Council is required by the City’s Charter to review and approve modifications to construction work, including additions, deductions, substitutions and extensions of time. This section outlines the contract modification procedure to be followed in all City construction contracts:
(a) The party requesting the contract modification should be identified, such as:
(1) City;
(2) Owner’s representative;
(3) Contractor or subcontractor or material or equipment supplier;
(4) Other.
(b) The reason for the contract modification should be listed, for example:
(1) Unanticipated field conditions;
(2) Design improvement;
(3) Design error;
(4) Contractor (or subcontractor) request;
(5) City request;
(6) Other.
(c) The suggested contract modification should be described in sufficient detail to allow Council to understand the modification.
(d) The estimated or actual cost, and the basis therefor, should be stated.
(e) The contract modification should be approved by the following:
(1) Owner’s representative with date;
(2) Contractor with date;
(3) Mayor with date.
(f) The following procedure should be followed:
(1) No modifications shall be processed without the proper signatures.
(2) Any modifications to the scope of the work, including the material or equipment furnished or time of completion, where the estimated cost is five thousand dollars ($5,000) or less, shall be approved by the owner’s representative and the contractor, and upon such approval immediately reported to the Mayor and the Director of Finance. Such modifications, individually or collectively, shall be included in a resolution at a future Council meeting.
(3) Any modifications over five thousand dollars ($5,000), but less than twenty-five thousand dollars ($25,000), shall require the prior approval of the owner’s representative, the contractor and the Mayor, and shall be included in a resolution at a future Council meeting.
(4) Any modification of twenty-five thousand dollars ($25,000) or more shall be submitted to Council for its review and approval prior to any work being performed pursuant to the modification.
(5) No extension of time for the overall contract, or for any individual milestone component of the overall contract, shall be effective unless reviewed and approved by Council by resolution. Time may be extended as part of any change order for a change in price.
(g) In every case the submission to Council for its review and approval shall at a minimum include the following information:
(1) Original contract amount $______________
(2) Prior additions $______________
(3) Subtotal $______________
(4) Prior deductions $______________
(5) Subtotal $______________
(6) This add (or deduct) $______________
(7) Current contract amount $______________
(8) Additional time requested (in days) _____________
(Ord. 2022-20. Passed 7-25-22.)