Construction Program Management and Inspection Guide

Verify that proposed changes are consistent with sound
design and construction practices and are compatible with
the objectives sought in the original design and
environmental clearances. Ensure that decisions are in the
public interest, are not swayed by the expediency of
construction convenience, and are not counter to the
intended design concepts.
Support cost-effective changes that improve aesthetics,
reduce overall construction costs, and improve the safety of
the highway. Verify if project personnel take steps to
incorporate these advantages into the project (e.g., an
unexpected surplus of excavation becomes available that
could be placed within an interchange loop or used to flatten
embankment slopes, thus eliminating guardrail and
increasing the safety features of the highway).
Become familiar with the Division/STA Stewardship
Plan, the definition of major and minor changes, and the
approval process on full oversight projects; refer to 23 CFR
635.102 and 23 CFR 635.120. Evaluate the reasonableness of
unit prices, labor, overheads (field and unabsorbed home
office), and rental rates established for items of work to be
performed. Since the cost to process a change order is a
direct project expense, consider the following “rules of
thumb” when evaluating changes: obtain a better product at
no increase in cost or time; obtain an equivalent product at a
Appendix D: Inspections-in-Depth
CONSTRUCTION PROGRAM MANAGEMENT AND INSPECTION GUIDE (5/01/04)
savings in cost or time; use a change when the product as
designed can not be constructed at no fault of the contractor
(differing site conditions, “acts of God,” etc.).
Ensure that project personnel have evaluated and
documented the effect of the contract change to the
approved project schedule. Include the appropriate time
extension on the change order; refer to 23 CFR 635.121.
Contract Time Charges,Time Extension,
Liquidated Damages, and Cost Control
Verify that project personnel are assessing the correct time
charges. Compare work completed, as noted in project
diaries, to contract time charges. Evaluate the contractor’s
critical path method schedule to support time charges.
Ensure that contractors are provided formal warning when
work is behind schedule and that corrective actions are
requested.
Ensure that the correct liquidated damages are assessed
on projects that exceed the allowable contract time; refer to
23 CFR 635.127.
Review contract expenditures and changes to ensure that
the work is constructed in accord within the approved scope,
cost, and termini.
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