Attachment 0003 - Description Region 1.doc

86615621Q00002 Attachment 0003

CONSTRUCTION INSPECTION SERVICES REGION 1

(Southeast, South Central, and Hawaii – AL, AR, FL, GA, HI, KY, LA, MS, NC, NM, OK, SC, TN, and TX) The Department of Housing and Urban Development, Office of Healthcare Programs (OHP) anticipates issuing Construction Inspection Services to conduct on-site inspections of new construction and substantial rehabilitation of residential healthcare facilities on the effective date or within 5 business of contract award. Offerors are to include in their proposals a narrative description of the offeror approach to performing the work and the methods by which this will be accomplished and the understanding of the project (both from a technical and business standpoint, how the offeror intend to satisfy the technical requirement. Offerors should refer to the Proposal instruction and the Business Proposal Instruction for guidance regarding preparation of their proposals.

Objectives: The objective is to obtain services as HUD’s representative to conduct required inspections and perform various construction inspection tasks for HUD. By obtaining these services, this will support HUD’s Agency Priority Goal, to utilize housing as a platform for improving quality of life.

Description of Services. The Contractor shall provide the services of a Contract Inspector who, as HUD’s representative, will conduct required inspections and perform construction inspection tasks. The Contractor’s work products shall provide HUD with the data necessary to make informed decisions regarding the construction phase of the HUD Section 232 mortgage insurance underwriting program.

Period of Performance. The Period of Performance reads as follows:

· Base Year: March 1, 2021 – February 28, 2022

· Option Year One: March 1, 2022 – February 28, 2023

· Option Year Two: March 1, 2023 – February 29, 2024

· Option Year Three: March 1, 2024 – February 28, 2025

· Option Year Four: March 1, 2025 – February 28, 2026 Place of Performance. The services shall be performed in the geographical area Region 1. The assigned construction job sites in the Southeast, and South Central and Hawaii region states as identified below:

Arkansas

Alabama

Florida

Georgia

Hawaii Kentucky

Louisiana

Mississippi

New Mexico

North Carolina

Oklahoma

South Carolina

Tennessee

Texas

Hours of Operation. The Contractor shall be able to provide service from 8:00 AM to 4:30 PM, local time (where project is located), Monday through Friday, with the exception of recognized Federal holidays. Case-by-case exceptions will be authorized in advance by the COR.

Post Award Conference: The Contractor shall attend the post award conference within 10 business days after award. The Contracting Officer will notify the Contractor of the specific date, location and agenda within 10 days after award.

Status Meetings: The Contracting Officer, Contracting Officer Representative (COR) and Subordinate Contracting Officer Representative (SCOR) may meet periodically with the Contractor to review Contractor performance, requirement status, etc. At these meetings, the COR/SCOR may apprise the Contractor of how the Government views the Contractor’s performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. Post award conference and subsequent meetings may be held via teleconference.

Contractor Travel: HUD will not reimburse the Contractor for travel.

Transition-In. The Contractor shall furnish a Transition-In Plan with their proposal. The Transition-In Plan shall include a description of the transition activities to be carried out and a timeline for the implementation and completion of all transition-in activities. As a successor, the Contractor shall have sufficient personnel on board during the 30 day Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to a program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor Final Transition-Out:

The Contractor shall ensure an orderly, secure, and efficient transition of related materials and activities to the successor Contractor or to the Government. A description of transition activities, timelines, and assigned staff shall be provided in a Draft and Final Transition-Out Plan to the COR/SCOR, which will be reviewed and approved by the COR/SCOR within 30 days. The Transition-Out Plan shall include a description of the transition activities to be carried out and a timeline for the implementation and completion of all transition-in activities. The Draft Transition-Out Plan shall be submitted 120 days before contract expiration, and the Final Transition Plan shall be submitted 60 days before contract expiration.

Facilities:

Workspace at the construction site for the Contractor shall be provided by the Builder. The Contractor has the right of entry and free access to assigned construction sites and to inspect all work and materials, equipment and fixtures furnished, installed or stored in and about the project at all normal working times during construction. The Contractor shall immediately notify the COR/SCOR if it is denied such right of entry and free access. The Contractor shall not attempt to resolve any dispute regarding entry and free access unless specifically instructed by the COR/SCOR to do so.

Materials:

Construction Related Documents. After the Contractor has been assigned a project, the SCOR will provide to the Contractor copies of construction related documents which the Contractor needs to perform construction inspection tasks for the assigned HUD OHP projects. Construction related documents forwarded to the Contractor, as determined by the COR/SCOR are as follows:

· ”HUD Inspection Set” of the HUD-approved plans and specifications

· Construction contract between the builder and the owner/sponsor

· Supervisory Architect’s Contract, AIA Document B108 with HUD Amendment

· Drawings, specifications, and contract pertaining to offsite improvements

· Escrow Agreement for Offsite Facilities

· Construction Progress Schedule

· Escrow Agreement for Demolition

· Project Capital Needs Assessment (PCNA)

· Additional pertinent documents

Section 223(f) and 223(a)(7) Related Documents - The SCOR shall provide the following documents to the Contractor, as applicable, as reference documents in performing the inspections of critical or non-critical repairs:

· Firm Commitment, or Escrow Agreement

· List of required repairs (Project Capital Needs Assessment (PCNA))

· Specifications and drawings (if provided by the owner)

· Schedules of Values (required only for projects with repairs delayed after endorsement)

· Progress Schedule (required only for projects with repairs delayed after endorsement)

· Schedule of Delayed or Interrupted Occupancy or Income (required only for projects with repairs delayed until after endorsement)

TECHNICAL REQUIREMENTS

Independently, and not as an agent of the Government, the Contractor shall furnish all the necessary services, qualified personnel, materials, equipment, and facilities, not otherwise provided by the Government as needed to perform the Performance Work Statement below.

In addition to the requirements laid out in the base Performance Work Statement, the Contractor shall provide the following tasks.

SCOPE OF WORK.

The Contractor shall provide construction contractor inspection services to provide HUD with the data necessary to make informed decision regarding the construction phase of the HUD Section 232 mortgage insurance underwriting program.

DETAILED TASK DESCRIPTION

TASK 1: CONSTRUCTION INSPECTIONS – PROJECT MONITORING

Pre-Construction Activities. The project Lender will be responsible for setting up and conducting the HUD Pre-construction meeting. SCOR will provide the Contractor with the Project Description prior to the HUD Pre-construction conference. The Contractor shall attend, the HUD Pre-construction conference, and afterwards submit summary meeting notes and list of attendees as well as the name and contact info of the inspector who will be assigned to the project on a HUD Representative’s Trip Report (HUD-95379-ORCF) (A002) (photos not required) to the COR/SCOR within five (5) business days of the conference. The Contractor shall confirm the initial review of the Contract document-plans and specifications, etc., prior to field inspections as part of the Pre-construction Conference Trip Report. The Contractor shall attend the Architect’s/Builder’s Pre-construction meeting in the field, should one be held, and submit a HUD Representative’s Trip Report (HUD-95379-ORCF) (A002). This meeting will typically occur during the Contractor’s first trip to the project site.

Monthly construction inspections/site-visits/site-meetings for construction projects under Section 232 The Contractor shall visit the job-site and inspect the project at a frequency determined by OHP or other frequency as directed by the SCOR/COR to evaluate, observe, and report on construction progress and actual conditions on the job-site, construction activity and construction inspection tasks described at paragraph 5.1.1.3, below. The Contractor shall schedule the monthly inspection to coincide with the monthly submission of the Contractor’s Requisition, HUD-92448-ORCF (A003) (AKA Builder’s Requisition).

The Contractor shall establish a day and time for their inspections at the HUD Preconstruction Conference with the Builder and Supervisory Architect and commit to a consistent day and time each month for the monthly inspection, for example, the fourth Thursday of each month at 1:00 PM.

Construction Start Letters: The Contractor shall ensure that the builder documents the start dates of the “initial” and “permanent” construction via appropriate letters from the builder to the Contractor. The Contractor shall forward the construction start letter(s) received from the builder to the SCOR / HUD CM within five (5) business days of receipt.

Construction Progress Inspections: Please see Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1 for detailed instructions. During the on-site inspection, the Contractor shall maintain a role as observer and provider of technical information as HUD’s representative, through interaction with sponsor/owner, owner’s consultant, builder, builder’s representatives, Supervisory Architect and lender. The Contractor shall report the results of all inspections, meetings, issues discussed, and conclusions reached on the HUD-95379-ORCF (A002), HUD Representative’s Trip Report. The Contractor shall:

Attend and participate in monthly job-site meeting coinciding with the monthly review of the HUD-92448-ORCF (A003). The Contractor shall sign the requisition as HUD’s representative, and provide copies to the SCOR. During this inspection the Contractor shall confirm actual progress of each building trade, evaluate the Architect and builder’s administration, services and organization, and assist the builder with HUD requirements.

· Observe and report on construction activities of on-site and off-site construction.

· Observe and report on construction progress to evaluate the builder’s and Architect’s performance. The Contractor shall report the number of workers and trades on site during the inspection.

· Evaluate conformance with builder’s progress schedule.

· Report whether the completed construction is in conformance with the approved contract documents.

· Report whether the materials stored on-site are properly stored and invoiced.

· Report whether the Contractor’s Requisition (AKA Builder’s Requisition) for Payment is reasonable.

Discuss and report on:

· All issues included in the construction contract.

· Status of progress of work subject to pending or previously approved change orders. For multi-building projects report on the progress of each building, site work, off-site work, stored materials, and accessory buildings/features. For single building projects report on the progress of each floor or wing, site work, off-site work, stored materials, and accessory buildings/features.

· All non-compliance in the execution of the contracts, including the builder’s, Architects, and construction contract.

· Labor and Equal Employment Opportunity compliance.

Apprise the major participants (builder, Supervisory Architect, owner, sponsor, consultant, and lender) of observed deficiencies and problem areas in the progress of the work and clarify HUD procedures applicable to the issues raised relative to the construction phase of project development. The Contractor shall refer issues which cannot be settled on site to the SCOR.

Discuss any findings, particularly any adverse findings, with the Supervisory Architect at the job site, or by phone if the Supervisory Architect is not present when the inspection is made, and report findings in the Trip Report.

After 80 % project completion, the Contractor shall discuss the following with the Jobsite participants:

· Definition of Final Completion of Work per the builder and owner’s construction contract.

· The owner (in all cases) and builder (when required) should meet with HUD’s financial analyst, respectively, before 90 percent project completion to review cost certification submission requirements.

· HUD may conduct a pre final closing meeting. If a meeting is held, the Contractor shall explain and describe to all parties any observations that may delay or prevent HUD final closing.

Re-inspect or provide additional or more frequent inspections when directed by the COR/SCOR.

Meet at the project site or local HUD office with the COR/SCOR or designee to resolve Project issues, receive updated training and assist and cooperate with any HUD official conducting an on-site review of the project construction and/or construction contract administration for the purpose of assessing performance or other areas of concern.

HUD-95379-ORCF (A002). The Contractor shall record the results of all inspections, meetings, issues discussed, and conclusions reached on the HUD-95379-ORCF, HUD Representative’s Trip Report. The Contractor shall follow the instructions contained in Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1 and the HUD-95379-ORCF form instruction sheets. The HUD-95379-ORCF shall be a comprehensive report that includes all pertinent information the Contractor obtains while conducting an on-site inspection. The Contractor shall sign any submitted HUD-95379-ORCF in the “HUD Representative” signature block. The Contractor shall submit the original of the HUD-95379-ORCF to the SCOR with a copy to the HUD CM within five (5) business days of each inspection.

For the purpose of completing the blocks at the top of the HUD-95379-ORCF (A002), “Scheduled Progress” shall be according to the approved HUD-5372 Construction Progress Schedule, and shall be measured from the date of Initial Endorsement/Closing and expressed as a percentage as reflected on the builder’s progress schedule. Actual Progress shall be calculated based upon actual construction completed by all trades working on the project and expressed in terms of percent complete. If an extension to the completion date is granted through a change order, the Contractor shall request another HUD-5372 Construction Progress Schedule from the Builder showing the new adjusted construction schedule, and the Contractor shall adjust the “Scheduled Progress” block at the top of the HUD-95379-ORCF to reflect the new percentage based on the new approved Progress Schedule.

On the HUD-95379-ORCF (A002) the Contractor shall:

Evaluate and report on the builder’s organization, operations and supervision.

Evaluate and report on the Supervisory Architect’s administration of the construction contract and services per Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1. As a minimum, each HUD-95379-ORCF shall address the Supervisory Architect’s last visit to the project site, frequency of inspections, adequacy of site log, key activities being performed, and whether the service is considered acceptable or unacceptable.

Report on special circumstances, the start date of initial and permanent construction (if applicable), occupancy, delays, disputes, proposed or pending changes, etc. Specifically identify and report serious construction problems that may lead to default. For serious construction problems that might lead to a default of the construction contract, said problems must be discussed telephonically with the SCOR immediately following their discovery and specifically identified on the HUD-95379-ORCF and typically include:

· Work stoppage.

· Builder abandons job.

· A change in the builder, owner or Architect during construction.

· Construction defects untreated for 30 days.

· Builder cannot or will not correct any construction defect or latent defect.

· Use of questionable methods of construction or materials.

· Extended periods of bad weather, strikes, etc.

· Controlling jurisdiction issues a stop work order.

· Slow start or progress of off-site work that would impair project occupancy.

· Other conditions of such nature or magnitude as to potentially cause a default, and warranting attention by HUD personnel.

Conduct inspections to coincide with six (6) critical new construction Inspection phases. It is the intention that contract inspections occur at the initial occurrence of these critical inspection phases of each new construction project they inspect. All attempts should be made to coordinate these critical phase inspections with the monthly draw inspections. If this is not practical, or timing of such phases does not permit, the Contractor shall document such on the Trip Report.

The Contractor shall maintain a table in each Trip Report through Final Inspection that lists the six critical phases and the date the inspection for each phase was completed. When one of the following inspections is accomplished, the term “Critical Phase Inspection” shall be noted under item #3, Special Circumstances, of the HUD-95379-ORCF (A002). The Contractor shall provide comments on the HUD-95379-ORCF at item #3 concerning the condition of construction and conformance with approved contract documents related to the critical phase being inspected, including all items for that phase listed below and any other observations relevant to the critical phase(s) being reported. The Contractor shall also comment on the Architect’s observations and/or oversight of each phase. Multiple Critical Phase Inspections could occur during the same inspection, such as; pre-sheetrock, firewalls, and roofing all performed on the same date. The six critical new construction inspection phases are:

1. Building Pad Complete, Ready for Formwork.

2. Formwork/Pre-Concrete Slab Pour (inspect immediately prior to concrete placement). Including, but not limited to: Formwork, Reinforcement or Post Tension Cables, Under Slab Utilities, Grade Beams, and Moisture Barrier.

3. Pre-Sheetrock and Insulation (inspect all immediately prior to cover up). Including, but not limited to: Framing, Mechanical Rough-in, Electrical Rough-in, Plumbing Rough-in and Roof Decking.

4. Fire Walls

5. Roofing. Including, but not limited to: Covering, Flashing, and Penetrations.

6. Formwork/Pre-Pour of Concrete Site Paving and Curbs. Including, but not limited to: Formwork, Reinforcement, and Compliance with UFAS, as applicable.

Report noncompliance with the construction contract documents (plans And specifications) observed by the Contractor and/or the supervisory Architect, including any work proceeding on pending changes awaiting HUD approval.

Report reasonable dollar amounts requested by the builder and recommended by the Architect for payment, based on the work-in place, construction contract and the cost breakdown. The Contractor shall also report and list dollar amounts modified on Contractor’s Requisition (HUD 92448-ORCF) (A003).

Report any labor problems, equal employment opportunity problems, or Other labor related complaints either observed or reported.

Report the percentage of actual and scheduled project completion and the percentage of completion of each additive change order. Note the dollar value of change orders approved to date and list any pending change orders and their dollar value.

Report compliance with each off-site work contract, if applicable, and the completed percentage of each. Report slow start or progress of offsite work that may delay occupancy.

Report any serious construction problems in accordance with Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1.

Provide Photo Documentation of Construction Status (on-going construction, final inspection and guarantee/warranty inspections). The Contractor shall provide photographic documentation of construction progress and activities, construction deficiencies, stored materials, critical phase inspection components, and non-compliant issues with each trip report, HUD-95379-ORCF (A002), to the SCOR and HUD CM within five (5) business days of any inspection. The photographs shall be printed in a minimum size of three inches by five inches (3” X 5”) on a sheet of paper, numbered and clearly labeled with the project name, HUD project number, date taken and a brief narrative description adjacent to each photograph of the view and condition shown in each. Photographs shall be color digital photographs stored for printing and electronic transmission. Digital photographs shall be stored in JPEG or GIF formats with a minimum resolution capable of producing 3” X 5” photo-quality prints. The Contractor shall provide additional photographs as necessary for identifying non-compliance with contract documents or HUD regulations. A minimum of six (6) construction progress photographs shall be provided with each trip report, HUD-95379-ORCF.

Final Completion Inspection: The Contractor shall perform the HUD final completion inspection upon final completion of the work, as defined under the definitions portion of this contract, in accordance with instructions in Section II, Production, Chapter 10 of HUD Handbook 4232.1REV-1, paragraph 1-11. The inspection(s), which are scheduled to release dwelling units to the owner and for which permission to occupy will be granted, should correspond to the monthly inspection(s). The permission to occupy form(s) for all the dwelling units in a project shall be completed/granted prior to, or simultaneous with, granting final completion (100%).

The HUD final completion inspection trip report shall include the following statements or address the following issues:

· “Date of Final Completion per Contract is / /,” “Construction acceptably completed,” or “Construction acceptably completed subject to withholding disbursement or escrow of funds for completion of the listed items of delayed completion.” List any items of delayed completion and their estimated cost and recommended time for completing the work. Multiply the estimated cost of such items by 150% and identify this amount as the amount to be held in escrow until the items are completed.

· “Utility services (list services including electricity, gas, water, sanitary sewer, storm sewer, telephone, and cable TV, as applicable) are complete, connected, and operable.” Where connection is precluded by incomplete off-site work, add to the statement, “Connection for (list) is awaiting installation of off-site lines.”

· “Safe and adequate ingress and egress have been installed to the site and all units and facilities.” Where ingress or egress is precluded in part, add to the statement “except as follows: (list).”

· Identify energy saving features included in the project. State whether the project is Energy Star compliant, or what, if any Energy Star appliances were installed in the project. Identify other forms of energy conservation or green building technology included in the project.

· Complete and date the final HUD-95379-ORCF (A002) on day of inspection.

· Observe and attest to the accessibility of the work, for compliance with UFAS, FHAG, etc., at final completion of the work.

· At final completion, document (and attach Transmittals) on the HUD 95379-ORCF (A002):

(a) “HUD As-Built Set” of the Plans and Specifications, reviewed by Architect and HUD Contract Inspector and forwarded to the project Owner.

(b) Owner’s O & M Manuals, reviewed by Architect and HUD Contract Inspector, and forwarded to project Owner/Sponsor:

(c) Final “As-Built Survey” reviewed by HUD Contract Inspector and forwarded to HUD.

(d) All Major Movable Equipment on site, and in place.

(e) All Change Orders submitted and approved by HUD.

(f) Final 100% Construction Draw/Contractor’s Requisition submitted to HUD and;

(g) HUD Permission(s) to Occupy executed and submitted to HUD, with associated Certificates of Occupancy, and AIA G704, if provided.

The Contractor shall inform the builder and owner/sponsor that cost certification requirements are defined in HUD Handbook 4470.2 REV-1 Cost Certification Guide for Mortgagors and Contractors of HUD-Insured and Section 202/811 Multifamily Projects. The Contractor shall inform the builder to coordinate the completion of a final survey per construction contract requirements, prior to HUD final closing.

(See construction contract and Section II, Production, Chapter 10 of HUD Handbook 4232.1. REV1)

The Contractor shall verify that the Supervisory Architect has established Warranty Dates for all project/site improvements and specified 9-month and 12-month Warranty inspections. The Contractor shall report the warranty dates on the final HUD-95379 ORCF (A002).

The Contractor shall obtain and submit with the final trip report copies of transmittals of all Contract Close-Out items (record documents, operating and maintenance manuals, consumer information on conversion of adaptable to accessible units per UFAS 4.34.4, keys, spare parts, excess materials, etc., required by the contract documents to be provided by the Builder to the Owner. Including a transmittal of the attendance record of the Owner’s Instructions on equipment and systems as specified and what specific items were covered.

Task 2: SECTION 223(a)(7) and 223(f) INSPECTIONS

When directed by the COR/SCOR, the Contractor shall perform inspections of projects funded or endorsed under Section 223(a)(7) and 223(f) of the National Housing Act. Inspections may be attended by the owner, the Architect, builder, consultants, and any other interested parties. The inspection showing that all repairs covered by the repair escrow are completed shall be considered the final inspection.

The Contractor shall monitor and report the completion of repairs and compliance with commitment/endorsement/closing document conditions, approve the release of a repair escrow, report any conditions that contribute to mortgage risk, and monitor the builder’s performance. The Contractor shall perform an inspection to confirm that critical repairs have been completed prior to loan closing, if requested by the SCOR.

The Contractor shall file trip reports on the HUD-95379-ORCF (A002) for each inspection. The Contractor shall complete the form and report on the following as applicable:

A complete list of repairs, identifying those complete and those incomplete.

A copy of the HUD-92464-ORCF, Advance of Escrow Funds, signed by the HUD Inspector in the signature block at the bottom of page 6 of the form (who signs after the Mortgagor/Borrower signs).

Non-compliance with provisions of the commitment or endorsement, e.g., PCNA, specifications, drawings, and other documents.

Adverse conditions such as slow work completion, destruction of work, new regulatory requirements, and disputes.

Availability of use of facilities listed on the schedule of delayed or interrupted occupancy. Identify by dwelling unit (room number for care facilities) or other comprehensive description.

Local government authorizations, such as permissions to occupy and use permits.

Critical repairs shall be completed and reported before endorsement as described in Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1.

Items of Delayed Completion. In rare cases, in 223(a)(7) and 223(f) projects involving new construction, provide a detailed list of any items of work for delayed completion, the recommended escrow amount, and the recommended completion date. The date for completion of items of delayed completion shall not be later than 12 months after endorsement.

Guarantee Inspections – In rare cases, when the owner uses a builder, rather than its own staff, to carry out repairs or new construction, conduct guarantee inspections to discover and require correction of latent defects within 1 year of the date of final completion of all work.

Detailed narrative of observations made during the inspection not addressed above.

Final Report – The Contractor shall submit the final report upon completion of work and the final\report shall confirm the following status:

All work acceptably completed in accordance with provisions of the commitment/endorsement and approved changes;

Off-site work completed or the municipality has given written assurance of completion;

Utilities connected;

Permanent facilities for ingress and egress provided; and

Applicable local government inspections, approvals, and other related documents have been issued.

Task 3: CONSTRUCTION ADMINISTRATION

Monitor Supervisory Architect’s Services. The Contractor shall advise the Supervisory Architect on HUD requirements, monitor the performance against provisions of the Owner-Architect Agreement (AIA Document B108), and report on the performance in accordance with Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1. The Contractor shall report inadequate performance on the HUD-95379-ORCF (A002), HUD Representative’s Trip Report. Architect’s adequacy and duties are defined in Handbook 4232.1. The Contractor shall include copies of the Supervisory Architect’s field reports (AIA-G711 or other format) and Architect’s Supplemental Instructions (ASI) with the HUD-95379-ORCF submitted to the SCOR / HUD CM. If field reports are not included with a Trip Report, explain why they are not. The Contractor shall also include comments concerning the frequency of site visits made by the Supervisory Architect and the date of their last visit to the job site, adequacy of the log, and on-going architectural activities.

The Contractor shall sign and date the periodic pay request (HUD-92448-ORCF) (A003). The Contractor shall indicate agreement or disagreement with the reasonableness of the amount requested by the builder and recommended by the Supervisory Architect for progress payment. The Contractor shall compare the HUD-92448-ORCF Contractor’s Requisition, and supporting documents (such as the AIA G703 form) with the HUD-92328-ORCF, Schedule of Values, and the observed acceptably completed work and stored on-site materials. Payment for on-site stored materials must be supported and conform with Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1. Payment for off-site stored materials must conform Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1 and be discussed with the SCOR prior to including the costs within the amount approved. The Contractor shall:

Modify the requisition, as required, in accordance with instructions in Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1. Report any modifications to the requisition on the HUD-95379-ORCF (A002).

Complete and sign the Inspector’s Certification on the HUD-92448-ORCF (A003) after all others have signed.

Return the HUD-92448-ORCF (A003) original and copies (all signed) to the owner’s representative at the job-site upon completion of the monthly requisition meeting, and deliver the signed copy to the SCOR within five (5) business days of signing.

The Contractor shall refer all proposed Change Orders (HUD-92437-ORCF) to the COR for HUD processing. The Contractor shall review and ensure that proposed change orders are signed by all parties and shall have appropriate backup documentation attached (builder’s cost breakdown and Architect’s justification letter, with all change items defined as necessities, betterments, equivalents or time extensions). The Contractor shall ensure that time extension change order(s) have no other items on the change order form, are recorded in calendar days and include bond surety consent. The Contractor shall attach informational copies of proposed Change Orders with the HUD-95379-ORCF (A002) submitted to the SCOR within five (5) business days of the inspection with all appropriate backup documentation attached. The Contractor shall report determinations and description of proposed changes on the HUD-95379-ORCF and maintain a running summary of all approved and all proposed change orders, their purpose, and status in a table on subsequent HUD Representative’s Trip Reports, HUD-95379-ORCF (A002).

NOTE: Assure that changes to off-site work are requested in a letter or other acceptable format, but not on the HUD-92437-ORCF. Off-site changes shall be documented and processed the same as on-site changes.

The Contractor shall monitor the Architect’s use of Architect’s Supplemental Instructions (ASI), AIA-G710, for compliance with Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1 and provide copies of any ASIs to the SCOR and the HUD CM within five (5) business days of receipt. The Contractor shall report the Architect’s improper use of AIA-G710 on the HUD-95379-ORCF. The Contractor shall assure that no cost or time-related minor changes are reported via an AIA-G710. The Contractor shall maintain a running summary of all ASI’s in a table on the trip report (HUD 95379-ORCF) (A002).

The Contractor shall sign and date the HUD-92464-ORCF, Request for Approval of Advance of Escrow Funds. The HUD-92464-ORCF is typically utilized for payment of completed off-site or demolition work, for payment of completed change order work where escrow has been previously established, or for a release of repair escrow on a 223(a)(7) or 223(f) project. The HUD-92464-ORCF shall have been signed by all parties necessary and shall have builders’ invoice attached. The Contractor shall send a copy to the SCOR and the HUD CM within five (5) business days of Contractor signing the HUD-92464-ORCF (for information purposes only). The Contractor shall return all signed originals of the HUD-92464-ORCF to the owner’s representative for further handling. The Contractor shall inform all parties that it is the responsibility of the project mortgagor/sponsor (owner) or mortgage company (if any) for submitting the official (original) escrow release to HUD with the builders’ invoice attached.

Employee Wage Interviews. The Contractor shall conduct employee wage interviews with a representative sample of construction personnel in various trades who are on-site during each monthly site/project visit. This requirement only applies to projects where Davis-Bacon wage rates have been established. Every effort should be made to interview up to ten percent (10%) of the workers in all trades over the course of the project construction. If the Contractor is unable to conduct the interviews, the Contractor will record on the HUD-95379-ORCF (A002) the reason why the interviews could not be performed. If employees refuse to be interviewed the Contractor will discuss the requirement for interviews with the Builder’s superintendent and explain on the HUD-95379-ORCF that such discussion occurred. The Contractor shall record the wage interviews on the Record of Employee Interview (HUD-11). The HUD-11 is available in both English and Spanish. Refer to Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1, and HUD Handbook 1344.1 (Section 1, Paragraph 3-2). Deliver the HUD-11’s to the SCOR / HUD CM together with the HUD-95379-ORCF that covers the visit.

HUD-92485-ORCF (Permission to Occupy Project Mortgages). Once the Contractor has determined final completion of the work, the Contractor shall inspect the completed dwelling units and sign and date the inspector’s portion of the Permission to Occupy Project Mortgages (after the owner, builder, and Architect have signed and dated) per Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1. The Contractor shall forward copy(s) of the signed Permission to Occupy form(s) to the SCOR within five (5) business days of signing. The Contractor shall assure that copies of the local authorities’ certificate(s) of occupancy or temporary certificate(s) of occupancy and the owner’s certificate of property insurance, professional liability insurance, and fidelity insurance are attached to each copy. Starting with the first signed Permission to Occupy, paragraph 3 of the trip report shall include a table that lists Certificate of Occupancy/Permission to Occupy status including; trip report number when signed, date signed, Certificate of Occupancy received, building number, number of units and comments.

Final Construction Record (A004). The Contractor shall maintain a file of project documents from project assignment through final completion of construction, incorporating appropriate documents as listed in Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1. All required documents, with the exception of As-Built Drawings, shall be electronically scanned and saved using an unalterable electronic means, such as a .pdf file that is easily downloadable into existing HUD software. File names for all scanned and saved contract deliverables files shall utilize a HUD standardized file naming protocol provided by the SCOR at the post-award conference. The Contractor will submit to HUD the Final Construction Record on a CD-R (read only) to the SCOR within seven (7) business days of the date of the 12-month or last warranty inspection.

Transition – Out: The Contractor shall submit the Final Construction Record (A004), described in the paragraph above, to HUD for all projects in an active status at the time of the expiration of this contract and all option periods, or if a specific project must be stopped prior to the final warranty inspection. The Final Construction Record provided in these situations will be the complete file of project documents from assignment through the last inspection actually performed by the Contractor. The Contractor will submit to HUD the Final Construction Record on a CD-R (read only) to the SCOR within seven (7) business days of the date of the last inspection performed.

Task 4: GUARANTEE/WARRANTY INSPECTIONS

The Contractor shall, as HUD’s representative, schedule and perform a 9-month and 12-month warranty (guarantee) inspection Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1. The main purpose of the two (2) inspections is to discover and require correction of latent defects (defective or non-conforming work not observed during construction) within one (1) year of the date of the HUD final completion inspection. The Contractor shall identify latent defects in materials and/or workmanship per the contract documents for repair/replacement under warranty, as well as identify improper maintenance and casualty damage. The Contractor shall verify completion of any approved items of delayed completion (and sign Release of Escrow if applicable). The reports shall include estimated cost of the defective work or repairs to the latent defects.

The Contractor shall conduct the first warranty inspection within 14 days of the 9-month anniversary date of the HUD final inspection and the Contractor shall inspect the entire project (site improvements, building exteriors, landscaping, representative sample of the living units, etc.). The Contractor shall conduct the second warranty inspection approximately 21 days prior to the 12th month anniversary date of the HUD final inspection, and the Contractor shall check the previously reported 9-month inspection defects and corrections and report any additional defects.

The Contractor reports each guarantee inspection on the HUD-95379-ORCF (A002). The Contractor shall note the following:

If work is acceptable, state “All observable work acceptable at the time of this inspection.”

If unacceptable, list latent defects:

Describe each item, Recommend method of correction, and

Estimate current cost of correction, multiplied by 150% to identify the total dollars to hold in escrow until latent defects are corrected.

Status of delayed items of completion.

The Contractor shall conduct both inspections with representatives of the project builder (the entity responsible for the construction of the project), project management and maintenance staff, owner/sponsor, Supervisory Architect, mortgage company (if possible) and consultant (if any). The Contractor shall notify all parties above at least 30 business days prior to the scheduled inspection date.

The Contractor shall deliver to the SCOR, within five (5) business days of inspection, the HUD-95379-ORCF (A002)with photographs and a copy of correspondence from Contractor to builder verifying transmittal of the copy of the HUD-95379-ORCF to the builder. The HUD-95379-ORCF shall list deficiencies deemed the builder’s responsibility and that are identified before the expiration of the one (1) year warranty and shall require correction of the deficiencies by the builder. The corrections may include remedies through equipment and materials warranties. The Contractor shall summarize the status of delayed items of completion. The Contractor shall include the following statement on the HUD-95379-ORCF:

“If the builder does not correct construction deficiencies or complete delayed items in a timely fashion, remedies will be sought through the surety or use of retainage, escrow or letter of credit where available. HUD may also pursue sanctions against the builder for failure to correct deficiencies or for failure to finish delayed items of completion.”

If there are no latent defects or incomplete Items of Delayed Completion at the 12 month warranty inspection, the Contractor shall include this statement on the HUD-95379-ORCF (A002): “This is the final inspection necessary for this project and no follow-up activities are required.” If any latent defects or incomplete Items of Delayed Completion do exist at the 12 month warranty inspection the Contractor shall include this statement on the HUD-95379-ORCF: “A follow-up inspection is recommended to verify the remaining items have actually been completed. Please confirm whether an additional inspection is authorized.”

DELIVERABLES AND MILESTONES.

The Contractor shall complete all work, deliver all deliverables and adhere to all milestones as specified herein. Any papers, recommendations, etc. that the Contractor submits are drafts, not final copies. The Government reserves the right to make changes to delivery dates.

Deliverables A001 Construction Start Letters (CDR 1) A002 Contractor’s Representative Trip Report (CDR 2) A003 Contractor’s Requisition (CDR 3)

A004 Final Construction Record (CDR 4) Contract Deliverable Requirements (CDR).

The chart below details the deliverable requirements under this contract. Each deliverable requirement is prefaced with a CDR number. The Contractor shall number all deliverables sequentially by CDR number and include the project name. For example, a project named Aggieland

Apartments, the HUD-95379-ORCF, HUD Representatives Trip Report (A002), shall be numbered CDR 2‑1. The second report shall be Aggieland Apartments CDR 2-2. Each new report shall require a number using sequential numbering.

If any deliverable is returned for any reason and requires resubmission, the Contractor shall use the original submission number appended with a sequential alpha character. The first resubmission of Aggieland Apartments CDR 2-3 would be appended with CDR 2-3a and would be identified and numbered as Aggieland Apartments CDR 2-3a. If it required yet another resubmission, it would become Aggieland Apartments CDR 2-3b, etc.

The Contractor shall provide a standardized cover letter for each deliverable provided to HUD under the contract. The cover letter format shall be presented by the Contractor at the post-award conference and shall be in a format acceptable to the COR. At a minimum, the cover letter shall reflect the project name, CDR number, description of the submittal and all attachments, date submitted to HUD, date due to HUD, and an acceptable/unacceptable statement for the Government to complete upon review.

For the Construction Start Letters (CDR 1) (A001), the Contractor’s Representative’s Trip Report (CDR 2) (A002), the Contractors Requisition (CDR 3) (A003), and the Final Construction Record (CDR 4) (A004), the Contractor shall submit a copy of the cover letter and the applicable deliverable(s) including all attachments to the SCOR.

DELIVERABLES AND MILESTONE SCHEDULE

CDR 1

Construction Start Letter(s) (A001) PWS paragraph 5.2.1.3

Within 5 business days of receipt

CDR 2

Contractor’s Representative’s Trip Report (HUD-95379-ORCF) (A002) PWS paragraph 5.2.1;5.2.2;5.2.3;5.2.4

CDR 3

HUD-92448-ORCF – Contractor’s Requisition (A003) PWS paragraph 5.2.1.4

CDR 4

Final Construction Record (A004) PWS paragraph 5.2.3.8

Acceptance Criteria. All deliverables shall be submitted as described above, or electronic method as described below. The government will accept or reject all deliverables on the appropriate CDR Cover Letter. The government will transmit any adverse comments on any deliverables via email to the Contractor as part of the deliverable review process.

Secure Electronic Delivery of Contract Deliverables

The following are the basic requirements that the Contractor shall provide via an electronic delivery service:

The documents shall be stored using an unalterable electronic means, such as a .pdf file that is easily downloadable into existing HUD software. File names for contract deliverables files shall utilize a HUD standardized file naming protocol and shall maintain this name when downloaded to an individual’s PC.

For electronic delivery Contract Deliverable Requirements (CDR) the Construction Start Letters (CDR1), the Contractor’s Inspection Report (CDR2) and the Contractor’s Requisition (CDR3) shall be delivered to HUD within five (5) business days. The Final Construction Record (CDR 4) shall be delivered to HUD within seven (7) business days. An email CDR cover letter shall be mutually developed by UD and the Contractor to facilitate this deliverable electronically.

Once electronic delivery is approved, all deliverables, including their respective attachments shall be provided electronically. Delivery of one portion by electronic means and additional portions by hard copy is not permitted.

In the event, electronic submission of any deliveries is rendered impossible because of technical failure or other impediments, the Contractor shall submit two paper copies of all deliverables to the respective SCOR within the prescribed timeframes for hardcopies. Prior to delivering paper documents in lieu of electronic submissions, the Contractor shall contact the COR and SCOR to explain the situation and how long the situation is expected to continue.

PERFORMANCE REQUIREMENTS SUMMARY

The summary chart below lists the contract’s primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance. While several contract requirements are not listed in the chart below, requirements not appearing on the PRS chart do not negate the Contractor’s obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether listed below, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor’s Quality Control Plan and various other methods of assessing performance, the COR and SCOR will perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract. On a monthly basis, the COR will evaluate the quality of the product or services. These performance standards will be fully enforceable starting 45 days from date of contract award.

A001 CDR 1

a) The Contractor shall obtain the start letters from the Builder.

b) The Contractor shall transmit Construction Start Letters to the SCOR electronically via email.

AQL: Within 5 business days of receipt from the Builder.

Disincentive: 5% reduction of fixed price per inspection

Incentive: None

5.2.1

5.2.2

5.2.3

5.2.4 HUD Representative Trip Report

(HUD-95379-ORCF)

A002 CDR 2

a) The Contractor shall generate the HUD 95379-ORCF after each inspection and transmit it to the SCOR.

b) The Contractor shall transmit HUD Representative Trip Report and related attachments to the SCOR electronically via email.

AQL: Within 5 business days of the inspection.

Disincentive: 3% reduction of monthly invoice if (95%

Incentive: 3% increase of monthly invoice if ( 98%

(HUD-92448-ORCF)

A003 CDR 3

a) The Contractor shall review and sign the…