2008-01-AU Limited Scope Performance Audit Report Department of Public Works CIP Contract Change Orders and Supplements for FY 2006-2007

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(4) Provide for an equitable award at the best value." • Contract supplements and change orders are routinely issued after completion of the requested work and, at times, after completion of the entire project. Written approved orders (such as an "Advance Notice to Proceed ") may precede formal issuance of contract supplements and change orders, but were seldom included among documentation provided to the auditors for review. DPW General Requirements and Covenants Section 4, Scope of Work, at §4.2, Changes, provides in part: "Any such changes will be set forth in a change order which will specify, in addition to the work to be done in connection with the change, adjustment of contract time, if any, and the basis of compensation for such work. All detailed cost breakdowns shall be submitted to the Engineer within ten (10) consecutive working days from the date of such written requests ... A change order will not become effective until approved by the Engineer, Director of Finance and the Mayor." [emphasis added] DPW General Requirements and Covenants at §4.2(c), Additional Work, further provides in part: "The Contractor shall do such additional work and furnish material and equipment therefore upon receipt of an approved change order or other approved written order of the Engineer; and in the absence of such approved change order or other approved written order of the Engineer, he shall not be entitled to payment for such additional work. Where such additional work is ordered by a written order other than a change order, the Engineer will as soon as practicable issue a change order therefor." [emphasis added] • Contract supplements and change orders do not consistently address completion dates for work performance. DPW General Requirements and Covenants at §8.8, Contract Time, provides in part: "The total contract time allowed for the performance of the work shall be the number of working days shown in the contract as awarded, plus any additional working days authorized in writing ..." [emphasis added] Contract supplements and change orders issued for adjustments in time are not consistently supported by documentation verifying causes of project delays. The auditors noted that numerous contract supplements and change orders were issued for weather delays for which no documentation was provided to independently substantiate claims. The auditors also noted that many change orders were issued for projects 20