County Executive Leopold Reduces Change Orders by $38 Million and Improves Efficiency
Percentage of Purchase Orders down below 6 percent
Annapolis, MD (December 1, 2011)
"Every dollar counts in this difficult economy and government must change the way it does business to free up more money for capital projects," County Executive Leopold said. "In a short period of time the changes we have made have paid dividends."
The Leopold Administration took several steps to improve the design process a year ago. First, the Purchasing Manual was revised to include Qualifications Based Selection for design consultants, creating an efficient negotiation process between design consultants and the Department of Public Works. Next, two Project Control Specialists were hired with County Council approval. Their job is to critically scrutinize change order requests, assist in the negotiation process with design consultants and contractors and further develop project controls to improve the overall project delivery process.
Performance metrics show that change order activity, as a percentage of open and active purchase orders, has declined from 11.94 percent in May 2009 to 5.95 percent in November 2011. Applying that decrease to an average of $615 million in capital projects works out to a difference of approximately $38 million.— County Executive John R. Leopold today announced that a year of implementing a new system of planning, designing and executing construction projects has resulted in a reduction of more than $38 million in change orders.