This section applies to construction contracts.

      (a)   COR authority. The contracting officer may authorize a warranted COR to issue change orders. Authorization must be in writing, on a contract-by-contract basis, and must identify any limitations. For example, identify dollar limitations or specify that authority is only valid in emergency situations.

      (b)   Additional restrictions. The Contracting Officer should provide the following instruction to the COR as part of the written authorization:

           (1)  For any single change order, the COR may perform some or all of these actions:

                (i)  Determining the need for a change.

                (ii)  Preparing the Government’s cost estimate.

                (iii)  Conducting negotiations.

                (iv)  Issuing the change order.

                (v)  Inspecting the work.

           (2)  For an unpriced change order, if the COR personally performs all the actions in paragraph (1) of this section, the change order must be reviewed by a designated official before issuance or definitization.

      (c)   Review change orders. For unpriced change orders when the COR personally performs all actions, the contracting officer must either personally review each change order or designate a capable official to perform the review. Consider designating the COR’s immediate supervisor or a higher-level official within the organization. Avoid designating more than one official to review change orders issued under an individual contract.

      (d)   Coordination of change orders. Issue change orders only after coordination, as appropriate, with quality control, finance, audit or other technical personnel.