Red Flags of Change Order Abuse

These are some “red flags” of change order abuse

  • Low bid contract awards followed promptly by change orders that increase the price of the contract
  • Sole source contract awards just below the competitive bidding threshold, followed promptly by change orders that increase the value of the contract
  • Numerous or questionable change orders for a specific contractor approved by the same project official
  • Poorly documented change order requests and approvals
  • Change order request is approved at a higher level than that of the original procurement request
  • Request for a change order comes from a different organization than the procuring entity
  • Weak controls and lax procedures regarding the review and approval of change orders, e.g., inadequate segregation of duties under which the same project official determines the need for and approves the request for a change order