12.8.6 Extension of Contract Time

A. Approval. The MAP Lender may approve an extension only where:

1. The delay is beyond the contractor’s control (e.g. strikes, adverse and unknown site conditions, bad weather exceeding the average for the season, etc.) and the delay is documented or associated with an approved change order,

2. The extension request is submitted within the limit provided by the contract and the general conditions for delays beyond the contractor’s control, and submitted concurrently with any requested changes in the work, and

3. The request is accompanied by a Surety’s written consent. There is no consent requirement where the project’s assurance of completion is by a cash escrow or letter of credit.

B. Funding. The Lender may require funding for the increased cost for interest, taxes, insurance, MIP and contractor’s general requirements by use of a cash escrow, excess mortgage proceeds, or non-profit’s Developer’s fee, if applicable, or from contingency reserve.

C. Enforcement. HUD may enforce liquidated damages in accordance with the terms of the construction contract (form HUD-92442M).

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Chapter 12 Construction Period 12.8 Change Orders – HUD Duties

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D. Required Documentation. Within 21 days of the date a construction delay occurs, the contractor must document the delay with the Architect in an extension request, which must include the written consent of the Surety and conform to AIA document A201, Article 8.3. The request must include:

1. Date of occurrence and number of calendar days it covered;

2. Effect on construction progress;

3. Cause of the delay. If the cause is of a continuing nature, submit the extension request when the cause ceases, but still record the initial date of occurrence and its effects on construction.