Contract Modification Management Process

For Iowa DOT Contracts

Contract Modification Considerations:

1. Contract Modification required to accomplish the original concept of the project (i.e. omitted items, plan deficiencies, unforeseen conditions, etc.)

2. Contract Modification required to enhance the original approved project concept (i.e. incorporate new standards or details, etc.)

3. Contract Modification to accomplish other work rather than following the normal development process.  These typically are an extension of the project limits and result in selecting contractors on current contracts rather than awarding contracts by the low bid process.

Contract Modification Authorizations:

Contract Modification Type	District Constr.	Constr. Office	District Engr.	FHWA	Staff Action
Overruns/Underruns less than $100,000 per item	X
New Items less than $50,000	X
Overruns/Underruns greater than $100,000 per item  (2)		X		(1)
New Items greater than $50,000 per item  (2)		X		(1)
Extension of Contract Limits		X		(1)
Extension of Contract Limits with costs greater than $50,000  (3)			X	(1)	X
Plan revisions	X	X		(1)
Value Engineering		X		(1)
Materials and/or Equipment that cost less than $50,000 that is charged to a project   (4)	X
Materials and/or Equipment  that cost more than $50,000 that is charged to a project		X			X

(1) For projects with FHWA oversight

(2) Construction approval not required for payments per specifications or agreements with local agencies  (i.e. incentives, haul roads, detours)

(3) The District Engineer to submit Staff Action for approval by Division Director.  A Contract Modification is required contractually to extend project limits also.  The approved Staff Action number should be included on the Contract Modification for documenting management approval.  Note:  The Management Team may wish to revise PPM 300.02 to reflect use of the Staff Action for these change orders.

(4) This may also be authorized by Central Construction and Materials.