Metro - File #: 2025-0465

• File #: 2025-0465
• Type: Informational Report
• Status: Agenda Ready
• File created: 5/20/2025
• In control: Construction Committee
• On agenda: 7/16/2025
• Title: RECEIVE AND FILE Office of the Inspector General Construction Change Order Spot Check Report for the period March 1, 2025, to May 31, 2025.
• Indexes: Beverly Hills, Bids, Budget, Budgeting, Construction, Contractors, Contracts, Informational Report, Intersections, Labor, LAX/Metro Transit Center Station, Los Angeles International Airport, Metro Center Street Project, Metro Rail D Line, Metro Rail K Line, Metro Vision 2028 Plan, Procurement, Program, Program Management, Project, Project management, Safety, Statistics, Strategic planning, Transfers, Transit centers, Twenty-eight by '28 Initiative, Variance, Westside Cities subregion, Westside Subway Extension/Purple Line Extension Phase 2, Westside Subway Extension/Purple Line Extension Phase 3, Westside/Central Service Sector, Wilshire/Rodeo Station

Meeting_Body
CONSTRUCTION COMMITTEE
JULY 16, 2025

Subject
SUBJECT: OFFICE OF THE INSPECTOR GENERAL CONSTRUCTION CHANGE ORDER SPOT CHECKS

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE Office of the Inspector General Construction Change Order Spot Check Report for the period March 1, 2025, to May 31, 2025.

Issue
ISSUE

On January 25, 2018, the Metro Board directed the Office of the Inspector General ("OIG") to conduct random spot checks on change orders for the construction projects listed in the quarterly program management report to ensure that the CEO Delegation of Authority to approve Construction Change Orders Policy is performing in the manner desired by the Board of Directors.

Background
BACKGROUND

The OIG's Construction Change Order Spot Check Program ("Spot Checks") focuses on approved change orders and modifications that exceed $500,000. The four change orders in this report were selected from the Program Management Quarterly Major Project Status for the period of March 1, 2025, to May 31, 2025. The OIG gathers the data, reviews all the change orders over $500,000, and selects change orders from the major projects. The information for the Spot Checks was collected from the Program Management Information System (PMIS), which is the department's database system. Also, virtual meetings and telephonic interviews were conducted with Metro Program Management, Project Control, and Procurement staff from each involved project office.
For each Spot Check, we summarized:

* Description of the change order,
* Change order detail,
* Scope of Work,
* Budget,
* Schedule (Time to execute the change order),
* Safety, and
* Recommendations (lessons learned).

Metro's Program Management or Control department has provided input to this report before its issuance, and they are asked to provide written responses to the recommendations in this OIG Spot Checks Report within approximately 30 days after this Report is issued....