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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substantially exceeding contracted completion dates and were, in fact, issued after actual completion dates. Generally, documentation of work commencement and completion dates was lacking in the project files provided for review. DPW General Requirements and Covenants at §8.8(b), Contract Time, provides in pertinent part: "For increase or decrease in the scope of work caused by alterations, additional or decreased work made under Subsection 4.2 "CHANGES" ... Contract time extension will not be granted for changes which the Engineer determines unjustifiable due to lack of supporting evidence or the change is of such nature that the final completion date will not be affected. In any case, for all time extensions or reductions, the Engineer shall ascertain the facts and extent of the time involved and his findings of the facts shall be final and conclusive...." DPW General Requirements and Covenants at §8.8(c), Contract Time, provides in pertinent part: "For delays caused by acts of God, or of the public enemy, fire, floods, epidemics, quarantine restrictions, strikes or walkouts, and freight embargoes, the Contractor may be granted an extension in working days provided that the Contractor notify the Engineer in writing of such delays within ten (10) consecutive working days ... The Engineer shall evaluate all time extension requests and shall ascertain the facts and extent of the time involved and his findings of the facts thereon shall be final and conclusive." [emphasis added] DPW General Requirements and Covenants at §8.8(d), Contract Time, further provides in pertinent part: "The Engineer will prepare for each estimate made under the provisions of Subsection 9.6 "PARTIAL PAYMENTS" a statement of the working days charged during the period, the number of working days in the contract, the working days' extension granted for reasons stated herein and the number of working days remaining to complete under the contract." Contract supplements and change orders issued for adjustments in price are not consistently supported by documentation verifying computation of costs. In particular, a change order issued for increased material cost due to a delay on the part of the County was not supported by documentation relating to computation of the price adjustment. Generally, internal estimations of material costs were lacking in project documentation provided to the auditors and indicate a heavy reliance on contractor estimations of unit prices. HRS §103D-501, Contract clauses and their administration, provides in pertinent part: 21