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Construction change orders called necessity
(by Sue Reid - September 09, 2010)
Construction change orders called necessity
By SUE REID
The necessity of change orders on construction projects was the topic of discussion last week among members of City Council's public works committee.
It followed the approval for Kenmore Construction, of Akron, as the lead contractor on a portion of the $5 million-plus anaerobic digester project at the city's sewage-treatment plant. Kenmore also is the contractor on the Pettibone Road reconstruction, where two change orders in the amount of nearly $1 million were approved recently. In addition, the city approved a change order of $550,000 for the re-sequencing of that project last November.
"Kenmore may be in the habit of requesting more than other contractors," Solon Public Works Director James S. Stanek said, "but they are not getting paid for everything they ask for."
He said large projects, especially those involving underground work, result in change orders. "The likelihood that you are going to go through projects with no change orders is pretty slim," he said.
Three different projects that had circumstances leading to change orders were discussed by the committee. They include the Pepperwood storm-sewer replacement and the reconstruction of Bainbridge and Pettibone roads.
"The Bainbridge Road change orders are not felt by the city, because it's a county project, but they do occur at times," Mr. Stanek said.
He said contractors are not getting paid for anything they are not entitled to. He said there are lots of different reasons for change orders. One can involve utility conflicts in the field, for example, or something unknown that the contractor encounters, he said.
"There is a cost associated with that," Mr. Stanek said. "Anytime a contractor changes the plan and it costs him either time or materials, he can request a change order."
Another reason for a change order could be if the city would see something it wants changed in the project.
Mr. Stanek said, when the city is presented a change order, "we would sit down and figure out how we are going to resolve it." Based on the type of change order, an anticipated cost is determined. That cost would be submitted by the city, which then would thoroughly review it. At that point, the change order would either be modified or approved, and be submitted for payment, Mr. Stanek said.
Councilman Richard A. Bell said that, in the long run, because of the extra paperwork and requests for change orders from a contractor such as Kenmore, "there is intangible time being put into it" that would take staff away from working on other projects.
Mr. Stanek said that is a fair statement.
But he said he would rather have a conscientious contractor pointing out things that need looked at and addressed that result in change orders than to allow something to move forward that is not going to work or is contrary to the plan.
"It's a lot of our time and energy, but we would rather go through that time and energy to make sure the job is done right and the city has a quality project in the end," Mr. Stanek said. That is especially the case with regards to underground work because "once you cover it back up, you're done."
Councilman William D. Mooney said he understands the need for change orders when it comes to the unknowns associated with underground work, but he is concerned with the large change orders presented by Kenmore in order to "get them back on schedule" with projects.
Mr. Stanek said he understands Mr. Mooney's concerns. The city is coming up with strategies to manage the jobs, and change orders will be "major part of the discussion" with Kenmore during the preconstruction meeting for the digester project, he said.
In addition, Mr. Stanek said, sewage treatment plant director Paul Solanics and his staff will watch the project closely.
In the over 20 years he has been at the plant, Mr. Solanics said, projects always have change orders, "but we thoroughly review the specifications.
"The staff at the plant will be working with CT Consultants to monitor this job," he said. "We go into a lot of detail and take a lot of pride in that. We will keep close eye on project. Our reputation for change orders has been pretty good with the last few projects we've had."
Mr. Solanics also noted for the committee that the portion of the project that Kenmore is doing is the most straightforward of the other three portions. It is not involved in the electrical aspect of it, he said.
Kenmore's bid for that portion of the project was about $1.7 million. It will perform the general construction of the digester, including masonry work. It was the low bidder for that portion.
In Solon, Kenmore was the contractor for the SOM Center Road (Route 91) widening project, the Aurora Road (Route 43) East sewer project and the Metroparks' lift station.
"It all boils down to managing the project and managing those change orders," Mr. Stanek said.
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