Sample_Contract_CDBG_Rehab_ITB-32-2026-_1318_Gentry_Terrace_Interior_Remodel.pdf

MURFREESBORO COMMUNITY DEVELOPMENT DEPARTMENT

CONTRACT FOR REHABILITATION

CDBG

GRANTEE: City of Murfreesboro, Tennessee, acting through its Community Development Department, hereinafter referred to as "CITY."

THIS CONTRACT FOR REHABILITATION, hereinafter referred to as "CONTRACT," made this _____ day of ______________, 2026 by and between

[OWNER], hereinafter referred to as “OWNER,” whether one or more, and

[VENDOR], hereinafter referred to as “CONTRACTOR”.

The OWNER hereby employs the CONTRACTOR to do all the work and provide all materials, tools and machinery, supervision, etc., necessary for the rehabilitation of the property known as, 1318 Gentry Terrace, Murfreesboro, TN 37130, FOR the total sum of Dollars and Cents ($) all in accordance with this CONTRACT. Such rehabilitation is more particularly described in the CONTRACTOR’S Bid Response, attached hereto as Exhibit E and incorporated herein by reference.

This CONTRACT consists of all terms, provisions and conditions stated herein, all terms, provisions and conditions contained in the listed Exhibits, together with all terms, provisions and conditions contained in those documents which are specifically incorporated herein by reference.

Exhibit Title A Change Orders B Warranty and Warranty Procedure C Grievance Procedure

D ITB-32-2026- 1318 Gentry Terrace Interior Remodel E CONTRACTOR'S Bid Response

SECTION I General Conditions

1. After execution by the OWNER and CONTRACTOR, this CONTRACT will become effective only after approval by CITY as indicated by the signature of its authorized representative below.

2. The OWNER shall issue a written Proceed Order within ten (10) days from the date of approval of this CONTRACT by CITY.

3. The CONTRACTOR must commence work within fifteen (15) days after issuance of the Proceed Order. At the option of the OWNER, this contract may be canceled by failure of the CONTRACTOR to begin work on the date specified.

4. The CONTRACTOR must complete the work within forty-five (45) days after issuance of the Proceed Order in accordance with this CONTRACT, and in good and workmanlike manner. Failure to so complete the work may result in liquidated damages being assessed by the CITY at a rate of one percent (1%) of the total CONTRACT value per day for each day over the time provided for such completion of the work. The assessed damages will be calculated and deducted from the final payment made to the CONTRACTOR and will be credited to the loan balance of the OWNER.

5. In the event the CONTRACTOR fails to properly construct the improvements required by the plan incorporated herein and approved by the CITY, CONTRACTOR shall continue to be responsible to properly construct those improvements, notwithstanding the CITY and / or OWNER over-looked such failures or defects prior to acceptance of the work.

SECTION II General Requirements

1. The work to be performed under this CONTRACT is on a project assisted under the Community Development Block Grant program, which provides Federal financial assistance from the Department of Housing and Urban Development and subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (hereinafter, “Section 3”). Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project.

2. The parties to this CONTRACT will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this CONTRACT. The parties to this CONTRACT certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements.

3. The CONTRACTOR will send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contact or understanding, if any, a notice advising said labor organization or workers’ representative of CONTRACTOR'S commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training.

4. The CONTRACTOR will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part

135. The CONTRACTOR will not let any subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.

5. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued hereunder prior to the execution of this CONTRACT, shall be a condition of the Federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractors or subcontractors, its successors and assigns to those sanctions specified by the grant or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135.

6. The CONTRACTOR shall comply with the applicable regulations of the Secretary of Labor, United States Department of Labor, made pursuant to the so-called “Anti-Kickback Act” of June 13, 1934 (48 Stat. 94B; 62 Stat. 862; Title 18 U.S.C. Section 874; and Title 40 U.S.C., Section 376c) and any amendments or modifications thereof, shall cause appropriate provisions to be inserted in subcontracts to ensure compliance therewith by all subcontractors subject thereto, and shall be responsible for the submission of statements required of subcontractors thereunder, except as said Secretary of Labor may specifically provide for reasonable limitations, variations, tolerances and exemptions from the requirements thereof.

7. The CONTRACTOR will not discriminate against any employee or applicant for employment because of age, race, color, religion, sex, national origin or disability. The CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their age, race, color, religion, sex, national origin, or disability. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the CITY setting forth the provisions of this non-discrimination clause.

8. Pursuant to Executive Order 14173, CONTRACTOR must affirm its compliance in all respects with all applicable Federal anti-discrimination laws, and understands this affirmation is material to the CITY’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code. Further, CONTRACTOR must certify that it does not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.

SECTION III General Statement of Work

A. In addition to all requirements contained in CONTRACTOR'S Bid, in performing work pursuant to this CONTRACT, the CONTRACTOR shall:

1. Be responsible for adjacent property which is or may be affected or endangered by any work done under this contract, taking whatever steps are necessary for the protection of the adjacent property and for notifying the OWNER thereof of such hazard.

2. Not assign or sublet this contract without the written consent of the OWNER and approval by the CITY as Grantee. Any request for consent to an assignment shall be addressed to the OWNER, c/o the

CITY.

3. Indemnify and hold harmless and defend the OWNER, the CITY, and State of Tennessee, their agents, servants or employees, from and against any and all claims for injuries or damages to persons or property of whatsoever kind of character, whether real or asserted, resulting from, in whole or in part, the negligent or intentional acts or omissions of CONTRACTOR, its officers, employees and/or agents, including its subcontractors or independent contractors, in connection with the performance of this CONTRACT or the work to be performed hereunder. The CONTRACTOR hereby assumes all liability and responsibility for injuries, claims or suits for damages, to persons or property of whatsoever kind of character, whether real or asserted, occurring during the time the work is being performed and arising out of the performance of same, as provided herein.

4. Not commence work under this CONTRACT until all insurance required under this program has been secured and such insurance has been approved by the CITY.

5. All materials and equipment that have been removed and replaced as part of the work hereunder shall belong to and be removed by CONTRACTOR.

6. Maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to the CONTRACT and such other records as may be deemed necessary by the CITY to ensure proper accounting for all funds. These records will be available for audit purposes to the CITY or the State of Tennessee or any authorized representative and will be retained for three years after CONTRACT completion. The CITY, State of Tennessee, and any authorized representative shall have access to any other books, documents, papers, and records of the CONTRACTOR which are directly pertinent to this CONTRACT for the purpose of making audit, examination, excerpts, and transcriptions.

B. During the course of performance of work pursuant to this CONTRACT, the OWNER shall:

1. Not permit any changes or additions to the CONTRACT, work write-up, or plans without approval of the CITY. If any changes or additions are approved, a Change Order must be signed by the OWNER and the CONTRACTOR and approved by the CITY as provided in Exhibit A, and no work on such changes or additions shall be initiated until such Change Order is signed and approved.

2. Cooperate with the CONTRACTOR to facilitate the performance of the work, including the removal and replacement of rugs, coverings, and furniture as necessary.

3. Allow inspection by the CITY (and/or HUD) of the property whenever the CITY and/or HUD determines that such inspection is necessary.

4. Permit the CONTRACTOR to use, at no cost, existing utilities such as light, heat, power, and water necessary to carry out and complete the work.

5. Have the option, in the event of any breach of this CONTRACT and with CITY approval, to engage the services of another contractor to complete the work and to deduct the cost of such completion from any amount due the CONTRACTOR hereunder.

6. Allow payment in full to the CONTRACTOR, from the Community Development Department funds, subject to the CITY'S acceptance of the work as satisfactorily completed in accordance with this CONTRACT.

7. During the course of performance of work pursuant to the CONTRACT and for the duration of OWNER'S compliance period, maintain homeowner's insurance in an amount equal to the value of the residence following completion of the rehabilitation work pursuant to this CONTRACT. Such insurance shall name the CITY as an additional insured. Proof of such insurance shall be provided to the CITY by a certificate of insurance or endorsement as necessary. OWNER must notify CITY if the insurance policy is renewed, canceled or altered in any manner and provide written documentation of such alteration.

SECTION IV Warranty and Warranty Procedure

CONTRACTOR warrants all work performed pursuant to this CONTRACT for a period of one year from the date the homeowner signs the Certificate of Completion and Final Inspection. Warranty work shall be requested and performed in accord with the Warranty Procedure contained in Exhibit B hereto.

SECTION V Grievance Procedure

Any dispute between or among the CONTRACTOR, OWNER and / or CITY shall be resolved in accord with the Grievance Procedure contained in Exhibit C hereto.

SECTION VI Payment

1. Progress Payment - No more than one progress payment will be made on a rehabilitation project, and that only after at least 60 percent of the project is deemed complete. The payment will be no more than 55 percent of the CONTRACT amount, as modified by Change Orders, if any. Progress payment will be made only after the City’s representative has completed an inspection and all work performed to date has been accepted by the OWNER.

2. Final Payment -

A. FINAL INSPECTION - Upon completion of the rehabilitation work, a final inspection is held by the CITY. Any uncompleted work or work that is unsatisfactory is noted on a final “punch list” and sent to the CONTRACTOR in writing. When these items are completed to the satisfaction of the OWNER and the CITY'S inspector, the contract is complete.

B. CERTIFICATION - After the CITY determines that the rehabilitation work has been fully and satisfactorily completed, it will prepare a Certificate of Completion and Final Inspection.

C. OWNER STATEMENT OF ACCEPTANCE - The OWNER'S signature of the Certificate of Completion and Final Inspection indicates acceptance of the rehabilitation work as meeting the terms and conditions of the contract. If the OWNER refuses to sign the final acceptance, the CITY may authorize full payment for those items which are undisputed and acceptable to all parties.

SECTION VII Conflict of Interest, Kickback

No elected or appointed Federal, State and local official, member of the Murfreesboro City Council, nor any other public official or employee who exercises any functions or responsibilities in conjunction with the administration of Murfreesboro Housing Rehabilitation Program shall have any interest, direct or indirect, in the proceeds or benefits of the rehabilitation grant program.

No member of the Murfreesboro City Council or any City of Murfreesboro employee shall receive kickbacks or discounts from either CONTRACTORS or OWNERS in return for special favors in regard to housing rehabilitation.

SECTION VIII Entire Agreement; Change Orders

This instrument constitutes the entire agreement between the parties and no written or oral agreement of any kind exists to change these provisions. Specifically, no “side” or “additional” contracts are to exist between the OWNER and CONTRACTOR until this contract is completed unless it is a written Change Order, signed by both parties and approved by the CITY, in accord with Exhibit A.

SECTION IX Miscellaneous Provisions

1. Waiver - No waiver of any provision of this CONTRACT shall affect the right of any party thereafter to enforce such provision or to exercise any right or remedy available to it in the event of any other default.

2. Governing Law; Venue - The validity, construction and effect of this CONTRACT and any and all extensions and/or modifications thereof shall be governed by the laws of the State of Tennessee and the United States of America. Any action between the parties arising from this CONTRACT shall be maintained in the courts of Rutherford County, Tennessee.

3. Severability - Should any provision of this CONTRACT be declared to be invalid by any court of competent jurisdiction, such provision shall be severed and shall not affect the validity of the remaining provisions of this CONTRACT.

4. Survival. Section I(5) (Proper Construction), Section III(A)(3) (Indemnification), Section III(A)(6) (Recordkeeping); Section III(B)(3) (Inspection); Section III(B)(7) (Homeowner’s Insurance), Section IV (Warranty), Section V (Grievances) and Section IX(2) (Governing Law; Venue) of this CONTRACT shall survive and continue in full force in accordance with their terms notwithstanding the expiration or termination of this CONTRACT.

[signatures to appear on following page]

IN WITNESS WHEREOF, the parties have by their duly authorized representatives set out their signatures.

VENDOR

OWNER

Date: ________________________ Date: ________________________

OWNER

Date: ________________________

Witnessed By:

APPROVED BY CITY:

Name: Darren Gore Title: City Manager

APPROVED AS TO FORM:

Name: Adam F Tucker Title: City Attorney

EXHIBIT A

CHANGE ORDERS

Situations which did not show up during the work write-up are not uncommon in the housing rehabilitation process, and they can change the scope of work, especially if the new problem must be resolved to correct the underlying code deficiency. In such a case, a change order may be initiated.

A. Conditions necessitating a change order must meet the guidelines in Section 3 and Section 6 of the Housing Rehabilitation Program Policies and Procedures, all of which are incorporated herein by reference.

B. Change orders must be submitted in writing to the Community Development Department. The

City inspector assigned to the project, the homeowner, the contractor and the Community Development Director must sign off on the change order.

C. Because a change order may alter the City’s financial commitment to the project, all change orders should be approved by the Murfreesboro Mayor and Council. Change orders shall be submitted to the Mayor and Council for approval in a timely manner. If waiting until the next scheduled meeting of the Council will unreasonably delay the rehabilitation project, the Community Development Director may recommend to the City Manager approval of the change order. If the City Manager approves the change order, which must be less than $10,000 in amount, it will take effect immediately and will be reported to the Mayor and Council at its next meeting.

D. A change order that would cause the cost of the project to exceed the $25,000 cap must be approved by the Mayor and Council before work on the change order may proceed.

EXHIBIT B

WARRANTY WORK

All rehabilitation work done by the Contractor shall be warranted for one year from the date the homeowner signs the Certificate of Completion and Final Inspection indicating acceptance of the rehabilitation work as meeting the terms and conditions of the contract.

Should the homeowner notify the Community Development Department of a warranty claim, the department will:

1. Review rehabilitation project documents to determine if the complaint might be related to the work done;

2. Conduct an on-site inspection accompanied by the contractor or a designee to investigate the request for warranty work;

3. If an on-site inspection determines the requested repair is under warranty, the contractor will have 10 working days to resolve the warranty issue. Another inspection by the City will determine if the terms of the warranty have been satisfied.

4. If the complaint is not resolved within 10 days, a second notice will be issued to the contractor giving an additional five working days to resolve the warranty issue. If the complaint remains unaddressed or resolved unsatisfactorily, the contractor may be ruled ineligible for further participation in the Murfreesboro Housing Rehabilitation Program;

5. A contractor ruled ineligible will be notified by certified mail. The contractor may appeal the ruling within 15 working days of receiving notification. The appeal must be in writing, addressed to the Community Development Director, City of Murfreesboro, P.O. Box 1139, Murfreesboro, TN 37133;

6. When an appeal is received, the Community Development Director will investigate and either restore the contractor’s eligibility for program participation or sustain the earlier decision. The director reserves the right to report a contractor who fails to honor his contractual obligations to THDA and the U.S. Department of Housing and Urban Development with a recommendation for disbarment;

7. Before the Community Development Department will consider restoring eligibility, a contractor will be required to reimburse the City for any expense incurred to have another contractor satisfy the ineligible contractor’s warranty work.

EXHIBIT C

GRIEVANCE PROCEDURE

Disputes between the homeowner, the City of Murfreesboro and contractor may arise from time to time during the rehabilitation project. In those instances where a mutually satisfactory agreement cannot be reached between the parties, the Grievance Procedure will be followed. The Grievance Procedure will be made a part of the contract between the homeowner and the contractor.

If there is a dispute:

A. The grievance by the homeowner or contractor is to be filed with the Community Development

Director in writing.

B. The Community Development Director will meet with the homeowner and contractor and attempt to negotiate a solution.

If these steps are unsuccessful, all claims or disputes between the owners and contractor arising out of or related to the work shall be decided by arbitration in accordance with the construction industry arbitration rules of the American Arbitration Association then obtaining, unless the parties mutually agree otherwise.

If the arbitrator’s award is in a sum which is less than that which was offered in settlement by the contractor, the arbitrator may award costs and attorney’s fees in favor of the contractor. If the award of the arbitrator is in a sum greater than that which was offered in settlement by the owners, the arbitrator may award costs and attorney’s fees in favor of the owner.

The contract and the rehabilitation specifications, along with the housing code compliance inspection, provide the basic documentation by which the relative merits of any dispute will be judged.

APPROVED BY CITY: