HO2-557-4413 Public Housing HVAC Replacements
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City Clerk Document No.
Public Housing Authority Commission Meeting Date: January 10, 2022
CITY OF CHANDLER SERVICES AGREEMENT
PUBLIC HOUSING HVAC REPLACEMENT
CITY OF CHANDLER AGREEMENT NO. HO2-557-4413
THIS AGREEMENT (Agreement) is made and entered into by and between the City of Chandler, an Arizona
municipal corporation (City), and Sunburst Mechanical, Inc., an Arizona Corporation (Contractor), (City and
Contractor may individually be referred to as Party and collectively referred to as Parties) and made
, 2022 (Effective Date).
RECITALS
A. City proposes to provide HVAC replacement services as more fully described in Exhibit A, which is
attached to and made a part of this Agreement by this reference.
B. Contractor is ready, willing, and able to provide the services described in Exhibit A for the compensation
and fees set forth and as described in Exhibit B, which is attached to and made a part of this Agreement by
this reference.
C. City desires to contract with the Contractor to provide these services under the terms and conditions set
forth in this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and the mutual promises contained in this
Agreement, City and Contractor agree as follows:
SECTION I: DEFINITIONS
For purposes of this Agreement, the following definitions apply:
Agreement means the legal agreement executed between the City and the Contractor
City means the City of Chandler, Arizona
Contractor means the individual, partnership, or corporation named in the Agreement
Days means calendar days
May, Should means something that is not mandatory but permissible
Shall, Will, Must means a mandatory requirement
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SECTION II: CONTRACTOR’S SERVICES
Contractor must perform the services described in Exhibit A to the City’s satisfaction within the terms and
conditions of this Agreement and within the care and skill that a person who provides similar services in
Chandler, Arizona exercises under similar conditions. All work or services furnished by Contractor under
this Agreement must be performed in a skilled and workmanlike manner. Unless authorized by the City
in writing, all fixtures, furnishings, and equipment furnished by Contractor as part of the work or services
under this Agreement must be new, or the latest model, and of the most suitable grade and quality for the
intended purpose of the work or service.
SECTION III: PERIOD OF SERVICE
Contractor must perform the services described in Exhibit A for the term of this Agreement.
Following execution of this Agreement by City, the Contractor will immediately commence work and will
complete all services described within 90 calendar days from the date the Contractor is notified to proceed.
SECTION lV: PAYMENT OF COMPENSATION AND FEES
Unless amended in writing by the Parties, Contractor's compensation and fees as more fully described in
Exhibit B for performance of the services approved and accepted by the City under this Agreement must
not exceed $163,389.18. Contractor must submit requests for payment for services approved and
accepted during the previous billing period and must include, as applicable, detailed invoices and
receipts, a narrative description of the tasks accomplished during the billing period, a list of any
deliverables submitted, and any subcontractor’s or supplier’s actual requests for payment plus similar
narrative and listing of their work. Payment for those services negotiated as a lump sum will be made in
accordance with the percentage of the work completed during the preceding billing period. Services
negotiated as a not-to-exceed fee will be paid in accordance with the work completed on the service
during the preceding month. All requests for payment must be submitted to the City for review and
approval. The City will make payment for approved and accepted services within 30 days of the City’s
receipt of the request for payment. Contractor bears all responsibility and liability for any and all tax
obligations that result from Contractor’s performance under this Agreement.
SECTION V: GENERAL CONDITIONS
5.1 Records/Audit. Records of the Contractor's direct personnel payroll, reimbursable expenses pertaining
to this Agreement and records of accounts between the City and Contractor must be kept on the basis of
generally accepted accounting principles and must be made available to the City and its auditors for up to
three years following the City’s final acceptance of the services under this Agreement. The City, its
authorized representative, or any federal agency, reserves the right to audit Contractor's records to verify
the accuracy and appropriateness of all cost and pricing data, including data used to negotiate this
Agreement and any amendments. The City reserves the right to decrease the total amount of Agreement
price or payments made under this Agreement or request reimbursement from the Contractor following
final contract payment on this Agreement if, upon audit of the Contractor's records, the audit discloses the
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Contractor has provided false, misleading, or inaccurate cost and pricing data. The Contractor will include
a similar provision in all of its contracts with subcontractors providing services under the Agreement
Documents to ensure that the City, its authorized representative, or the appropriate federal agency, has
access to the subcontractors’ records to verify the accuracy of all cost and pricing data. The City reserves
the right to decrease Contract price or payments made on this Agreement or request reimbursement from
the Contractor following final payment on this Agreement if the above provision is not included in
subcontractor agreements, and one or more subcontractors refuse to allow the City to audit their records
to verify the accuracy and appropriateness of all cost and pricing data. If, following an audit of this
Agreement, the audit discloses the Contractor has provided false, misleading, or inaccurate cost and pricing
data, and the cost discrepancies exceed 1% of the total Agreement billings, the Contractor will be liable for
reimbursement of the reasonable, actual cost of the audit.
5.2 Alteration in Character of Work. Whenever an alteration in the character of work results in a substantial
change in this Agreement, thereby materially increasing or decreasing the scope of services, cost of
performance, or Project schedule, the work will be performed as directed by the City. However, before any
modified work is started, a written amendment must be approved and executed by the City and the
Contractor. Such amendment must not be effective until approved by the City. Additions to, modifications,
or deletions from this Agreement as provided herein may be made, and the compensation to be paid to
the Contractor may accordingly be adjusted by mutual agreement of the Parties. It is distinctly understood
and agreed that no claim for extra work done or materials furnished by the Contractor will be allowed by
the City except as provided herein, nor must the Contractor do any work or furnish any materials not
covered by this Agreement unless such work is first authorized in writing. Any such work or materials
furnished by the Contractor without prior written authorization will be at Contractor's own risk, cost, and
expense, and Contractor hereby agrees that without written authorization Contractor will make no claim
for compensation for such work or materials furnished.
5.3 Termination for Convenience. The City and the Contractor hereby agree to the full performance
of the covenants contained herein, except that the City reserves the right, at its discretion and without
cause, to terminate or abandon any service provided for in this Agreement, or abandon any portion
of the Project for which services have been performed by the Contractor. In the event the City
abandons or suspends the services, or any part of the services as provided in this Agreement, the City
will notify the Contractor in writing and immediately after receiving such notice, the Contractor must
discontinue advancing the work specified under this Agreement. Upon such termination,
abandonment, or suspension, the Contractor must deliver to the City all drawings, plans,
specifications, special provisions, estimates and other work entirely or partially completed, together
with all unused materials supplied by the City. The Contractor must appraise the work Contractor has
completed and submit Contractor's appraisal to the City for evaluation. The City may inspect the
Contractor's work to appraise the work completed. The Contractor will receive compensation in full
for services performed to the date of such termination. The fee shall be paid in accordance with
Section IV of this Agreement, and as mutually agreed upon by the Contractor and the City. If there is
no mutual agreement on payment, the final determination will be made in accordance with the
Disputes provision in this Agreement. However, in no event may the payment exceed the payment
set forth in this Agreement nor as amended in accordance with Alteration in Character of Work. The
City will make the final payment within 60 days after the Contractor has delivered the last of the
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partially completed items and the Parties agree on the final payment. If the City is found to have
improperly terminated the Agreement for cause or default, the termination will be converted to a
termination for convenience in accordance with the provisions of this Agreement.
5.4 Termination for Cause. The City may terminate this Agreement for Cause upon the occurrence of any
one or more of the following events: in the event that (a) the Contractor fails to perform pursuant to the
terms of this Agreement, (b) the Contractor is adjudged a bankrupt or insolvent, (c) the Contractor makes
a general assignment for the benefit of creditors, (d) a trustee or receiver is appointed for Contractor or
for any of Contractor’s property (e) the Contractor files a petition to take advantage of any debtor's act, or
to reorganize under the bankruptcy or similar laws, (f) the Contractor disregards laws, ordinances, rules,
regulations or orders of any public body having jurisdiction, or (g) the Contractor fails to cure default within
the time requested. Where Agreement has been so terminated by City, the termination will not affect any
rights of City against Contractor then existing or which may thereafter accrue.
5.5 Indemnification. The Contractor (lndemnitor) must indemnify, defend, save and hold harmless the
City and its officers, officials, agents and employees (lndemnitee) from any and all claims, actions,
liabilities, damages, losses or expenses (including court costs, attorneys' fees and costs of claim
processing, investigation and litigation) (Claims) caused or alleged to be caused, in whole or in part,
by the wrongful, negligent or willful acts, or errors or omissions of the Contractor or any of its owners,
officers, directors, agents, employees, or subcontractors in connection with this Agreement. This
indemnity includes any claim or amount arising out of or recovered under workers' compensation law
or on account of the failure of the Contractor to conform to any federal, state or local law, statute,
ordinance, rule, regulation or court decree. The Contractor must indemnify lndemnitee from and
against any and all Claims, except those arising solely from lndemnitee's own negligent or willful acts
or omissions. The Contractor is responsible for primary loss investigation, defense and judgment
costs where this indemnification applies. In consideration of the award of this Agreement, the
Contractor agrees to waive all rights of subrogation against lndemnitee for losses arising from or
related to this Agreement. The obligations of the Contractor under this provision survive the
termination or expiration of this Agreement.
5.6 Insurance Requirements. Contractor must procure insurance under the terms and conditions and
for the amounts of coverage set forth in Exhibit C against claims that may arise from or relate to
performance of the work under this Agreement by Contractor and its agents, representatives,
employees, and subcontractors. Contractor and any subcontractors must maintain this insurance
until all of their obligations have been discharged, including any warranty periods under this
Agreement. These insurance requirements are minimum requirements for this Agreement and in no
way limit the indemnity covenants contained in this Agreement. The City in no way warrants that the
minimum limits stated in Exhibit C are sufficient to protect the Contractor from liabilities that might
arise out of the performance of the work under this Agreement by the Contractor, the Contractor’s
agents, representatives, employees, or subcontractors. Contractor is free to purchase such additional
insurance as may be determined necessary.
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5.7 Cooperation and Further Documentation. The Contractor agrees to provide the City such other
duly executed documents as may be reasonably requested by the City to implement the intent of this
Agreement.
5.8 Notices. Unless otherwise provided, notice under this Agreement must be in writing and will be
deemed to have been duly given and received either (a) on the date of service if personally served on
the party to whom notice is to be given, or (b) on the date notice is sent if by electronic mail, or (c) on
the third day after the date of the postmark of deposit by first class United States mail, registered or
certified, postage prepaid and properly addressed as follows:
For the City
For the Contractor
Name:__Larry Mickel__________________________
Name:__James Wendel______________________
Title:___Housing Project Coordinator__________
Title:_President_______________________________
Address:_235 S. Arizona Ave. _________________
Address:_4621 W. Tierra Buena_______________
Chandler, AZ 85225___________________________
_Glendale, AZ _________________________________
Phone:__480-782-3220________________________
Phone:__623-223-0687________________________
Email:_larry.mickel@chandleraz.gov___________
Email:_jwendel@sunburstmechanical.com____
5.9 Successors and Assigns. City and Contractor each bind itself, its partners, successors, assigns, and
legal representatives to the other party to this Agreement and to the partners, successors, assigns,
and legal representatives of such other party in respect to all covenants of this Agreement. Neither
the City nor the Contractor may assign, sublet, or transfer its interest in this Agreement without the
written consent of the other party. In no event may any contractual relation be created between any
third party and the City.
5.10 Disputes. In any dispute arising out of an interpretation of this Agreement or the duties required
not disposed of by agreement between the Contractor and the City, the final determination at the
administrative level will be made by the City Purchasing and Materials Manager.
5.11 Completeness and Accuracy of Contractor's Work. The Contractor must be responsible for the
completeness and accuracy of Contractor's services, data, and other work prepared or compiled
under Contractor's obligation under this Agreement and must correct, at Contractor's expense, all
willful or negligent errors, omissions, or acts that may be discovered. The fact that the City has
accepted or approved the Contractor's work will in no way relieve the Contractor of any of Contractor's
responsibilities.
5.12 Withholding Payment. The City reserves the right to withhold funds from the Contractor's
payments up to the amount equal to the claims the City may have against the Contractor until such
time that a settlement on those claims has been reached.
5.13 City's Right of Cancellation. The Parties acknowledge that this Agreement is subject to
cancellation by the City under the provisions of Section 38-511, Arizona Revised Statutes (A.R.S.).
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5.14 Independent Contractor. For this Agreement the Contractor constitutes an independent
contractor. Any provisions in this Agreement that may appear to give the City the right to direct the
Contractor as to the details of accomplishing the work or to exercise a measure of control over the
work means that the Contractor must follow the wishes of the City as to the results of the work only.
These results must comply with all applicable laws and ordinances.
5.15 Project Staffing. Prior to the start of any work under this Agreement, the Contractor must assign
to the City the key personnel that will be involved in performing services prescribed in the Agreement.
The City may acknowledge its acceptance of such personnel to perform services under this
Agreement. At any time hereafter that the Contractor desires to change key personnel while
performing under the Agreement, the Contractor must submit the qualifications of the new personnel
to the City for prior approval. The Contractor will maintain an adequate and competent staff of
qualified persons, as may be determined by the City, throughout the performance of this Agreement
to ensure acceptable and timely completion of the Scope of Services. If the City objects, with
reasonable cause, to any of the Contractor's staff, the Contractor must take prompt corrective action
acceptable to the City and, if required, remove such personnel from the Project and replace with new
personnel agreed to by the City.
5.16 Subcontractors. Prior to beginning the work, the Contractor must furnish the City for approval
the names of subcontractors to be used under this Agreement. Any subsequent changes are subject
to the City’s written prior approval.
5.17 Force Majeure. If either party is delayed or prevented from the performance of any act required
under this Agreement by reason of acts of God or other cause beyond the control and without fault
of the Party (financial inability excepted), performance of that act may be excused, but only for the
period of the delay, if the Party provides written notice to the other Party within ten days of such act.
The time for performance of the act may be extended for a period equivalent to the period of delay
from the date written notice is received by the other Party.
5.18 Compliance with Laws. Contractor understands, acknowledges, and agrees to comply with the
Americans with Disabilities Act, the Immigration Reform and Control Act of 1986 and the Drug Free
Workplace Act of 1989. All services performed by Contractor must also comply with all applicable City
of Chandler codes, ordinances, and requirements. Contractor agrees to permit the City to verify
Contractor’s compliance.
5.19 No Israel Boycott. By entering into this Agreement, Contractor certifies that Contractor is not
currently engaged in, and agrees for the duration of the Agreement, not to engage in a boycott of
Israel as defined by state statute.
5.20 Legal Worker Requirements. A.R.S. § 41-4401 prohibits the City from awarding a contract to any
contractor who fails, or whose subcontractors fail, to comply with A.R.S. § 23-214(A). Therefore,
Contractor agrees Contractor and each subcontractor it uses warrants their compliance with all
federal immigration laws and regulations that relate to their employees and their compliance with§
23-214, subsection A. A breach of this warranty will be deemed a material breach of the Agreement
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and may be subject to penalties up to and including termination of the Agreement. City retains the
legal right to inspect the papers of any Contractor’s or subcontractor’s employee who provides
services under this Agreement to ensure that the Contractor and subcontractors comply with the
warranty under this provision.
5.21 Lawful Presence Requirement. A.RS. §§ 1-501 and 1-502 prohibit the City from awarding a
contract to any natural person who cannot establish that such person is lawfully present in the United
States. To establish lawful presence, a person must produce qualifying identification and sign a City-
provided affidavit affirming that the identification provided is genuine. This requirement will be
imposed at the time of contract award. This requirement does not apply to business organizations
such as corporations, partnerships, or limited liability companies.
5.22 Covenant Against Contingent Fees. Contractor warrants that no person has been employed or
retained to solicit or secure this Agreement upon an agreement or understanding for a commission,
percentage, brokerage, or contingent fee, and that no member of the Chandler City Council, or any
City employee has any interest, financially, or otherwise, in Contractor’s firm. For breach or violation
of this warrant, the City may annul this Agreement without liability or, at its discretion, to deduct from
the Agreement price or consideration, the full amount of such commission, percentage, brokerage,
or contingent fee.
5.23 Non-Waiver Provision. The failure of either Party to enforce any of the provisions of this
Agreement or to require performance of the other Party of any of the provisions hereof must not be
construed to be a waiver of such provisions, nor must it affect the validity of this Agreement or any
part thereof, or the right of either Party to thereafter enforce each and every provision.
5.24 Disclosure of Information Adverse to the City’s Interests. To evaluate and avoid potential conflicts
of interest, the Contractor must provide written notice to the City, as set forth in this Section, of any
work or services performed by the Contractor for third parties that may involve or be associated with
any real property or personal property owned or leased by the City. Such notice must be given seven
business days prior to commencement of the services by the Contractor for a third party, or seven
business days prior to an adverse action as defined below. Written notice and disclosure must be sent
to the City’s Purchasing and Materials Manager. An adverse action under this Agreement includes, but
is not limited to: (a) using data as defined in the Agreement acquired in connection with this
Agreement to assist a third party in pursuing administrative or judicial action against the City; or (b)
testifying or providing evidence on behalf of any person in connection with an administrative or
judicial action against the City; or (c) using data to produce income for the Contractor or its employees
independently of performing the services under this Agreement, without the prior written consent of
the City. Contractor represents that except for those persons, entities, and projects identified to the
City, the services performed by the Contractor under this Agreement are not expected to create an
interest with any person, entity, or third party project that is or may be adverse to the City’s interests.
Contractor's failure to provide a written notice and disclosure of the information as set forth in this
Section constitute a material breach of this Agreement.
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5.25 Data Confidentiality and Data Security. As used in the Agreement, data means all information,
whether written or verbal, including plans, photographs, studies, investigations, audits, analyses, samples,
reports, calculations, internal memos, meeting minutes, data field notes, work product, proposals,
correspondence and any other similar documents or information prepared by, obtained by, or transmitted
to the Contractor or its subcontractors in the performance of this Agreement. The Parties agree that all
data, regardless of form, including originals, images, and reproductions, prepared by, obtained by, or
transmitted to the Contractor or its subcontractors in connection with the Contractor's or its
subcontractor’s performance of this Agreement is confidential and proprietary information belonging to
the City. Except as specifically provided in this Agreement, Contractor or its subcontractors must not
divulge data to any third party without the City’s prior written consent. Contractor or its subcontractors
must not use the data for any purposes except to perform the services required under this Agreement.
These prohibitions do not apply to the following data provided to the Contractor or its subcontractors have
first given the required notice to the City: (a) data which was known to the Contractor or its subcontractors
prior to its performance under this Agreement unless such data was acquired in connection with work
performed for the City; or (b) data which was acquired by the Contractor or its subcontractors in its
performance under this Agreement and which was disclosed to the Contractor or its subcontractors by a
third party, who to the best of the Contractor's or its subcontractors knowledge and belief, had the legal
right to make such disclosure and the Contractor or its subcontractors are not otherwise required to hold
such data in confidence; or (c) data which is required to be disclosed by virtue of law, regulation, or court
order, to which the Contractor or its subcontractors are subject. In the event the Contractor or its
subcontractors are required or requested to disclose data to a third party, or any other information to
which the Contractor or its subcontractors became privy as a result of any other contract with the City, the
Contractor must first notify the City as set forth in this Section of the request or demand for the data. The
Contractor or its subcontractors must give the City sufficient facts so that the City can be given an
opportunity to first give its consent or take such action that the City may deem appropriate to protect such
data or other information from disclosure. Unless prohibited by law, within ten calendar days after
completion or termination of services under this Agreement, the Contractor or its subcontractors must
promptly deliver, as set forth in this Section, a copy of all data to the City. All data must continue to be
subject to the confidentiality agreements of this Agreement. Contractor or its subcontractors assume all
liability to maintain the confidentiality of the data in its possession and agrees to compensate the City if
any of the provisions of this Section are violated by the Contractor, its employees, agents or subcontractors.
Solely for the purposes of seeking injunctive relief, it is agreed that a breach of this Section must be deemed
to cause irreparable harm that justifies injunctive relief in court. Contractor agrees that the requirements
of this Section must be incorporated into all subcontracts entered into by Contractor. A violation of this
Section may result in immediate termination of this Agreement without notice.
5.26 Personal Identifying Information-Data Security. Personal identifying information, financial
account information, or restricted City information, whether electronic format or hard copy, must be
secured and protected at all times by Contractor and any of its subcontractors. At a minimum,
Contractor must encrypt or password-protect electronic files. This includes data saved to laptop
computers, computerized devices, or removable storage devices. When personal identifying
information, financial account information, or restricted City information, regardless of its format, is
no longer necessary, the information must be redacted or destroyed through appropriate and secure
methods that ensure the information cannot be viewed, accessed, or reconstructed. In the event that
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data collected or obtained by Contractor or its subcontractors in connection with this Agreement is
believed to have been compromised, Contractor or its subcontractors must immediately notify the
City contact. Contractor agrees to reimburse the City for any costs incurred by the City to investigate
potential breaches of this data and, where applicable, the cost of notifying individuals who may be
impacted by the breach. Contractor agrees that the requirements of this Section must be incorporated
into all subcontracts entered into by Contractor. It is further agreed that a violation of this Section
must be deemed to cause irreparable harm that justifies injunctive relief in court. A violation of this
Section may result in immediate termination of this Agreement without notice. The obligations of
Contractor or its subcontractors under this Section must survive the termination of this Agreement.
5.27 Jurisdiction and Venue. This Agreement is made under, and must be construed in accordance
with and governed by the laws of the State of Arizona without regard to the conflicts or choice of law
provisions thereof. Any action to enforce any provision of this Agreement or to obtain any remedy
with respect hereto must be brought in the courts located in Maricopa County, Arizona, and for this
purpose, each Party hereby expressly and irrevocably consents to the jurisdiction and venue of such
court.
5.28 Survival. All warranties, representations, and indemnifications by the Contractor must survive
the completion or termination of this Agreement.
5.29 Modification. Except as expressly provided herein to the contrary, no supplement, modification,
or amendment of any term of this Agreement will be deemed binding or effective unless in writing
and signed by the Parties.
5.30 Severability. If any provision of this Agreement or the application to any person or circumstance
may be invalid, illegal or unenforceable to any extent, the remainder of this Agreement and the
application will not be affected and will be enforceable to the fullest extent permitted by law.
5.31 Integration. This Agreement contains the full agreement of the Parties. Any prior or
contemporaneous written or oral agreement between the Parties regarding the subject matter is
merged and superseded.
5.32 Time is of the Essence. Time of each of the terms, covenants, and conditions of this Agreement
is hereby expressly made of the essence.
5.33 Date of Performance. If the date of performance of any obligation or the last day of any time
period provided for should fall on a Saturday, Sunday, or holiday for the City, the obligation will be
due and owing, and the time period will expire, on the first day after which is not a Saturday, Sunday
or legal City holiday. Except as may otherwise be set forth in this Agreement, any performance
provided for herein will be timely made if completed no later than 5:00 p.m. (Chandler time) on the
day of performance.
5.34 Delivery. All prices are F.O.B. Destination and include all delivery and unloading at the specified
destinations. The Contractor will retain title and control of all goods until they are delivered and accepted
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by the City. All risk of transportation and all related charges will be the responsibility of the Contractor. All
claims for visible or concealed damage will be filed by the Contractor. The City will notify the Contractor
promptly of any damaged goods and will assist the Contractor in arranging for inspection.
5.35 Third Party Beneficiary. Nothing under this Agreement will be construed to give any rights or
benefits in the Agreement to anyone other than the City and the Contractor, and all duties and
responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of
City and the Contractor and not for the benefit of any other party.
5.36 Conflict in Language. All work performed must conform to all applicable City of Chandler codes,
ordinances, and requirements as outlined in this Agreement. If there is a conflict in interpretation
between provisions in this Agreement and those in the Exhibits, the provisions in this Agreement
prevail.
5.37 Document/Information Release. Documents and materials released to the Contractor, which are
identified by the City as sensitive and confidential, are the City’s property. The document/material
must be issued by and returned to the City upon completion of the services under this Agreement.
Contractor’s secondary distribution, disclosure, copying, or duplication in any manner is prohibited
without the City’s prior written approval. The document/material must be kept secure at all times. This
directive applies to all City documents, whether in photographic, printed, or electronic data format.
5.38 Exhibits. The following exhibits are made a part of this Agreement and are incorporated by
reference:
Exhibit A - Scope of Services
Exhibit E – Site Maps
Exhibit B - Compensation and Fees
Exhibit F – Davis Bacon
Exhibit C - Insurance Requirements
Exhibit G - HUD Instructions
Exhibit D - Special Conditions
Exhibit H – HUD Forms
5.39 Special Conditions. As part of the services Contractor provides under this Agreement, Contractor
agrees to comply with and fully perform the special terms and conditions set forth in Exhibit D, which
is attached to and made a part of this Agreement.
5.40 Cooperative Use of Agreement. In addition to the City of Chandler and with approval of the
Contractor, this Agreement may be extended for use by other municipalities, school districts and
government agencies of the State. Any such usage by other entities must be in accordance with the
ordinance, charter and/or procurement rules and regulations of the respective political entity.
If required to provide services on a school district property at least five times during a month, the
Contractor will submit a full set of fingerprints to the school of each person or employee who may
provide such service. The District will conduct a fingerprint check in accordance with A.R.S. 41-1750
and Public Law 92-544 of all Contractors, subcontractors or vendors and their employees for which
fingerprints are submitted to the District. Additionally, the Contractor will comply with the governing
body fingerprinting policies of each individual school district/public entity. The Contractor, sub-
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contractors, vendors and their employees will not provide services on school district properties until
authorized by the District.
Orders placed by other agencies and payment thereof will be the sole responsibility of that agency.
The City will not be responsible for any disputes arising out of transactions made by other agencies
who utilize this Agreement.
5.41 Non-Discrimination and Anti-Harassment Laws. Contractor must comply with all applicable City,
state, and federal non-discrimination and anti-harassment laws, rules, and regulations.
5.42 Licenses and Permits. Beginning with the Effective Date and for the full term of this Agreement,
Contractor must maintain all applicable City, state, and federal licenses and permits required to fully
perform Contractor’s services under this Agreement.
5.43 Warranties. Contractor must furnish a two-year warranty on all work and services performed
under this Agreement. Contractor must furnish, or cause to be furnished, a two-year warranty on all
fixtures, furnishings, and equipment furnished by Contractor, subcontractors, or suppliers under this
Agreement. Any defects in design, workmanship, or materials that do not comply with this Agreement
must be corrected by Contractor (including, but not limited to, all parts and labor) at Contractor’s sole
cost and expense. All written warranties and redlines for as-built conditions must be delivered to the
City on or before the City’s final acceptance of Contractor’s services under this Agreement.
5.44 Emergency Purchases. City reserves the rights to purchase from other sources those items,
which are required on an emergency basis and cannot be supplied immediately by the Contractor.
5.45 Non-Exclusive Agreement. This agreement is for the sole convenience of the City of Chandler.
The City reserves the right to obtain like goods or services from another source when necessary.
5.46 Performance and Payment Bonds. At the time City issues Notice of Contract Award, Contractor must
provide a Performance Bond and a Payment Bond, each in an amount equal to the full amount of the
Contract Price.
Each such bond must be executed by a surety company or companies holding a Certificate of Authority to
transact surety business in the State of Arizona, issued by the Director of the Arizona Department of
Insurance and must be named in the current list of "Companies Holding Certificates of Authority as
Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies" as published in Circular
570 (amended) by the Audit Staff Bureau of Accounts, U.S. Treasury Department. A copy of the Certificate
of Authority must accompany the bonds. The Certificate must have been issued or updated within two (2)
years prior to the execution of this Agreement. The bonds must be written or countersigned by an
authorized representative of the surety who is either a resident of the state of Arizona or whose principal
office is maintained in this state, as by law required.
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The bonds must be made payable and be acceptable to City. The bond forms for the performance and
payment bonds must be in the forms required under A.R.S. § 34-221, et. Seq., as in Appendices 4 and 5 of
these General Conditions.
Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering
payment of obligations arising under the Contract Documents, Contractor must promptly furnish a copy
of the bonds or must permit a copy to be made.
All bonds submitted for this Project must be provided by a company which has been rated AM Best rating
of A- or better for the prior four quarters by the latest edition of the ‘Results Best’s Key Rating Guide
(Property/Casualty)” published by the A.M. Best Company.
5.47 Budget Approval Into Next Fiscal Year. This Agreement will commence on the Effective Date and
continue in full force and effect until it is terminated or expires in accordance with the provisions of this
Agreement. The Parties recognize that the continuation of this Agreement after the close of the City's fiscal
year, which ends on June 30 of each year, is subject to the City Council's approval of a budget that includes
an appropriation for this item as expenditure. The City does not represent that this budget item will be
actually adopted. This determination is solely made by the City Council at the time Council adopts the
budget.
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President
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EXHIBIT A TO AGREEMENT
SCOPE OF SERVICES
HVAC Replacement Public Housing Site 1
1. PROJECT SCOPE OF WORK
Contractor will remove and replace 54 gas/electric packaged rooftop units and ducting at
130 North Hamilton Street, Chandler, AZ. 85225. The buildings are located at one of our
Public Housing apartment locations within the City of Chandler. The Contractor shall supply
all materials, equipment, labor, services, and transportation required to perform the work
in a complete and professional manner.
The Department of Housing & Urban Development (HUD) funds this project therefore the
Contractor shall comply with the HUD requirements as noted in the HUD documents
included as part of this bid packet and Federal Acquisition rules. This is a Labor Standards
Act, Davis-Bacon and Related Acts (DBRA) wage rate project. Section 3 requirements apply
to this project. Contractor must read, fill out, sign, and submit. Contractor must provide a
completed and signed copy of this form for themselves and any sub-contractor working on
this project.
2. WORK UNDER THIS CONTRACT
The work under this contract shall be performed on 54 apartments in the family site located
130 North Hamilton Street. The Contractor shall provide all materials, equipment, tools,
labor, services, transportation, and any incidental supplies required to remove and replace
the existing gas pack system and new install flex ducting as specified in this scope of work
to provide a complete working system.
This project occurs on occupied Public Housing units where the protection of the
residents and public is essential. Residents will occupy these homes during gas pack
replacement work.
3. DEMOLITION
A. Contractor shall remove from the Owner’s property and legally dispose of all
material and debris associated with this project.
B. Contractor shall make such explorations and probes as are necessary to ascertain
any required protective measures before proceeding with demolition, and
installation work.
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4. GAS/PACK REPLACEMENT
A. The Contractor shall provide and install 54 gas/electric packaged rooftop units that
have a minimum 14 SEER.
B. The contactor shall install the package units per manufacturer’s installation
instructions.
C. There shall not be any gaps between the mating surface of the elbow and heat
pump this includes the elbow splitter. Seal mating surface with approved mastic.
D. The heat pump and curb shall be level and mechanically fastened to the roof.
E. The existing disconnect shall be replaced with a new 60-amp, 120/240-volt, NON-
fuse, metallic AC disconnect. Approved disconnects are GE model number
TFN60RCP, Eaton model number DPU222RP, Square D model number TNA60R1CP
or approved alternate. Mechanically fasten disconnect to a non-removable panel
on the heat pump.
F. The existing liquid tight flexible conduit and fittings running from the electrical roof
stub to the new disconnect shall be replaced with new liquid tight flexible conduit
and fittings.
G. Install new stainless steel flexible gas lines.
H. Install new 3/4” PVC condensate lines on top of roof shingles and extended beyond
the roof edge. Secure the condensate line every five (5) feet.
I. Replace existing thermostats with Honeywell Non-Programmable thermostat.
J. The Contractor is responsible for testing the new units and verifying proper
performance in the heating and cooling modes.
K. The Contractor shall air balance the system after installation.
L. The Contractor shall repair to industry standards any removal or modification of
roofing materials.
M. Contractor will properly repair any roof openings left as a result of moving or
removing any roof mounted equipment. This will include, but not be limited to roof
curbs, condensate lines, gas lines, electrical, and penetrations.
5. DUCTING REPLACEMENT
A. The contract shall install new insulated flexible duct in all units.
B. Contractor shall size ducts providing calculations to the Project Coordinator for
each floor plan.
C. The contractor shall install flexible duct systems, including connections and joints,
in accordance with manufacturer’s installation instructions, ADC Flexible Duct
Performance and Installation Standards Chapter 4 “Installation Requirements”, and
with UL 181, Class 1 Air Duct.
D. Support flexible ducts at manufacturer’s recommended intervals, but not greater
than 5 ft., by use of hanging devices. Do not allow sag of greater than 1/2 in per
foot of spacing between supports.
E. Install flexible connectors to connect ducts to equipment.
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F. Seal penetrations and tears in vapor barrier with tape.
G. Supply ducts shall be sealed and insulated to a minimum of R-8; all other ducts
shall be sealed and insulated to a minimum of R-6.
H. Abandon existing duct removing only necessary amount for plenum connection to
flexible ducting.
I. Run new flexible duct into all rooms.
J. Remove old diffusers, drywall, texture, and paint opening.
K. New diffusers shall be supported on a minimum of two sides with 1” x 1” or larger
supports.
6. PERMITS & LICENSING
A. The City of Chandler does not require a building permit for replacement of like
HVAC equipment.
B. The awarded Contractor is responsible for any permitting and licensing required by
Federal, State, and Local agencies associated with this project.
7. WORK SCHEDULE
A. The homes are occupied therefore the work shall be scheduled to ensure that the
air conditioning unit is working at the end of the day.
B. In the event the contractor cannot provide a working heat pump unit by 4:00 PM,
the contractor will be required as part of his/her bid, to provide enough portable
heating/cooling units to provide the resident with acceptable heating/cooling until
the new unit is in service. The cost associated for temporary air conditioning will be
the Contractor’s responsibility.
C. Designated work hours for demolition and installation are between the hours of
7:00 AM to 4:00 PM Monday through Friday. The Project Coordinator must
authorize work on City Holidays and weekends.
D. Contractor must provide a construction schedule to include proposed work with
dates, proposed start and completion.
E. Contractor shall not perform work if there is a high probability for rain.
8. RESIDENT NOTIFICATION
Prior to starting any work, the selected Contractor must notify each resident, in writing, a
minimum of 48 hours in advance, prior to entering the property with either a 3-part door
hanger in both English and Spanish to be left on each door accessible from the front of the
property, or a mailed letter in both English and Spanish. If a mailed letter is used, the
Contractor must allow for sufficient transit time. The door hanger or letter will include the
following information: Reference Type Work Being Done, Notice Date, Project Address,
Project Start Date, Project Completion Date, Work Hours, Special Instructions, Name,
Address and Phone Number of Company, Contact Person, and 24 Hour Emergency Phone
Number. Provide an example of the door hanger or letter to the Project Coordinator for
approval.
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In the event that the Contractor is unable to start a previously notified unit due to rain, labor
dispute, material shortage, schedule change, lack of workers, etc.), the contractor will be
required to re-notify that resident with another 48-hour door hanger or letter.
9. CONTRACTOR QUALIFICATIONS
A. The Contractor or Subcontractor(s) must possess one of the following Arizona
Registrar of Contractors licenses: C-39, C-79, CR-39, CR-79, R-39, or R39R.
B. The Contractor must provide proof of a minimum five (5) years’ experience as an
Arizona Registrar of Contractors licensed Contractor under one of the required
licenses.
C. Contractor or Subcontractor(s) shall have a minimum of five years’ experience
removing and installing package heat pump units.
D. Contractor shall have at least one journeyman installer with a minimum of three
years’ experience installing package heat pump units performing the installation
work.
E. Proof of all the above-mentioned Contractor qualifications must be included with
the bid submittal.
10. POST AWARD SUBMITTALS
A. Before ordering any heat pumps, associated materials and equipment, the
Contractor shall submit manufactures cut sheets to the Project Coordinator for
approval for the following items:
• Package Gas/Electric Heat pump
• Heat pump Elbow
• Electrical Disconnect
• Liquid Tight Flexible Conduit
• Liquid Tight Flexible Conduit Fittings
• Stainless Steel Flexible Gas Line
• Thermostat
• Duct-seal mastic
B. Manufacturer’s warranty on package units after final acceptance.
C. Manufacturer’s installation and owner’s manuals.
D. The Contractor must be read, properly completed, signed, and return all required
HUD documentation indicated in these Contract documents
E. Certified Payroll Reports are due weekly.
F. Section 3 forms are due with each pay application.
G. Tenant notification sample letter or door hanger in English and Spanish for Project
Coordinator approval.
H. Contractor shall provide a written safety action plan for review and approval by the
City.
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11. QUALITY CONTROL
A. All products, equipment, and materials shall be new, unused, and free of material
defects.
B. Where not more specifically described in any of the contract documents,
workmanship shall conform to all of the methods and operations of best standards
and accepted practices of the trade or trades involved, and shall include all items of
fabrication, construction, or installation regularly furnished or required for
completion of the services.
C. Housing Project Coordinator shall have the authority to reject any material or
workmanship that he feels is not within code, specified type, or quality as specified
in these bid documents. The Contractor will correct or replace rejected work at no
additional expense to the City.
D. The Project Coordinator will inspect each unit, as they are finished.
12. WARRANTY:
A. Contractor will provide in writing a full warranty on installed work, agreeing to
provide the necessary labor and materials to correct any installation errors, and at
no additional cost to the City. Period of warranty is for two years, and starts upon
completion of the entire project.
B. Contractor shall register all units and supply the Project Coordinator with original
registrations.
C. Contractor will supply all materials, parts and labor, at no cost to the City to repair
units during the two year warranty period. It will be the Contractor’s responsibility
to work with the manufacturer for parts and/or reimbursements for warranty labor.
D. The Contractor shall be required to respond and repair a heat pump problem or
failure within 72 hours of notification.
13. SAFETY AND SITE PROTECTION
A. This project occurs on occupied homes where the protection of the residents and
the public is essential. The Contractor shall maintain safety at all times during the
installation.
B. The Contractor shall be responsible for all means and methods as they relate to
safety and shall comply with all applicable local, state and federal requirements.
C. The Contractor shall be responsible for providing, barricades, flagging, caution tape
and other safety and traffic control equipment required to protect its employees,
the public, surrounding areas and vehicles.
D. All work shall comply with OSHA regulations.
E. Contractor shall follow OSHA safety regulations for work occurring above 6 feet.
F. Contractor must take necessary safety precautions to prevent any work-related
safety hazards for employees, residents and the public.
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G. Contractor shall be responsible for cleaning, repairing, or replacement of any
damage to the City’s and/or resident’s property caused by the Contractor or
Subcontractor(s) during the removal or installation of the items associated with this
project.
H. The Contractor will be responsible for immediately notifying the Housing Project
Coordinator of any damage caused by the Contractor during contract activities.
I. Contractor shall perform criminal history checks on all prospective employees
performing work under this IFB and provide summaries of the results to the
Contract Administrator if requested. Prospective employees whose criminal history
check disclose a misdemeanor or felony involving public indecency or harm to
persons or property will not be employed to perform work under this IFB. Criminal
history checks will be completed at the sole expense of the Contractor.
14. CLEANUP
All work-related materials and debris will be removed from the site on a daily basis. City
dumpsters and/or resident trash containers shall not be used for disposal of any
construction related material. It is the Contractor’s responsibility to dispose of all material
in an approved and lawful method.
15. CONTRACTOR’S USE OF PREMISES
A. The Contractor shall provide his/her own power for equipment and tools.
B. While on the City’s premises, Contractor, its agents, employees, and Subcontractors shall
conform in all respects with physical, fire, or other security regulations.
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EXHIBIT B
BID FORM
130 N. Hamilton
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EXHIBIT C TO AGREEMENT
INSURANCE
INSURANCE
General.
A.
At the same time as execution of this Agreement, the Contractor shall furnish the City a
certificate of insurance on a standard insurance industry ACORD form. The ACORD form
must be issued by an insurance company authorized to transact business in the State of
Arizona possessing a current A.M. Best, Inc. rating of A-7, or better and legally authorized to
do business in the State of Arizona with policies and forms satisfactory to City. Provided,
however, the A.M. Best rating requirement shall not be deemed to apply to required Workers’
Compensation coverage.
B.
The Contractor and any of its subcontractors shall procure and maintain, until all of their
obligations have been discharged, including any warranty periods under this Agreement are
satisfied, the insurances set forth below.
C.
The insurance requirements set forth below are minimum requirements for this Agreement
and in no way limit the indemnity covenants contained in this Agreement.
D.
The City in no way warrants that the minimum insurance limits contained in this Agreement
are sufficient to protect Contractor from liabilities that might arise out of the performance
of the Agreement services under this Agreement by Contractor, its agents, representatives,
employees, subcontractors, and the Contractor is free to purchase any additional insurance
as may be determined necessary.
E.
Failure to demand evidence of full compliance with the insurance requirements in this
Agreement or failure to identify any insurance deficiency will not relieve the Contractor from,
nor will it be considered a waiver of its obligation to maintain the required insurance at all
times during the performance of this Agreement.
F.
Use of Subcontractors: If any work is subcontracted in any way, the Contractor shall execute
a written contract with Subcontractor containing the same Indemnification Clause and
Insurance Requirements as the City requires of the Contractor in this Agreement. The
Contractor is responsible for executing the Agreement with the Subcontractor and obtaining
Certificates of Insurance and verifying the insurance requirements.
Minimum Scope and Limits of Insurance. The Contractor shall provide coverage with limits of liability not
less than those stated below.
A.
Commercial General Liability-Occurrence Form. Contractor must maintain “occurrence” form
Commercial General Liability insurance with a limit of not less than $2,000,000 for each
occurrence, $4,000,000 aggregate. Said insurance must also include coverage for products
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and completed operations, independent contractors, personal injury and advertising injury.
If any Excess insurance is utilized to fulfill the requirements of this paragraph, the Excess
insurance must be “follow form” equal or broader in coverage scope than underlying
insurance.
B.
Automobile Liability-Any Auto or Owned, Hired and Non-Owned Vehicles
Vehicle Liability: Contractor must maintain Business/Automobile Liability insurance with a
limit of $1,000,000 each accident on Contractor owned, hired, and non-owned vehicles
assigned to or used in the performance of the Contractor’s work or services under this
Agreement. If any Excess or Umbrella insurance is utilized to fulfill the requirements of this
paragraph, the Excess or Umbrella insurance must be “follow form” equal or broader in
coverage scope than underlying insurance.
C.
Workers Compensation and Employers Liability Insurance: Contractor must maintain Workers
Compensation insurance to cover obligations imposed by federal and state statutes having
jurisdiction of Contractor employees engaged in the performance of work or services under
this Agreement and must also maintain Employers’ Liability insurance of not less than
$1,000,000 for each accident and $1,000,000 disease for each employee.
D.
Builders’ Risk/Installation Floater Insurance. The Contractor bears all responsibility for loss to
all equipment or Work under construction. Unless waived in writing by the City the
Contractor will purchase and maintain in force Builders’ Risk/Installation Floater insurance
on the entire Work until completed and accepted by the City. This insurance will be Special
Causes of Loss policy form, (minimally including perils of fire, flood, lightning, explosion,
windstorm and hail, smoke, aircraft and vehicles, riot and civil commotion, theft, vandalism,
malicious mischief, and collapse), completed value, replacement cost policy form equal to
the contract price and all subsequent modifications. The Contractor’s Builders’
Risk/Installation Floater insurance must be primary and not contributory.
1. Builders’ Risk/Installation Floater insurance must cover the entire Work including
reasonable compensation for architects and Contractors’ services and expenses and
other “soft costs” made necessary by an insured loss. Builders’ Risk/Installation Floater
insurance must provide coverage from the time any covered property comes under the
Contractor’s control and or responsibility, and continue without interruption during
course of construction, renovation and or installation, including any time during which
any project property or equipment is in transit, off site, or while on site for future use or
installation. Insured property must include, but not be limited to, scaffolding, false work,
and temporary buildings at the site. This insurance must also cover the cost of removing
debris, including demolition as may be legally required by operation of any law,
ordinance, regulation or code.
2. The Contractor must also purchase and maintain Boiler and Machinery insurance with
the same requirements as Builders’ Risk/Installation Floater insurance cited above if the
Work to be performed involves any exposures or insurable property normally covered
under a Boiler and Machinery insurance policy or made necessary as required by law or
testing requirements in the performance of this Contract/Agreement. The Contractor will
be responsible for any and all deductibles under these policies and the Contractor waives
all rights of recovery and subrogation against the City under the Contractor’s Builders’
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Risk/Installation Floater insurance described herein.
3. Builders’ Risk/Installation Floater Insurance must be maintained until whichever of the
following first occurs: (i) final payment has been made; or, (ii) until no person or entity,
other than the City, has an insurable interest in the property required to be covered.
a. The Builders’ Risk/Installation Floater insurance must be endorsed so that the
insurance will not be canceled or lapse because of any partial use or occupancy by
the City.
b. The Builders Risk/Installation Floater insurance must include as named insureds, the
City, the Contractor, and all tiers of subcontractors and others with an insurable
interest in the Work who will be named as additional insureds unless they are able to
provide the same level of coverage with the City and Contractor named as additional
insureds. Certificates must contain a provision that the insurance will not be canceled
or materially altered without at least 30 days advance notice to the City. The City must
also be named as a Loss Payee under the Builders’ Risk/Installation Floater coverage.
c. The Builders Risk/Installation Floater insurance must be written using the Special
Causes of Loss policy form, replacement cost basis.
d. All rights of subrogation under the Builders Risk/Installation Floater insurance are, by
this Contract/Agreement, waived against the City, its officers, officials, agents and
employees.
e. The Contractor is responsible for payment of all deductibles under the Builders’
Risk/Installation Floater insurance policy.
Additional Policy Provisions Required.
A.
Self-Insured Retentions or Deductibles. Any self-insured retentions and deductibles must be
declared and approved by the City. If not approved, the City may require that the insurer
reduce or eliminate any deductible or self-insured retentions with respect to the City, its
officers, officials, agents, employees, and volunteers.
1. The Contractor’s insurance must contain broad form contractual liability coverage.
2. The Contractor's insurance coverage must be primary insurance with respect to the City,
its officers, officials, agents, and employees. Any insurance or self-insurance maintained
by the City, its officers, officials, agents, and employees shall be in excess of the coverage
provided by the Contractor and must not contribute to it.
3. The Contractor's insurance must apply separately to each insured against whom claim is
made or suit is brought, except with respect to the limits of the insurer's liability.
4. Coverage provided by the Contractor must not be limited to the liability assumed under
the indemnification provisions of this Agreement.
5. The policies must contain a severability of interest clause and waiver of subrogation
against the City, its officers, officials, agents, and employees, for losses arising from Work
performed by the Contractor for the City.
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6. The Contractor, its successors and or assigns, are required to maintain Commercial
General Liability insurance as specified in this Agreement for a minimum period of three
years following completion and acceptance of the Work. The Contractor must submit a
Certificate of Insurance evidencing Commercial General Liability insurance during this
three year period containing all the Agreement insurance requirements, including
naming the City of Chandler, its agents, representatives, officers, directors, officials and
employees as Additional Insured as required.
7. If a Certificate of Insurance is submitted as verification of coverage, the City will
reasonably rely upon the Certificate of Insurance as evidence of coverage but this
acceptance and reliance will not waive or alter in any way the insurance requirements or
obligations of this Agreement.
B.
Insurance Cancellation During Term of Contract/Agreement.
1. If any of the required policies expire during the life of this Contract/Agreement, the
Contractor must forward renewal or replacement Certificates to the City within ten days
after the renewal date containing all the required insurance provisions.
2. Each insurance policy required by the insurance provisions of this Contract/Agreement
shall provide the required coverage and shall not be suspended, voided or canceled
except after 30 days prior written notice has been given to the City, except when
cancellation is for non-payment of premium, then ten days prior notice may be given.
Such notice shall be sent directly to Chandler Law-Risk Management Department, Post
Office Box 4008, Mailstop 628, Chandler, Arizona 85225. If any insurance company
refuses to provide the required notice, the Contractor or its insurance broker shall notify
the City of any cancellation, suspension, non-renewal of any insurance within seven days
of receipt of insurers’ notification to that effect.
C.
City as Additional Insured. The policies are to contain, or be endorsed to contain, the following
provisions:
1. The Commercial General Liability and Automobile Liability policies are to contain, or be
endorsed to contain, the following provisions: The City, its officers, officials, agents, and
employees are additional insureds with respect to liability arising out of activities
performed by, or on behalf of, the Contractor including the City's general supervision of
the Contractor; Products and Completed operations of the Contractor; and automobiles
owned, leased, hired, or borrowed by the Contractor.
2. The City, its officers, officials, agents, and employees must be additional insureds to the
full limits of liability purchased by the Contractor even if those limits of liability are in
excess of those required by this Agreement.
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EXHIBIT D TO AGREEMENT
SPECIAL CONDITIONS
ACCESS TO SECURED FACILITIES
Contract Worker Access Controls, Badge and Key Access Requirements. A Contract Worker shall not be
allowed to begin work in any City facility without: (A) The prior completion and the City's acceptance of the
required background screening; and (B) when required, the Contract Worker's receipt of a City issued
badge. A badge will be issued to a Contract Worker solely for access to the City facility(s) to which the
Contract Worker is assigned. Each Contract Worker who enters a City facility must use the badge issued to
the Contract Worker. Any and all fees associated with security badging will be assessed in compliance with
Chandler City Code §4-22.
Key Access Procedures. If the Contract Worker's services require keyed access to enter a City facility(s), a
separate key issue/return form must be completed and submitted by Contractor for each key issued.
Stolen or Lost Badges or Keys. Contractor shall report lost or stolen badges or keys to the City immediately.
A new badge application or key issue form shall be completed and submitted along with payment of the
applicable fees prior to issuance of a new badge or key.
Return of Badges or Keys. All badges and keys are the property of the City and must be returned to the City
within one business day of when the Contract Worker's access to a City facility is no longer required to
furnish the services under this Agreement. Contractor shall collect a Contract Worker's badge and key(s)
upon the termination of the Contract Worker's employment; when the Contract Worker's services are no
longer required at the particular City facility(s); or upon termination, cancellation or expiration of this
Agreement.
Contractor's default under this Section shall include, but is not limited to the following: (1) Contract Worker
gains access to a City facility(s) without the proper badge or key; (2) Contract Worker uses a badge or key
of another to gain access to a City facility; (3) Contract Worker commences services under this Agreement
without the proper badge, key or Background Screening; (4) Contract Worker or Contractor submits false
information or negligently submits wrong information to the City to obtain a badge, key or applicable
Background Screening; or (5) Contractor fails to collect and timely return Contract Worker's badge or key
upon termination of Contract Worker's employment, reassignment of Contract Worker to another City
facility or upon the expiration, cancellation or termination of this Agreement. Contractor acknowledges
and agrees that the access control, badge and key requirements in this Section are necessary to preserve
and protect public health, safety and welfare. Accordingly, Contractor agrees to properly cure any default
under this Section within three business days from the date notice of default is sent by the City. The parties
agree that Contractor's failure to properly cure any default under this Section shall constitute a breach of
this Section. In addition to any other remedy available to the City at law or in equity, Contractor shall be
liable for and shall pay to the City the sum of $1,000.00 for each breach by Contractor of this Section. The
parties further agree that the sum fixed above is reasonable and approximates the actual or anticipated
loss to the City at the time and making of this Agreement in the event that Contractor breaches this Section.
Further, the parties expressly acknowledge and agree to the fixed sum set forth above because of the
difficulty of proving the City's actual damages in the event that Contractor breaches this Section. The parties
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further agree that three breaches by Contractor of this Section arising out of any default within a
consecutive period of three months or three breaches by Contractor of this Section arising out of the same
default within a period of 12 consecutive months shall constitute a material breach of this Agreement by
Contractor and the City expressly reserves all of its rights, remedies and interests under this Agreement,
at law and in equity including, but not limited to, termination of this Agreement.
Contractor and Subcontractor Worker Background Screening. Contractor agrees that all contract
workers and subcontractors (collectively "Contract Worker(s)") that Contractor furnishes to City under
this Agreement will be subject to background and security checks and screening as set forth in this
Section (collectively "Background Screening") at Contractor’s sole cost and expense. As part of the
Background Screening, Contractor must provide to a person designated by the City the name(s),
address(es), and phone number(s) of all Contract Workers who will provide any services under this
Agreement. All Contract Workers must comply with these Background Screening requirements. All
Contract Workers must be able to provide proof of the legal right to work in the United States. The
Background Screening provided by Contractor must comply with all applicable laws, rules, and
regulations. Contractor further agrees that the Background Screening required in this Section is
necessary to preserve and protect public health, safety, and welfare. The Background Screening
requirements set forth in this Section are the minimum requirements for this Agreement. City in no
way warrants that these minimum requirements are sufficient to protect Contractor from any
liabilities that may arise out of Contractor’s services under this Agreement or Contractor’s failure to
comply with this Section. Therefore, in addition to the specific measures set forth below, Contractor
and its Contract Workers must take such other reasonable, prudent, and necessary measures to
further preserve and protect public health, safety, and welfare when providing services under this
Agreement.
Background Screening Requirements and Criteria. Before offering or scheduling any services under
this Agreement, Contractor agrees that all Contract Workers, including the Contractor, if the
Contractor is an individual or sole proprietorship, must have successfully passed a Background
Screening in accordance with this Section. Contractor warrants that no person will be permitted to
substitute for a Contract Worker who has satisfied the Background Screening requirements until the
proposed substitute has also satisfied the Background Screening requirements in this Section. For
review and approval, Contractor must submit to a person designated by the City proof of a completed
Background Screening for each Contract Worker over the age of 18 performing services under this
Agreement no fewer than two (2) weeks before the proposed start date of such Contract Worker’s
services. The Background Screening must have been completed within the 12-month period
preceding the Contract Worker’s start date under this Agreement and must include the results of a
national criminal database check with source verification, and a sex offender database search.
Additional City Rights Regarding Security Inquiries. In addition to the foregoing, City reserves the rights
but not the obligations to: (1) have a Contract Worker be required to provide fingerprints and execute
such other documentation as may be necessary to obtain criminal justice information pursuant to
A.R.S. § 41-1750(G)(4); (2) act on newly acquired information whether or not such information should
have been previously discovered; (3) unilaterally change its standards and criteria relative to the
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acceptability of Contract Workers; and (4) object, at any time and for any reason, to a Contract Worker
performing work (including supervision and oversight) under this Agreement.
Contractor Certification. By executing this Agreement, Contractor certifies that Contractor has read
and understands the Background Screening requirements and criteria in this Section and will fully
comply with such requirements. Contractor further certifies that any Background Screening
information to be furnished to City related to Contractor or its Contract Workers will be complete,
current, and accurate. A Contract Worker rejected for work under this Agreement will not be proposed
to perform work under other City contracts or engagements without City's prior written approval.
Terms of This Section Applicable to all of Contractor’s Contracts and Subcontracts. Contractor must
include the terms of this Section for Contract Worker Background Screening in all contracts and
subcontracts for services furnished under this Agreement including, but not limited to, supervision
and oversight services.
Materiality of Background Screening Requirements: Indemnity. The Background Screening
requirements of this Section are material to City's entry into this Agreement and any breach of this
Section by Contractor will be deemed a material breach of this Agreement. In addition to the
indemnity provisions set forth in this Agreement, Contractor must defend, indemnify, and hold
harmless City for any and all Claims arising out of this Background Screening Section including, but
not limited to, the disqualification of a Contract Worker by Contractor or City for failure to satisfy this
Section.
Continuing Duty, Audit. Contractor’s obligations and requirements that Contract Workers satisfy this
Background Screening Section will continue throughout the entire term of this Agreement. Contractor
must notify City immediately of any change to a Background Screening of a Contract Worker
previously accepted by City. Contractor must maintain all records and documents related to all
Background Screenings and City reserves the right to audit Contractor’s compliance with this Section
under the terms of this
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EXHIBIT E
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EXHIBIT F
"General Decision Number: AZ20210001 09/10/2021
Superseded General Decision Number: AZ20200001
State: Arizona
Construction Type: Residential
County: Maricopa County in Arizona.
RESIDENTIAL CONSTRUCTION PROJECTS (consisting of single family
homes and apartments up to and including 4 stories).
Note: Under Executive Order (EO) 13658, an hourly minimum wage
of $10.95 for calendar year 2021 applies to all contracts
subject to the Davis-Bacon Act for which the contract is
awarded (and any solicitation was issued) on or after January
1, 2015. If this contract is covered by the EO, the contractor
must pay all workers in any classification listed on this wage
determination at least $10.95 per hour (or the applicable wage
rate listed on this wage determination, if it is higher) for
all hours spent performing on the contract in calendar year
2021. If this contract is covered by the EO and a
classification considered necessary for performance of work on
the contract does not appear on this wage determination, the
contractor must pay workers in that classification at least the
wage rate determined through the conformance process set forth
in 29 CFR 5.5(a)(1)(ii) (or the EO minimum wage rate,if it is
higher than the conformed wage rate). The EO minimum wage rate
will be adjusted annually. Please note that this EO applies to
the above-mentioned types of contracts entered into by the
federal government that are subject to the Davis-Bacon Act
itself, but it does not apply to contracts subject only to the
Davis-Bacon Related Acts, including those set forth at 29 CFR
5.1(a)(2)-(60). Additional information on contractor
requirements and worker protections under the EO is available
at www.dol.gov/whd/govcontracts.
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Modification Number Publication Date
0 01/01/2021
1 07/23/2021
2 09/03/2021
3 09/10/2021
* BRAZ0003-007 07/01/2021
Rates Fringes
BRICKLAYER.......................$ 31.68 8.90
ZONE PAY:
(Radius miles from the intersection of Central Ave. and
Washington St., Phoenix, AZ)
Zone A: 0-60 miles- Base Rate
Zone B: 61-75 miles- Base Rate plus $2.00 per hour
Zone C: 75-100 miles- Base Rate plus $3.00 per hour
Zone D: 101-200 miles- Base Rate plus $3.50 per hour
Zone E: Over 200 miles- Base Rate plus $6.50 per hour
----------------------------------------------------------------
ENGI0428-005 06/01/2021
Rates Fringes
POWER EQUIPMENT OPERATOR
(Grader/Blade)...................$ 32.94 12.12
----------------------------------------------------------------
IRON0075-008 04/01/2021
Rates Fringes
IRONWORKER, STRUCTURAL...........$ 28.00 17.66
----------------------------------------------------------------
PLAS0394-006 07/01/2019
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Rates Fringes
CEMENT MASON/CONCRETE FINISHER...$ 25.08 8.57
----------------------------------------------------------------
SUAZ2011-001 07/28/2011
Rates Fringes
ALARM INSTALLER, Includes
Wiring and Installation..........$ 13.91 0.00
CARPENTER, Excludes Drywall
Hanging, and Form Work...........$ 18.16 0.00
DRYWALL HANGER...................$ 15.00 0.58
ELECTRICIAN, Excludes Low
Voltage Wiring and
Installation of Alarms...........$ 15.45 0.01
FORM WORKER......................$ 14.37 0.00
GLAZIER..........................$ 13.45 0.00
HVAC MECHANIC (Installation
of HVAC Duct)....................$ 15.36 0.00
LABORER: Common or General......$ 10.18 0.00
LABORER: Grade Checker..........$ 16.83 0.45
LABORER: Mason Tender - Brick...$ 12.77 0.00
LABORER: Mason Tender -
Cement/Concrete/Stone............$ 11.00 0.00
LABORER: Pipelayer..............$ 13.00 0.00
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OPERATOR: Backhoe...............$ 18.29 0.00
OPERATOR: Excavator.............$ 24.67 0.00
OPERATOR: Forklift..............$ 16.17 0.00
OPERATOR: Loader (Front End)....$ 15.00 0.00
OPERATOR: Paver (Asphalt,
Aggregate, and Concrete).........$ 20.75 0.00
OPERATOR: Roller................$ 16.24 1.42
OPERATOR: Scraper...............$ 19.20 1.52
OPERATOR: Tractor...............$ 22.63 0.00
PAINTER: Brush, Roller and
Spray, Excludes Drywall
Finishing/Taping.................$ 12.89 0.00
PLUMBER..........................$ 20.14 4.08
ROOFER...........................$ 13.67 0.00
SPRINKLER FITTER (Fire
Sprinklers)......................$ 17.73 0.00
TRUCK DRIVER: Dump Truck........$ 17.02 0.00
TRUCK DRIVER: Water Truck.......$ 14.50 0.00
----------------------------------------------------------------
WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
================================================================
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Note: Executive Order (EO) 13706, Establishing Paid Sick Leave
for Federal Contractors applies to all contracts subject to the
Davis-Bacon Act for which the contract is awarded (and any
solicitation was issued) on or after January 1, 2017. If this
contract is covered by the EO, the contractor must provide
employees with 1 hour of paid sick leave for every 30 hours
they work, up to 56 hours of paid sick leave each year.
Employees must be permitted to use paid sick leave for their
own illness, injury or other health-related needs, including
preventive care; to assist a family member (or person who is
like family to the employee) who is ill, injured, or has other
health-related needs, including preventive care; or for reasons
resulting from, or to assist a family member (or person who is
like family to the employee) who is a victim of, domestic
violence, sexual assault, or stalking. Additional information
on contractor requirements and worker protections under the EO
is available at www.dol.gov/whd/govcontracts.
Unlisted classifications needed for work not included within
the scope of the classifications listed may be added after
award only as provided in the labor standards contract clauses
(29CFR 5.5 (a) (1) (ii)).
----------------------------------------------------------------
The body of each wage determination lists the classification
and wage rates that have been found to be prevailing for the
cited type(s) of construction in the area covered by the wage
determination. The classifications are listed in alphabetical
order of ""identifiers"" that indicate whether the particular
rate is a union rate (current union negotiated rate for local),
a survey rate (weighted average rate) or a union average rate
(weighted union average rate).
Union Rate Identifiers
A four letter classification abbreviation identifier enclosed
in dotted lines beginning with characters other than ""SU"" or
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""UAVG"" denotes that the union classification and rate were
prevailing for that classification in the survey. Example:
PLUM0198-005 07/01/2014. PLUM is an abbreviation identifier of
the union which prevailed in the survey for this
classification, which in this example would be Plumbers. 0198
indicates the local union number or district council number
where applicable, i.e., Plumbers Local 0198. The next number,
005 in the example, is an internal number used in processing
the wage determination. 07/01/2014 is the effective date of the
most current negotiated rate, which in this example is July 1,
2014.
Union prevailing wage rates are updated to reflect all rate
changes in the collective bargaining agreement (CBA) governing
this classification and rate.
Survey Rate Identifiers
Classifications listed under the ""SU"" identifier indicate that
no one rate prevailed for this classification in the survey and
the published rate is derived by computing a weighted average
rate based on all the rates reported in the survey for that
classification. As this weighted average rate includes all
rates reported in the survey, it may include both union and
non-union rates. Example: SULA2012-007 5/13/2014. SU indicates
the rates are survey rates based on a weighted average
calculation of rates and are not majority rates. LA indicates
the State of Louisiana. 2012 is the year of survey on which
these classifications and rates are based. The next number, 007
in the example, is an internal number used in producing the
wage determination. 5/13/2014 indicates the survey completion
date for the classifications and rates under that identifier.
Survey wage rates are not updated and remain in effect until a
new survey is conducted.
Union Average Rate Identifiers
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Classification(s) listed under the UAVG identifier indicate
that no single majority rate prevailed for those
classifications; however, 100% of the data reported for the
classifications was union data. EXAMPLE: UAVG-OH-0010
08/29/2014. UAVG indicates that the rate is a weighted union
average rate. OH indicates the state. The next number, 0010 in
the example, is an internal number used in producing the wage
determination. 08/29/2014 indicates the survey completion date
for the classifications and rates under that identifier.
A UAVG rate will be updated once a year, usually in January of
each year, to reflect a weighted average of the current
negotiated/CBA rate of the union locals from which the rate is
based.
----------------------------------------------------------------
WAGE DETERMINATION APPEALS PROCESS
1.) Has there been an initial decision in the matter? This can
be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on
a wage determination matter
* a conformance (additional classification and rate) ruling
On survey related matters, initial contact, including requests
for summaries of surveys, should be with the Wage and Hour
Regional Office for the area in which the survey was conducted
because those Regional Offices have responsibility for the
Davis-Bacon survey program. If the response from this initial
contact is not satisfactory, then the process described in 2.)
and 3.) should be followed.
With regard to any other matter not yet ripe for the formal
process described here, initial contact should be with the
Branch of Construction Wage Determinations. Write to:
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Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
2.) If the answer to the question in 1.) is yes, then an
interested party (those affected by the action) can request
review and reconsideration from the Wage and Hour Administrator
(See 29 CFR Part 1.8 and 29 CFR Part 7). Write to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
The request should be accompanied by a full statement of the
interested party's position and by any information (wage
payment data, project description, area practice material,
etc.) that the requestor considers relevant to the issue.
3.) If the decision of the Administrator is not favorable, an
interested party may appeal directly to the Administrative
Review Board (formerly the Wage Appeals Board). Write to:
Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
4.) All decisions by the Administrative Review Board are final.
================================================================
END OF GENERAL DECISION"
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EXHIBIT G
HUD FORM INSTRUCTIONS
(These forms, where applicable, must be read, completed, signed, and submitted by the
Selected Bidder)
FORM HUD-51915-A (Contract Provisions Required by Federal Law or Owner Contract
with HUD.)
FORM HUD-4010 Federal Labor Standard Provisions Contractor will read, and follow
these provisions.
FORM HUD-5369 Instructions to Bidders for Contracts / Public & Indian Housing
Programs Contractor will read and be familiar for Public Housing Contracts.
FORM HUD-5369-A Representations, Certifications, and Other Statements of Bidders)
Contractor will read, check applicable boxes, sign, date, and submit.
FORM 5370 General Conditions for Construction Contracts – Public Housing (Contract
Greater Than $100,000) Contractor must read, and follow these provisions.
SECTION 3 REQUIREMENTS
Contractor must read, fill out, sign, and submit. Contractor must provide a completed and
signed copy of this form for themselves and any sub-contractor working on this project.
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U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
OMB Approval No. 2577-0157 (exp. 3/31/2020)
Contract Provisions Required by Federal Law
or Owner Contract with the
U.S. Department of Housing and Urban Development
Previous editions are obsolete
form HUD-51915-A (1/2014)
EXHIBIT H
Page 44 of 106
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Contract Provisions Required by
Federal Law or Owner Contract
U. S. Department of Housing
OMB Approval No. 2577-0157
(exp. 3/31/2020)
and Urban Development
Office of Public and Indian Housing
with the U.S. Department of
Housing and Urban Development
Public reporting burden for this collection of information is estimated to average 3 hours per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct or
sponsor, and a person is not required to respond to, a collection of information unless that collecton displays a valid OMB control number.
These contracts between a HUD grantee (housing agency (HA)) and an architect/engineer (A/E) for design and construction services do not require either party
to submit any materials to HUD. The forms provide a contractual agreement for the services to be provided by the A/E and establishes responsibilities of both
parties pursuant to the contract. The regulatory authority is 24 CFR 85.36. These contractual agreements are required by Federal law or regulation pursuant to
24 CFR Part 85.36. Signing of the contracts is required to obtain or retain benefits. The contracts do not lend themselves to confidentiality.
1.0 Contract Provisions Required by Federal Law or Owner Contract
with the U.S. Department of Housing and Urban Development (HUD).
1.7
Conflicts of Interest. Based in part on federal regulations
(24 CFR 85.36(b)) and Contract agreement between the Owner
and HUD, no employee, officer, or agent of the Owner (HUD
grantee) shall participate in selection, or in the award or admin-
istration of a contract supported by Federal funds if a conflict of
interest, real or apparent, would be involved.
1.1
Contract Adjustments. Notwithstanding any other term or
condition of this Agreement, any settlement or equitable adjust-ment
due to termination, suspension or delays by the Owner shall be
negotiated based on the cost principles stated at 48 CFR Subpart 31.2
and conform to the Contract pricing provisions of 24 CFR 85.36 (f).
Such a conflict would arise when:
(i) The employee, officer or agent,
1.2 Additional Services. The Owner shall perform a cost or price
analysis as required by 24 CFR 85.36 (F) prior to the issuance of
a contract modification/amendment for Additional Services. Such
Additional Services shall be within the general scope of services
covered by this Agreement. The Design Profes-sional shall
provide supporting cost information in sufficient detail to permit
the Owner to perform the required cost or price analysis.
(ii) Any member of his or her immediate family,
(iii) His or her partner, or
1.3
Restrictive Drawings and Specifications. In accordance with
24 CFR 85.36(c)(3)(i) and contract agreements between the Owner
and HUD, the Design Professional shall not require the use of
materials, products, or services that unduly restrict competition.
(iv) An organization that employs, or is about to employ, any
of the above, has a financial or other interest in the firm selected for
award. The grantee’s or subgrantee’s officers, employees or agents
will neither solicit nor accept gratuities, favors or anything of
monetary value from Contractors, or parties to sub-agreements.
Grantees and subgrantees may set minimum rules where the financial
interest is not substantial or the gift is an unsolicited item of nominal
intrinsic value. To the extent permit-ted by State or local law or
regulations, such standards or conduct will provide for penalties,
sanctions, or other disciplinary actions for violations of such
standards by the grantee’s and subgrantee’s officers, employees, or
agents or by Contractors or their agents. The awarding agency may
in regulation provide additional prohi-bitions relative to real,
apparent, or potential conflicts of interest.
1.4 Design Certification. Where the Owner is required by federal
regulations to provide HUD a Design Professional certi-fication
regarding the design of the Projects (24 CFR 968.235), the Design
Professional shall provide such a certification to the Owner.
1.5
Retention and Inspection of Records. Pursuant to 24 CFR
85.26(i)(10) and (11), access shall be given by the Design Profes-
sional to the Owner, HUD, the Comptroller General of the United
States, or any of their duly authorized representatives, to any books,
documents, papers, and records of the Design Professional which
are directly pertinent to that specific Contract for the purpose of
making an audit, examination, excerpts, and transcrip-tions. All
required records shall be retained for three years after the Owner or
Design Professional and other subgrantees make final payments and
all other pending matters are closed.
Neither the Owner nor any of its contractors or their subcontractors
shall enter into any Contract, subcontract, or agreement, in connec-tion
with any Project or any property included or planned to be included in
any Project, in which any member, officer, or employee of the Owner,
or any member of the governing body of the locality in which the
Project is situated, or any member of the governing body of the locality
in which the Owner was activated, or in any other public official of such
locality or localities who exercises any responsibilities or functions
with respect to the Project during his/her tenure or for one year
thereafter has any interest, direct or indirect. If any such present or
former member, officer, or employee of the Owner, or any such
governing body member or such other public official of such locality
or localities involuntarily acquires or had acquired prior to the
beginning of his/her tenure any such interest, and if such interest is
immediately disclosed to the Owner and such disclosure is entered
upon the minutes of the Owner, the Owner, with the prior approval of
the Government, may waive the prohibition contained in this
subsection: Provided, That any such present member, officer, or
employee of the Owner shall not participate in any action by the Owner
relating to such contract, subcontract, or
1.6 Copyrights and Rights in Data. HUD has no regulations
pertaining to copyrights or rights in data as provided in 24 CFR
85.36. HUD requirements, Article 45 of the General Conditions
to the Contract for Construction (form HUD-5370) requires that
contractors pay all royalties and license fees. All drawings and
specifications prepared by the Design Professional pursuant to
this contract will identify any applicable patents to enable the
general contractor to fulfil the requirements of the construction
contract.
arrangement.
Previous editions are obsolete
Page 1 of 3
form HUD-51915-A (1/2014)
Page 45 of 106
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No member, officer, or employee of the Owner, no member of the
governing body of the locality in which the project is situated, no
member of the governing body of the locality in which the Owner
was activated, and no other public official of such locality or
localities who exercises any functions or responsibilities with respect
to the project, during his/her tenure or for one year thereafter, shall
have any interest, direct or indirect, in this contract or the proceeds
thereof.
B. The parties to this contract agree to comply with HUD’s
regulations in 24 CFR part 135, which implement section 3. As
evidenced by their execution of this contract, the parties to this
contract certify that they are under no contractual or other im-
pediment that would prevent them from complying with the part 135
regulations.
1.8 Disputes. In part because of HUD regulations (24 CFR
85.36(i)(1)), this Design Professional Agreement, unless it is a small
purchase contract, has administrative, contractual, or legal remedies
for instances where the Design Professional violates or breaches
Agreement terms, and provide for such sanctions and penalties as
may be appropriate.
C. The contractor agrees to send to each labor organization or
representative of workers with which the contractor has a collec-tive
bargaining agreement or other understanding, if any, a notice
advising the labor organization or workers’ representative of the
contractor’s commitments under this section 3 clause, and will
1.9
Termination. In part because of HUD regulations (24 CFR
85.36(i)(2)), this Design Professional Agreement, unless it is for an
amount of $10,000 or less, has requirements regarding termi-nation
by the Owner when for cause or convenience. These include the
manner by which the termination will be effected and basis for
settlement.
post copies of the notice in conspicuous places at the work site
where both employees and applicants for training and employ-
ment positions can see the notice. The notice shall describe the
section 3 preference, shall set forth minimum number and job titles
subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location
of the person(s) taking applications for each of the positions; and
the anticipated date the work shall begin.
1.10 Interest of Members of Congress. Because of Contract
agreement between the Owner and HUD, no member of or delegate
to the Congress of the United States of America or Resident
Commissioner shall be admitted to any share or part of this Contract
or to any benefit to arise from it.
D. The contractor agrees to include this section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR part
135, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this section 3 clause,
upon a finding that the subcontractor is in violation of the regulations
in 24 CFR part 135. The contractor will not subcon-tract with any
subcontractor where the contractor has notice or knowledge that the
subcontractor has been found in violation of the regulations in 24
CFR part 135.
1.11 Limitation of Payments to Influence Certain Federal Trans-
action. The Limitation on Use of Appropriated Funds to Influ-ence
Certain Federal Contracting and Financial Transactions Act,
Section 1352 of Title 31 U.S.C., provides in part that no appropri-
ated funds may be expended by recipient of a federal contract,
grant, loan, or cooperative agreement to pay any person, includ-
ing the Design Professional, for influencing or attempting to
influence an officer or employee of Congress in connection with
any of the following covered Federal actions: the awarding of any
federal contract, the making of any Federal grant, the making of
any federal loan, the entering into of any cooperative agreement,
and the extension, continuation, renewal, amendment, or modifi-
cation of any federal contract, grant, loan, or cooperative agree-
ment.
E. The contractor will certify that any vacant employment
positions, including training positions, that are filled (1) after the
contractor is selected but before the contract is executed, and (2)
with persons other than those to whom the regulations of 24 CFR
part 135 require employment opportunities to be directed, were
not filled to circumvent the contractor’s obligations under 24 CFR
part 135.
F. Noncompliance with HUD’s regulations in 24 CFR part 135 may
result in sanctions, termination of this contract for default, and
debarment or suspension from future HUD assisted contracts.
G. Reserved.
1.12 Employment, Training, and Contracting Opportunities for Low-
Income Persons, Section 3 of the Housing and Urban Devel-
H. Reserved.
opment Act of 1968.
1.13 Reserved.
A. The work to be performed under this contract is subject to the
requirements of section 3 of the Housing and Urban Development
Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose
of section 3 is to ensure that employment and other economic
opportunities generated by HUD assistance or HUD-assisted
projects covered by section 3, shall, to the greatest extent feasible,
be directed to low- and very low-income persons, par-ticularly
persons who are recipients of HUD assistance for hous-ing.
1.14 Clean Air and Water. (Applicable to contracts in excess of
$100,000). Because of 24 CFR 85.36(i)(12) and federal law, the
Design Professional shall comply with applicable standards,
orders, or requirements issued under section 306 of the Clean Air
Act (42 U.S.C. § 1857h-4 transferred to 42 USC § 7607, section
508 of the Clean Water Act (33 U.S.C. § 1368), Executive Order
11738, and Environmental Protection Agency regulations (40 CFR
part 15), on all contracts, subcontracts, and subgrants of amounts
in excess of $100,000.
Previous editions are obsolete
Page 2 of 3
form HUD-51915-A (1/2014)
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1.15 Energy Efficiency. Pursuant to Federal regulations (24 C.F.R
85.36(i)(13)) and Federal law, except when working on an Indian
housing authority Project on an Indian reservation, the Design
Professional shall comply with the mandatory standards and policies
relating to energy efficiency which are contained in the state energy
conservation plan issued in compliance with the Energy Policy and
Conservation Act (Pub. L. 94-163 codified at 42 U.S.C.A. § 6321 et.
seq.).
1.17 Non-applicability of Fair Housing Requirements in Indian
Housing Authority Contracts. Pursuant to 24 CFR section 905.115(b)
title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4),
which prohibits discrimination on the basis of race, color or national
origin in federally assisted programs, and the Fair Housing Act (42
U.S.C. 3601-3620), which prohibits discrimination based on race,
color, religion, sex , national origin, handicap, or familial status in
the sale or rental of housing do not apply to Indian Housing
Authorities established by exercise of a Tribe’s powers of self-
government.
1.16 Prevailing Wages. In accordance with Section 12 of the U.S.
Housing Act of 1937 (42 U.S.C. 1437j) the Design Professional shall
pay not less than the wages prevailing in the locality, as determined
by or adopted (subsequent to a determination under applicable State
or local law) by the Secretary of HUD, to all architects, technical
engineers, draftsmen, and technicians.
1.18 Prohibition Against Liens. The Design professional is Prohib-
ited from placing a lien on the Owner’s property. This prohibition
shall be placed in all design professional subcontracts.
Previous editions are obsolete
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Applicability
The Project or Program to which the construction work
covered by this contract pertains is being assisted by the
United States of America and the following Federal Labor
Standards
Provisions
are
included
in
this
Contract
pursuant to the provisions applicable to such Federal
assistance.
A. 1. (i) Minimum Wages. All laborers and mechanics
employed or working upon the site of the work, will be paid
unconditionally and not less often than once a week, and
without subsequent deduction or rebate on any account
(except such payroll deductions as are permitted by
regulations issued by the Secretary of Labor under the
Copeland Act (29 CFR Part 3), the full amount of wages
and bona fide fringe benefits (or cash equivalents thereof)
due at time of payment computed at rates not less than
those
contained
in
the
wage
determination
of
the
Secretary of Labor which is attached hereto and made a
part hereof, regardless of any contractual relationship
which may be alleged to exist between the contractor and
such laborers and mechanics. Contributions made or
costs reasonably anticipated for bona fide fringe benefits
under Section l(b)(2) of the Davis-Bacon Act on behalf of
laborers or mechanics are considered wages paid to such
laborers or mechanics, subject to the provisions of 29 CFR
5.5(a)(1)(iv); also, regular contributions made or costs
incurred for more than a weekly period (but not less often
than quarterly) under plans, funds, or programs, which
cover the particular weekly period, are deemed to be
constructively made or incurred during such weekly period.
Such laborers and mechanics shall be paid the appropriate
wage rate and fringe benefits on the wage determination
for the classification of work actually performed, without
regard to skill, except as provided in 29 CFR 5.5(a)(4).
Laborers or mechanics performing work in more than one
classification may be compensated at the rate specified for
each classification for the time actually worked therein:
Provided, That the employer’s payroll records accurately
set forth the time spent in each classification in which
work is performed. The wage determination (including any
additional classification and wage rates conformed under
29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH-
1321) shall be posted at all times by the contractor and its
subcontractors at the site of the work in a prominent and
accessible, place where it can be easily seen by the
workers.
(ii) (a) Any class of laborers or mechanics which is not
listed in the wage determination and which is to be
employed
under the contract shall be classified
in
conformance with the wage determination. HUD shall
approve an additional classification and wage rate and
fringe benefits therefor only when the following criteria
have been met:
(1) The work to be performed by the classification
requested is not performed by a classification in the wage
determination; and
(2) The classification is utilized in the area by the
construction industry; and
(3) The proposed wage rate, including any bona fide
fringe benefits, bears a reasonable relationship to the
wage rates contained in the wage determination.
(b) If the contractor and the laborers and mechanics to be
employed
in
the
classification
(if
known),
or
their
representatives, and HUD or its designee agree on the
classification
and
wage
rate
(including
the
amount
designated for fringe benefits where appropriate), a report
of the action taken shall be sent by HUD or its designee to
the
Administrator
of
the
Wage
and
Hour
Division,
Employment Standards Administration, U.S. Department of
Labor, Washington, D.C. 20210. The Administrator, or an
authorized
representative,
will
approve,
modify,
or
disapprove every additional classification action within 30
days of receipt and so advise HUD or its designee or will
notify HUD or its designee within the 30-day period that
additional time is necessary. (Approved by the Office of
Management and Budget under OMB control number 1215-
0140.)
(c) In the event the contractor, the laborers or mechanics
to
be
employed
in
the
classification
or
their
representatives, and HUD or its designee do not agree on
the proposed classification and wage rate (including the
amount designated for fringe benefits, where appropriate),
HUD or its designee shall refer the questions, including
the views of all interested parties and the recommendation
of
HUD
or
its
designee,
to
the
Administrator
for
determination. The Administrator, or an authorized
representative, will issue a determination within 30 days of
receipt and so advise HUD or its designee or will notify
HUD or its designee within the 30-day period that
additional time is necessary. (Approved by the Office of
Management and Budget under OMB Control Number
1215-0140.)
(d) The wage rate (including fringe benefits where
appropriate)
determined
pursuant
to
subparagraphs
(1)(ii)(b) or (c) of this paragraph, shall be paid to all
workers performing work in the classification under this
contract from the first day on which work is performed in
the classification.
(iii) Whenever the minimum wage rate prescribed in the
contract for a class of laborers or mechanics includes a
fringe benefit which is not expressed as an hourly rate, the
contractor shall either pay the benefit as stated in the
wage determination or shall pay another bona fide fringe
benefit or an hourly cash equivalent thereof.
(iv) If the contractor does not make payments to a trustee
or other third person, the contractor may consider as part
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of the wages of any laborer or mechanic the amount of any
costs reasonably anticipated in providing bona fide fringe
benefits under a plan or program, Provided, That the
Secretary of Labor has found, upon the written request of
the contractor, that the applicable standards of the Davis-
Bacon Act have been met. The Secretary of Labor may
require the contractor to set aside in a separate account
assets for the meeting of obligations under the plan or
program. (Approved by the Office of Management and
Budget under OMB Control Number 1215-0140.)
2. Withholding. HUD or its designee shall upon its own
action
or
upon
written
request
of
an
authorized
representative of the Department of Labor withhold or
cause to be withheld from the contractor under this
contract or any other Federal contract with the same prime
contractor,
or
any
other
Federally-assisted
contract
subject to Davis-Bacon prevailing wage requirements,
which is held by the same prime contractor so much of the
accrued payments or advances as may be considered
necessary to pay laborers and mechanics, including
apprentices, trainees and helpers, employed by the
contractor or any subcontractor the full amount of wages
required by the contract In the event of failure to pay any
laborer or mechanic, including any apprentice, trainee or
helper, employed or working on the site of the work, all or
part of the wages required by the contract, HUD or its
designee may, after written notice to the contractor,
sponsor, applicant, or owner, take such action as may be
necessary
to
cause
the
suspension
of
any
further
payment, advance, or guarantee of funds until such
violations have ceased. HUD or its designee may, after
written notice to the contractor, disburse such amounts
withheld
for
and
on
account
of
the
contractor
or
subcontractor to the respective employees to whom they
are due. The Comptroller General shall make such
disbursements in the case of direct Davis-Bacon Act
contracts.
3. (i) Payrolls and basic records. Payrolls and basic
records relating thereto shall be maintained by the
contractor during the course of the work preserved for a
period of three years thereafter for all laborers and
mechanics working at the site of the work. Such records
shall contain the name, address, and social security
number
of
each
such
worker,
his
or
her
correct
classification, hourly rates of wages paid (including rates
of contributions or costs anticipated for bona fide fringe
benefits or cash equivalents thereof of the types described
in Section l(b)(2)(B) of the Davis-bacon Act), daily and
weekly number of hours worked, deductions made and
actual wages paid. Whenever the Secretary of Labor has
found under 29 CFR 5.5 (a)(1)(iv) that the wages of any
laborer or mechanic include the amount of any costs
reasonably anticipated in providing benefits under a plan
or program described in Section l(b)(2)(B) of the Davis-
Bacon Act, the contractor shall maintain records which
show that the commitment to provide such benefits is
enforceable, that the plan or program is financially
responsible, and that the plan or program has been
communicated in writing to the laborers or mechanics
affected, and records which show the costs anticipated or
the actual cost incurred in providing such benefits.
Contractors employing apprentices or trainees under
approved programs shall maintain written evidence of the
registration of apprenticeship programs and certification of
trainee programs, the registration of the apprentices and
trainees, and the ratios and wage rates prescribed in the
applicable
programs.
(Approved
by
the
Office
of
Management and Budget under OMB Control Numbers
1215-0140 and 1215-0017.)
(ii) (a) The contractor shall submit weekly for each week
in which any contract work is performed a copy of all
payrolls to HUD or its designee if the agency is a party to
the contract, but if the agency is not such a party, the
contractor will submit the payrolls to the applicant
sponsor, or owner, as the case may be, for transmission to
HUD or its designee. The payrolls submitted shall set out
accurately and completely all of the information required
to be maintained under 29 CFR 5.5(a)(3)(i) except that full
social security numbers and home addresses shall not be
included on weekly transmittals. Instead the payrolls shall
only need to include an individually identifying number for
each employee (e.g., the last four digits of the employee’s
social security number). The required weekly payroll
information may be submitted in any form desired.
Optional Form WH-347 is available for this purpose from
the
Wage
and
Hour
Division
Web
site
at
http://www.dol.gov/esa/whd/forms/wh347instr.htm
or
its
successor site. The prime contractor is responsible for
the submission of copies of payrolls by all subcontractors.
Contractors and subcontractors shall maintain the full
social security number and current address of each
covered worker, and shall provide them upon request to
HUD or its designee if the agency is a party to the
contract, but if the agency is not such a party, the
contractor will submit the payrolls to the applicant
sponsor, or owner, as the case may be, for transmission to
HUD or its designee, the contractor, or the Wage and Hour
Division of the Department of Labor for purposes of an
investigation or audit of compliance with prevailing wage
requirements. It is not a violation of this subparagraph for
a prime contractor to require a subcontractor to provide
addresses and social security numbers to the prime
contractor for its own records, without weekly submission
to HUD or its designee. (Approved by the Office of
Management and Budget under OMB Control Number
1215-0149.)
(b) Each payroll submitted shall be accompanied by a
“Statement of Compliance,” signed by the contractor or
subcontractor or his or her agent who pays or supervises
the payment of the persons employed under the contract
and shall certify the following:
(1) That the payroll for the payroll period contains the
information required to be provided under 29 CFR 5.5
(a)(3)(ii), the appropriate information is being maintained
under 29 CFR 5.5(a)(3)(i), and that such information is
correct and complete;
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(2) That each laborer or mechanic (including each helper,
apprentice, and trainee) employed on the contract during
the payroll period has been paid the full weekly wages
earned, without rebate, either directly or indirectly, and
that no deductions have been made either directly or
indirectly
from
the
full
wages
earned,
other
than
permissible deductions as set forth in 29 CFR Part 3;
(3) That each laborer or mechanic has been paid not less
than the applicable wage rates and fringe benefits or cash
equivalents for the classification of work performed, as
specified
in
the
applicable
wage
determination
incorporated into the contract.
(c) The weekly submission of a properly executed
certification set forth on the reverse side of Optional Form
WH-347 shall satisfy the requirement for submission of the
“Statement of Compliance” required by subparagraph
A.3.(ii)(b).
(d) The falsification of any of the above certifications may
subject the contractor or subcontractor to civil or criminal
prosecution under Section 1001 of Title 18 and Section
231 of Title 31 of the United States Code.
(iii) The contractor or subcontractor shall make the
records required under subparagraph A.3.(i) available for
inspection,
copying,
or
transcription
by
authorized
representatives of HUD or its designee or the Department
of Labor, and shall permit such representatives to
interview employees during working hours on the job. If
the contractor or subcontractor fails to submit the required
records or to make them available, HUD or its designee
may, after written notice to the contractor, sponsor,
applicant or owner, take such action as may be necessary
to cause the suspension of any further payment, advance,
or guarantee of funds. Furthermore, failure to submit the
required records upon request or to make such records
available may be grounds for debarment action pursuant to
29 CFR 5.12.
4. Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at
less than the predetermined rate for the work they
performed when they are employed pursuant to and
individually registered in a bona fide apprenticeship
program registered with the U.S. Department of Labor,
Employment
and
Training
Administration,
Office
of
Apprenticeship Training, Employer and Labor Services, or
with a State Apprenticeship Agency recognized by the
Office, or if a person is employed in his or her first 90
days of probationary employment as an apprentice in such
an
apprenticeship
program,
who
is
not
individually
registered in the program, but who has been certified by
the Office of Apprenticeship Training, Employer and Labor
Services
or
a
State
Apprenticeship
Agency
(where
appropriate) to be eligible for probationary employment as
an apprentice. The allowable ratio of apprentices to
journeymen on the job site in any craft classification shall
not be greater than the ratio permitted to the contractor as
to the entire work force under the registered program. Any
worker listed on a payroll at an apprentice wage rate, who
is not registered or otherwise employed as stated above,
shall be paid not less than the applicable wage rate on the
wage determination for the classification of work actually
performed. In addition, any apprentice performing work on
the job site in excess of the ratio permitted under the
registered program shall be paid not less than the
applicable wage rate on the wage determination for the
work actually performed. Where a contractor is performing
construction on a project in a locality other than that in
which its program is registered, the ratios and wage rates
(expressed in percentages of the journeyman’s hourly
rate) specified in the contractor’s or subcontractor’s
registered program shall be observed. Every apprentice
must be paid at not less than the rate specified in the
registered program for the apprentice’s level of progress,
expressed as a percentage of the journeymen hourly rate
specified
in
the
applicable
wage
determination.
Apprentices shall be paid fringe benefits in accordance
with the provisions of the apprenticeship program. If the
apprenticeship program does not specify fringe benefits,
apprentices must be paid the full amount of fringe benefits
listed on the wage determination for the applicable
classification. If the Administrator determines that a
different practice prevails for the applicable apprentice
classification, fringes shall be paid in accordance with that
determination. In the event the Office of Apprenticeship
Training, Employer and Labor Services, or a State
Apprenticeship
Agency
recognized
by
the
Office,
withdraws approval of an apprenticeship program, the
contractor
will
no
longer
be
permitted
to
utilize
apprentices at less than the applicable predetermined rate
for the work performed until an acceptable program is
approved.
(ii) Trainees. Except as provided in 29 CFR 5.16,
trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they are
employed pursuant ‘,to and individually registered in a
program which has received prior approval, evidenced by
formal certification by the U.S. Department of Labor,
Employment and Training Administration. The ratio of
trainees to journeymen on the job site shall not be greater
than
permitted
under
the
plan
approved
by
the
Employment and Training Administration. Every trainee
must be paid at not less than the rate specified in the
approved program for the trainee’s level of progress,
expressed as a percentage of the journeyman hourly rate
specified in the applicable wage determination. Trainees
shall be paid fringe benefits in accordance with the
provisions of the trainee program. If the trainee program
does not mention fringe benefits, trainees shall be paid
the full amount of fringe benefits listed on the wage
determination unless the Administrator of the Wage and
Hour Division determines that there is an apprenticeship
program associated with the corresponding journeyman
wage rate on the wage determination which provides for
less than full fringe benefits for apprentices. Any
employee listed on the payroll at a trainee rate who is not
registered and participating in a training plan approved by
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the Employment and Training Administration shall be paid
not less than the applicable wage rate on the wage
determination for the work actually performed. In addition,
any trainee performing work on the job site in excess of
the ratio permitted under the registered program shall be
paid not less than the applicable wage rate on the wage
determination for the work actually performed. In the
event
the
Employment
and
Training
Administration
withdraws approval of a training program, the contractor
will no longer be permitted to utilize trainees at less than
the applicable predetermined rate for the work performed
until an acceptable program is approved.
(iii) Equal employment opportunity. The utilization of
apprentices, trainees and journeymen under 29 CFR Part 5
shall
be
in
conformity
with
the
equal
employment
opportunity requirements of Executive Order 11246, as
amended, and 29 CFR Part 30.
5. Compliance with Copeland Act requirements. The
contractor shall comply with the requirements of 29 CFR
Part 3 which are incorporated by reference in this contract
6. Subcontracts. The contractor or subcontractor will
insert in any subcontracts the clauses contained in
subparagraphs 1 through 11 in this paragraph A and such
other clauses as HUD or its designee may by appropriate
instructions
require,
and
a
copy
of
the
applicable
prevailing wage decision, and also a clause requiring the
subcontractors to include these clauses in any lower tier
subcontracts. The prime contractor shall be responsible
for the compliance by any subcontractor or lower tier
subcontractor
with
all
the
contract
clauses
in
this
paragraph.
7. Contract termination; debarment. A breach of the
contract clauses in 29 CFR 5.5 may be grounds for
termination of the contract and for debarment
as
a
contractor and a subcontractor as provided in 29 CFR
5.12.
8. Compliance with Davis-Bacon and Related Act Requirements.
All rulings and interpretations of the Davis-Bacon and
Related Acts contained in 29 CFR Parts 1, 3, and 5 are
herein incorporated by reference in this contract
9. Disputes concerning labor standards. Disputes
arising out of the labor standards provisions of this
contract shall not be subject to the general disputes
clause of this contract. Such disputes shall be resolved in
accordance with the procedures of the Department of
Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes
within the meaning of this clause include disputes between
the contractor (or any of its subcontractors) and HUD or
its designee, the U.S. Department of Labor, or the
employees or their representatives.
10. (i) Certification of Eligibility. By entering into this
contract the contractor certifies that neither it (nor he or
she) nor any person or firm who has an interest in the
contractor’s firm is a person or firm ineligible to be
awarded Government contracts by virtue of Section 3(a) of
the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be
awarded HUD contracts or participate in HUD programs
pursuant to 24 CFR Part 24.
(ii) No part of this contract shall be subcontracted to any
person or firm ineligible for award of a Government
contract by virtue of Section 3(a) of the Davis-Bacon Act
or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or
participate in HUD programs pursuant to 24 CFR Part 24.
(iii) The penalty for making false statements is prescribed
in the U.S. Criminal Code, 18 U.S.C. 1001. Additionally,
U.S. Criminal Code, Section 1 01 0, Title 18, U.S.C.,
“Federal Housing Administration transactions”, provides in
part: “Whoever, for the purpose of . . . influencing in any
way the action of such Administration..... makes, utters or
publishes any statement knowing the same to be false.....
shall be fined not more than $5,000 or imprisoned not
more than two years, or both.”
11.
Complaints,
Proceedings,
or
Testimony
by
Employees. No laborer or mechanic to whom the wage,
salary, or other labor standards provisions of this Contract
are applicable shall be discharged or in any other manner
discriminated
against
by
the
Contractor
or
any
subcontractor because such employee has filed any
complaint or instituted or caused to be instituted any
proceeding or has testified or is about to testify in any
proceeding under or relating to the labor standards
applicable under this Contract to his employer.
B. Contract Work Hours and Safety Standards Act. The
provisions of this paragraph B are applicable where the amount of the
prime contract exceeds $100,000. As used in this paragraph, the
terms “laborers” and “mechanics” include watchmen and guards.
(1) Overtime requirements. No contractor or subcontractor
contracting for any part of the contract work which may require or
involve the employment of laborers or mechanics shall require or
permit any such laborer or mechanic in any workweek in which the
individual is employed on such work to work in excess of 40 hours in
such
workweek
unless
such
laborer
or
mechanic
receives
compensation at a rate not less than one and one-half times the basic
rate of pay for all hours worked in excess of 40 hours in such
workweek.
(2) Violation; liability for unpaid wages; liquidated
damages. In the event of any violation of the clause set
forth in subparagraph (1) of this paragraph, the contractor
and any subcontractor responsible therefor shall be liable
for the unpaid wages. In addition, such contractor and
subcontractor shall be liable to the United States (in the
case of work done under contract for the District of
Columbia or a territory, to such District or to such
territory),
for
liquidated
damages.
Such
liquidated
damages shall be computed with respect to each individual
laborer or mechanic, including watchmen and guards,
employed
in
violation
of
the
clause
set
forth
in
subparagraph (1) of this paragraph, in the sum of $10 for each
calendar day on which such individual was required or permitted to
work in excess of the standard workweek of 40 hours without payment
of the overtime wages required by the clause set forth in sub
paragraph (1) of this paragraph.
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(3) Withholding for unpaid wages and liquidated
damages. HUD or its designee shall upon its own action
or upon written request of an authorized representative of
the Department of Labor withhold or cause to be withheld,
from any moneys payable on account of work performed by
the contractor or subcontractor under any such contract or
any other Federal contract with the same prime contract,
or any other Federally-assisted contract subject to the
Contract Work Hours and Safety Standards Act which is
held by the same prime contractor such sums as may be
determined to be necessary to satisfy any liabilities of
such contractor or subcontractor for unpaid wages and
liquidated damages as provided in the clause set forth in
subparagraph (2) of this paragraph.
(4) Subcontracts. The contractor or subcontractor shall
insert in any subcontracts the clauses set forth in
subparagraph (1) through (4) of this paragraph and also a
clause requiring the subcontractors to include these
clauses in any lower tier subcontracts. The prime
contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clauses
set forth in subparagraphs (1) through (4) of this
paragraph.
C. Health and Safety. The provisions of this paragraph C are
applicable where the amount of the prime contract exceeds $100,000.
(1) No laborer or mechanic shall be required to work in
surroundings or under working conditions which are
unsanitary, hazardous, or dangerous to his health and
safety as determined under construction safety and health
standards promulgated by the Secretary of Labor by
regulation.
(2) The Contractor shall comply with all regulations
issued by the Secretary of Labor pursuant to Title 29 Part
1926 and failure to comply may result in imposition of
sanctions pursuant to the Contract Work Hours and Safety
Standards Act, (Public Law 91-54, 83 Stat 96). 40 USC
3701 et seq.
(3) The contractor shall include the provisions of this
paragraph in every subcontract so that such provisions will
be binding on each subcontractor. The contractor shall
take such action with respect to any subcontractor as the
Secretary of Housing and Urban Development or the
Secretary of Labor shall direct as a means of enforcing
such provisions.
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Previous edition is obsolete
form HUD-5369 (10/2002)
Instructions to Bidders for Contracts
Public and Indian Housing Programs
U.S. Department of Housing and
Urban Development
Office of Public and Indian Housing
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Previous edition is obsolete
form HUD-5369 (10/2002)
Instructions to Bidders for Contracts
Public and Indian Housing Programs
Table of Contents
Clause
Page
1.
Bid Preparation and Submission
1
2.
Explanations and Interpretations to Prospective Bidders 1
3.
Amendments to Invitations for Bids
1
4.
Responsibility of Prospective Contractor
1
5.
Late Submissions, Modifications, and Withdrawal of Bids 1
6.
Bid Opening
2
7.
Service of Protest
2
8.
Contract Award
2
9.
Bid Guarantee
3
10. Assurance of Completion
3
11. Preconstruction Conference
3
12. Indian Preference Requirements
3
1.
Bid Preparation and Submission
(a) Bidders are expected to examine the specifications, drawings,
all instructions, and, if applicable, the construction site (see also the
contract clause entitled Site Investigation and Conditions Affect-
ing the Work of the General Conditions of the Contract for Construc-
tion). Failure to do so will be at the bidders’ risk.
(b) All bids must be submitted on the forms provided by the Public
Housing Agency/Indian Housing Authority (PHA/IHA). Bidders shall
furnish all the information required by the solicitation. Bids must be
signed and the bidder’s name typed or printed on the bid sheet and
each continuation sheet which requires the entry of information by
the bidder. Erasures or other changes must be initialed by the person
signing the bid. Bids signed by an agent shall be accompanied by
evidence of that agent’s authority. (Bidders should retain a copy of
their bid for their records.)
(c)
Bidders must submit as part of their bid a completed form HUD-
5369-A, “Representations, Certifications, and Other Statements of
Bidders.”
(d) All bid documents shall be sealed in an envelope which shall be
clearly marked with the words “Bid Documents,” the Invitation for
Bids (IFB) number, any project or other identifying number, the
bidder’s name, and the date and time for receipt of bids.
(e) If this solicitation requires bidding on all items, failure to do so will
disqualify the bid. If bidding on all items is not required, bidders
should insert the words “No Bid” in the space provided for any item
on which no price is submitted.
(f)
Unless expressly authorized elsewhere in this solicitation, alter-
nate bids will not be considered.
(g) Unless expressly authorized elsewhere in this solicitation, bids
submitted by telegraph or facsimile (fax) machines will not be
considered.
(h) If the proposed contract is for a Mutual Help project (as de-
scribed in 24 CFR Part 905, Subpart E) that involves Mutual Help
contributions of work, material, or equipment, supplemental informa-
tion regarding the bid advertisement is provided as an attachment to
this solicitation.
2.
Explanations and Interpretations to Prospective
Bidders
(a) Any prospective bidder desiring an explanation or interpretation
of the solicitation, specifications, drawings, etc., must request it at
least 7 days before the scheduled time for bid opening. Requests
may be oral or written. Oral requests must be confirmed in writing.
The only oral clarifications that will be provided will be those clearly
related to solicitation procedures, i.e., not substantive technical
information. No other oral explanation or interpretation will be
provided. Any information given a prospective bidder concerning
this solicitation will be furnished promptly to all other prospective
bidders as a written amendment to the solicitation, if that information
is necessary in submitting bids, or if the lack of it would be prejudicial
to other prospective bidders.
(b) Any information obtained by, or provided to, a bidder other than
by formal amendment to the solicitation shall not constitute a change
to the solicitation.
3.
Amendments to Invitations for Bids
(a) If this solicitation is amended, then all terms and conditions
which are not modified remain unchanged.
(b) Bidders shall acknowledge receipt of any amendment to this
solicitation (1) by signing and returning the amendment, (2) by
identifying the amendment number and date on the bid form, or (3)
by letter, telegram, or facsimile, if those methods are authorized in
the solicitation. The PHA/IHA must receive acknowledgement by the
time and at the place specified for receipt of bids. Bids which fail to
acknowledge the bidder’s receipt of any amendment will result in the
rejection of the bid if the amendment(s) contained information which
substantively changed the PHA’s/IHA’s requirements.
(c)
Amendments will be on file in the offices of the PHA/IHA and the
Architect at least 7 days before bid opening.
4.
Responsibility of Prospective Contractor
(a) The PHA/IHA will award contracts only to responsible prospec-
tive contractors who have the ability to perform successfully under
the terms and conditions of the proposed contract. In determining
the responsibility of a bidder, the PHA/IHA will consider such matters
as the bidder’s:
(1) Integrity;
(2) Compliance with public policy;
(3) Record of past performance; and
(4) Financial and technical resources (including construction
and technical equipment).
(b) Before a bid is considered for award, the bidder may be re-
quested by the PHA/IHA to submit a statement or other documenta-
tion regarding any of the items in paragraph (a) above. Failure by the
bidder to provide such additional information shall render the bidder
nonresponsible and ineligible for award.
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5.
Late Submissions, Modifications, and Withdrawal of Bids
(a) Any bid received at the place designated in the solicitation after
the exact time specified for receipt will not be considered unless it is
received before award is made and it:
(1) Was sent by registered or certified mail not later than the
fifth calendar day before the date specified for receipt of offers (e.g.,
an offer submitted in response to a solicitation requiring receipt of
offers by the 20th of the month must have been mailed by the 15th);
(2) Was sent by mail, or if authorized by the solicitation, was
sent by telegram or via facsimile, and it is determined by the PHA/IHA
that the late receipt was due solely to mishandling by the PHA/IHA
after receipt at the PHA/IHA; or
(3) Was sent by U.S. Postal Service Express Mail Next Day
Service - Post Office to Addressee, not later than 5:00 p.m. at the
place of mailing two working days prior to the date specified for
receipt of proposals. The term “working days” excludes weekends
and observed holidays.
(b) Any modification or withdrawal of a bid is subject to the same
conditions as in paragraph (a) of this provision.
(c)
The only acceptable evidence to establish the date of mailing of
a late bid, modification, or withdrawal sent either by registered or
certified mail is the U.S. or Canadian Postal Service postmark both
on the envelope or wrapper and on the original receipt from the U.S.
or Canadian Postal Service. Both postmarks must show a legible
date or the bid, modification, or withdrawal shall be processed as if
mailed late. “Postmark” means a printed, stamped, or otherwise
placed impression (exclusive of a postage meter machine impres-
sion) that is readily identifiable without further action as having been
supplied and affixed by employees of the U.S. or Canadian Postal
Service on the date of mailing. Therefore, bidders should request the
postal clerk to place a hand cancellation bull’s-eye postmark on both
the receipt and the envelope or wrapper.
(d)
The only acceptable evidence to establish the time of receipt at the
PHA/IHA is the time/date stamp of PHA/IHA on the proposal wrapper or
other documentary evidence of receipt maintained by the PHA/IHA.
(e) The only acceptable evidence to establish the date of mailing of
a late bid, modification, or withdrawal sent by Express Mail Next Day
Service-Post Office to Addressee is the date entered by the post
office receiving clerk on the “Express Mail Next Day Service-Post
Office to Addressee” label and the postmark on both the envelope or
wrapper and on the original receipt from the U.S. Postal Service.
“Postmark” has the same meaning as defined in paragraph (c) of this
provision, excluding postmarks of the Canadian Postal Service.
Therefore, bidders should request the postal clerk to place a legible
hand cancellation bull’s eye postmark on both the receipt and Failure
by a bidder to acknowledge receipt of the envelope or wrapper.
(f)
Notwithstanding paragraph (a) of this provision, a late modifica-
tion of an otherwise successful bid that makes its terms more
favorable to the PHA/IHA will be considered at any time it is received
and may be accepted.
(g) Bids may be withdrawn by written notice, or if authorized by this
solicitation, by telegram (including mailgram) or facsimile machine
transmission received at any time before the exact time set for
opening of bids; provided that written confirmation of telegraphic or
facsimile withdrawals over the signature of the bidder is mailed and
postmarked prior to the specified bid opening time. A bid may be
withdrawn in person by a bidder or its authorized representative if,
before the exact time set for opening of bids, the identity of the person
requesting withdrawal is established and the person signs a receipt
for the bid.
6.
Bid Opening
All bids received by the date and time of receipt specified in the
solicitation will be publicly opened and read. The time and place of
opening will be as specified in the solicitation. Bidders and other
interested persons may be present.
7.
Service of Protest
(a) Definitions. As used in this provision:
“Interested party” means an actual or prospective bidder whose
direct economic interest would be affected by the award of the
contract.
“Protest” means a written objection by an interested party to this
solicitation or to a proposed or actual award of a contract pursuant
to this solicitation.
(b) Protests shall be served on the Contracting Officer by obtaining
written and dated acknowledgement from —
[Contracting Officer designate the official or location where a protest
may be served on the Contracting Officer]
(c)
All protests shall be resolved in accordance with the PHA’s/
IHA’s protest policy and procedures, copies of which are maintained
at the PHA/IHA.
8.
Contract Award
(a) The PHA/IHA will evaluate bids in response to this solicitation
without discussions and will award a contract to the responsible
bidder whose bid, conforming to the solicitation, will be most advan-
tageous to the PHA/IHA considering only price and any price-related
factors specified in the solicitation.
(b) If the apparent low bid received in response to this solicitation
exceeds the PHA’s/IHA’s available funding for the proposed contract
work, the PHA/IHA may either accept separately priced items (see
8(e) below) or use the following procedure to determine contract
award. The PHA/IHA shall apply in turn to each bid (proceeding in
order from the apparent low bid to the high bid) each of the separately
priced bid deductible items, if any, in their priority order set forth in
this solicitation. If upon the application of the first deductible item to
all initial bids, a new low bid is within the PHA’s/IHA’s available
funding, then award shall be made to that bidder. If no bid is within
the available funding amount, then the PHA/IHA shall apply the
second deductible item. The PHA/IHA shall continue this process
until an evaluated low bid, if any, is within the PHA’s/IHA’s available
funding. If upon the application of all deductibles, no bid is within the
PHA’s/IHA’s available funding, or if the solicitation does not request
separately priced deductibles, the PHA/IHA shall follow its written
policy and procedures in making any award under this solicitation.
(c)
In the case of tie low bids, award shall be made in accordance
with the PHA’s/IHA’s written policy and procedures.
(d) The PHA/IHA may reject any and all bids, accept other than the
lowest bid (e.g., the apparent low bid is unreasonably low), and waive
informalities or minor irregularities in bids received, in accordance
with the PHA’s/IHA’s written policy and procedures.
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(e) Unless precluded elsewhere in the solicitation, the PHA/IHA
may accept any item or combination of items bid.
(f)
The PHA/IHA may reject any bid as nonresponsive if it is
materially unbalanced as to the prices for the various items of work
to be performed. A bid is materially unbalanced when it is based on
prices significantly less than cost for some work and prices which are
significantly overstated for other work.
(g) A written award shall be furnished to the successful bidder within
the period for acceptance specified in the bid and shall result in a
binding contract without further action by either party.
9.
Bid Guarantee (applicable to construction and equip-
ment contracts exceeding $25,000)
All bids must be accompanied by a negotiable bid guarantee which
shall not be less than five percent (5%) of the amount of the bid. The
bid guarantee may be a certified check, bank draft, U.S. Government
Bonds at par value, or a bid bond secured by a surety company
acceptable to the U.S. Government and authorized to do business in
the state where the work is to be performed. In the case where the
work under the contract will be performed on an Indian reservation
area, the bid guarantee may also be an irrevocable Letter of Credit
(see provision 10, Assurance of Completion, below). Certified
checks and bank drafts must be made payable to the order of the
PHA/IHA. The bid guarantee shall insure the execution of the
contract and the furnishing of a method of assurance of completion
by the successful bidder as required by the solicitation. Failure to
submit a bid guarantee with the bid shall result in the rejection of the
bid. Bid guarantees submitted by unsuccessful bidders will be
returned as soon as practicable after bid opening.
10. Assurance of Completion
(a) Unless otherwise provided in State law, the successful bidder
shall furnish an assurance of completion prior to the execution of any
contract under this solicitation. This assurance may be [Contracting
Officer check applicable items] —
[ ]
(1) a performance and payment bond in a penal sum of 100
percent of the contract price; or, as may be required or permitted by
State law;
[ ]
(2) separate performance and payment bonds, each for 50
percent or more of the contract price;
[ ]
(3) a 20 percent cash escrow;
[ ]
(4) a 25 percent irrevocable letter of credit; or,
[ ]
(5) an irrevocable letter of credit for 10 percent of the total
contract price with a monitoring and disbursements agreement with
the IHA (applicable only to contracts awarded by an IHA under the
Indian Housing Program).
(b) Bonds must be obtained from guarantee or surety companies
acceptable to the U.S. Government and authorized to do business in
the state where the work is to be performed. Individual sureties will
not be considered. U.S. Treasury Circular Number 570, published
annually in the Federal Register, lists companies approved to act as
sureties on bonds securing Government contracts, the maximum
underwriting limits on each contract bonded, and the States in which
the company is licensed to do business. Use of companies listed in
this circular is mandatory. Copies of the circular may be downloaded
on the U.S. Department of Treasury website http://
www.fms.treas.gov/c570/index.html, or ordered for a minimum fee
by contacting the Government Printing Office at (202) 512-2168.
(c)
Each bond shall clearly state the rate of premium and the total
amount of premium charged. The current power of attorney for the
person who signs for the surety company must be attached to the
bond. The effective date of the power of attorney shall not precede
the date of the bond. The effective date of the bond shall be on or after
the execution date of the contract.
(d) Failure by the successful bidder to obtain the required assur-
ance of completion within the time specified, or within such extended
period as the PHA/IHA may grant based upon reasons determined
adequate by the PHA/IHA, shall render the bidder ineligible for
award. The PHA/IHA may then either award the contract to the next
lowest responsible bidder or solicit new bids. The PHA/IHA may
retain the ineligible bidder’s bid guarantee.
11. Preconstruction Conference (applicable to construction
contracts)
After award of a contract under this solicitation and prior to the start
of work, the successful bidder will be required to attend a
preconstruction conference with representatives of the PHA/IHA and
its architect/engineer, and other interested parties convened by the
PHA/IHA. The conference will serve to acquaint the participants with
the general plan of the construction operation and all other require-
ments of the contract (e.g., Equal Employment Opportunity, Labor
Standards). The PHA/IHA will provide the successful bidder with the
date, time, and place of the conference.
12. Indian Preference Requirements (applicable only if
this solicitation is for a contract to be performed on a
project for an Indian Housing Authority)
(a) HUD has determined that the contract awarded under this
solicitation is subject to the requirements of section 7(b) of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450e(b)).
Section 7(b) requires that any contract or subcontract entered into for
the benefit of Indians shall require that, to the greatest extent feasible
(1) Preferences and opportunities for training and employment
(other than core crew positions; see paragraph (h) below) in connec-
tion with the administration of such contracts or subcontracts be
given to qualified “Indians.” The Act defines “Indians” to mean
persons who are members of an Indian tribe and defines “Indian
tribe” to mean any Indian tribe, band, nation, or other organized
group or community, including any Alaska Native village or regional
or village corporation as defined in or established pursuant to the
Alaska Native Claims Settlement Act, which is recognized as eligible
for the special programs and services provided by the United States
to Indians because of their status as Indians; and,
(2) Preference in the award of contracts or subcontracts in
connection with the administration of contracts be given to Indian
organizations and to Indian-owned economic enterprises, as de-
fined in section 3 of the Indian Financing Act of 1974 (25 U.S.C.
1452). That Act defines “economic enterprise” to mean any Indian-
owned commercial, industrial, or business activity established or
organized for the purpose of profit, except that the Indian ownership
must constitute not less than 51 percent of the enterprise; “Indian
organization” to mean the governing body of any Indian tribe or entity
established or recognized by such governing body; “Indian” to mean
any person who is a member of any tribe, band, group, pueblo, or
community which is recognized by the Federal Government as
eligible for services from the Bureau of Indian Affairs and any
“Native” as defined in the Alaska Native Claims Settlement Act; and
Indian “tribe” to mean any Indian tribe, band, group, pueblo, or
community including Native villages and Native groups (including
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corporations organized by Kenai, Juneau, Sitka, and Kodiak) as
defined in the Alaska Native Claims Settlement Act, which is recog-
nized by the Federal Government as eligible for services from the
Bureau of Indian Affairs.
(b) (1) The successful Contractor under this solicitation shall com-
ply with the requirements of this provision in awarding all subcon-
tracts under the contract and in providing training and employment
opportunities.
(2) A finding by the IHA that the contractor, either (i) awarded
a subcontract without using the procedure required by the IHA, (ii)
falsely represented that subcontracts would be awarded to Indian
enterprises or organizations; or, (iii) failed to comply with the
contractor’s employment and training preference bid statement shall
be grounds for termination of the contract or for the assessment of
penalties or other remedies.
(c)
If specified elsewhere in this solicitation, the IHA may restrict the
solicitation to qualified Indian-owned enterprises and Indian organi-
zations. If two or more (or a greater number as specified elsewhere
in the solicitation) qualified Indian-owned enterprises or organiza-
tions submit responsive bids, award shall be made to the qualified
enterprise or organization with the lowest responsive bid. If fewer
than the minimum required number of qualified Indian-owned enter-
prises or organizations submit responsive bids, the IHA shall reject
all bids and readvertise the solicitation in accordance with paragraph
(d) below.
(d) If the IHA prefers not to restrict the solicitation as described in
paragraph (c) above, or if after having restricted a solicitation an
insufficient number of qualified Indian enterprises or organizations
submit bids, the IHA may advertise for bids from non-Indian as well
as Indian-owned enterprises and Indian organizations. Award shall
be made to the qualified Indian enterprise or organization with the
lowest responsive bid if that bid is -
(1) Within the maximum HUD-approved budget amount estab-
lished for the specific project or activity for which bids are being
solicited; and
(2) No more than the percentage specified in 24 CFR 905.175(c)
higher than the total bid price of the lowest responsive bid from any
qualified bidder. If no responsive bid by a qualified Indian-owned
economic enterprise or organization is within the stated range of the
total bid price of the lowest responsive bid from any qualified
enterprise, award shall be made to the bidder with the lowest bid.
(e) Bidders seeking to qualify for preference in contracting or
subcontracting shall submit proof of Indian ownership with their bids.
Proof of Indian ownership shall include but not be limited to:
(1) Certification by a tribe or other evidence that the bidder is
an Indian. The IHA shall accept the certification of a tribe that an
individual is a member.
(2) Evidence such as stock ownership, structure, manage-
ment, control, financing and salary or profit sharing arrangements of
the enterprise.
(f)
(1) All bidders must submit with their bids a statement describ-
ing how they will provide Indian preference in the award of subcon-
tracts. The specific requirements of that statement and the factors
to used by the IHA in determining the statement’s adequacy are
included as an attachment to this solicitation. Any bid that fails to
include the required statement shall be rejected as nonresponsive.
The IHA may require that comparable statements be provided by
subcontractors to the successful Contractor, and may require the
Contractor to reject any bid or proposal by a subcontractor that fails
to include the statement.
(2) Bidders and prospective subcontractors shall submit a
certification (supported by credible evidence) to the IHA in any
instance where the bidder or subcontractor believes it is infeasible to
provide Indian preference in subcontracting. The acceptance or
rejection by the IHA of the certification shall be final. Rejection shall
disqualify the bid from further consideration.
(g) All bidders must submit with their bids a statement detailing their
employment and training opportunities and their plans to provide
preference to Indians in implementing the contract; and the number
or percentage of Indians anticipated to be employed and trained.
Comparable statements from all proposed subcontractors must be
submitted. The criteria to be used by the IHA in determining the
statement(s)’s adequacy are included as an attachment to this
solicitation. Any bid that fails to include the required statement(s), or
that includes a statement that does not meet minimum standards
required by the IHA shall be rejected as nonresponsive.
(h) Core crew employees. A core crew employee is an individual
who is a bona fide employee of the contractor at the time the bid is
submitted; or an individual who was not employed by the bidder at the
time the bid was submitted, but who is regularly employed by the
bidder in a supervisory or other key skilled position when work is
available. Bidders shall submit with their bids a list of all core crew
employees.
(i)
Preference in contracting, subcontracting, employment, and
training shall apply not only on-site, on the reservation, or within the
IHA’s jurisdiction, but also to contracts with firms that operate outside
these areas (e.g., employment in modular or manufactured housing
construction facilities).
(j)
Bidders should contact the IHA to determine if any additional
local preference requirements are applicable to this solicitation.
(k)
The IHA [ ] does [ ] does not [Contracting Officer check
applicable box] maintain lists of Indian-owned economic enterprises
and Indian organizations by specialty (e.g., plumbing, electrical,
foundations), which are available to bidders to assist them in meeting
their responsibility to provide preference in connection with the
administration of contracts and subcontracts.
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Representations, Certifications,
and Other Statements of Bidders
Public and Indian Housing Programs
U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
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Representations, Certifications,
and Other Statements of Bidders
Public and Indian Housing Programs
Table of Contents
Clause
Page
1.
Certificate of Independent Price Determination
1
2.
Contingent Fee Representation and Agreement
1
3.
Certification and Disclosure Regarding Payments
to Influence Certain Federal Transactions
1
4.
Organizational Conflicts of Interest Certification
2
5.
Bidder's Certification of Eligibility
2
6.
Minimum Bid Acceptance Period
2
7.
Small, Minority, Women-Owned Business Concern
Representation
2
8.
Indian-Owned Economic Enterprise and Indian
Organization Representation
2
9.
Certification of Eligibility Under the Davis-Bacon Act
3
10. Certification of Nonsegregated Facilities
3
11. Clean Air and Water Certification
3
12. Previous Participation Certificate
3
13. Bidder's Signature
3
1.
Certificate of Independent Price Determination
(a) The bidder certifies that--
(1) The prices in this bid have been arrived at independently,
without, for the purpose of restricting competition, any consultation,
communication, or agreement with any other bidder or competitor
relating to (i) those prices, (ii) the intention to submit a bid, or (iii) the
methods or factors used to calculate the prices offered;
(2) The prices in this bid have not been and will not be
knowingly disclosed by the bidder, directly or indirectly, to any other
bidder or competitor before bid opening (in the case of a sealed bid
solicitation) or contract award (in the case of a competitive proposal
solicitation) unless otherwise required by law; and
(3) No attempt has been made or will be made by the bidder to
induce any other concern to submit or not to submit a bid for the
purpose of restricting competition.
(b) Each signature on the bid is considered to be a certification by
the signatory that the signatory--
(1) Is the person in the bidder's organization responsible for
determining the prices being offered in this bid or proposal, and that
the signatory has not participated and will not participate in any
action contrary to subparagraphs (a)(l) through (a)(3) above; or
(2) (i)
Has been authorized, in writing, to act as agent for the
following principals in certifying that those principals have not
participated, and will not participate in any action contrary to
subparagraphs (a)(l) through (a)(3) above.
_______________________________________________ [insert
full name of person(s) in the bidder's organization responsible for
determining the prices offered in this bid or proposal, and the title of
his or her position in the bidder's organization];
(ii)
As an authorized agent, does certify that the principals
named in subdivision (b)(2)(i) above have not participated, and will
not participate, in any action contrary to subparagraphs (a)(1)
through (a)(3) above; and
(iii) As an agent, has not personally participated, and will
not participate in any action contrary to subparagraphs (a)(1)
through (a)(3) above.
(c) If the bidder deletes or modifies subparagraph (a)2 above, the
bidder must furnish with its bid a signed statement setting forth in
detail the circumstances of the disclosure.
[ ] [Contracting Officer check if following paragraph is applicable]
(d) Non-collusive affidavit. (applicable to contracts for construction
and equipment exceeding $50,000)
(1) Each bidder shall execute, in the form provided by the PHA/
IHA, an affidavit to the effect that he/she has not colluded with any
other person, firm or corporation in regard to any bid submitted in
response to this solicitation. If the successful bidder did not submit
the affidavit with his/her bid, he/she must submit it within three (3)
working days of bid opening. Failure to submit the affidavit by that
date may render the bid nonresponsive. No contract award will be
made without a properly executed affidavit.
(2) A fully executed "Non-collusive Affidavit" [ ] is, [ ] is not
included with the bid.
2.
Contingent Fee Representation and Agreement
(a) Definitions. As used in this provision:
"Bona fide employee" means a person, employed by a bidder
and subject to the bidder's supervision and control as to time, place,
and manner of performance, who neither exerts, nor proposes to
exert improper influence to solicit or obtain contracts nor holds out
as being able to obtain any contract(s) through improper influence.
"Improper influence" means any influence that induces or tends
to induce a PHA/IHA employee or officer to give consideration or to
act regarding a PHA/IHA contract on any basis other than the merits
of the matter.
(b) The bidder represents and certifies as part of its bid that, except
for full-time bona fide employees working solely for the bidder, the
bidder:
(1) [ ] has, [ ] has not employed or retained any person or
company to solicit or obtain this contract; and
(2) [ ] has, [ ] has not paid or agreed to pay to any person or
company employed or retained to solicit or obtain this contract any
commission, percentage, brokerage, or other fee contingent upon or
resulting from the award of this contract.
(c) If the answer to either (a)(1) or (a)(2) above is affirmative, the
bidder shall make an immediate and full written disclosure to the
PHA/IHA Contracting Officer.
(d) Any misrepresentation by the bidder shall give the PHA/IHA the
right to (1) terminate the contract; (2) at its discretion, deduct from
contract payments the amount of any commission, percentage,
brokerage, or other contingent fee; or (3) take other remedy
pursuant to the contract.
3.
Certification and Disclosure Regarding Payments to
Influence Certain Federal Transactions (applicable to
contracts exceeding $100,000)
(a) The definitions and prohibitions contained in Section 1352 of
title 31, United States Code, are hereby incorporated by reference
in paragraph (b) of this certification.
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6.
Minimum Bid Acceptance Period
(a) "Acceptance period," as used in this provision, means the
number of calendar days available to the PHA/IHA for awarding a
contract from the date specified in this solicitation for receipt of bids.
(b) This provision supersedes any language pertaining to the
acceptance period that may appear elsewhere in this solicitation.
(c) The PHA/IHA requires a minimum acceptance period of
[Contracting Officer insert time period] calendar days.
(d) In the space provided immediately below, bidders may specify
a longer acceptance period than the PHA's/IHA's minimum require-
ment. The bidder allows the following acceptance period:
calendar days.
(e) A bid allowing less than the PHA's/IHA's minimum acceptance
period will be rejected.
(f)
The bidder agrees to execute all that it has undertaken to do, in
compliance with its bid, if that bid is accepted in writing within (1) the
acceptance period stated in paragraph (c) above or (2) any longer
acceptance period stated in paragraph (d) above.
7.
Small, Minority, Women-Owned Business Concern
Representation
The bidder represents and certifies as part of its bid/ offer that it --
(a) [ ] is, [ ] is not a small business concern. "Small business
concern," as used in this provision, means a concern, including its
affiliates, that is independently owned and operated, not dominant
in the field of operation in which it is bidding, and qualified as a small
business under the criteria and size standards in 13 CFR 121.
(b) [ ] is, [ ] is not a women-owned business enterprise. "Women-
owned business enterprise," as used in this provision, means a
business that is at least 51 percent owned by a woman or women
who are U.S. citizens and who also control and operate the business.
(c) [ ] is, [ ] is not a minority business enterprise. "Minority
business enterprise," as used in this provision, means a business
which is at least 51 percent owned or controlled by one or more
minority group members or, in the case of a publicly owned business,
at least 51 percent of its voting stock is owned by one or more
minority group members, and whose management and daily opera-
tions are controlled by one or more such individuals. For the purpose
of this definition, minority group members are:
(Check the block applicable to you)
[ ] Black Americans
[ ] Asian Pacific Americans
[ ] Hispanic Americans
[ ] Asian Indian Americans
[ ] Native Americans
[ ] Hasidic Jewish Americans
8.
Indian-Owned Economic Enterprise and Indian
Organization Representation (applicable only if this
solicitation is for a contract to be performed on a project for an
Indian Housing Authority)
The bidder represents and certifies that it:
(a) [ ] is, [ ] is not an Indian-owned economic enterprise.
"Economic enterprise," as used in this provision, means any com-
mercial, industrial, or business activity established or organized for
the purpose of profit, which is at least 51 percent Indian owned.
"Indian," as used in this provision, means any person who is a
member of any tribe, band, group, pueblo, or community which is
recognized by the Federal Government as eligible for services from
the Bureau of Indian Affairs and any "Native" as defined in the Alaska
Native Claims Settlement Act.
(b) [ ] is, [ ] is not an Indian organization. "Indian organization,"
as used in this provision, means the governing body of any Indian
tribe or entity established or recognized by such governing body.
Indian "tribe" means any Indian tribe, band, group, pueblo, or
(b) The bidder, by signing its bid, hereby certifies to the best of his
or her knowledge and belief as of December 23, 1989 that:
(1) No Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer
or employee of Congress, or an employee of a Member of Congress
on his or her behalf in connection with the awarding of a contract
resulting from this solicitation;
(2) If any funds other than Federal appropriated funds (includ-
ing profit or fee received under a covered Federal transaction) have
been paid, or will be paid, to any person for influencing or attempting
to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a
Member of Congress on his or her behalf in connection with this
solicitation, the bidder shall complete and submit, with its bid, OMB
standard form LLL, "Disclosure of Lobbying Activities;" and
(3) He or she will include the language of this certification in all
subcontracts at any tier and require that all recipients of subcontract
awards in excess of $100,000 shall certify and disclose accordingly.
(c) Submission of this certification and disclosure is a prerequisite
for making or entering into this contract imposed by section 1352,
title 31, United States Code. Any person who makes an expenditure
prohibited under this provision or who fails to file or amend the
disclosure form to be filed or amended by this provision, shall be
subject to a civil penalty of not less than $10,000, and not more than
$100,000, for each such failure.
(d) Indian tribes (except those chartered by States) and Indian
organizations as defined in section 4 of the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C. 450B) are exempt
from the requirements of this provision.
4.
Organizational Conflicts of Interest Certification
The bidder certifies that to the best of its knowledge and belief and
except as otherwise disclosed, he or she does not have any
organizational conflict of interest which is defined as a situation in
which the nature of work to be performed under this proposed
contract and the bidder's organizational, financial, contractual, or
other interests may, without some restriction on future activities:
(a) Result in an unfair competitive advantage to the bidder; or,
(b) Impair the bidder's objectivity in performing the contract work.
[ ]
In the absence of any actual or apparent conflict, I hereby certify
that to the best of my knowledge and belief, no actual or apparent
conflict of interest exists with regard to my possible performance of
this procurement.
5.
Bidder's Certification of Eligibility
(a) By the submission of this bid, the bidder certifies that to the best
of its knowledge and belief, neither it, nor any person or firm which
has an interest in the bidder's firm, nor any of the bidder's subcon-
tractors, is ineligible to:
(1) Be awarded contracts by any agency of the United States
Government, HUD, or the State in which this contract is to be
performed; or,
(2) Participate in HUD programs pursuant to 24 CFR Part 24.
(b) The certification in paragraph (a) above is a material represen-
tation of fact upon which reliance was placed when making award.
If it is later determined that the bidder knowingly rendered an
erroneous certification, the contract may be terminated for default,
and the bidder may be debarred or suspended from participation in
HUD programs and other Federal contract programs.
Page 2 of 3
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form HUD-5369-A (11/92)
Previous edition is obsolete
community including Native villages and Native groups (including
corporations organized by Kenai, Juneau, Sitka, and Kodiak) as
defined in the Alaska Native Claims Settlement Act, which is
recognized by the Federal Government as eligible for services from
the Bureau of Indian Affairs.
9.
Certification of Eligibility Under the Davis-Bacon
Act (applicable to construction contracts exceeding $2,000)
(a) By the submission of this bid, the bidder certifies that neither it
nor any person or firm who has an interest in the bidder's firm is a
person or firm ineligible to be awarded contracts by the United States
Government by virtue of section 3(a) of the Davis-Bacon Act or 29
CFR 5.12(a)(1).
(b) No part of the contract resulting from this solicitation shall be
subcontracted to any person or firm ineligible to be awarded
contracts by the United States Government by virtue of section 3(a)
of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
(c) The penalty for making false statements is prescribed in the U.
S. Criminal Code, 18 U.S.C. 1001.
10.
Certification of Nonsegregated Facilities (applicable
to contracts exceeding $10,000)
(a) The bidder's attention is called to the clause entitled Equal
Employment Opportunity of the General Conditions of the Con-
tract for Construction.
(b) "Segregated facilities," as used in this provision, means any
waiting rooms, work areas, rest rooms and wash rooms, restaurants
and other eating areas, time clocks, locker rooms and other storage
or dressing areas, parking lots, drinking fountains, recreation or
entertainment areas, transportation, and housing facilities provided
for employees, that are segregated by explicit directive or are in fact
segregated on the basis of race, color, religion, or national origin
because of habit, local custom, or otherwise.
(c) By the submission of this bid, the bidder certifies that it does not
and will not maintain or provide for its employees any segregated
facilities at any of its establishments, and that it does not and will not
permit its employees to perform their services at any location under
its control where segregated facilities are maintained. The bidder
agrees that a breach of this certification is a violation of the Equal
Employment Opportunity clause in the contract.
(d) The bidder further agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific
time periods) prior to entering into subcontracts which exceed
$10,000 and are not exempt from the requirements of the Equal
Employment Opportunity clause, it will:
(1) Obtain identical certifications from the proposed subcon-
tractors;
(2) Retain the certifications in its files; and
(3) Forward the following notice to the proposed subcontrac-
tors (except if the proposed subcontractors have submitted identical
certifications for specific time periods):
Notice to Prospective Subcontractors of Requirement for
Certifications of Nonsegregated Facilities
A Certification of Nonsegregated Facilities must be submitted before
the award of a subcontract exceeding $10,000 which is not exempt
from the provisions of the Equal Employment Opportunity clause of
the prime contract. The certification may be submitted either for
each subcontract or for all subcontracts during a period (i.e.,
quarterly, semiannually, or annually).
Note: The penalty for making false statements in bids is prescribed
in 18 U.S.C. 1001.
11.
Clean Air and Water Certification (applicable to con-
tracts exceeding $100,000)
The bidder certifies that:
(a) Any facility to be used in the performance of this contract [ ]
is, [ ] is not listed on the Environmental Protection Agency List of
Violating Facilities:
(b) The bidder will immediately notify the PHA/IHA Contracting
Officer, before award, of the receipt of any communication from the
Administrator, or a designee, of the Environmental Protection
Agency, indicating that any facility that the bidder proposes to use
for the performance of the contract is under consideration to be
listed on the EPA List of Violating Facilities; and,
(c) The bidder will include a certification substantially the same as
this certification, including this paragraph (c), in every nonexempt
subcontract.
12.
Previous Participation Certificate (applicable to
construction and equipment contracts exceeding $50,000)
(a) The bidder shall complete and submit with his/her bid the Form
HUD-2530, "Previous Participation Certificate." If the successful
bidder does not submit the certificate with his/her bid, he/she must
submit it within three (3) working days of bid opening. Failure to
submit the certificate by that date may render the bid nonresponsive.
No contract award will be made without a properly executed certifi-
cate.
(b) A fully executed "Previous Participation Certificate"
[ ] is, [ ] is not included with the bid.
13.
Bidder's Signature
The bidder hereby certifies that the information contained in these
certifications and representations is accurate, complete, and
current.
__________________________________________________________________
(Signature and Date)
__________________________________________________________________
(Typed or Printed Name)
__________________________________________________________________
(Title)
__________________________________________________________________
(Company Name)
(Company Address)
Page 3 of 3
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General Conditions for Construction
Public Housing Programs
U.S. Department of Housing and Urban
Contracts
Development
-
Office of Public and Indian Housing
OMB Approval No. 2577-0157 (exp. 1/31/2017)
Applicability. This form is applicable to any
construction/development contract greater than $100,000.
This form includes those clauses required by OMB's common rule on grantee procurement, implemented at HUD in 24 CFR 85.36, and
those requirements set forth in Section 3 of the Housing and Urban Development Act of 1968 and its amendment by the Housing and
Community Development Act of 1992, implemented by HUD at 24 CFR Part 135. The form is required for construction contracts
awarded by Public Housing Agencies (PHAs).
The form is used by Housing Authorities in solicitations to provide necessary contract clauses. If the form were not used, HAs would be
unable to enforce their contracts.
Public reporting burden for this collection of information is estimated to average 1.0 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection
of information. Responses to the collection of information are required to obtain a benefit or to retain a benefit.
The information requested does not lend itself to confidentiality.
HUD may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently
valid OMB number.
Table of Contents
Clause
Page
Clause
Page
1.
Definitions
2
Administrative Requirements
Construction Requirements
Contract Modifications
Previous editions are obsolete
Replaces form HUD-5370-A
Page 1 of 19
form HUD-5370 (8/2016)
Temporary Buildings and Transportation Materials
Clean Air and Water
2.
Contractor’s Responsibility for Work
2
25.
Contract Period
9
3.
Architect’s Duties, Responsibilities and Authority
2
26.
Order of Precedence
9
4.
Other Contracts
3
27.
Payments
9
5.
Preconstruction Conference and Notice to Proceed
3
29.
Changes
10
6.
Construction Progress Schedule
3
30.
Suspension of Work
11
7.
Site Investigation and Conditions Affecting the Work
3
31.
Disputes
11
8.
Differing Site Conditions
4
32.
Default
11
9.
Specifications and Drawings for Construction
4
33.
Liquidated
12
10.
As-Built Drawings
5
34.
Termination of Convenience
12
11.
Material and Workmanship
5
35.
Assignment of Contract
12
12.
Permits and Codes
5
36.
Insurance
12
13.
Health, Safety, and Accident Prevention
6
37.
Subcontracts
13
Subcontracting with Small and Minority Firms, Women’s
Business Enterprise, and Labor Surplus Area Firms
15.
Availability and Use of Utility Services
6
39.
Equal Employment Opportunity
13
Protection of Existing Vegetation, Structures,
Equipment, Utilities, and Improvements
6
Employment, Training, and Contracting Opportunities
for Low-Income Persons, Section 3 of the Housing and
Urban Development Act of 1968
17.
Temporary Buildings and Transportation Materials
7
41.
Interest of Members of Congress
15
Interest of Members, Officers, or Employees and Former
Members, Officers, or Employees
19.
Energy Efficiency
7
43.
Limitations on Payments Made to Influence
15
20.
Inspection and Acceptance of Construction
7
44.
Royalties and Patents
15
21.
Use and Possession Prior to
8
45.
Examination and Retention of Contractor’s Records
15
22.
Warranty of Title
8
46.
Labor Standards-Davis-Bacon and Related Acts
15
23.
Warranty of
8
47.
Non-Federal Prevailing Wage Rates
19
24.
Prohibition Against
9
48.
Procurement of Recovered
19
42.
7
14
15
13
40.
38.
6
18.
14.
16.
28.
10
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1. Definitions
(a) The Contractor shall furnish all necessary labor,
(a) “Architect” means the person or other entity engaged by
the PHA to perform architectural, engineering, design,
and other services related to the work as provided for in
the contract. When a PHA uses an engineer to act in this
capacity, the terms “architect” and “engineer” shall be
synonymous. The Architect shall serve as a technical
representative of the Contracting Officer. The Architect’s
materials, tools, equipment, and transportation necessary
for performance of the work. The Contractor shall also
furnish all necessary water, heat, light, and power not
made available to the Contractor by the PHA pursuant to
the clause entitled Availability and Use of Utility Services
herein.
(b) The Contractor shall perform on the site, and with its own
authority is as set forth elsewhere in this contract.
organization, work equivalent to at least [
] (12 percent
unless otherwise indicated) of the total amount of work to
be performed under the order. This percentage may be
reduced by a supplemental agreement to this order if,
during performing the work, the Contractor requests a
reduction and the Contracting Officer determines that the
(b) “Contract” means the contract entered into between the
PHA and the Contractor. It includes the forms of Bid, the
Bid Bond, the Performance and Payment Bond or Bonds
or other assurance of completion, the Certifications,
Representations, and Other Statements of Bidders (form
HUD-5370), these General Conditions of the Contract for
Construction (form HUD-5370), the applicable wage rate
determinations from the U.S. Department of Labor, any
special conditions included elsewhere in the contract, the
specifications, and drawings. It includes all formal
changes to any of those documents by addendum,
reduction would be to the advantage of the PHA.
(c) At all times during performance of this contract and until
the work is completed and accepted, the Contractor shall
directly superintend the work or assign and have on the
work site a competent superintendent who is satisfactory
to the Contracting Officer and has authority to act for the
Contractor.
change order, or other modification.
(d) The Contractor shall be responsible for all damages to
(c) “Contracting Officer” means the person delegated the au-
persons or property that occur as a result of the
Contractor’s fault or negligence, and shall take proper
thority by the PHA to enter into, administer, and/or
terminate this contract and designated as such in writing
to the Contractor. The term includes any successor
safety and health precautions to protect the work, the
workers, the public, and the property of others. The
Contractor shall hold and save the PHA, its officers and
agents, free and harmless from liability of any nature
occasioned by the Contractor’s performance. The
Contractor shall also be responsible for all materials
delivered and work performed until completion and
acceptance of the entire work, except for any completed
unit of work which may have been accepted under the
Contracting Officer and any duly authorized
representative of the Contracting Officer also designated
in writing. The Contracting Officer shall be deemed the
authorized agent of the PHA in all dealings with the
Contractor.
(d) “Contractor” means the person or other entity entering
into the contract with the PHA to perform all of the work
required under the contract.
contract.
(e) “Drawings” means the drawings enumerated in the
(e) The Contractor shall lay out the work from base lines and
schedule of drawings contained in the Specifications and
as described in the contract clause entitled Specifications
bench marks indicated on the drawings and be
responsible for all lines, levels, and measurements of all
work executed under the contract. The Contractor shall
verify the figures before laying out the work and will be
held responsible for any error resulting from its failure to
and Drawings for Construction herein.
(f) “HUD” means the United States of America acting through
the Department of Housing and Urban Development
including the Secretary, or any other person designated to
act on its behalf. HUD has agreed, subject to the
provisions of an Annual Contributions Contract (ACC), to
provide financial assistance to the PHA, which includes
assistance in financing the work to be performed under
this contract. As defined elsewhere in these General
Conditions or the contract documents, the determination
of HUD may be required to authorize changes in the work
or for release of funds to the PHA for payment to the
Contractor. Notwithstanding HUD’s role, nothing in this
contract shall be construed to create any contractual
do so.
(f) The Contractor shall confine all operations (including
storage of materials) on PHA premises to areas
authorized or approved by the Contracting Officer.
(g) The Contractor shall at all times keep the work area,
relationship between the Contractor and HUD.
including storage areas, free from accumulations of
waste materials. After completing the work and before
final inspection, the Contractor shall (1) remove from the
premises all scaffolding, equipment, tools, and materials
(including rejected materials) that are not the property of
the PHA and all rubbish caused by its work; (2) leave the
work area in a clean, neat, and orderly condition
satisfactory to the Contracting Officer; (3) perform all
specified tests; and, (4) deliver the installation in
(g) “Project” means the entire project, whether construction
or rehabilitation, the work for which is provided for in
whole or in part under this contract.
complete and operating condition.
(h) “PHA” means the Public Housing Agency organized
under applicable state laws which is a party to this
(h) The Contractor’s responsibility will terminate when all
contract.
work has been completed, the final inspection made, and
the work accepted by the Contracting Officer. The
Contractor will then be released from further obligation
except as required by the warranties specified elsewhere
in the contract.
(j) “Specifications” means the written description of the
technical requirements for construction and includes the
criteria and tests for determining whether the
requirements are met.
(l) “Work” means materials, workmanship, and manufacture
and fabrication of components.
3. Architect’s Duties, Responsibilities, and Authority
2. Contractor’s Responsibility for Work
(a) The Architect for this contract, and any successor, shall
be designated in writing by the Contracting Officer.
Previous editions are obsolete
Replaces form HUD-5370-A
Page 2 of 19
form HUD-5370 (8/2016)
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(b) The Architect shall serve as the Contracting Officer’s
technical representative with respect to architectural,
engineering, and design matters related to the work
performed under the contract. The Architect may provide
direction on contract performance. Such direction shall be
within the scope of the contract and may not be of a
nature which: (1) institutes additional work outside the
scope of the contract; (2) constitutes a change as defined
in the Changes clause herein; (3) causes an increase or
decrease in the cost of the contract; (4) alters the
Construction Progress Schedule; or (5) changes any of
the other express terms or conditions of the contract.
6. Construction Progress Schedule
(a) The Contractor shall, within five days after the work
(c) The Architect’s duties and responsibilities may include but
commences on the contract or another period of time
determined by the Contracting Officer, prepare and
submit to the Contracting Officer for approval three copies
of a practicable schedule showing the order in which the
Contractor proposes to perform the work, and the dates
on which the Contractor contemplates starting and
completing the several salient features of the work
(including acquiring labor, materials, and equipment). The
schedule shall be in the form of a progress chart of
suitable scale to indicate appropriately the percentage of
work scheduled for completion by any given date during
the period. If the Contractor fails to submit a schedule
within the time prescribed, the Contracting Officer may
withhold approval of progress payments or take other
remedies under the contract until the Contractor submits
shall not be limited to:
(1) Making periodic visits to the work site, and on the
basis of his/her on-site inspections, issuing written
reports to the PHA which shall include all observed
deficiencies. The Architect shall file a copy of the
report with the Contractor’s designated representative
at the site;
the required schedule.
(2) Making modifications in drawings and technical
(b) The Contractor shall enter the actual progress on the
chart as required by the Contracting Officer, and
immediately deliver three copies of the annotated
schedule to the Contracting Officer. If the Contracting
Officer determines, upon the basis of inspection
conducted pursuant to the clause entitled Inspection and
Acceptance of Construction, herein that the Contractor is
not meeting the approved schedule, the Contractor shall
take steps necessary to improve its progress, including
those that may be required by the Contracting Officer,
without additional cost to the PHA. In this circumstance,
the Contracting Officer may require the Contractor to
increase the number of shifts, overtime operations, days
of work, and/or the amount of construction plant, and to
submit for approval any supplementary schedule or
schedules in chart form as the Contracting Officer deems
necessary to demonstrate how the approved rate of
specifications and assisting the Contracting Officer in
the preparation of change orders and other contract
modifications for issuance by the Contracting Officer;
(3) Reviewing and making recommendations with respect
to - (i) the Contractor’s construction progress
schedules; (ii) the Contractor’s shop and detailed
drawings; (iii) the machinery, mechanical and other
equipment and materials or other articles proposed
for use by the Contractor; and, (iv) the Contractor’s
price breakdown and progress payment estimates;
and,
(4) Assisting in inspections, signing Certificates of
Completion, and making recommendations with
respect to acceptance of work completed under the
contract.
4. Other Contracts
progress will be regained.
The PHA may undertake or award other contracts for
additional work at or near the site of the work under this
contract. The Contractor shall fully cooperate with the
other contractors and with PHA employees and shall
carefully adapt scheduling and performing the work under
this contract to accommodate the additional work, heeding
any direction that may be provided by the Contracting
Officer. The Contractor shall not commit or permit any act
that will interfere with the performance of work by any
other contractor or by PHA employees
(c) Failure of the Contractor to comply with the requirements
of the Contracting Officer under this clause shall be
grounds for a determination by the Contracting Officer that
the Contractor is not prosecuting the work with sufficient
diligence to ensure completion within the time
specified in the Contract. Upon making this
determination, the Contracting Officer may terminate the
Contractor’s right to proceed with the work, or any
separable part of it, in accordance with the Default clause
of this contract.
7. Site Investigation and Conditions Affecting the Work
Construction Requirements
5. Pre-construction Conference and Notice to Proceed
(a) The Contractor acknowledges that it has taken steps
reasonably necessary to ascertain the nature and location
of the work, and that it has investigated and satisfied itself
as to the general and local conditions which can affect the
work or its cost, including but not limited to, (1) conditions
bearing upon transportation, disposal, handling, and
storage of materials; (2) the availability of labor, water,
electric power, and roads;(3) uncertainties of weather,
river stages, tides, or similar physical conditions at the
site; (4) the conformation and conditions of the ground;
and (5) the character of equipment and facilities needed
preliminary to and during work performance. The
Contractor also acknowledges that it has satisfied itself as
to the character, quality, and quantity of surface and
subsurface materials or obstacles to be encountered
insofar as this information is
(a) Within ten calendar days of contract execution, and prior
to the commencement of work, the Contractor shall
attend a preconstruction conference with representatives
of the PHA, its Architect, and other interested parties
convened by the PHA. The conference will serve to
acquaint the participants with the general plan of the
construction operation and all other requirements of the
contract. The PHA will provide the Contractor with the
date, time, and place of the conference.
(b) The contractor shall begin work upon receipt of a written
Notice to Proceed from the Contracting Officer or
designee. The Contractor shall not begin work prior to
receiving such notice.
Previous editions are obsolete
Replaces form HUD-5370-A
Page 3 of 19
form HUD-5370 (8/2016)
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reasonably ascertainable from an inspection of the site,
including all exploratory work done by the PHA, as well
as from the drawings and specifications made a part of
this contract. Any failure of the Contractor to take the
actions described and acknowledged in this paragraph
will not relieve the Contractor from responsibility for
estimating properly the difficulty and cost of successfully
performing the work, or for proceeding to successfully
promptly submitted to the Contracting Officer, who shall
promptly make a determination in writing. Any adjustment
by the Contractor without such a determination shall be at
its own risk and expense. The Contracting Officer shall
furnish from time to time such detailed drawings and other
information as considered necessary, unless
otherwise provided.
perform the work without additional expense to the PHA.
(b) Wherever in the specifications or upon the drawings the
words “directed”, “required”, “ordered”, “designated”,
“prescribed”, or words of like import are used, it shall be
(b) The PHA assumes no responsibility for any conclusions
or interpretations made by the Contractor based on the
information made available by the PHA. Nor does the
PHA assume responsibility for any understanding
reached or representation made concerning conditions
which can affect the work by any of its officers or agents
before the execution of this contract, unless that
understanding or representation is expressly stated in
this contract.
understood that the “direction”, “requirement”, “order”,
“designation”, or “prescription”, of the Contracting Officer
is intended and similarly the words “approved”,
“acceptable”, “satisfactory”, or words of like import shall
mean “approved by”, or “acceptable to”, or “satisfactory
to” the Contracting Officer, unless otherwise expressly
stated.
(c) Where “ shown” “ indicated”, as detailed”, or words
as
,as
8. Differing Site Conditions
of similar import are used, it shall be understood that the
reference is made to the drawings accompanying this
contract unless stated otherwise. The word “provided” as
used herein shall be understood to mean “provide
complete in place” that is “furnished and installed”.
(a) The Contractor shall promptly, and before the conditions
are disturbed, give a written notice to the Contracting
Officer of (1) subsurface or latent physical conditions at
the site which differ materially from those indicated in this
contract, or (2) unknown physical conditions at the
site(s), of an unusual nature, which differ materially from
those ordinarily encountered and generally recognized as
inhering in work of the character provided for in the
(d) “Shop drawings” means drawings, submitted to the PHA
contract.
by the Contractor, subcontractor, or any lower tier
subcontractor, showing in detail (1) the proposed
fabrication and assembly of structural elements and (2)
the installation (i.e., form, fit, and attachment details) of
materials of equipment. It includes drawings, diagrams,
layouts, schematics, descriptive literature, illustrations,
schedules, performance and test data, and similar
materials furnished by the Contractor to explain in detail
specific portions of the work required by the contract. The
PHA may duplicate, use, and disclose in any manner and
for any purpose shop drawings delivered under this
(b) The Contracting Officer shall investigate the site
conditions promptly after receiving the notice. Work shall
not proceed at the affected site, except at the
Contractor’s risk, until the Contracting Officer has
provided written instructions to the Contractor. If the
conditions do materially so differ and cause an increase
or decrease in the Contractor’s cost of, or the time
required for, performing any part of the work under this
contract, whether or not changed as a result of the
conditions, the Contractor shall file a claim in writing to
the PHA within ten days after receipt of such instructions
and, in any event, before proceeding with the work. An
equitable adjustment in the contract price, the delivery
schedule, or both shall be made under this clause and
contract.
(e) If this contract requires shop drawings, the Contractor
the contract modified in writing accordingly.
shall coordinate all such drawings, and review them for
accuracy, completeness, and compliance with other
contract requirements and shall indicate its approval
thereon as evidence of such coordination and review.
Shop drawings submitted to the Contracting Officer
without evidence of the Contractor’s approval may be
returned for resubmission. The Contracting Officer will
indicate an approval or disapproval of the shop drawings
and if not approved as submitted shall indicate the PHA’s
reasons therefore. Any work done before such approval
shall be at the Contractor’s risk. Approval by the
Contracting Officer shall not relieve the Contractor from
responsibility for any errors or omissions in such
drawings, nor from responsibility for complying with the
requirements of this contract, except with respect to
variations described and approved in accordance with (f)
(c) No request by the Contractor for an equitable adjustment
to the contract under this clause shall be allowed, unless
the Contractor has given the written notice required;
provided, that the time prescribed in (a) above for giving
written notice may be extended by the Contracting
Officer.
(d) No request by the Contractor for an equitable adjustment
to the contract for differing site conditions shall be
allowed if made after final payment under this contract.
below.
9. Specifications and Drawings for Construction
(f) If shop drawings show variations from the contract
requirements, the Contractor shall describe such
variations in writing, separate from the drawings, at the
time of submission. If the Architect approves any such
variation and the Contracting Officer concurs, the
(a) The Contractor shall keep on the work site a copy of the
drawings and specifications and shall at all times give the
Contracting Officer access thereto. Anything mentioned
in the specifications and not shown on the drawings, or
shown on the drawings and not mentioned in the
specifications, shall be of like effect as if shown or
mentioned in both. In case of difference between
drawings and specifications, the specifications shall
govern. In case of discrepancy in the figures, in the
drawings, or in the specifications, the matter shall be
Contracting Officer shall issue an appropriate
modification to the contract, except that, if the variation is
minor or does not involve a change in price or in time of
performance, a modification need not be issued.
(g) It shall be the responsibility of the Contractor to make
timely requests of the PHA for such large scale and full
size drawings, color schemes, and other additional
information, not already in his possession, which shall be
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required in the planning and production of the work. Such
requests may be submitted as the need arises, but each
such request shall be filed in ample time to permit
appropriate action to be taken by all parties involved so
machinery and mechanical and other equipment.
When required by this contract or by the Contracting
Officer, the Contractor shall also obtain the
Contracting Officer’s approval of the material or
articles which the Contractor contemplates
incorporating into the work. When requesting
approval, the Contractor shall provide full information
concerning the material or articles. Machinery,
equipment, material, and articles that do not have the
required approval shall be installed or used at the risk
as to avoid delay.
(h) The Contractor shall submit to the Contracting Officer for
approval four copies (unless otherwise indicated) of all
shop drawings as called for under the various headings
of these specifications. Three sets (unless otherwise
indicated) of all shop drawings, will be retained by the
PHA and one set will be returned to the Contractor. As
required by the Contracting Officer, the Contractor, upon
completing the work under this contract, shall furnish a
complete set of all shop drawings as finally approved.
These drawings shall show all changes and revisions
of subsequent rejection.
(2) When required by the specifications or the
Contracting Officer, the Contractor shall submit
appropriately marked samples (and certificates
related to them) for approval at the Contractor’s
made up to the time the work is completed and accepted.
expense, with all shipping charges prepaid. The
Contractor shall label, or otherwise properly mark on
the container, the material or product represented, its
place of origin, the name of the producer, the
Contractor’s name, and the identification of the
construction project for which the material or product
(i) This clause shall be included in all subcontracts at any tier.
It shall be the responsibility of the Contractor to ensure
that all shop drawings prepared by subcontractors are
submitted to the Contracting Officer.
10. As-Built Drawings
is intended to be used.
(a) “As-built drawings,” as used in this clause, means
(3) Certificates shall be submitted in triplicate, describing
each sample submitted for approval and certifying
that the material, equipment or accessory complies
with contract requirements. The certificates shall
include the name and brand of the product, name of
manufacturer, and the location where produced.
drawings submitted by the Contractor or subcontractor at
any tier to show the construction of a particular structure
or work as actually completed under the contract. “As-built
drawings” shall be synonymous with “Record
drawings.”
(4) Approval of a sample shall not constitute a waiver of
(b) As required by the Contracting Officer, the Contractor
the PHA right to demand full compliance with contract
requirements. Materials, equipment and accessories
may be rejected for cause even though samples have
shall provide the Contracting Officer accurate information
to be used in the preparation of permanent as-built
drawings. For this purpose, the Contractor shall record on
one set of contract drawings all changes from the
installations originally indicated, and record final locations
of underground lines by depth from finish grade and by
accurate horizontal offset distances to permanent surface
improvements such as buildings, curbs, or edges of
been approved.
walks.
(5) Wherever materials are required to comply with
recognized standards or specifications, such
specifications shall be accepted as establishing the
technical qualities and testing methods, but shall not
govern the number of tests required to be made nor
modify other contract requirements. The Contracting
Officer may require laboratory test reports on items
submitted for approval or may approve materials on
the basis of data submitted in certificates with
samples. Check tests will be made on materials
delivered for use only as frequently as the Contracting
Officer determines necessary to insure compliance of
materials with the specifications. The Contractor will
assume all costs of retesting materials which fail to
meet contract requirements and/or testing materials
offered in substitution for those found deficient.
(c) This clause shall be included in all subcontracts at any
tier. It shall be the responsibility of the Contractor to
ensure that all as-built drawings prepared by
subcontractors are submitted to the Contracting Officer.
11. Material and Workmanship
(a) All equipment, material, and articles furnished under this
contract shall be new and of the most suitable grade for
the purpose intended, unless otherwise specifically
provided in this contract. References in the contract to
equipment, material, articles, or patented processes by
trade name, make, or catalog number, shall be regarded
as establishing a standard of quality and shall not be
construed as limiting competition. The Contractor may, at
its option, use any equipment, material, article, or
process that, in the judgment of, and as approved by the
Contracting Officer, is equal to that named in the
specifications, unless otherwise specifically provided in
(6) After approval, samples will be kept in the Project
office until completion of work. They may be built into
the work after a substantial quantity of the materials
they represent has been built in and accepted.
(c) Requirements concerning lead-based paint. The
Contractor shall comply with the requirements concerning
lead-based paint contained in the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C. 4821-4846) as
implemented by 24 CFR Part 35.
this contract.
(b) Approval of equipment and materials.
12. Permits and Codes
(1) The Contractor shall obtain the Contracting Officer’s
approval of the machinery and mechanical and other
equipment to be incorporated into the work. When
requesting approval, the Contractor shall furnish to the
Contracting Officer the name of the manufacturer, the
model number, and other information concerning the
performance, capacity, nature, and rating of the
(a) The Contractor shall give all notices and comply with all
applicable laws, ordinances, codes, rules and regulations.
Notwithstanding the requirement of the Contractor to
comply with the drawings and specifications in the
contract, all work installed shall comply with all applicable
codes and regulations as amended by any
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waivers. Before installing the work, the Contractor shall
examine the drawings and the specifications for
compliance with applicable codes and regulations
bearing on the work and shall immediately report any
discrepancy it may discover to the Contracting Officer.
14. Temporary Heating
Where the requirements of the drawings and
The Contractor shall provide and pay for temporary
heating, covering, and enclosures necessary to properly
protect all work and materials against damage by
dampness and cold, to dry out the work, and to facilitate
the completion of the work. Any permanent heating
equipment used shall be turned over to the PHA in the
condition and at the time required by the specifications.
specifications fail to comply with the applicable code or
regulation, the Contracting Officer shall modify the
contract by change order pursuant to the clause entitled
Changes herein to conform to the code or regulation.
(b) The Contractor shall secure and pay for all permits, fees,
and licenses necessary for the proper execution and
completion of the work. Where the PHA can arrange for
the issuance of all or part of these permits, fees and
licenses, without cost to the Contractor, the contract
amount shall be reduced accordingly.
15. Availability and Use of Utility Services
(a) The PHA shall make all reasonably required amounts of
13. Health, Safety, and Accident Prevention
utilities available to the Contractor from existing outlets
and supplies, as specified in the contract. Unless
otherwise provided in the contract, the amount of each
utility service consumed shall be charged to or paid for by
the Contractor at prevailing rates charged to the PHA or,
where the utility is produced by the PHA, at reasonable
rates determined by the Contracting Officer. The
Contractor shall carefully conserve any utilities furnished
(a) In performing this contract, the Contractor shall:
(1) Ensure that no laborer or mechanic shall be required
to work in surroundings or under working conditions
which are unsanitary, hazardous, or dangerous to
his/her health and/or safety as determined under
construction safety and health standards promulgated
without charge.
(b) The Contractor, at its expense and in a manner
by the Secretary of Labor by regulation;
satisfactory to the Contracting Officer, shall install and
maintain all necessary temporary connections and
distribution lines, and all meters required to measure the
amount of each utility used for the purpose of
determining charges. Before final acceptance of the work
by the PHA, the Contractor shall remove all the
temporary connections, distribution lines, meters, and
associated paraphernalia.
(2) Protect the lives, health, and safety of other persons;
(3) Prevent damage to property, materials, supplies, and
equipment; and,
(4) Avoid work interruptions.
(b) For these purposes, the Contractor shall:
(1) Comply with regulations and standards issued by the
Secretary of Labor at 29 CFR Part 1926. Failure to
comply may result in imposition of sanctions pursuant
to the Contract Work Hours and Safety Standards Act
(Public Law 91-54, 83 Stat. 96), 40 U.S.C. 3701 et
16. Protection of Existing Vegetation, Structures,
Equipment, Utilities, and Improvements
seq.; and
(a) The Contractor shall preserve and protect all structures,
(2) Include the terms of this clause in every subcontract
equipment, and vegetation (such as trees, shrubs, and
grass) on or adjacent to the work site, which are not to be
removed under this contract, and which do not
unreasonably interfere with the work required under this
so that such terms will be binding on each
subcontractor.
(c) The Contractor shall maintain an accurate record of
exposure data on all accidents incident to work performed
under this contract resulting in death, traumatic injury,
occupational disease, or damage to property, materials,
supplies, or equipment, and shall report this data in the
manner prescribed by 29 CFR Part
contract.
(b) The Contractor shall only remove trees when specifically
1904.
authorized to do so, and shall avoid damaging vegetation
that will remain in place. If any limbs or branches of trees
are broken during performance of this contract, or by the
careless operation of equipment, or by workmen, the
Contractor shall trim those limbs or branches with a clean
cut and paint the cut with a tree-pruning compound as
(d) The Contracting Officer shall notify the Contractor of any
noncompliance with these requirements and of the
corrective action required. This notice, when delivered to
the Contractor or the Contractor’s representative at the
site of the work, shall be deemed sufficient notice of the
noncompliance and corrective action required. After
receiving the notice, the Contractor shall immediately
take corrective action. If the Contractor fails or refuses to
take corrective action promptly, the Contracting Officer
may issue an order stopping all or part of the work until
satisfactory corrective action has been taken. The
Contractor shall not base any claim or request for
equitable adjustment for additional time or money on any
directed by the Contracting Officer.
(c) The Contractor shall protect from damage all existing
improvements and utilities (1) at or near the work site and
(2) on adjacent property of a third party, the locations of
which are made known to or should be known by the
Contractor. Prior to disturbing the ground at the
construction site, the Contractor shall ensure that all
underground utility lines are clearly marked.
(d) The Contractor shall shore up, brace, underpin, secure,
stop order issued under these circumstances.
and protect as necessary all foundations and other parts
of existing structures adjacent to, adjoining, and in the
vicinity of the site, which may be affected by the
excavations or other operations connected with the
(e) The Contractor shall be responsible for its subcontractors’
compliance with the provisions of this clause. The
Contractor shall take such action with respect to any
subcontract as the PHA, the Secretary of Housing and
Urban Development, or the Secretary of Labor shall
direct as a means of enforcing such provisions.
construction of the project.
(e) Any equipment temporarily removed as a result of work
under this contract shall be protected, cleaned, and
replaced in the same condition as at the time of award of
this contract.
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(f) New work which connects to existing work shall
The contactor shall comply with the Clean Air Act, as
amended, 42 USC 7401 et seq., the Federal Water
Pollution Control Water Act, as amended, 33 U.S.C. 1251
et seq., and standards issued pursuant thereto in the
facilities in which this contract is to be performed.
correspond in all respects with that to which it connects
and/or be similar to existing work unless otherwise
required by the specifications.
(g) No structural members shall be altered or in any way
weakened without the written authorization of the
Contracting Officer, unless such work is clearly specified
19. Energy Efficiency
in the plans or specifications.
(h) If the removal of the existing work exposes discolored or
unfinished surfaces, or work out of alignment, such
surfaces shall be refinished, or the material replaced as
necessary to make the continuous work uniform and
harmonious. This, however, shall not be construed to
require the refinishing or reconstruction of dissimilar
finishes previously exposed, or finished surfaces in good
condition, but in different planes or on different levels
when brought together by the removal of intervening
work, unless such refinishing or reconstruction is
The Contractor shall comply with mandatory standards
and policies relating to energy efficiency which are
contained in the energy conservation plan issued in
compliance with the Energy Policy and Conservation Act
(Pub.L. 94-163) for the State in which the work under the
contract is performed.
20. Inspection and Acceptance of Construction
(a) Definitions. As used in this clause -
specified in the plans or specifications.
(1) “Acceptance” means the act of an authorized
representative of the PHA by which the PHA approves
and assumes ownership of the work performed under this
contract. Acceptance may be partial or complete.
(2) “Inspection” means examining and testing the work
(i) The Contractor shall give all required notices to any
adjoining or adjacent property owner or other party before
the commencement of any work.
(j) The Contractor shall indemnify and save harmless the
PHA from any damages on account of settlement or the
loss of lateral support of adjoining property, any damages
from changes in topography affecting drainage, and from
all loss or expense and all damages for which the PHA
may become liable in consequence of such injury or
damage to adjoining and adjacent structures and their
performed under the contract (including, when
appropriate, raw materials, equipment, components, and
intermediate assemblies) to determine whether it
conforms to contract requirements.
premises.
(3) “Testing” means that element of inspection that
determines the properties or elements, including
functional operation of materials, equipment, or their
components, by the application of established scientific
(k) The Contractor shall repair any damage to vegetation,
structures, equipment, utilities, or improvements,
including those that are the property of a third party,
resulting from failure to comply with the requirements of
this contract or failure to exercise reasonable care in
performing the work. If the Contractor fails or refuses to
repair the damage promptly, the Contracting Officer may
have the necessary work performed and charge the cost
to the Contractor.
principles and procedures.
(b) The Contractor shall maintain an adequate inspection
system and perform such inspections as will ensure that
the work performed under the contract conforms to
contract requirements. All work is subject to PHA
inspection and test at all places and at all reasonable
times before acceptance to ensure strict compliance with
the terms of the contract.
(c) PHA inspections and tests are for the sole benefit of the
17. Temporary Buildings and Transportation of Materials
PHA and do not: (1) relieve the Contractor of
responsibility for providing adequate quality control
measures; (2) relieve the Contractor of responsibility for
loss or damage of the material before acceptance; (3)
constitute or imply acceptance; or, (4) affect the
continuing rights of the PHA after acceptance of the
(a) Temporary buildings (e.g., storage sheds, shops, offices,
sanitary facilities) and utilities may be erected by the
Contractor only with the approval of the Contracting
Officer and shall be built with labor and materials
furnished by the Contractor without expense to the PHA.
The temporary buildings and utilities shall remain the
property of the Contractor and shall be removed by the
Contractor at its expense upon completion of the work.
With the written consent of the Contracting Officer, the
buildings and utilities may be abandoned and need not
completed work under paragraph (j) below.
(d) The presence or absence of the PHA inspector does not
relieve the Contractor from any contract requirement, nor
is the inspector authorized to change any term or
condition of the specifications without the Contracting
Officer’s written authorization. All instructions and
be removed.
approvals with respect to the work shall be given to the
(b) The Contractor shall, as directed by the Contracting
Contractor by the Contracting Officer.
Officer, use only established roadways, or use temporary
roadways constructed by the Contractor when and as
authorized by the Contracting Officer. When materials are
transported in prosecuting the work, vehicles shall not be
loaded beyond the loading capacity recommended by the
manufacturer of the vehicle or prescribed by any federal,
state, or local law or regulation. When it is necessary to
cross curbs or sidewalks, the Contractor shall protect them
from damage. The Contractor shall repair or pay for the
repair of any damaged curbs, sidewalks, or roads.
(e) The Contractor shall promptly furnish, without additional
charge, all facilities, labor, and material reasonably
needed for performing such safe and convenient
inspections and tests as may be required by the
Contracting Officer. The PHA may charge to the
Contractor any additional cost of inspection or test when
work is not ready at the time specified by the Contractor
for inspection or test, or when prior rejection makes
reinspection or retest necessary. The PHA shall perform
all inspections and tests in a manner that will not
unnecessarily delay the work. Special, full size, and
performance tests shall be performed as described in the
contract.
18. Clean Air and Water
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(f) The PHA may conduct routine inspections of the
occupied without proper remuneration therefore. If prior
possession or use by the PHA delays the progress of the
work or causes additional expense to the Contractor, an
equitable adjustment shall be made in the contract price
or the time of completion, and the contract shall be
modified in writing accordingly.
construction site on a daily basis.
(g) The Contractor shall, without charge, replace or correct
work found by the PHA not to conform to contract
requirements, unless the PHA decides that it is in its
interest to accept the work with an appropriate
adjustment in contract price. The Contractor shall
promptly segregate and remove rejected material from
22. Warranty of Title
the premises.
(h) If the Contractor does not promptly replace or correct
The Contractor warrants good title to all materials,
supplies, and equipment incorporated in the work and
agrees to deliver the premises together with all
improvements thereon free from any claims, liens or
charges, and agrees further that neither it nor any other
person, firm or corporation shall have any right to a lien
upon the premises or anything appurtenant thereto.
rejected work, the PHA may (1) by contract or otherwise,
replace or correct the work and charge the cost to the
Contractor, or (2) terminate for default the Contractor’s
right to proceed.
(i) If any work requiring inspection is covered up without ap-
proval of the PHA, it must, if requested by the Contracting
Officer, be uncovered at the expense of the Contractor. If
at any time before final acceptance of the entire work, the
PHA considers it necessary or advisable, to examine
work already completed by removing or tearing it out, the
Contractor, shall on request, promptly furnish all
necessary facilities, labor, and material. If such work is
found to be defective or nonconforming in any material
respect due to the fault of the Contractor or its
subcontractors, the Contractor shall defray all the
expenses of the examination and of satisfactory
reconstruction. If, however, such work is found to meet
the requirements of the contract, the Contracting Officer
shall make an equitable adjustment to cover the cost of
the examination and reconstruction, including, if
completion of the work was thereby delayed, an
23. Warranty of Construction
(a) In addition to any other warranties in this contract, the
Contractor warrants, except as provided in paragraph (j)
of this clause, that work performed under this contract
conforms to the contract requirements and is free of any
defect in equipment, material, or workmanship performed
by the Contractor or any subcontractor or supplier at any
tier. This warranty shall continue for a period of
(one year unless otherwise indicated) from the date of final
acceptance of the work. If the PHA takes possession of
any part of the work before final acceptance, this warranty
shall continue for a period of (one year unless otherwise
indicated) from the date that the PHA takes
extension of time.
possession.
(j) The Contractor shall notify the Contracting Officer, in
(b) The Contractor shall remedy, at the Contractor’s
writing, as to the date when in its opinion all or a
designated portion of the work will be substantially
completed and ready for inspection. If the Architect
determines that the state of preparedness is as
represented, the PHA will promptly arrange for the
inspection. Unless otherwise specified in the contract, the
PHA shall accept, as soon as practicable after completion
and inspection, all work required by the contract or that
portion of the work the Contracting Officer determines and
designates can be accepted separately. Acceptance shall
be final and conclusive except for latent defects, fraud,
gross mistakes amounting to fraud, or the PHA’s right
under any warranty or guarantee.
expense, any failure to conform, or any defect. In
addition, the Contractor shall remedy, at the Contractor’s
expense, any damage to PHA-owned or controlled real or
personal property when the damage is the result of—
(1) The Contractor’s failure to conform to contract require-
ments; or
(2) Any defects of equipment, material, workmanship or
design furnished by the Contractor.
(c) The Contractor shall restore any work damaged in
fulfilling the terms and conditions of this clause. The
Contractor’s warranty with respect to work repaired or
replaced will run for (one year unless otherwise indicated)
from the date of repair or replacement.
(d) The Contracting Officer shall notify the Contractor, in
21. Use and Possession Prior to Completion
writing, within a reasonable time after the discovery of
any failure, defect or damage.
(a) The PHA shall have the right to take possession of or use
any completed or partially completed part of the work.
Before taking possession of or using any work, the
Contracting Officer shall furnish the Contractor a list of
items of work remaining to be performed or corrected on
those portions of the work that the PHA intends to take
possession of or use. However, failure of the Contracting
Officer to list any item of work shall not relieve the
Contractor of responsibility for complying with the terms of
the contract. The PHA’s possession or use shall not be
(e) If the Contractor fails to remedy any failure, defect, or
damage within a reasonable time after receipt of notice,
the PHA shall have the right to replace, repair or
otherwise remedy the failure, defect, or damage at the
Contractor’s expense.
(f) With respect to all warranties, express or implied, from
subcontractors, manufacturers, or suppliers for work
performed and materials furnished under this contract,
the Contractor shall:
(1) Obtain all warranties that would be given in normal
deemed an acceptance of any work under the contract.
commercial practice;
(b) While the PHA has such possession or use, the
(2) Require all warranties to be executed in writing, for the
Contractor shall be relieved of the responsibility for (1) the
loss of or damage to the work resulting from the PHA’s
possession or use, notwithstanding the terms of the
clause entitled Permits and Codes herein; (2) all
maintenance costs on the areas occupied; and, (3)
furnishing heat, light, power, and water used in the areas
benefit of the PHA; and,
(3) Enforce all warranties for the benefit of the PHA.
(g) In the event the Contractor’s warranty under paragraph
(a) of this clause has expired, the PHA may bring suit at
its own expense to enforce a subcontractor’s,
manufacturer’s or supplier’s warranty.
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(h) Unless a defect is caused by the negligence of the
basis for determining progress payments. The breakdown
shall be approved by the Contracting Officer and must be
acceptable to HUD. If the contract covers more than one
Contractor or subcontractor or supplier at any tier, the
Contractor shall not be liable for the repair of any defect of
material or design furnished by the PHA nor for the repair
of any damage that results from any defect in PHA
project, the Contractor shall furnish a separate
furnished material or design.
breakdown for each. The values and quantities employed
in making up this breakdown are for determining the
amount of progress payments and shall not be construed
as a basis for additions to or deductions from the contract
price. The Contractor shall prorate its overhead and profit
(i) Notwithstanding any provisions herein to the contrary, the
establishment of the time periods in paragraphs (a) and
(c) above relate only to the specific obligation of the
Contractor to correct the work, and have no relationship
to the time within which its obligation to comply with the
contract may be sought to be enforced, nor to the time
within which proceedings may be commenced to
establish the Contractor’s liability with respect to its
obligation other than specifically to correct the work.
over the construction period of the contract.
(d) The Contractor shall submit, on forms provided by the
PHA, periodic estimates showing the value of the work
performed during each period based upon the approved
submitted not later than
days in advance of
(j) This warranty shall not limit the PHA’s rights under the
the date set for payment and are subject to correction and
revision as required. The estimates must be approved by
the Contracting Officer with the concurrence of the
Architect prior to payment. If the contract covers more
than one project, the Contractor shall furnish a
Inspection and Acceptance of Construction clause of this
contract with respect to latent defects, gross mistakes or
fraud.
24. Prohibition Against Liens
separate progress payment estimate for each.
The Contractor is prohibited from placing a lien on the
PHA’s property. This prohibition shall apply to all
subcontractors at any tier and all materials suppliers.
(e) Along with each request for progress payments and the
required estimates, the Contractor shall furnish the
following certification, or payment shall not be made: I
hereby certify, to the best of my knowledge and belief,
that:
Administrative Requirements
(1) The amounts requested are only for performance in
accordance with the specifications, terms, and
25. Contract Period
conditions of the contract;
(2) Payments to subcontractors and suppliers have been
made from previous payments received under the
contract, and timely payments will be made from the
proceeds of the payment covered by this certification,
in accordance with subcontract agreements; and,
this contract within
calendar days of the
effective date of the contract, or within the time schedule
established in the notice to proceed issued by the
Contracting Officer.
(3) This request for progress payments does not include
26. Order of Provisions
any amounts which the prime contractor intends to
withhold or retain from a subcontractor or supplier in
accordance with the terms and conditions of the
subcontract.
In the event of a conflict between these General
Conditions and the Specifications, the General
Conditions shall prevail. In the event of a conflict between
the contract and any applicable state or local law or
regulation, the state or local law or regulation shall
prevail; provided that such state or local law or regulation
does not conflict with, or is less restrictive than applicable
federal law, regulation, or Executive Order. In the event of
such a conflict, applicable federal law, regulation, and
Executive Order shall prevail.
Name:
Title:
Date:
27. Payments
(f) Except as otherwise provided in State law, the PHA shall
(a) The PHA shall pay the Contractor the price as provided in
retain ten (10) percent of the amount of progress
payments until completion and acceptance of all work
under the contract; except, that if upon completion of 50
percent of the work, the Contracting Officer, after
consulting with the Architect, determines that the
Contractor’s performance and progress are satisfactory,
this contract.
(b) The PHA shall make progress payments approximately
every 30 days as the work proceeds, on estimates of
work accomplished which meets the standards of quality
established under the contract, as approved by the
Contracting Officer. The PHA may, subject to written
determination and approval of the Contracting Officer,
make more frequent payments to contractors which are
the PHA may make the remaining payments in full for the
work subsequently completed. If the Contracting Officer
subsequently determines that the Contractor’s
performance and progress are unsatisfactory, the PHA
shall reinstate the ten (10) percent (or other percentage
as provided in State law) retainage until such time as the
Contracting Officer determines that performance and
qualified small businesses.
(c) Before the first progress payment under this contract, the
Contractor shall furnish, in such detail as requested by
the Contracting Officer, a breakdown of the total contract
price showing the amount included therein for each
principal category of the work, which shall substantiate
the payment amount requested in order to provide a
progress are satisfactory.
(g) The Contracting Officer may authorize material delivered
on the site and preparatory work done to be taken into
consideration when computing progress payments.
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Material delivered to the Contractor at locations other than
the site may also be taken into consideration if the
Contractor furnishes satisfactory evidence that (1) it has
acquired title to such material; (2) the material is properly
stored in a bonded warehouse, storage yard, or similar
suitable place as may be approved by the Contracting
Officer; (3) the material is insured to cover its full value;
and (4) the material will be used to perform this contract.
Before any progress payment which includes delivered
material is made, the Contractor shall furnish such
documentation as the Contracting Officer may require to
assure the protection of the PHA’s interest in such
materials. The Contractor shall remain responsible for
such stored material notwithstanding the transfer of title
responsibilities of the parties (e.g., change in the PHA
address). All other contract modifications shall be in the
form of supplemental agreements signed by the
Contractor and the Contracting Officer.
(c) When a proposed modification requires the approval of
HUD prior to its issuance (e.g., a change order that
exceeds the PHA’s approved threshold), such
modification shall not be effective until the required
approval is received by the PHA.
29. Changes
(a) The Contracting Officer may, at any time, without notice
to the PHA.
to the sureties, by written order designated or indicated
to be a change order, make changes in the work within
the general scope of the contract including changes:
(1) In the specifications (including drawings and designs);
(2) In the method or manner of performance of the work;
(h) All material and work covered by progress payments
made shall, at the time of payment become the sole
property of the PHA, but this shall not be construed as (1)
relieving the Contractor from the sole responsibility for all
material and work upon which payments have been made
or the restoration of any damaged work; or, (2) waiving the
right of the PHA to require the fulfillment of all of the terms
of the contract. In the event the work of the Contractor has
been damaged by other contractors or persons other than
employees of the PHA in the course of their employment,
the Contractor shall restore such damaged work without
cost to the PHA and to seek redress for its damage only
from those who directly
(3) PHA-furnished facilities, equipment, materials,
services, or site; or,
(4) Directing the acceleration in the performance of the
caused it.
work.
(b) Any other written order or oral order (which, as used in
this paragraph (b), includes direction, instruction,
interpretation, or determination) from the Contracting
Officer that causes a change shall be treated as a
change order under this clause; provided, that the
Contractor gives the Contracting Officer written notice
stating (1) the date, circumstances and source of the
order and (2) that the Contractor regards the order as a
(i) The PHA shall make the final payment due the Contractor
under this contract after (1) completion and final
acceptance of all work; and (2) presentation of release of
all claims against the PHA arising by virtue of this contract,
other than claims, in stated amounts, that the Contractor
has specifically excepted from the operation of the release.
Each such exception shall embrace no more than one
claim, the basis and scope of which shall be clearly
defined. The amounts for such excepted claims shall not
be included in the request for final payment. A release may
also be required of the assignee if the Contractor’s claim to
amounts payable under this contract
change order.
(c) Except as provided in this clause, no order, statement or
conduct of the Contracting Officer shall be treated as a
change under this clause or entitle the Contractor to an
equitable adjustment.
(d) If any change under this clause causes an increase or
has been assigned.
decrease in the Contractor’s cost of, or the time required
for the performance of any part of the work under this
contract, whether or not changed by any such order, the
Contracting Officer shall make an equitable adjustment
and modify the contract in writing. However, except for a
adjustment based on defective specifications, no proposal
for any change under paragraph (b) above shall be
allowed for any costs incurred more than 20 days (5 days
for oral orders) before the Contractor gives written notice
as required. In the case of defective specifications for
which the PHA is responsible, the equitable adjustment
shall include any increased cost reasonably incurred by
the Contractor in attempting to comply with
(j) Prior to making any payment, the Contracting Officer may
require the Contractor to furnish receipts or other
evidence of payment from all persons performing work
and supplying material to the Contractor, if the
Contracting Officer determines such evidence is
necessary to substantiate claimed costs.
(k) The PHA shall not; (1) determine or adjust any claims for
payment or disputes arising there under between the
Contractor and its subcontractors or material suppliers;
or, (2) withhold any moneys for the protection of the
subcontractors or material suppliers. The failure or
refusal of the PHA to withhold moneys from the
Contractor shall in nowise impair the obligations of any
surety or sureties under any bonds furnished under this
contract.
the defective specifications.
(e) The Contractor must assert its right to an adjustment
28. Contract Modifications
under this clause within 30 days after (1) receipt of a
written change order under paragraph (a) of this clause,
or (2) the furnishing of a written notice under paragraph
(b) of this clause, by submitting a written statement
describing the general nature and the amount of the
proposal. If the facts justify it, the Contracting Officer may
extend the period for submission. The proposal may be
included in the notice required under paragraph (b)
above. No proposal by the Contractor for an equitable
adjustment shall be allowed if asserted after final
(a) Only the Contracting Officer has authority to modify any
term or condition of this contract. Any contract
payment under this contract.
modification shall be authorized in writing.
(f) The Contractor’s written proposal for equitable
adjustment shall be submitted in the form of a lump sum
proposal supported with an itemized breakdown of all
increases and decreases in the contract in at least the
following details:
(b) The Contracting Officer may modify the contract
unilaterally (1) pursuant to a specific authorization stated
in a contract clause (e.g., Changes); or (2) for
administrative matters which do not change the rights or
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(1) Direct Costs. Materials (list individual items, the
been so suspended, delayed, or interrupted by any other
cause, including the fault or negligence of the Contractor
or for which any equitable adjustment is provided for or
excluded under any other provision of this contract.
quantity and unit cost of each, and the aggregate
cost); Transportation and delivery costs associated
with materials; Labor breakdowns by hours or unit
costs (identified with specific work to be performed);
Construction equipment exclusively necessary for the
change; Costs of preparation and/ or revision to shop
drawings resulting from the change; Worker’s
Compensation and Public Liability Insurance;
Employment taxes under FICA and FUTA; and, Bond
Costs when size of change warrants revision.
(2) Indirect Costs. Indirect costs may include overhead,
general and administrative expenses, and fringe
benefits not normally treated as direct costs.
(3) Profit. The amount of profit shall be negotiated and
may vary according to the nature, extent, and
complexity of the work required by the change. The
allowability of the direct and indirect costs shall be
determined in accordance with the Contract Cost
Principles and Procedures for Commercial Firms in Part
31 of the Federal Acquisition Regulation (48 CFR 1-31),
as implemented by HUD Handbook 2210.18, in effect on
the date of this contract. The Contractor shall not be
(c) A claim under this clause shall not be allowed (1) for any
costs incurred more than 20 days before the Contractor
shall have notified the Contracting Officer in writing of
the act or failure to act involved (but this requirement
shall not apply as to a claim resulting from a suspension
order); and, (2) unless the claim, in an amount stated, is
asserted in writing as soon as practicable after the
termination of the suspension, delay, or interruption, but
not later than the date of final payment under the
contract.
31. Disputes
allowed a profit on the profit received by any
(a) “Claim,” as used in this clause, means a written demand
or written assertion by one of the contracting parties
seeking, as a matter of right, the payment of money in a
sum certain, the adjustment or interpretation of contract
terms, or other relief arising under or relating to the
contract. A claim arising under the contract, unlike a
claim relating to the contract, is a claim that can be
resolved under a contract clause that provides for the
relief sought by the claimant. A voucher, invoice, or other
routine request for payment that is not in dispute when
submitted is not a claim. The submission may be
converted to a claim by complying with the requirements
of this clause, if it is disputed either as to liability or
amount or is not acted upon in a reasonable time.
subcontractor. Equitable adjustments for deleted work
shall include a credit for profit and may include a credit for
indirect costs. On proposals covering both increases and
decreases in the amount of the contract, the application of
indirect costs and profit shall be on the net-change in
direct costs for the Contractor or subcontractor
performing the work.
(g) The Contractor shall include in the proposal its request
for time extension (if any), and shall include sufficient
information and dates to demonstrate whether and to
what extent the change will delay the completion of the
(b) Except for disputes arising under the clauses entitled
contract in its entirety.
Labor Standards - Davis Bacon and Related Acts, herein,
all disputes arising under or relating to this contract,
including any claims for damages for the alleged breach
thereof which are not disposed of by agreement, shall be
(h) The Contracting Officer shall act on proposals within 30
days after their receipt, or notify the Contractor of the
resolved under this clause.
(c) All claims by the Contractor shall be made in writing and
date when such action will be taken.
submitted to the Contracting Officer for a written decision.
A claim by the PHA against the Contractor shall be
subject to a written decision by the Contracting Officer.
(d) The Contracting Officer shall, within 60 (unless otherwise
indicated) days after receipt of the request, decide the
claim or notify the Contractor of the date by which the
(i) Failure to reach an agreement on any proposal shall be a
dispute under the clause entitled Disputes herein.
Nothing in this clause, however, shall excuse the
Contractor from proceeding with the contract as changed.
(j) Except in an emergency endangering life or property, no
change shall be made by the Contractor without a prior
order from the Contracting Officer.
decision will be made.
(e) The Contracting Officer’s decision shall be final unless
30. Suspension of Work
the Contractor (1) appeals in writing to a higher level in
the PHA in accordance with the PHA’s policy and
procedures, (2) refers the appeal to an independent
mediator or arbitrator, or (3) files suit in a court of
competent jurisdiction. Such appeal must be made within
(30 unless otherwise indicated) days after receipt of the
(a) The Contracting Officer may order the Contractor in
writing to suspend, delay, or interrupt all or any part of the
work of this contract for the period of time that the
Contracting Officer determines appropriate for the
Contracting Officer’s decision.
convenience of the PHA.
(f) The Contractor shall proceed diligently with performance
(b) If the performance of all or any part of the work is, for an
unreasonable period of time, suspended, delayed, or
interrupted (1) by an act of the Contracting Officer in the
administration of this contract, or (2) by the Contracting
Officer’s failure to act within the time specified (or within a
reasonable time if not specified) in this contract an
adjustment shall be made for any increase in the cost of
performance of the contract (excluding profit) necessarily
caused by such unreasonable suspension, delay, or
interruption and the contract modified in writing
accordingly. However, no adjustment shall be made
under this clause for any suspension, delay, or
interruption to the extent that performance would have
of this contract, pending final resolution of any request for
relief, claim, appeal, or action arising under or relating to
the contract, and comply with any decision of the
Contracting Officer.
32. Default
(a) If the Contractor refuses or fails to prosecute the work, or
any separable part thereof, with the diligence that will
insure its completion within the time specified in this
contract, or any extension thereof, or fails to complete
said work within this time, the Contracting Officer may, by
written notice to the Contractor, terminate the right to
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proceed with the work (or separable part of the work) that
has been delayed. In this event, the PHA may take over
the work and complete it, by contract or otherwise, and
may take possession of and use any materials,
equipment, and plant on the work site necessary for
completing the work. The Contractor and its sureties shall
be liable for any damage to the PHA resulting from the
Contractor’s refusal or failure to complete the work within
completion of the work together with any increased costs
occasioned the PHA in completing the work.
(c) If the PHA does not terminate the Contractor’s right to
proceed, the resulting damage will consist of liquidated
damages until the work is completed or accepted.
34. Termination for Convenience
the specified time, whether or not the Contractor’s right to
proceed with the work is terminated. This liability includes
any increased costs incurred by the PHA in completing
(a) The Contracting Officer may terminate this contract in
whole, or in part, whenever the Contracting Officer
determines that such termination is in the best interest of
the PHA. Any such termination shall be effected by
delivery to the Contractor of a Notice of Termination
specifying the extent to which the performance of the
work under the contract is terminated, and the date upon
the work.
(b) The Contractor’s right to proceed shall not be terminated
or the Contractor charged with damages under this
clause if—
(1) The delay in completing the work arises from
which such termination becomes effective.
unforeseeable causes beyond the control and without
the fault or negligence of the Contractor. Examples of
such causes include (i) acts of God, or of the public
enemy, (ii) acts of the PHA or other governmental
entity in either its sovereign or contractual capacity,
(iii) acts of another contractor in the performance of a
contract with the PHA, (iv) fires, (v) floods, (vi)
epidemics, (vii) quarantine restrictions, (viii) strikes,
(ix) freight embargoes, (x) unusually severe weather,
or (xi) delays of subcontractors or suppliers at any tier
arising from unforeseeable causes beyond the control
and without the fault or negligence of both the
Contractor and the subcontractors or suppliers; and
(2) The Contractor, within days (10 days unless otherwise
indicated) from the beginning of such delay (unless
extended by the Contracting Officer) notifies the
Contracting Officer in writing of the causes of delay.
The Contracting Officer shall ascertain the facts and
the extent of the delay. If, in the judgment of the
Contracting Officer, the findings of fact warrant such
action, time for completing the work shall be extended
by written modification to the contract. The findings of
the Contracting Officer shall be reduced to a written
decision which shall be subject to the provisions of
(b) If the performance of the work is terminated, either in
whole or in part, the PHA shall be liable to the Contractor
for reasonable and proper costs resulting from such
termination upon the receipt by the PHA of a properly
presented claim setting out in detail: (1) the total cost of
the work performed to date of termination less the total
amount of contract payments made to the Contractor; (2)
the cost (including reasonable profit) of settling and
paying claims under subcontracts and material orders for
work performed and materials and supplies delivered to
the site, payment for which has not been made by the
PHA to the Contractor or by the Contractor to the
subcontractor or supplier; (3) the cost of preserving and
protecting the work already performed until the PHA or
assignee takes possession thereof or assumes
responsibility therefore; (4) the actual or estimated cost of
legal and accounting services reasonably necessary to
prepare and present the termination claim to the PHA;
and (5) an amount constituting a reasonable profit on the
value of the work performed by the Contractor.
(c) The Contracting Officer will act on the Contractor’s claim
within days (60 days unless otherwise indicated) of
receipt of the Contractor’s claim.
(d) Any disputes with regard to this clause are expressly
the Disputes clause of this contract.
made subject to the provisions of the Disputes clause of
this contract.
(c) If, after termination of the Contractor’s right to proceed, it
is determined that the Contractor was not in default, or
that the delay was excusable, the rights and obligations
of the parties will be the same as if the termination had
been for convenience of the PHA.
35. Assignment of Contract
33. Liquidated Damages
The Contractor shall not assign or transfer any interest in
this contract; except that claims for monies due or to
become due from the PHA under the contract may be
assigned to a bank, trust company, or other financial
institution. Such assignments of claims shall only be
made with the written concurrence of the Contracting
Officer. If the Contractor is a partnership, this contract
shall inure to the benefit of the surviving or remaining
member(s) of such partnership as approved by the
Contracting Officer.
(a) If the Contractor fails to complete the work within the time
specified in the contract, or any extension, as specified in
the clause entitled Default of this contract, the Contractor
shall pay to the PHA as liquidated damages, the sum of
Contracting Officer insert amount] for
$
each day of delay. If different completion dates are
specified in the contract for separate parts or stages of the
work, the amount of liquidated damages shall be
assessed on those parts or stages which are delayed. To
the extent that the Contractor’s delay or nonperformance
is excused under another clause in this contract,
liquidated damages shall not be due the PHA. The
Contractor remains liable for damages caused other than
36. Insurance
(a) Before commencing work, the Contractor and each
subcontractor shall furnish the PHA with certificates of
insurance showing the following insurance is in force and
will insure all operations under the Contract:
by delay.
(1) Workers’ Compensation, in accordance with state or
(b) If the PHA terminates the Contractor’s right to proceed,
Territorial Workers’ Compensation laws.
the resulting damage will consist of liquidated damages
until such reasonable time as may be required for final
(2) Commercial General Liability with a combined single
than $
limit for bodily injury and property damage of not less
[Contracting Officer insert amount]
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per occurrence to protect the Contractor and each
subcontractor against claims for bodily injury or death
and damage to the property of others. This shall cover
the use of all equipment, hoists, and vehicles
(2) “Subcontractor” means any supplier, vendor, or firm
that furnishes supplies, materials, equipment, or
services to or for the Contractor or another
subcontractor.
on the site(s) not covered by Automobile Liability
(b) The Contractor shall not enter into any subcontract with
any subcontractor who has been temporarily denied
participation in a HUD program or who has been
suspended or debarred from participating in contracting
under (3) below. If the Contractor has a made”
policy, then the following additional requirements
apply: the policy must provide a “retroactive date”
which must be on or before the
“claims-
programs by any agency of the United States
execution date of the Contract; and the extended
reporting period may not be less than five years
Government or of the state in which the work under this
contract is to be performed.
following the completion date of the Contract.
(c) The Contractor shall be as fully responsible for the acts or
omissions of its subcontractors, and of persons either
directly or indirectly employed by them as for the acts or
omissions of persons directly employed by the
(3) Automobile Liability on owned and non -owned motor
vehicles used on the site(s) or in connection therewith
for a combined single limit for bodily injury and
property damage of not less than $
Contractor.
[Contracting Officer insert amount] per occurrence.
(d) The Contractor shall insert appropriate clauses in all
(b) Before commencing work, the Contractor shall furnish the
subcontracts to bind subcontractors to the terms and
conditions of this contract insofar as they are applicable
PHA with a certificate of insurance evidencing that
Builder’s Risk (fire and extended coverage) Insurance on
all work in place and/or materials stored at the building
site(s), including foundations and building equipment, is
in force. The Builder’s Risk Insurance shall be for the
benefit of the Contractor and the PHA as their interests
may appear and each shall be named in the policy or
policies as an insured. The Contractor in installing
equipment supplied by the PHA shall carry insurance on
such equipment from the time the Contractor takes
possession thereof until the Contract work is accepted by
the PHA. The Builder’s Risk Insurance need not be
carried on excavations, piers, footings, or foundations
until such time as work on the superstructure is started. It
need not be carried on landscape work. Policies shall
furnish coverage at all times for the full cash value of all
completed construction, as well as materials in place
and/or stored at the site(s), whether or not partial
payment has been made by the PHA. The Contractor
may terminate this insurance on buildings as of the date
taken over for occupancy by the PHA. The Contractor is
not required to carry Builder’s Risk Insurance for
modernization work which does not involve structural
alterations or additions and where the PHA’s existing fire
and extended coverage policy can be endorsed to
to the work of subcontractors.
(e) Nothing contained in this contract shall create any
contractual relationship between any subcontractor and
the PHA or between the subcontractor and HUD.
38. Subcontracting with Small and Minority Firms,
Women’s Business Enterprise, and Labor Surplus
Area Firms
The Contractor shall take the following steps to ensure
that, whenever possible, subcontracts are awarded to
small business firms, minority firms, women’s business
enterprises, and labor surplus area firms:
(a) Placing qualified small and minority businesses and
women’s business enterprises on solicitation lists;
(b) Ensuring that small and minority businesses and
women’s business enterprises are solicited whenever
they are potential sources;
(c) Dividing total requirements, when economically feasible,
into smaller tasks or quantities to permit maximum
participation by small and minority businesses and
women’s business enterprises;
(d) Establishing delivery schedules, where the requirements
include such work.
of the contract permit, which encourage participation by
small and minority businesses and women’s business
(c) All insurance shall be carried with companies which are
enterprises; and
financially responsible and admitted to do business in the
State in which the project is located. If any such
insurance is due to expire during the construction period,
the Contractor (including subcontractors, as applicable)
shall not permit the coverage to lapse and shall furnish
evidence of coverage to the Contracting Officer. All
certificates of insurance, as evidence of coverage, shall
provide that no coverage may be canceled or non-
renewed by the insurance company until at least 30 days
prior written notice has been given to the Contracting
Officer.
(e) Using the services and assistance of the U.S. Small
Business Administration, the Minority Business
Development Agency of the U.S. Department of
Commerce, and State and local governmental small
business agencies.
39. Equal Employment Opportunity
During the performance of this contract, the Contractor
agrees as follows:
(a) The Contractor shall not discriminate against any
employee or applicant for employment because of race,
37. Subcontracts
color, religion, sex, national origin, or handicap.
(b) The Contractor shall take affirmative action to ensure that
(a) Definitions. As used in this contract -
applicants are employed, and that employees are treated
during employment without regard to their race, color,
religion, sex, national origin, or handicap. Such action
shall include, but not be limited to, (1) employment, (2)
upgrading, (3) demotion, (4) transfer, (5) recruitment or
recruitment advertising, (6) layoff or termination, (7) rates
of pay or other forms of compensation, and (8) selection
for training, including apprenticeship.
(1) “Subcontract” means any contract, purchase order, or
other purchase agreement, including modifications
and change orders to the foregoing, entered into by a
subcontractor to furnish supplies, materials,
equipment, and services for the performance of the
prime contract or a subcontract.
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(c) The Contractor shall post in conspicuous places available
(a) The work to be performed under this contract is subject to
the requirements of section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701u
(section 3). The purpose of section 3 is to ensure that
employment and other economic opportunities generated
by HUD assistance or HUD-assisted projects covered by
section 3, shall, to the greatest extent feasible, be directed
to low- and very low-income persons, particularly persons
who are recipients of HUD assistance for
to employees and applicants for employment the notices
to be provided by the Contracting Officer that explain this
clause.
(d) The Contractor shall, in all solicitations or
advertisements for employees placed by or on behalf of
the Contractor, state that all qualified applicants will
receive consideration for employment without regard to
race, color, religion, sex, national origin, or handicap.
(e) The Contractor shall send, to each labor union or
housing.
representative of workers with which it has a collective
bargaining agreement or other contract or understanding,
the notice to be provided by the Contracting Officer
advising the labor union or workers’ representative of the
Contractor’s commitments under this clause, and post
copies of the notice in conspicuous places available to
(b) The parties to this contract agree to comply with HUD's
regulations in 24 CFR Part 135, which implement section
3. As evidenced by their execution of this contract, the
parties to this contract certify that they are under no
contractual or other impediment that would prevent them
from complying with the Part 135 regulations.
employees and applicants for employment.
(c) The contractor agrees to send to each labor organization
or representative of workers with which the contractor has
a collective bargaining agreement or other understanding,
if any, a notice advising the labor organization or workers'
representative of the contractor's commitments under this
section 3 clause, and will post copies of the notice in
conspicuous places at the work site where both
employees and applicants for training and employment
positions can see the notice. The notice shall describe the
section 3 preference, shall set forth minimum number and
job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; and the
name and location of the person(s) taking applications for
each of the positions; and the
(f) The Contractor shall comply with Executive Order 11246,
as amended, and the rules, regulations, and orders of the
Secretary of Labor.
(g) The Contractor shall furnish all information and reports
required by Executive Order 11246, as amended, Section
503 of the Rehabilitation Act of 1973, as amended, and
by rules, regulations, and orders of the Secretary of
Labor, or pursuant thereto. The Contractor shall permit
access to its books, records, and accounts by the
Secretary of Labor for purposes of investigation to
ascertain compliance with such rules, regulations, and
orders.
(h) In the event of a determination that the Contractor is not
in compliance with this clause or any rule, regulation, or
order of the Secretary of Labor, this contract may be
canceled, terminated, or suspended in whole or in part,
and the Contractor may be declared ineligible for further
Government contracts, or Federally assisted construction
contracts under the procedures authorized in Executive
Order 11246, as amended. In addition, sanctions may be
imposed and remedies invoked against the Contractor as
provided in Executive Order 11246, as amended, the
rules, regulations, and orders of the Secretary of Labor,
anticipated date the work shall begin.
(d) The contractor agrees to include this section 3 clause in
every subcontract subject to compliance with regulations
in 24 CFR Part 135, and agrees to take appropriate
action, as provided in an applicable provision of the
subcontract or in this section 3 clause, upon a finding that
the subcontractor is in violation of the regulations in 24
CFR Part 135. The contractor will not subcontract with
any subcontractor where the contractor has notice or
knowledge that the subcontractor has been found in
or as otherwise provided by law.
violation of the regulations in 24 CFR Part 135.
(i) The Contractor shall include the terms and conditions of
(e) The contractor will certify that any vacant employment
this clause in every subcontract or purchase order unless
exempted by the rules, regulations, or orders of the
Secretary of Labor issued under Executive Order 11246,
as amended, so that these terms and conditions will be
binding upon each subcontractor or vendor. The
Contractor shall take such action with respect to any
subcontract or purchase order as the Secretary of
Housing and Urban Development or the Secretary of
Labor may direct as a means of enforcing such
provisions, including sanctions for noncompliance;
provided that if the Contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor
as a result of such direction, the Contractor may request
the United States to enter into the litigation to protect the
positions, including training positions, that are filled (1)
after the contractor is selected but before the contract is
executed, and (2) with persons other than those to whom
the regulations of 24 CFR Part 135 require employment
opportunities to be directed, were not filled to circumvent
the contractor's obligations under 24 CFR Part 135.
(f) Noncompliance with HUD's regulations in 24 CFR Part
135 may result in sanctions, termination of this contract
for default, and debarment or suspension from future
HUD assisted contracts.
interests of the United States.
(g) With respect to work performed in connection with section
3 covered Indian housing assistance, section 7(b) of the
Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450e) also applies to the work to be
performed under this contract. Section 7(b) requires that
to the greatest extent feasible (i) preference and
opportunities for training and employment shall be given
to Indians, and (ii) preference in the award of contracts
and subcontracts shall be given to Indian organizations
and Indian-owned Economic Enterprises. Parties to this
contract that are subject to the provisions of section 3
and section 7(b)agree to comply with section 3 to the
maximum extent feasible, but not in derogation of
compliance with section 7(b).
(j) Compliance with the requirements of this clause shall be
to the maximum extent consistent with, but not in
derogation of, compliance with section 7(b) of the Indian
Self-Determination and Education Assistance Act and the
Indian Preference clause of this contract.
40. Employment, Training, and Contracting
Opportunities for Low-Income Persons, Section 3 of
the Housing and Urban Development Act of 1968.
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41. Interest of Members of Congress
(a) The PHA, HUD, or Comptroller General of the United
No member of or delegate to the Congress of the United
States of America shall be admitted to any share or part of
this contract or to any benefit that may arise therefrom.
States, or any of their duly authorized representatives
shall, until 3 years after final payment under this contract,
have access to and the right to examine any of the
Contractor’s directly pertinent books, documents, papers,
or other records involving transactions related to this
contract for the purpose of making audit, examination,
42. Interest of Members, Officers, or Employees and
Former Members, Officers, or Employees
excerpts, and transcriptions.
No member, officer, or employee of the PHA, no member
of the governing body of the locality in which the project
is situated, no member of the governing body of the
locality in which the PHA was activated, and no other
public official of such locality or localities who exercises
any functions or responsibilities with respect to the
project, shall, during his or her tenure, or for one year
thereafter, have any interest, direct or indirect, in this
contract or the proceeds thereof.
(b) The Contractor agrees to include in first-tier subcontracts
under this contract a clause substantially the same as
paragraph (a) above. “Subcontract,” as used in this
clause, excludes purchase orders not exceeding
$10,000.
43. Limitations on Payments made to Influence Certain
Federal Financial Transactions
(c) The periods of access and examination in paragraphs (a)
and (b) above for records relating to (1) appeals under the
Disputes clause of this contract, (2) litigation or settlement
of claims arising from the performance of this contract, or
(3) costs and expenses of this contract to which the PHA,
HUD, or Comptroller General or any of their duly
authorized representatives has taken exception shall
continue until disposition of such appeals, litigation,
claims, or exceptions.
(a) The Contractor agrees to comply with Section 1352 of
Title 31, United States Code which prohibits the use of
Federal appropriated funds to pay any person for
influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, and
officer or employee of Congress, or an employee of a
Member of Congress in connection with any of the
following covered Federal actions: the awarding of any
Federal contract; the making of any Federal grant; the
making of any Federal loan; the entering into of any
cooperative agreement; or the modification of any
46. Labor Standards - Davis-Bacon and Related Acts
If the total amount of this contract exceeds $2,000, the
Federal labor standards set forth in the clause below shall
apply to the development or construction work to be
performed under the contract.
(a) Minimum Wages.
Federal contract, grant, loan, or cooperative agreement.
(1) All laborers and mechanics employed under this
contract in the development or construction of the
project(s) involved will be paid unconditionally and not
less often than once a week, and without subsequent
deduction or rebate on any account (except such payroll
deductions as are permitted by regulations issued by the
Secretary of Labor under the Copeland Act (29 CFR Part
3)), the full amount of wages and bona fide fringe benefits
(or cash equivalents thereof) due at time of payment
computed at rates not less than those contained in the
wage determination of the Secretary of Labor which is
attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist
between the Contractor and such laborers and
mechanics. Contributions made or costs reasonably
anticipated for bona fide fringe benefits under Section
1(b)(2) of the Davis-Bacon Act on behalf of laborers or
mechanics are considered wages paid to such laborers or
mechanics, subject to the provisions of 29 CFR
5.5(a)(1)(iv); also, regular contributions made or costs
incurred for more than a weekly period (but not less often
than quarterly) under plans, funds, or programs which
cover the regular weekly period, are deemed to be
constructively made or incurred during such weekly
period. Such laborers and mechanics shall be paid the
appropriate wage rate and fringe benefits in the wage
determination for the classification of work actually
performed, without regard to skill, except as provided in
29 CFR 5.5(a)(4). Laborers or mechanics performing
(b) The Contractor further agrees to comply with the
requirement of the Act to furnish a disclosure (OMB
Standard Form LLL, Disclosure of Lobbying Activities) if
any funds other than Federal appropriated funds
(including profit or fee received under a covered Federal
transaction) have been paid, or will be paid, to any person
for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a
Member of Congress in connection with a Federal
contract, grant, loan, or cooperative agreement.
44. Royalties and Patents
The Contractor shall pay all royalties and license fees. It
shall defend all suits or claims for infringement of any
patent rights and shall save the PHA harmless from loss
on account thereof; except that the PHA shall be
responsible for all such loss when a particular design,
process or the product of a particular manufacturer or
manufacturers is specified and the Contractor has no
reason to believe that the specified design, process, or
product is an infringement. If, however, the Contractor
has reason to believe that any design, process or product
specified is an infringement of a patent, the Contractor
shall promptly notify the Contracting Officer. Failure to
give such notice shall make the Contractor responsible
for resultant loss.
work in more than one classification may be
45. Examination and Retention of Contractor’s Records
compensated at the rate specified for each classification
for the time actually worked therein; provided, that the
employer’s payroll records accurately set forth the time
spent in each classification in which work is performed.
The wage determination (including any additional
classification and wage rates conformed under 29 CFR
5.5(a)(1)(ii) and the Davis-Bacon poster (WH-1321) shall
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be posted at all times by the Contractor and its
subcontractors at the site of the work in a prominent and
accessible place where it can be easily seen by the
amount of any costs reasonably anticipated in
providing bona fide fringe benefits under a plan or
program; provided, that the Secretary of Labor has
found, upon the written request of the Contractor, that
the applicable standards of the Davis-Bacon Act have
been met. The Secretary of Labor may require the
Contractor to set aside in a separate account assets
for the meeting of obligations under the plan or
workers.
(2) (i) Any class of laborers or mechanics, including
helpers, which is not listed in the wage
determination and which is to be employed under
the contract shall be classified in conformance with
the wage determination. HUD shall approve an
additional classification and wage rate and fringe
benefits therefor only when all the following criteria
have been met: (A) The work to be performed by
the classification requested is not performed by a
classification in the wage determination; and (B)
The classification is utilized in the area by the
construction industry; and (C) The proposed wage
rate, including any bona fide fringe benefits, bears
a reasonable relationship to the wage rates
contained in the wage
program.
determination.
(b) Withholding of funds. HUD or its designee shall, upon its
own action or upon written request of an authorized
representative of the Department of Labor, withhold or
cause to be withheld from the Contractor under this
contract or any other Federal contract with the same
prime Contractor, or any other Federally-assisted
contract subject to Davis-Bacon prevailing wage
requirements, which is held by the same prime
Contractor, so much of the accrued payments or
advances as may be considered necessary to pay
laborers and mechanics, including apprentices, trainees,
and helpers, employed by the Contractor or any
subcontractor the full amount of wages required by the
contract. In the event of failure to pay any laborer or
mechanic, including any apprentice, trainee, or helper,
employed or working in the construction or development
of the project, all or part of the wages required by the
contract, HUD or its designee may, after written notice to
the Contractor, take such action as may be necessary to
cause the suspension of any further payment, advance,
or guarantee of funds until such violations have ceased.
HUD or its designee may, after written notice to the
Contractor, disburse such amounts withheld for and on
account of the Contractor or subcontractor to the
(ii) If the Contractor and the laborers and mechanics
to be employed in the classification (if known), or
their representatives, and HUD or its designee
agree on the classification and wage rate
(including the amount designated for fringe
benefits where appropriate), a report of the action
taken shall be sent by HUD or its designee to the
Administrator of the Wage and Hour Division,
Employee Standards Administration, U.S.
Department of Labor, Washington, DC 20210.
The Administrator, or an authorized
representative, will approve, modify, or disapprove
every additional classification action within 30 days
of receipt and so advise HUD or its designee or will
notify HUD or its designee within the 30-day period
that additional time is necessary.
respective employees to whom they are due.
(c) Payrolls and basic records.
(1) Payrolls and basic records relating thereto shall be
(iii) In the event the Contractor, the laborers or
maintained by the Contractor during the course of the
work and preserved for a period of three years
thereafter for all laborers and mechanics working in
the construction or development of the project. Such
records shall contain the name, address, and social
security number of each such worker, his or her
correct classification, hourly rates of wages paid
(including rates of contributions or costs anticipated
for bona fide fringe benefits or cash equivalents
thereof of the types described in section 1(b)(2)(B) of
the Davis-Bacon Act), daily and weekly number of
hours worked, deductions made, and actual wages
paid. Whenever the Secretary of Labor has found,
under 29 CFR 5.5(a)(1)(iv), that the wages of any
laborer or mechanic include the amount of costs
reasonably anticipated in providing benefits under a
plan or program described in section 1(b)(2)(B) of the
Davis-Bacon Act, the Contractor shall maintain
records which show that the commitment to provide
such benefits is enforceable, that the plan or program
is financially responsible, and that the plan or
program has been communicated in writing to the
laborers or mechanics affected, and records which
show the costs anticipated or the actual cost incurred
in providing such benefits. Contractors employing
apprentices or trainees under approved programs
shall maintain written evidence of the registration of
apprenticeship programs and certification of trainee
programs, the registration of the apprentices and
trainees, and the ratios and wage rates prescribed in
the applicable programs.
mechanics to be employed in the classification or
their representatives, and HUD or its designee do
not agree on the proposed classification and wage
rate (including the amount designated for fringe
benefits, where appropriate), HUD or its designee
shall refer the questions, including the views of all
interested parties and the recommendation of HUD
or its designee, to the Administrator of the Wage
and Hour Division for determination. The
Administrator, or an authorized representative, will
issue a determination within 30 days of receipt and
so advise HUD or its designee or will notify HUD or
its designee within the 30-day period that
additional time is necessary.
(iv) The wage rate (including fringe benefits where
appropriate) determined pursuant to
subparagraphs (a)(2)(ii) or (iii) of this clause shall
be paid to all workers performing work in the
classification under this contract from the first day
on which work is performed in classification.
(3) Whenever the minimum wage rate prescribed in the
contract for a class of laborers or mechanics includes
a fringe benefit which is not expressed as an hourly
rate, the Contractor shall either pay the benefit as
stated in the wage determination or shall pay another
bona fide fringe benefit or an hourly cash equivalent
thereof.
(4) If the Contractor does not make payments to a trustee
or other third person, the Contractor may consider as
part of the wages of any laborer or mechanic the
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(2) (i) The Contractor shall submit weekly for each week
make such records available may be grounds for
debarment action pursuant to 29 CFR 5.12.
in which any contract work is performed a copy of
all payrolls to the Contracting Officer for
(d) (1) Apprentices. Apprentices will be permitted to work at
transmission to HUD or its designee. The payrolls
submitted shall set out accurately and completely
all of the information required to be maintained
under subparagraph (c)(1) of this clause. This
information may be submitted in any form desired.
Optional Form WH-347 (Federal Stock Number
029-005-00014-1) is available for this purpose and
may be purchased from the Superintendent of
Documents, U.S. Government Printing Office,
Washington, D.C. 20402. The Contractor is
responsible for the submission of copies of
payrolls by all subcontractors. (Approved by the
Office of Management and Budget under OMB
less than the predetermined rate for the work they
performed when they are employed pursuant to and
individually registered in a bona fide apprenticeship
program registered with the U.S. Department of
Labor, Employment and Training Administration,
Office of Apprenticeship and Training, Employer and
Labor Services (OATELS), or with a State
Apprenticeship Agency recognized by OATELS, or if a
person is employed in his or her first 90 days of
probationary employment as an apprentice in such an
apprenticeship program, who is not individually
registered in the program, but who has been certified
by OATELS or a State Apprenticeship Agency (where
Control Number 1214-0149.)
appropriate) to be eligible for probationary
(ii) Each payroll submitted shall be accompanied by a
employment as an apprentice. The allowable ratio of
apprentices to journeymen on the job site in any craft
classification shall not be greater than the ratio
permitted to the Contractor as to the entire work force
under the registered program. Any worker listed on a
payroll at an apprentice wage rate, who is not
registered or otherwise employed as stated in this
paragraph, shall be paid not less than the applicable
wage rate on the wage determination for the
classification of work actually performed. In addition,
any apprentice performing work on the job site in
excess of the ratio permitted under the registered
program shall be paid not less than the applicable
wage rate on the wage determination for the work
actually performed. Where a contractor is performing
construction on a project in a locality other than that in
which its program is registered, the ratios and wage
rates (expressed in percentages of the journeyman’s
“Statement of Compliance,” signed by the
Contractor or subcontractor or his or her agent
who pays or supervises the payment of the
persons employed under the contract and shall
certify the following:
(A) That the payroll for the payroll period contains
the information required to be maintained
under paragraph (c) (1) of this clause and that
such information is correct and complete;
(B) That each laborer or mechanic (including each
helper, apprentice, and trainee) employed on
the contract during the payroll period has been
paid the full weekly wages earned, without
rebate, either directly or indirectly, and that no
deductions have been made either directly or
indirectly from the full wages earned, other
than permissible deductions as set forth in 29
CFR Part 3; and
hourly rate) specified in the Contractor’s or
(C) That each laborer or mechanic has been paid
not less than the applicable wage rates and
fringe benefits or cash equivalents for the
classification of work performed, as specified
in the applicable wage determination
subcontractor’s registered program shall be observed.
Every apprentice must be paid at not less than the rate
specified in the registered program for the apprentice’s
level of progress, expressed as a percentage of the
journeyman hourly rate specified in the applicable
wage determination. Apprentices shall be paid fringe
benefits in accordance with the provisions of the
apprenticeship program. If the apprenticeship program
does not specify fringe benefits, apprentices must be
paid the full amount of fringe benefits listed on the
wage determination for the applicable classification. If
the Administrator of the Wage and Hour Division
determines that a different practice prevails for the
applicable apprentice classification, fringes shall be
paid in accordance with that determination. In the
event OATELS, or a State Apprenticeship Agency
recognized by OATELS, withdraws approval of an
apprenticeship program, the Contractor will no longer
be permitted to utilize apprentices at less than the
applicable predetermined rate for the work performed
until an acceptable
incorporated into the contract.
(iii) The weekly submission of a properly executed
certification set forth on the reverse side of
Optional Form WH-347 shall satisfy the
requirements for submission of the “Statement of
Compliance” required by subparagraph (c)(2)(ii) of
this clause.
(iv) The falsification of any of the above certifications
may subject the Contractor or subcontractor to civil
or criminal prosecution under Section 1001 of Title
18 and Section 3729 of Title 31 of the United
States Code.
(3) The Contractor or subcontractor shall make the
records required under subparagraph (c)(1) available
for inspection, copying, or transcription by authorized
representatives of HUD or its designee, the
Contracting Officer, or the Department of Labor and
shall permit such representatives to interview
employees during working hours on the job. If the
Contractor or subcontractor fails to submit the
required records or to make them available, HUD or
program is approved.
(2) Trainees. Except as provided in 29 CFR 5.16,
its designee may, after written notice to the
trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they
are employed pursuant to and individually registered in
a program which has received prior approval,
evidenced by formal certification by the U.S.
Department of Labor, Employment and Training
Administration. The ratio of trainees to journeymen on
the job site shall not be greater than permitted under
Contractor, take such action as may be necessary to
cause the suspension of any further payment,
advance, or guarantee of funds. Furthermore, failure
to submit the required records upon request or to
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the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less
than the rate specified in the approved program for the
trainee’s level of progress, expressed as a percentage
of the journeyman hourly rate specified in the
applicable wage determination. Trainees shall be paid
fringe benefits in accordance with the provisions of the
trainee program. If the trainee program does not
mention fringe benefits, trainees shall be paid the full
amount of fringe benefits listed in the wage
determination unless the Administrator of the Wage
and Hour Division determines that there is an
apprenticeship program associated with the
corresponding journeyman wage rate in the wage
determination which provides for less than full fringe
benefits for apprentices. Any employee listed on the
payroll at a trainee rate who is not registered and
participating in a training plan approved by the
Employment and Training Administration shall be paid
not less than the applicable wage rate in the wage
determination for the classification of work actually
performed. In addition, any trainee performing work on
the job site in excess of the ratio permitted under the
registered program shall be paid not less than the
applicable wage rate in the wage determination for the
work actually performed. In the event the Employment
and Training Administration withdraws approval of a
training program, the Contractor will no longer be
permitted to utilize trainees at less than the applicable
predetermined rate for the work performed
(2) No part of this contract shall be subcontracted to any
person or firm ineligible for award of a United States
Government contract by virtue of section 3(a) of the
Davis-Bacon Act or 29 CFR 5.12(a)(1).
(3) The penalty for making false statements is prescribed
in the U. S. Criminal Code, 18 U.S.C. 1001.
(j) Contract Work Hours and Safety Standards Act. As used
in this paragraph, the terms “laborers” and “mechanics”
include watchmen and guards.
(1) Overtime requirements. No contractor or
subcontractor contracting for any part of the contract
work which may require or involve the employment of
laborers or mechanics, including watchmen and
guards, shall require or permit any such laborer or
mechanic in any workweek in which the individual is
employed on such work to work in excess of 40 hours
in such workweek unless such laborer or mechanic
receives compensation at a rate not less than one and
one-half times the basic rate of pay for all hours
worked in excess of 40 hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated
damages. In the event of any violation of the
provisions set forth in subparagraph (j)(1) of this
clause, the Contractor and any subcontractor
responsible therefor shall be liable for the unpaid
wages. In addition, such Contractor and
until an acceptable program is approved.
subcontractor shall be liable to the United States (in
the case of work done under contract for the District
of Columbia or a territory, to such District or to such
territory), for liquidated damages. Such liquidated
damages shall be computed with respect to each
individual laborer or mechanic (including watchmen
and guards) employed in violation of the provisions
set forth in subparagraph (j)(1) of this clause, in the
sum of $10 for each calendar day on which such
individual was required or permitted to work in excess
of the standard workweek of 40 hours without
payment of the overtime wages required by
provisions set forth in subparagraph (j)(1) of this
(3) Equal employment opportunity. The utilization of
apprentices, trainees, and journeymen under this
clause shall be in conformity with the equal
employment opportunity requirements of Executive
Order 11246, as amended, and 29 CFR Part 30.
(e) Compliance with Copeland Act requirements. The
Contractor shall comply with the requirements of 29 CFR
Part 3, which are hereby incorporated by reference in this
contract.
clause.
(f) Contract termination; debarment. A breach of this contract
clause may be grounds for termination of the contract and
for debarment as a Contractor and a subcontractor as
provided in 29 CFR 5.12.
(3) Withholding for unpaid wages and liquidated
(g) Compliance with Davis-Bacon and related Act
requirements. All rulings and interpretations of the Davis-
damages. HUD or its designee shall upon its own
action or upon written request of an authorized
representative of the Department of Labor withhold or
cause to be withheld, from any moneys payable on
account of work performed by the Contractor or
subcontractor under any such contract or any Federal
contract with the same prime Contractor, or any other
Federally-assisted contract subject to the Contract
Work Hours and Safety Standards Act, which is held
by the same prime Contractor, such sums as may be
determined to be necessary to satisfy any liabilities of
such Contractor or subcontractor for unpaid wages
and liquidated damages as provided in the provisions
set forth in subparagraph (j)(2) of this clause.
(k) Subcontracts. The Contractor or subcontractor shall insert
in any subcontracts all the provisions contained in this
clause, and such other clauses as HUD or its designee
may by appropriate instructions require, and also a
clause requiring the subcontractors to include these
provisions in any lower tier subcontracts. The prime
Contractor shall be responsible for the compliance by any
subcontractor or lower tier subcontractor with all these
provisions.
Bacon and related Acts contained in 29 CFR Parts 1, 3,
and 5 are herein incorporated by reference in this
contract.
(h) Disputes concerning labor standards. Disputes arising out
of the labor standards provisions of this clause shall not
be subject to the general disputes clause of this contract.
Such disputes shall be resolved in accordance with the
procedures of the Department of Labor set forth in 29
CFR Parts 5, 6, and 7. Disputes within the meaning of
this clause include disputes between the Contractor (or
any of its subcontractors) and the PHA, HUD, the U.S.
Department of Labor, or the employees or their
representatives.
(i) Certification of eligibility.
(1) By entering into this contract, the Contractor certifies
that neither it (nor he or she) nor any person or firm
who has an interest in the Contractor’s firm is a
person or firm ineligible to be awarded contracts by
the United States Government by virtue of section
3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
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47. Non-Federal Prevailing Wage Rates
(a) Any prevailing wage rate (including basic hourly rate and
any fringe benefits), determined under State or tribal law
to be prevailing, with respect to any employee in any
trade or position employed under the contract, is
inapplicable to the contract and shall not be enforced
against the Contractor or any subcontractor, with respect
to employees engaged under the contract whenever
such non-Federal prevailing wage rate exceeds:
(1) The applicable wage rate determined by the Secretary
of Labor pursuant to the Davis-Bacon Act (40 U.S.C.
3141 et seq.) to be prevailing in the locality with
respect to such trade;
(b) An applicable apprentice wage rate based thereon
specified in an apprenticeship program registered with
the U.S. Department of Labor (DOL) or a DOL-
recognized State Apprenticeship Agency; or
(c) An applicable trainee wage rate based thereon specified
in a DOL-certified trainee program.
48. Procurement of Recovered Materials.
(a) In accordance with Section 6002 of the Solid Waste
Disposal Act, as amended by the Resource Conservation
and Recovery Act, the Contractor shall procure items
designated in guidelines of the Environmental Protection
Agency (EPA) at 40 CFR Part 247 that contain the highest
percentage of recovered materials practicable, consistent
with maintaining a satisfactory level of competition. The
Contractor shall procure items designated in the EPA
guidelines that contain the highest percentage of
recovered materials practicable unless the Contractor
determines that such items: (1) are not reasonably
available in a reasonable period of time; (2) fail to meet
reasonable performance standards, which shall be
determined on the basis of the guidelines of the National
Institute of Standards and Technology, if applicable to the
item; or (3) are only available at an
unreasonable price.
(b) Paragraph (a) of this clause shall apply to items
purchased under this contract where: (1) the
Contractor purchases in excess of $10,000 of the item
under this contract; or (2) during the preceding
Federal fiscal year, the Contractor: (i) purchased any
amount of the items for use under a contract that was
funded with Federal appropriations and was with a
Federal agency or a State agency or agency of a
political subdivision of a State; and (ii) purchased a
total of in excess of $10,000 of the item both under
and outside that contract.
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General Conditions for Construction
Public Housing Programs
U.S. Department of Housing and Urban
Contracts
Development
-
Office of Public and Indian Housing
OMB Approval No. 2577-0157 (exp. 3/31/2020)
Applicability. This form is applicable to any
construction/development contract greater than $150,000.
This form includes those clauses required by OMB's common rule on grantee procurement, implemented at HUD in 2 CFR 200, and
those requirements set forth in Section 3 of the Housing and Urban Development Act of 1968 and its amendment by the Housing and
Community Development Act of 1992, implemented by HUD at 24 CFR Part 135. The form is required for construction contracts
awarded by Public Housing Agencies (PHAs).
The form is used by Housing Authorities in solicitations to provide necessary contract clauses. If the form were not used, HAs would be
unable to enforce their contracts.
Public reporting burden for this collection of information is estimated to average 1.0 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection
of information. Responses to the collection of information are required to obtain a benefit or to retain a benefit.
The information requested does not lend itself to confidentiality.
HUD may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently
valid OMB number.
Table of Contents
Clause
Page
Clause
Page
1.
Definitions
2
Administrative Requirements
Construction Requirements
28.
Contract Modifications
10
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form HUD-5370 (1/2014)
14.
Temporary Buildings and Transportation Materials
6
38.
13
16.
40.
14
18.
Clean Air and Water
7
42.
15
2.
Contractor’s Responsibility for Work
2
25.
Contract Period
9
3.
Architect’s Duties, Responsibilities and Authority
2
26.
Order of Precedence
9
4.
Other Contracts
3
27.
Payments
9
5.
Preconstruction Conference and Notice to Proceed
3
29.
Changes
10
6.
Construction Progress Schedule
3
30.
Suspension of Work
11
7.
Site Investigation and Conditions Affecting the Work
3
31.
Disputes
11
8.
Differing Site Conditions
4
32.
Default
11
9.
Specifications and Drawings for Construction
4
33.
Liquidated
12
10.
As-Built Drawings
5
34.
Termination of Convenience
12
11.
Material and Workmanship
5
35.
Assignment of Contract
12
12.
Permits and Codes
5
36.
Insurance
12
13.
Health, Safety, and Accident Prevention
6
37.
Subcontracts
13
Subcontracting with Small and Minority Firms, Women’s
Business Enterprise, and Labor Surplus Area Firms
15.
Availability and Use of Utility Services
6
39.
Equal Employment Opportunity
13
Protection of Existing Vegetation, Structures,
Equipment, Utilities, and Improvements
6
Employment, Training, and Contracting Opportunities
for Low-Income Persons, Section 3 of the Housing and
Urban Development Act of 1968
17.
Temporary Buildings and Transportation Materials
7
41.
Interest of Members of Congress
15
Interest of Members, Officers, or Employees and
Former Members, Officers, or Employees
19.
Energy Efficiency
7
43.
Limitations on Payments Made to Influence
15
20.
Inspection and Acceptance of Construction
7
44.
Royalties and Patents
15
21.
Use and Possession Prior to
8
45.
Examination and Retention of Contractor’s Records
15
22.
Warranty of Title
8
46.
Labor Standards-Davis-Bacon and Related Acts
15
23.
Warranty of
8
47.
Non-Federal Prevailing Wage Rates
19
24.
Prohibition Against
9
48.
Procurement of Recovered
19
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1. Definitions
(a) The Contractor shall furnish all necessary labor,
(a) “Architect” means the person or other entity engaged by
the PHA to perform architectural, engineering, design,
and other services related to the work as provided for in
the contract. When a PHA uses an engineer to act in this
capacity, the terms “architect” and “engineer” shall be
synonymous. The Architect shall serve as a technical
representative of the Contracting Officer. The Architect’s
materials, tools, equipment, and transportation necessary
for performance of the work. The Contractor shall also
furnish all necessary water, heat, light, and power not
made available to the Contractor by the PHA pursuant to
the clause entitled Availability and Use of Utility Services
herein.
(b) The Contractor shall perform on the site, and with its own
authority is as set forth elsewhere in this contract.
organization, work equivalent to at least [
] (12 percent
unless otherwise indicated) of the total amount of work to
be performed under the order. This percentage may be
reduced by a supplemental agreement to this order if,
during performing the work, the Contractor requests a
reduction and the Contracting Officer determines that the
(b) “Contract” means the contract entered into between the
PHA and the Contractor. It includes the forms of Bid, the
Bid Bond, the Performance and Payment Bond or Bonds
or other assurance of completion, the Certifications,
Representations, and Other Statements of Bidders (form
HUD-5370), these General Conditions of the Contract for
Construction (form HUD-5370), the applicable wage rate
determinations from the U.S. Department of Labor, any
special conditions included elsewhere in the contract, the
specifications, and drawings. It includes all formal
changes to any of those documents by addendum,
reduction would be to the advantage of the PHA.
(c) At all times during performance of this contract and until
the work is completed and accepted, the Contractor shall
directly superintend the work or assign and have on the
work site a competent superintendent who is satisfactory
to the Contracting Officer and has authority to act for the
Contractor.
change order, or other modification.
(d) The Contractor shall be responsible for all damages to
(c) “Contracting Officer” means the person delegated the au-
persons or property that occur as a result of the
Contractor’s fault or negligence, and shall take proper
thority by the PHA to enter into, administer, and/or
terminate this contract and designated as such in writing
to the Contractor. The term includes any successor
safety and health precautions to protect the work, the
workers, the public, and the property of others. The
Contractor shall hold and save the PHA, its officers and
agents, free and harmless from liability of any nature
occasioned by the Contractor’s performance. The
Contractor shall also be responsible for all materials
delivered and work performed until completion and
acceptance of the entire work, except for any completed
unit of work which may have been accepted under the
Contracting Officer and any duly authorized
representative of the Contracting Officer also designated
in writing. The Contracting Officer shall be deemed the
authorized agent of the PHA in all dealings with the
Contractor.
(d) “Contractor” means the person or other entity entering
into the contract with the PHA to perform all of the work
required under the contract.
contract.
(e) “Drawings” means the drawings enumerated in the
(e) The Contractor shall lay out the work from base lines and
schedule of drawings contained in the Specifications and
as described in the contract clause entitled Specifications
bench marks indicated on the drawings and be
responsible for all lines, levels, and measurements of all
work executed under the contract. The Contractor shall
verify the figures before laying out the work and will be
held responsible for any error resulting from its failure to
and Drawings for Construction herein.
(f) “HUD” means the United States of America acting through
the Department of Housing and Urban Development
including the Secretary, or any other person designated to
act on its behalf. HUD has agreed, subject to the
provisions of an Annual Contributions Contract (ACC), to
provide financial assistance to the PHA, which includes
assistance in financing the work to be performed under
this contract. As defined elsewhere in these General
Conditions or the contract documents, the determination
of HUD may be required to authorize changes in the work
or for release of funds to the PHA for payment to the
Contractor. Notwithstanding HUD’s role, nothing in this
contract shall be construed to create any contractual
do so.
(f) The Contractor shall confine all operations (including
storage of materials) on PHA premises to areas
authorized or approved by the Contracting Officer.
(g) The Contractor shall at all times keep the work area,
relationship between the Contractor and HUD.
including storage areas, free from accumulations of
waste materials. After completing the work and before
final inspection, the Contractor shall (1) remove from the
premises all scaffolding, equipment, tools, and materials
(including rejected materials) that are not the property of
the PHA and all rubbish caused by its work; (2) leave the
work area in a clean, neat, and orderly condition
satisfactory to the Contracting Officer; (3) perform all
specified tests; and, (4) deliver the installation in
(g) “Project” means the entire project, whether construction
or rehabilitation, the work for which is provided for in
whole or in part under this contract.
complete and operating condition.
(h) “PHA” means the Public Housing Agency organized
under applicable state laws which is a party to this
(h) The Contractor’s responsibility will terminate when all
contract.
work has been completed, the final inspection made, and
the work accepted by the Contracting Officer. The
Contractor will then be released from further obligation
except as required by the warranties specified elsewhere
in the contract.
(j) “Specifications” means the written description of the
technical requirements for construction and includes the
criteria and tests for determining whether the
requirements are met.
(l) “Work” means materials, workmanship, and manufacture
and fabrication of components.
3. Architect’s Duties, Responsibilities, and Authority
2. Contractor’s Responsibility for Work
(a) The Architect for this contract, and any successor, shall
be designated in writing by the Contracting Officer.
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(b) The Architect shall serve as the Contracting Officer’s
technical representative with respect to architectural,
engineering, and design matters related to the work
performed under the contract. The Architect may provide
direction on contract performance. Such direction shall be
within the scope of the contract and may not be of a
nature which: (1) institutes additional work outside the
scope of the contract; (2) constitutes a change as defined
in the Changes clause herein; (3) causes an increase or
decrease in the cost of the contract; (4) alters the
Construction Progress Schedule; or (5) changes any of
the other express terms or conditions of the contract.
6. Construction Progress Schedule
(a) The Contractor shall, within five days after the work
(c) The Architect’s duties and responsibilities may include but
commences on the contract or another period of time
determined by the Contracting Officer, prepare and
submit to the Contracting Officer for approval three copies
of a practicable schedule showing the order in which the
Contractor proposes to perform the work, and the dates
on which the Contractor contemplates starting and
completing the several salient features of the work
(including acquiring labor, materials, and equipment). The
schedule shall be in the form of a progress chart of
suitable scale to indicate appropriately the percentage of
work scheduled for completion by any given date during
the period. If the Contractor fails to submit a schedule
within the time prescribed, the Contracting Officer may
withhold approval of progress payments or take other
remedies under the contract until the Contractor submits
shall not be limited to:
(1) Making periodic visits to the work site, and on the
basis of his/her on-site inspections, issuing written
reports to the PHA which shall include all observed
deficiencies. The Architect shall file a copy of the
report with the Contractor’s designated representative
at the site;
the required schedule.
(2) Making modifications in drawings and technical
(b) The Contractor shall enter the actual progress on the
chart as required by the Contracting Officer, and
immediately deliver three copies of the annotated
schedule to the Contracting Officer. If the Contracting
Officer determines, upon the basis of inspection
conducted pursuant to the clause entitled Inspection and
Acceptance of Construction, herein that the Contractor is
not meeting the approved schedule, the Contractor shall
take steps necessary to improve its progress, including
those that may be required by the Contracting Officer,
without additional cost to the PHA. In this circumstance,
the Contracting Officer may require the Contractor to
increase the number of shifts, overtime operations, days
of work, and/or the amount of construction plant, and to
submit for approval any supplementary schedule or
schedules in chart form as the Contracting Officer deems
necessary to demonstrate how the approved rate of
specifications and assisting the Contracting Officer in
the preparation of change orders and other contract
modifications for issuance by the Contracting Officer;
(3) Reviewing and making recommendations with respect
to - (i) the Contractor’s construction progress
schedules; (ii) the Contractor’s shop and detailed
drawings; (iii) the machinery, mechanical and other
equipment and materials or other articles proposed
for use by the Contractor; and, (iv) the Contractor’s
price breakdown and progress payment estimates;
and,
(4) Assisting in inspections, signing Certificates of
Completion, and making recommendations with
respect to acceptance of work completed under the
contract.
4. Other Contracts
progress will be regained.
The PHA may undertake or award other contracts for
additional work at or near the site of the work under this
contract. The Contractor shall fully cooperate with the
other contractors and with PHA employees and shall
carefully adapt scheduling and performing the work under
this contract to accommodate the additional work, heeding
any direction that may be provided by the Contracting
Officer. The Contractor shall not commit or permit any act
that will interfere with the performance of work by any
other contractor or by PHA employees
(c) Failure of the Contractor to comply with the requirements
of the Contracting Officer under this clause shall be
grounds for a determination by the Contracting Officer that
the Contractor is not prosecuting the work with sufficient
diligence to ensure completion within the time
specified in the Contract. Upon making this
determination, the Contracting Officer may terminate the
Contractor’s right to proceed with the work, or any
separable part of it, in accordance with the Default clause
of this contract.
7. Site Investigation and Conditions Affecting the Work
Construction Requirements
5. Pre-construction Conference and Notice to Proceed
(a) The Contractor acknowledges that it has taken steps
reasonably necessary to ascertain the nature and location
of the work, and that it has investigated and satisfied itself
as to the general and local conditions which can affect the
work or its cost, including but not limited to, (1) conditions
bearing upon transportation, disposal, handling, and
storage of materials; (2) the availability of labor, water,
electric power, and roads;(3) uncertainties of weather,
river stages, tides, or similar physical conditions at the
site; (4) the conformation and conditions of the ground;
and (5) the character of equipment and facilities needed
preliminary to and during work performance. The
Contractor also acknowledges that it has satisfied itself as
to the character, quality, and quantity of surface and
subsurface materials or obstacles to be encountered
insofar as this information is
(a) Within ten calendar days of contract execution, and prior
to the commencement of work, the Contractor shall
attend a preconstruction conference with representatives
of the PHA, its Architect, and other interested parties
convened by the PHA. The conference will serve to
acquaint the participants with the general plan of the
construction operation and all other requirements of the
contract. The PHA will provide the Contractor with the
date, time, and place of the conference.
(b) The contractor shall begin work upon receipt of a written
Notice to Proceed from the Contracting Officer or
designee. The Contractor shall not begin work prior to
receiving such notice.
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reasonably ascertainable from an inspection of the site,
including all exploratory work done by the PHA, as well
as from the drawings and specifications made a part of
this contract. Any failure of the Contractor to take the
actions described and acknowledged in this paragraph
will not relieve the Contractor from responsibility for
estimating properly the difficulty and cost of successfully
performing the work, or for proceeding to successfully
promptly submitted to the Contracting Officer, who shall
promptly make a determination in writing. Any adjustment
by the Contractor without such a determination shall be at
its own risk and expense. The Contracting Officer shall
furnish from time to time such detailed drawings and other
information as considered necessary, unless
otherwise provided.
perform the work without additional expense to the PHA.
(b) Wherever in the specifications or upon the drawings the
words “directed”, “required”, “ordered”, “designated”,
“prescribed”, or words of like import are used, it shall be
(b) The PHA assumes no responsibility for any conclusions
or interpretations made by the Contractor based on the
information made available by the PHA. Nor does the
PHA assume responsibility for any understanding
reached or representation made concerning conditions
which can affect the work by any of its officers or agents
before the execution of this contract, unless that
understanding or representation is expressly stated in
this contract.
understood that the “direction”, “requirement”, “order”,
“designation”, or “prescription”, of the Contracting Officer
is intended and similarly the words “approved”,
“acceptable”, “satisfactory”, or words of like import shall
mean “approved by”, or “acceptable to”, or “satisfactory
to” the Contracting Officer, unless otherwise expressly
stated.
(c) Where “as shown” “as indicated”, “as detailed”, or
8. Differing Site Conditions
of similar import are used, it shall be understood that the
reference is made to the drawings accompanying this
contract unless stated otherwise. The word “provided” as
used herein shall be understood to mean “provide
complete in place” that is “furnished and installed”.
(a) The Contractor shall promptly, and before the conditions
are disturbed, give a written notice to the Contracting
Officer of (1) subsurface or latent physical conditions at
the site which differ materially from those indicated in this
contract, or (2) unknown physical conditions at the
site(s), of an unusual nature, which differ materially from
those ordinarily encountered and generally recognized as
inhering in work of the character provided for in the
(d) “Shop drawings” means drawings, submitted to the PHA
contract.
by the Contractor, subcontractor, or any lower tier
subcontractor, showing in detail (1) the proposed
fabrication and assembly of structural elements and (2)
the installation (i.e., form, fit, and attachment details) of
materials of equipment. It includes drawings, diagrams,
layouts, schematics, descriptive literature, illustrations,
schedules, performance and test data, and similar
materials furnished by the Contractor to explain in detail
specific portions of the work required by the contract. The
PHA may duplicate, use, and disclose in any manner and
for any purpose shop drawings delivered under this
(b) The Contracting Officer shall investigate the site
conditions promptly after receiving the notice. Work shall
not proceed at the affected site, except at the
Contractor’s risk, until the Contracting Officer has
provided written instructions to the Contractor. If the
conditions do materially so differ and cause an increase
or decrease in the Contractor’s cost of, or the time
required for, performing any part of the work under this
contract, whether or not changed as a result of the
conditions, the Contractor shall file a claim in writing to
the PHA within ten days after receipt of such instructions
and, in any event, before proceeding with the work. An
equitable adjustment in the contract price, the delivery
schedule, or both shall be made under this clause and
contract.
(e) If this contract requires shop drawings, the Contractor
the contract modified in writing accordingly.
shall coordinate all such drawings, and review them for
accuracy, completeness, and compliance with other
contract requirements and shall indicate its approval
thereon as evidence of such coordination and review.
Shop drawings submitted to the Contracting Officer
without evidence of the Contractor’s approval may be
returned for resubmission. The Contracting Officer will
indicate an approval or disapproval of the shop drawings
and if not approved as submitted shall indicate the PHA’s
reasons therefore. Any work done before such approval
shall be at the Contractor’s risk. Approval by the
Contracting Officer shall not relieve the Contractor from
responsibility for any errors or omissions in such
drawings, nor from responsibility for complying with the
requirements of this contract, except with respect to
variations described and approved in accordance with (f)
(c) No request by the Contractor for an equitable adjustment
to the contract under this clause shall be allowed, unless
the Contractor has given the written notice required;
provided, that the time prescribed in (a) above for giving
written notice may be extended by the Contracting
Officer.
(d) No request by the Contractor for an equitable adjustment
to the contract for differing site conditions shall be
allowed if made after final payment under this contract.
below.
9. Specifications and Drawings for Construction
(f) If shop drawings show variations from the contract
requirements, the Contractor shall describe such
variations in writing, separate from the drawings, at the
time of submission. If the Architect approves any such
variation and the Contracting Officer concurs, the
(a) The Contractor shall keep on the work site a copy of the
drawings and specifications and shall at all times give the
Contracting Officer access thereto. Anything mentioned
in the specifications and not shown on the drawings, or
shown on the drawings and not mentioned in the
specifications, shall be of like effect as if shown or
mentioned in both. In case of difference between
drawings and specifications, the specifications shall
govern. In case of discrepancy in the figures, in the
drawings, or in the specifications, the matter shall be
Contracting Officer shall issue an appropriate
modification to the contract, except that, if the variation is
minor or does not involve a change in price or in time of
performance, a modification need not be issued.
(g) It shall be the responsibility of the Contractor to make
timely requests of the PHA for such large scale and full
size drawings, color schemes, and other additional
information, not already in his possession, which shall be
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required in the planning and production of the work. Such
requests may be submitted as the need arises, but each
such request shall be filed in ample time to permit
appropriate action to be taken by all parties involved so
machinery and mechanical and other equipment.
When required by this contract or by the Contracting
Officer, the Contractor shall also obtain the
Contracting Officer’s approval of the material or
articles which the Contractor contemplates
incorporating into the work. When requesting
approval, the Contractor shall provide full information
concerning the material or articles. Machinery,
equipment, material, and articles that do not have the
required approval shall be installed or used at the risk
as to avoid delay.
(h) The Contractor shall submit to the Contracting Officer for
approval four copies (unless otherwise indicated) of all
shop drawings as called for under the various headings
of these specifications. Three sets (unless otherwise
indicated) of all shop drawings, will be retained by the
PHA and one set will be returned to the Contractor. As
required by the Contracting Officer, the Contractor, upon
completing the work under this contract, shall furnish a
complete set of all shop drawings as finally approved.
These drawings shall show all changes and revisions
of subsequent rejection.
(2) When required by the specifications or the
Contracting Officer, the Contractor shall submit
appropriately marked samples (and certificates
related to them) for approval at the Contractor’s
made up to the time the work is completed and accepted.
expense, with all shipping charges prepaid. The
Contractor shall label, or otherwise properly mark on
the container, the material or product represented, its
place of origin, the name of the producer, the
Contractor’s name, and the identification of the
construction project for which the material or product
(i) This clause shall be included in all subcontracts at any tier.
It shall be the responsibility of the Contractor to ensure
that all shop drawings prepared by subcontractors are
submitted to the Contracting Officer.
10. As-Built Drawings
is intended to be used.
(a) “As-built drawings,” as used in this clause, means
(3) Certificates shall be submitted in triplicate, describing
each sample submitted for approval and certifying
that the material, equipment or accessory complies
with contract requirements. The certificates shall
include the name and brand of the product, name of
manufacturer, and the location where produced.
drawings submitted by the Contractor or subcontractor at
any tier to show the construction of a particular structure
or work as actually completed under the contract. “As-built
drawings” shall be synonymous with “Record
drawings.”
(4) Approval of a sample shall not constitute a waiver of
(b) As required by the Contracting Officer, the Contractor
the PHA right to demand full compliance with contract
requirements. Materials, equipment and accessories
may be rejected for cause even though samples have
shall provide the Contracting Officer accurate information
to be used in the preparation of permanent as-built
drawings. For this purpose, the Contractor shall record on
one set of contract drawings all changes from the
installations originally indicated, and record final locations
of underground lines by depth from finish grade and by
accurate horizontal offset distances to permanent surface
improvements such as buildings, curbs, or edges of
been approved.
walks.
(5) Wherever materials are required to comply with
recognized standards or specifications, such
specifications shall be accepted as establishing the
technical qualities and testing methods, but shall not
govern the number of tests required to be made nor
modify other contract requirements. The Contracting
Officer may require laboratory test reports on items
submitted for approval or may approve materials on
the basis of data submitted in certificates with
samples. Check tests will be made on materials
delivered for use only as frequently as the Contracting
Officer determines necessary to insure compliance of
materials with the specifications. The Contractor will
assume all costs of retesting materials which fail to
meet contract requirements and/or testing materials
offered in substitution for those found deficient.
(c) This clause shall be included in all subcontracts at any
tier. It shall be the responsibility of the Contractor to
ensure that all as-built drawings prepared by
subcontractors are submitted to the Contracting Officer.
11. Material and Workmanship
(a) All equipment, material, and articles furnished under this
contract shall be new and of the most suitable grade for
the purpose intended, unless otherwise specifically
provided in this contract. References in the contract to
equipment, material, articles, or patented processes by
trade name, make, or catalog number, shall be regarded
as establishing a standard of quality and shall not be
construed as limiting competition. The Contractor may, at
its option, use any equipment, material, article, or
process that, in the judgment of, and as approved by the
Contracting Officer, is equal to that named in the
specifications, unless otherwise specifically provided in
(6) After approval, samples will be kept in the Project
office until completion of work. They may be built into
the work after a substantial quantity of the materials
they represent has been built in and accepted.
(c) Requirements concerning lead-based paint. The
Contractor shall comply with the requirements concerning
lead-based paint contained in the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C. 4821-4846) as
implemented by 24 CFR Part 35.
this contract.
(b) Approval of equipment and materials.
12. Permits and Codes
(1) The Contractor shall obtain the Contracting Officer’s
approval of the machinery and mechanical and other
equipment to be incorporated into the work. When
requesting approval, the Contractor shall furnish to the
Contracting Officer the name of the manufacturer, the
model number, and other information concerning the
performance, capacity, nature, and rating of the
(a) The Contractor shall give all notices and comply with all
applicable laws, ordinances, codes, rules and regulations.
Notwithstanding the requirement of the Contractor to
comply with the drawings and specifications in the
contract, all work installed shall comply with all applicable
codes and regulations as amended by any
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waivers. Before installing the work, the Contractor shall
examine the drawings and the specifications for
compliance with applicable codes and regulations
bearing on the work and shall immediately report any
discrepancy it may discover to the Contracting Officer.
14. Temporary Heating
Where the requirements of the drawings and
The Contractor shall provide and pay for temporary
heating, covering, and enclosures necessary to properly
protect all work and materials against damage by
dampness and cold, to dry out the work, and to facilitate
the completion of the work. Any permanent heating
equipment used shall be turned over to the PHA in the
condition and at the time required by the specifications.
specifications fail to comply with the applicable code or
regulation, the Contracting Officer shall modify the
contract by change order pursuant to the clause entitled
Changes herein to conform to the code or regulation.
(b) The Contractor shall secure and pay for all permits, fees,
and licenses necessary for the proper execution and
completion of the work. Where the PHA can arrange for
the issuance of all or part of these permits, fees and
licenses, without cost to the Contractor, the contract
amount shall be reduced accordingly.
15. Availability and Use of Utility Services
(a) The PHA shall make all reasonably required amounts of
13. Health, Safety, and Accident Prevention
utilities available to the Contractor from existing outlets
and supplies, as specified in the contract. Unless
otherwise provided in the contract, the amount of each
utility service consumed shall be charged to or paid for by
the Contractor at prevailing rates charged to the PHA or,
where the utility is produced by the PHA, at reasonable
rates determined by the Contracting Officer. The
Contractor shall carefully conserve any utilities furnished
(a) In performing this contract, the Contractor shall:
(1) Ensure that no laborer or mechanic shall be required
to work in surroundings or under working conditions
which are unsanitary, hazardous, or dangerous to
his/her health and/or safety as determined under
construction safety and health standards promulgated
without charge.
(b) The Contractor, at its expense and in a manner
by the Secretary of Labor by regulation;
satisfactory to the Contracting Officer, shall install and
maintain all necessary temporary connections and
distribution lines, and all meters required to measure the
amount of each utility used for the purpose of
determining charges. Before final acceptance of the work
by the PHA, the Contractor shall remove all the
temporary connections, distribution lines, meters, and
associated paraphernalia.
(2) Protect the lives, health, and safety of other persons;
(3) Prevent damage to property, materials, supplies, and
equipment; and,
(4) Avoid work interruptions.
(b) For these purposes, the Contractor shall:
(1) Comply with regulations and standards issued by the
Secretary of Labor at 29 CFR Part 1926. Failure to
comply may result in imposition of sanctions pursuant
to the Contract Work Hours and Safety Standards Act
(Public Law 91-54, 83 Stat. 96), 40 U.S.C. 3701 et
16. Protection of Existing Vegetation, Structures,
Equipment, Utilities, and Improvements
seq.; and
(a) The Contractor shall preserve and protect all structures,
(2) Include the terms of this clause in every subcontract
equipment, and vegetation (such as trees, shrubs, and
grass) on or adjacent to the work site, which are not to be
removed under this contract, and which do not
unreasonably interfere with the work required under this
so that such terms will be binding on each
subcontractor.
(c) The Contractor shall maintain an accurate record of
exposure data on all accidents incident to work performed
under this contract resulting in death, traumatic injury,
occupational disease, or damage to property, materials,
supplies, or equipment, and shall report this data in the
manner prescribed by 29 CFR Part
contract.
(b) The Contractor shall only remove trees when specifically
1904.
authorized to do so, and shall avoid damaging vegetation
that will remain in place. If any limbs or branches of trees
are broken during performance of this contract, or by the
careless operation of equipment, or by workmen, the
Contractor shall trim those limbs or branches with a clean
cut and paint the cut with a tree-pruning compound as
(d) The Contracting Officer shall notify the Contractor of any
noncompliance with these requirements and of the
corrective action required. This notice, when delivered to
the Contractor or the Contractor’s representative at the
site of the work, shall be deemed sufficient notice of the
noncompliance and corrective action required. After
receiving the notice, the Contractor shall immediately
take corrective action. If the Contractor fails or refuses to
take corrective action promptly, the Contracting Officer
may issue an order stopping all or part of the work until
satisfactory corrective action has been taken. The
Contractor shall not base any claim or request for
equitable adjustment for additional time or money on any
directed by the Contracting Officer.
(c) The Contractor shall protect from damage all existing
improvements and utilities (1) at or near the work site and
(2) on adjacent property of a third party, the locations of
which are made known to or should be known by the
Contractor. Prior to disturbing the ground at the
construction site, the Contractor shall ensure that all
underground utility lines are clearly marked.
(d) The Contractor shall shore up, brace, underpin, secure,
stop order issued under these circumstances.
and protect as necessary all foundations and other parts
of existing structures adjacent to, adjoining, and in the
vicinity of the site, which may be affected by the
excavations or other operations connected with the
(e) The Contractor shall be responsible for its subcontractors’
compliance with the provisions of this clause. The
Contractor shall take such action with respect to any
subcontract as the PHA, the Secretary of Housing and
Urban Development, or the Secretary of Labor shall
direct as a means of enforcing such provisions.
construction of the project.
(e) Any equipment temporarily removed as a result of work
under this contract shall be protected, cleaned, and
replaced in the same condition as at the time of award of
this contract.
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(f) New work which connects to existing work shall
The contactor shall comply with the Clean Air Act, as
amended, 42 USC 7401 et seq., the Federal Water
Pollution Control Water Act, as amended, 33 U.S.C. 1251
et seq., and standards issued pursuant thereto in the
facilities in which this contract is to be performed.
correspond in all respects with that to which it connects
and/or be similar to existing work unless otherwise
required by the specifications.
(g) No structural members shall be altered or in any way
weakened without the written authorization of the
Contracting Officer, unless such work is clearly specified
19. Energy Efficiency
in the plans or specifications.
(h) If the removal of the existing work exposes discolored or
unfinished surfaces, or work out of alignment, such
surfaces shall be refinished, or the material replaced as
necessary to make the continuous work uniform and
harmonious. This, however, shall not be construed to
require the refinishing or reconstruction of dissimilar
finishes previously exposed, or finished surfaces in good
condition, but in different planes or on different levels
when brought together by the removal of intervening
work, unless such refinishing or reconstruction is
The Contractor shall comply with mandatory standards
and policies relating to energy efficiency which are
contained in the energy conservation plan issued in
compliance with the Energy Policy and Conservation Act
(Pub.L. 94-163) for the State in which the work under the
contract is performed.
20. Inspection and Acceptance of Construction
(a) Definitions. As used in this clause -
specified in the plans or specifications.
(1) “Acceptance” means the act of an authorized
representative of the PHA by which the PHA approves
and assumes ownership of the work performed under this
contract. Acceptance may be partial or complete.
(2) “Inspection” means examining and testing the work
(i) The Contractor shall give all required notices to any
adjoining or adjacent property owner or other party before
the commencement of any work.
(j) The Contractor shall indemnify and save harmless the
PHA from any damages on account of settlement or the
loss of lateral support of adjoining property, any damages
from changes in topography affecting drainage, and from
all loss or expense and all damages for which the PHA
may become liable in consequence of such injury or
damage to adjoining and adjacent structures and their
performed under the contract (including, when
appropriate, raw materials, equipment, components, and
intermediate assemblies) to determine whether it
conforms to contract requirements.
premises.
(3) “Testing” means that element of inspection that
determines the properties or elements, including
functional operation of materials, equipment, or their
components, by the application of established scientific
(k) The Contractor shall repair any damage to vegetation,
structures, equipment, utilities, or improvements,
including those that are the property of a third party,
resulting from failure to comply with the requirements of
this contract or failure to exercise reasonable care in
performing the work. If the Contractor fails or refuses to
repair the damage promptly, the Contracting Officer may
have the necessary work performed and charge the cost
to the Contractor.
principles and procedures.
(b) The Contractor shall maintain an adequate inspection
system and perform such inspections as will ensure that
the work performed under the contract conforms to
contract requirements. All work is subject to PHA
inspection and test at all places and at all reasonable
times before acceptance to ensure strict compliance with
the terms of the contract.
(c) PHA inspections and tests are for the sole benefit of the
17. Temporary Buildings and Transportation of Materials
PHA and do not: (1) relieve the Contractor of
responsibility for providing adequate quality control
measures; (2) relieve the Contractor of responsibility for
loss or damage of the material before acceptance; (3)
constitute or imply acceptance; or, (4) affect the
continuing rights of the PHA after acceptance of the
(a) Temporary buildings (e.g., storage sheds, shops, offices,
sanitary facilities) and utilities may be erected by the
Contractor only with the approval of the Contracting
Officer and shall be built with labor and materials
furnished by the Contractor without expense to the PHA.
The temporary buildings and utilities shall remain the
property of the Contractor and shall be removed by the
Contractor at its expense upon completion of the work.
With the written consent of the Contracting Officer, the
buildings and utilities may be abandoned and need not
completed work under paragraph (j) below.
(d) The presence or absence of the PHA inspector does not
relieve the Contractor from any contract requirement, nor
is the inspector authorized to change any term or
condition of the specifications without the Contracting
Officer’s written authorization. All instructions and
be removed.
approvals with respect to the work shall be given to the
(b) The Contractor shall, as directed by the Contracting
Contractor by the Contracting Officer.
Officer, use only established roadways, or use temporary
roadways constructed by the Contractor when and as
authorized by the Contracting Officer. When materials are
transported in prosecuting the work, vehicles shall not be
loaded beyond the loading capacity recommended by the
manufacturer of the vehicle or prescribed by any federal,
state, or local law or regulation. When it is necessary to
cross curbs or sidewalks, the Contractor shall protect them
from damage. The Contractor shall repair or pay for the
repair of any damaged curbs, sidewalks, or roads.
(e) The Contractor shall promptly furnish, without additional
charge, all facilities, labor, and material reasonably
needed for performing such safe and convenient
inspections and tests as may be required by the
Contracting Officer. The PHA may charge to the
Contractor any additional cost of inspection or test when
work is not ready at the time specified by the Contractor
for inspection or test, or when prior rejection makes
reinspection or retest necessary. The PHA shall perform
all inspections and tests in a manner that will not
unnecessarily delay the work. Special, full size, and
performance tests shall be performed as described in the
contract.
18. Clean Air and Water
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(f) The PHA may conduct routine inspections of the
occupied without proper remuneration therefore. If prior
possession or use by the PHA delays the progress of the
work or causes additional expense to the Contractor, an
equitable adjustment shall be made in the contract price
or the time of completion, and the contract shall be
modified in writing accordingly.
construction site on a daily basis.
(g) The Contractor shall, without charge, replace or correct
work found by the PHA not to conform to contract
requirements, unless the PHA decides that it is in its
interest to accept the work with an appropriate
adjustment in contract price. The Contractor shall
promptly segregate and remove rejected material from
22. Warranty of Title
the premises.
(h) If the Contractor does not promptly replace or correct
The Contractor warrants good title to all materials,
supplies, and equipment incorporated in the work and
agrees to deliver the premises together with all
improvements thereon free from any claims, liens or
charges, and agrees further that neither it nor any other
person, firm or corporation shall have any right to a lien
upon the premises or anything appurtenant thereto.
rejected work, the PHA may (1) by contract or otherwise,
replace or correct the work and charge the cost to the
Contractor, or (2) terminate for default the Contractor’s
right to proceed.
(i) If any work requiring inspection is covered up without ap-
proval of the PHA, it must, if requested by the Contracting
Officer, be uncovered at the expense of the Contractor. If
at any time before final acceptance of the entire work, the
PHA considers it necessary or advisable, to examine
work already completed by removing or tearing it out, the
Contractor, shall on request, promptly furnish all
necessary facilities, labor, and material. If such work is
found to be defective or nonconforming in any material
respect due to the fault of the Contractor or its
subcontractors, the Contractor shall defray all the
expenses of the examination and of satisfactory
reconstruction. If, however, such work is found to meet
the requirements of the contract, the Contracting Officer
shall make an equitable adjustment to cover the cost of
the examination and reconstruction, including, if
completion of the work was thereby delayed, an
23. Warranty of Construction
(a) In addition to any other warranties in this contract, the
Contractor warrants, except as provided in paragraph (j)
of this clause, that work performed under this contract
conforms to the contract requirements and is free of any
defect in equipment, material, or workmanship performed
by the Contractor or any subcontractor or supplier at any
tier. This warranty shall continue for a period of
(one year unless otherwise indicated) from the date of final
acceptance of the work. If the PHA takes possession of
any part of the work before final acceptance, this warranty
shall continue for a period of (one year unless otherwise
indicated) from the date that the PHA takes
extension of time.
possession.
(j) The Contractor shall notify the Contracting Officer, in
(b) The Contractor shall remedy, at the Contractor’s
writing, as to the date when in its opinion all or a
designated portion of the work will be substantially
completed and ready for inspection. If the Architect
determines that the state of preparedness is as
represented, the PHA will promptly arrange for the
inspection. Unless otherwise specified in the contract, the
PHA shall accept, as soon as practicable after completion
and inspection, all work required by the contract or that
portion of the work the Contracting Officer determines and
designates can be accepted separately. Acceptance shall
be final and conclusive except for latent defects, fraud,
gross mistakes amounting to fraud, or the PHA’s right
under any warranty or guarantee.
expense, any failure to conform, or any defect. In
addition, the Contractor shall remedy, at the Contractor’s
expense, any damage to PHA-owned or controlled real or
personal property when the damage is the result of—
(1) The Contractor’s failure to conform to contract require-
ments; or
(2) Any defects of equipment, material, workmanship or
design furnished by the Contractor.
(c) The Contractor shall restore any work damaged in
fulfilling the terms and conditions of this clause. The
Contractor’s warranty with respect to work repaired or
replaced will run for (one year unless otherwise indicated)
from the date of repair or replacement.
(d) The Contracting Officer shall notify the Contractor, in
21. Use and Possession Prior to Completion
writing, within a reasonable time after the discovery of
any failure, defect or damage.
(a) The PHA shall have the right to take possession of or use
any completed or partially completed part of the work.
Before taking possession of or using any work, the
Contracting Officer shall furnish the Contractor a list of
items of work remaining to be performed or corrected on
those portions of the work that the PHA intends to take
possession of or use. However, failure of the Contracting
Officer to list any item of work shall not relieve the
Contractor of responsibility for complying with the terms of
the contract. The PHA’s possession or use shall not be
(e) If the Contractor fails to remedy any failure, defect, or
damage within a reasonable time after receipt of notice,
the PHA shall have the right to replace, repair or
otherwise remedy the failure, defect, or damage at the
Contractor’s expense.
(f) With respect to all warranties, express or implied, from
subcontractors, manufacturers, or suppliers for work
performed and materials furnished under this contract,
the Contractor shall:
(1) Obtain all warranties that would be given in normal
deemed an acceptance of any work under the contract.
commercial practice;
(b) While the PHA has such possession or use, the
(2) Require all warranties to be executed in writing, for the
Contractor shall be relieved of the responsibility for (1) the
loss of or damage to the work resulting from the PHA’s
possession or use, notwithstanding the terms of the
clause entitled Permits and Codes herein; (2) all
maintenance costs on the areas occupied; and, (3)
furnishing heat, light, power, and water used in the areas
benefit of the PHA; and,
(3) Enforce all warranties for the benefit of the PHA.
(g) In the event the Contractor’s warranty under paragraph
(a) of this clause has expired, the PHA may bring suit at
its own expense to enforce a subcontractor’s,
manufacturer’s or supplier’s warranty.
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(h) Unless a defect is caused by the negligence of the
basis for determining progress payments. The breakdown
shall be approved by the Contracting Officer and must be
acceptable to HUD. If the contract covers more than one
Contractor or subcontractor or supplier at any tier, the
Contractor shall not be liable for the repair of any defect of
material or design furnished by the PHA nor for the repair
of any damage that results from any defect in PHA
project, the Contractor shall furnish a separate
furnished material or design.
breakdown for each. The values and quantities employed
in making up this breakdown are for determining the
amount of progress payments and shall not be construed
as a basis for additions to or deductions from the contract
price. The Contractor shall prorate its overhead and profit
(i) Notwithstanding any provisions herein to the contrary, the
establishment of the time periods in paragraphs (a) and
(c) above relate only to the specific obligation of the
Contractor to correct the work, and have no relationship
to the time within which its obligation to comply with the
contract may be sought to be enforced, nor to the time
within which proceedings may be commenced to
establish the Contractor’s liability with respect to its
obligation other than specifically to correct the work.
over the construction period of the contract.
(d) The Contractor shall submit, on forms provided by the
PHA, periodic estimates showing the value of the work
performed during each period based upon the approved
submitted not later than
days in advance of
(j) This warranty shall not limit the PHA’s rights under the
the date set for payment and are subject to correction and
revision as required. The estimates must be approved by
the Contracting Officer with the concurrence of the
Architect prior to payment. If the contract covers more
than one project, the Contractor shall furnish a
Inspection and Acceptance of Construction clause of this
contract with respect to latent defects, gross mistakes or
fraud.
24. Prohibition Against Liens
separate progress payment estimate for each.
The Contractor is prohibited from placing a lien on the
PHA’s property. This prohibition shall apply to all
subcontractors at any tier and all materials suppliers.
(e) Along with each request for progress payments and the
required estimates, the Contractor shall furnish the
following certification, or payment shall not be made: I
hereby certify, to the best of my knowledge and belief,
that:
Administrative Requirements
(1) The amounts requested are only for performance in
accordance with the specifications, terms, and
25. Contract Period
conditions of the contract;
(2) Payments to subcontractors and suppliers have been
made from previous payments received under the
contract, and timely payments will be made from the
proceeds of the payment covered by this certification,
in accordance with subcontract agreements; and,
this contract within
calendar days of the
effective date of the contract, or within the time schedule
established in the notice to proceed issued by the
Contracting Officer.
(3) This request for progress payments does not include
26. Order of Provisions
any amounts which the prime contractor intends to
withhold or retain from a subcontractor or supplier in
accordance with the terms and conditions of the
subcontract.
In the event of a conflict between these General
Conditions and the Specifications, the General
Conditions shall prevail. In the event of a conflict between
the contract and any applicable state or local law or
regulation, the state or local law or regulation shall
prevail; provided that such state or local law or regulation
does not conflict with, or is less restrictive than applicable
federal law, regulation, or Executive Order. In the event of
such a conflict, applicable federal law, regulation, and
Executive Order shall prevail.
Name:
Title:
Date:
27. Payments
(f) Except as otherwise provided in State law, the PHA shall
(a) The PHA shall pay the Contractor the price as provided in
retain ten (10) percent of the amount of progress
payments until completion and acceptance of all work
under the contract; except, that if upon completion of 50
percent of the work, the Contracting Officer, after
consulting with the Architect, determines that the
Contractor’s performance and progress are satisfactory,
this contract.
(b) The PHA shall make progress payments approximately
every 30 days as the work proceeds, on estimates of
work accomplished which meets the standards of quality
established under the contract, as approved by the
Contracting Officer. The PHA may, subject to written
determination and approval of the Contracting Officer,
make more frequent payments to contractors which are
the PHA may make the remaining payments in full for the
work subsequently completed. If the Contracting Officer
subsequently determines that the Contractor’s
performance and progress are unsatisfactory, the PHA
shall reinstate the ten (10) percent (or other percentage
as provided in State law) retainage until such time as the
Contracting Officer determines that performance and
qualified small businesses.
(c) Before the first progress payment under this contract, the
Contractor shall furnish, in such detail as requested by
the Contracting Officer, a breakdown of the total contract
price showing the amount included therein for each
principal category of the work, which shall substantiate
the payment amount requested in order to provide a
progress are satisfactory.
(g) The Contracting Officer may authorize material delivered
on the site and preparatory work done to be taken into
consideration when computing progress payments.
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Material delivered to the Contractor at locations other than
the site may also be taken into consideration if the
Contractor furnishes satisfactory evidence that (1) it has
acquired title to such material; (2) the material is properly
stored in a bonded warehouse, storage yard, or similar
suitable place as may be approved by the Contracting
Officer; (3) the material is insured to cover its full value;
and (4) the material will be used to perform this contract.
Before any progress payment which includes delivered
material is made, the Contractor shall furnish such
documentation as the Contracting Officer may require to
assure the protection of the PHA’s interest in such
materials. The Contractor shall remain responsible for
such stored material notwithstanding the transfer of title
responsibilities of the parties (e.g., change in the PHA
address). All other contract modifications shall be in the
form of supplemental agreements signed by the
Contractor and the Contracting Officer.
(c) When a proposed modification requires the approval of
HUD prior to its issuance (e.g., a change order that
exceeds the PHA’s approved threshold), such
modification shall not be effective until the required
approval is received by the PHA.
29. Changes
(a) The Contracting Officer may, at any time, without notice
to the PHA.
to the sureties, by written order designated or indicated
to be a change order, make changes in the work within
the general scope of the contract including changes:
(1) In the specifications (including drawings and designs);
(2) In the method or manner of performance of the work;
(h) All material and work covered by progress payments
made shall, at the time of payment become the sole
property of the PHA, but this shall not be construed as (1)
relieving the Contractor from the sole responsibility for all
material and work upon which payments have been made
or the restoration of any damaged work; or, (2) waiving the
right of the PHA to require the fulfillment of all of the terms
of the contract. In the event the work of the Contractor has
been damaged by other contractors or persons other than
employees of the PHA in the course of their employment,
the Contractor shall restore such damaged work without
cost to the PHA and to seek redress for its damage only
from those who directly
(3) PHA-furnished facilities, equipment, materials,
services, or site; or,
(4) Directing the acceleration in the performance of the
caused it.
work.
(b) Any other written order or oral order (which, as used in
this paragraph (b), includes direction, instruction,
interpretation, or determination) from the Contracting
Officer that causes a change shall be treated as a
change order under this clause; provided, that the
Contractor gives the Contracting Officer written notice
stating (1) the date, circumstances and source of the
order and (2) that the Contractor regards the order as a
(i) The PHA shall make the final payment due the Contractor
under this contract after (1) completion and final
acceptance of all work; and (2) presentation of release of
all claims against the PHA arising by virtue of this contract,
other than claims, in stated amounts, that the Contractor
has specifically excepted from the operation of the release.
Each such exception shall embrace no more than one
claim, the basis and scope of which shall be clearly
defined. The amounts for such excepted claims shall not
be included in the request for final payment. A release may
also be required of the assignee if the Contractor’s claim to
amounts payable under this contract
change order.
(c) Except as provided in this clause, no order, statement or
conduct of the Contracting Officer shall be treated as a
change under this clause or entitle the Contractor to an
equitable adjustment.
(d) If any change under this clause causes an increase or
has been assigned.
decrease in the Contractor’s cost of, or the time required
for the performance of any part of the work under this
contract, whether or not changed by any such order, the
Contracting Officer shall make an equitable adjustment
and modify the contract in writing. However, except for a
adjustment based on defective specifications, no proposal
for any change under paragraph (b) above shall be
allowed for any costs incurred more than 20 days (5 days
for oral orders) before the Contractor gives written notice
as required. In the case of defective specifications for
which the PHA is responsible, the equitable adjustment
shall include any increased cost reasonably incurred by
the Contractor in attempting to comply with
(j) Prior to making any payment, the Contracting Officer may
require the Contractor to furnish receipts or other
evidence of payment from all persons performing work
and supplying material to the Contractor, if the
Contracting Officer determines such evidence is
necessary to substantiate claimed costs.
(k) The PHA shall not; (1) determine or adjust any claims for
payment or disputes arising there under between the
Contractor and its subcontractors or material suppliers;
or, (2) withhold any moneys for the protection of the
subcontractors or material suppliers. The failure or
refusal of the PHA to withhold moneys from the
Contractor shall in nowise impair the obligations of any
surety or sureties under any bonds furnished under this
contract.
the defective specifications.
(e) The Contractor must assert its right to an adjustment
28. Contract Modifications
under this clause within 30 days after (1) receipt of a
written change order under paragraph (a) of this clause,
or (2) the furnishing of a written notice under paragraph
(b) of this clause, by submitting a written statement
describing the general nature and the amount of the
proposal. If the facts justify it, the Contracting Officer may
extend the period for submission. The proposal may be
included in the notice required under paragraph (b)
above. No proposal by the Contractor for an equitable
adjustment shall be allowed if asserted after final
(a) Only the Contracting Officer has authority to modify any
term or condition of this contract. Any contract
payment under this contract.
modification shall be authorized in writing.
(f) The Contractor’s written proposal for equitable
adjustment shall be submitted in the form of a lump sum
proposal supported with an itemized breakdown of all
increases and decreases in the contract in at least the
following details:
(b) The Contracting Officer may modify the contract
unilaterally (1) pursuant to a specific authorization stated
in a contract clause (e.g., Changes); or (2) for
administrative matters which do not change the rights or
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(1) Direct Costs. Materials (list individual items, the
been so suspended, delayed, or interrupted by any other
cause, including the fault or negligence of the Contractor
or for which any equitable adjustment is provided for or
excluded under any other provision of this contract.
quantity and unit cost of each, and the aggregate
cost); Transportation and delivery costs associated
with materials; Labor breakdowns by hours or unit
costs (identified with specific work to be performed);
Construction equipment exclusively necessary for the
change; Costs of preparation and/ or revision to shop
drawings resulting from the change; Worker’s
Compensation and Public Liability Insurance;
Employment taxes under FICA and FUTA; and, Bond
Costs when size of change warrants revision.
(2) Indirect Costs. Indirect costs may include overhead,
general and administrative expenses, and fringe
benefits not normally treated as direct costs.
(3) Profit. The amount of profit shall be negotiated and
may vary according to the nature, extent, and
complexity of the work required by the change. The
allowability of the direct and indirect costs shall be
determined in accordance with the Contract Cost
Principles and Procedures for Commercial Firms in Part
31 of the Federal Acquisition Regulation (48 CFR 1-31),
as implemented by HUD Handbook 2210.18, in effect on
the date of this contract. The Contractor shall not be
(c) A claim under this clause shall not be allowed (1) for any
costs incurred more than 20 days before the Contractor
shall have notified the Contracting Officer in writing of
the act or failure to act involved (but this requirement
shall not apply as to a claim resulting from a suspension
order); and, (2) unless the claim, in an amount stated, is
asserted in writing as soon as practicable after the
termination of the suspension, delay, or interruption, but
not later than the date of final payment under the
contract.
31. Disputes
allowed a profit on the profit received by any
(a) “Claim,” as used in this clause, means a written demand
or written assertion by one of the contracting parties
seeking, as a matter of right, the payment of money in a
sum certain, the adjustment or interpretation of contract
terms, or other relief arising under or relating to the
contract. A claim arising under the contract, unlike a
claim relating to the contract, is a claim that can be
resolved under a contract clause that provides for the
relief sought by the claimant. A voucher, invoice, or other
routine request for payment that is not in dispute when
submitted is not a claim. The submission may be
converted to a claim by complying with the requirements
of this clause, if it is disputed either as to liability or
amount or is not acted upon in a reasonable time.
subcontractor. Equitable adjustments for deleted work
shall include a credit for profit and may include a credit for
indirect costs. On proposals covering both increases and
decreases in the amount of the contract, the application of
indirect costs and profit shall be on the net-change in
direct costs for the Contractor or subcontractor
performing the work.
(g) The Contractor shall include in the proposal its request
for time extension (if any), and shall include sufficient
information and dates to demonstrate whether and to
what extent the change will delay the completion of the
(b) Except for disputes arising under the clauses entitled
contract in its entirety.
Labor Standards - Davis Bacon and Related Acts, herein,
all disputes arising under or relating to this contract,
including any claims for damages for the alleged breach
thereof which are not disposed of by agreement, shall be
(h) The Contracting Officer shall act on proposals within 30
days after their receipt, or notify the Contractor of the
resolved under this clause.
(c) All claims by the Contractor shall be made in writing and
date when such action will be taken.
submitted to the Contracting Officer for a written decision.
A claim by the PHA against the Contractor shall be
subject to a written decision by the Contracting Officer.
(d) The Contracting Officer shall, within 60 (unless otherwise
indicated) days after receipt of the request, decide the
claim or notify the Contractor of the date by which the
(i) Failure to reach an agreement on any proposal shall be a
dispute under the clause entitled Disputes herein.
Nothing in this clause, however, shall excuse the
Contractor from proceeding with the contract as changed.
(j) Except in an emergency endangering life or property, no
change shall be made by the Contractor without a prior
order from the Contracting Officer.
decision will be made.
(e) The Contracting Officer’s decision shall be final unless
30. Suspension of Work
the Contractor (1) appeals in writing to a higher level in
the PHA in accordance with the PHA’s policy and
procedures, (2) refers the appeal to an independent
mediator or arbitrator, or (3) files suit in a court of
competent jurisdiction. Such appeal must be made within
(30 unless otherwise indicated) days after receipt of the
(a) The Contracting Officer may order the Contractor in
writing to suspend, delay, or interrupt all or any part of the
work of this contract for the period of time that the
Contracting Officer determines appropriate for the
Contracting Officer’s decision.
convenience of the PHA.
(f) The Contractor shall proceed diligently with performance
(b) If the performance of all or any part of the work is, for an
unreasonable period of time, suspended, delayed, or
interrupted (1) by an act of the Contracting Officer in the
administration of this contract, or (2) by the Contracting
Officer’s failure to act within the time specified (or within a
reasonable time if not specified) in this contract an
adjustment shall be made for any increase in the cost of
performance of the contract (excluding profit) necessarily
caused by such unreasonable suspension, delay, or
interruption and the contract modified in writing
accordingly. However, no adjustment shall be made
under this clause for any suspension, delay, or
interruption to the extent that performance would have
of this contract, pending final resolution of any request for
relief, claim, appeal, or action arising under or relating to
the contract, and comply with any decision of the
Contracting Officer.
32. Default
(a) If the Contractor refuses or fails to prosecute the work, or
any separable part thereof, with the diligence that will
insure its completion within the time specified in this
contract, or any extension thereof, or fails to complete
said work within this time, the Contracting Officer may, by
written notice to the Contractor, terminate the right to
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proceed with the work (or separable part of the work) that
has been delayed. In this event, the PHA may take over
the work and complete it, by contract or otherwise, and
may take possession of and use any materials,
equipment, and plant on the work site necessary for
completing the work. The Contractor and its sureties shall
be liable for any damage to the PHA resulting from the
Contractor’s refusal or failure to complete the work within
completion of the work together with any increased costs
occasioned the PHA in completing the work.
(c) If the PHA does not terminate the Contractor’s right to
proceed, the resulting damage will consist of liquidated
damages until the work is completed or accepted.
34. Termination for Convenience
the specified time, whether or not the Contractor’s right to
proceed with the work is terminated. This liability includes
any increased costs incurred by the PHA in completing
(a) The Contracting Officer may terminate this contract in
whole, or in part, whenever the Contracting Officer
determines that such termination is in the best interest of
the PHA. Any such termination shall be effected by
delivery to the Contractor of a Notice of Termination
specifying the extent to which the performance of the
work under the contract is terminated, and the date upon
the work.
(b) The Contractor’s right to proceed shall not be terminated
or the Contractor charged with damages under this
clause if—
(1) The delay in completing the work arises from
which such termination becomes effective.
unforeseeable causes beyond the control and without
the fault or negligence of the Contractor. Examples of
such causes include (i) acts of God, or of the public
enemy, (ii) acts of the PHA or other governmental
entity in either its sovereign or contractual capacity,
(iii) acts of another contractor in the performance of a
contract with the PHA, (iv) fires, (v) floods, (vi)
epidemics, (vii) quarantine restrictions, (viii) strikes,
(ix) freight embargoes, (x) unusually severe weather,
or (xi) delays of subcontractors or suppliers at any tier
arising from unforeseeable causes beyond the control
and without the fault or negligence of both the
Contractor and the subcontractors or suppliers; and
(2) The Contractor, within days (10 days unless otherwise
indicated) from the beginning of such delay (unless
extended by the Contracting Officer) notifies the
Contracting Officer in writing of the causes of delay.
The Contracting Officer shall ascertain the facts and
the extent of the delay. If, in the judgment of the
Contracting Officer, the findings of fact warrant such
action, time for completing the work shall be extended
by written modification to the contract. The findings of
the Contracting Officer shall be reduced to a written
decision which shall be subject to the provisions of
(b) If the performance of the work is terminated, either in
whole or in part, the PHA shall be liable to the Contractor
for reasonable and proper costs resulting from such
termination upon the receipt by the PHA of a properly
presented claim setting out in detail: (1) the total cost of
the work performed to date of termination less the total
amount of contract payments made to the Contractor; (2)
the cost (including reasonable profit) of settling and
paying claims under subcontracts and material orders for
work performed and materials and supplies delivered to
the site, payment for which has not been made by the
PHA to the Contractor or by the Contractor to the
subcontractor or supplier; (3) the cost of preserving and
protecting the work already performed until the PHA or
assignee takes possession thereof or assumes
responsibility therefore; (4) the actual or estimated cost of
legal and accounting services reasonably necessary to
prepare and present the termination claim to the PHA;
and (5) an amount constituting a reasonable profit on the
value of the work performed by the Contractor.
(c) The Contracting Officer will act on the Contractor’s claim
within days (60 days unless otherwise indicated) of
receipt of the Contractor’s claim.
(d) Any disputes with regard to this clause are expressly
the Disputes clause of this contract.
made subject to the provisions of the Disputes clause of
this contract.
(c) If, after termination of the Contractor’s right to proceed, it
is determined that the Contractor was not in default, or
that the delay was excusable, the rights and obligations
of the parties will be the same as if the termination had
been for convenience of the PHA.
35. Assignment of Contract
33. Liquidated Damages
The Contractor shall not assign or transfer any interest in
this contract; except that claims for monies due or to
become due from the PHA under the contract may be
assigned to a bank, trust company, or other financial
institution. Such assignments of claims shall only be
made with the written concurrence of the Contracting
Officer. If the Contractor is a partnership, this contract
shall inure to the benefit of the surviving or remaining
member(s) of such partnership as approved by the
Contracting Officer.
(a) If the Contractor fails to complete the work within the time
specified in the contract, or any extension, as specified in
the clause entitled Default of this contract, the Contractor
shall pay to the PHA as liquidated damages, the sum of
Contracting Officer insert amount] for
$
each day of delay. If different completion dates are
specified in the contract for separate parts or stages of the
work, the amount of liquidated damages shall be
assessed on those parts or stages which are delayed. To
the extent that the Contractor’s delay or nonperformance
is excused under another clause in this contract,
liquidated damages shall not be due the PHA. The
Contractor remains liable for damages caused other than
36. Insurance
(a) Before commencing work, the Contractor and each
subcontractor shall furnish the PHA with certificates of
insurance showing the following insurance is in force and
will insure all operations under the Contract:
by delay.
(1) Workers’ Compensation, in accordance with state or
(b) If the PHA terminates the Contractor’s right to proceed,
Territorial Workers’ Compensation laws.
the resulting damage will consist of liquidated damages
until such reasonable time as may be required for final
(2) Commercial General Liability with a combined single
than $
limit for bodily injury and property damage of not less
[Contracting Officer insert amount]
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per occurrence to protect the Contractor and each
subcontractor against claims for bodily injury or death
and damage to the property of others. This shall cover
the use of all equipment, hoists, and vehicles
(2) “Subcontractor” means any supplier, vendor, or firm
that furnishes supplies, materials, equipment, or
services to or for the Contractor or another
subcontractor.
on the site(s) not covered by Automobile Liability
(b) The Contractor shall not enter into any subcontract with
any subcontractor who has been temporarily denied
participation in a HUD program or who has been
suspended or debarred from participating in contracting
under (3) below. If the Contractor has a "claims made”
policy, then the following additional requirements
apply: the policy must provide a “retroactive date”
which must be on or before the
programs by any agency of the United States
execution date of the Contract; and the extended
reporting period may not be less than five years
Government or of the state in which the work under this
contract is to be performed.
following the completion date of the Contract.
(c) The Contractor shall be as fully responsible for the acts or
omissions of its subcontractors, and of persons either
directly or indirectly employed by them as for the acts or
omissions of persons directly employed by the
(3) Automobile Liability on owned and non -owned motor
vehicles used on the site(s) or in connection therewith
for a combined single limit for bodily injury and
property damage of not less than $
Contractor.
[Contracting Officer insert amount] per occurrence.
(d) The Contractor shall insert appropriate clauses in all
(b) Before commencing work, the Contractor shall furnish the
subcontracts to bind subcontractors to the terms and
conditions of this contract insofar as they are applicable
PHA with a certificate of insurance evidencing that
Builder’s Risk (fire and extended coverage) Insurance on
all work in place and/or materials stored at the building
site(s), including foundations and building equipment, is
in force. The Builder’s Risk Insurance shall be for the
benefit of the Contractor and the PHA as their interests
may appear and each shall be named in the policy or
policies as an insured. The Contractor in installing
equipment supplied by the PHA shall carry insurance on
such equipment from the time the Contractor takes
possession thereof until the Contract work is accepted by
the PHA. The Builder’s Risk Insurance need not be
carried on excavations, piers, footings, or foundations
until such time as work on the superstructure is started. It
need not be carried on landscape work. Policies shall
furnish coverage at all times for the full cash value of all
completed construction, as well as materials in place
and/or stored at the site(s), whether or not partial
payment has been made by the PHA. The Contractor
may terminate this insurance on buildings as of the date
taken over for occupancy by the PHA. The Contractor is
not required to carry Builder’s Risk Insurance for
modernization work which does not involve structural
alterations or additions and where the PHA’s existing fire
and extended coverage policy can be endorsed to
to the work of subcontractors.
(e) Nothing contained in this contract shall create any
contractual relationship between any subcontractor and
the PHA or between the subcontractor and HUD.
38. Subcontracting with Small and Minority Firms,
Women’s Business Enterprise, and Labor Surplus
Area Firms
The Contractor shall take the following steps to ensure
that, whenever possible, subcontracts are awarded to
small business firms, minority firms, women’s business
enterprises, and labor surplus area firms:
(a) Placing qualified small and minority businesses and
women’s business enterprises on solicitation lists;
(b) Ensuring that small and minority businesses and
women’s business enterprises are solicited whenever
they are potential sources;
(c) Dividing total requirements, when economically feasible,
into smaller tasks or quantities to permit maximum
participation by small and minority businesses and
women’s business enterprises;
(d) Establishing delivery schedules, where the requirements
include such work.
of the contract permit, which encourage participation by
small and minority businesses and women’s business
(c) All insurance shall be carried with companies which are
enterprises; and
financially responsible and admitted to do business in the
State in which the project is located. If any such
insurance is due to expire during the construction period,
the Contractor (including subcontractors, as applicable)
shall not permit the coverage to lapse and shall furnish
evidence of coverage to the Contracting Officer. All
certificates of insurance, as evidence of coverage, shall
provide that no coverage may be canceled or non-
renewed by the insurance company until at least 30 days
prior written notice has been given to the Contracting
Officer.
(e) Using the services and assistance of the U.S. Small
Business Administration, the Minority Business
Development Agency of the U.S. Department of
Commerce, and State and local governmental small
business agencies.
39. Equal Employment Opportunity
During the performance of this contract, the Contractor
agrees as follows:
(a) The Contractor shall not discriminate against any
employee or applicant for employment because of race,
37. Subcontracts
color, religion, sex, national origin, or handicap.
(b) The Contractor shall take affirmative action to ensure that
(a) Definitions. As used in this contract -
applicants are employed, and that employees are treated
during employment without regard to their race, color,
religion, sex, national origin, or handicap. Such action
shall include, but not be limited to, (1) employment, (2)
upgrading, (3) demotion, (4) transfer, (5) recruitment or
recruitment advertising, (6) layoff or termination, (7) rates
of pay or other forms of compensation, and (8) selection
for training, including apprenticeship.
(1) “Subcontract” means any contract, purchase order, or
other purchase agreement, including modifications
and change orders to the foregoing, entered into by a
subcontractor to furnish supplies, materials,
equipment, and services for the performance of the
prime contract or a subcontract.
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(c) The Contractor shall post in conspicuous places available
(a) The work to be performed under this contract is subject to
the requirements of section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701u
(section 3). The purpose of section 3 is to ensure that
employment and other economic opportunities generated
by HUD assistance or HUD-assisted projects covered by
section 3, shall, to the greatest extent feasible, be directed
to low- and very low-income persons, particularly persons
who are recipients of HUD assistance for
to employees and applicants for employment the notices
to be provided by the Contracting Officer that explain this
clause.
(d) The Contractor shall, in all solicitations or
advertisements for employees placed by or on behalf of
the Contractor, state that all qualified applicants will
receive consideration for employment without regard to
race, color, religion, sex, national origin, or handicap.
(e) The Contractor shall send, to each labor union or
housing.
representative of workers with which it has a collective
bargaining agreement or other contract or understanding,
the notice to be provided by the Contracting Officer
advising the labor union or workers’ representative of the
Contractor’s commitments under this clause, and post
copies of the notice in conspicuous places available to
(b) The parties to this contract agree to comply with HUD's
regulations in 24 CFR Part 135, which implement section
3. As evidenced by their execution of this contract, the
parties to this contract certify that they are under no
contractual or other impediment that would prevent them
from complying with the Part 135 regulations.
employees and applicants for employment.
(c) The contractor agrees to send to each labor organization
or representative of workers with which the contractor has
a collective bargaining agreement or other understanding,
if any, a notice advising the labor organization or workers'
representative of the contractor's commitments under this
section 3 clause, and will post copies of the notice in
conspicuous places at the work site where both
employees and applicants for training and employment
positions can see the notice. The notice shall describe the
section 3 preference, shall set forth minimum number and
job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; and the
name and location of the person(s) taking applications for
each of the positions; and the
(f) The Contractor shall comply with Executive Order 11246,
as amended, and the rules, regulations, and orders of the
Secretary of Labor.
(g) The Contractor shall furnish all information and reports
required by Executive Order 11246, as amended, Section
503 of the Rehabilitation Act of 1973, as amended, and
by rules, regulations, and orders of the Secretary of
Labor, or pursuant thereto. The Contractor shall permit
access to its books, records, and accounts by the
Secretary of Labor for purposes of investigation to
ascertain compliance with such rules, regulations, and
orders.
(h) In the event of a determination that the Contractor is not
in compliance with this clause or any rule, regulation, or
order of the Secretary of Labor, this contract may be
canceled, terminated, or suspended in whole or in part,
and the Contractor may be declared ineligible for further
Government contracts, or Federally assisted construction
contracts under the procedures authorized in Executive
Order 11246, as amended. In addition, sanctions may be
imposed and remedies invoked against the Contractor as
provided in Executive Order 11246, as amended, the
rules, regulations, and orders of the Secretary of Labor,
anticipated date the work shall begin.
(d) The contractor agrees to include this section 3 clause in
every subcontract subject to compliance with regulations
in 24 CFR Part 135, and agrees to take appropriate
action, as provided in an applicable provision of the
subcontract or in this section 3 clause, upon a finding that
the subcontractor is in violation of the regulations in 24
CFR Part 135. The contractor will not subcontract with
any subcontractor where the contractor has notice or
knowledge that the subcontractor has been found in
or as otherwise provided by law.
violation of the regulations in 24 CFR Part 135.
(i) The Contractor shall include the terms and conditions of
(e) The contractor will certify that any vacant employment
this clause in every subcontract or purchase order unless
exempted by the rules, regulations, or orders of the
Secretary of Labor issued under Executive Order 11246,
as amended, so that these terms and conditions will be
binding upon each subcontractor or vendor. The
Contractor shall take such action with respect to any
subcontract or purchase order as the Secretary of
Housing and Urban Development or the Secretary of
Labor may direct as a means of enforcing such
provisions, including sanctions for noncompliance;
provided that if the Contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor
as a result of such direction, the Contractor may request
the United States to enter into the litigation to protect the
positions, including training positions, that are filled (1)
after the contractor is selected but before the contract is
executed, and (2) with persons other than those to whom
the regulations of 24 CFR Part 135 require employment
opportunities to be directed, were not filled to circumvent
the contractor's obligations under 24 CFR Part 135.
(f) Noncompliance with HUD's regulations in 24 CFR Part
135 may result in sanctions, termination of this contract
for default, and debarment or suspension from future
HUD assisted contracts.
interests of the United States.
(g) With respect to work performed in connection with section
3 covered Indian housing assistance, section 7(b) of the
Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450e) also applies to the work to be
performed under this contract. Section 7(b) requires that
to the greatest extent feasible (i) preference and
opportunities for training and employment shall be given
to Indians, and (ii) preference in the award of contracts
and subcontracts shall be given to Indian organizations
and Indian-owned Economic Enterprises. Parties to this
contract that are subject to the provisions of section 3
and section 7(b)agree to comply with section 3 to the
maximum extent feasible, but not in derogation of
compliance with section 7(b).
(j) Compliance with the requirements of this clause shall be
to the maximum extent consistent with, but not in
derogation of, compliance with section 7(b) of the Indian
Self-Determination and Education Assistance Act and the
Indian Preference clause of this contract.
40. Employment, Training, and Contracting
Opportunities for Low-Income Persons, Section 3 of
the Housing and Urban Development Act of 1968.
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41. Interest of Members of Congress
(a) The PHA, HUD, or Comptroller General of the United
No member of or delegate to the Congress of the United
States of America shall be admitted to any share or part of
this contract or to any benefit that may arise therefrom.
States, or any of their duly authorized representatives
shall, until 3 years after final payment under this contract,
have access to and the right to examine any of the
Contractor’s directly pertinent books, documents, papers,
or other records involving transactions related to this
contract for the purpose of making audit, examination,
42. Interest of Members, Officers, or Employees and
Former Members, Officers, or Employees
excerpts, and transcriptions.
No member, officer, or employee of the PHA, no member
of the governing body of the locality in which the project
is situated, no member of the governing body of the
locality in which the PHA was activated, and no other
public official of such locality or localities who exercises
any functions or responsibilities with respect to the
project, shall, during his or her tenure, or for one year
thereafter, have any interest, direct or indirect, in this
contract or the proceeds thereof.
(b) The Contractor agrees to include in first-tier subcontracts
under this contract a clause substantially the same as
paragraph (a) above. “Subcontract,” as used in this
clause, excludes purchase orders not exceeding
$10,000.
43. Limitations on Payments made to Influence Certain
Federal Financial Transactions
(c) The periods of access and examination in paragraphs (a)
and (b) above for records relating to (1) appeals under the
Disputes clause of this contract, (2) litigation or settlement
of claims arising from the performance of this contract, or
(3) costs and expenses of this contract to which the PHA,
HUD, or Comptroller General or any of their duly
authorized representatives has taken exception shall
continue until disposition of such appeals, litigation,
claims, or exceptions.
(a) The Contractor agrees to comply with Section 1352 of
Title 31, United States Code which prohibits the use of
Federal appropriated funds to pay any person for
influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, and
officer or employee of Congress, or an employee of a
Member of Congress in connection with any of the
following covered Federal actions: the awarding of any
Federal contract; the making of any Federal grant; the
making of any Federal loan; the entering into of any
cooperative agreement; or the modification of any
46. Labor Standards - Davis-Bacon and Related Acts
If the total amount of this contract exceeds $2,000, the
Federal labor standards set forth in the clause below shall
apply to the development or construction work to be
performed under the contract.
(a) Minimum Wages.
Federal contract, grant, loan, or cooperative agreement.
(1) All laborers and mechanics employed under this
contract in the development or construction of the
project(s) involved will be paid unconditionally and not
less often than once a week, and without subsequent
deduction or rebate on any account (except such payroll
deductions as are permitted by regulations issued by the
Secretary of Labor under the Copeland Act (29 CFR Part
3)), the full amount of wages and bona fide fringe benefits
(or cash equivalents thereof) due at time of payment
computed at rates not less than those contained in the
wage determination of the Secretary of Labor which is
attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist
between the Contractor and such laborers and
mechanics. Contributions made or costs reasonably
anticipated for bona fide fringe benefits under Section
1(b)(2) of the Davis-Bacon Act on behalf of laborers or
mechanics are considered wages paid to such laborers or
mechanics, subject to the provisions of 29 CFR
5.5(a)(1)(iv); also, regular contributions made or costs
incurred for more than a weekly period (but not less often
than quarterly) under plans, funds, or programs which
cover the regular weekly period, are deemed to be
constructively made or incurred during such weekly
period. Such laborers and mechanics shall be paid the
appropriate wage rate and fringe benefits in the wage
determination for the classification of work actually
performed, without regard to skill, except as provided in
29 CFR 5.5(a)(4). Laborers or mechanics performing
(b) The Contractor further agrees to comply with the
requirement of the Act to furnish a disclosure (OMB
Standard Form LLL, Disclosure of Lobbying Activities) if
any funds other than Federal appropriated funds
(including profit or fee received under a covered Federal
transaction) have been paid, or will be paid, to any person
for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a
Member of Congress in connection with a Federal
contract, grant, loan, or cooperative agreement.
44. Royalties and Patents
The Contractor shall pay all royalties and license fees. It
shall defend all suits or claims for infringement of any
patent rights and shall save the PHA harmless from loss
on account thereof; except that the PHA shall be
responsible for all such loss when a particular design,
process or the product of a particular manufacturer or
manufacturers is specified and the Contractor has no
reason to believe that the specified design, process, or
product is an infringement. If, however, the Contractor
has reason to believe that any design, process or product
specified is an infringement of a patent, the Contractor
shall promptly notify the Contracting Officer. Failure to
give such notice shall make the Contractor responsible
for resultant loss.
work in more than one classification may be
45. Examination and Retention of Contractor’s Records
compensated at the rate specified for each classification
for the time actually worked therein; provided, that the
employer’s payroll records accurately set forth the time
spent in each classification in which work is performed.
The wage determination (including any additional
classification and wage rates conformed under 29 CFR
5.5(a)(1)(ii) and the Davis-Bacon poster (WH-1321) shall
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be posted at all times by the Contractor and its
subcontractors at the site of the work in a prominent and
accessible place where it can be easily seen by the
amount of any costs reasonably anticipated in
providing bona fide fringe benefits under a plan or
program; provided, that the Secretary of Labor has
found, upon the written request of the Contractor, that
the applicable standards of the Davis-Bacon Act have
been met. The Secretary of Labor may require the
Contractor to set aside in a separate account assets
for the meeting of obligations under the plan or
workers.
(2) (i) Any class of laborers or mechanics, including
helpers, which is not listed in the wage
determination and which is to be employed under
the contract shall be classified in conformance with
the wage determination. HUD shall approve an
additional classification and wage rate and fringe
benefits therefor only when all the following criteria
have been met: (A) The work to be performed by
the classification requested is not performed by a
classification in the wage determination; and (B)
The classification is utilized in the area by the
construction industry; and (C) The proposed wage
rate, including any bona fide fringe benefits, bears
a reasonable relationship to the wage rates
contained in the wage
program.
determination.
(b) Withholding of funds. HUD or its designee shall, upon its
own action or upon written request of an authorized
representative of the Department of Labor, withhold or
cause to be withheld from the Contractor under this
contract or any other Federal contract with the same
prime Contractor, or any other Federally-assisted
contract subject to Davis-Bacon prevailing wage
requirements, which is held by the same prime
Contractor, so much of the accrued payments or
advances as may be considered necessary to pay
laborers and mechanics, including apprentices, trainees,
and helpers, employed by the Contractor or any
subcontractor the full amount of wages required by the
contract. In the event of failure to pay any laborer or
mechanic, including any apprentice, trainee, or helper,
employed or working in the construction or development
of the project, all or part of the wages required by the
contract, HUD or its designee may, after written notice to
the Contractor, take such action as may be necessary to
cause the suspension of any further payment, advance,
or guarantee of funds until such violations have ceased.
HUD or its designee may, after written notice to the
Contractor, disburse such amounts withheld for and on
account of the Contractor or subcontractor to the
(ii) If the Contractor and the laborers and mechanics
to be employed in the classification (if known), or
their representatives, and HUD or its designee
agree on the classification and wage rate
(including the amount designated for fringe
benefits where appropriate), a report of the action
taken shall be sent by HUD or its designee to the
Administrator of the Wage and Hour Division,
Employee Standards Administration, U.S.
Department of Labor, Washington, DC 20210.
The Administrator, or an authorized
representative, will approve, modify, or disapprove
every additional classification action within 30 days
of receipt and so advise HUD or its designee or will
notify HUD or its designee within the 30-day period
that additional time is necessary.
respective employees to whom they are due.
(c) Payrolls and basic records.
(1) Payrolls and basic records relating thereto shall be
(iii) In the event the Contractor, the laborers or
maintained by the Contractor during the course of the
work and preserved for a period of three years
thereafter for all laborers and mechanics working in
the construction or development of the project. Such
records shall contain the name, address, and social
security number of each such worker, his or her
correct classification, hourly rates of wages paid
(including rates of contributions or costs anticipated
for bona fide fringe benefits or cash equivalents
thereof of the types described in section 1(b)(2)(B) of
the Davis-Bacon Act), daily and weekly number of
hours worked, deductions made, and actual wages
paid. Whenever the Secretary of Labor has found,
under 29 CFR 5.5(a)(1)(iv), that the wages of any
laborer or mechanic include the amount of costs
reasonably anticipated in providing benefits under a
plan or program described in section 1(b)(2)(B) of the
Davis-Bacon Act, the Contractor shall maintain
records which show that the commitment to provide
such benefits is enforceable, that the plan or program
is financially responsible, and that the plan or
program has been communicated in writing to the
laborers or mechanics affected, and records which
show the costs anticipated or the actual cost incurred
in providing such benefits. Contractors employing
apprentices or trainees under approved programs
shall maintain written evidence of the registration of
apprenticeship programs and certification of trainee
programs, the registration of the apprentices and
trainees, and the ratios and wage rates prescribed in
the applicable programs.
mechanics to be employed in the classification or
their representatives, and HUD or its designee do
not agree on the proposed classification and wage
rate (including the amount designated for fringe
benefits, where appropriate), HUD or its designee
shall refer the questions, including the views of all
interested parties and the recommendation of HUD
or its designee, to the Administrator of the Wage
and Hour Division for determination. The
Administrator, or an authorized representative, will
issue a determination within 30 days of receipt and
so advise HUD or its designee or will notify HUD or
its designee within the 30-day period that
additional time is necessary.
(iv) The wage rate (including fringe benefits where
appropriate) determined pursuant to
subparagraphs (a)(2)(ii) or (iii) of this clause shall
be paid to all workers performing work in the
classification under this contract from the first day
on which work is performed in classification.
(3) Whenever the minimum wage rate prescribed in the
contract for a class of laborers or mechanics includes
a fringe benefit which is not expressed as an hourly
rate, the Contractor shall either pay the benefit as
stated in the wage determination or shall pay another
bona fide fringe benefit or an hourly cash equivalent
thereof.
(4) If the Contractor does not make payments to a trustee
or other third person, the Contractor may consider as
part of the wages of any laborer or mechanic the
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(2) (i) The Contractor shall submit weekly for each week
make such records available may be grounds for
debarment action pursuant to 29 CFR 5.12.
in which any contract work is performed a copy of
all payrolls to the Contracting Officer for
(d) (1) Apprentices. Apprentices will be permitted to work at
transmission to HUD or its designee. The payrolls
submitted shall set out accurately and completely
all of the information required to be maintained
under subparagraph (c)(1) of this clause. This
information may be submitted in any form desired.
Optional Form WH-347 (Federal Stock Number
029-005-00014-1) is available for this purpose and
may be purchased from the Superintendent of
Documents, U.S. Government Printing Office,
Washington, D.C. 20402. The Contractor is
responsible for the submission of copies of
payrolls by all subcontractors. (Approved by the
Office of Management and Budget under OMB
less than the predetermined rate for the work they
performed when they are employed pursuant to and
individually registered in a bona fide apprenticeship
program registered with the U.S. Department of
Labor, Employment and Training Administration,
Office of Apprenticeship and Training, Employer and
Labor Services (OATELS), or with a State
Apprenticeship Agency recognized by OATELS, or if a
person is employed in his or her first 90 days of
probationary employment as an apprentice in such an
apprenticeship program, who is not individually
registered in the program, but who has been certified
by OATELS or a State Apprenticeship Agency (where
Control Number 1214-0149.)
appropriate) to be eligible for probationary
(ii) Each payroll submitted shall be accompanied by a
employment as an apprentice. The allowable ratio of
apprentices to journeymen on the job site in any craft
classification shall not be greater than the ratio
permitted to the Contractor as to the entire work force
under the registered program. Any worker listed on a
payroll at an apprentice wage rate, who is not
registered or otherwise employed as stated in this
paragraph, shall be paid not less than the applicable
wage rate on the wage determination for the
classification of work actually performed. In addition,
any apprentice performing work on the job site in
excess of the ratio permitted under the registered
program shall be paid not less than the applicable
wage rate on the wage determination for the work
actually performed. Where a contractor is performing
construction on a project in a locality other than that in
which its program is registered, the ratios and wage
rates (expressed in percentages of the journeyman’s
“Statement of Compliance,” signed by the
Contractor or subcontractor or his or her agent
who pays or supervises the payment of the
persons employed under the contract and shall
certify the following:
(A) That the payroll for the payroll period contains
the information required to be maintained
under paragraph (c) (1) of this clause and that
such information is correct and complete;
(B) That each laborer or mechanic (including each
helper, apprentice, and trainee) employed on
the contract during the payroll period has been
paid the full weekly wages earned, without
rebate, either directly or indirectly, and that no
deductions have been made either directly or
indirectly from the full wages earned, other
than permissible deductions as set forth in 29
CFR Part 3; and
hourly rate) specified in the Contractor’s or
(C) That each laborer or mechanic has been paid
not less than the applicable wage rates and
fringe benefits or cash equivalents for the
classification of work performed, as specified
in the applicable wage determination
subcontractor’s registered program shall be observed.
Every apprentice must be paid at not less than the rate
specified in the registered program for the apprentice’s
level of progress, expressed as a percentage of the
journeyman hourly rate specified in the applicable
wage determination. Apprentices shall be paid fringe
benefits in accordance with the provisions of the
apprenticeship program. If the apprenticeship program
does not specify fringe benefits, apprentices must be
paid the full amount of fringe benefits listed on the
wage determination for the applicable classification. If
the Administrator of the Wage and Hour Division
determines that a different practice prevails for the
applicable apprentice classification, fringes shall be
paid in accordance with that determination. In the
event OATELS, or a State Apprenticeship Agency
recognized by OATELS, withdraws approval of an
apprenticeship program, the Contractor will no longer
be permitted to utilize apprentices at less than the
applicable predetermined rate for the work performed
until an acceptable
incorporated into the contract.
(iii) The weekly submission of a properly executed
certification set forth on the reverse side of
Optional Form WH-347 shall satisfy the
requirements for submission of the “Statement of
Compliance” required by subparagraph (c)(2)(ii) of
this clause.
(iv) The falsification of any of the above certifications
may subject the Contractor or subcontractor to civil
or criminal prosecution under Section 1001 of Title
18 and Section 3729 of Title 31 of the United
States Code.
(3) The Contractor or subcontractor shall make the
records required under subparagraph (c)(1) available
for inspection, copying, or transcription by authorized
representatives of HUD or its designee, the
Contracting Officer, or the Department of Labor and
shall permit such representatives to interview
employees during working hours on the job. If the
Contractor or subcontractor fails to submit the
required records or to make them available, HUD or
program is approved.
(2) Trainees. Except as provided in 29 CFR 5.16,
its designee may, after written notice to the
trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they
are employed pursuant to and individually registered in
a program which has received prior approval,
evidenced by formal certification by the U.S.
Department of Labor, Employment and Training
Administration. The ratio of trainees to journeymen on
the job site shall not be greater than permitted under
Contractor, take such action as may be necessary to
cause the suspension of any further payment,
advance, or guarantee of funds. Furthermore, failure
to submit the required records upon request or to
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the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less
than the rate specified in the approved program for the
trainee’s level of progress, expressed as a percentage
of the journeyman hourly rate specified in the
applicable wage determination. Trainees shall be paid
fringe benefits in accordance with the provisions of the
trainee program. If the trainee program does not
mention fringe benefits, trainees shall be paid the full
amount of fringe benefits listed in the wage
determination unless the Administrator of the Wage
and Hour Division determines that there is an
apprenticeship program associated with the
corresponding journeyman wage rate in the wage
determination which provides for less than full fringe
benefits for apprentices. Any employee listed on the
payroll at a trainee rate who is not registered and
participating in a training plan approved by the
Employment and Training Administration shall be paid
not less than the applicable wage rate in the wage
determination for the classification of work actually
performed. In addition, any trainee performing work on
the job site in excess of the ratio permitted under the
registered program shall be paid not less than the
applicable wage rate in the wage determination for the
work actually performed. In the event the Employment
and Training Administration withdraws approval of a
training program, the Contractor will no longer be
permitted to utilize trainees at less than the applicable
predetermined rate for the work performed
(2) No part of this contract shall be subcontracted to any
person or firm ineligible for award of a United States
Government contract by virtue of section 3(a) of the
Davis-Bacon Act or 29 CFR 5.12(a)(1).
(3) The penalty for making false statements is prescribed
in the U. S. Criminal Code, 18 U.S.C. 1001.
(j) Contract Work Hours and Safety Standards Act. As used
in this paragraph, the terms “laborers” and “mechanics”
include watchmen and guards.
(1) Overtime requirements. No contractor or
subcontractor contracting for any part of the contract
work which may require or involve the employment of
laborers or mechanics, including watchmen and
guards, shall require or permit any such laborer or
mechanic in any workweek in which the individual is
employed on such work to work in excess of 40 hours
in such workweek unless such laborer or mechanic
receives compensation at a rate not less than one and
one-half times the basic rate of pay for all hours
worked in excess of 40 hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated
damages. In the event of any violation of the
provisions set forth in subparagraph (j)(1) of this
clause, the Contractor and any subcontractor
responsible therefor shall be liable for the unpaid
wages. In addition, such Contractor and
until an acceptable program is approved.
subcontractor shall be liable to the United States (in
the case of work done under contract for the District
of Columbia or a territory, to such District or to such
territory), for liquidated damages. Such liquidated
damages shall be computed with respect to each
individual laborer or mechanic (including watchmen
and guards) employed in violation of the provisions
set forth in subparagraph (j)(1) of this clause, in the
sum of $10 for each calendar day on which such
individual was required or permitted to work in excess
of the standard workweek of 40 hours without
payment of the overtime wages required by
provisions set forth in subparagraph (j)(1) of this
(3) Equal employment opportunity. The utilization of
apprentices, trainees, and journeymen under this
clause shall be in conformity with the equal
employment opportunity requirements of Executive
Order 11246, as amended, and 29 CFR Part 30.
(e) Compliance with Copeland Act requirements. The
Contractor shall comply with the requirements of 29 CFR
Part 3, which are hereby incorporated by reference in this
contract.
clause.
(f) Contract termination; debarment. A breach of this contract
clause may be grounds for termination of the contract and
for debarment as a Contractor and a subcontractor as
provided in 29 CFR 5.12.
(3) Withholding for unpaid wages and liquidated
(g) Compliance with Davis-Bacon and related Act
requirements. All rulings and interpretations of the Davis-
damages. HUD or its designee shall upon its own
action or upon written request of an authorized
representative of the Department of Labor withhold or
cause to be withheld, from any moneys payable on
account of work performed by the Contractor or
subcontractor under any such contract or any Federal
contract with the same prime Contractor, or any other
Federally-assisted contract subject to the Contract
Work Hours and Safety Standards Act, which is held
by the same prime Contractor, such sums as may be
determined to be necessary to satisfy any liabilities of
such Contractor or subcontractor for unpaid wages
and liquidated damages as provided in the provisions
set forth in subparagraph (j)(2) of this clause.
(k) Subcontracts. The Contractor or subcontractor shall insert
in any subcontracts all the provisions contained in this
clause, and such other clauses as HUD or its designee
may by appropriate instructions require, and also a
clause requiring the subcontractors to include these
provisions in any lower tier subcontracts. The prime
Contractor shall be responsible for the compliance by any
subcontractor or lower tier subcontractor with all these
provisions.
Bacon and related Acts contained in 29 CFR Parts 1, 3,
and 5 are herein incorporated by reference in this
contract.
(h) Disputes concerning labor standards. Disputes arising out
of the labor standards provisions of this clause shall not
be subject to the general disputes clause of this contract.
Such disputes shall be resolved in accordance with the
procedures of the Department of Labor set forth in 29
CFR Parts 5, 6, and 7. Disputes within the meaning of
this clause include disputes between the Contractor (or
any of its subcontractors) and the PHA, HUD, the U.S.
Department of Labor, or the employees or their
representatives.
(i) Certification of eligibility.
(1) By entering into this contract, the Contractor certifies
that neither it (nor he or she) nor any person or firm
who has an interest in the Contractor’s firm is a
person or firm ineligible to be awarded contracts by
the United States Government by virtue of section
3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
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47. Non-Federal Prevailing Wage Rates
(a) Any prevailing wage rate (including basic hourly rate and
any fringe benefits), determined under State or tribal law
to be prevailing, with respect to any employee in any
trade or position employed under the contract, is
inapplicable to the contract and shall not be enforced
against the Contractor or any subcontractor, with respect
to employees engaged under the contract whenever
such non-Federal prevailing wage rate exceeds:
(1) The applicable wage rate determined by the Secretary
of Labor pursuant to the Davis-Bacon Act (40 U.S.C.
3141 et seq.) to be prevailing in the locality with
respect to such trade;
(b) An applicable apprentice wage rate based thereon
specified in an apprenticeship program registered with
the U.S. Department of Labor (DOL) or a DOL-
recognized State Apprenticeship Agency; or
(c) An applicable trainee wage rate based thereon specified
in a DOL-certified trainee program.
48. Procurement of Recovered Materials.
(a) In accordance with Section 6002 of the Solid Waste
Disposal Act, as amended by the Resource Conservation
and Recovery Act, the Contractor shall procure items
designated in guidelines of the Environmental Protection
Agency (EPA) at 40 CFR Part 247 that contain the highest
percentage of recovered materials practicable, consistent
with maintaining a satisfactory level of competition. The
Contractor shall procure items designated in the EPA
guidelines that contain the highest percentage of
recovered materials practicable unless the Contractor
determines that such items: (1) are not reasonably
available in a reasonable period of time; (2) fail to meet
reasonable performance standards, which shall be
determined on the basis of the guidelines of the National
Institute of Standards and Technology, if applicable to the
item; or (3) are only available at an
unreasonable price.
(b) Paragraph (a) of this clause shall apply to items
purchased under this contract where: (1) the
Contractor purchases in excess of $10,000 of the item
under this contract; or (2) during the preceding
Federal fiscal year, the Contractor: (i) purchased any
amount of the items for use under a contract that was
funded with Federal appropriations and was with a
Federal agency or a State agency or agency of a
political subdivision of a State; and (ii) purchased a
total of in excess of $10,000 of the item both under
and outside that contract.
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PUBLIC HOUSING AUTHORITY REQUIREMENTS
Contractors, Service Providers, Professional & Technical Providers and their subcontractors are advised
that HUD “Section 3” regulations apply.
Section 3 Overview
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 (12 U.S.C. 1701u)
(section 3), which recognizes that HUD funds are typically one of the largest sources of federal funding
expended in communities. Section 3 is intended to ensure that employment and other economic
opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and
consistent with existing Federal, State and local laws and regulations, be directed to low- and very low
income persons, particularly those who are recipients of government assistance for housing, and to
business concerns which provide economic opportunities to low- and very low-income persons.
The City of Chandler’s Housing Rehabilitation Program uses federal funding through HUD, and is
required to administer the Section 3 provisions, and follow 24 CFR- HOUSING AND URBAN
DEVELOPMENT, Part 135 - ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS of
the Code of Federal Regulation pertaining to low and very low income person(s). Contractors, Service
Providers, Professional & Technical Providers and their subcontractors are advised that HUD “Section 3”
regulations apply to all program activities which generate employment opportunities.
ATTACHMENTS: COMPLETE AND SUBMIT TO THE CITY OF CHANDLER
Attachment 1/ Statement of Workforce Needs - (Fill out, sign, date and submit to the City of
Chandler)
Attachment 2/ Certification for Business Concerns Seeking SECTION 3 Preference in
Contracting and Demonstration of Capacity – Fill out, sign, date and submit to the City of
Chandler. All information is required if seeking Section 3 preference or not.)
Attachment 3/ HUD FY 2018 Income – (Required document; sign, date and submit with sealed
bid acknowledging that this document was provided)
Attachment 4/ Section 3 Income Verification/ Self-Certification-(Fill out, sign, date and submit
1 form for every employee to the City of Chandler only if applying for self-certification for Section
3)
Attachment 5/ Section 3 Compliance Certification- (Required document; fill out, sign, date and
submit to the City of Chandler)
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REQUIREMENTS /ATTACHMENT 1
SECTION 3 STATEMENT OF WORKFORCE NEEDS
The Workforce Need Statement Worksheet gathers the following required information:
1.
employees you will need on this project– how many people will you to hire?
2.
employees currently filling each position – how many people are already working?
3.
estimated employees needed to fill each position – subtract the number of employees
currently filling each position from number of employees needed for each positions to complete
the estimated number of employees.
4.
estimated number of Section 3 employees to be hired to fill the open positions – use column
3 to estimate the number of Section 3 residents you anticipate hiring.
Professional Service Provider Information:
Company Name: ______________________________________________________________
Owner(s) Name:______________________________________________________________
Address: ____________________________________________________________________
Phone: _____________________________ Email:___________________________________
TYPE OF BUSINESS:
Corporation
Partnership
Sole Proprietorship
Estimated Project Workforce Breakdown
(Do not leave blank spaces)
Job Category
Total Estimated
Positions
Needed
(this Project)
Number of
positions
occupied by
permanent
employees
Number of
positions not
occupied
Number of positions
to be filled with
Section 3 Residents
(this project)
Professionals
Technicians
Office/Clerical
Officials/Managers
Sales
Craft Workers
(skilled)
Equipment
Operators
(semi-skilled)
Laborers (unskilled)
Service Workers
Other Construction
Trades
TOTALS
By signing below, I am certifying that the above information is an accurate estimate of workforce needs
for this project.
__________________________________________
_____/_____/_____
Authorized Signature
Date
Sunburst Mechanical, Inc.
James Wendel and Chelsea Wendel
4621 W. Tierra Buena Glendale, AZ 85306
623-223-0687
jwendel@sunburstmechanical.com
x
22
6
1
2
1
10
6
1
2
9
1
1
10
25
2021
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REQUIREMENTS /ATTACHMENT 2
CERTIFICATION FOR SEEKING SECTION 3 PREFERENCE
IN CONTRACTING WITH THE CITY OF CHANDLER PROJECTS & DEMONSTRATION OF CAPABILITY
Company Name: ___________________________________________________________
Company Owner(s): ________________________________________________________
Address: _________________________________________________________________
Phone: ___________________ Fax:__________________ Email: ______________________
Business Type:
Corporation
Partnership
Sole Proprietorship
SECTION 3 DETERMINATION:
If the answer to any of the questions below is YES, the business qualifies as a Section 3 Business Concern.
Please provide the required documentation as needed to the City of Chandler.
1. Is the business owned (51% or more) by individuals whose household incomes are NO GREATER THAN
80% of Area Median Income? (Please see attachment 3)
Yes
No
If yes, the business is considered a ‘Section 3 Resident-Owned Enterprise’. One form of
documentation is needed for each of the business owners:
Federal Income Tax Returns
W-2 Income Statements
Paycheck Stubs
Evidence of Public Assistance
Other:
List of all current Full Time employees (attach a separate sheet to this form)
Self-Certification Income Form (see attachment 4) for all employees earning less than 80% of median
income
3. Will you subcontract more than 25% of this contract with any business that is either 51% owned by
Section 3 residents or 30% or more of its employees are Section 3 residents?
Yes
No
If yes, please provide the following documentation:
List of subcontracted Section 3 business(es) and subcontract amount
Evidence which identifies the subcontractor is considered a Section 3 Business Concern (Sections 1
and 2 above provide examples of evidence to be used to identify a Section 3 Business Concern)
__________________________________________
_____/_____/_____
Authorized Signature
Date
Sunburst Mechanical, Inc.
James Wendel and Chelsea Wendel
4621 W. Tierra Buena Glendale, AZ 85306
623-223-0687
N/A
jwendel@sunburstmechanical.com
x
x
2. Do 30% (or more) of your full time, permanent employees have household incomes that are NO
GREATER THAN 80% of Area Median Income? (Please see attachment 3)
Yes
x No
If yes, the business is considered a Section 3 Business Concern. Please provide the following:
x
10
25
2021
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HUD FY 2021 INCOME LIMITS - MARICOPA COUNTY
CDBG and HOME FUNDED PROGRAMS/PROJECTS
The FY 2021 Income Limits are in effect as of July 1, 2021. For all CDBG & HOME programs/projects, moderate-income is
defined at or below 80% of Area Median Income (AMI) but greater than 50% AMI; low-income is defined at or below 50% of AMI.
2019 Income Limit
Categories
MAXIMUM INCOME BY HOUSEHOLD SIZE
Persons In Household
1
2
3
4
5
6
7
8
0-30% AMI
(Extremely Low Income)
16,600
19,000
21,350
23,700
25,600
27,500
29,400
31,300
31 - 50%
(Very Low Income)
27,650
31,600
35,550
39,500
42,700
45,850
49,000
52,150
51-60%
(Low Income)
33,180
37,920
42,660
47,400
51,240
55,020
58,800
62,580
61-80%
(Moderate Income)
44,250
50,600
56,900
63,200
68,300
73,350
78,400
83,450
72,900 median
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REQUIREMENTS /ATTACHMENT 4
SECTION 3 INCOME VERIFICATION AND SELF CERTIFICATION
FOR PERMANENT FULLTIME EMPLOYEES
Date:
Last 4 No.SSN
Name:
Last Name
First Name
M.I.
Address:
Street
City
Zip
Male:
Female:
Phone No. _______________________
It is the policy of these employers to provide equal opportunity to all of the employees and applicants for
employment and to ensure that there be no discrimination against any persons on the grounds of race,
color, national origin, political affiliation, sexual preference, age, or sex. The following questions are for
the purpose of tracking the hiring benefits of this project and are optional and will remain confidential.
This information will not be made a part of your personnel records.
Race/Ethnic Group (check)
African American
Am. Indian / Native American
Asian / Pacific Islander
Caucasian
Hispanic / Latino
Other
Annual Household Income (Please check one income box for your family size)
Yearly Household Income
Family Size
Less than
or
greater than
1
$44,250
or
$44,251
2
$50,600
or
$50,601
3
$56,900
or
$56,901
4
$63,200
or
$63,201
5
$68,300
or
$68,301
6
$73,350
or
$73,351
7
$78,400
or
$78,401
8
$83,450
or
$83,451
This income can be verified by:
Federal Income Tax Returns / W2s
Pay Stubs / Other Income
Stubs
__________Housing Authority
AHCCS, ALTCS, TANF, or
Food Stamp Recipient
Certification and Agreement
This information will be used to ensure compliance with U.S. Department of Housing and Urban
Development Section 3 eligibility requirements. With your signature, you are certifying that the above
information is correct to the best of your knowledge; falsifying information on this form is a federal
offense. The penalty for making false statements is prescribed in the US Criminal Code 18 U.S.C. 1001.
__________________________________________
_____/_____/_____
Signature of Employee
Date
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REQUIREMENTS /ATTACHMENT 5
SECTION 3 COMPLIANCE CERTIFICATION
ECONOMIC OPPORTUNITIES FOR LOW AND VERY LOW INCOME PERSONS
The Section 3 Compliance Certification form is provided to ensure that each entity contracting with the
City of Chandler federally funded projects are aware of the requirements and clauses that will be
required in all Section 3 covered contracts.
The City of Chandler Housing & Redevelopment Division will ensure that the following clauses are
included in all Section 3 covered contracts. The Professional & Technical Service provider will be bound
by its provisions.
Every applicant, recipient, contracting part, Contractor, Professional & Technical Service providers and
subcontractors shall incorporate, or cause to be incorporated, in all Contractors for work in connection
with a Section 3 covered project, the following clause:
A.
The work to be performed under this contract is subject to the requirements of section 3 of
the Housing and Urban Development Act of 1968, as amended, 12 U.S. C. 170lu (section 3).
The purpose of section 3 is to ensure that employment and other economic opportunities
generated by HUD assistance of HUD-assisted projects covered by section 3, shall, to the
greatest extent feasible, be directed to low- and very low-income persons, particularly
persons who are recipients of HUD assistance for housing.
B.
The parties to this contract agree to comply with HUD’s regulations in 24 CFR part 135,
which implement section 3. As evidenced by their execution of this contract, the parties to
this contract certify that they are under no contractual or other impediment that would
prevent them from complying with the part 135 regulations.
C.
The Professional & Technical Service provider agrees to send to each labor organization or
representative of workers with which the Contractor has a collective bargaining agreement
or other understanding, if any, a notice advising the labor organization or workers’
representative of the Professional & Technical Service provider commitments under this
section 3 clause, and will post copies of the notice in conspicuous places at the work site
where both employees and applicants for training and employment positions can see the
notice. The notice shall describe the section 3 preference, shall set forth minimum number
and job titles subject to hire, availability of apprenticeship and training positions, the
qualifications for each; and the name and location of the person(s) taking applications for
each of the positions; and the anticipated date the work shall begin.
D. The Professional & Technical Service provider agrees to include this section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take
appropriate action, as provided in an applicable provision of the subcontract or in this
section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24
CFR part 135. The Professional & Technical Service provider will not subcontract with any
subcontractor where the Professional & Technical Service provider has notice or knowledge
that the subcontractor has been found in violation of the regulations in 24 CFR part 135.
E.
The Professional & Technical Service provider will certify that any vacant employment
positions, including training positions, that are filled (1) after the Professional & Technical
Service provider is selected but before the contract is executed, and (2) with persons other
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than those to whom the regulations of 24 CFR part 135 require employment opportunities
to be directed, were not filled to circumvent the Professional & Technical Service providers
obligations under CFR part 135.
F.
Noncompliance with HUD’s regulations in 24 CFR part 135 may result in sanctions,
termination of this contract for default, and debarment or suspension from future HUD
assisted contracts.
This form provides technical specifications as part of the HUD requirements pertaining to Section 3. The
Professional & Technical Service provider that is selected for this project will be required to provide this
form to any subcontractor hired for this project. If you are the selected Professional & Technical Service
provider for this project, you must agree to comply with Steps 1, 2 & 3 below:
1.
You must sign and date this form for every pay period in connection with this project and
include with your Pay Application, and Davis-Bacon Certified Payroll Report:
2.
In connection with this project, you must also complete, sign, date, and submit a progress report
for every pay period worked, to the City of Chandler.
I have read, understand, and agree to comply with these requirements as stated above.
_______________________________________________
Company Name (please print)
_______________________________________________
Authorized Name (please print)
_______________________________________________
Title of Person Authorized to Sign (please print)
_______________________________________________
Signature
Date: _10____/__25___/__2021___
Sunburst Mechanical, Inc.
Chelsea Wendel
Treasurer
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