New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 30 - LOCAL FINANCE BOARD › Subchapter 11 - CHANGE ORDERS AND OPEN-END CONTRACTS › Section 5:30-11.3 - General requirements for all change orders

Current through Register Vol. 56, No. 14, July 15, 2024
(a) No changes in
				quantities, work performed, services rendered, materials, supplies or equipment
				delivered or provided shall be authorized, permitted or accepted except by the
				procedures established herein. All change orders unless otherwise stated in this
				subchapter shall be subject to the following:
1.
				Each change order shall be in writing and shall be numbered consecutively (beginning
				with number one) and attached to the original purchase order or contract for each
				project.
2. Change orders which result
				in payment reduction below the originally contracted price may be made by locally
				established procedure, provided that any change orders increasing cost on the same
				contract shall include reference to such reductions.
3. Quantities of items or work shall not be
				changed in such a manner as to nullify the effect of the competitive determination
				of lowest responsible bidder which was made at the time of contract award, if at
				said time the changes could have been reasonably foreseen.
4. Responsibility required by these rules to be
				exercised specifically by the governing body, including authorization of change
				orders, shall not be delegated except for minor field (site) modifications pursuant
				to 5:30-11.4.
5. Change orders may be executed by the
				representative appointed by the governing body but the responsibility for the
				authorization of change orders shall not be delegated by the governing body except
				for minor field (site) modifications pursuant to N.J.A.C. 5:30-11.4.
6. Change orders shall be used to change the
				number of units or items originally advertised and contracted for, provided that:
i. Unit prices or a price methodology were sought
				in the original specifications and included in the contract;
ii. The original specification and the contract
				included a provision that the unit prices could be so used; and
iii. If (a)6i and ii above were not contained in
				the original specification, a change order shall not be issued.
7. Change orders shall not be used to
				substantially change the quality or character of the items or work to be provided,
				inasmuch as such would have been a determining factor in the original
				bidding.
8. Change orders shall not
				serve the purpose of escalation clauses and, therefore, shall not be utilized to
				effectuate upward price adjustments.
9.
				Total number of change orders executed for a particular contract shall not cause the
				originally awarded contract price to be exceeded by more than 20 percent unless
				otherwise authorized by these rules.
10.
				If proposed change orders do exceed the 20 percent limitation of (a)9 above, no work
				shall be performed or purchases made until the procedures of
				5:30-11.9 have been completed. If the
				governing body determines issuance of the change order is not justifiable, a new
				contract shall be executed in accordance with the Local Public Contracts
				Law.
11. Before authorizing any change
				orders resulting in additional expenditures, the availability of funds shall be
				certified in writing by the chief financial officer or certifying finance officer,
				as appropriate.
12. The 20 percent
				limitation of (a)9 above shall not apply to emergency situations as defined within
				40A:11-6.
13. Change order authorizations shall not be
				withheld until the completion of the entire project.