Atachment_A_PWS.pdf

ATTACHMENT A

PERFORMANCE WORK STATEMENT

GENERAL INFORMATION

1.1 General. The Department of Housing and Urban Development, Office of Healthcare Programs (OHP) requires services from a contractor to conduct on-site inspections of new construction and substantial rehabilitation of residential healthcare facilities.

1.2 Background. The U.S. Department of Housing and Urban Development (HUD) insures financing of the construction of new Office of Healthcare Programs (OHP) projects or the repair or rehabilitation of existing OHP projects, as authorized by several sections of the Housing Act of 1959 (HA), National Housing Act (NHA) and National Affordable Housing Act (NAHA), as listed below:

Section 232 Nursing Homes, Intermediate Care Facilities, Board and Care, and Assisted-Living Facilities (New Construction, and Substantial Rehabilitation)

Section 232/223(a) (7) Refinance of Existing FHA Insured Mortgages Section 232/223(f) Mortgage Insurance for the Purchase or Refinancing of Existing Nursing Homes and Assisted-Living Facilities Section 232/241a Supplemental Loans

HUD is required to perform periodic property inspections of Office of Healthcare Programs (OHP) projects throughout the entire construction and/or rehabilitation phase and during the warranty periods. Also, HUD is required to assist other parties (owner, sponsor, builder, supervisory architect, mortgage company, etc.) in utilizing HUD forms and procedures relative to the construction phase of OHP project development.

Historically, HUD staff has performed all necessary construction monitoring and related services. Recently, due to limited staff and increased geographical areas, these functions have been performed by contract inspectors. In the last year HUD performed approximately 650 inspections in the United States.

1.3 Objectives. The objective of this requirement is to obtain services of a Contractor who, as HUD’s representative, will conduct required inspections and perform various construction inspection tasks (such as reviewing change orders, payment requests, schedules, request for permission to occupy, etc.) 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.

1.4 Description of Services. The Contractor shall provide the services of a Construction 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.

1.5 General Information

1.5.1 Non Personal Services. The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services. If the Contractor feels any action constitutes, or are perceived to constitute personal services, it shall be the Contractor’s responsibility to notify the Contracting Officer immediately. These services shall not be used to perform work of a policy, decision making or management nature, i.e. inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.5.2 Period of Performance.

The Period of Performance is five year ordering period.

1.5.3 Place of Performance. The services to be performed shall be performed at the assigned construction job sites in the United States.

1.5.4 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 GTR/GTM.

1.5.5 Post Award Conference. The Contractor shall attend any post award conference convened by the contracting activity office in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor 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. Post award conference may be held via teleconference.

1.5.5.1 Status Meetings. The Government Technical Representative (GTR) and other Government personnel, as appropriate may meet periodically with the Contractor to review Contractor performance, requirement status, etc. At these meetings, the GTR/GTM will 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. These meetings are included in the fixed price contract line item (CLN). Status Meeting may be held via teleconference.

1.5.6 Contractor Travel. HUD will not reimburse the contractor for travel. Travel shall be included in the fixed price line item (per inspection) The contractor shall provide all necessary travel in the performance of the Performance Work Statement.

1.6 Transition Period. The contractor recognizes that the services under this PWS are vital to the Government and must be continued without interruption and that upon contract expiration, a successor; either the Government or another contractor may continue them. In order to ensure a smooth transition of services at the beginning and end of contract performance, the Contractor shall provide a Transition-In and a Transition-Out Plan. The Transition-In Plan shall be provided with the Contractor’s proposal. The Transition-Out Plan shall be provided 120 business days before contract expiration.

The contractor shall furnish Transition-In and/or Transition-Out Plan as required by the solicitation. The contractor shall provide sufficient experienced personnel during the Transition period to ensure that the services called for by this PWS are maintained at the required level of proficiency. The contractor shall participate in transition meetings with the Government as required.

1.6.1 Transition-In. The contractor shall submit their 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 to the Government, 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. The Transition-In Plan shall be submitted with the contractor’s proposal.

1.6.2 Transition-Out. To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board, at no additional cost to the Government, during the 30 day Transition-Out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor contractor is achieved by the end of the new contract Transition-In period.

The Transition-Out Plan shall be provided 120 days before contract expiration.

DEFINITIONS, ACRONYMS, APPLICABLE DOCUMENTS/PUBLICATIONS

2.1 DEFINITIONS

Application - Exhibits that are submitted by a sponsor or the mortgagee of record to a HUD Office to request issuance of a processing letter (Early Commencement, Early Start, or Firm Commitment).

Architect or Supervisory Architect - the architect providing services to the sponsor/owner under the terms of the AIA-B108, Owner-Architect Agreement.

Builder - the General Contractor hired by the sponsor/owner to construct the project under the terms of the construction contract and in accordance with contract documents. The term “builder” is used in this PWS to avoid confusion when the Contractor’s role is discussed.

Business/Work Days – Every official work day of the week which are days between and including Monday to Friday. This does not include public holidays and weekends.

Certificate of Occupancy - a certificate allowing occupancy issued by a local Government building department for a structure or structures for which a building permit has been issued.

Construction Contract - the construction contract applicable to the particular project for which HUD is providing mortgage insurance and which HUD requires (typically a contract between the builder and project owner or sponsor).

Construction Contract Administration - the supervisory architect’s administration of the contract between the builder and project sponsor/owner in the construction of any OHP project. HUD construction inspection tasks, to be performed by the Contractor as HUD’s Representative, are defined in this contract.

Construction Inspection Services - monitoring the construction, and performing construction inspection tasks and related functions for the purpose of protecting the Department’s interest.

Construction Manager (HUD CM) – the HUD employee in the Office of Healthcare Programs who is responsible for the proper performance of all functions relating to inspection. The Construction Manager keeps informed of the general progress of the work on all projects during the construction stage and guarantee period and is familiar with any problems involved. The HUD CM is also a designated GTM and is appointed in writing by the Government.

Contract Administration - the monitoring of the performance of the Contractor by the GTR, GTM and Contracting Officer relative to the tasks performed under this contract.

Contractor – the individual, partnership, corporation, or other entity that is the party subject to the terms and conditions of this contract, and also is referred to as HUD’s Representative. This is the contractor for this contract.

Contracting Officer (CO) – a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

Days – calendar days, unless otherwise specified as business days

Fair Housing Accessibility Guidelines (FHAG) - Technical guidance on how to comply with the specific accessibility requirements of the Fair Housing Amendments Act of 1988.

Final Closing - the final completion of all HUD project development forms, procedures, terms and conditions per HUD legal and programmatic requirements. This occurs after completion of project construction and cost certification.

Final Completion of the Work (Individual Project Completion) - the time when all work under the owner’s/sponsor’s construction contract is 100 percent complete, except work items beyond the builder’s control which are accepted as delayed items of completion. It is formalized as of the date the Contractor signs the final HUD-95379-ORCF, HUD Representative’s Trip Report, provided that the trip report is subsequently accepted by the GTM.

Government Technical Monitor (GTM) - An individual designated by the Contracting Officer to assist in providing technical direction and monitoring performance under the contract.

Government Technical Representative (GTR) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change, and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract nor authorize decisions that would change the negotiated price of the contract.

HUD - the U.S. Department of Housing and Urban Development. The terms “Department of Housing and Urban Development,” “Department,” “HUD,” and “Government” shall be synonymous and may be used interchangeably in this contract.

HUD Inspection Procedures - paragraphs 3-1 through 3-17 in Chapter 3, Architectural Inspection, of HUD Handbook 4232.1; and HUD Handbook 4435.01 REV-1, Project Construction and Servicing Before Final Closing.

Required reporting via the HUD-95379-ORCF, HUD Representative Trip Report, is to be completed for each inspection per instructions included on the form.

HUD-Insured Program - a program where HUD provides mortgage insurance to the mortgagee for construction, acquisition (with or without repairs), or rehabilitation of a housing project.

Initial Endorsement/Closing – the initial endorsement of a HUD project for loan insurance which normally occurs prior to the commencement of construction. The legal documents, loan forms, construction contract, and other required instruments are signed at this meeting.

Item(s) of Delayed Completion – construction-related work items beyond the builder’s control to complete and identified by the Contractor at final completion of the work.

Latent Defect(s) - defective or non-conforming work item(s) not observed during construction, and identified by the owner’s architect and the Contractor at either the 9-month or 12-month warranty inspection.

ORCF – Office of Residential Care Facilities. The division within the Office of Healthcare Programs which administers the Section 232, Residential Care Facilities program.

Performance Assessment - a planned and systematic pattern of all government actions to provide confidence that adequate technical requirements are established, products and services conform to established technical requirements, and satisfactory performance is achieved.

Pre-Closing Conference - the meeting HUD will conduct, if necessary, with the lender, owner/sponsor, builder, Contractor, accountants, and others to assist in reaching the project’s final closing in a timely manner.

Pre-Construction Conference (PCC) - the meeting attended by the Contractor; builder; builder’s subcontractors (if possible); supervisory architect; owner/sponsor; consultants (if any); mortgage company and HUD ORCF staff to discuss the construction contract documents and applicable HUD requirements. Required for every project and must precede the initial start of construction.

Project - the land or leasehold and existing or proposed improvements described in an application for mortgage insurance.

Project Capital Needs Assessment (PCNA) – document containing estimates of critical and non-critical repair costs and the initial and monthly deposits to the replacement reserve.

Quality Control - All necessary measures taken by the contractor to assure that the quality of an end product or service shall meet contract requirements.

Service Contract - A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Special Purpose Inspections (SPIs) - the type of physical inspection performed on existing OHP subsidized or unsubsidized projects to either determine the scope and cost of repairs needed to bring the project to a decent, safe, and sanitary condition in accordance with 24 CFR Part 5, Subpart G; to inspect major repair items; to inspect progress being made under Management Improvement and Operating (MIO) Plans; to investigate complaints HUD has received concerning the property’s physical condition; or any other inspection assigned to the inspector.

Sponsor/Owner/Mortgagor - the individual or entity planning the project whose name appears on the Construction Contract and other applicable project documents.

Start(s) of Construction - “Initial Start of Construction” is defined as the beginning date of the initial site preparation. This date is used in connection with the Labor Standards and prevailing wage requirements, when the construction contract work commences with initial site clearance or other preliminary site work for proposed construction projects. The “Start of Permanent Construction” is defined as the first day that permanent on-site building elements were put in place (footings, foundations, pilings, utility lines, etc., but not excavation, forms or trenching, including demolition of portions of the existing building for substantial rehabilitation projects). Builder documents “initial” and “permanent” construction start dates via PDF letter to the Contractor.

Temporary Certificate of Occupancy - a certificate issued by a local Government building department for a structure or structures for which a building permit has been issued (allows early occupancy and prior to issuance of Certificate of Occupancy).

UFAS - Uniform Federal Accessibility Standards. Presents uniform standards for the design, construction, and alteration of buildings so that persons with disabilities will have ready access to and use of them in accordance with the Architectural Barriers Act, 42 U.S.C. 4151-4157.

2.2 ACRONYMS

ACRONYM DEFINITION

AIA American Institute of Architects

AQL Acceptable Quality Level

ASI Architect’s Supplemental Instructions

CDR Contract Deliverable Requirement

CFR Code of Federal Regulations

CIO or OCIO Office of the Chief Information Officer of HUD

ACRONYM DEFINITION

CLIN Contract Line Item Number

CO Contracting Officer

COR Contracting Officer Representative

CPARS Contractor Performance Assessment Reports System

CPO Office of the Chief Procurement Officer of HUD

CR Change Request

EAC Estimate at Completion

EST Eastern Standard Time (U.S.)

ETC Estimate to Completion

GAO U.S. General Accounting Office

FHAG Fair Housing Accessibility Guidelines

GTM Government Technical Monitor

GTR Government Technical Representative

HARTS HUD Automated Release Tracking System

HTC HUD Test Center

HUD U.S. Department of Housing and Urban Development

HUDAR HUD Acquisition Regulation

HUD CM U.S. Department of Housing and Urban Development Construction Manager

HUD/ISG Internet Services Group within the Telecom Processing Division

HUDATWORK HUD’s Intranet Web Site and related WEB pages.

HUD Web HUD’s Intranet Web Site and related WEB pages.

IG or OIG Inspector General (Office of)

IT Information Technology

IV&V Independent Validation and Verification

LOT Lot

NLT Not Later Than, or No Later Than

OCPO Office of the Chief Procurement Officer

OIG Office of Inspector General

POC Point of Contact

QA Quality Assurance

QASP Quality Assurance Surveillance Plan

QCP Quality Control Plan

SF Standard Form

ACRONYM DEFINITION

U.S.C United States Code

2.3 APPLICABLE REGULATIONS/MANUALS/DOCUMENTS/PUBLICATIONS

2.3.1 Publications (handbooks and regulations) that apply to services provided under this contract are listed below:

1344.1 REV-1 Federal Labor Standards Compliance in Housing and Community Development Program

4232.1 Healthcare Mortgage Insurance Program – Section 232 of the National Housing Act

4435.1 REV-1 Project Construction and Servicing Before Final Closing

4460.1 REV-2 Architectural Analysis and Inspections for Project Mortgage Insurance

4600.1 REV-1 Residential Care Facilities - Nursing Homes (SNF and ICF), Board and

Care Homes and Assisted Living Facilities

4910.1 REV-1 Minimum Property Standards (MPS) for Housing, 1994 Edition 24 CFR Part 100.205 Fair Housing Accessibility Guidelines FED-STD – 795 Uniform Federal Accessibility Guidelines

2.3.2 Forms, either HUD’s or from some other non-federal entity source, are as follows:

AIA-B108 Owner-Architect Agreement AIA-G710 Architect’s Supplemental Instructions (ASIs) AIA-G711 Architect’s Field Report HUD-2328 Contractor’s and /or Mortgagor’s Cost Breakdown - Schedule of Values HUD-92485 Permission to Occupy Project Mortgages HUD-11 Record of Employee Wage Interviews HUD-92437 Request for Construction Changes (Change Order Form) HUD-92448 Builder’s Requisition HUD-92464-ORCF Request for Approval of Advance of Escrow Funds HUD-95379-ORCF HUD Representative’s Trip Report

GOVERNMENT FURNISHED PROPERTY AND SERVICES. The Contractor shall ensure accurate control and accountability of all Government Furnished Property in accordance with terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Facilities. Work space at the construction site for HUD personnel and the Contractor (as HUD’s representative), will 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 GTR/GTM 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 GTR/GTM to do so.

3.2 Materials.

3.2.1. Construction Related Documents. After the Contractor has been assigned a project, the GTM 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 GTR/GTM are as follows:

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

3.2.1.2 Construction contract between the builder and the owner/sponsor

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

3.2.1.4 Drawings, specifications, and contract pertaining to offsite improvements

3.2.1.5 Escrow Agreement for Offsite Facilities

3.2.1.6 Builder’s Progress Schedule

3.2.1.7 Escrow Agreement for Demolition

3.2.1.8 Project Capital Needs Assessment (PCNA)

3.2.1.9 Additional pertinent documents

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

3.2.2.1 Firm Commitment, or Escrow Agreement

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

3.2.2.3 Specifications and drawings (if provided by the owner)

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

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

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

3.3 Quality Assurance (QA). The Government shall evaluate the Contractor’s performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance and the minimum acceptable quality level.

CONTRACTOR FURNISHED ITEMS AND SERVICES

The Contractor shall furnish all facilities, equipment and supplies required to perform the work under this contract that are not listed under Government Furnished Property and Services.

4.1 Contractor Responsibilities. The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs), or persons identified during the Pre-Construction Conference. Names of authorized personnel shall be provided to the Contractor by the Government, in writing and updated as necessary throughout the contract period.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the GTR.

4.2 Contractor Personnel. The Contractor shall provide a Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the /Project Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, “Key Personnel”. The Project Manager and alternate shall have full authority to act on all contract matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance and direction from the GTR, GTM and CO per HUDAR 2452.237-73, Conduct of Work and Technical Guidance and shall be allocated enough hours to the requirement to ensure successful performance. These points of contact shall each be an employee of the Contractor.

An employee of a subcontractor is not acceptable for either of these positions. The Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm, Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

4.3 Identification of Contractor Employees. All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government or construction site personnel during business meetings, over the telephone or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or as a minimum, “Contractor” after name.

4.4 Quality Control. The Contractor shall establish and maintain a complete Quality Control Program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non reoccurrence of defective services. The Contractor’s quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.4.1 Preliminary Quality Control Plan (PQCP). The Contractor shall develop, a Preliminary Quality Control Plan (PQCP) to be submitted with their proposal. The final Quality Control Plan shall be reviewed, approved by the GTR/GTM and submitted to the GTM/GTR within 5 business days after post award conference. The PQCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The PQCP shall be sufficiently detailed to provide the Contractor’s methodology for identifying and recruiting qualified personnel. The PQCP shall also provide the Contractor’s methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QSAP). The PQCP shall also provide the Contractor’s methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The PQCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government’s QASP. The PQCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

SPECIFIC TASKS

5.1 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.

5.2 DETAILED TASK DESCRIPTION.

5.2.1 TASK 1: CONSTRUCTION INSPECTIONS – PROJECT MONITORING

5.2.1.1 Pre-Construction Activities. Within ten (10) business days of receipt of materials related to the assignment of projects (under construction, under warranty, or new/rehabilitation projects or repairs), the contractor shall initiate an “Initial Briefing” call or meeting with the GTM. The GTM will orally brief the contractor and answer questions regarding the assignment. The Contractor shall attend, the HUD Pre-construction conference, and afterwards submit summary meeting notes and list of attendees on a HUD Representative’s Trip Report (HUD-95379-ORCF) (photos not required) to the GTM 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). This meeting will typically occur during the contractor’s first trip to the project site.

5.2.1.2 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 GTM/GTR 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 HUD-92448.

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.

5.2.1.3 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 GTM and HUD CM within five (5) business days of receipt.

5.2.1.4 Construction Progress Inspections. See Handbook 4232.1 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, HUD Representative’s Trip Report. The Contractor shall:

5.2.1.4.1 Attend and participate in monthly job-site meetings with one inspection coinciding with the monthly review of the HUD-92448. The Contractor shall sign the requisition as HUD’s representative, and provide copies to the GTM. 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

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

5.2.1.4.3 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.

5.2.1.4.4 Evaluate conformance with builder’s progress schedule.

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

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

5.2.1.4.7 Report whether the Builder’s Requisition for Payment is reasonable.

5.2.1.4.8 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.

5.2.1.4.9 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 GTM.

5.2.1.4.10 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.

5.2.1.4.11 After 80 percent 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.

5.2.1.4.12 Re-inspect or provide additional or more frequent inspections when directed by the GTM/GTR.

5.2.1.4.13 Meet at the project site or local HUD office with the GTR/GTM 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.

5.2.1.5 HUD-95379- ORCF. 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 Handbooks 4232.1, and

4435.01 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 GTM/GTR 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, “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.

5.2.1.5.1 On the HUD-95379-ORCF the Contractor shall:

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

5.2.1.5.1.2 Evaluate and report on the supervisory architect’s administration of the construction contract and services per paragraph 3-11 of Handbook

4232.1. 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.

5.2.1.5.1.3 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 GTM 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.

5.2.1.5.1.4 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. 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.

5.2.1.5.1.5 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.

5.2.1.5.1.6 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 Builder’s Requisition (HUD-92448).

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

5.2.1.5.1.8 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

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

5.2.1.5.1.10 Report any serious construction problems in accordance with Handbook 4232.1.

5.2.1.4.2 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, to the GTM 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.

5.2.1.6 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 Handbook 4232.1, and Handbook 4435.01 REV-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%).

5.2.1.6.1 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 or not 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 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:

(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/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.

5.2.1.6.2 The Contractor shall inform the builder and owner/sponsor that cost certification requirements are defined in HUD Handbook 4470.2 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 Handbook 4232.1.)

5.2.1.6.3 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.

5.2.1.6.4 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.

5.2.2 TASK 2: SECTION 223(a)(7) and 223(f) INSPECTIONS

5.2.2.1 When directed by the GTR/GTM, 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.

5.2.2.2 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 GTM.

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

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

5.2.2.3.2 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).

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

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

5.2.2.3.5 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.

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

5.2.2.3.7 Critical repairs shall be completed and reported before endorsement as described in HUD Handbook 4232.1, and HUD Handbook 4435.01, Rev. 1, subparagraph 3-2.

5.2.2.3.8 Items of Delayed Completion. In rare cases, in 223f 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.

5.2.2.3.9 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.

5.2.2.3.10 Detailed narrative of observations made…