HomeMy WebLinkAboutRes1986-037
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 86-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, ADOPTING A CONTRACT CHANGE ORDER POLICY
WHEREAS, the Seward City Code of Ordinances sets forth con-
tracting procedures; and
WHEREAS, the contracting procedures are silent with respect to
contract change orders; and
WHEREAS, it is in the public interest that the City of Seward
adopt a change order policy;
NCW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. A contract change order policy as set forth in
Attachrrent A to this resolution is hereby adopted.
Section 2. This resolution shall take effect imrrediately upon
its adoption.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, this 14 day of April , 19 86
THE CITY OF SEWARD, ALASKA
~ ~D
C <-Ll"'~~
Y~IES , MAYOR -
AYES:
NOES:
ABSENT:
ABSTAIN:
BOOHER, GIESELER, GILLESPIE, HILTON, MEEHAN, SCHOLL & SIMUTIS
NONE
NONE
NONE
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CITY OF SEWARD, ALASKA
Resolution No.
ATTACHMENT "A"
POLICY
TITLE: Approval of Change Orders to Construction Contracts
PURPOSE: To establish policy and procedures for initiating and approving
change orders to construction contracts
POLICY: Project budgets for a construction project will be approved by the
City Council at the t:irre the construction contract is awarded. The City
Manager may approve construction generated change orders within the budget.
Folla.ving approval of any such change order, the City Manager shall see that
a copy of the change order appears on the Consent Agenda of the Council as
an infonnational item. The City Council will approve in advance change
orders which substantially change the scope of VIOrk, significantly extend
the project corrpletion schedule or cause the project budget to be exceeded.
PRCX::EDURE: The engineer will
contract cost for submittal.
folla.ving line items:
prepare a revised project budget based upon
The budget, as a minimum, will include the
1. Construction Contract (s) - The total cost of the construction
contract (s) ;
2. City Administration - The charges by the City for administration
of the contract;
3. Contract Managerrent - The cost of project rnanagerrent, inspection,
testing and similar services;
4. Force Account - The cost of force account construction labor and
equiprrent expense directly supporting or corrplem:mting the contractor's
construction effort;
5. City Supplied Materials - The cost of materials to be provided to
the contractor by the City; and
6. Contingency - An aIrOunt based on a percentage of the budgeted
costs of the project cost listed above. The arrount will nonnally be 10% of
the first $100,000 plus 7.5% of any arrount exceeding $100,000. The engineer
may request a greater aIrOunt where there may be unusual conditions warrant-
ing a greater contingency.
The City Manager will submit to the Council any change orders or other costs
that will cause the budgeted arrounts to be exceeded, or owner-directed
changes to the scope of the project or design, that increase the cost by
!!"Ore than $5,000 or change orders that will result in significant ti1re
extensions. The Council will also be advised of unresolved claims at the
t:irre it appears that they may result in litigation or cause the cost to
exceed budgeted aIrOuntS.
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 86-37
ATI'EST:
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APPROVED AS '!D FORM:
HUGHES, THORSNESS, GANTZ, PCWELL
AND BRUNDIN, Attorneys for the
City of Seward, Alaska
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Fred B. Arvidson, City Attorney
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