Monthly Archives: March 2018

  • 0
Pismo Beach, Bello Street Veterans Building

Following Proper Contracting Procedures Results in Cost Savings Benefit

By Anthony (Tony) Morelli, Southwestern Regional Compliance Manager.

It was recently brought to my attention that the Public Works Director for the City of Pismo Beach would ask the City Council to approve an upcoming agenda item regarding a change order for a grading and paving contractor, in the amount of $137,380.00.

Upon additional research, I discovered that the intended change order was for their Bello Veterans’ Hall Parking Lot Project. This was located on the same street as their Bello Street Paving Project currently underway by a grading and paving contractor per his original contract issued by the city for $124,554.00.  Somewhere along the way, city staff asked the contractor for a quote to also pave, stripe and install wheel stops in their Bello Veteran’s Hall Parking Lot. The contractor provided an additional estimate to do the extra work for $137,380.Anthony (Tony) Morelli, Southwestern Regional Compliance Manager

I reached out to the city to inform them that they really needed to bid-out the Bello Veteran’s Hall Parking Lot Project, since it obviously was a separate project and not a part of the original scope of work issued to the paving contractor. I further advised the city that contract change orders are generally written when their needs to be changes to the original contract, usually brought about by unforeseen circumstances and MUST fall within the original scope of the work.

Read More