LADWP Statement Regarding the Controller’s Audit of the
City’s Change Order Management Process
Los Angeles Department of Water and Power General Manager Marcie Edwards issued the following statement today regarding the Controller’s KPMG audit of the City’s change order management process:
“We appreciate the Controller’s evaluation of LADWP’s construction change order management processes. This audit recognizes that the policies and procedures that the Department has in place are able to limit change orders from the outset, appropriately manage change orders if they must occur, all while limiting disruption of water and electric service to the public and to our customers. While there is always room for improvement in our processes, we see that the amount of advance work that we do when issuing contracts is effective. Our policy of defining and negotiating the scope of change orders in contracts in advance allows us to plan ahead for variations of cost that may come from a change order. It also limits the delay of needing to negotiate new contracts as part of a change order, saving the Department and our customers both time and money.
We are currently reviewing the recommendations and putting together an implementation plan to further tighten our processes.”