Policy 7.065

Errors and Omissions of Construction-Related Professionals

1. All projects are subject to a review for the Professional's errors and omissions and reported to the Board.

2. All Contingency Change Authorizations (CCA), Authorizations to Adjust Contingency (AAC), Construction Change Directives (CCD), and Change Order Request Proposals (CORP), hereafter referred to as "changes," will be classified as to cause.

3. Classifications will include one for errors by the Professional and one for omissions by the Professional. The following definitions will apply:

1. Errors.-- Generally, an error would include the cost for "rework." This would be work that had been installed, fabricated, or otherwise created in accordance with plans and specifications; but the design was in error and the work needs to be removed or altered to achieve the required result. In such instances, the District had already paid for the design and the work, and the "rework" provides no "value added."

2. Omissions.-- Generally, an omission is an item of work that the Professional should have, but did not, include in the plans and specifications. The District had no previous cost for this item and would have paid for it had it been included in the original plan and specifications. Thus, this change provides "value added."

4. The Associated Costs will be determined as follows:

1. Errors: The entire cost of all non-value added work.

2. Omissions: The premium cost of performing the work the Professional failed to include. If that cost could not be clearly established, then ten percent (10%) of the value of the work added will be assumed to be the premium cost.

3. In either case, the professional services needed to remedy an error or an omission will be borne by the Professional.

5. If the combined Associated Costs of errors and omissions for a project exceeds one percent (1%), staff shall review the project with participation by the design professional and issue a report to the Board with recommendations regarding the errors and omissions of the Professional.

6. Information announcing the total Associated Costs of all errors and premium costs of omissions for a completed project will be available to selection committees.

7. Nothing in this Policy will preclude the District from seeking reimbursement from the Professional.

8. To document that the necessary review of changes has occurred, one of the following statements will be included on all changes submitted by the Professional to the District:

1. "The enclosed changes have been examined and found to be necessary and DO NOT represent any additional cost to the School District other than value added. The cost information for this work is complete and detailed. The cost has been examined and is fair and reasonable. This being the case, the above have been approved and are being recommended to the District;" OR

2. "The enclosed changes have been examined and found to be necessary and DO represent additional cost to the District other than value added. The cost information for this work is complete and detailed. The cost has been examined and is fair and reasonable. This being the case, the above have been approved and are being recommended to District."

9. Changes which result from the following will not be considered to be the responsibility of the Professional:

1. Unforeseen conditions such as unidentified soils or site conditions or uncharted utilities or structures which received reasonable investigation prior to design completion;

2. Changes in applicable codes, ordinances or other regulations or the interpretations thereof after design has been permitted;

3. Design modifications offered to make improvements to the project exclusive of modifications needed to accomplish the original design intent; or

4. Changes caused by the District which occur after the design has been permitted.