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News Item #1174
[Commonwealth of Kentucky]
Questionable Change Orders Funneled Millions of Additional Dollars to Road Contractors
Posted: 16-May-2005 12:03AM CDT

A recent report on change orders issued by the Kentucky Transportation Cabinet determined that no intentional misuse has taken place; however, new controls on change orders have been placed.

A change order allows for payment in excess of the contract originally approved for a project; change orders are used to pay for unforeseeable events that occur during the completion of a project.

More information: Lexington Herald-Leader: Questionable change orders to state highway contracts put millions into road builders’ pockets, according to report (May 6, 2005) [Outside Link], Louisville Courier-Journal: Study says contractor influence raised cost; Kentucky finds no evidence of criminal wrongdoing (May 7, 2005) [Outside Link], Associated Press: Contractor influence cited in costly change orders (May 7, 2005) [Outside Link], Lexington Herald-Leader: Change orders criticized in report (May 7, 2005) [Outside Link]

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Updated: 16-May-2005 12:03AM CDT

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