Supplemental Engineering Agreements and Construction Change Orders

In general, any time an airport sponsor is contemplating a change to either the engineering agreement or the construction agreement for additional costs, there needs to be a cost analysis performed (reference Table 3-68 of FAA Order 5100.38D, Airport Improvement Program Handbook) and this is documented in a supplemental engineering agreement or construction change order, respectively. The supplemental engineering agreement and construction change order can take any format that works for the airport so long as it includes the following content: description of the change including how this changes the contract (e.g., time and/or cost), justification for the change, documentation that evaluates the cost of the change, a statement by the airport sponsor that the proposed cost of the change is reasonable and necessary, and any other appropriate supporting documentation. For Block Grant airports, NHDOT/Bureau of Aeronautics must review and determine concurrence with all supplemental engineering agreements and construction change orders; for non-Block Grant airports, FAA must do the review and evaluate for concurrence. All concurrences, if given, will be subject to the availability of funding.