04-05-2009, 04:57 AM
FYI
From: CoH Department of Finance
Limited Scope Performance Audit Report Department of Public Works CIP Contract Change Orders and Supplements for FY 2006-2007
Executive Summary, paragraph 2:
“While contract supplements and change orders are routine components of construction management and cannot be completely avoided, the accepted industry average is between + or - 10% of original contract values. Of the 16 professional services contracts active during the FY 2006-2007 audit period, contract supplements issued to date represent a 90% increase over original contract amounts. Of the 60 construction contracts active during FY 2006-2007 audit period, change orders issued to date range from -6% to +114% of original contract amounts. Of the 14 professional services contacts and 14 construction contracts meeting our audit sample criteria of greater than + or - 10% of original contract values (or outside the accepted industry average), 64% remain open and exceed their original contractual completion dates and 50% remain open and exceed their current contractual completion dates.
(My take: This in-house audit report indicates that from one department millions of dollars have been mismanaged. It would seem appropriate in this economic climate and budget crises for CoH to initiate audits of the other budget heavy departments - Parks & Recreation, Transportation, etc.)
From: CoH Department of Finance
Limited Scope Performance Audit Report Department of Public Works CIP Contract Change Orders and Supplements for FY 2006-2007
Executive Summary, paragraph 2:
“While contract supplements and change orders are routine components of construction management and cannot be completely avoided, the accepted industry average is between + or - 10% of original contract values. Of the 16 professional services contracts active during the FY 2006-2007 audit period, contract supplements issued to date represent a 90% increase over original contract amounts. Of the 60 construction contracts active during FY 2006-2007 audit period, change orders issued to date range from -6% to +114% of original contract amounts. Of the 14 professional services contacts and 14 construction contracts meeting our audit sample criteria of greater than + or - 10% of original contract values (or outside the accepted industry average), 64% remain open and exceed their original contractual completion dates and 50% remain open and exceed their current contractual completion dates.
(My take: This in-house audit report indicates that from one department millions of dollars have been mismanaged. It would seem appropriate in this economic climate and budget crises for CoH to initiate audits of the other budget heavy departments - Parks & Recreation, Transportation, etc.)
Assume the best and ask questions.
Punaweb moderator
Punaweb moderator