12.18 Casualty Events During Construction
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States
A. A casualty claim may occur during construction that will require funding from a stakeholder’s insurance coverage. If the claim is payable under the Builder's Risk policy the funds shall be applied toward a change order (form HUD-92437) to correct the damage. For new construction or substantial rehabilitation projects, the amount to correct the damages must include the Davis-Bacon wage rate.
B. If the casualty claim is payable under the owner’s casualty insurance, the owner may choose another contractor to correct the damages, provided however, if Davis-Bacon wage rates apply, the other contractor must execute a contract form providing enforcement provisions as required for General Contractors in new construction transactions.
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Chapter 12 Page 12-47
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