Auditor Finds Change Orders Outside Original Scope of Work

Evergreen Healthcare, also known as Evergreen Hospital Medical Center and King County Public Hospital District No. 2, was the subject of an audit finding issued on January 12, 2009, by the Washington State Auditor's Office.

On two public works projects, the auditor found that Evergreen issued change orders that were outside the original scope of the project and which should have been competitively bid.

The $351,008 Duvall Clinic project included four change orders, including one totalling $73,316 for an emergency generator.

The other project was a $68 million contract for the Emergency Department and Patient Facility. The auditor found three change orders totalling over $1.1 million that were all outside the scope of work of the original contract, including a change order for $842,406 for the installation of a computer server room, one for $159,250 for external signage, and the final one for installation of internal signage valued at $100,447.

According to the audit, "none of the change orders were included in the original specifications. They represent separate projects and appropriate bidding procedures should have been followed."

Every public agency should have procedures in place for evaluation of change orders to ensure that they are appropriate and do not represent work that should be bid as a separate project. If you would like training on what are appropriate versus inappropriate change orders, or assistance in evaluating your procedures, please contact me.

Click here to read the complete audit report.