Brief (1)
Current law requires the Department of Administration to consult with the Joint Committee on State Building Construction before approval of any change to a state building construction project which would cost $25,000 or more. HB 2017 raises that amount to $75,000 and allows the Joint Committee to adjust the amount thereafter to account for inflation or construction industry factors. Any adjustment would be limited to the increase in the building cost index compiled and published in the Engineering News Record.
The bill also establishes a procedure for change order review if a meeting of the Joint Committee is not planned for the next 10 days. Under the procedure, the Secretary of Administration would mail the proposed change order to the Joint Committee members. The change order is deemed reviewed unless two members request a meeting of the Joint Committee by contacting the Director of the Legislative Research Department within seven business days of the date the change order was mailed.
Background
The $25,000 threshold for review of a change order was established in 1974. The increase to $75,000 is designed to account for inflationary factors since that time. Change orders which are under that amount are reported to the Joint Committee monthly. The procedure for change order review when no meeting of the Joint Committee is scheduled codifies the current practice of the Joint Committee.
The State Architect appeared in support of the bill and also stated that the bill was supported by the State Building Advisory Commission. There were no opponents to the bill.
The House Committee of the Whole amended the bill to provide that future increases in the threshold are not to exceed the building construction index.
The fiscal note on the bill prepared by the Division of the Budget indicates that raising the threshold for review of a change order would save time for the Department of Administration and the Joint Committee on State Building Construction. The fiscal note also states the bill would avoid any costs related to delay of construction projects caused by change order review, but that a precise fiscal impact cannot be determined.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html