Change Order Solution 2 Homeowner Managed Construction Policies and Procedures Version 5.1 12-21-2018 (Restore Louisiana Homeowners Program)

FAQ#: 76 published 2-7-2019

When unforeseen conditions present themselves in the course of construction related to program identified scope that necessitate a modification to the Estimated Cost of Repair, or "Scope," change orders will be accepted, reviewed, and adjudicated.

A change order process, managed by the Program Administration, will allow applicants to submit to their CTA a request for a change in scope to rectify the Scope (additive and deductive) according to established program rules, policy, and guidelines. All change orders require approval by the state, and applicants are required to acknowledge that changes will be made to their Grant Agreement, prior to state approval.

Additionally, all additive change orders (ACO) will be processed at any time after NTP in eGrants using the Unforeseen Condition Change Request Form located under Appendix G. A signed ACO pdf from Xactimate will be uploaded by the CTA to eGrants along with any supporting photos of documents from the applicant's contractor in reference to additional scope and/or actual photos of unforeseen damages are required.

A deductive change order (DCO) can be processed in eGrants at any time by the CTA after NTP and prior to Funds Disbursed. A signed DCO pdf from Xactimate will be uploaded to eGrants by the CTA with the applicant's acceptance of the scope not being completed and not being funded by the Program. Additional photos of the line items not being completed are not required.

ACO and DCO acceptance forms must be signed. If an applicant refuses to cooperate and sign the DCO, Cohn Reznick will be brought in as an independent monitor. Cohn Reznick will contact the applicant in an effort to resolve the issue and will attempt to have the applicant agree to work or sign the DCO. Cohn Reznick will also notify OCD-DRU when these circumstances arise, and OCD-DRU will also work to have the applicant agree to work or sign the DCO.

Continued efforts should be made to contact applicants that may be temporarily unavailable (e.g. hospital stays, out of town, etc.). An applicant that is temporarily unavailable is not the same as an applicant that refuses to cooperate and/or execute acceptance forms.

Appendix G: Unforeseen Condition Change Order Request Form

Editors Note:

  • Once the applicant has submitted an amendment to the original contractor / change order to the original contract the applicant's CTA will process the Change Order Request.
  • MHU: If elevation is required, the cost will be added in addition to the Program cap or final project cost, whichever is lower, as a construction change order after grant closing.
  • Definition of Unforeseen Condition
    Unforeseen Condition: Repair scope identified during the construction process that are necessary to deliver a habitable structure that were not documented during the Damage Assessment. Unforeseen conditions include, but are not limited to concealed, hidden, or otherwise unobservable conditions that cannot be readily identified without the benefit of destructive and/or laboratory and/or expert testing. Appendix H provides the procedure for change order processing.
  • Version 5 Clarified that Additive Change Order (ACO) and Deductive Change Order (DCO) acceptance forms must be signed by the applicant

Research Resources:

  • Change Order Solution 2 Homeowner Managed Construction Policies and Procedures Version 5.1 12-21-2018


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