19.5.5.1 Construction Contract
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. The Construction Contract (form HUD-92442M) must be used for new construction/substantial rehabilitation closings. The Construction Contract must be used in conjunction with the most recent edition of the AIA A201, General Conditions of the Contract for Construction (the AIA A201), approved for use in the HUD Multifamily programs. The RC Director will review the substantive terms of the construction contract documents. The AIA A201 may not be altered, except the standard binding arbitration provisions in the AIA A201 must be stricken, unless prohibited by applicable state law.
B. The Construction Contract provides alternative options for either Lump Sum or Cost Plus compensation.
Lump Sum may be used only when no identity of interest exists between Borrower and General Contractor.
Cost Plus may be used in any case and must be used when an identity of interest exists between Borrower and General Contractor.
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Chapter 19 Closing Guide 19.5 Additional Requirements for Insurance of Advances
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