5.3.3.2 When General Contractors are Required

A. The Borrower must hire a General Contractor to conduct all the work defined by the Project Architect and provide coordination as a single point of control for costs, scheduling, and conformance of the work to plans and specifications when one or more of the following conditions are true:

1. The Aggregate Cost of repairs and alterations exceed $15,000 per unit, excluding General Contractor fees;

2. The proposed work includes Level 3 Alterations; or

3. More than three licensed trade contractors are to be employed for the work.

• B. HUD may waive the requirement to hire a General Contractor when:

1. The Aggregate Cost of all repairs and alterations exceeds $15,000 per unit but work is limited primarily to Repairs and Level 1 Alterations; or,

2. The owner has substantial experience and proven ability planning and staging construction tasks, coordinating trades, and supplying general requirements.