SCOPE CHANGES - 6834

(Revised: 03/2025)

(Revised and Renumbered from 6863.)

What is scope? The scope of a project is what will be constructed (or acquired) and for what purpose. Thus, scope encompasses both the physical characteristics of the project and the intended program use. For projects included in the Budget Act, the scope can typically be found in the COBCP narrative.  For other projects, scope is established through a PWB action (see Section 6823).

Scope changes require Finance approval.

Any substantial changes to a project must be reviewed and approved by Finance.  Finance determines whether the proposal meets the threshold for a scope change based on a review of the facts on a case-by-case basis and in consideration of legislative intent. 

This approval must be granted before the department can make any expenditures to redesign the project or to revise the plans unless those revisions are authorized in the Budget Act or other subsequent legislation.  The consequences of unapproved scope changes can be severe, including project termination.

Sections 13332.11(h)(2) and 13332.19 require Finance to report approved scope changes to the Legislature.  In practice, this restriction and related notification requirement begins with project authorization, even before preliminary plans are considered by PWB.

After Finance approves a scope change and the Legislature has been noticed, the scope change will be considered by PWB at its monthly meeting.

Guidelines to determine which project changes are potentially substantial

A department must discuss the following with its Finance capital outlay analyst to determine whether a proposal results in a scope change:

1. Changes to the approved functionality, which include modifications that would significantly:
   
   
   1. Add a new function that was not approved by the Legislature.
   2. Eliminate space for a function previously approved by the Legislature.
   3. Change capacity for a program activity (examples may include changing the number of students in a classroom building or inmates served in a Department of Corrections and Rehabilitation project).
   4. Alter the ratios in multi-use space.
      
      
2. Significant changes to the physical characteristics of the real asset, such as facility size, shape, and major structural characteristics. Examples include adding or subtracting floors to a building, combining two separate buildings into a single building, or significantly changing square footage or acreage.

Source references for project scope: A project’s scope is defined in the following source documents:

1. For Budget Act projects, the COBCP: A detailed description of project scope is required in the COBCP (Section 6808). This description becomes one of the primary references for later interpretation of potential scope changes.

    

2. For non-Budget Act projects, the scope is defined in a PWB agenda item to establish cost, scope, and schedule.

 Agenda packages for scope changes:  Provide all information requested in Section 6822, including the standard fiscal reporting requirements and the agenda package, and the following additional information:

1. The specific components of the scope change.
2. An explanation describing the need for a scope change.
3. The effects of the scope change, including cost, additional regulatory reviews, CEQA analysis, etc.