Nine associations representing construction contractors, subcontractors, and design professionals petitioned the Office of Federal Procurement Policy (OFPP) to alter how the office handles change orders.
The groups want the Federal Acquisition Regulation (FAR) amended to "make explicit" that before ordering a change to a construction contract, the contracting officer must assure that funds are available to pay for additional work being ordered.
“Our members are facing increasing numbers of instances in which a Contracting Officer will direct a change in the scope of work on a construction project, lacking funds available to pay for the increased costs being imposed upon the contractor,” the associations wrote in a March 18 letter to OFCPP Administrator Anne Rung.
The groups signing the letter included the Design-Build Institute of America, the American Council of Engineering Companies, the American Subcontractors Association, the Associated General Contractors of America, the Mechanical Contractors Association of America, the National Association of Surety Bond Producers, the National Electrical Contractors Association, the Sheet Metal and Air Conditioning Contractors’ National Association and The Surety & Fidelity Association of America.
They also recommended an amendment that would allow contracting officers to continue to make changes in the work within the general scope of the contract, at any time and without notice to sureties, “but only if funds are available to pay the costs of such changes.”
Related Stories
| Mar 30, 2012
CSI webinar: Durable & energy efficient building envelope design, April 24
This seminar will review recent changes in North America energy codes, examples of building enclosure wall assemblies being considered for code compliance, potential moisture management and durability challenges, and design tools that could be used to assess and minimize potential problems.
| Mar 30, 2012
Improved construction that followed seismic codes helped avert loss of life in Mexico temblor
A magnitude-7.4 earthquake that shook Mexico from Mexico City to Acapulco damaged hundreds of homes and sent thousands fleeing from swaying office buildings, yet no one was killed, according to early reports.
| Mar 30, 2012
Chicago may allow people to live in retail spaces
The Chicago City Council’s Zoning Committee approved a zoning change that will allow up to 50% of work space in low-intensity business districts to be used for living space.
| Mar 30, 2012
LEED growing fast in the housing rental market
Last year, developers of 23,000 U.S. multifamily housing units applied for LEED certification.
| Mar 30, 2012
Forest Stewardship Council critical of proposed LEED 2012 changes
According to the Forest Stewardship Council (FSC), the third draft of LEED 2012, if approved as written, would represent a step backward from the current Certified Wood Credit.
| Mar 22, 2012
Symposium on water efficiency: How much more water can be saved?
The Third International Emerging Technology Symposium by IAPMO and the World Plumbing Council features a session on water efficiency.
| Mar 22, 2012
Broker doesn’t have to inform contractor that insurer went broke, California court rules
A California appellate court ruled that an insurance broker did not have a duty to inform a subcontractor that a project’s insurer had gone bankrupt.
| Mar 22, 2012
Public agencies shouldn’t negotiate project labor agreements, says AGC official
When a public agency rather than the contractor negotiates a PLA with unions, it interferes with the right of employers and workers to reach their own agreements on working conditions and benefits, says Steve Isenhart, president of the Associated General Contractors of Washington.
| Mar 22, 2012
Proposed rule would let crane operators get licenses without prior city experience
The Bloomberg administration is considering letting operators of giant tower cranes get their license without requiring that they first run cranes as apprentices in the city for three years.
