12.2.2 Contract Administration

A. The HUD representative should describe the contract provisions for administering the work, including:

1. General contract administration responsibilities of the Lender, Borrower, Borrower’s Architect and/or supervising Architect, General Contractor, and HUD representative.

2. Procedures for:

   • Change orders;

• Requesting clarification of construction documents;

• Reporting and correcting non-compliant work;

• Requesting periodic payments and release of escrowed funds;

• Substantial completion of work or portions thereof; and,

  • Permissions to occupy, including management plans and rent rolls.

3. Work changes completed in anticipation of a future change order will be regarded as non-compliant. There will be no insured advances for such work or other work dependent on it.

4. Periodic advances:

   • Borrower’s and General Contractor’s required preparation of requests, including the field approval and subsequent processing;

• Provisions for submitting surveys, title reports, and other documentation in support of construction advances;

Requirements for contractor’s retainage and its release.

5. Stored materials and procedures to request payment for materials stored onsite, and components stored offsite where applicable (see Appendices 12B and 12C).

6. Offsite work and procedures to request payment for completed offsite work, the required retainage and its release.

7. Termination of contract(s). Provisions for terminating the construction contract and/or Architect’s contract, and the Lender’s responsibilities during the construction stage and in the event of a default.

MAP Guide, March 2021 Go to beginning of Chapter 12

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

Chapter 12 Page 12-3

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

Chapter 12 Construction Period 12.3 HUD Construction Inspection and Monitoring

Go to Table of Contents