IV.I. Construction Approval Process
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1. Authority to approve a construction contract
Authority to approve and execute a construction contract is delegated to specific persons depending on the projected amount of the construction contract, as follows:
- a. Construction contracts up to $100,000: The contract requires the approval of the Central Maintenance Supervisor.:
- b. Construction contracts between $100,001 and $250,000: The contract requires the approval of both the Central Maintenance Supervisor and the Executive Director.
- c. Construction contracts between $250,001 and $1,000,000: The contract requires the approval of the Central Maintenance Supervisor, the Executive Director, and the Capital Affairs Committee.
- d. Construction contracts greater than $1,000,000: The contract requires the approval of the Central Maintenance Supervisor, the Executive Director, the Capital Affairs Committee, and the Board of Directors.
2. Competitive Bid Requirement
All construction contracts require at least three competitive bids, except that the Central Maintenance Supervisor may, in the reasonable exercise of their discretion, waive this requirement for contracts that do not exceed $50,000, taking into account, for example, the following factors:
- a. A similar project was competitively bid in the past three years.
- b. The price of the project is not more than ten percent of a similar project from the prior year.
- c. The market for that type of project has not changed significantly since the last time it was competitively bid.
3. Change Orders
- a. The Central Maintenance Supervisor is authorized to approve change orders on construction contracts, except that when change orders on a single construction project cumulatively will exceed $100,000, any further change orders must be approved by the Executive Director.
- b. The Executive Director shall regularly report on the progress of significant construction projects and inform the Capital Affairs Committee and the Board of Directors of significant change orders.