Division of Capital Asset Management and Maintenance's Planning, Design, and Construction Activities

This is a state audit of DCAMM, the Massachusetts agency that manages major public construction and real estate work, covering July 1, 2009 through June 30, 2011.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, the Office of the State Auditor (OSA) conducted an audit of DCAMM’s contracting activities for construction projects for the period July 1, 2009 through June 30, 2011.”

The auditor wanted to see whether DCAMM had good controls over construction contracting, including certification, oversight, and project management, and whether it followed the law.

“Our objective was to evaluate the adequacy of DCAMM’s controls over its contracting process from project initiation to final design and construction, including contractor certification, debarment, and evaluation and project management and oversight, to determine whether the controls DCAMM has established over these activities are adequate to ensure that DCAMM is achieving its goals relative to its construction activities in an economic and efficient manner and in compliance with applicable laws, rules, and regulations.”

DCAMM handles very large amounts of public construction money, so weak controls can affect costs, contractor quality, and public trust.

“During our audit period, DCAMM was administering 138 active construction projects with an estimated cost obligation of $1,906,808,414, ranging in value from $9,183 to $284,834,875.”

For residents, the issue is whether taxpayer-funded buildings are managed carefully, whether contractors are properly vetted, and whether poor performance affects future awards.

“Without the contractor-reported information provided to DCAMM being confirmed, there is the risk that substandard construction work may be performed, or that the safety and rights of construction project workers may not be adequately safeguarded.”

The auditor recommended clearer cost responsibility rules, better verification of out-of-state contractors, and improved contractor evaluation methods.

“DCAMM should establish an effective means of interstate communication and, to the extent possible, verify information provided by potential contractors relative to their certifications.”

The report matters because the construction method DCAMM used was supposed to reduce unexpected costs, but the auditor found DCAMM may not have been getting all the intended risk-reduction benefits.

“Rather, we found that DCAMM frequently uses change orders on CMAR projects and that, as a result, it may not be receiving the risk-avoidance benefits anticipated by the CMAR project management method.”

A change order is a formal project change that can add or remove work and may change the price or deadline.

“Change Order: A document requesting, acknowledging, and approving (or disapproving) work that is either added to or deleted from the project scope, altering the original Guaranteed Maximum Price (GMP) in the contract, the planned completion date, or both.”