Passaic’s 2024 paving contract closes out 22.7% over bid after six change orders — final payment on Tuesday’s agenda

JERSEY INTEL EXCLUSIVE

Passaic County commissioners are scheduled Tuesday night to sign off on the county’s 2024 road resurfacing contract — a job that, after six change orders, closes out at $5.65 million, 22.7% above the $4.61 million bid that won it. The last change order pushed the contract past the 20% limit state rules say should be crossed “only in limited instances.”

Six change orders, $1.04 million

Smith-Sondy won the 2024 job on May 21, 2024 (Resolution R-24-464) as the lowest of seven bidders at $4,609,362.68. The next-lowest bid, from J.A. Alexander, Inc., was $5,193,558.04. Most of the project was funded by a 2024 New Jersey Department of Transportation County Aid grant, the resolutions say.

The board then approved six change orders, according to the close-out resolution on Tuesday’s agenda:

• No. 1 — $223,447.00 (R-24-1045, Nov. 18, 2024) → $4,832,809.68
• No. 2 — $108,280.00 (R-25-0110, Feb. 11, 2025), for added traffic directors, flaggers and police costs → $4,941,089.68
• No. 3 — $274,901.23 (R-25-0573, June 17, 2025), for quantity adjustments and supplemental work including Maitland Avenue, Mountainview Boulevard and Main Street/Reeves Avenue in Bloomingdale → $5,215,990.91
• No. 4 — $108,280.00 (R-25-0905, Sept. 30, 2025), for added police traffic-director hours → $5,324,270.91
• No. 5 — $205,341.66 (R-25-1194, Dec. 9, 2025), for final quantities and supplemental work → $5,529,612.57
• No. 6 — $123,962.73 (R-26-0720, Aug. 11, 2026) → $5,653,575.30

Two of the six — Nos. 2 and 4 — are for the identical amount, $108,280.00, and both cover police traffic directors. Together they add $216,560.

Just under 20%, then over

After Change Order No. 5, the changes totaled $920,249.89 — 19.96% of the original award. Change Order No. 6 took the total to 22.65%.

New Jersey’s Local Finance Board rule on change orders, N.J.A.C. 5:30-11.9, says a change pushing a contract more than 20% over its original price should be allowed “only in limited instances” and that “generally such change orders are not justifiable.” It requires a written certification from the contractor, a request from the chief executive, a board resolution passed before the change order is executed, and a newspaper notice of the added cost.

Resolution R-26-0720 says the change “will result in the net sum of change orders for this project to be in excess of the 20% limit” and that it was considered “because it would be impractical to award a new contract for this additional work.” Attached is a July 15, 2026 letter from Smith-Sondy citing “unforeseen site conditions,” added work, “plan quantity discrepancies,” more police traffic directors and final field quantity adjustments, and saying stopping work “would cost significant delay and cost.” County Administrator Matthew P. Jordan’s July 29 memo joined the County Engineer and Public Works Committee in calling the change “justified.”

The posted Legistar file for R-26-0720 does not include a copy of the newspaper notice the rule requires, or a separate engineer’s statement. Neither is necessarily required to be posted online; Jersey Intel is preparing a records request for both.

Same contractor every year — fewer bidders

Board resolutions show Smith-Sondy has held Passaic County’s annual road resurfacing contract every year from 2020 through 2026:

• 2020 — $2,092,189.15 award (June 30, 2020)
• 2021 — $3,587,110.75 (June 22, 2021)
• 2022 — $4,577,274.95 (R-22-0694)
• 2023 — $4,612,140.92 (R-23-0750); $5,231,310.91 after the eight change orders listed at close-out, about 13.4% higher (R-26-0580)
• 2024 — $4,609,362.68; seven bids; $5,653,575.30 final
• 2025 — $6,131,147.14 including an alternate; one bid received (R-25-666); $6,808,961.78 after three change orders so far (R-26-0639)
• 2026 — $7,862,903.02; two bids received (R-26-0719, Aug. 11, 2026)

Each award was made after public bidding to the lowest responsible bidder, according to the resolutions. Nothing in the documents indicates wrongdoing by the contractor or the county.

The same night, the Paterson City Council’s Oct. 13 agenda (7 p.m.) includes a separate proposed award to Smith-Sondy of up to $768,923.41 to reconstruct and resurface Railroad Avenue and part of Governor Street (Res. #26:476, Bid No. 26.28).

Questions the documents raise

• Did the county publish the newspaper notice N.J.A.C. 5:30-11.9 requires for Change Order No. 6, and when?
• Was the No. 6 work already done before the Aug. 11 vote, given the contractor’s letter describes it as “final” field adjustments?
• Why were the 2024 plan quantities off enough to need repeated adjustments, and who prepared them?
• Why did bidding fall from seven firms in 2024 to one in 2025 and two in 2026?
• Will the county report the over-20% change order to the state Division of Local Government Services, as the rule requires?

Going Tuesday? The commissioners meet at 5:30 p.m. at 401 Grand Street, 2nd floor, Paterson. Ask about item 60, record the discussion if you can, and send video, notes or documents to jerseyintel@gmail.com or Tip Us.