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Click here for the Palm Beach County CMAR Services for PBSO Headquarters Renovations Project

Palm Beach County Office of Inspector General Releases Report on Change Order Management Weaknesses in the County’s Contract for the Sheriff’s Office Headquarters Renovations Project.

The Palm Beach County Office of Inspector General (OIG) released a report identifying internal control weaknesses in the management of change orders for the Construction Manager at Risk (CMAR) contract for the Palm Beach County Sheriff’s Office Headquarters Renovations Project (No. 11206). 

The OIG found that the County paid additional construction management and insurance fees without required supporting documentation and, in some cases, exceeded the terms of the Contract. The audit also determined that multiple change orders were paid before approval by the Palm Beach County Board of County Commissioners. 

The lack of supporting documentation for additional costs reduces fiscal transparency, limits the County’s ability to independently verify that public funds are being used appropriately, and increases the risk of unnecessary project costs. Additionally, making payments before proper change order approval exposes the County to potential waste, unauthorized expenditures, and challenges in recovering funds for work that may not meet required standards.

The OIG identified $903,387.78 in Questioned Costs resulting from payments made before proper approval, as well as $223,243.30 in Potential Cost Savings stemming from payments that exceeded Contract terms.

The OIG made seven (7) recommendations to assist the County in strengthening internal controls over construction-phase activities, including processing payment applications and management of change orders, and provide assurance that costs are transparent, properly supported, and authorized before public funds are expended. The County concurred and accepted six (6) of our recommendations and did not accept one (1) recommendation.