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CITY OF KINSTON

NORTH CAROLINA HOUSING FINANCE AGENCY

ESSENTIAL SINGLE-FAMILY REHABILITATION LOAN POOL PROGRAM

(ESFRLP27)

Rehabilitation Scope of Work

Stallings Residence

4744 Pauls Path Road La Grange

NC 28551

Bid Package Prepared by:

Jordan Kearney, Project Manager Jordan.kearney@kinstonnc.gov

(252) 939-4021

BID SUBMISSION CHECKLIST – ESFRLP27

City of Kinston – 4744 Pauls Path Road

Contractors must submit the following documents in a sealed envelope prior to the bid opening time. Please be sure to include all additional forms and attachments.

Required Forms

• Form A: Bid Proposal Form

• Form B: Bid Proposal Summary

• Form C: Itemized bid summaries

• Form D: Contractor Bid Qualification Form

Attached Exhibits

• Exhibit A: Project Map

• Exhibit B: Instructions to Bidders

• Exhibit C: Environmental Services Report (Lead, Radon, and Asbestos)

Submission Requirements Bids must be sealed, complete, and submitted on time. Incomplete bid packages may be rejected. Late bids will not be accepted.

ESSENTIAL SINGLE-FAMILY REHABILITATION LOAN POOL(ESFRLP) PROGRAM

BID PROPOSAL

Form A

It is certified that this proposal is made in good faith and without collusion or connection with any other person bidding on the same work, and that no City official, no City employee, no person who was an official or employee of the City within one year prior to execution of this bid, and no immediate family member of any such person will be admitted to any share or part of the contract or any benefit that may arise therefrom if the contract is awarded to this company.

It is distinctly understood that the City reserves the right to reject any and all bids or to waive any and all informalities therein should it deem it to be in the best interest of the City and/or owner, as outlined in the City's formal contract award policy.

It is understood that a lump-sum bid and/or the scope of work for a specific dwelling unit may be negotiated by the City and the low responsible bidder prior to contract execution, to meet program grant limits, or to meet estimate limits, and that contract awards may be made contingent upon such negotiation.

If this bid is not accepted with a formal contract award within 60 days after the public opening, it shall be deemed rejected.

The undersigned bidder guarantees the lump-sum bid for each unit quoted herein against any increase for 120 days following the bid opening, and agrees to execute contracts for all awarded units within 120 days following the public opening. If contracts for awarded dwelling units are not executed within 120 days following the public opening, the awards for those units may be rescinded. It is understood that negotiated bids shall be subject to these same contract execution limits, that is, if contracts are not negotiated, awarded, and executed within 120 days following the public opening, the awards for those units may be rescinded.

Firm Name

Officer’s Signature

Street Address

Date: City/State/Zip Code

ESSENTIAL SINGLE-FAMILY REHABILITATION LOAN POOL (ESFRLP) PROGRAM

BID PROPOSAL SUMMARY

Form B

The undersigned hereby declares that he has carefully examined the Work Write-Ups, and will provide all materials and equipment and perform all work in accordance with the Rehabilitation Specifications, the Work Write-Ups, and the requirements under them for the following sum to wit:

Dwelling Unit Bid Discount

Unit #1 – Stallings – 4744 Pauls Path Rd, La Grange

The bidder understands and agrees to the following conditions:

1. If there is a discrepancy between the lump-sum bid quoted above and the line-item bid attached to this proposal, the City reserves the right to reject the bid or negotiate the contract amount based on the line-item bid.

2. In the event of a tie for the lowest bid, the City will award the contract to the bidder submitting the highest discount.

3. It is understood that contracts will be individually awarded per dwelling unit.

4. The bidder understands that he may not submit a bid proposal exceeding

$30,000 for any of the units listed above unless he is licensed as a general contractor in the state of NC as specified by NCGS 87-1

Firm Name

Officer’s Signature

Street Address

Date: City/State/Zip Code

FORM C

ESSENTIAL SINGLE-FAMILY REHABILITATION LOAN POOL(ESFRLP) PROGRAM

CONTRACTOR BID QUALIFICATION FORM

Form D

(Submit only with first bid for each new Rehabilitation Program)

A. COMPANY INFORMATION

Company Name

Federal ID #

Name of Principal

Mailing Address

Business Phone

Alternate Phone

Email Address

1. NC General Contractor NC License #

Address Telephone

2. EPA Lead Abatement Contractor

NC License #

Address Telephone

3. Asbestos Abatement Contractor

NC License #

Address Telephone

4. Material Supplier

Address Telephone

5. Material Supplier (2)

Address Telephone

6. Plumbing Subcontractor NC License #

Address Telephone

7. Electrical Subcontractor NC License #

Address Telephone

8. Exterminator NC License #

Address Telephone

9. Other Subcontractor NC License #

Address Telephone

B. NAME AND TELEPHONE OF YOU BUSINESS INSURANCE PROVIDER:

Name Telephone

C. LIST THREE (3) HOMEBUILDING OR HOUSING REHABILITATION REFERENCES:

A. Name

Telephone

Address

B. Name

C. Name

D. SUBMIT A COPY OF THE NC GENERAL CONTRACTORS LICENSE

ASSOCIATED WITH THE BIDDER

A North Carolina General Contractors license associated with the entity submitting the bid is required if an individual unit bid is greater than $30,000.

E. SUBMIT A CERTIFICATE OF INSURANCE

The bidder shall include proof of all insurance coverages required in the Instructions to Bidders as part of the bid submission. This includes, at minimum, workers’ compensation and employer’s liability, general liability, professional insurance, and automobile liability insurance.

Please refer to page 13 of the Instructions to Bidders for the full list of required insurance documentation and coverage limits.

NORTH CAROLINA HOUSING FINANCE AGENCY

ESSENTIAL SINGLE-FAMILY REHABILITATION LOAN POOL PROGRAM

(ESFRLP27)

INSTRUCTIONS TO BIDDERS

For Rehabilitation Activities

IF MAILING BID:

IF DELIVERING BID IN

PERSON:

City of Kinston

Attn: Jordan Kearney, Community Development Planner

PO Box 339 207 East King St

Kinston, NC 28502

City of Kinston – City Hall Council Chambers 207 East King St

Kinston, NC 28501

Bid Opening

Date: Thursday, July 23, 2026 Time: 12:30 PM

Bid Package Prepared by:

Jordan Kearney, Project Manager Jordan.kearney@kinstonnc.gov

(252) 939-4021

EXHIBIT B

PART A. GENERAL INFORMATION FOR BIDDERS

1. Authority and Responsibility

The “Local Authority” referred to throughout this Instructions to Bidders shall mean the City of Kinston, including its policies, procedures, and designated staff administering the Essential Single‑Family Rehabilitation Loan Pool (ESFRLP). Each successful Bidder shall enter into a Contract for Housing Construction Work with the Homeowner of each dwelling to be rehabilitated (the “Owner”). The Local Authority shall serve as the Local Authority, responsible for administration of the work covered by these General Provisions and Construction Specifications, only to the extent referenced herein.

The "Local Building Inspector" is the designated administrative authority that checks and approves plans and issues permits to allow performance of property improvement projects, and which approves the work performed under the specific permit(s) issued for said projects, all in accordance with the adopted codes of the Local Authority.

The “Housing Rehabilitation Specialist (HRS)” is the staff member designated by the Local Authority to manage and oversee construction activities for ESFRLP projects. The HRS serves as the project’s quality‑control inspector and coordinator, performing all functions of contract administration related to construction quality, scheduling, and compliance with ESFRLP standards. With assistance from appropriate local staff, the HRS interprets the adopted codes of the Local Authority and the general provisions and construction specifications included herein. The HRS does not replace the Local Building Inspector, who remains the final authority regarding interpretation of applicable building codes and ordinances.

The "Contractor" is both of the following:

a) the name of the building construction company and its Owner(s) performing a project under an executed housing improvement contract; and

b) the unlicensed or state licensed building Contractor, and/or subcontractor, or authorized representative who has signed and executed the project contract documents.

The Contractor shall perform all work described in the Scope of Work (line-item specifications and plans), in accordance with the contract documents and the general provisions and specifications included herein. The Contractor shall perform as project manager, maintaining continuous contact with the Owner and the Housing Rehabilitation Specialist regarding the project status and any problems. The Contractor shall attempt to resolve minor problems with the assistance of the Owner when the task and the solution are nominal and implied in the scope of work and general provisions, without reliance on the expertise of the Housing Rehabilitation Specialist or Local Building Inspector.

The "Owner" is the legal Homeowner of record who enters into a contractual agreement with the Contractor for housing improvement sponsored by the Local Authority. The Owner shall make decisions and choices regarding items that require a selection of color (and style, if applicable). The Contractor shall notify the Housing Rehabilitation Specialist (HRS) of any changes in the original scope of work, minor problems, or issues affecting project progress. The HRS will then inform the Owner as appropriate. The Owner shall cooperate with the Contractor in a manner that will allow the work to progress as rapidly as possible.

2. Bid Procedures

Pre-Bid Conference/Delivery of Bid Documents. The Local Authority may require Bidders to attend a mandatory Pre-Bid Conference as a prerequisite to bidding on a particular project or projects. Bid packages consisting of Instructions to Bidders, Work Write-ups, and Bid Forms will be issued to the Contractor at the pre-bid conference held for that specific bid opening. All information given during the pre-bid conference will be available online on the City’s website.

Explanations to Bidders. The Contractor must satisfy himself as to the labor and materials needed. Any explanation desired by a Bidder regarding the meaning or interpretation of the advertisement for bids, drawings, specifications, etc., must be requested in writing to the Local Authority with sufficient time allowed for a reply to reach Bidders before the submission of their bids. Any interpretation made will be in the form of an addendum to the invitation for bids, drawings, specifications, etc., and will be furnished to all prospective Bidders. Its receipt by the Bidder must be acknowledged in the space provided on the bid form or by letter or telegram received before the time set for opening of bids. Oral explanations or instructions given before the award of the contract will not be binding. No changes to specifications will be permitted within three calendar days prior to the bid opening.

Conditions Affecting the Work. The Contractor certifies, by submission of a bid, that the Contractor has inspected each property included in his formal bid and has become familiar with the conditions under which the proposed work will be performed and with the requirements of the Scope of Work. Bidders should visit the site and take such other steps as may be reasonably necessary to ascertain the nature and location of the work, and the general and local conditions that can affect the work or the cost thereof. Failure to do so will not relieve Bidders from responsibility for estimating properly the difficulty or cost of successfully performing the work. The Local Authority will assume no responsibility for any understanding or representations concerning conditions made by any of its officers or agents prior to the execution of the contract, unless included in the advertisement for bids, the specifications, or related documents.

Trade or Brand Name. When a trade or brand name for a particular article, fixture, or object is specified in the work write-up or the Construction Specifications, it is meant only as a reference for standards, and any other manufacturer of a similar article, fixture, or object may meet the specification if the Housing Rehabilitation Specialist agrees that the alternative product is reasonably equivalent to the product requested in the written specifications. All Contractor requests for alternative products must be made in writing.

Preparation of Bids. Bids shall be submitted on the forms furnished, or copies thereof, and must be manually signed. If erasures or other changes appear on the forms, the person signing the bids must initial each erasure or change. E-mailed or faxed bids will not be considered, unless written authorization is provided to the Contractor by the Owners' Representative. The Contractor's Bid Proposal must be properly executed and submitted on the form provided. Bids by Contractors must be received by the Local Authority at the time and place specified in the Instructions to Bidders. The Proposal shall be made part of the Contract Documents.

No bid will be considered unless all individual work items on each Bid Form/Scope of Work (including formal addenda) are priced. In case of error in the total bid, the prices quoted for individual work items shall govern. Unless called for, alternate bids will not be considered.

Modification of bids already submitted will be considered if received at the office designated in the Instructions to Bidders by the time set for opening of bids.

Submittal of Bids. Sealed bids will be submitted to (1) If mailing bid: City of Kinston, Attn: Jordan Kearney, Community Development Planner, PO Box 339 (USPS- 28502), 207 E. King Street (delivery service), Kinston, NC 28501; (2) If delivering bid at bid opening: City of Kinston, Council Chambers, located at 207 E. King Street, Kinston, NC, prior to the designated bid opening time. Each bid must be submitted in a sealed envelope bearing on the outside the name of the bidder, the name of the project for which the bid is submitted, and the date and time of the bid opening.

If it is questionable that the postal service can deliver your bid prior to the bid opening time, the bid should be hand-delivered. All bids submitted must be typed or written in ink and signed by the Contractor's designated representative. All bid forms, an itemized bid summary for each unit, and all requested certifications must be submitted; failure to include all forms may result in rejection of a bid. Valid bids are expected from each Contractor. Submission of "courtesy bids" will be grounds for removal from participation in the applicable housing improvement program. Any bid may be withdrawn without prejudice prior to the official bid opening time.

Bids will be opened on Thursday, July 23, 2026, at 12:30 PM, in the City of Kinston-City Hall, Council Chambers, located at 207 E. King Street, Kinston, NC.

Contractors are welcome to be present at bid openings, but attendance is not required.

Award of Contract. Procurement procedures for federally-funded construction activity carried out during housing improvement grant programs are defined in 24CFR85.36 or equivalent federal regulations for hazard mitigation programs. Award of a contract for each individual housing unit will be made to that responsible Bidder whose bid, conforming to the invitation for bids, is most advantageous to the Local Authority, price and other factors considered. The Local Authority may, when in its interest, reject any or all bids or waive any informality in bids received.

Grant program procedures require that separate bid prices be submitted for each unit to be rehabilitated and that a separate contract be awarded for each individual unit to be rehabilitated. An individual contract award will be based on the lump sum bid submitted for that specific unit, corrected if necessary for errors in the addition of individual work items.

The Local Authority reserves the right to reject low bids and to rescind bid awards considering factors such as programmatic factors beyond the Local Authority's control and a bidder's inability to meet performance standards outlined herein.

The Bidder is advised that the Local Authority will receive a bid solely on behalf of the Owner and that any contractual arrangement for performance of the work will be between the Contractor and the Owner. The Local Authority and its agents will neither be a party thereto, nor liable thereon. On behalf of the Owner, the Local Authority awards the contract, conducts inspections of work in progress, completes final inspections, and coordinates building code compliance with the local Building Inspections Department.

The acceptance of the bid and awarding of the contract may be subject to the Owner receiving supplemental financing.

3. Licensing Requirements

Contracts for Housing Construction Work awarded through housing projects administered by the City of Kinston are not public awards and are not subject to the formal bidding process specified in NCGS 143-129. Each contract is an agreement between the Contractor and the Owner. The bidder must be licensed as a NC General Contractor if an individual unit bid is greater than $30,000. (All plumbing, HVAC, and electrical subcontractors, however, must be licensed.)

All rehabilitation activities performed on houses constructed prior to 1978 shall be conducted in strict accordance with 40 CFR Part 745: Lead Renovation, Repair, and Painting Program (April 22, 2008), and 10A NCAC41C.0900: NC Lead Based Paint Hazard Management Program for Renovation, Repair, and Painting. All contractors working on pre-1978 units must be Renovation, Repair and Painting Rule (RR&P) Certified Renovators working for Certified Renovation firms; only those contractors with both a firm certificate and the qualified renovator’s letter on file will be invited to bid on pre-1978 homes.

The City of Kinston shall maintain a file of each Contractor's current State License (if applicable), State Renovation Certification and current registration form (included in each bid package) to document valid inclusion of the Contractor's name on the Local Authority's approved List of Bidders. Also, prior to award of any housing construction work contract, the Contractor must furnish proof of the required liability and workers’ compensation insurance coverage described in Part B, Section 3: Insurance.

4. Work Write-Ups and Construction Specifications

The work write-up constitutes the basis for each job. Unless otherwise explicitly indicated in the work write-up, the Construction Specifications will be followed without variation. No verbal interpretations of the Construction Specifications will be made for bidding purposes or during construction without confirmation in writing by the Housing Rehabilitation Specialist. No changes in the scope of a work write-up will be considered valid without a signed Change Order (see Part B, Section 9: Change Orders). Any work to be performed by the Owner; i.e., "sweat equity" items, will be specifically stated in the work write-up, and will be subject to the same contractual conditions regarding performance and final inspection as the Contractor's work. The Contractor shall be held harmless from claims or non-performance penalties for "sweat equity" work items, including Contractor-performed work adversely affected by Owner- performed work.

Floor plans and other drawings are diagrammatic only, illustrating the general scope of the work, and do not show all of the work required, exact dimensions, or construction details. Questions concerning floor plans, particularly those related to bathroom and kitchen layout, should be discussed and resolved with the Housing Rehabilitation Specialist.

Where repair of an existing component is called for by the Scope of Work, the item is to be placed in "equal to new condition," either by repair or replacement. All damaged, lose or rotted material associated with the required repair shall be removed and replaced and the finished work shall match adjacent work in design, dimension and finish.

All work to be done shall be pursuant to all applicable codes, regulations, and local policies as they may be interpreted by the Housing Rehabilitation Specialist and/or the Local Building Inspector.

Cost allowances for various items may be provided. Whenever such cost allowances are provided, the Contractor will be required to document the actual costs of these items. An adjustment in the contract amount will be made by change order during the construction phase to reflect differences between the allowances and the actual costs, if any such differences exist.

5. Employment Requirements

A portion of the Local Authority's housing grant programs are financed with funds received from the federal government. Consequently, special conditions are established with respect to employment and business opportunities. Successful bidders must agree to abide by the following employment requirements during the performance of any housing construction work contract:

a) Conflict of Interest (2 CFR Part 200.318 General procurement standards)

Interest of Members, Officers, or Employees of the City, Members of Local Governing Body, or Other Public Officials. No member, officer, or employee of the City or its agents, no member of the City's governing body, and no other public official of the City who exercises any functions or responsibilities with respect to the program during his tenure or for one year thereafter, shall have any financial interest, direct or indirect, in this Contract or any subcontracts thereof, or the proceeds thereof, for work to be performed in connection with the program assisted under this agreement. Immediate family members of said members, officers, employees, and officials are similarly barred from having any financial interest in the program.

b) Nondiscrimination Clause - Section 109, Housing & Community

Development Act of 1974

The Contractor will not discriminate in any manner on the basis of race, color, creed, sex or national origin or other legally protected status with reference to the subject matter of this Contract, no matter how remote. This provision shall be enforced by action for specific performance, injunctive relief, or other remedy provided by law; and this provision shall be construed to such manner as to prevent and eradicate all discrimination based on race, color, creed, sex or national origin.

c) Age Discrimination Act of 1975, as amended - Nondiscrimination on the

Basis of Age

The Contractor will not discriminate against any qualified person on the basis of age, nor will the person be excluded from participation, be denied the benefits of, nor otherwise be subjected to discrimination under this Contract which receives or benefits from Federal financial assistance.

d) Section 504 of the Rehabilitation Act of 1973, as amended - Nondiscrimination on the Basis of Disability

The Contractor will not discriminate against any qualified disabled person, nor will the person be excluded from participation in, be denied the benefits of, nor otherwise be subjected to discrimination under this Contract which receives or benefits from Federal financial assistance.

e) Access to Records and Record Retainage Clause

1) The Contractor shall maintain the records outlined above for five (5) years after the City has received a Certificate of Completion from the State Grantor Agency in accordance with 24 CFR Section 570.490.

2) The City, the Federal and State Grantor Agencies, including the North Carolina Department of the Treasurer, the U.S. Department of Housing and Urban Development, the Comptroller General of the United States, and the North Carolina Department of Commerce, or any of their duly authorized representatives, shall have access to any books, documents, plans, papers, and records of the Contractor which are directly pertinent to this Contract, for the purpose of making audit, examination, excerpts, and transcriptions in compliance with the above Rule.

f) Lobbying Clauses

Required by Section 1352, Title 31, U. S. Code

1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

2) If any funds other than Federal appropriated funds have been paid or will be paid to any person by the undersigned for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.

This is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each failure.

g) Legal Remedies Provision and Termination Provision

1) The Contractor may terminate this Agreement immediately in the event the City fails to make payment of any amount due to the Contractor within sixty (60) days of its due date.

2) Either party may terminate this Agreement in the event the other party materially breaches this Agreement or fails to perform in any material respect its obligations hereunder; provided that if a party believes that the other party has materially defaulted under or breached this Agreement (other than a breach of a payment obligation) and desires to terminate this Agreement because of such breach or default, such party ("Aggrieved Party") shall give written notice of such intent to the breaching party ("Defaulting Party") and shall grant the Defaulting Party thirty (30) days in which to remedy the cause for termination. During such period, the parties shall make a good- faith effort to assist each other to remedy the breach. If the breach is not remedied or waived by the end of such period, then the Aggrieved Party may terminate this Agreement, effective as of the last day of such period.

3) This Agreement may be terminated by one party, if the other party (i) shall be or become insolvent, or admit in writing its inability to pay its debts as they mature, or make an assignment for the benefit of creditors; (ii) apply for or consent to the appointment of any receiver, trustee or similar officer for it or for all or any substantial part of its property; or such receiver, trustee or similar officer shall be appointed without the application or consent of the other party and such appointment shall not be dismissed within thirty (30) days of the date of such appointment; (iii) shall institute any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceeding related to it under the laws of any jurisdiction; or, any such proceeding shall be instituted (by petition, application or otherwise) against the other party and the same shall not be dismissed within thirty (30) days of the date of its institution; or (iv) shall liquidate, dissolve, terminate or suspend its business operations.

4) Either party may voluntarily terminate this Agreement by giving the other party at least sixty (60) days' advance written notice of such termination.

Upon receipt of a notice of termination from City, (i) the Contractor shall promptly discontinue all services (unless the notice directs otherwise) and deliver or otherwise make available to the City all data, drawings, specifications, reports, estimates, summaries, and such other information and materials as may have been accumulated by the Contractor in performing this Agreement, whether completed or in process, and (ii) City shall pay Contractor all fees and expenses due for services rendered through the date of termination, and reimburse the Contractor for all costs and expenses relating to commitments made by the Contractor prior to receipt of notice of termination.

h) Section 3 Clause

1) The work to be performed under this Contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

2) The parties to this Contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this Contract, the parties to this Contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations.

3) The Contractor agrees to send to each labor organization or representative of workers with which the Contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the Contractor's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.

4) The Contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part

135. The Contractor will not subcontract with any subcontractor where the Contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135.

5) The Contractor will certify that any vacant employment positions including training positions, that are filled (1) after the Contractor is selected but before the Contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the Contractor's obligations under 24 CFR Part 135.

6) Noncompliance with HUD’s regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD- assisted contracts.

7) Section 3 Covered Indian Housing Assistance Section 7(b) of the

Indian Self-Determination and Education Assistance Act (25 U.S.C.

450e). (Not applicable for this project).

PART B. GENERAL PROVISIONS GOVERNING CONSTRUCTION

1. Preconstruction Conference and Notice to Proceed

Prior to the start of work, the Local Authority will schedule a Preconstruction Conference with the Owner and the Contractor. At this conference, the starting date for work will be firmly established, the sequence of work will be reviewed, special situations (such as furniture storage and temporary relocation) clarified, and federal and state contract requirements identified. It is particularly important that the Owner be fully apprised of the extent of inconvenience that will be experienced as a result of rehabilitation or demolition/replacement housing activities. The Preconstruction Conference will include a thorough review of contract provisions related to the resolution of Owner/Contractor disputes that may arise.

Under no circumstances shall a Contractor initiate work on an individual rehabilitation project without receipt (by certified mail or hand delivery) of a formal Notice to Proceed (see Contractor's Handbook, Section III, Form CH.05) from the Local Authority, or without issuance of proper local building permits specified in Part B, Section 4: Permits and Codes, below.

2. Owner Responsibilities and Selection of Materials

The Owner shall cooperate with the Contractor, the Housing Rehabilitation Specialist, and the Local Building Inspector in a manner that will allow the work to progress as rapidly as possible. The Local Authority shall clearly advise the Owner that rehabilitation is not new construction, and that the Contractor will do the best job possible given the existing structural and cosmetic condition of the dwelling and the constraints of the Scope of Work.

When the Owner is to continue to occupy the premises during rehabilitation activity, the Owner shall cooperate with the Contractor in a reasonable manner to facilitate performance of the work, including abandonment of certain areas as may be essential to the conduct of the work, and moving or removing personal possessions that will interfere with the work.

At the Preconstruction Conference, the Owner and Contractor will be informed of the procedures for the selection of colors and patterns of various finish materials. The Contractor shall provide the Owner with at least three color choices and/or patterns for each specified finish material. Once the selections have been made, the "Owner's Selection of Materials and Finishes" form (CH.06) will be completed. This selection list will be signed by the Owner and the Contractor, and a copy will be given to the Housing Rehabilitation Specialist prior to commencement of any painting work, vinyl/carpet installation, vinyl siding installation, or roof covering.

3. Insurance

The Contractor shall carry the following insurance and submit a certificate of coverage to the Local Authority prior to or at the preconstruction conference. Failure to maintain the insurance shall be grounds for termination of the Contract:

General Liability Insurance – The Contractor shall carry (and require that there be carried by the subcontractors) commercial general liability insurance with not less than $1,000,000 per occurrence.

Professional Liability (Errors & Omissions) – not less than $1,000,000 per claim

Workers’ Compensation Insurance – as required by North Carolina law

Automobile Liability Insurance – not less than $1,000,000 combined single limit (if vehicles are used in the performance of work)

The City reserves the right to require additional coverage or higher limits if deemed necessary based on the scope of services.

4. Permits and Codes

The Contractor is expected to secure all necessary permits (building, plumbing, heating or electrical) and licenses before the start of work. The Contractor should make allowance for permitting costs in his bid. The Contractor shall also be responsible for providing any architectural/engineering drawings required by the Local Building Inspector, if reference to such drawings is made in the work write-up. Failure to obtain necessary permits will be grounds for the Housing Rehabilitation Specialist to delay start of the work, but no time extension for contract completion will be given. In all operations connected with the work covered by these provisions, all federal, state, county, and local ordinances and laws controlling or limiting the actions of those engaged in the work must be respected and complied with strictly.

The Contractor shall not be held responsible for the correction of pre-existing violations of any local or state development regulation or building code not addressed by the work write-up without compensation through execution of a Change Order; however, current code compliance will be required for any new or replacement work specified in the work write-up. The Contractor is encouraged to discuss any concerns related to current building code compliance with the Housing Rehabilitation Specialist and Local Building Inspector to ensure that the finished work is in full compliance with current building codes.

5. Utility Use by Contractor

For rehabilitation projects, the Owner will make existing house utilities available, without charge, to the Contractor including electric power, gas, heat, water, and telephone (local calls only).

6. Storage and Waste Disposal

If specified in the Scope of Work, the Contractor shall provide any necessary secured storage for the household furnishings, clothing, breakables, etc. Due to liability issues, a professional storage company is recommended. The Contractor is advised that an inventory (before and after) is required, unless waived by the Owner. The Contractor is advised to maintain photographic and/or video graphic and written documentation of the pre-storage condition of household items to be placed in temporary storage. The work write-up may include a bid line item for the cost of secured storage. The Contractor shall be responsible for the actual cost of the on-site storage he uses or the cost of off-site storage he arranges. The Contractor shall be responsible for determining the size of storage container/facility needed and including that cost on the storage line item in his bid. If the construction activity is located in a flood hazard area, the container must be elevated above Base Flood Elevation or belongings must be stored offsite in a secure location.

Normally, the Owner will be responsible for the boxing-up of breakables, personal items and clothing that must be removed to complete the work. The Contractor will be responsible for moving such boxed items, furniture, appliances, furnishings, etc., to another location in the home (and returning them to their original location), or if secured storage is provided, moving such items into and out of the storage facility, whether on-site or off-site. The Contractor is responsible for damage to or loss of any household items that are in his possession or in his agent's possession; i.e., moving to or from off-site storage. Occasionally, the Owner will be unable to box up personal items that need to be moved. If the Contractor is required to perform this duty, it will be indicated on the "storage" line item in the work write-up or specified by written change order.

The Contractor shall provide a waste container of appropriate size to accommodate daily clean-up of construction waste materials on all rehabilitation jobs.

7. General Construction Guidelines

The Contractor will be expected to carry out the work activities in accordance with standards and time limits for individual units as specified in each Contract for Housing Construction Work. All work will be conducted in a manner to minimize inconvenience to the Owner.

All plumbing (including gas lines), HVAC, and electrical work is to be performed by licensed subcontractors. These subcontractors will contact the Local Building Inspector directly to arrange for inspection and approval of all finished plumbing, HVAC, and electrical work. Additionally, any bid proposals submitted that include bids for individual units in excess of $40,000 must be submitted by a principal Contractor with an active NC General Contractor's license.

The Contractor will be expected to fully comply with the time limits set forth in each individual Contract for Housing Construction Work. If unavoidable delays are encountered, a time Change Order extending the date for completion of the entire bid package or for an individual unit shall be prepared and executed according to guidelines for Change Orders set forth herein.

Materials shall be stored to ensure the preservation of their quality and fitness for the work. Lawns or the structure shall not be used for storage purposes without the permission of the Owner. Storage of materials and equipment will be permitted only for the duration of the contract and removed prior to job closing. Further, any damage done to lawns or the structure resulting from storage of materials shall be corrected by the Contractor prior to job closing.

Clean-up and removal from the site of all debris and waste material resulting from the work shall be the responsibility of the Contractor who will, upon completion of work, and prior to job closing, leave the premises in broom clean condition. An on-site waste container shall be provided on all rehabilitation jobs. Any damage to the grounds or structure resulting from mobilization of equipment shall be corrected by the Contractor prior to job closeout. All interior and exterior glass surfaces affected by the housing improvement work shall be scraped and washed. When adjacent property is affected by any work done by the Contractor, it shall be the responsibility of the Contractor to take whatever steps are necessary to protect the adjacent property.

No smoking is permitted in interior areas while construction is underway.

Materials and fixtures that have been removed and replaced as part of the scope of work shall belong to the Contractor, unless otherwise agreed by the Owner, Contractor, and the Housing Rehabilitation Specialist at the time of the preconstruction conference and clearly specified in the Preconstruction Agreement.

Subcontractors shall be bound by the terms and conditions of the contract insofar as it applies to their work, but this shall not relieve the Contractor from full responsibility to the Owner for the proper completion of all work.

8. Default and Termination of Contract

a) Declaration of Default

The Local Authority may declare default of contract on the Owner's behalf for breach by the Contractor of any material term or condition of the Contract for Housing Construction Work. Material breach shall include, but shall not be limited to the following:

1) Failure to begin work under the contract within the time specified;

2) Failure to provide workmen, equipment, or materials adequate to perform the work in accordance with the work write-up and/or Construction Specifications;

3) Failure to comply with federal, state, or local regulations/program requirements;

4) Refusal to replace defective work;

5) Insolvency or bankruptcy; or failure to secure adequate financing to perform the work;

6) Failure to make prompt payment to workers, subcontractors, or suppliers;

7) Misrepresentation of information included on written contract documents submitted to the local authority;

8) Failure to maintain satisfactory work progress.

The Contractor's performance will be considered unsatisfactory if, at any time during the performance of a specific rehabilitation project, the percentage of the work completed (in dollars) is less than the percentage of contract time (in calendar days) elapsed by more than 15%. Percentage of work completed will be judged by the Housing Rehabilitation Specialist as the sum of materials and labor used to accomplish satisfactorily installed work in comparison to the total contract amount.

EXAMPLE: Contract Amount $30,500

Contract Time 60 Days

The Housing Rehabilitation Specialist, using the work write-up for reference, determines that the total amount of labor and materials spent by the Contractor on satisfactorily installed work is $4,710.00. This estimate is made on the 20th day following initiation of work.

To determine if progress is unsatisfactory:

1) 20 days / 60 days = 33.3% of contract time elapsed

2) $4,710 / $30,500 = 15.4% of work completed

3) 33.3% minus 15.4% = 17.9%

4) 17.9% is greater than 15%; therefore, the Contractor's progress is considered unsatisfactory.

b) Notice of Default and Settlement of Payment Disputes

The Contractor shall be notified in writing at least ten (10) working days in advance of the intention of the Local Authority to declare a Default of Contract.

If the violation is not corrected during this period, or if a written protest outlining the Contractor's position is not received by the Local Authority within ten (10) working days of receipt of the intent of the Insight Construction Manager to declare Default of Contract, the Local Authority shall terminate the Contract for Housing Construction Work.

Should the Local Authority elect to terminate a Contract for Housing Construction Work, partial payment shall be made as follows: The Contractor shall present the Housing Rehabilitation Specialist with an invoice summarizing labor and materials for work satisfactorily in place. The Housing Rehabilitation Specialist will review the invoice and recommend payment based on his estimate of work items satisfactorily performed. In no case will the Local Authority make a partial payment after default by a Contractor that exceeds 15% of the Insight Construction Manager's base estimate for partial payment, regardless of invoice documentation by the defaulting Contractor. If no invoice is submitted for partial payment under default, the Local Authority will make partial payment based on the Housing Rehabilitation Specialist’s base estimate for work performed.

Complaints or protests concerning contract termination and partial compensation shall be handled in accordance with Section 18 of the Contract for Housing Construction Work (see Contractor's Handbook, Section III).

All other contractual disputes shall be settled according to guidelines set forth in Section 18 of the Contract for Housing Construction Work.

c) Termination by Contractor

The Contractor may request time and/or cost change orders as necessary due to unavoidable delays because of inclement weather, materials shortages, or unanticipated structural or site conditions. The Housing Rehabilitation Specialist will recommend that the contract be terminated on the Contractor's behalf only under the following conditions:

1) It is impossible for the Contractor to obtain critical materials for completion of the contract within a practical time limit; or

2) It is impossible for the Contractor to comply with conditions of the contract due to inclement weather or unforeseen site conditions or unanticipated structural conditions, without a major change in contract scope and/or financial reimbursement.

The Local Authority will consider petitions for termination of the contract for the above-listed reasons only upon receiving written documentation from the Contractor. Should the Local Authority elect to terminate a contract on behalf of the Contractor, partial payment shall be made according to guidelines for partial payment under Part B, Section 8(b): Notice of Default and Settlement of Payment Disputes.

d) General Termination and Legal Remedies

The Contract for Housing Construction Work may also be terminated for additional reasons beyond the control of the Owner as outlined in within the Contract for Rehabilitation. In such case, the Local Authority will provide the Contractor with written notification of termination on behalf of the Owner.

Settlement of damages accrued by either party shall be as outlined under Part B, Section 8(b): Notice of Default and Settlement of Payment Disputes and under Sections 15 and 18 of the Contract for Housing Construction Work.

9. Change Orders

No variation in the work write-up or the Construction Specifications shall be made without a duly approved Change Order, regardless of whether or not any cost is involved. The Change Order will be prepared by the Contractor and the Housing Rehabilitation Specialist, and then signed by the Contractor, the Owner, and the Local Authority. No work covered by the Change Order shall be done until a written notice to proceed with the Change Order is presented to the Contractor by the Housing Rehabilitation Specialist Any extra work done without written authority shall be considered unauthorized work done at the expense of the Contractor. Work so done may be ordered by the Housing Rehabilitation Specialist to be removed and replaced at the Contractor's expense. In particular, the Contractor is cautioned not to perform Owner requests for additional work, including installation of specialty items, without preparation of a Change Order. Additionally, the Local Authority will not assume responsibility for any approved grant-financed work directly or indirectly affected by separate, unapproved agreements between the Owner and Contractor performed during the contract period, or for the quality of the unapproved Owner-financed work itself.

All change orders will be negotiated directly by the Contractor and the Insight Construction Manager based upon line-item costs included on the actual contractor's bid proposal. The Local Authority will not approve change orders that exceed 15% of the Housing Rehabilitation Specialist’s independent estimate.

10. Interim Inspections

The Owner and authorized local, state, and federal government agency representatives shall have the right to examine and inspect work included in any housing construction work contract financed by the Local Authority, and will inform the Local Authority directly of any noncompliance with the terms of the contract. Also, these representatives shall be permitted to examine and inspect all contracts, materials, equipment, payroll, and conditions of employment pertaining to residential construction work, including all relevant data and records. However, all orders or instructions to the Contractor will be given directly by the Local Authority on behalf of the Owner, not by the Owner or by other interested parties.

All…