

8. The Project Administrator assembles the Change Order Form, the A-600, the supporting documentation (such as the Contractor’s proposal), and the A-910 form (if required), and submits them for approval and quality-assurance steps.

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9. If contract approval is required, Capital Projects Reporting checks the Change Order paperwork for accuracy, and the package is routed for signatures.

10. The Accountant checks the Change Order paperwork for accuracy, enters the Change Order funding information into OASIS and CUFS, and approves the A-600 Form.

11. Capital Finance sends the A-600 form (and supporting documents) to University Purchasing. Purchasing issues a copy of the A-600 to the vendor as authorization to begin billing.

Note: The above steps apply to “standard”, or non-emergency, changes to Construction Contracts. Throughout this document, a standard Change Order for Construction is used as an example.

In emergency cases, a shorter process can be followed so that urgently needed work can begin immediately. See the section titled “Determining the Level of Urgency” for information about emergency changes.

Changes to Architect/Engineer (A/E) agreements follow a similar process, but the document that begins the process is called an Amendment rather than a Change Order. Amendments are discussed later in this document (see “Processing Amendments”).

The chart on the following page illustrates the Change Order Process.

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Change Order Process Flow

Change Order Process Timing The Change Order Process can be completed in less than 14 days for uncomplicated issues. In no case should it take more than 60 days.

The Importance of TimingTiming is crucial to successful change order processing. Each step depends on the step that precedes it, so each party must fulfill his or her responsibilities as quickly as possible to prevent the process from becoming stalled. Delays in change order processing can have serious consequences, including: Construction work beginning (or even being completed)

before it has been authorized by Project Administration and/or approved by the University. This situation is in conflict with University and State requirements and exposes the University to unnecessary risk.

Vendors submitting invoices before work has been approved. This situation can create delays in paying vendors, which in turn can damage the University’s relations with its vendors.

Internal accounting processes compromised because events have happened “out of order”—i.e., invoices for Change Order work have been presented before funds have been committed to the work.

Prompt completion of each step in the Change Order Process helps ensure that changes are properly authorized and approved before work begins; that vendors are paid promptly; and that accounting processes follow established norms.

The Change Order Process: Project Administration’s StepsInitiating a Change Depending on the reason, a change may be initiated by the Project Administrator or by the Architect. Most changes are initiated by the University, but in some circumstances an outside Architect might initiate a change (for example, if the University Owner/Client communicates a change

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request to the Architect without first discussing it with the Project Administrator).

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Reasons for ChangeAny of the following situations can necessitate a change or changes to a project’s scope of work, schedule, and/or budget: An Owner request. In this case, the project’s

Owner/Client asks for a change after the contract has been signed and/or after construction work has begun.

An initial error or omission by the Architect. In this case, the change is needed because the error or omission has rendered original information incorrect or incomplete.

An unforeseen field condition that makes the change necessary.

A field dispute between the Construction Contractor and the University and/or Architect. When such a dispute is resolved, a change may be needed to satisfy the resolution.

Value engineering. In this case, the parties have identified and agreed to an alternative way to do the work, at a lower cost.

Reconciliation. In this case, money remains in a completed Purchase Order and needs to be deducted.

Verifying Need and Funding AvailabilityFor each potential change, the Architect must confirm with the Project Administrator that the request is valid and that currently available funding will cover the estimated cost of the proposed change.

Available funds must be sufficient to cover both construction costs and any additional costs for the Architect’s services (whether inside or outside design services are used). A contract amendment must be processed for changes to A/E agreements (see “Processing Amendments”).

Once the need and the availability of funds have been established, Project Administration must determine whether the need for the change constitutes an emergency.

Assessing the Level of Urgency

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If a change is considered an “emergency,” most often because of an unforeseen condition in the field, a variation of the usual Change Order Process can be invoked to allow work to begin sooner. The determination of emergency need is at the Project Administrator’s discretion and can be an important option for preventing costly delays in construction. However, most changes are not emergencies.

Three variations of the Change Order Process can be used; the choice depends on how urgently the change is needed. The table below shows which variation to use, based on level of urgency and estimated cost of the change:

Level of Urgency Estimated Cost of Change

Process Variation

Non-emergency (most changes)

Any Standard Change Order

Emergency (i.e., the change is needed to address unforeseen conditions)

More than $10,000

Emergency Change Order

$10,000 or less Emergency Field Work Order (EFWO)

The standard Change Order approach is preferred whenever project conditions permit it. The sections that follow present the steps in the standard approach. “Emergency” procedures are presented in the section titled “Processing Emergency Change Orders”.

Processing Standard Change Orders Project Administration’s steps in the standard Change Order process are as follows:

Preparing the Bulletin; Reviewing the Contractor’s proposal; Responding to the proposal; Completing the Change Order Form; and Processing the Change Order internally (this step

includes completing the A-600 and A-910 forms as June 2002

required and preparing the Change Order documentation for internal checking and approvals).

Each step is explained in detail in the sections that follow.

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Preparing the BulletinAfter confirming with the Project Administrator that the change is needed and funding is available, the Architect prepares the Bulletin. (The Project Administrator is the University representative assigned to the project to consult with the external architect, if one is used.) The Bulletin’s purpose is to give the Contractor enough information about the proposed change to develop a proposal and cost estimate. To that end, the Bulletin should include the following elements: A detailed scope of work describing the proposed

change; Drawings, if any, that illustrate the proposed change; The Architect or Project Administrator’s preliminary

estimate of the cost to make the change, and the University’s preferred pricing basis (fixed-price or time-and-materials) for the work;

The deadline by which the Contractor must respond to the Bulletin (10 working days); and

A cover letter that summarizes the information in the Bulletin and provides justification for the change.

The University’s Change Order Procedure and Pricing Guidelines state that Construction Contractors can be held responsible for costs that may result from their late response to a Bulletin. The Bulletin should make this point clear to the Contractor. Figure 1 shows an example Bulletin. Some A/E firms working on University projects have developed their own formats for Change Order Bulletins. Alternative formats are acceptable as long as the Bulletin provides the Contractor with enough information to respond in a timely fashion with a proposal.

Note: The cover letter should be used to remind the Contractor that the Bulletin is not an authorization to proceed with construction work. The Change Order Procedure and Pricing Guidelines provide that when Construction Contractors undertake work without the required authorization, they assume the risk that they might not be paid for such work.

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After developing the Bulletin, the Architect next obtains the Project Administrator’s approval of the Bulletin and cover letter and forwards them to the Construction Contractor.

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Figure 1: Change Order Bulletin (Page One)

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Figure 1: Change Order Bulletin (Page Two)

Reviewing the Contractor’s Proposal When the Construction Contractor returns a proposal in response to a Bulletin, the Architect reviews it to determine the following: Did the Construction Contractor follow the University’s

requested pricing basis (either fixed-fee or time-and-materials) in estimating the price to perform the work?

Does the Construction Contractor’s item-by-item pricing conform to the limits established in the University’s Change Order Procedure and Pricing Guidelines?

Is the Contractor’s total quoted price reasonable?

A “no” answer to any of these questions constitutes a reason to reject the proposal. If the proposal is priced by the wrong method or does not conform to the published guidelines, the Architect should ask the Construction Contractor to correct the pricing errors and resubmit the proposal. If the Contractor’s total price is deemed unreasonable, the Architect and/or Project Administrator should initiate price negotiations with the Contractor.

Note: The University’s Change Order Pricing Guidelines are available to Construction Contractors via the University Architect Division’s Web site (www.uc.edu/architect/). In addition, a worksheet to assist with line-item pricing of Change Orders is available in electronic format to Contractors who request it.

Note: When evaluating contracts and negotiating pricing, remember that the Change Order Process must continue moving forward. To complete Project Administration’s part in the process as quickly as possible, it is important not to spend too much time on any single step.

Reviewing Requests for Time ExtensionThe Construction Contractor’s proposal may include a request for more time to complete the added work. If the change is substantial, a request for an extension may be entirely reasonable. However, because timing is an element of the original contract, any change to the project schedule constitutes a contract change that must be documented on a Change Order Form.

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http://www.uc.edu/architect/

Note: A Construction Contractor’s request for more time to complete the work can come at any time in the Change Order Process. If the request is made with the Contractor’s proposal, or at any time before the Architect/Project Administrator has prepared the Change Order Form, the change in timing, if approved by the Project Administrator, can be documented on the same Change Order Form as the change in scope. However, it is also acceptable to prepare a separate Change Order Form for the time extension.

Requests for time extension are subject to the criteria presented in paragraph GC 7.4 of the Front-End Specifications.

Responding to the Proposal

As soon as possible after receiving the Construction Contractor’s proposal for performing the change work, the Architect (with the Project Administrator’s concurrence) must accept or reject the proposal and notify the Construction Contractor of the decision. If the proposal is rejected, the Architect must provide written explanation to the Contractor (even if price negotiations with the Contractor are ongoing).

Completing the Change Order Form Once the terms of the Construction Contractor’s proposal are acceptable to the University, and assuming the Architect and Project Administrator still agree that the change is needed, the Architect can complete the Change Order Form. This document, once signed by all parties, can be given to the Contractor as authorization to begin the change work.

As part of its normal processing, the completed Change Order Form will be checked by the Capital Projects Reporting and/or Capital Finance departments, as applicable. (See the section “What Happens Next? Approval/Accounting Processes” for an explanation of these checks.)

A blank Change Order Form appears as Figure 2a; Figure 2b shows a correctly completed Change Order Form (ready for signatures). To complete the form, follow these steps:

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1. If the change is an addition to the project scope of work, schedule, and/or cost, check ADD. If the change is a deduction from the scope, schedule, and or cost, check DEDUCT. (Deduct Change Orders should be printed on goldenrod or yellow paper.)

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Figure 2a: Blank Change Order Form

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Figure 2b: Completed Change Order Form

2. Enter the University Purchase Order number in the UC Purchase Order No. field.

3. In the Change Order No. field, enter the number assigned to this change order.

4. If this Change Order provides an extension of the project schedule, enter the total number of additional days in the Contract Days Changed field. (For example, if the University agrees to the Construction Contractor’s request to extend the schedule by 6 days, enter 6). If the Change Order does not provide for a schedule change, enter zero or “no change” in this field.

5. If this Change Order includes an extension of the project schedule, enter the new completion date in the Revised Completion Date field.

6. Enter the contract type (general, electrical, plumbing, etc.) in the Type of Contract field.

7. Enter the project number and project name. 8. Under Check Reason for Change Order, check one of the

listed reasons. For a reason other than those shown, enter a brief description in the Other field.

9. In the Contractor’s Proposal Dated field, enter the date of the contractor’s approved proposal for completing the change work.

10. In the Total Cost field, enter the cost estimate from the Construction Contractor’s approved proposal.

11. Under Description/Justification, enter a description of the scope and reason for the change. Additional pages can be included as necessary.

12. Under CONTRACTOR’S ACCEPTANCE, enter the name and address of the Construction Contractor firm.

13. Under ASSOCIATE’S RECOMMENDATION, enter the name and address of the Associate Architect firm. (If the project uses an in-house Architect, enter “NA”.)

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Signing and Delivering the Change Order Form Once the Change Order Form has been completed, it must be signed by the Construction Contractor; the Architect, if applicable; the University Senior Staff Engineer; and the University Project Administrator.

Note: If the Construction Contractor has furnished a signed proposal with a dollar value of less than $5,000, the Construction Contractor’s signature is not required.

Note: If the project has a Construction Manager, his or her signature is required as well. For a Change Order Form that includes a blank for the Construction Manager’s signature, see the Staff Assistant.

When all parties have signed the Change Order Form, the Project Administrator delivers the Change Order Form to the Construction Contractor. The Contractor can begin the work upon receiving the signed form.

Note: The Change Order Form does not constitute the contractor’s authorization to begin billing for the Change Order work. Billing can begin only after the contractor has received a valid A-600 Form from University Purchasing.

Note: For Change Orders priced on the time-and-materials basis (“Not to Exceed” price), the Senior Staff Engineer or Architect must monitor the work and sign daily time tickets.

Processing Change Orders InternallyAs soon as a Change Order has been signed by all parties, Project Administration must initiate additional paperwork for processing the change within the University Architect Division and University Purchasing. The first such item is the A-600 Form.

About the A-600 Form University Purchasing requires that an A-600 Form be completed for a Change Order or group of related Change Orders. A support staff member completes the A-600 Form at the direction of the project’s Senior Staff Engineer.

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The A-600 Form differs from the Change Order Form in that the A-600 provides Capital Finance with the accounting detail they need to enter the necessary changes into the College and University Financial System (CUFS). Like the Change Order Form, the A-600 will be checked by Capital Projects Reporting and/or Capital Finance for accuracy. Capital Finance posts the funding changes, and the Capital Finance Director approves the form before sending it to Purchasing.

After processing the A-600 Form, Purchasing will send a copy to the Contractor; this copy is the Contractor’s notification that the Change Order may now be included in the Contractor’s payment application. Timing ConsiderationsAgain, prompt completion of the A-600 Form is critical to keeping Change Order processing on track. If the Contractor begins sending invoices before the A-600 Form has been approved, the Contractor may have to be paid from unencumbered funds. If this happens, University Purchasing advises the Contractor that the services invoiced were “unauthorized” and that future invoices must be presented against a valid purchase order number. This situation can damage vendor relations and cause qualified vendors to avoid doing business with the University.

In most circumstances, internal processing of an A-600 will not take longer than 10 business days. As long as the form is completed and submitted immediately, it can be approved and sent to the Contractor well before the Contractor begins invoicing.

The following section presents the steps for completing the A-600 Form.

Completing the A-600 Form

A blank A-600 Form appears on the following page as Figure 3. To complete an A-600 Form for a Change Order, follow these steps:

Note: The A-600 Form must be typed or neatly printed.

1. In the DATE field, enter the current date. 2. In the DEPT. NAME field, enter “Construction

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3. In the DEPT. CONTACT field, enter the name of the project’s Senior Staff Engineer.

4. In the PHONE field, enter the Senior Staff Engineer’s University extension.

5. In the blocks provided for MAIL LOCATION/DELIVERY POINT, enter the mail location from the original requisition (RX).

6. In the VENDOR CODE field, enter the code assigned to the project’s Construction Contractor. This code can be found on the original RX.

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Figure 3: A-600 Form

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7. Enter the Construction Contractor firm’s name, address, city, state, and zip code in the address fields provided.

8. In the box on the right side of the form, enter the project’s purchase order number in the Purchase Order (PC) Number field.

Note: Use the Term Contract Number side of this box to process a Change Order for a Term Contract (an agreement with an approved vendor ) if it is not governed by a Purchase Order. 9. Below the purchase order number, check the box next to

the type of change you are making. (For cancellations, enter dollar amounts on the lines indicated.)

Note: For the Change Order example used throughout this document—i.e., an addition that affects budget—check Add funds shown below.

10. If the Construction Contractor will need to bill for the change order work, check the box next to THIS CHANGE AFFECTS ABOVE VENDOR, SEND COPY. (If the Contractor does not need to receive the A-600 Form for billing purposes, check the box next to DO NOT SEND COPY TO VENDOR.)

11. Under ACCOUNT DISTRIBUTION LINE CHANGES, enter the accounting data (i.e., FUND, AREA, ORGN, FUNC [when applicable], OBJECT, and SUB OBJ) found on the original RX for the project.

12. Enter the dollar amount of the change in the TOTAL INCREASE or TOTAL DECREASE field, as appropriate.

13. In the COMMENTS area, enter the following information: The project number and name, The reason for the change, and The Change Order number or numbers covered by

this A-600 (from the Change Order Form or Forms).Note: The Project Administrator should not sign the AUTHORIZED

DEPARTMENT SIGNATURE or APPROVAL OF SENIOR BUYER lines. These will be signed by the Accountant and by University Purchasing, respectively, as the form is processed.

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When the A-600 Form is complete, the next step is to determine whether the change is subject to approval routing.

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Does Your Change Order Require an A-910 Contract Approval Form and Approval Routing? Some, but not all, Change Orders must be routed for approval signatures as required by University policy. If approval routing is required, the Change Order Form and A-600 Form must be accompanied by the A-910 Contract Approval Form, which the Project Administrator completes. A-910 ThresholdsWhether approval routing is required depends on two factors: the dollar amount of the individual change, and the total dollar amount of the entire construction contract after the change is added. The first time either amount exceeds $1.210 million, approval routing is required. When determining whether a Change Order requires approval routing, Project Administration must be aware not only of the individual Change Order amount, but also of the running total for the construction contract as a whole (including all change orders). The table on the next page shows the points where approval routing would be required on an example construction contract for $900,000 and several successive change orders.

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When Does a Change Order Require Approval Routing?

Contract/Change Examples

Running Contract Total

Approval Routing

Needed?

Reason

Original Construction

Contract: $900,000

$900,000 Yes All original “bid” contracts require approval routing

Change Order 1:$75,000

$975,000 No Neither the change order nor the contract total exceeds the threshold.

Change Order 2: $250,000

$1,225,000 Yes With this Change Order, the running contract total has exceeded the $1.210 million threshold.

Change Order 3: $250,000

$1,475,000 No The Change Order amount does not exceed the threshold. The running contract total does, but the required approval routing occurred with Change Order 2.

Change Order 4: $1,250,000

$2,725,000 Yes The individual change order exceeds the $1.210 million threshold.

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Completing the A-910 Form A blank A-910 Form appears as Figure 4. If the Change Order requires approval routing, follow these steps to complete the A-910 Form for a Change Order:

1A. In the Date of Initiation field, enter the current date. 1. In the Initiating Department field, enter the Project

Administrator’s department within the University Architect Division.

2. Enter the Project Administrator’s name and telephone number.

3. If the change requires the University to pay the vendor, check the box next to yes and enter the appropriate account number. Otherwise, check no.

4. Under Is this Contract Sponsored?, check the box next to yes or no, as appropriate.

Note: A sponsored contract is one that will be directly funded by an individual or party other than the University. 5. Under Description of Contract, complete fields A–K as

follows:A. Enter the name of the Contractor. B. Enter the project number and name, and the type of

contract (i.e., general, electrical, design, etc.). C. Skip this item. D. Check Modification of existing Contract. In the blank lines

provided, enter the page numbers and paragraph numbers from the original contract that will be altered by the Change Order.

E. Enter the total financial terms (original contract amount, previous Change Order amount, this Change Order amount = total revised contract amount).

F. Enter the beginning and ending month and year for the Change Order work (for example, April 2001 through May 2001). The ending date should include any approved time extension.

G. Leave this item blank. H. Leave this item blank; the Accountant will complete. I. Leave this item blank; the Accountant will complete.

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J. Leave this item blank; the Accountant will complete.K. Check yes and provide the RX number or Purchase

Order number.

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Figure 4: A-910 Form (page 1)June 2002

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Figure 4: A-910 Form (page 2)June 2002

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Figure 4: A-910 Form (page 3)

6. Skip this question for Change Orders. 7. Skip this question. 8. Under Approvals, the Project Administrator must sign and

date the first line as Principal Investigator or Individual Responsible for Agreement.

The next section describes how to assemble the completed A-910 Form and other Change Order documentation for quality-assurance, routing, and approval steps.

Assembling Change Order Documents for Processing For Change Orders that require approval routing and an A-910 Form, assemble the following: One original and three copies of the signed Change

Order Form. The three copies will be distributed by the Project Administrator (one copy goes to the Contractor; one goes to the A/E firm, if applicable; and one is kept for the project file)

The completed A-600 Form A copy of the Contractor’s proposal for completing the

Change Order work The completed A-910 Form (with Project Administrator’s

signature under Approvals)

Give these documents to the Assistant to the Director of Construction Management. The Assistant enters information about the Change Order into a database that identifies the correct signature routing path for the Change Order package. The package is then assembled into a folder with a cover sheet attached to the front for routing. It goes first to Capital Projects Reporting for quality-assurance checking, and then to the individuals whose signatures are required. Once signed, it goes to Capital Finance for posting and approval of the A-600, and then to University Purchasing, which issues the A-600 to the Contractor. For Change Orders that do not require approval routing, assemble the following: One original and three copies of the signed Change

Order Form. The three copies will be distributed by the Project Administrator (one copy goes to the Contractor; one goes to the A/E firm, if applicable; and one is kept for the project file)

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The completed A-600 Form A copy of the Contractor’s proposal for completing the

Change Order work

Give these documents to the Capital Finance Accountant. In Capital Finance, the package is checked for quality assurance. The A-600 account information is posted and the Capital Finance Director approves the A-600. From there, the package goes to University Purchasing.

What Happens Next? Approval/Accounting Processes Steps in Capital Projects Reporting A Change Order package that requires approval routing and an A-910 Form goes to the Capital Projects Reporting department before being routed for signatures. When checking the package, Capital Projects Reporting makes certain that:

One original Change Order Form is included The dollar amount of the Change Order or contract total

exceeds the threshold that requires approval (i.e., that the A-910 form and routing are actually required)

The project number and description on the cover sheet match the information in the Office of the Architect Shared Information System (OASIS) database

A copy of the University Board of Trustees’ approval of the original contract is included if required (for a contract total or Change Order exceeding $1.210 million)

All required fields on the A-600 Form are complete Contract information on the A-600 Form matches that

found in the College and University Financial System (CUFS)

Enough funds are available (as shown in CUFS) to cover the amount of the Change Order

After performing these checks, Capital Projects Reporting personnel initial the A-910 Form on the signature page to indicate that they have reviewed the package. The package then follows the signature routing path shown on the cover sheet. When all signatures have been collected,

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the package goes to Capital Finance for posting and approval of the A-600 Form.

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Steps in Capital Finance Capital Finance reviews all Change Order packages, regardless of whether the package requires approval routing. All Change Order packages must include an A-600 Form, which provides Capital Finance with the information needed to enter financial information about the Change Order into CUFS. The Capital Finance Director approves the A-600 Form.

When checking a Change Order Package, Capital Finance makes certain of the following:

A-600 Form

The Purchase Order number referenced on the Change Order Form and the A-600 Form is still open in CUFS, and that account numbers match in all places

The accounting line shown on the A-600 matches that in CUFS

Enough funds are available (as shown in CUFS) to cover the amount of the Change Order

The project name, number, and description appear on the A-600 Form

The vendor name on the A-600 Form corresponds to the Purchase Order number provided

Change Order Form

All required signatures are present (Contractor, Architect, Senior Staff Engineer, and Project Administrator signatures are required; Construction Manager’s signature may be required)

Note: If the Construction Contractor has furnished a signed proposal with a dollar value of less than $5,000, the Construction Contractor’s signature is not required. The UC Purchase Order number is provided The total cost and description of the change are

provided

Supporting Documentation

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The Contractor’s proposal to complete the Change Order work is not more than 60 days old (pricing information older than 60 days cannot be considered valid unless the Change Order includes documentation for time and materials)

There is no evidence that work has already been completed (unless the change is processed as an Emergency Field Work Order [EFWO] or a “not-to-exceed” Change Order)

After checking all the points listed above, the accountant determines the funding source for the change (State, local, or combination) by checking the OASIS database. The Accountant then posts the Change Order (the exact posting procedure is dictated by the funding type).

When the package has been checked and the account information has been posted, the Accountant approves the A-600 Form and forwards it, the supporting documentation (Contractor’s proposal), and the Change Order to University Purchasing for processing. University Purchasing ultimately issues a copy of the A-600 to the Contractor as authorization to submit invoices for the Change Order work.

Processing Emergency Change OrdersAt the Project Administrator’s discretion, a Change Order can go forward as an “emergency” to prevent delays in construction work. The emergency Change Order procedure is designed to allow a quick response when unforeseen field conditions threaten project progress. When a change is considered an emergency, a Bulletin need not be issued to the Contractor. Instead, the Project Administrator or Architect communicates the change to the Contractor on a Change Order Form or Emergency Field Work Order (depending on estimated cost of the change). Once all parties have signed the change document, the Contractor can proceed with the emergency work. The Contractor’s cost proposal can be returned up to 14 days after the emergency work begins. Internal processing of the emergency Change Order follows the same steps as for a standard Change Order. As with standard Change Orders, the Contractor must receive the A-600 Form from University Purchasing before billing for the emergency Change Order work.

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The steps involved in the Emergency Change Order Process are as follows: 1. The Project Administrator or Associate Architect (as

applicable) confirms that the change is an emergency and that sufficient funding is available in the project budget.

2. If the change is expected to cost $10,000 or less, the Project Administrator or Architect prepares an Emergency Field Work Order (EFWO; see Figure 5 for example). If the cost is expected to exceed $10,000, the Project Administrator or Architect prepares a Change Order Form (see the section “Completing the Change Order Form”).

3. The Contractor, Architect (if applicable), and Project Administrator sign the EFWO or Change Order Form. The Contractor begins the emergency Change Order work.

4. Not more than 14 days after signing the EFWO or Change Order Form, the Contractor submits a cost proposal for completing the emergency Change Order work.

5. The Project Administrator and/or Architect review and respond to the proposal, checking it for conformance to University pricing requirements and conducting negotiations as necessary.

6. The Project Administrator or Architect prepares an A-600 Form and an A-910 Form (if necessary) and assembles all documentation required for internal approval and processing, as described in “Processing Standard Change Orders”.

Completing the Emergency Field Work OrderThe Emergency Field Work Order appears on the following page as Figure 5. Follow these steps to complete the EFWO: 1. In the FIELD WORK ORDER No. field, enter the change

order number. 2. In the DATE field, enter the current date. 3. In the To Contractor field, enter the name and complete

address of the Construction Contractor. 4. Under Reason for Change Order, check either Error/Omission

or Field Condition, as applicable. June 2002

5. In the Project No. field, enter the project number. 6. In the Project Name field, enter the project name. 7. Under You are authorized to proceed with the following work,

enter a complete description of the needed emergency change work.

8. In the JUSTIFICATION field, explain why the change is needed and why the situation constitutes an emergency.

9. Enter the Architect or Project Administrator’s estimate of the cost to make this change in either the Fixed Price or the Not to Exceed Estimate field, depending on the University’s preferred pricing method for the work.

Once completed, the EFWO must be signed by the Project Administrator, the Associate Architect (if applicable), and the Construction Contractor. The form can then be given to the Contractor as authorization to begin work.

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Figure 5: Emergency Field Work Order (EFWO)

Processing AmendmentsChanges to the University’s agreement with an outside Architect/Engineer (A/E) are processed similarly to Construction contract changes. Changes to A/E agreements are documented on the Amendment Form (Figure 6) rather than the Change Order Form.

When the University requests an Amendment, the A/E firm must submit a cost proposal for the proposed work.

Amendments require completion of both the A-600 Form and the A-910 Form in all cases. All Amendments must be accompanied by an A-910 for approval.

A blank Amendment appears on the following page as Figure 6. To complete an Amendment, follow these steps:

1. Enter the number for this amendment. 2. Enter the date of the executed contract. 3. Enter the name of the Associate Architect firm. 4. Enter the project number and name. 5. Enter a complete description of the services the

Architect will perform to complete the change. 6. Enter the amount of the proposed change. 7. Re-enter the change amount in dollars and cents. 8. Enter the amount of the original contract.9. Enter the total of any previous amendments. 10. Enter the amount of the change introduced by this

Amendment. 11. Add items 8, 9, and 10 and enter the result next to

Total Current Contract Amount.

12. Leave this field blank.

Once the Amendment is complete, it must be signed by an authorized representative of the Associate Architect firm. The Project Administrator must then complete the A-600 and A-910 forms and submit them for processing and approval, along with the Amendment and the A/E firm’s cost proposal.

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Figure 6: Amendment