Wednesday, January 26, 2011

Out-of-Scope Change Orders Increase Project Cost by 85%

Clallam County, Washington advertised and awarded a countywide asphalt overlay project covering seven roads, and awarded to the low bidder in the amount of $654,930.  

2 Change Orders:  During the term of the contract, the County issued two change orders for two additional roads totaling $555,986, an 85% increase over the cost of the original contract.

Audit Finding:  The Washington State Auditor's Office recently issued an audit finding, noting that the County should have competitively bid the additional two roads.  According to the audit finding, "the County cannot demonstrate it received the lowest price or that all vendors were provided equal opportunity to bid."

Click here to read the audit finding (3 pages).
Mike Purdy's Public Contracting Blog 
© 2011 by Michael E. Purdy Associates, LLC

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