Costly Change Orders Prompt Call for New Review Policy

CREST HAVEN – The late-Stone Harbor Borough Council member Louis Clellan once railed about what he termed, “The vagaries of low bid.”
He uttered the phrase after he had experienced many instances of a contractor submitting a low bid for a project, winning the award, and then being unable to complete the task without returning to the governing body for more money to complete the job.
It appeared that Freeholder Director Gerald Thornton experienced much of the same and wants to implement a mechanism that might help deter, or at the least explain to the board, some of those actions.
At the July 24 caucus, Thornton addressed his peers, “This has been jumping out at me for a while. I’d like the board to consider a policy. We’ve all recognized a number of change orders that continually come in over the years.
“We’ve all questioned them with the department heads and with each other,” he continued.
Thornton cited a former board policy that had required a contractor and project manager to appear before the board with the department head to explain why the change was needed.
“It’s really important for us to understand. Very often they’re costly,” said Thornton.
He wanted the staff to develop a policy in concert with County Counsel Jeffrey Lindsay.
Freeholder E. Marie Hayes wondered if it would be possible to place wording into contracts that might limit such change orders.
“That would not be difficult,” Thornton replied. “There are some unforeseen things you wouldn’t be aware of at the time.”
Hayes believed some contractors might “take advantage” of the county using change orders.
“That is a concern of mine,” Thornton said. “Contractors recognize the fact they can low bid…it’s just a concern. We have an obligation to make sure we verify those change orders and the rationale behind them.”
Quizzed by Freeholder Will Morey about the possibility of a threshold amount, Thornton said he didn’t have details, and would prefer the staff to “look into this and make recommendations.”
Thornton noted there are times when change orders must be made so that there is no delay in completion of a project due to time or weather.
Thornton made that recommendation prior to the passage, at the regular meeting, of a $139,956 change order for the Correctional Center for “additional costs for revisions to certain cameras, concealment of an exposed sprinkler pipe, furnish and install speak-through devices in interview rooms, relocation of the make-up air supply grilles, repainting the exercise yards and shower areas and epoxy flooring moisture preparation.”
Some other recent change orders:
May 22, 2018: $500,000 for the Correctional Center, which also added 159 days to the completion of the project.
May 14, 2018: A change order reduction of $320,240 for Townsend’s Inlet Bridge due to a cancellation of decking modification in the movable span.
May 8, 2018: $189,000 for asbestos removal in connection with demolition and restoration of the former Everlon Building at the county airport.
Feb. 27, 2018: $43,000 for additional radio equipment at the Lower Township Public Safety Building for the Office of Emergency Management.
Dec. 12, 2017: $42,588 for roadway and infrastructure upgrades at the County Airport.
Also at that meeting, $310,629 for floor polishing and sealant on the floor of the Correctional Center.
Dec. 5, 2017: A $2,250 change to furnish and install exterior doors and reverse swings on two doors at the pole barn at the park and zoo.