Findings on Library System Performance Audit

The Washington State Auditor's Office has issued a performance audit report of the Construction Management practices of the King County Library System.

The summary for the report states the following:

"We found that KCLS is doing a good job overall with its construction projects. We did find opportunities for improvement and to reduce its risk. We found that KCLS has incomplete policies and procedures for managing construction projects. We found issues with contracting practices, and in particular, change orders, that resulted in paying excessive markups on projects. Its current change order rate is 17 percent. By following the recommendations, they could reduce it to around 10 percent, which is more in line with industry best practices. The construction project method they chose for the five design-build projects was a good approach for KCLS, but was not legal according to state law."

Having clear and complete policies and procedures for managing construction projects, along with staff who have been trained in them is critical to proper construction management. The use of Design-Build projects in Washington State is limited to public agencies who have received either agency approval or project approval to use Design-Build, one of three alternative public works contracting procedures authorized by chapter 39.10 RCW. Please contact me if you would like assistance in reviewing, revising, or writing contracting policies and procedures for your agency. Likewise, I can provide assistance in the use of Design-Build, General Contractor/Construction Manager (GC/CM), and Job Order Contracting, the three alternative public works contracting procedures.