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deadlines for payment of subcontractors meeting performance and documentation <br />requirements. <br />Audit Obiective No. 5: Determine whether contract supplements and change orders are in <br />compliance with legal requirements and applicable policies and <br />procedures. <br />And <br />Audit Obiective No. 6: Determine whether contract supplements and change orders were <br />properly reviewed, authorized, and approved. <br />• The Department of Public Works lacks formal policies and procedures to determine <br />whether changes in work should be handled via contract supplement /change order or <br />new procurement. <br />Among the contract supplements and change orders determined to be outside the scope of <br />work of original contracts were: <br />o Contract Supplement No. C.000962.1 for $24,180 for mechanical design of a humidity <br />control system for the Police Evidence Warehouse. <br />o Change Order Nos. C.000964.2 and 000964.4 totaling $169,079 for four South Hilo <br />intersections requiring ADA curb ramp improvements. <br />o Contract Supplement No. 001031.1 for $15,000 for construction management services for <br />an unrelated traffic intersection added to a contract for three island -wide bridge <br />improvement projects. <br />HRS §103D-501, Contract clauses and their administration, provides in pertinent part: <br />"(a) The policy board shall adopt rules requiring the inclusion of contract <br />clauses providing for adjustments in prices, time of performance, or other <br />contract provisions, as appropriate, and covering the following subjects: <br />(1) The unilateral right of the governmental body to order in writing: <br />(A) Changes in the work within the scope of the contract; and <br />(B) Changes in the time of performance of the contract that do not <br />alter the scope of the contract work." [emphasis added] <br />HAR §3- 122 -13, Development of specifications, provides in pertinent part: <br />"(a) A specification should provide for the following: <br />(1) Identify minimum requirements; <br />(2) Allow for competition; <br />(3) List reproducible test methods to be used in testing for compliance with <br />specifications; and <br />19 <br />