Change Orders

Environmental Improvement Fund

A change order is a document that specifies and justifies a change to a construction contract. Typically, a change order alters the time of completion, the total price, or both.

State Statutes require that the department periodically inspect Environmental Improvement Fund (EIF) projects to determine project compliance with the approved plans and specifications as well as other program requirements. Determining compliance involves the review and approval of change orders stemming from a project. A change order is eligible for funding only if approved by DNR staff.

In situations where the proposed change(s) would substantially alter the capacity or operation of a facility, further review by technical review staff will be required. This may involve re-approval of the original plans and specifications. The municipality is strongly encouraged to discuss such potential changes in the project with the department's field staff as early as possible to allow adequate time for comment.

Municipalities, as recipients of financial assistance from the EIF, are responsible for the negotiation of change orders. During negotiations, the municipality must secure a fair and reasonable price for the required work.

When the municipality prepares a change order for department review, it should:

• Identify the change order. Include the municipality's name, project name and number, contract name and number, change order date and number, and all other appropriate contract information.

• Justify the change. Provide sufficient documentation to demonstrate that the municipality made a reasonable analysis of the change.

• Submit cost and pricing of the change. Include invoices or quotations from the prime contractor and all subcontractors. Depending on the value of the change, a review of the cost should be conducted. The greater the cost the more detailed the review should be. Some changes will require an independent estimate. Many will require the engineer to conclude that based upon experience the cost is appropriate.

• Obtain signatures of all parties to the contract.

• Submit the change order to DNR for approval. Mail the change order along with supporting documentation to the construction management engineer (CME) assigned to the municipalities region.

The CME will determine eligibility based on criteria specified in administrative codes and best management practices.