A.12.3.6 Offsite Construction

A. Offsite construction is separate from work done under the Construction Contract for the project. Where offsite work is completed by the Borrower, rather than by a municipality or utility company, a

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Appendix 12 Construction Period A.12.4 Amendment to the Construction Contract for Payment for Components Stored Offsite

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separate construction contract is required, even if completed by the project contractor. Offsite work must also be funded from sources outside the mortgage, except that an escrow for its completion may be funded from available excess mortgage proceeds.

B. Completion Monitoring is performed by the HUD inspector and reported on the Trip Report, form HUD95379. See HUD Procedures.

C. Contractor’s Requisition is by letter to the Borrower. Do not use form HUD-92448 to reflect the value of acceptably completed offsite work, even if completed by the project contractor. Request for Approval of Advance of Escrowed Funds, form HUD-92464, is used.

D. Construction Changes for offsite work must be requested by letter. Form HUD-92437, Request for Construction Changes, may be used as a guide, but the form itself must not be used for offsite change orders.