Small Construction Contracts: Opportunities to Save Money and Reduce Risks

• King County delivers the majority of small construction projects using work order contracts, a contracting method the State Auditor’s Office states is not explicitly authorized by state law.
• The County has often used work order contracts for small construction projects beyond those meeting urgent or unplanned needs. Factors contributing to heavy use of work order contracts include barriers to using other contracting methods and lack of decision guidance and monitoring.
• The County can better mitigate risks of overpaying for construction when using work order contracts.

• The County Executive should monitor the use of work order contracts to comply with county policy and align with state law.
• The County should clarify the intended purpose of work order contracting and strengthen its procurement and administration.
• The County should provide decision guidance, remove barriers, and create incentives for departments and divisions to use other contracting methods rather than default to work order contracting.

Each year King County awards on average $20 million worth of contracts to deliver small construction projects, which are important for maintaining public facilities and ensuring county services for residents. Starting in fall 2015, the County Executive will initiate a second phase of procurement reform to increase efficiency and expand opportunities for small businesses. We examined how King County could strengthen contracting capabilities for delivering small construction projects in order to identify opportunities for advancing the goals of procurement reform.