Agenda Item
v. Capital Improvement Projects ~ Ratify Change Order ~ Evergreen Construction ~ # 01630 and #01430 for Montclair ES and Briarlake ES ~ Change Order No. 2 (Not to Exceed $984,748) ~ Updated 3.6.206
Summary: Presented by: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
Request: It is requested that the DeKalb County Board of Education approve ratify Change Order No. 2 to Evergreen Construction for the Montclair Elementary School (#01630) and Briarlake Elementary School (#01430) HVAC Projects in the amount of $984,748 from the Local Capital Project Fund.
Why: Approval Ratification of Change Order No. 2 will provide for the settlement and closeout of outstanding Items of Change* (“IOC”) for the Montclair ES and Briarlake ES HVAC projects.
Items of Change: refer to specific, documented alterations to the original project scope, budget, or schedule, commonly formalized through change orders. These adjustments often result from unforeseen site conditions, design revisions, material substitutions, or owner-driven changes to the project requirements.
Details: On April 21, 2025, the DeKalb County Board of Education (“the Board”) approved the following change orders to Evergreen Construction:
Change Order #1 - Montclair ES HVAC project - Not to exceed $549,427
Change Order #1 - Briarlake ES HVAC project - Not to exceed $523,709.
Pursuant to discussions with the Construction Manager and an internal evaluation of project records, DeKalb County School (DCSD) staff conducted a review of outstanding legacy Change Order* requests associated with the Briarlake ES and Montclair ES projects. The review focused on (1) contractual entitlement for the work performed and (2) compliance with DCSD authorization and Change Order Management procedures. Legacy Change Order: older items (change orders) that are unresolved past changes (outstanding or pending) from earlier stages of a project that were not finalized or approved that are essential for documenting adjustments to the project. The review determined that portions of the work reflected in the change order requests were performed without advance written authorization by the owner or a duly authorized representative of the DeKalb County School District (DCSD), and in certain instances without a fully executed change order prior to performance. This process deviates from DCSD standard construction contract requirements, which are consistent with AIA A201-2017 General Conditions and require that all changes in the work be approved. Notwithstanding these procedural deficiencies, DCSD staff’s analysis indicates that limited entitlement exists for certain portions of the work reflected in the IOC requests. To resolve these matters efficiently and in a fiscally responsible manner, staff recommend a negotiated compromise settlement.
Briarlake Elementary School: $477,121
Montclair Elementary School: $507,627
These amounts represent a global settlement of all outstanding IOC-related issues for each project and are structured to:
Compensate only those costs for which limited entitlement exists.
Preserve DCSD contractual rights and expectations for compliance; and
Avoid additional costs associated with prolonged claims analysis or litigation.
Approval Ratification of this settlement will allow DCSD to close out outstanding IOC matters for these projects, maintain accurate financial records, and reinforce proper change order management practices going forward.
Financial impact: The total amount of $477,121 for Evergreen Construction Change Order No. 2 will be allocated from the general contractor cost code:
(F300CIP.01430.GENCONTR.3051) under the Local Capital Project Fund.
The total amount of $507,627 for Evergreen Construction Change Order No. 2 will be allocated from the general contractor cost code:
(F300CIP.01630.GENCONTR.4062) under the Local Capital Project Fund.
Contact: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations, 678.676.0168
Mr. Hans Williams, Director of Planning & Capital Programming, Division of Operations, 678.676.1588
Mr. Artis Johnson, Program Director, Division of Operations, 404.790.8985
Effective: Upon Board Approval
Status: Pending Approval by the Office of Legal Affairs
CHRONOLOGY OF THE AGENDA ITEM
Change Order -Settlement
Evergreen Construction
Montclair ES and Briarlake ES HVAC Projects
Scope:
Approval of the Settlement and Final Payout to Evergreen Company - Change Order
No. 2 under the following projects:
• CIP Project: #01630. Montclair Elementary School
• CIP Project -#01430. Briarlake Elementary School
Background:
On April 21, 2025, the Dekalb County Board of Education (“the Board”) approved
the following change orders to Evergreen Construction:
• Change Order #1 - Montclair ES HVAC project- Not to exceed -
$549,427
• Change Order #1 - Briarlake ES HVAC project -Not to exceed -
$523,709.
Review
Pursuant to discussions with the Construction Manager and an internal evaluation of
project records, DeKalb County School (DCSD) staff conducted a review of
outstanding legacy Change Order* requests associated with the Briarlake ES and
Montclair ES projects. The review focused on (1) contractual entitlement for the
work performed and (2) compliance with DCSD authorization and Change Order
Management procedures.
Notwithstanding these procedural deficiencies, DCSD staff’s analysis indicates that
limited entitlement exists for certain portions of the work reflected in the IOC*
requests; to resolve these matters efficiently and in a fiscally responsible manner,
staff recommend the following negotiated compromise settlement amounts:
• Briarlake Elementary School: $477,121.00
• Montclair Elementary School: $507,627.00
Resolution
Approval of this settlement will allow DCSD to close out outstanding IOC matters
for these projects, maintain accurate financial records, and reinforce proper Change
Order Management practices going forward.
*Items of Change (IOC): refer to specific, documented alterations to the original
project scope,, budget, or schedule, commonly formalized through change orders.
These adjustments often result from unforeseen site conditions, design revisions,
material substitutions, or owner-driven changes to the project requirements
*Legacy Change Order: older items (change orders) that are unresolved past
changes (outstanding or pending) from earlier stages of a project that were not
finalized or approved that are essential for documenting adjustments to the
project.