AGC Calls for Change Order Oversight & Funding to Implement VA Reforms
This week, AGC called on the House Appropriations Subcommittee for Military Construction and the Department of Veterans Affairs (VA) to conduct oversight into DOD construction agencies’ delay in executing and paying change orders on construction projects and need for adequate VA construction program funding to implement a host of recent reforms.
AGC urged the Subcommittee to investigate serious problems with the U.S. Army Corps of Engineers and Naval Facilities Engineering Command in regards to timely execution of and payment for change orders. Delays in executing change orders on construction projects can and have led to substantial project delivery delays, further cost-overruns, and strained relationships between contractor and owner that often end in litigation. This problem jeopardizes the safe, efficient and timely delivery of construction projects as well as the financial stability of many construction companies, especially small ones.
AGC also urged the Subcommittee to reject the president’s proposed 45 percent—$750 million—cut to the VA major and minor construction accounts in FY 2017. The VA needs adequate funding to implement the reform requiring a federal construction owner other than the VA—like the Army Corps—to execute VA construction projects valued at or more than $100 million. The VA is also implementing improvements to its own construction program, as suggested by AGC. These reforms include establishing decision review boards, conducting industry peer reviews of projects, adopting an electronic construction management tool, and providing more training for staff.
For more information, please contact Jimmy Christianson at 703-837-5325 or christiansonj@agc.org.