A. Intent: The city commission recognizes the need for construction project budgets to provide for contingencies. The commission also finds that on occasion other project costs are dependent on the final project amount, including contingency expenditures. The commission recognizes that modifying or amending contracts that increase the cost of the project after the bid has been let is not a reasonable way to conduct the public competitive bidding process.
B. Contract Modification Procedure:
1. This section applies only to the following contracts:
a. Construction contracts awarded to the lowest responsible bidder by the city after an advertised, competitive bid approved by the city commission; and
b. Contracts for architectural, engineering, land surveying, legal, consulting, and other professional or technical services that are procured through an advertised request or solicitation and which are awarded by city commission action.
2. Contracts described in this section may only be modified by a change order as provided for in this section, even though the change order may decrease the original amount of the contract.
3. The city manager or his designated representative may approve contract modifications through change orders without first obtaining city commission approval in the following circumstances:
a. If the change order varies the quantity of an item or material for which the contract specifies a unit price, and the variance does not increase the quantity specified in the contract by more than twenty five percent (25%);
b. If the change order improves the quality of the project without increasing the total contract bid award; or
c. If the change order is necessitated by conditions, emergencies, or circumstances unforeseen at the time of the contract award, the amount of the change order, together with all other change orders on that project, does not exceed ten percent (10%) of the amount of the contract, and the change does not substantially alter the original design or the project scope.
4. All other contract change orders, including changes in the aesthetics of the project design, additional landscaping beyond that specified by the original design, quality upgrade changes in materials that increases the total contract price, and other nonemergency, foreseeable changes require approval of the city commission prior to modifying the contract, and the commission's authorization for the expenditure of additional funding, if needed. (Ord. 2905, 2-26-2001)