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Change orders must be within the scope of the contract. The determination of whether the change order is within the scope of the contract or not is a fact specific determination. Change orders that are outside the scope of the contract and that exceed the public bid threshold (currently $250,000 for public works and $60,000 for materials and supplies) must be let out to bid. The Attorney General (AG) has opined that any additional public work outside of the scope of the existing contract, even if below the public works bid threshold, should be negotiated or let out for public bid. AG Op. No. 03-0263.
R.S. 38:2222(A) requires that each change order shall be recorded by the public entity which entered into the contract in the office of the recorder of mortgages in the parish where the work is to be done or if not a public work, where the entity is domiciled, not later than 30 days after the date of the change order which requires that the recordation take place. The requirement applies to:
Ø Change order to a public works contract or to a contract for materials and supplies that adds an amount of 10% or more of the original contract amount, if the additional amount is at least $10,000 or
Ø All change orders to a contract aggregating to an amount of 20% or more of the original contract amount if the additional amount is at least $10,000.
Ø The original contract, if not previously recorded, shall be recorded with the change order.
Louisiana Legislative Auditor website: 04/25/2025 10:34:02 PM
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