A. Contents: Change orders or addenda to public construction contracts of one million dollars ($1,000,000.00) or less shall not exceed a fifteen percent (15%) cumulative increase in the original contract amount. Change orders or addenda to public construction contracts of over one million dollars ($1,000,000.00) shall not exceed the greater of one hundred fifty thousand dollars ($150,000.00) or a ten percent (10%) cumulative increase in the total of the original contract amount. Any change orders or cumulative change orders which exceed these limits shall require a readvertising for bids on the incomplete portions of the contract. Change orders in any amount shall be formally approved by the city council and the reasons therefor recorded in the permanent records. All change orders shall contain a unit price and total for each of the following items:
1. All materials with cost per item;
2. Itemization of all labor with number of hours per operation and cost per hour;
3. Itemization of all equipment with the type of equipment, number of each type, cost per hour for each type, and number of hours of actual operation for each type;
4. Itemization of insurance cost, bond cost, social security, taxes, workers' compensation, employee fringe benefits and overhead cost; and
5. Profit for the contractor.
B. Exceptions:
1. If a construction contract contains unit pricing, and the change order pertains to the unit price, the change order will not be subject to this section.
2. When the unit price change does not exceed ten thousand dollars ($10,000.00), the unit price change order computation may be based on an acceptable unit price basis in lieu of cost itemization as required in subsections A1 through A5 of this section.
C. Alternates Or Add Items: Alternates or add items bid with the original bid and contained in the awarded contract as options of the city shall not be construed as change orders under the provisions of this chapter. (1985 Code § 7-324; amd. 2003 Code)