12.2.1 General Requirements

A. A pre-construction conference is required for every new construction and substantial rehabilitation project and must precede the initial start of construction, including early start of construction. A preconstruction conference is optional for Section 223(f) projects depending upon the size and scope of the project, complexity of the repairs and experience of the development team. A pre-construction conference is not required for refinance projects where work is limited to repairs and level 1 alterations but is recommended when the cost and/or classification of work requires a Project Architect, except when the Architect’s task is limited to design of accessibility remedies. The HUD Inspector or the HUD CA conducts the pre-construction conference as the HUD representative and the conference should be held at initial endorsement or early start approval where feasible but may be scheduled shortly before or after endorsement if necessary. The necessary attendees and the topics to be covered are set forth below:

1. Expected attendees:

   • Borrower’s representative;

• Borrower’s supervisory Architect;

• General Contractor;

• Major subcontractor(s), i.e., principal trades, MEP, site, structural, finish or any with 15% or more of the work measured in hard cost;

• HUD representative (HUD CA or HUD Inspector);

  • HUD’s Underwriter;

• Lender’s representative; and,

• Representative from the Office of Davis-Bacon and Labor Standards for Davis-Bacon Wage related issues.

B. For new construction and substantial rehabilitation projects, the HUD representative should review the Supplementary Conditions of the Contract for Construction, form HUD-92554M, covering Davis-Bacon wage rates, special environmental conditions related to construction including issues regarding leadbased paint, asbestos, site contamination or the need for archaeological monitoring on site during excavation, Federal labor standards and equal employment provisions-related issues, including contract obligations of the General Contractor and all subcontractors as follows:

1. Certification of compliance with Davis-Bacon wage rates with each request for advances;

2. That Davis-Bacon wage rates are applicable to a second mortgage securing a governmental loan.

3. Statement of sanctions that may be imposed for not complying with the supplemental conditions.

4. Applicable Davis-Bacon wage decision and form HUD-92554M must be made part of the subcontracts for all tiers.

MAP Guide, March 2021 Go to beginning of Chapter 12

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 12 Page 12-2

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 12 Construction Period 12.2 Pre-Construction Conference

Go to Table of Contents

5. Importance of Federal wage payments, prompt certified payroll submissions and proper recordkeeping. A copy of the applicable Davis-Bacon wage decision and Form WH-1321, Notice to Employees, must be conspicuously posted at the job site.

6. Identifying HUD Labor Standards and Enforcement staff that will review labor standards compliance and answer any further inquiries concerning Davis-Bacon wage and reporting requirements.

7. The URL for Universal Source Locator to obtain the Equal Opportunity poster with instructions to post conspicuously at the job site.

8. Contractor’s Guide to Davis-Bacon.

9. Contractor’s registration with Elation Systems for Davis-Bacon prevailing wage payroll certification.