Question for the City of Ada
Good afternoon all,
Cody is working on a road construction project and asked I sent this around. They have a unit price that was obtained in compliance with the competitive bidding act. They want to do a change order and utilize the unit price but vastly expand the volume of work. The increased volume will take them over the change order threshold for a new bid, but they would be keeping the same unit price. Has anyone successfully managed this type of issue without having to rebid it and just use the same unit price?
Daniel McClure, J.D., M.P.A.
Deputy General Counsel - OK Municipal League
405-528-7515
201 N.E. 23rd St., OKC, OK, 73105
[Oklahoma Municipal League] <oml.org> [LinkedIn Profile Tips to Improve Your Personal Brand - Business 2 Community] https://www.linkedin.com/in/daniel-mcclure-jr-53097920/
As you are aware there is a percentage limitation on the amount of change order under section 152 of the competitive bidding act. However look at the language below which purports to deal with add- ons for unit price items.
Title 61. Public Buildings and Public Works
[https://www.oscn.net/Images/Applications/search/WDFolderOpen.gif]https://www.oscn.net/applications/OCISWeb/index.asp?level=1&ftdb=STOKSTOklahoma Statutes Citationized
[https://www.oscn.net/Images/Applications/search/WDFolderOpen.gif] https://www.oscn.net/applications/OCISWeb/index.asp?level=1&ftdb=STOKST61 Title 61. Public Buildings and Public Works
[https://www.oscn.net/Images/Applications/search/WDFolderOpen.gif] https://www.oscn.net/applications/OCISWeb/index.asp?level=1&ftdb=STOKST61#PublicCompetitiveBiddingActof1974 Public Competitive Bidding Act of 1974
[https://www.oscn.net/Images/Applications/search/WDDocument.gif] Section 121 - Change Orders or Addenda
. Alternates or add items bid with the original bid and contained in the awarded contract as options of the awarding public agency shall not be construed as change orders under the provisions of the Public Competitive Bidding Act of 1974.
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From: Oama oama-bounces@lists.imla.org on behalf of Daniel McClure daniel@oml.org
Sent: Tuesday, March 9, 2021 11:45 AM
To: oama@lists.imla.org oama@lists.imla.org
Subject: [Oama] Question for the City of Ada
Good afternoon all,
Cody is working on a road construction project and asked I sent this around. They have a unit price that was obtained in compliance with the competitive bidding act. They want to do a change order and utilize the unit price but vastly expand the volume of work. The increased volume will take them over the change order threshold for a new bid, but they would be keeping the same unit price. Has anyone successfully managed this type of issue without having to rebid it and just use the same unit price?
Daniel McClure, J.D., M.P.A.
Deputy General Counsel – OK Municipal League
405-528-7515
201 N.E. 23rd St., OKC, OK, 73105
[Oklahoma Municipal League] <https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Foml.org%2F&data=04%7C01%7C%7Cdf2b9588f7734ec15eff08d8e3239375%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637509089231361460%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=DAiH0hR1A4RKcvYXiTV%2BYP91u53tZ4WLEDIZidF2Yiw%3D&reserved=0> [LinkedIn Profile Tips to Improve Your Personal Brand - Business 2 Community] <https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.linkedin.com%2Fin%2Fdaniel-mcclure-jr-53097920%2F&data=04%7C01%7C%7Cdf2b9588f7734ec15eff08d8e3239375%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637509089231371454%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=wsUpz6AdEqfc1mbCexwbxhPyTiOdGABYZWWAiECXZuQ%3D&reserved=0>
In Norman, if additional work based on unit pricing originally bid could be added to the contract, then it was done without rebidding under 61 O.S. §121 J.1 which states:
" If a construction contract contains unit pricing, and the change order pertains to the unit price, the change order will not be subject to subsection A or B of this section."
Subsection A or B referenced are the cumulative change order increase limits. That has been interpreted to mean that if work increases are based on unit pricing, then the 15% and 10% cumulative increase limits do not apply in this circumstance.
Hope this helps.
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From: Oama oama-bounces@lists.imla.org On Behalf Of Daniel McClure
Sent: Tuesday, March 9, 2021 11:46 AM
To: oama@lists.imla.org
Subject: [Oama] Question for the City of Ada
Good afternoon all,
Cody is working on a road construction project and asked I sent this around. They have a unit price that was obtained in compliance with the competitive bidding act. They want to do a change order and utilize the unit price but vastly expand the volume of work. The increased volume will take them over the change order threshold for a new bid, but they would be keeping the same unit price. Has anyone successfully managed this type of issue without having to rebid it and just use the same unit price?
Daniel McClure, J.D., M.P.A.
Deputy General Counsel - OK Municipal League
405-528-7515
201 N.E. 23rd St., OKC, OK, 73105
[Oklahoma Municipal League] https://nam12.safelinks.protection.outlook.com/?url=http%3A%2F%2Foml.org%2F&data=04%7C01%7Cjbryant%40omag.org%7C4f34e91454094bb8a36c08d8e32392e3%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637509089216894694%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=MPoG1%2FMOVObPUsM0SFkT%2BHwGfgy4L2DEQb6j8nPyLKs%3D&reserved=0 [LinkedIn Profile Tips to Improve Your Personal Brand - Business 2 Community] https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.linkedin.com%2Fin%2Fdaniel-mcclure-jr-53097920%2F&data=04%7C01%7Cjbryant%40omag.org%7C4f34e91454094bb8a36c08d8e32392e3%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637509089216904651%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=Dn3zTexd7YwYuCbbpDMrOMl3dJPb6upXqLVUgr6pzxg%3D&reserved=0
