N.J. Admin. Code § 6A:26-4.9

Current through Register Vol. 56, No. 21, November 4, 2024

Section 6A:26-4.9 - Submission of change orders for ROD projects

(a) Contract change orders for capital projects shall be governed by the following:

1. Change orders may be approved by district boards of education for no more than the approved referendum amount for a capital project funded in whole or in part by bond proceeds, when necessitated by one of the following:

i. Emergencies consistent with N.J.S.A 18A:18A-7;

ii. Unforeseeable physical conditions; or

iii. Minor modifications to project scope that achieve cost savings, improve service or resolve construction conditions.

2. Upon its determination that an extraordinary circumstance exists, the Division shall approve all other change orders, including, but not limited to, the following:

i. Change orders that increase in the aggregate by more than 20 percent the original-award amount of each contract or of the entire project but for no more than the approved referendum, including changes funded by project contingency in 6A:26-4.8(c);

ii. Change orders that eliminate or affect the project scope that was the basis of the Division's determination of the final eligible costs of a school facilities project pursuant to 6A:26-3.6; or

iii. Change orders that affect the number, size, configuration, location or use of educational spaces.

3. Before the school district or Division may authorize a change order that increases the contract amount, the availability of funds shall be certified by the board secretary, on a form prescribed by the Commissioner that indicates:

i. The original contract amount and funds allocated to each contract in the overall project;

ii. All payments made to date;

iii. All change orders approved and pending to date;

iv. The percentage of the project that is completed, and the percentage of the contract cost remaining; and

v. The funds available to complete the project, including all change orders that were executed or are pending.

4. For change orders that must be approved by the Division pursuant to (a)2 above, the school district shall file with the Division the following:

i. Two copies of the change-order request indicating in detail the scope of the change order and the basis upon which the proposed change order may be approved pursuant to this subchapter;

ii. A certification of the availability of funds per (a)3 above; and

iii. A certification that no other solution is possible when a proposed change order affects the final eligible costs of a school facilities project, and that no excess scopes are proposed for inclusion in the project in lieu of the final eligible costs.

(b) Upon receipt of all materials required in (a) above, the Division shall promptly undertake its review and determine whether a proposed change order is necessary. If approved, a copy of the change order request marked "Approved" by the Division shall be sent to the school district.

(c) When the aggregate value of change orders undertaken pursuant to (a)1 above exceeds 20 percent of the total contract-award amount or the total project cost, necessitating Division approval pursuant to (a)2iii above, the school district shall submit on a form prescribed by the Commissioner and certified by the district board of education secretary a summary of each change order approved, the justification for each change order, and the change in the contract amount.

N.J. Admin. Code § 6A:26-4.9

Amended by R.2004 d.214, effective 6/7/2004.
See: 36 N.J.R. 243(a), 36 N.J.R. 2733(b).
In (a), deleted the N.J.A.C. reference in the introductory paragraph.
Amended by R.2007 d.81, effective 3/19/2007.
See: 38 N.J.R. 4533(a), 39 N.J.R. 899(a).
Inserted "school" preceding "district" throughout.
Amended by R.2013 d.145, effective 12/16/2013.
See: 45 N.J.R. 1026(a), 45 N.J.R. 2557(a).
Section was "Submission of change orders for non-Authority projects". Rewrote the section.