Rule 33-2-3.7.5 - Change Orders3.7.5.1 General. 1. In the event a determination is made by a loan recipient after a construction contract is executed that changes or modifications to the original contract are necessary or would better serve the purpose of the loan recipient, such loan recipient may, at its discretion, execute such change orders pertaining to the construction that are necessary under the circumstances, as provided in the contract documents and when in accordance with state law.2. Change orders must not change, vary, or alter the basic purpose or effect of the project unless allowed by the Department. Change orders must be technically adequate, the costs must be necessary and reasonable, and eligible/ineligible costs must be appropriately separated.3.7.5.2 Change Order Submittals. 1. After completion of the claims resolution and/or change order negotiation process between the loan recipient and the contracting party, a fully executed change order must be submitted to the Department for review and approval, in order to obtain a DWSIRLF loan eligibility/allowability determination.2. If any change order is submitted to the Department that is not complete and fully executed by the loan recipient, the contracting party, and the registered engineer if appropriate, the Department may return such change order without review. However, unilateral change orders executed by the loan recipient, and the registered engineer if appropriate, and identified as such, that are issued in accordance with the contract documents may be submitted to the Department for review and approval, in order to obtain a DWSIRLF loan eligibility/allowability determination.3. The loan recipient may submit a complete and fully executed change order which has been executed conditional upon a DWSIRLF loan eligibility/allowability determination by the Department. 4. All change orders must be submitted to the Department for review and approval in a timely manner. The Department may withhold payments to the loan recipient if change orders are not submitted in a timely manner.5. If possible, approval of a change order should be secured from the Department before the work is started, particularly for change orders including time extensions as per Rule 3.7.5.4 below. Approval may also be secured after the work is started; however, the loan recipient must bear the cost if the work is determined to be ineligible or unallowable.6. When the eligible cost of a project will be significantly reduced by a change order or change orders, the Department may issue an amendment to the loan agreement decreasing the loan amount, and the loan recipient must execute such amendment within the time frame established by the Department.3.7.5.3 Department Review. In order to allow the Department to perform a technical and loan allowability review, requests for change order approvals must conform to Department guidance, requirements and regulations.
3.7.5.4 Time Extensions. Change orders which include time extensions exceeding 30 days beyond the original contract completion date, and/or documentation that the loan recipient is implementing all legal remedies provided in the contract documents for failure to complete construction when required, must be submitted to the Department as specified in Rule 3.7.7(9) of these regulations. Justification for contract time extensions included in a change order must be prepared, but need not be submitted to the Department unless the total time extensions for the contract exceed 30 days after the original contract completion date, in which case justification for all time extensions must be submitted to the Department for an allowability determination.
33 Miss. Code. R. 2-3.7.5
Miss. Code Ann. § 41-3-16(3)(b)