DRAFT_PERFORMANCE_WORK_STATEMENT_FOR_CONSTRUCTION_INSPECTION_SERVICES.pdf

PERFORMANCE WORK STATEMENT FOR CONSTRUCTION INSPECTION SERVICES

SECTION C-1 – GENERAL

1.1 BACKGROUND

1.1.1 The U.S. Department of Housing and Urban Development (HUD) provides funding for, or insures financing of, the construction of new multifamily (MF) projects or the repair or rehabilitation of existing

MF 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 207(M) Manufactured Home Parks

Section 221(d)(3) and (4) Multifamily Rental Housing for

Moderate-Income Families

Section 232 Nursing Homes, Intermediate Care

Facilities, Board and Care, and Assisted-Living Facilities

Section 202 or 811 Housing for the Elderly, CAV (202) or for Persons with Disabilities, IAC

(811)

Section 220 Mortgage Insurance for Urban Renewal

Areas

Section 223(a)(7) Refinance of Existing FHA Insured

Mortgages

Section 223(f) Mortgage Insurance for the Acquisition or Refinancing of Multifamily Rental Apartments

Section 231 Housing for the Elderly, Insured

(MFTDP)

Section 232/223(f) Mortgage Insurance for the Purchase or

Refinancing of Existing Nursing Homes and Assisted-Living Facilities

Section 241 Supplemental Loans

1.1.2 HUD is required to perform periodic property inspections of MF 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 MF project development. See sample workload estimates in Technical Exhibit 1.

1.2 SCOPE OF WORK

The purpose of this contract is to obtain services of a Contract

Inspector (CI) 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. Inspections shall be made to evaluate the builder’s and supervisory architect’s performance, to obtain construction in accordance with the construction contract documents, and to report on conformance with prevailing wages (when applicable) and other construction contract requirements. For HUD construction inspection tasks, the CI shall serve as HUD’s construction representative for completing various portions of HUD forms, procedures and other related tasks. The CI’s work products shall provide HUD with the field/site data necessary to make informed decisions regarding the construction phase of the HUD multifamily mortgage insurance underwriting and capital advance programs.

1.3 PERSONNEL

The CI is responsible for ensuring the contract manager and inspectors are thoroughly familiar with all HUD programs and procedures as they apply to the duties of the HUD representative (also called “HUD Design

Representative” or “HUD Inspector” in HUD handbooks, specifically

4460.1 and 4435.01, and the Multifamily Accelerated Processing (MAP)

Guide) and that they remain abreast of all changes to applicable handbooks, publications and forms. As the HUD representative on the project site, the CI shall be responsible for assisting other parties

(owner, sponsor, builder, supervisory architect, mortgage company, etc.) in utilizing HUD forms and procedures relative to the construction phase of the multifamily project development.

1.3.1 Contract Manager. The CI shall provide a contract manager who shall be responsible for the performance and quality of the work. The name of this person and an alternate (who shall act for the CI when the manager is absent for short periods of time) shall be identified in Section I, Key Personnel. These personnel shall be designated in writing to the Contracting

Officer within seven (7) business days of contract award and prior to revision. This submission shall be accompanied by the individual’s resume.

1.3.1.1 The contract manager (or alternate on a short term basis) shall have full authority to act for the CI on all contract matters relating to daily operations of this contract, insuring the requirements of this SOW and the Quality Control Plan are met, and reviewing each HUD Trip Report.

1.3.1.2 The contract manager or inspector shall be

available during normal duty hours in accordance with

Section C.1.6 to discuss problem areas with the

Government Technical Representative

(GTR), Government Technical Monitor (GTM), and /or the HUD

Construction Manager

(HUD CM) and, if necessary, to meet with one or more of them in the local HUD office at no additional cost to the government or to the price of inspection services.

1.3.1.3 The contract manager shall possess three

years of recent [within the past six (6) years] experience in managing and overseeing employees who perform multifamily construction inspection activities, or a total of five years of experience in overseeing employees performing combination of multifamily, single family, and commercial construction inspections, with a minimum of one of those five years being multifamily. The contract manager and alternate must also have at least three years of satisfactory experience in performing construction inspections which demonstrate the knowledge and experience listed below for inspectors, this experience need not be within the past 6 years.

1.3.2 Employees. The CI shall recruit, hire, train and supervise qualified employees. The Contracting Officer shall have the authority to restrict the assignment of any individual as an employee under the contract or any subcontracts that is identified as unqualified, or a potential threat to the health, safety, security, general well being, mission of the Department or its staff, or whom HUD may determine has any actual or potential conflict of interest.

1.3.2.1 The CI, its staff, and the subcontractor personnel shall present a neat and clean appearance and be easily recognized. This may be accomplished by wearing appropriate badges that contain the company name, employee name, and photo or any other method of identification. The CI’s employees and subcontractors shall not indicate they are agents or employed by HUD, but shall indicate that they are under contract with HUD.

1.3.2.2 The CI shall certify to the Contracting Officer that

the inspectors meet the below-stated minimum qualifications. Such certification shall be made within seven (7) business days after contract award and seven

(7) business days after hiring a new inspector; but, in any event, prior to any inspector performing inspections.

These employees, along with the contract manager and alternate, shall be considered Key Personnel. The CI shall not substitute Key Personnel without prior approval of the Contracting Officer.

1.3.2.3 The contract manager, alternate contract manager, and all inspectors shall possess three years of recent

(within the past six (6) years) satisfactory construction inspection experience related to the specific inspection tasks required by this contract. Satisfactory experience is defined as three years of recent multifamily construction inspection activities or five years of experience in a combination of multifamily, single family, and commercial construction inspections, with a minimum of one of those five years being multifamily.

Specific projects where multifamily experience was obtained will be listed with references who can confirm the experience. Inspection experience shall cover all activities and phases of a construction project, and not just a single activity or discipline. The experience shall demonstrate a record of performing acceptable construction and warranty inspections and related construction contract administration tasks as required by this contract. The experience shall clearly demonstrate the inspector’s knowledge of and familiarity with construction, construction inspection, and construction administration. The experience shall also demonstrate knowledge of national building codes and standards, current standard construction methods and procedures, Federal Fair Housing Accessibility Guidelines, and HUD regulations and handbook requirements to ensure compliance with it by the owner, builder and the supervisory architect. The complexity of some projects may mandate that they be assigned to an inspector whose background indicates the ability to perform those inspections.

1.3.2.4 When the CI has assigned an inspector to a project, that inspector shall continue to conduct all inspections at the property through final completion of construction phase and the two guarantee/warranty inspections. If, due to unforeseen circumstances, it becomes necessary to substitute an inspector assigned to a project, the CI shall inform the GTM/GTR at least seven (7) business days prior to the scheduled inspection which another inspector from the key personnel list is to be assigned. A substitute must have the background requirements necessary for any substitution on complex projects as discussed above.

1.3.2.5 The CI shall not employ or subcontract with any person who is a current or former civilian employee of the U.S. Government if the employment of that person would create a conflict of interest, an appearance of any conflict, or otherwise conflict with Department restrictions. The HUD Office of Counsel must approve employment of any person who is a current or former civilian employee of the U.S.

Government.

1.3.2.6 When the contract manager or alternate manager perform the role of inspector, the one who actually performs the inspection should, if possible, sign the HUD Trip Report in the block for HUD

Representative and the one who does not perform the inspection will sign as the Contract Manager to facilitate in providing an adequate quality assurance review of the report.

1.4 CONTRACTOR QUALITY CONTROL

1.4.1 The CI shall establish and maintain a complete quality control (QC) plan to ensure the requirements of the contract are provided as specified. One (1) copy of the CI’s QC plan shall be provided to the Contracting Officer and one (1) copy to the

GTR not later than the post-award conference. The CI shall provide a complete copy to the Contracting Officer and GTR as any updates/changes occur. The CI shall retain copies of all documents/records generated in the QC process and shall present them to the Contracting Officer upon request.

1.4.2 At a minimum, the QC plan shall:

1.4.2.1 Specify how all specific task of Section C.5.2, C.5.3, C.5.4, and C.5.5 will be reviewed including how the inspectors will be monitored to ensure timely and quality work

1.4.2.2 Indicate whether services are to be reviewed on a

scheduled or unscheduled basis.

1.4.2.3 Explain how reviews are to be conducted.

1.4.2.4 Identify name(s) and qualifications of the

individual(s) responsible for performing the QC reviews, and the specific areas/services to be inspected by such individuals.

1.4.2.5 Assure that MF projects are inspected and that HUD

construction inspection tasks are completed in accordance with all relevant HUD handbooks, requirements and procedures and thoroughly and accurately presented on the Trip Report form with supporting attachments.

1.4.2.6 Guard against dishonest, fraudulent or negligent acts.

1.4.2.7 Guard against errors and omissions by officers, employees or other authorized persons. If a problem is identified, the CI shall promptly take appropriate action to correct the problem. The CI shall keep a record of any such errors and omissions. At the request of the GTR/GTM, the CI shall make these records available for review. The CI shall design its quality control plan to assure its staff complies with HUD’s handbooks, requirements and procedures.

1.4.2.8 Guard against potential conflicts of interest.

1.4.2.8.1 When performing inspections or construction inspection tasks, the CI may become privy to privileged information about builders and design architects involved with HUD MF projects. This privileged information shall not be used by the CI (or anyone connected with the CI) against HUD, or the owner, sponsor, builder, supervisory architect, mortgage company, etc.

1.4.2.8.2 The CI, or any of its employees, shall not have any financial interest, direct or indirect, in any property

(other than this contract) associated with any HUD MF property that has been assigned to this contract.

1.4.2.8.3 The CI, or any of its employees, shall not be assigned and cannot perform inspections on projects in which they currently serve or served as the design and/or Supervisory

Architect.

1.4.2.9 Identify methods for selection of qualified

inspectors.

1.4.2.10 Provide a method to identify deficiencies in quality of services performed and take corrective action before the level of performance becomes unsatisfactory.

1.4.2.11 Ensure the complete documentation of all quality

control reviews and any corrective action required. The CI shall establish and maintain files for such documentation throughout the term of this contract. The filing method shall be such that all information relative to quality control inspections is logically grouped together and readily accessible. The files shall be made available to HUD upon demand during the CI’s regular business hours. The files shall be turned over to HUD within ten (10) business days of request.

1.5 PHYSICAL SECURITY

The CI shall be responsible for safeguarding all government property, primarily multifamily project construction contract documents, data and inspection records, and other related information. The CI shall be held liable for loss or misuse of government property due to causes such as neglect, negligence of employees and subcontractors, failure to secure property, or other misconduct by the CI.

1.6 HOURS OF OPERATION

The CI 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 GTM.

1.7 DELIVERABLES

Contract Deliverable Requirements are described in

Technical Exhibit 3.

1.8 HUD PUBLICATIONS AND FORMS

Publications and forms applicable to this contract are shown in Technical Exhibit 4.

SECTION C-2 DEFINITIONS

2.1 AIA - the American Institute of Architects, 1735 New York Ave., NW, Washington, DC 20006.

2.2 Application - the HUD-92013, Application for Multifamily Housing Project, and other required exhibits that are submitted by a sponsor or the mortgagee of record to a HUD Office to request issuance of a processing letter (Site Appraisal and Market

Analysis (SAMA), Feasibility Letter or Firm Commitment).

2.3 Architect or Supervisory Architect - the architect providing services to the sponsor/owner under the terms of the AIA-B181, Owner-Architect Agreement.

2.4 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 contract to avoid confusion when the CI’s role is discussed.

2.5 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.

2.6 CFR - Code of Federal Regulations.

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

2.8 Construction Contract Administration - the supervisory architect’s administration of the contract between the builder and project sponsor/owner in the construction of any MF project. HUD construction inspection tasks, to be performed by the CI as HUD’s

Representative, are defined in this contract.

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

2.10 Construction Manager (HUD CM) – the HUD employee in the

Multifamily Hub 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 in the Hub’s jurisdiction 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, but is referred to herein as the HUD CM. See Section

G.

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

2.12 Contract Inspector (CI)) – 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.

2.13 Contract Manager (CM) – the individual employed by the CI and designated to administer the terms and conditions of the contract and perform thorough quality assurance reviews of all contract deliverables prior to their submission to HUD.

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

2.15 Days – calendar days, unless otherwise specified as business days

2.16 FHAG - Fair Housing Accessibility Guidelines.

2.17 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.

2.18 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 CI signs the final HUD-95379, HUD Representative’s Trip Report, provided that the trip report is subsequently accepted by the GTM and the HUD

CM.

2.19 GTM - the Government Technical Monitor appointed in writing by the Contracting Officer. The GTM, for purposes of this contract, is subordinate to the GTR and assists the GTR in monitoring the

CI’s performance. The GTM will provide project-specific technical clarification, assistance, and direction to the CI in the performance of duties of this contract. The GTM provides technical advice and assistance to the GTR.

2.20 GTR - the Government Technical Representative appointed in writing by the Contracting Officer. The GTR monitors compliance with the provisions of this contract. See Section G.

2.21 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.

2.22 HUD Capital Advance Program - a program whereby HUD provides direct funding for construction, acquisition, or rehabilitation of a housing project for elderly or disabled persons.

2.23 HUD Inspection Procedures - paragraphs 3-1 through 3-17 in Chapter 3, Architectural Inspection, of HUD Handbook 4460.1 REV-2, Architectural Analysis and Inspections for Project Mortgage

Insurance; HUD Handbook 4435.01 REV-1, Project Construction and

Servicing Before Final Closing; and the MAP Guide. (Chapter 13 and other chapters or appendices) Required reporting via the HUD-

95379, HUD Representative Trip Report, is to be completed for each inspection per MAP Forms Catalog, or per instructions included on the form.

2.24 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.

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

2.26 Item(s) of Delayed Completion – construction-related work items beyond the builder’s control to complete and identified by the CI at final completion of the work (see 5.1.2 & 5.2.4.6).

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

2.28 MAP Guide - HUD’s guide to the Multifamily Accelerated

Processing (MAP) program. Available online at:

http://www.hud.gov/offices/hsg/mfh/map/mapguide/mapguide.cfm

2.29 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.

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

2.31 Pre-Construction Conference (PCC) - the meeting attended by the CI; builder; builder’s subcontractors (if possible); supervisory architect; owner/sponsor; consultants (if any); mortgage company http://www.hud.gov/offices/hsg/mfh/map/mapguide/mapguide.cfm

(if applicable); and HUD Housing Development staff to discuss the construction contract documents and applicable HUD requirements.

Required for every project and should precede the initial start of construction (if possible).

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

2.33 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.

2.34 Quality Control - those actions taken by a contractor to control the production of outputs to ensure that they conform to the contract requirements.

2.35 Special Purpose Inspections (SPIs) - the type of physical inspection performed on existing MF 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.

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

2.37 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 appropriate correspondence to the CI.

2.38 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).

2.39 UFAS - Uniform Federal Accessibility Standards.

SECTION C-3 GOVERNMENT FURNISHED ITEMS AND SERVICES

3.1 CONSTRUCTION-RELATED DOCUMENTS

After the CI has been assigned a project, the GTM will provide to the

CI, copies of construction related documents pertinent to the type of HUD program through which the project is funded or insured, which are necessary for the CI to inspect and perform construction inspection tasks for the assigned HUD MF projects.

Construction related documents forwarded to the CI, depending on the program type, as determined by the

GTR/GTM/HUD CM are as follows:

3.1.1 Set 3, as defined by 3.3 below, of the HUD-approved construction drawings and specifications

3.1.2 Construction contract between the builder and the owner/sponsor

3.1.3 Supervisory Architect’s Contract, AIA Document B-181 with HUD

Amendment

3.1.4 Drawings, specifications, and contract pertaining to offsite improvements (if applicable)

3.1.5 Escrow Agreement for Offsite Facilities (if applicable)

3.1.6 Builder’s Progress Schedule

3.1.7 Builder’s and/or Mortgagor’s Cost Breakdown – Schedules of

Values, Form HUD-2328

3.1.8 Project Capital Needs Assessment (PCNA) (if applicable)

3.1.9 Additional pertinent documents

3.2 WORK SPACE AT THE CONSTRUCTION SITE

Work space at the construction site for HUD personnel and the CI (as

HUD’s representative), is required by the addendum to the Building

Loan Agreement and the construction contract for projects under construction. The CI has the right of entry and free access to 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 CI shall immediately notify the GTR/GTM if it is denied such right of entry and free access. The CI shall not attempt to resolve any dispute regarding entry and free access unless specifically instructed by the

GTR/GTM to do so.-

3.3 HUD INSPECTOR’S SET OF PLANS AND SPECIFICATIONS

HUD shall retain two sets of plans and specifications at the field office, Set No. 1, the “Master Set” remains with the contract, and Set

No. 2 shall be used by the CM for processing change orders and review of inspections and similar functions. HUD provides a set of plans and specifications to the builder, Set No. 3, for use on the construction site (the builder’s “record set”). The CI shall use Set No. 3 of the plans and specifications during the construction period to confirm compliance with the plans and specifications as they perform each inspection. Upon completion of construction the builder will return this set to the owner. The builder’s record set (also know as the

HUD “as-built” set) is retained on-site during construction, and is given (with transmittal) to the sponsor/owner at the end of construction along with the Operating & Maintenance Manuals and other contract close-out requirements in Division 1 of the builder’s contract specifications. Warranty inspections will be performed using the HUD “as-built” set of record documents.

SECTION C-4 CONTRACTOR FURNISHED ITEMS AND SERVICES

The CI shall provide all necessary technical and clerical services, facilities, materials, supplies, travel, equipment, supervision, and personnel and other items and services, except as may be provided by

HUD and identified below, to perform the services as defined in this contract. HUD will pay the CI a flat fee per inspection (per site visit) as set forth in Section B, plus incentives or disincentives described in Technical Exhibit 2 and HUD will reimburse no expenses to the CI, unless specifically identified elsewhere in this contract.

SECTION C-5 INSPECTION OVERVIEW AND SPECIFIC TASKS

5.1 GENERAL INSPECTION OVERVIEW

5.1.1 HUD requires construction inspection services for selected MF projects. The CI shall perform construction inspections of new or substantial rehabilitation construction projects (Sections 202/811, 207, 220, 221(d)3 and (d)4, 232, and 241 projects) on a twice-per-month basis (approximately 14-15 day intervals and at least 10 days apart unless authorized by the GTR or GTM).

5.1.1.1 The CI shall monitor, evaluate, and record the

performance of the supervisory architect and the builder and perform HUD construction inspection tasks as required.

5.1.1.2 The CI shall make additional (more frequent)

inspections at the site of MF housing projects upon direction by the GTR. The contracting officer must authorize such additional inspections in the appropriate task order for that project prior to the GTR’s direction to the CI.

5.1.2 The CI shall also perform guarantee/warranty inspections, as discussed in more detail in 5.5. Each HUD MF project, after completion of construction, is typically covered by a one (1) year warranty against latent defects. Two (2) guarantee/warranty inspections are usually conducted during the warranty period: one close to the 9-month anniversary date of the completion of the construction and another approximately twenty-one (21) days prior to the 12th month anniversary dates of the Final Inspection/completion of construction. Warranty inspections identify latent defects and check items of delayed completion. During these inspections, the CI shall identify latent defects in materials and/or workmanship per the construction documents for repair/replacement under warranty, as well as identify any improper maintenance and casualty damage. The CI shall verify completion of any approved items of delayed completion (and sign Release of Escrow if applicable), and/or shall note the progress toward completion for any incomplete items of delayed completion.

5.1.3 SPECIAL PURPOSE INSPECTIONS The CI shall also perform, as required; inspections of existing MF insured and/or subsidized projects (named SPECIAL PURPOSE INSPECTIONS (SPI’s) in this contract). These inspections may be made to determine the condition of the property, whether the property is in decent, safe, and sanitary condition, and the cost and scope of repair work based on the results of the inspections; to inspect major items requiring specialized, technical investigation such as electrical, plumbing, foundation, or civil engineering; 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. Standards for decent, safe, and sanitary housing shall be based on 24 CFR

Part 5, subparagraph G. Actual scope of work, reporting documents, format and other details of SPI’s will be established in the order for the work. Section B (note See

Section B) subparagraphs entitled, Special Purpose

Inspections, reflect the SPI inspection fees on a per-hour basis that will be used to negotiate the final SPI price.

SPI’s shall be firm-fixed price or Indefinite Quantity/Fixed

Unit Rate (IQ/FUR) negotiated orders for work and are not covered by the provisions contained in Section C, Technical

Exhibit 2, Performance Requirements Summary/Standards; or

Technical Exhibit 3, Contract Deliverable Requirements Chart.

5.2 CONSTRUCTION INSPECTIONS – SPECIFIC PROJECT MONITORING TASKS

5.2.1 Projects Under Construction or Under Warranty. After

contract award, the contracting officer will assign projects to the CI for servicing which are already under construction or in need of warranty inspections. The GTM will provide to the CI copies of all pertinent construction-related documents necessary for the CI to inspect and perform construction contract administration tasks for these HUD MF projects.

5.2.2 New Projects. At any time after contract award, the

contracting officer will assign new projects to the CI for servicing under this contract. Prior to the initial endorsement/closing of a new project, HUD will, at its discretion, assign said project to the CI and forward all pertinent construction-related documents necessary to perform construction inspections, HUD construction contract administration tasks, and guarantee/warranty inspections.

5.2.3 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 HUD CM. The CM will orally brief the contractor and answer questions regarding the assignment. Appropriate activity for each project (inspections, HUD construction contract administration tasks, or warranty inspections) shall be per applicable sections of this contract.

In addition, the CI shall attend, and when necessary, conduct the

HUD Pre-construction conference, and afterwards submit summary meeting notes and list of attendees on a Trip Report (HUD-95379)

(photos not required) to the GTM and HUD CM within seven (7) 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. In addition, the CI shall attend the Architect’s/Builder’s Pre-construction meeting in the field, should one be held, and submit a Trip Report (this will typically occur during the contractor’s first trip to the project site.)

5.2.4 Twice-monthly construction inspections/site-visits/site-meetings for construction projects under Sections 202/811, 207, 220, 221(d)(3), 221(d)(4), 232 and 241.

5.2.4.1 The CI shall visit the job-site and inspect the

project twice per month (at approximately 14-15 day intervals at least 10 calendar days apart) 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 5.4, below. The CI shall schedule one of the twice-monthly inspections to coincide with the monthly Builder’s

Requisition (pay draw/HUD-92448) and meet with the builder, architect, owner, sponsor, consultant (if applicable), and lender (if applicable). The other monthly inspection shall be coordinated at the HUD

Preconstruction Conference with the builder’s schedule to ensure the presence of the builder’s supervisors or other workers.

5.2.4.1.1 The CI shall establish a schedule for their site visits at the HUD Preconstruction Conference with the Builder and Supervisory

Architect and commit to a consistent day and time each month for the

Draw meeting/inspection. For example, the fourth Thursday of each month at 1:00 PM. The second monthly inspection, the Progress/Non-

Draw inspection, shall be scheduled at the discretion of the CI.

5.2.4.1.2 The CI shall provide the GTM and HUD CM a schedule of the

CI’s scheduled site visits (dates and times by project) in advance, on a monthly basis.

5.2.4.2 It is anticipated that the “initial” and “permanent”

construction will start within a few days following initial endorsement. The CI shall inform all parties that the maximum number of days from the construction contract signing (at initial closing) until the initial start of construction is notated on the HUD construction contract. The CI shall insure that the builder documents the start dates of the

“initial” and “permanent” construction via appropriate letters from the builder to the CI. The CI shall forward said construction start letter(s) received from the builder to the GTM and HUD CM within seven (7) business days of receipt. Unless previously noted, the first visit shall verify whether construction has started within the time frame required by the construction contract and may involve the Builder’s first payment requisition (HUD-92448).

5.2.4.3 Construction Progress Inspections/Reviews. See

Handbook 4460.1 REV-2 and Chapter 13 of the MAP Guide for detailed instructions. During the visit, the CI 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 (if applicable). The CI shall:

5.2.4.3.1 Attend and participate in monthly job-site meetings with one inspection coinciding with the monthly review of the Builder’s Requisitions (HUD-92448), the draw meeting. The CI shall sign the requisition as HUD’s representative.

In order to review and approve the builder’s requisition, the emphasis of this site visit is on confirming actual progress of each building trade, evaluating the architect and builder’s administration, services and organization, and assisting the team with HUD requirements. At each monthly site visit, the CI shall briefly visit the construction office, then spend the majority of the site visit on the construction site reviewing the work for compliance with the construction contract documents. However, the emphasis on any area(s) of responsibility does not preclude the CI from reporting on all areas on each Trip

Report as specified herein.

5.2.4.3.2 Observe and report on construction activities of

on-site and off-site construction.

5.2.4.3.3 Observe and report on construction progress to evaluate the builder’s and architect’s performance. Include comments on the number of workers and trades on site during the inspection.

5.2.4.3.4 Evaluate conformance with builder’s progress schedule.

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

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

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

5.2.4.3.8 Discuss and report on:

5.2.4.3.8.1 All issues pertinent to the

construction contract.

5.2.4.3.8.2 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 (if any), stored materials, and accessory buildings/features. For single building projects report on the progress of each floor or wing, site work, off-site work (if any), stored materials, and accessory buildings/features.

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

5.2.4.3.8.4 Labor and EEO compliance.

5.2.4.3.9 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 multifamily project development. Issues, which cannot be settled on site, shall be initially referred to the GTM. (add a period)

5.2.4.3.10 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 site visit is made. Report findings in the Trip

Report.

5.2.4.3.11 After 80 percent project completion, bring to the

participants’ attention the following:

5.2.4.3.11.1 Definition of Final Completion of Work per the builder and owner’s construction contract, Article 2.E.

5.2.4.3.11.2 The owner (in all cases) and builder (where the Cost Plus

Contract is used) should meet with HUD’s financial and construction cost analysts, respectively, before 90 percent project completion to review cost certification submission requirements.

5.2.4.3.11.3 HUD may conduct a pre-(final) closing meeting

(conference). If a meeting is held, the CI shall explain and describe to all parties any observations that may delay or prevent HUD final closing/final endorsement.

5.2.4.3.12 If requested and/or directed by the GTM/GTR, the CI may be asked to re-inspect or provide additional or more frequent inspections.

5.2.4.3.13 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.

5.2.4.4 The CI shall record the results of all site visits

(inspections), meetings, issues discussed and conclusions reached on the HUD-95379, HUD Representative’s Trip Report

(Multifamily). The instructions contained in Handbooks 4460.1 REV-2,

4435.01 REV-1 and the MAP Guide, and the HUD-95379 instruction sheets to the form (see Section J sample form) shall be followed. The HUD-

95379 shall be a comprehensive report that includes all pertinent information the CI obtains while conducting an onsite inspection/visit/meeting. The CI shall sign any submitted HUD-95379 in the “HUD Representative” signature block. The original of the HUD-

95379 shall be submitted to the GTM with a copy to the HUD CM within seven (7) business days of each site visit (inspection).

5.2.4.4.1 For the purpose of completing the blocks at

the top of the HUD-95379, “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 CI shall request another HUD 5372 showing the new adjusted construction schedule, and the CI shall adjust the “Scheduled Progress” block at the top of the HUD-95379 to reflect the new percentage based on the new approved HUD 5372.

5.2.4.4.2 The CI shall:

5.2.4.4.2.1 Evaluate and report on the

builder’s organization, operations and supervision.

5.2.4.4.2.2 Evaluate and report on the

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

4460.1 REV-2 and paragraph 13.5 of the MAP Guide. As a minimum, each

Trip Report shall address the supervisory architect’s last visit to the project site, frequency of site visits, adequacy of site log, key activities being performed, and whether the service is considered acceptable or unacceptable.

5.2.4.4.2.3 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 or HUD CM immediately following their discovery and specifically identified on the HUD-95379 and typically include:

5.2.4.4.2.3.1 Work stoppage.

5.2.4.4.2.3.2 Builder abandons job.

5.2.4.4.2.3.3 A change in the builder, owner or architect during construction.

5.2.4.4.2.3.4 Construction defects

untreated for 30 days.

5.2.4.4.2.3.5 Builder cannot or will not

correct any construction defect or latent defect.

5.2.4.4.2.3.6 Use of questionable methods

of construction or materials.

5.2.4.4.2.3.7 Extended periods of bad

weather, strikes, etc.

5.2.4.4.2.3.8 Controlling jurisdiction

issues a stop work order.

5.2.4.4.2.3.9 Slow start or progress of

off-site work that would impair project occupancy.

5.2.4.4.2.3.10 Other conditions of

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

5.2.4.4.2.4 Listed below are six (6)

critical new construction inspection phases.

The contract inspector shall insure inspections occur at the initial occurrence of these critical inspection phases of each new construction project they inspect. If proper coordination and cooperation with the builder and their production schedule is in place, these should occur as one of the two monthly inspections. If this is not practical, or timing of such phases does not permit, then these inspections shall be accomplished as additional inspections during the month these critical phases occur. If it is determined that they must be accomplished as additional, above and beyond the normal two per month, inspections then, the contract inspector shall obtain authorization from the GTM to perform the additional inspections in the month that they occur. A table shall be maintained in each Trip Report through Final Inspection that lists the six critical phases and the date the inspection for each phase was completed. In addition, 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. Additionally, the inspector shall provide comments on the HUD-95379 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 inspector shall also comment on the Architect’s observations and/or oversight of each phase. There may be instances where a multiple of

Critical Phase Inspections could occur during the same inspection, such as; pre-sheetrock, firewalls, and roofing all performed on the same date.

5.2.4.4.2.4.1 Building Pad Complete, Ready for Formwork.

5.2.4.4.2.4.2 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.

5.2.4.4.2.4.3 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.

5.2.4.4.2.4.4 Fire Walls

5.2.4.4.2.4.5 Roofing. Including, but

not limited to: Covering, Flashing, and

Penetrations.

5.2.4.4.2.4.6 Formwork/Pre-Pour of

Concrete Site Paving and Curbs.

Including, but not limited to: Formwork, Reinforcement, and Compliance with UFAS, as applicable.

5.2.4.4.2.5 Report noncompliance with the

construction contract documents (plans and specifications) observed by the CI and/or the supervisory architect, including any work proceeding on pending changes awaiting HUD approval.

5.2.4.4.2.6 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. Report and list dollar amounts modified on Builder’s Requisition (HUD-92448).

5.2.4.4.2.7 Report any labor problems, equal

employment opportunity problems, or other labor related complaints either observed or reported.

5.2.4.4.2.8 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

5.2.4.4.2.9 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.

5.2.4.4.2.10 Report any serious construction

problems in accordance with Handbook 4460.1

REV-2, paragraph 3-14.A and the MAP Guide, paragraph 13.3.E.

5.2.4.5 Provide Photo Documentation of Construction Status

(on-going construction, final inspection and guarantee/warranty inspections). The CI 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, to the GTM and HUD CM within seven (7) business days of any site visit. 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 CI 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.

5.2.4.6 The CI 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 4460.1 REV-2 paragraphs 3-

16.A. and B, and Handbook 4435.01 REV-1, paragraph 1-11, and the MAP Guide, paragraph 13.6.B. 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 twice-monthly inspection(s), which are routinely scheduled. The permission to occupy form(s) for all the dwelling units in a project (see also Sec. 5.4.7 below) shall be completed/granted prior to, or simultaneous with, granting final completion (100%).

5.2.4.6.1 The HUD final completion inspection trip

report shall include the following statements or address the following issues:

5.2.4.6.1.1 “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.

5.2.4.6.1.2 “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…