Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 1 - Drinking Water Systems Emergency Loan Fund Program Regulations › Chapter 3 - Project Requirements › Subchapter 3 - Construction/Repair Phase › Rule 33-1-3.3.6

Current through June 25, 2024
3. 3.6.1 General.
1. In the event a determination is made by a
				  loan recipient after a construction contract is let that changes or
				  modifications to the original contract are necessary or would better serve the
				  purpose of the loan recipient, such loan recipient may, in 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 purchasing 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 and time
				  extensions must be necessary and reasonable, and eligible/ineligible costs must
				  be appropriately separated.
3. 3.6.2 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 staff for review and approval, in order to obtain a DWSELF 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 DWSELF loan eligibility/allowability determination.
3. The Loan Recipient may submit a complete
				  and fully executed change order which has been executed conditional upon a
				  DWSELF 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.
5. If possible, approval of a change order
				  should be secured from the Department before the work is started, particularly
				  for change orders requesting time extensions as per Section III.C.(6)(e) 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.
The Department may withhold payments to the loan recipient
					 if change orders are not submitted in a timely manner.
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. 3.6.3 Technical Review.
In order to allow the Department to perform a technical
					 review, requests for change order approvals must contain:
1. A completed change order form.
2. A clear and complete description of the
				  change.
3. A justification of the
				  need for the change.
4. Revised
				  plans, specifications, and contract documents, as needed.
5. Engineering computations and sketches, as
				  needed.
6. Clear site certificates
				  for any new real property or easements that may be required.
7. Any other permits or approvals that may be
				  required.
3. 3.6.4 Eligibility Review.
In order to allow the Department to perform an eligibility
					 review, requests for change order approvals must contain:
1. a separation of all items into eligible
				  and ineligible categories
2. for
				  change orders which alter an existing unit price or which add new related items
				  of work costing more than $10,000, exclusive of freight and shipping charges,
				  the contractor's cost and/or pricing data and the engineer's analysis of the
				  contractor's data.
3. Change orders
				  which increase or decrease the quantities of items in the contract with no
				  change in the unit price or which add new related items of work costing $10,000
				  or less, exclusive of freight and shipping charges, need not include the
				  contractor's cost and/or pricing data or the engineer's analysis of the
				  contractor's data.
3.3.6.5 Time Extensions.
1. Change orders which include time
				  extensions must be submitted to the Department no later than ten (10) days
				  after the current contract completion date, as specified in Section
				  III.C.(9)(d) of this regulation. 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 25% of the
				  original contract time, in which case justification for all time extensions
				  must be submitted to the Department for review and approval.
2. Construction and construction related work
				  which occurs after the date representing a 25% time extension to the original
				  contract time are allowable only to the extent approved by the Department
				  pursuant to review of the justification for all time extension change orders.
				  Construction and construction related work which occurs after the date
				  representing a 25% time extension to the original contract time, and for which
				  a time extension change order cannot be adequately justified by the loan
				  recipient and approved by the Department, are not allowable unless the
				  Department determines that the loan recipient is implementing all legal
				  remedies provided in the contract documents for failure to complete
				  construction when required.
Miss. Code Ann.
					 §
											41-3-16(3)(b)