REPLACEMENT OF CABINETS AND APPLIANCES, AND
INSTALLATION OF VCT FLOORING
LYERLY ELDERLY HOUSING DEVELOPMENT
HOUSTON, TEXAS 77022
IFB # 11-40
HOUSTON HOUSING AUTHORITY
PRESIDENT & CHIEF EXECUTIVE OFFICER
TABLE OF CONTENTS
Number Title Pages
Section 00030 Invitation for Bids 00030-1 through 3
Section 00031 Profile of the Houston Housing Authority 00031-1
Section 00032 Statement of Work 00032-1
Section 00033 General Requirements 00033-1
Section 00100 Instructions to Bidders 00100-1 through 6
Section 00120 Supplementary Instructions to Bidders 00120-1 through 2
Section 00300 Form of Bid 00300-1 through 3
Section 00410 Form of Bid Bond 00410-1 through 3
Section 00480 Form of Non-Collusive Affidavit 00480-1
Section 00481 Previous Participation Certification 00481-1 through 5
Section 00482 Representations, Certifications and Other
Statements of Bidders 00482-1 through 5
Section 00483 Contractor’s and/or Bidder’s Information, Fact Sheet and
Questionnaire (IFSQ) 00483-1 through15
Section 00484 M/WBE Participation (And Bidder’s Proposed MBE/WBE
Participation Form) 00484-1 through 2
Section 00490 Evaluation Criteria 00490-1
Section 00491 Conflict of Interest Questionnaire (Form CIQ) 00491-1 through 3
Table of Contents – Bidding Requirements Page1
2640 Fountain View Drive ■ Houston, Texas 77057 ■ 713.260.0500 P ■ 713.260.0547 TTY ■ www.housingforhouston.com
INVITATION FOR BIDS
The Houston Housing Authority hereby invites bids from general contractors offering to furnish all labor,
materials, equipment and necessary services required for the replacement of cabinets and appliances,
installation of VCT flooring, and asbestos abatement at Lyerly Elderly Housing Development, 75
Lyerly, Houston, Texas 77022, as stated in the specifications of Invitation for Bids No. 11-40. The work
must be in accordance with the specifications and the Statement of Work in this Invitation for Bids package.
Interested general contractors may obtain the bid package from:
Sarah Monigold, Purchasing Officer
Houston Housing Authority
2640 Fountainview, Suite 408
Houston, Texas 77057
(713) 260-0552 (713) 260-0810 (FAX)
Prospective bidders desiring any further information regarding this solicitation, must request it in writing,
seven (7) calendar days before the scheduled bid opening. Any information given to a prospective bidder
concerning this solicitation will be furnished promptly to all other prospective bidders in the form of a written
addendum to the solicitation. The request must be addressed to Sarah Monigold, Purchasing Officer, Houston
Housing Authority, 2640 Fountainview, Suite 408, Houston, Texas 77057, faxed to 713-260-0810 or emailed
All bids must be delivered to: Sarah Monigold, Purchasing Officer, Houston Housing Authority, 2640
Fountainview, Suite 408, Houston, Texas 77057. The bids submitted must be enclosed in a sealed envelope
and labeled as follows:
BID OFFERING TO PROVIDE LABOR AND MATERIALS FOR
REPLACEMENT OF CABINETS AND INSTALLATION OF VCT FLOORING
AT LYERLY ELDERLY HOUSING DEVELOPMENT
Invitation for Bids No. 11-40
October 26, 2011
2:00 p.m. local time
Invitation for Bids 00030-1
A Fair and Equal Employment Opportunity Agency. For assistance: Individuals with disabilities may contact the 504/ADA Administrator at 713-260-0528, TTY 713-260-0574 or 504ADA@housingforhouston.com
Bids must reach the Houston Housing Authority no later than 2:00 p.m., on October 26, 2011. Bids
received after the deadline will be rejected unless the conditions allowed for late bids exist for
No bid(s) will be considered for award if the bid is not responsive to all the requirements of this
solicitation. Non-responsive bid or bids which limit Houston Housing Authority’s rights will be
All Bids received prior to the deadline shall be opened publicly and read aloud in the Boardroom of
the Houston Housing Authority at 2:01 p.m. on October 26, 2011. No commitment will be made to
any bidder at the bid opening.
The bids received prior to the deadline will be evaluated according to the evaluation criteria outlined
in this Invitation for Bids and applicable Procurement Law and the contract will be awarded to the
lowest, most responsive and responsible bidder who meets the requirements of this Invitation for
A satisfactory bid guarantee or bid bond, executed by an acceptable surety on the Bid Bond Form
contained in the Project Manual, and in an amount equal to five percent (5%) of the greatest amount
of bid, shall be submitted with each bid. The successful bidder will be required to furnish and pay for
a satisfactory 100% Performance and Payment Bond(s).
Attention is called to the fact that not less than the minimum salaries and wages as set forth in the,
“Wage Determination,” “the General Conditions,” and the “Supplemental General Conditions” must
be paid on this project. All contractors shall provide Equal Opportunity Employment.
Bids may not be withdrawn for a period of ninety (90) days subsequent to the opening of bids without
the consent of the Owner.
A Pre-Bid Conference will be conducted in the Community Center at Lyerly Elderly Housing
Development, 75 Lyerly, Houston, TX 77022, at 10:00 A.M. on October 12 2011. All questions
pertaining to the project will be reviewed and discussed at that time. All prospective bidders are
urged to attend the Pre-Bid Conference.
Attention is called to the fact that the Houston Housing Authority provides that Minority/Women
Business Enterprises shall be encouraged to participate in Houston Housing Authority procurement
and construction contracts. The Houston Housing Authority encourages participation in its contracts
by M/WBEs as subcontractors or as the general contractor. A good faith effort must be made to
ensure that when they participate as subcontractors, the total of M/WBE subcontractor participation is
at least 30% of the total dollar value of the base bid.
Bid Forms and Contract Documents may be inspected at the office of Dodge McGraw Hill, 4101
Greenbriar, Suite 320, Houston, TX 77098; Associated General Contractors (AGC) 3825 Dacoma,
Houston, TX 77092; Houston Minority Business Development (MBDC), 4801 Woodway Drive,
Suite 210, Houston, TX 77056.
Invitation for Bids 00030-2
Interested and qualified contractors may obtain the Invitation for Bids package beginning October 3,
2011, by depositing FIVE HUNDRED DOLLARS ($500.00) at the Purchasing Department,
Houston Housing Authority, 2640 Fountainview, Suite 408, Houston, Texas 77057. Deposits shall be
made in the form of a Certified Check, Cashier’s Check, or Money Order made payable to the
Houston Housing Authority. Such deposits will be refunded to each Contractor who returns the bid
package and other documents in good condition within TEN (10) days after the bid opening.
The Houston Housing Authority reserves the right to waive any informalities and reject any and all
Invitation for Bids 00030-3
PROFILE OF THE HOUSTON HOUSING AUTHORITY
The Houston Housing Authority is currently governed by the state of Texas Housing Authorities Law
codified in the Local Government code. It is a unit of government and its functions are essential
governmental functions. It operates and manages its housing projects to provide decent, safe, sanitary
and affordable housing to low income families and implements various programs designed and
funded by the U.S. Department of Housing and Urban Development (HUD).
The property of the Houston Housing Authority is used for essential public and governmental
purposes. The Houston Housing Authority and its property are exempt from all taxes, including sales
tax on all its purchases of supplies and services by virtue of Section 392-005 of the Local
The Houston Housing Authority enters into and executes contracts and other instruments that are
necessary and convenient to the exercise of its powers.
The Houston Housing Authority maintains contractual arrangements with HUD to manage and
operate public housing units through its conventional public housing program and administers the
Section 8 Housing Assistance Payments Program. The Houston Housing Authority’s programs are
federally funded along with development grants and rental income.
The Houston Housing Authority currently employs 220 regular full time staff, owns and manages
over 5,200 low rent public housing, Section 8 and affordable multi-family units. Additionally, the
Housing Authority administers rental assistance for 16,000 privately owned rental units through the
Section 8 programs. The Housing Authority’s total operating and development budget for fiscal year
2011 is approximately $160 million.
Profile of the Houston Housing Authority 00031-1
STATEMENT OF WORK
The work consists of, but is not limited to the following:
Provide all materials, labor and equipment necessary for the replacement of base and wall mounted
cabinets, countertops, linen closets, appliances, kitchen sinks and faucets, installation of VCT
flooring, and asbestos abatement at Lyerly Elderly Housing Development, as stated in the
specifications in the Invitation for Bids # 11-40. The work is described in the Project Manual,
Specifications, and Drawings for this Project. The General Contractor is required to complete the
work in a timely manner and to comply with all local, state, and national building codes. All
workmanship shall comply with the requirements of the Contract Documents and meet or exceed all
The Scope of Work (Work) includes but is not limited to the following:
Removal and hauling away of existing base and wall mounted cabinets, countertops and linen closets.
Removal of all appliances (refrigerators, ranges and vent hoods), kitchen sinks and faucets, and
handing these over to the Property Management at the storage area on the first floor. Asbestos
abatement and legal disposal of contaminants to designated areas. Providing and installing new base
and wall mounted cabinets, countertops, kitchen sinks and faucets, linen closets, appliances,
sheetrock behind the cabinets and linen closets, and associated work, all as stated in the
Specifications and Drawings. The work is to be carried out in 195 units.
Installation of 10,000 s. f. of vinyl tile flooring on the existing vinyl tile flooring in about 25 units.
The Contractor will include the cost of moving the furniture.
All the work is to be carried out with the units occupied. The Contractor shall provide 72 hours notice
to the Housing Authority prior to start of work in a unit and restore the use of the kitchen in a day.
In addition to accomplishing the above work, the contractor shall:
1. Obtain and pay for all necessary permits and approvals from the City of Houston and
2. Schedule inspection(s) of all work with the City of Houston, TSDHS and appropriate
3. Satisfy all City of Houston demolition requirements and obtain all necessary permits and
Statement of Work 00032-1
The bids submitted must remain open for a period of 90 days from the date of opening bids.
The authorized representative able to bind the bidder must complete all blanks in the bid package.
Each bidder must submit along with the Bid, a Bid Bond or a Bid Guarantee in the amount of 5% of
the greatest amount of bid.
The successful bidder shall also submit a satisfactory Performance Bond and Payment Bond for
100% of the contract price.
A pre-bid conference will be held on October 12 2011 in the Community Center of Lyerly Elderly
Housing Development located at 75 Lyerly, Houston, Texas 77022, at 10:00 a.m. All prospective
bidders are urged to attend the pre-bid conference. All questions pertaining to the handicap
accessibility work will be discussed at this time. All bidders shall be responsible for information
and/or clarifications issued at the pre-bid conference, whether or not the bidder attends the
Bidders must carefully study the “Instructions to Bidders for Contracts” contained in Form HUD-
5369 attached hereto. Bidders are required to comply with the said instructions. Those relating to
Indian Housing Programs are to be ignored.
Form HUD-5369-A attached hereto contains Representations, Certifications and other Statements of
Bidders. Bidders are required to sign the Form HUD-5369-A, to certify that the information
contained in the Certifications and Representations is current, accurate and complete.
Bidders must submit bids in quadruplicate with one (1) copy signed.
Bidders are required to execute all the forms in the IFB package. Failure to do so may render the bid
non-responsive and may result in rejection of the bid.
General Requirements 00033-1
INSTRUCTIONS TO BIDDERS
Form HUD-5369 “Instructions to Bidders for Contracts” – Public and Indian Housing Programs,
dated October 2002, pages one through four, is hereby included in the Contract Documents as
enumerated on the following pages.
Instructions to Bidders 00100-1
U.S. Department of Housing and
Office of Public and Indian Housing
Instructions to Bidders for Contracts
Public and Indian Housing Programs
Previous edition is obsolete form HUD-5369 (10/2002)
Instructions to Bidders for Contracts
Public and Indian Housing Programs
Table of Contents
Clause Page 2. Explanations and Interpretations to Prospective
1. Bid Preparation and Submission 1 Bidders
2. Explanations and Interpretations to Prospective Bidders 1 (a) Any prospective bidder desiring an explanation or interpretation
of the solicitation, specifications, drawings, etc., must request it at
3. Amendments to Invitations for Bids 1 least 7 days before the scheduled time for bid opening. Requests
4. Responsibility of Prospective Contractor 1 may be oral or written. Oral requests must be confirmed in writing.
5. Late Submissions, Modifications, and Withdrawal of Bids 1 The only oral clarifications that will be provided will be those clearly
related to solicitation procedures, i.e., not substantive technical
6. Bid Opening 2
information. No other oral explanation or interpretation will be
7. Service of Protest 2 provided. Any information given a prospective bidder concerning
8. Contract Award 2 this solicitation will be furnished promptly to all other prospective
9. Bid Guarantee 3 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
10. Assurance of Completion 3
to other prospective bidders.
11. Preconstruction Conference 3
(b) Any information obtained by, or provided to, a bidder other than
12. Indian Preference Requirements 3
by formal amendment to the solicitation shall not constitute a change
to the solicitation.
1. Bid Preparation and Submission
(a) Bidders are expected to examine the specifications, drawings, 3. Amendments to Invitations for Bids
all instructions, and, if applicable, the construction site (see also the (a) If this solicitation is amended, then all terms and conditions
contract clause entitled Site Investigation and Conditions Affect- which are not modified remain unchanged.
ing the Work of the General Conditions of the Contract for Construc-
tion). Failure to do so will be at the bidders’ risk. (b) Bidders shall acknowledge receipt of any amendment to this
solicitation (1) by signing and returning the amendment, (2) by
(b) All bids must be submitted on the forms provided by the Public identifying the amendment number and date on the bid form, or (3)
Housing Agency/Indian Housing Authority (PHA/IHA). Bidders shall by letter, telegram, or facsimile, if those methods are authorized in
furnish all the information required by the solicitation. Bids must be the solicitation. The PHA/IHA must receive acknowledgement by the
signed and the bidder’s name typed or printed on the bid sheet and time and at the place specified for receipt of bids. Bids which fail to
each continuation sheet which requires the entry of information by acknowledge the bidder’s receipt of any amendment will result in the
the bidder. Erasures or other changes must be initialed by the person rejection of the bid if the amendment(s) contained information which
signing the bid. Bids signed by an agent shall be accompanied by substantively changed the PHA’s/IHA’s requirements.
evidence of that agent’s authority. (Bidders should retain a copy of
their bid for their records.) (c) Amendments will be on file in the offices of the PHA/IHA and the
Architect at least 7 days before bid opening.
(c) Bidders must submit as part of their bid a completed form HUD-
5369-A, “Representations, Certifications, and Other Statements of 4. Responsibility of Prospective Contractor
Bidders.” (a) The PHA/IHA will award contracts only to responsible prospec-
tive contractors who have the ability to perform successfully under
(d) All bid documents shall be sealed in an envelope which shall be
the terms and conditions of the proposed contract. In determining
clearly marked with the words “Bid Documents,” the Invitation for
the responsibility of a bidder, the PHA/IHA will consider such matters
Bids (IFB) number, any project or other identifying number, the
as the bidder’s:
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 (2) Compliance with public policy;
should insert the words “No Bid” in the space provided for any item (3) Record of past performance; and
on which no price is submitted. (4) Financial and technical resources (including construction
(f) Unless expressly authorized elsewhere in this solicitation, alter- and technical equipment).
nate bids will not be considered. (b) Before a bid is considered for award, the bidder may be re-
(g) Unless expressly authorized elsewhere in this solicitation, bids quested by the PHA/IHA to submit a statement or other documenta-
submitted by telegraph or facsimile (fax) machines will not be tion regarding any of the items in paragraph (a) above. Failure by the
considered. bidder to provide such additional information shall render the bidder
nonresponsible and ineligible for award.
(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
Previous edition is obsolete Page 1 of 4 form HUD-5369 (10/2002)
5. Late Submissions, Modifications, and Withdrawal of Bids 6. Bid Opening
(a) Any bid received at the place designated in the solicitation after All bids received by the date and time of receipt specified in the
the exact time specified for receipt will not be considered unless it is solicitation will be publicly opened and read. The time and place of
received before award is made and it: opening will be as specified in the solicitation. Bidders and other
interested persons may be present.
(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., 7. Service of Protest
an offer submitted in response to a solicitation requiring receipt of (a) Definitions. As used in this provision:
offers by the 20th of the month must have been mailed by the 15th);
“Interested party” means an actual or prospective bidder whose
(2) Was sent by mail, or if authorized by the solicitation, was direct economic interest would be affected by the award of the
sent by telegram or via facsimile, and it is determined by the PHA/IHA contract.
that the late receipt was due solely to mishandling by the PHA/IHA
after receipt at the PHA/IHA; or “Protest” means a written objection by an interested party to this
solicitation or to a proposed or actual award of a contract pursuant
(3) Was sent by U.S. Postal Service Express Mail Next Day to this solicitation.
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 (b) Protests shall be served on the Contracting Officer by obtaining
receipt of proposals. The term “working days” excludes weekends written and dated acknowledgement from —
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 [Contracting Officer designate the official or location where a protest
placed impression (exclusive of a postage meter machine impres- may be served on the Contracting Officer]
sion) that is readily identifiable without further action as having been (c) All protests shall be resolved in accordance with the PHA’s/
supplied and affixed by employees of the U.S. or Canadian Postal IHA’s protest policy and procedures, copies of which are maintained
Service on the date of mailing. Therefore, bidders should request the at the PHA/IHA.
postal clerk to place a hand cancellation bull’s-eye postmark on both
the receipt and the envelope or wrapper. 8. Contract Award
(a) The PHA/IHA will evaluate bids in response to this solicitation
(d) The only acceptable evidence to establish the time of receipt at the
without discussions and will award a contract to the responsible
PHA/IHA is the time/date stamp of PHA/IHA on the proposal wrapper or
bidder whose bid, conforming to the solicitation, will be most advan-
other documentary evidence of receipt maintained by the PHA/IHA.
tageous to the PHA/IHA considering only price and any price-related
(e) The only acceptable evidence to establish the date of mailing of factors specified in the solicitation.
a late bid, modification, or withdrawal sent by Express Mail Next Day
(b) If the apparent low bid received in response to this solicitation
Service-Post Office to Addressee is the date entered by the post
exceeds the PHA’s/IHA’s available funding for the proposed contract
office receiving clerk on the “Express Mail Next Day Service-Post
work, the PHA/IHA may either accept separately priced items (see
Office to Addressee” label and the postmark on both the envelope or
8(e) below) or use the following procedure to determine contract
wrapper and on the original receipt from the U.S. Postal Service.
award. The PHA/IHA shall apply in turn to each bid (proceeding in
“Postmark” has the same meaning as defined in paragraph (c) of this
order from the apparent low bid to the high bid) each of the separately
provision, excluding postmarks of the Canadian Postal Service.
priced bid deductible items, if any, in their priority order set forth in
Therefore, bidders should request the postal clerk to place a legible
this solicitation. If upon the application of the first deductible item to
hand cancellation bull’s eye postmark on both the receipt and Failure
all initial bids, a new low bid is within the PHA’s/IHA’s available
by a bidder to acknowledge receipt of the envelope or wrapper.
funding, then award shall be made to that bidder. If no bid is within
(f) Notwithstanding paragraph (a) of this provision, a late modifica- the available funding amount, then the PHA/IHA shall apply the
tion of an otherwise successful bid that makes its terms more second deductible item. The PHA/IHA shall continue this process
favorable to the PHA/IHA will be considered at any time it is received until an evaluated low bid, if any, is within the PHA’s/IHA’s available
and may be accepted. 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
(g) Bids may be withdrawn by written notice, or if authorized by this
separately priced deductibles, the PHA/IHA shall follow its written
solicitation, by telegram (including mailgram) or facsimile machine
policy and procedures in making any award under this solicitation.
transmission received at any time before the exact time set for
opening of bids; provided that written confirmation of telegraphic or (c) In the case of tie low bids, award shall be made in accordance
facsimile withdrawals over the signature of the bidder is mailed and with the PHA’s/IHA’s written policy and procedures.
postmarked prior to the specified bid opening time. A bid may be
(d) The PHA/IHA may reject any and all bids, accept other than the
withdrawn in person by a bidder or its authorized representative if,
lowest bid (e.g., the apparent low bid is unreasonably low), and waive
before the exact time set for opening of bids, the identity of the person
informalities or minor irregularities in bids received, in accordance
requesting withdrawal is established and the person signs a receipt
with the PHA’s/IHA’s written policy and procedures.
for the bid.
Previous edition is obsolete Page 2 of 4 form HUD-5369 (10/2002)
(e) Unless precluded elsewhere in the solicitation, the PHA/IHA (c) Each bond shall clearly state the rate of premium and the total
may accept any item or combination of items bid. amount of premium charged. The current power of attorney for the
person who signs for the surety company must be attached to the
(f) The PHA/IHA may reject any bid as nonresponsive if it is
bond. The effective date of the power of attorney shall not precede
materially unbalanced as to the prices for the various items of work
the date of the bond. The effective date of the bond shall be on or after
to be performed. A bid is materially unbalanced when it is based on
the execution date of the contract.
prices significantly less than cost for some work and prices which are
significantly overstated for other work. (d) Failure by the successful bidder to obtain the required assur-
ance of completion within the time specified, or within such extended
(g) A written award shall be furnished to the successful bidder within
period as the PHA/IHA may grant based upon reasons determined
the period for acceptance specified in the bid and shall result in a
adequate by the PHA/IHA, shall render the bidder ineligible for
binding contract without further action by either party.
award. The PHA/IHA may then either award the contract to the next
9. Bid Guarantee (applicable to construction and equip- lowest responsible bidder or solicit new bids. The PHA/IHA may
ment contracts exceeding $25,000) retain the ineligible bidder’s bid guarantee.
All bids must be accompanied by a negotiable bid guarantee which 11. Preconstruction Conference (applicable to construction
shall not be less than five percent (5%) of the amount of the bid. The contracts)
bid guarantee may be a certified check, bank draft, U.S. Government
After award of a contract under this solicitation and prior to the start
Bonds at par value, or a bid bond secured by a surety company
of work, the successful bidder will be required to attend a
acceptable to the U.S. Government and authorized to do business in
preconstruction conference with representatives of the PHA/IHA and
the state where the work is to be performed. In the case where the
its architect/engineer, and other interested parties convened by the
work under the contract will be performed on an Indian reservation
PHA/IHA. The conference will serve to acquaint the participants with
area, the bid guarantee may also be an irrevocable Letter of Credit
the general plan of the construction operation and all other require-
(see provision 10, Assurance of Completion, below). Certified
ments of the contract (e.g., Equal Employment Opportunity, Labor
checks and bank drafts must be made payable to the order of the
Standards). The PHA/IHA will provide the successful bidder with the
PHA/IHA. The bid guarantee shall insure the execution of the
date, time, and place of the conference.
contract and the furnishing of a method of assurance of completion
by the successful bidder as required by the solicitation. Failure to 12. Indian Preference Requirements (applicable only if
submit a bid guarantee with the bid shall result in the rejection of the this solicitation is for a contract to be performed on a
bid. Bid guarantees submitted by unsuccessful bidders will be project for an Indian Housing Authority)
returned as soon as practicable after bid opening.
(a) HUD has determined that the contract awarded under this
10. Assurance of Completion solicitation is subject to the requirements of section 7(b) of the Indian
(a) Unless otherwise provided in State law, the successful bidder Self-Determination and Education Assistance Act (25 U.S.C. 450e(b)).
shall furnish an assurance of completion prior to the execution of any Section 7(b) requires that any contract or subcontract entered into for
contract under this solicitation. This assurance may be [Contracting the benefit of Indians shall require that, to the greatest extent feasible
Officer check applicable items] — (1) Preferences and opportunities for training and employment
[ ] (1) a performance and payment bond in a penal sum of 100 (other than core crew positions; see paragraph (h) below) in connec-
percent of the contract price; or, as may be required or permitted by tion with the administration of such contracts or subcontracts be
State law; given to qualified “Indians.” The Act defines “Indians” to mean
persons who are members of an Indian tribe and defines “Indian
[ ] (2) separate performance and payment bonds, each for 50 tribe” to mean any Indian tribe, band, nation, or other organized
percent or more of the contract price; group or community, including any Alaska Native village or regional
or village corporation as defined in or established pursuant to the
[ ] (3) a 20 percent cash escrow;
Alaska Native Claims Settlement Act, which is recognized as eligible
[ ] (4) a 25 percent irrevocable letter of credit; or, for the special programs and services provided by the United States
to Indians because of their status as Indians; and,
[ ] (5) an irrevocable letter of credit for 10 percent of the total
contract price with a monitoring and disbursements agreement with (2) Preference in the award of contracts or subcontracts in
the IHA (applicable only to contracts awarded by an IHA under the connection with the administration of contracts be given to Indian
Indian Housing Program). organizations and to Indian-owned economic enterprises, as de-
fined in section 3 of the Indian Financing Act of 1974 (25 U.S.C.
(b) Bonds must be obtained from guarantee or surety companies
1452). That Act defines “economic enterprise” to mean any Indian-
acceptable to the U.S. Government and authorized to do business in
owned commercial, industrial, or business activity established or
the state where the work is to be performed. Individual sureties will
organized for the purpose of profit, except that the Indian ownership
not be considered. U.S. Treasury Circular Number 570, published
must constitute not less than 51 percent of the enterprise; “Indian
annually in the Federal Register, lists companies approved to act as
organization” to mean the governing body of any Indian tribe or entity
sureties on bonds securing Government contracts, the maximum
established or recognized by such governing body; “Indian” to mean
underwriting limits on each contract bonded, and the States in which
any person who is a member of any tribe, band, group, pueblo, or
the company is licensed to do business. Use of companies listed in
community which is recognized by the Federal Government as
this circular is mandatory. Copies of the circular may be downloaded
eligible for services from the Bureau of Indian Affairs and any
on the U.S. Department of Treasury website http://
“Native” as defined in the Alaska Native Claims Settlement Act; and
www.fms.treas.gov/c570/index.html, or ordered for a minimum fee
Indian “tribe” to mean any Indian tribe, band, group, pueblo, or
by contacting the Government Printing Office at (202) 512-2168.
community including Native villages and Native groups (including
Previous edition is obsolete Page 3 of 4 form HUD-5369 (10/2002)
corporations organized by Kenai, Juneau, Sitka, and Kodiak) as (f) (1) All bidders must submit with their bids a statement describ-
defined in the Alaska Native Claims Settlement Act, which is recog- ing how they will provide Indian preference in the award of subcon-
nized by the Federal Government as eligible for services from the tracts. The specific requirements of that statement and the factors
Bureau of Indian Affairs. to used by the IHA in determining the statement’s adequacy are
included as an attachment to this solicitation. Any bid that fails to
(b) (1) The successful Contractor under this solicitation shall com-
include the required statement shall be rejected as nonresponsive.
ply with the requirements of this provision in awarding all subcon-
The IHA may require that comparable statements be provided by
tracts under the contract and in providing training and employment
subcontractors to the successful Contractor, and may require the
Contractor to reject any bid or proposal by a subcontractor that fails
(2) A finding by the IHA that the contractor, either (i) awarded to include the statement.
a subcontract without using the procedure required by the IHA, (ii)
(2) Bidders and prospective subcontractors shall submit a
falsely represented that subcontracts would be awarded to Indian
certification (supported by credible evidence) to the IHA in any
enterprises or organizations; or, (iii) failed to comply with the
instance where the bidder or subcontractor believes it is infeasible to
contractor’s employment and training preference bid statement shall
provide Indian preference in subcontracting. The acceptance or
be grounds for termination of the contract or for the assessment of
rejection by the IHA of the certification shall be final. Rejection shall
penalties or other remedies.
disqualify the bid from further consideration.
(c) If specified elsewhere in this solicitation, the IHA may restrict the
(g) All bidders must submit with their bids a statement detailing their
solicitation to qualified Indian-owned enterprises and Indian organi-
employment and training opportunities and their plans to provide
zations. If two or more (or a greater number as specified elsewhere
preference to Indians in implementing the contract; and the number
in the solicitation) qualified Indian-owned enterprises or organiza-
or percentage of Indians anticipated to be employed and trained.
tions submit responsive bids, award shall be made to the qualified
Comparable statements from all proposed subcontractors must be
enterprise or organization with the lowest responsive bid. If fewer
submitted. The criteria to be used by the IHA in determining the
than the minimum required number of qualified Indian-owned enter-
statement(s)’s adequacy are included as an attachment to this
prises or organizations submit responsive bids, the IHA shall reject
solicitation. Any bid that fails to include the required statement(s), or
all bids and readvertise the solicitation in accordance with paragraph
that includes a statement that does not meet minimum standards
required by the IHA shall be rejected as nonresponsive.
(d) If the IHA prefers not to restrict the solicitation as described in
(h) Core crew employees. A core crew employee is an individual
paragraph (c) above, or if after having restricted a solicitation an
who is a bona fide employee of the contractor at the time the bid is
insufficient number of qualified Indian enterprises or organizations
submitted; or an individual who was not employed by the bidder at the
submit bids, the IHA may advertise for bids from non-Indian as well
time the bid was submitted, but who is regularly employed by the
as Indian-owned enterprises and Indian organizations. Award shall
bidder in a supervisory or other key skilled position when work is
be made to the qualified Indian enterprise or organization with the
available. Bidders shall submit with their bids a list of all core crew
lowest responsive bid if that bid is -
(1) Within the maximum HUD-approved budget amount estab-
(i) Preference in contracting, subcontracting, employment, and
lished for the specific project or activity for which bids are being
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
(2) No more than the percentage specified in 24 CFR 905.175(c) these areas (e.g., employment in modular or manufactured housing
higher than the total bid price of the lowest responsive bid from any construction facilities).
qualified bidder. If no responsive bid by a qualified Indian-owned
(j) Bidders should contact the IHA to determine if any additional
economic enterprise or organization is within the stated range of the
local preference requirements are applicable to this solicitation.
total bid price of the lowest responsive bid from any qualified
enterprise, award shall be made to the bidder with the lowest bid. (k) The IHA [ ] does [ ] does not [Contracting Officer check
applicable box] maintain lists of Indian-owned economic enterprises
(e) Bidders seeking to qualify for preference in contracting or
and Indian organizations by specialty (e.g., plumbing, electrical,
subcontracting shall submit proof of Indian ownership with their bids.
foundations), which are available to bidders to assist them in meeting
Proof of Indian ownership shall include but not be limited to:
their responsibility to provide preference in connection with the
(1) Certification by a tribe or other evidence that the bidder is administration of contracts and subcontracts.
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
Previous edition is obsolete Page 4 of 4 form HUD-5369 (10/2002)
SUPPLEMENTARY INSTRUCTIONS TO BIDDERS
PART I – GENERAL
REVISIONS TO INSTRUCTIONS TO BIDDERS
The “Instructions to Bidders for Contracts”, Form HUD-5369, October 2002 Edition, bound herein, is
revised as follows:
Paragraph 1-Bid Preparation and Submission
(a) Extend subparagraph b. by adding the following:
“Bidders shall submit bids in quadruplicate, with only one (1) copy signed. The other
three (3) copies shall be conformed. The following executed forms shall also be
included in the bid proposal:
1. Completed Bid Proposal;
2. Non-Collusive Affidavit of Prime Bidder;
3. Previous Participation Certificate (Form HUD-2530);
4. Bid Guarantee or Five Percent (5%) Bid Bond;
5. Complete M/WBE form, signed and notarized;
6. Bidder’s Information, Fact Sheet and Questionnaire;
7. Representations, Certifications and Other Statements of Bidders (Form HUD-
8. Conflict of Interest Questionnaire (Form CIQ)
9. Section 3 Business Certification
10. Section 3 Resident Employment Plan
(b) Extend subparagraph (d) by adding the following:
“If the Bid is sent by mail, the sealed envelopes with the above information shall be
enclosed in a separate sealed mailing envelope with the notation “SEALED BID
ENCLOSED” clearly indicated on the face of the outer envelope.”
Paragraph 2 – Explanations and Interpretations to Prospective Bidders:
(a) Extend subparagraph (b) by adding the following:
“Submit written questions concerning interpretations and bidding in writing to:
Houston Housing Authority
2640 Fountainview, Suite 408
Houston, Texas 77057
Attn: Ms. Sarah Monigold
Supplementary Instructions to Bidders 00120-1
Paragraph 9 – Bid Guarantee
(a) Extend the paragraph by adding the following:
“The Attorney-in-Fact who executes the bond on behalf of the Surety shall affix to the
bond a certified and current copy of the Power of Attorney. 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 one each contract bonded,
and the States in which the company is licensed to do business. Use of companies
listed in this circular is mandatory. Free copies of the circular may be obtained by
writing directly to: U.S. Department of Treasury, Financial Management Services,
Surety Bond Branch, 401 14th Street, S.W., 2nd Floor, West Wing, Washington, D.C.
Paragraph 13 through 14:
Add to following paragraphs:
“13. Pre-Bid Conference:
On October 12 2011, a pre-bid conference will be held in the Community Center, Lyerly
Elderly Housing Development, at 75 Lyerly, Houston, Texas 77022 at 10:00 a.m. At that
time, all requests for interpretation, clarification and/or correction shall be received. All
bidders will be responsible for any information issued at the conference, whether or not
attended by the Bidder.
All Bidders are urged to attend this pre-bid conference.”
“14. All Bidders are advised that failure to complete and submit in their entirety the following
requirements with subject bids, may render each bid non-responsive, and thus, disqualified.
a. Completed Bid Proposal;
b. Non-Collusive Affidavit of Prime Bidder;
c. Previous Participation Certificate (Form HUD-2530);
d. Bid Guarantee or Five Percent (5%) Bid Bond;
e. Complete M/WBE form, signed and notarized;
f. Bidder’s Information, Fact Sheet and Questionnaire;
g. Representations, Certifications and Other Statements of Bidders (Form HUD-
h. Conflict of Interest Questionnaire (Form CIQ).”
i. Section 3 Business Certification
j. Section 3 Resident Employment Plan
Supplementary Instructions to Bidders 00120-2
FORM OF BID
Bid Opening: October 26, 2011 at 2:01p.m.
Invitation for Bids No: 11-40
To: Purchasing Officer
I/We offer to provide all materials, labor, equipment and services required for the replacement of
base and wall mounted cabinets, countertops, linen closets, appliances, kitchen sinks and faucets in
195 units, and installation of VCT flooring in 50 units at Lyerly Elderly Housing Development, as
stated in the specifications in the Invitation for Bids # 11-40.
The charges for labor and materials are shown separately in the price quoted, with all overhead
contained in the labor category.
Bidder proposes the following amount to carry out the said work at Lyerly Elderly Housing
Removal and hauling away of existing base and wall mounted cabinets, countertops, and linen
closets. Removal of all appliances (refrigerators, ranges and vent hoods), kitchen sinks and faucets,
and handing these over to the Property Management storage area in the first floor. Asbestos
abatement and legal disposal of contaminants to designated areas. Providing and installing, new base
and wall mounted cabinets, countertops, kitchen sinks and faucets, linen closets, appliances,
sheetrock behind the cabinets and linen closets, and associated work, all as stated in the
Specifications and Drawings. The work is to be carried out in 195 units.
Installation of 10,000 s. f. of vinyl tile flooring on the existing vinyl tile flooring in about 25 units,
including the cost of moving the furniture.
Labor/Overhead and Profit: $
Total Base Bid Amount: $
I/We propose the following unit rates for addition and/or deletion of items of work. I/We confirm
that the unit rates are inclusive of all costs for the removal and hauling away the existing, providing
and installing new items, associated work, bond and insurance costs, Contractors and sub-contractors
Overheads and Profits.
Form of Bid 00300-1
No. Description Unit Amount ($)
1 Base cabinet, including countertop L.F.
2 Wall cabinet L.F.
3 Linen closet L.F.
4 Kitchen sink and faucets, including associated plumbing Each
5 Refrigerator Each
6 Range Each
7 Vent hood Each
8 Installing vinyl tile flooring S.F.
9 Vinyl wall base L.F.
10 Moving of furniture in the unit for the installation of flooring L. S.
and base per unit
Bidder will commence physical work at the site with adequate forces and equipment within ten (10)
calendar days after receipt of a written Notice to Proceed.
Bidder will complete all the work in the Base Bid in its entirety within 150 (one hundred fifty)
consecutive calendar days after the date indicated in the Notice to Proceed.
I/We accept the contractor’s responsibility stated in clause 2 of the Form HUD-5370 and agree to
discharge said responsibility fully while performing work included in this bid.
I/We acknowledge that we have completed the site investigation and understand the conditions
affecting the work, ascertained the nature and location of work. I/We have made all the
investigations required under clause 7 of the Form HUD-5370. I/We have noted that all the work is to
be carried out in occupied units.
I/We have examined the drawings and Specifications and Statement of Work for construction.
I/We have read the General Conditions of the Contract for Construction and accept the conditions
I/We have read and understand the Instructions to Bidders for Contracts and all its implications.
I/We have read and understand the Representations, Certifications and Other Statements of Bidders
required from me/us and I/we have certified by signing Form HUD-5369-A that the information
contained in these Representations and Certifications is accurate, complete and current.
I/We agree to keep the bid open for a period of 90 days from the date of the opening of the bid.
I/We are herewith submitting the Bid Bond or Bid Guarantee in the amount of 5% of the greatest
amount of bid. If the Contract is awarded to me/us, we will furnish the Performance Bond and the
Payment Bond in the required amount, prior to the execution of the contract.
Form of Bid 00300-2
I/We hereby acknowledge the receipt of the following addenda to the drawings and project manual,
all of the provisions and requirements of which have been taken into consideration in preparation of
the foregoing bid:
a. Addenda #_______________ dated __________________
I/We reaffirm that the construction work will commence within 10 days after receipt of the Notice to
Proceed and that I/We will complete the entire work within the time stated herein.
Name of Bidder
Signature of the Authorized Person
The Signature in Print
Form of Bid 00300-3
FORM OF BID BOND
KNOW ALL MEN BY THESE PRESENT, that we the undersigned,
(Name of Principal)
as PRINCIPAL, and
(Name of Surety)
as SURETY, are held and firmly bound unto the
HOUSTON HOUSING AUTHORITY
hereinafter called Owner, in the penal sum of _________________________________
DOLLARS ($ ) lawful money of the United States, for the payment of which
sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors
and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that whereas the principal has submitted
the accompanying bid, dated __________________, 2011, for the:
Replacement of cabinets and installation of VCT flooring at Lyerly Elderly Housing Development
as described in these documents, and shown on the drawings.
NOW THEREFORE, if the Principal shall not withdraw said bid within the period specified therein
after opening of the same, or if no period be specified, within ninety (90) days after the said opening,
and shall within the period specified therefore, or if no period be specified, within ten (10) days after
the prescribed forms are presented to him/her for signing, enter into a written contract with the Owner
in accordance with the bid as accepted, and give bond with good and sufficient surety or sureties, as
may be required, for the faithful performance and proper fulfillment of such contact; or in the event
of the withdrawal of said Bid within the period specified, or the failure to enter into such contract and
give such bond within the period specified, if the Principal shall pay the Owner the difference
between the amount specified in said Bid and the amount for which the Owner may procure the
required work or supplies or both, if the latter amount be in excess of the former, then the above
obligation shall be void and of no effect, otherwise to remain in full force, virtue and effect. It is
further agreed by said surety that the surety will upon demand forthwith make payment to the
Obligee upon said bond if the Bidder fails to execute the contract in accordance with the Bid Bond
and upon failure to forthwith make payment, the surety shall pay to the Obligee an amount equal to
double the amount of said Bid Bond.
Form of Bid Bond 00410-1
IN WITNESS WHEREOF, the above bounded parties have executed this instrument under their
several seals this _____ day of __________________, 2011, the name and corporate seal of each
corporate party being hereto affixed and these presents duly signed by its undersigned
representatives, pursuant to authority of its governing body.
IN PRESENCE OF:
(Power of Attorney for person signing for Surety Company must be attached to bond.)
Form of Bid Bond 00410-2
CERTIFICATE AS TO CORPORATE PRINCIPAL
I, ______________________________________________, certify that I am the
______________________________, of the Corporation named as Principal in the within bond; that
_____________________________________ who signed the bond on behalf of the Principal was
then ___________________________________ of said corporation; that I know his/her signature
and his/her signature thereto is genuine; and that said bond was duly signed, sealed and attested to,
for and in behalf of said corporation by authority of its governing body.
Form of Bid Bond 00410-3
FORM OF NON-COLLUSIVE AFFIDAVIT
STATE OF TEXAS
COUNTY OF HARRIS
____________________, being first duly sworn, deposes and says that he is
(a partner or officer of the firm of, etc.)
the party making the foregoing proposal or bid, that such proposal or bid is genuine and not collusive
or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, in
any manner, directly or indirectly, sought by agreement or collusion, or communication or conference
with any person to fix the bid price of affiant or of any other bidder, or to fix any overhead, profit, or
cost element of said bid price, or of that of any other bidder, or to secure any advantage against the
HOUSTON HOUSING AUTHORITY or any person interested in the proposed Contract; and that
all statements in said proposal or bid are true.
Signature of Bidder, if Bidder is an Individual
Signature of Bidder, if Bidder is a Partnership
Signature of Officer, if Bidder is a Corporation
Subscribed and sworn to before me this _____ day of ________________, 2011.
My Commission expires _________________
Form of Non-Collusive Affidavit 00480-1
PREVIOUS PARTICIPATION CERTIFICATION
HUD Form, “Previous Participation Certification”, pages one and two inclusive; and “Instructions for
Completing the Previous Participation Certification, Form HUD-2530”, pages one and two inclusive
are included herein on the following pages. These forms shall be submitted as part of the bid
Previous Participation Certification 00481-1
Previous Participation U.S. Department of Housing U.S. Department of Agriculture OMB Approval No. 2502-0118
and Urban Development Farmers Home Administration (exp11/30/2012)
Certification Office of Housing/Federal Housing Commissioner
Part I To be completed by Principals of Multifamily Projects. See Instructions For HUD HQ/FmHA use only
Reason for Submitting Certification
1. Agency Name and City where the application is filed 2. Project Name, Project Number, City and Zip Code contained in the application
3. Loan or Contract Amount 4. Number of Units or Beds 5. Section of Act 6. Type of Project (check one)
Existing Rehabilitation Proposed (New)
List of ll roposed Principal Participants and attach organization chart for all organizations.
7. Names and Addresses of All Known Principals and Affiliates (people, businesses & organizations) 8. Role of Each 9. Expected % Owner 10. Social Security or IRS
proposing to participate in the project described above. (list names alphabetically; last, first, middle initial) Principal in Project ship Interest in Project Employer Number
Certifications: I (meaning the individual who signs insured project of HUD, USDA FmHA and State complaint or indictment charging a felony. (A 5. I am not a principal participant in an assisted or
as well as the corporations, partnerships or other and local government housing finance agencies in felony is defined as any offense punishable by insured project as of this date on which
parties listed above who certify) hereby apply to which I have been or am now a principal. imprisonment for a term exceeding one year, but construction has stopped for a period in excess
HUD or USDA FmHA, as the case maybe, for 2. For the period beginning 10 years prior to the date does not include any offense classified as a of 20 days or which has been substantially
approval to participate as a principal in the role and of this certification, and except as shown by me on misdemeanor under the laws of a State and completed for more than 90 days and documents
project listed above based upon my following the certification. punishable by imprisonment of two years or less); for closing, including final cost certification have
previous participation record and this Certification. a. No mortgage on a project listed by me has ever f. have not been suspended, debarred or otherwise not been filed with HUD or FmHA
Verify that neither you nor any of your principals or been in default, assigned to the Government or restricted by any Department or Agency of the 6. To my knowledge I have not been found by
affiliates have ever been found to be in foreclosed, nor has mortgage relief by the Federal Government or of a State Government HUD or FmHA to be in noncompliance with any
noncompliance with any applicable fair housing and mortgagee been given; from doing business with such Department or applicable fair housing and civil rights
civil rights requirements in 24 CFR 5.105 (a). If you b. I ave not experienced defaults or Agency. requirements in 24 CFR 5.10 (a).
or any of your principals or affiliates have been found noncompliances under any Conventional g. I have not defaulted on an obligation covered by a 7. I am not a Member of Congress or a Resident
to be in noncompliance with any such requirements, Contract or Turnkey Contract of Sale in surety or performance bond and have not been the Commissioner nor otherwise prohibited or limited
attach a signed statement explaining the relevant connection with a public housing project; subject of a claim under an employee fidelity by law from contracting with the Government of
facts, circumstances, and resolution, if any. c. To the best of my knowledge, there are no bond. the United States of America.
I certify that all the statements made by me are true, unresolved findings raised as a result of HUD 3. All the names of the parties, known to me to be 8. Statements above (if any) to which I cannot
complete and correct to the best of my knowledge audits, management reviews or other principals in this project(s) in which I propose to certify have been deleted by striking through the
and belief and are made in good faith, including the Governmental investigations concerning me or participate, are listed above. words with a pen. I have initialed each deletion (if
data contained in Schedule A and Exhibits signed by my projects; 4. I am not a HUD/FmHA employee or a member of a any) and have attached a true and accurate signed
me and attached to this form. HUD will d. There has not been a suspension or termination HUD/FmHA employee's immediate household as statement (if applicable) to explain the facts and
prosecute false claims and statements. Conviction of payments under any HUD assistance contract defined in Standards of Ethical Conduct or circumstances which I think helps to qualify me
may result in criminal and/or civil penalties. (18 in which I have had a legal or beneficial Employees of the Executive Branch in 5C.F.R. Part as a responsible principal for participation in this
U.S.C. 1001, 1010, 1012; 31U.S.C. 3729, 3802) interest; 2635 (57 FR 35006) and HUD's Standard of project.
I further certify that: e. I have not been convicted of a felony and am not Conduct in 24 C.F.R. Part and USDA's Standard
1. Schedule A contains a listing of every assisted or presently, to my knowledge, the subject of a of Conduct in 7 C.F.R. Part Subpart B.
Typed or Printed Name of Principal Signature of Principal Certification Date (mm/dd/yyyy) Area Code and Telephone No.
This form was prepared by (Please print name) Area Code and Telephone No.
Previous editions are obsolete Page 1 of 2 ref Handbook 4065.1 form HUD-2530 (7/2009)
Schedule A: List of Previous Projects and Section 8 Contracts. By my name below is the complete list of my previous projects and my participation history as a principal; in Multifamily
Housing programs of HUD/FmHA, State, and Local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Abbreviate where possible. Make full disclosure.
Add extra sheets if you need more space. Double check for accuracy. If you have no previous projects write, by your name, "No previous participation, First Experience."
1. List each Principal's Name 2. List Previous Projects 3. List Principals' Role(s) 4. Status of Loan 5. Was Project ever in Default, 6. Last Mgmt.
(give the I.D. number, project name, city location, (current, defaulted, during your participation? and/or
(list in alphabetical order, & government agency involved (indicate dates participated, and assigned, or . Physical Inspctn
last name first) if other than HUD) if fee or identity of interest participant) foreclosed) Yes No If "Yes," explain Rating and Date
Part II – For HUD Internal Processing Only
Received and checked by me for accuracy and completeness; recommend approval or transferral to Headquarters as checked below:
Date (mm/dd/yyyy) Telephone Number and Area Code A. No adverse information; form HUD-2530 C. Disclosure or Certification problem
approval is recommended.
Staff Processing and Control B. Name match in system D. Other, our memorandum is attached.
Supervisor Director of Housing / Director, Multifamily Division Approved Date (mm/dd/yyyy)
Previous editions are obsolete Page 2 of 2 ref Handbook 4065.1 form HUD-2530 (7/2009)
Instructions for Completing the Previous Who Must Sign and File Form HUD-2530: Exemptions – The names of the following
Participation Certificate, form HUD-2530 If you do request reconsideration by the
Form HUD-2530 must be completed and signed parties do not need to be listed on form HUD- Review Committee and the reconsideration
Carefully read these instructions and the ap- by all parties applying to become principal 2530: Public Housing Agencies, tenants, own- results in an adverse determination, you may
plicable regulations. A copy of those regula- participants in HUD multifamily housing ers of less than five condominium or coopera- then request a hearing before a Hearing Of-
tions published at 24 C.F.R. 200.210 to 200.245 projects, including those who have no previ- tive units and all others whose interests were ficer. The Hearing Officer will issue a report to
can be obtained from the Multifamily Housing ous participation. The form must be signed acquired by inheritance or court order. the Review Committee. You will be notified of
Representative at any HUD Office. Type or and filed by all principals and their affiliates
Where and When Form HUD-2530 Must Be the final ruling by certified mail.
print neatly in ink when filling out this form. who propose participating in the HUD project.
Use a separate form for each role in the Filed: The original of this form must be Specific Line Instructions:
Mark answers in all blocks of the form. If the submitted to the HUD Office where your project
form is not filled completely, it will delay ap- project unless there is an identity of interest. Reason for submitting this Certificatioin: e.g.,
application will be processed at the same time
proval of your application. Principals include all individuals, joint ven- you file your initial project application. This refinance, management, change in ownership,
Attach extra sheets as you need them. Be tures, partnerships, corporations, trusts, non- form must be filed with applications for projects, transfer of physical assets, etc.
sure to indicate "Continued on Attachments" profit organizations, any other public or pri- or when otherwise required in the situations Block 1: Fill in the name of the agency to
wherever appropriate. Sign each additional vate entity, that will participate in the proposed listed below: which you are applying. For example: HUD
page that you attach if it refers to you or your project as a sponsor, owner, prime contractor, Office, Farmers Home Administration District
turnkey developer, managing agent, nursing • Projects to be financed with mortgages in-
record. If you have many projects to list (20 or sured under the National Housing Act (FHA). office, or the name of a State or local housing
more) and expect to be applying frequently for home administrator or operator, packager, or finance agency. Below that, fill in the name of
participation in HUD projects, you should con- consultant. Architects and attorneys who have • Projects to be financed according to Section the city where the office is located.
sider filing a Master List. See Master List any interest in the project other than an arms 202 of the Housing Act of 1959 (Elderly and
Handicapped). Block 2: Fill in the name of the project, such
instructions below under "Instructions for Com- length fee arrangement for professional ser-
as "Greenwood Apts." If the name has not yet
pleting Schedule A." vices are also considered principals by HUD. • Projects in which 20 percent or more of the been selected, write "Name unknown." Below
Carefully read the certification before you In the case of partnerships, all general units are to receive a subsidy as described in that, enter the HUD contract or project identi-
sign it. Any questions regarding the form or partners regardless of their percentage inter- 24 C.F.R. 200.213. fication number, the Farmers Home Adminis-
how to complete it can be answered by your est and limited partners having a 25 percent or • Purchase of a project subject to a mortgage tration project number, or the State or local
HUD Office Multifamily Housing Representative. more interest in the partnership are consid- insured or held by the Secretary of HUD. housing finance agency project or contract
ered principals. In the case of public or private number. Include all project or contract identi-
Purpose: This form provides HUD with a corporations or governmental entities, princi- • Purchase of a Secretary-owned project.
certified report of all previous participation in fication numbers that are relevant to the
pals include the president, vice president, • Proposed substitution or addition of a princi- project.Also enter the name of the city in which
HUD multifamily housing projects by those secretary, treasurer and all other executive pal, or principal participation in a different
parties making application. The information the project is located, and the ZIP Code of the
officers who are directly responsible to the capacity from that previously approved for site location.
requested in this form is used by HUD to board of directors, or any equivalent govern- the same project.
determine if you meet the standards estab- Block 3: Fill in the dollar amount requested in
ing body, as well as all directors and each • Proposed acquisition by an existing limited
lished to ensure that all principal participants the proposed mortgage, or the annual amount
stockholder having a 10 percent or more inter- partner of an additional interest in a project
in HUD projects will honor their legal, financial of rental assistance requested.
est in the corporation. resulting in a total interest of 25 percent or
and contractual obligations and are accept- Block 4: Fill in the number of apartment units
able risks from the underwriting standpoint of Affiliates are defined as any person or more, or proposed acquisition by a corpo-
rate stockholder of an additional interest in a proposed, such as "40 units." For hospital
an insurer, lender or governmental agency. business concern that directly or indirectly
project resulting in a total interest of 10 projects or nursing homes, fill in the number of
HUD requires that you certify your record of controls the policy of a principal or has the
percent or more. beds proposed, such as "100 beds."
previous participation in HUD/USDA-FmHA, power to do so. A holding or parent corpora-
State and Local Housing Finance Agency tion would be an example of an affiliate if one • Projects with U.S.D.A., Farmers Home Ad- Block 5: Fill in the section of the Housing Act
projects by completing and signing this form, of its subsidiaries is a principal. ministration, or with state or local govern- under which the application is filed.
before your project application or participation Exception for Corporations – All principals ment housing finance agencies that include Block 7: Definitions of all those who are
can be approved. and affiliates must personally sign the certifi- rental assistance under Section 8 of the considered principals and affiliates are given
HUD approval of your certification is a cate except in the following situation. When a Housing Act of 1937. For projects of this above in the section titled "Who Must Sign and
necessary precondition for your participation corporation is a principal, all of its officers, type, form HUD-2530 should be filed with the File...."
in the project and in the capacity that you directors, trustees and stockholders with 10 appropriate applications directly to those Block 8: Beside the name of each principal,
propose. If you do not file this certification, do percent or more of the common (voting) stock agencies. fill in the role that each will perform. The
not furnish the information requested accu- need not sign personally if they all have the Review of Adverse Determination: If ap- following are possible roles that the principals
rately, or do not meet established standards, same record to report. The officer who is proval of your participation in a HUD project is may perform: Sponsor, Owner, Prime Con-
HUD will not approve your certification. authorized to sign for the corporation or agency denied, withheld, or conditionally granted on tractor, Turnkey Developer, Managing Agent,
will list the names and title of those who elect the basis of your record of previous participa- Packager, Consultant, General Partner, Lim-
Note that approval of your certification does not to sign. However, any person who has a
not obligate HUD to approve your project ap- tion, you will be notified by the HUD Office. ited Partner (include percentage), Executive
record of participation in HUD projects that is You may request reconsideration by the HUD Officer, Director, Trustee, Major Stockholder,
plication, and it does not satisfy all other HUD separate from that of his or her organization
program requirements relative to your qualifi- Review Committee. Alternatively, you may or Nursing Home Administrator. Beside the
must report that activity on this form and sign request a hearing before a Hearing Officer. name of each affiliate, write the name of the
cations. his or her name. The objective is full disclosure. Either request must be made in writing within person or firm of affiliation, such as "Affiliate of
30 days from your receipt of the notice of Smith Construction Co."
Previous editions are obsolete Page 1 of 2 ref Handbook 4065.1 form HUD-2530 (7/2009)
Block 9: Fill in the percentage of ownership in Column 3 List the role(s) of your participa- and provide a telephone number where you HUD-2530"). Beside each signature, fill in the
the proposed project that each principal is tion, dates participated, and if fee or identity of can be reached during the day. No determina- role of each party (the same as shown in block 8).
expected to have. Also specify if the partici- interest with owners. tions will be made on these certificates. In addition, each person who signs the form
pant is a general or limited partner. Beside the Column 4 Indicate the current status of the File one copy of the Master List with each should fill in the date that he or she signs, as
name of those parties who will not be owners, loan. Except for current loans, the date asso- HUD Office where you do business and mail well as providing a telephone number where
write "None." ciated with the status is required. Loans under one copy to the following address: he or she can be reached during business
Block 10: Fill in the Social Security Number a workout arrangement are considered as- hours. By providing a telephone number where
or IRS employer number of every party listed, signed. An explanation of the circumstances HUD-2530 Master List you can be reached, you will help to prevent
including affiliates. surrounding the status is required for all non- Participation and Compliance any possible delay caused by mailing and
current loans. Division – Housing processing time in the event HUD has any
Instructions for Completing Schedule A:
U.S. Department of Housing and questions.
Be sure that Schedule A is filled-in completely, Column 5 Explain any project defaults during Urban Development
accurately and the certification is properly your participation. 451 Seventh Street, S.W. If you cannot certify and sign the certifica-
dated and signed, because it will serve as a Column 6 Enter the latest Management and/ Washington, D.C. 20410 tion as it is printed because some statements
legal record of your previous experience. All or Physical Inspection Review rating. If either do not correctly describe your record, use a
Multifamily Housing projects involving HUD/ of the ratings are below average, the report pen and strike through those parts that differ
Once you have filed a Master List, you do not with your record, then sign and certify to that
FmHA, and State and local Housing Finance issued by HUD is required to be submitted need to complete Schedule A when you sub- remaining part which does describe you or
Agencies in which you have previously partici- along with the applicant's explanation of the mit form HUD-2530. Instead, write the name of your record.
pated must be listed. Applicants are re- circumstances surrounding the rating. the participant in column 1 of Schedule A and
minded that previous participation pertains to No Previous Record: Even if you have never Attach a signed letter, note or an explana-
beside that write "See Master List on file."
the individual principal within an entity as well participated in a HUD project before, you must tion of the items you have struck out on the
Also give the date that appears on the Master
as the entity itself. A newly formed company complete form HUD-2530. If you have no certification and report the facts of your cor-
List that you submitted. Below that, report all
may not have previous participation, but the record of previous projects to list, fill in your rect record. Item A(2)(e) relates to felony
changes and additions that have occurred
principals within the company may have had name in column 1 of Schedule A, and write convictions within the past 10 years. If you
since that date. Be sure to include any mort-
extensive participation and disclosure of that across the form by your name – "No previous have been convicted of a felony within 10
gage defaults, assignments or foreclosures
activity is required. To avoid duplication of participation, first experience." years, strike out all of A(2)(e) on the certificate
not listed previously.
disclosure, list the project and then the enti- and attach your statement giving your expla-
ties or individuals involved in that project. You Master List System: If you expect to file this If you have withdrawn from a project since nation. A felony conviction will not necessarily
may use the name or a number code to denote form frequently and you have a long list of the date the Master List was filed, be sure to cause your participation to be disapproved
the entity or individual that participated. The previous projects to report on Schedule A, you name the project. Give the project identifica- unless there is a criminal record or other
number code can then be used in column 3 to should consider filing a Master List. By doing tion number, the month and year your partici- evidence that your previous conduct or method
denote role. so, you will avoid having to list all your previous pation began and/or ended. of doing business has been such that your
projects each time you file a new application. Certification: participation in the project would make it an
Column 2 List the project or contract identifi-
cation of each previous project. All previous To make a Master List, use form HUD- After you have completed all other parts of unacceptable risk from the underwriting stand-
projects must be included or your certifica- 2530. On page 1, in block 1, enter (in capital form HUD-2530, including Schedule A, read point of an insurer, lender or governmental
tion cannot be processed. Include the name letters) the words "Master List." In blocks 2 the Certification carefully. In the box below agency.
of all projects, the cities in which they are through 6 enter in "N.A." meaning Not Appli- the statement of certification, fill in the name
located and the government agency (HUD, cable. Complete blocks 7 through 10. of all principals and affiliates (type or print
USDA-FmHA or State or local housing finance In the box below the statement of certifica- neatly). Beside the name of each principal and
agency) that was involved. At the end of your tion, fill in the names of all parties who wish to affiliate, each party must sign the form, with
list of projects, draw a straight line across the file a Master List together (type or print neatly). the exception in some cases of individuals
page to separate your record of projects from Beside each name, every party must sign the associated with a corporation (see "Exception
that of others signing this form who have a form. In the box titled "Proposed Role," fill in for Corporations" in the section of the instruc-
different record to report. "N.A." Also, fill in the date you sign the form tions titled "Who Must Sign and File form
The Department of Housing and Urban Development (HUD) is authorized to collect this information by law (42 U.S.C. 3535(d) and 24 C.F.R. 200.217) and by regulation at 24 CFR 200.210. This information
is needed so that principals applying to participate in multifamily programs can become HUD-approved participants. The information you provide will enable HUD to evaluate your record with respect
to established standards of performance, responsibility and eligibility. Without prior approval, a principal may not participate in a proposed or existing multifamily project. HUD uses this information to
evaluate whether or not principals pose an unsatisfactory underwriting risk. The information is used to evaluate the potential principals and approve only individuals and organizations who will honor
their legal, financial and contractual obligations.
Privacy Act Statement: The Housing and Community Development Act of 1987, 42 U.S.C. 3543 requires persons applying for a Federally-insured or guaranteed loan to furnish his/her Social Security Number
(SSN). HUD must have your SSN for identification of your records. HUD may use your SSN for automated processing of your records and to make requests for information about you and your previous records
with other public agencies and private sector sources. HUD may disclose certain information to Federal, State and local agencies when relevant to civil, criminal, or regulatory investigations and prosecutions.
It will not be otherwise disclosed or released outside of HUD, except as required and permitted by law. You must provide all of the information requested in this application, including your SSN.
Public reporting burden for this collection of information is estimated to average 1 hour 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 collect this information, and you are not required to complete this form, unless it
displays a currently valid OMB control number.
A response is mandatory. Failure to provide any of the information will result in your disapproval for participation in this HUD program.
Previous editions are obsolete Page 2 of 2 ref Handbook 4065.1 form HUD-2530 (7/2009)
REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF BIDDERS
Form HUD-5369-A “Representations, Certifications and Other Statements of Bidders” – Public and
Indian Housing Programs, dated November 1992 pages one through three, is hereby included in the
Contract Documents as enumerated on the following pages.
Representations, Certifications and Other 00482-1
Statements of Bidders
U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
and Other Statements of Bidders
Public and Indian Housing Programs
Previous edition is obsolete form HUD-5369-A (11/92)
and Other Statements of Bidders
Public and Indian Housing Programs
Table of Contents
Clause Page (iii) As an agent, has not personally participated, and will not
1. Certificate of Independent Price Determination 1 participate in any action contrary to subparagraphs (a)(1) through
2. Contingent Fee Representation and Agreement 1
(c) If the bidder deletes or modifies subparagraph (a)2 above, the
3. Certification and Disclosure Regarding Payments bidder must furnish with its bid a signed statement setting forth in detail
to Influence Certain Federal Transactions 1
the circumstances of the disclosure.
4. Organizational Conflicts of Interest Certification 2
[ ] [Contracting Officer check if following paragraph is applicable]
5. Bidder's Certification of Eligibility 2
(d) Non-collusive affidavit. (applicable to contracts for construction
6. Minimum Bid Acceptance Period 2 and equipment exceeding $50,000)
7. Small, Minority, Women-Owned Business Concern (1) Each bidder shall execute, in the form provided by the PHA/
Representation 2 IHA, an affidavit to the effect that he/she has not colluded with any other
8. Indian-Owned Economic Enterprise and Indian person, firm or corporation in regard to any bid submitted in response
Organization Representation 2 to this solicitation. If the successful bidder did not submit the affidavit
9. Certification of Eligibility Under the Davis-Bacon Act 3 with his/her bid, he/she must submit it within three (3) working days of
10. Certification of Nonsegregated Facilities 3 bid opening. Failure to submit the affidavit by that date may render the
bid nonresponsive. No contract award will be made without a properly
11. Clean Air and Water Certification 3
12. Previous Participation Certificate 3
(2) A fully executed "Non-collusive Affidavit" [ ] is, [ ] is not
13. Bidder's Signature 3 included with the bid.
2. Contingent Fee Representation and Agreement
1. Certificate of Independent Price Determination
(a) Definitions. As used in this provision:
(a) The bidder certifies that--
"Bona fide employee" means a person, employed by a bidder and
(1) The prices in this bid have been arrived at independently, subject to the bidder's supervision and control as to time, place, and
without, for the purpose of restricting competition, any consultation, manner of performance, who neither exerts, nor proposes to exert
communication, or agreement with any other bidder or competitor improper influence to solicit or obtain contracts nor holds out as being
relating to (i) those prices, (ii) the intention to submit a bid, or (iii) the able to obtain any contract(s) through improper influence.
methods or factors used to calculate the prices offered;
"Improper influence" means any influence that induces or tends
(2) The prices in this bid have not been and will not be knowingly to induce a PHA/IHA employee or officer to give consideration or to act
disclosed by the bidder, directly or indirectly, to any other bidder or regarding a PHA/IHA contract on any basis other than the merits of the
competitor before bid opening (in the case of a sealed bid solicitation) matter.
or contract award (in the case of a competitive proposal solicitation)
(b) The bidder represents and certifies as part of its bid that, except
unless otherwise required by law; and
for full-time bona fide employees working solely for the bidder, the
(3) No attempt has been made or will be made by the bidder to bidder:
induce any other concern to submit or not to submit a bid for the
(1) [ ] has, [ ] has not employed or retained any person or
purpose of restricting competition.
company to solicit or obtain this contract; and
(b) Each signature on the bid is considered to be a certification by the
(2) [ ] has, [ ] has not paid or agreed to pay to any person or
signatory that the signatory--
company employed or retained to solicit or obtain this contract any
(1) Is the person in the bidder's organization responsible for commission, percentage, brokerage, or other fee contingent upon or
determining the prices being offered in this bid or proposal, and that resulting from the award of this contract.
the signatory has not participated and will not participate in any action
(c) If the answer to either (a)(1) or (a)(2) above is affirmative, the
contrary to subparagraphs (a)(l) through (a)(3) above; or
bidder shall make an immediate and full written disclosure to the PHA/
(2) (i) Has been authorized, in writing, to act as agent for the IHA Contracting Officer.
following principals in certifying that those principals have not partici-
(d) Any misrepresentation by the bidder shall give the PHA/IHA the
pated, and will not participate in any action contrary to subparagraphs
right to (1) terminate the contract; (2) at its discretion, deduct from
(a)(l) through (a)(3) above.
contract payments the amount of any commission, percentage,
_______________________________________________ [insert brokerage, or other contingent fee; or (3) take other remedy pursuant
full name of person(s) in the bidder's organization responsible for to the contract.
determining the prices offered in this bid or proposal, and the title of his
or her position in the bidder's organization]; 3. Certification and Disclosure Regarding Payments to
Influence Certain Federal Transactions (applicable to
(ii) As an authorized agent, does certify that the principals contracts exceeding $100,000)
named in subdivision (b)(2)(i) above have not participated, and will not
(a) The definitions and prohibitions contained in Section 1352 of title
participate, in any action contrary to subparagraphs (a)(1) through
31, United States Code, are hereby incorporated by reference in
(a)(3) above; and
paragraph (b) of this certification.
Previous edition is obsolete Page1 of 3 form HUD-5369-A (11/92)
(b) The bidder, by signing its bid, hereby certifies to the best of his or 6. Minimum Bid Acceptance Period
her knowledge and belief as of December 23, 1989 that: (a) "Acceptance period," as used in this provision, means the number
(1) No Federal appropriated funds have been paid or will be paid of calendar days available to the PHA/IHA for awarding a contract from
to any person for influencing or attempting to influence an officer or the date specified in this solicitation for receipt of bids.
employee of any agency, a Member of Congress, an officer or (b) This provision supersedes any language pertaining to the accep-
employee of Congress, or an employee of a Member of Congress on tance period that may appear elsewhere in this solicitation.
his or her behalf in connection with the awarding of a contract resulting
(c) The PHA/IHA requires a minimum acceptance period of
from this solicitation;
[Contracting Officer insert time period] calendar days.
(2) If any funds other than Federal appropriated funds (including
(d) In the space provided immediately below, bidders may specify a
profit or fee received under a covered Federal transaction) have been
longer acceptance period than the PHA's/IHA's minimum requirement.
paid, or will be paid, to any person for influencing or attempting to
The bidder allows the following acceptance period: calendar days.
influence an officer or employee of any agency, a Member of Con-
gress, an officer or employee of Congress, or an employee of a (e) A bid allowing less than the PHA's/IHA's minimum acceptance
Member of Congress on his or her behalf in connection with this period will be rejected.
solicitation, the bidder shall complete and submit, with its bid, OMB (f) The bidder agrees to execute all that it has undertaken to do, in
standard form LLL, "Disclosure of Lobbying Activities;" and compliance with its bid, if that bid is accepted in writing within (1) the
(3) He or she will include the language of this certification in all acceptance period stated in paragraph (c) above or (2) any longer
subcontracts at any tier and require that all recipients of subcontract acceptance period stated in paragraph (d) above.
awards in excess of $100,000 shall certify and disclose accordingly. 7. Small, Minority, Women-Owned Business Concern
(c) Submission of this certification and disclosure is a prerequisite for Representation
making or entering into this contract imposed by section 1352, title 31, The bidder represents and certifies as part of its bid/ offer that it --
United States Code. Any person who makes an expenditure prohibited
under this provision or who fails to file or amend the disclosure form (a) [ ] is, [ ] is not a small business concern. "Small business
to be filed or amended by this provision, shall be subject to a civil concern," as used in this provision, means a concern, including its
penalty of not less than $10,000, and not more than $100,000, for each affiliates, that is independently owned and operated, not dominant in
such failure. 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.
(d) Indian tribes (except those chartered by States) and Indian
organizations as defined in section 4 of the Indian Self-Determination (b) [ ] is, [ ] is not a women-owned business enterprise. "Women-
and Education Assistance Act (25 U.S.C. 450B) are exempt from the owned business enterprise," as used in this provision, means a
requirements of this provision. 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.
4. Organizational Conflicts of Interest Certification (c) [ ] is, [ ] is not a minority business enterprise. "Minority business
The bidder certifies that to the best of its knowledge and belief and enterprise," as used in this provision, means a business which is at
except as otherwise disclosed, he or she does not have any organiza- least 51 percent owned or controlled by one or more minority group
tional conflict of interest which is defined as a situation in which the members or, in the case of a publicly owned business, at least 51
nature of work to be performed under this proposed contract and the percent of its voting stock is owned by one or more minority group
bidder's organizational, financial, contractual, or other interests may, members, and whose management and daily operations are con-
without some restriction on future activities: trolled by one or more such individuals. For the purpose of this
(a) Result in an unfair competitive advantage to the bidder; or, definition, minority group members are:
(b) Impair the bidder's objectivity in performing the contract work. (Check the block applicable to you)
[ ] In the absence of any actual or apparent conflict, I hereby certify [ ] Black Americans [ ] Asian Pacific Americans
that to the best of my knowledge and belief, no actual or apparent [ ] Hispanic Americans [ ] Asian Indian Americans
conflict of interest exists with regard to my possible performance of this [ ] Native Americans [ ] Hasidic Jewish Americans
5. Bidder's Certification of Eligibility 8. Indian-Owned Economic Enterprise and Indian
Organization Representation (applicable only if this
(a) By the submission of this bid, the bidder certifies that to the best solicitation is for a contract to be performed on a project for an
of its knowledge and belief, neither it, nor any person or firm which has Indian Housing Authority)
an interest in the bidder's firm, nor any of the bidder's subcontractors,
is ineligible to: The bidder represents and certifies that it:
(1) Be awarded contracts by any agency of the United States (a) [ ] is, [ ] is not an Indian-owned economic enterprise. "Economic
Government, HUD, or the State in which this contract is to be enterprise," as used in this provision, means any commercial, indus-
performed; or, trial, or business activity established or organized for the purpose of
profit, which is at least 51 percent Indian owned. "Indian," as used in
(2) Participate in HUD programs pursuant to 24 CFR Part 24. this provision, means any person who is a member of any tribe, band,
(b) The certification in paragraph (a) above is a material representa- group, pueblo, or community which is recognized by the Federal
tion of fact upon which reliance was placed when making award. If it Government as eligible for services from the Bureau of Indian Affairs
is later determined that the bidder knowingly rendered an erroneous and any "Native" as defined in the Alaska Native Claims Settlement
certification, the contract may be terminated for default, and the bidder Act.
may be debarred or suspended from participation in HUD programs (b) [ ] is, [ ] is not an Indian organization. "Indian organization," as
and other Federal contract programs. used in this provision, means the governing body of any Indian tribe or
entity established or recognized by such governing body. Indian "tribe"
Previous edition is obsolete Page 2 of 3 form HUD-5369-A (11/92)
means any Indian tribe, band, group, pueblo, or community including Notice to Prospective Subcontractors of Requirement for
Native villages and Native groups (including corporations organized by Certifications of Nonsegregated Facilities
Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native A Certification of Nonsegregated Facilities must be submitted before
Claims Settlement Act, which is recognized by the Federal Govern- the award of a subcontract exceeding $10,000 which is not exempt
ment as eligible for services from the Bureau of Indian Affairs. from the provisions of the Equal Employment Opportunity clause of the
9. Certification of Eligibility Under the Davis-Bacon Act prime contract. The certification may be submitted either for each
(applicable to construction contracts exceeding $2,000) subcontract or for all subcontracts during a period (i.e., quarterly,
semiannually, or annually).
(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 Note: The penalty for making false statements in bids is prescribed
or firm ineligible to be awarded contracts by the United States in 18 U.S.C. 1001.
Government by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR
5.12(a)(1). 11. Clean Air and Water Certification (applicable to contracts
(b) No part of the contract resulting from this solicitation shall be
subcontracted to any person or firm ineligible to be awarded contracts The bidder certifies that:
by the United States Government by virtue of section 3(a) of the Davis-
Bacon Act or 29 CFR 5.12(a)(1). (a) Any facility to be used in the performance of this contract [ ] is,
[ ] is not listed on the Environmental Protection Agency List of Violating
(c) The penalty for making false statements is prescribed in the U. S. Facilities:
Criminal Code, 18 U.S.C. 1001.
(b) The bidder will immediately notify the PHA/IHA Contracting
10. Certification of Nonsegregated Facilities (applicable to Officer, before award, of the receipt of any communication from the
contracts exceeding $10,000) Administrator, or a designee, of the Environmental Protection Agency,
(a) The bidder's attention is called to the clause entitled Equal indicating that any facility that the bidder proposes to use for the
Employment Opportunity of the General Conditions of the Contract performance of the contract is under consideration to be listed on the
for Construction. EPA List of Violating Facilities; and,
(b) "Segregated facilities," as used in this provision, means any (c) The bidder will include a certification substantially the same as this
waiting rooms, work areas, rest rooms and wash rooms, restaurants certification, including this paragraph (c), in every nonexempt subcon-
and other eating areas, time clocks, locker rooms and other storage tract.
or dressing areas, parking lots, drinking fountains, recreation or 12. Previous Participation Certificate (applicable to
entertainment areas, transportation, and housing facilities provided for construction and equipment contracts exceeding $50,000)
employees, that are segregated by explicit directive or are in fact
segregated on the basis of race, color, religion, or national origin (a) The bidder shall complete and submit with his/her bid the Form
because of habit, local custom, or otherwise. HUD-2530, "Previous Participation Certificate." If the successful
bidder does not submit the certificate with his/her bid, he/she must
(c) By the submission of this bid, the bidder certifies that it does not submit it within three (3) working days of bid opening. Failure to submit
and will not maintain or provide for its employees any segregated the certificate by that date may render the bid nonresponsive. No
facilities at any of its establishments, and that it does not and will not contract award will be made without a properly executed certificate.
permit its employees to perform their services at any location under its
control where segregated facilities are maintained. The bidder agrees (b) A fully executed "Previous Participation Certificate"
that a breach of this certification is a violation of the Equal Employment [ ] is, [ ] is not included with the bid.
Opportunity clause in the contract.
13. Bidder's Signature
(d) The bidder further agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific time The bidder hereby certifies that the information contained in these
periods) prior to entering into subcontracts which exceed $10,000 and certifications and representations is accurate, complete, and current.
are not exempt from the requirements of the Equal Employment
Opportunity clause, it will: ___________________________________________________________________
(1) Obtain identical certifications from the proposed subcontrac- (Signature and Date)
(2) Retain the certifications in its files; and (Typed or Printed Name)
(3) Forward the following notice to the proposed subcontractors
(except if the proposed subcontractors have submitted identical ___________________________________________________________________
certifications for specific time periods):
Previous edition is obsolete Page 3 of 3 form HUD-5369-A (11/92)
CONTRACTOR’S AND/OR BIDDER’S INFORMATION,
FACT SHEET AND QUESTIONNAIRE
The following form, (pages two through fifteen, inclusive), must be completed and submitted with
the Form of Bid as part of the bid package.
Contractor’s and/or Bidder’s Information 00483-1
■ Houston, Texas 77057 ■ 713.260.0500 P ■ 713.260.0547 TTY ■ www.housingforhouston.com
2640 Fountain View Drive
CONTRACTOR’S AND/OR BIDDER’S
INFORMATION, FACT SHEET AND QUESTIONNAIRE (IFSQ)
NAME OF PROJECT: _____________________________________________
NAME OF OWNER: _______________________________________________
NAME OF PROPOSED CONTRACTOR/BIDDER ________________________
This document is a part of the bid document and shall be completed in its entirety. Failure to
complete and submit subject document may cause the bid proposal to be considered non-responsive,
A. All questions are to be answered in full, without exception. If copies of other
documents will answer the questions completely, they may be attached and clearly
labeled. If additional space is needed, additional pages may be attached and clearly
B. The Houston Housing Authority and/or its representative shall be entitled to contact
each and every reference listed in response to this IFSQ, and each entity referenced in
any response to any question in this document. The
(hereinafter “Contractor”), by completing this document, expressly agrees that any
information concerning the contractor in possession of said entities and references
may be made available to the Owner.
A Fair Housing and Equal Employment Opportunity Agency. For assistance: Individuals with disabilities may contact the 504/ADA
Administrator at 713-260-0528, TTY 713-260-0547 or 504_ADA@housingforhouston.com
Contractor’s and/or Bidder’s Information 00483-2
C. Only complete and accurate information shall be provided by the Contractor. The
Contractor hereby warrants that, to the best of it knowledge and belief, the responses
contained herein are true, accurate, and complete. The Contractor also acknowledges
that the Owner is relying on the truth and accuracy of the responses contained herein.
If it is later discovered that any material information given in response to a question
was provided by the contractor, knowing it was false, it shall constitute grounds for
immediate termination or rescission by the Houston Housing Authority of any
subsequent agreement between the Houston Housing Authority and the Contractor.
D. The completed form is due in with each bid proposal to the Houston Housing
E. This form, its completion by the Contractor, and its use by the Houston Housing
Authority shall not give rise to any liability on the part of the Houston Housing
Authority to the Contractor or any third party or person.
II. GENERAL BACKGROUND
A. CURRENT NAME AND ADDRESS OF CONTRACTOR:
B. PREVIOUS NAME OR ADDRESS OF CONTRACTOR, IF ANY:
C. CURRENT PRESIDENT OR CHIEF EXECUTIVE OFFICER:
YEARS IN THAT POSITION:
Contractor’s and/or Bidder’s Information 00483-3
D. NUMBER OF EMPLOYEES (PERMANENT):
E. NAME AND ADDRESS OF CURRENT AFFILIATED COMPANIES (PARENT,
III. FINANCIAL STATUS
A. Attach completed financial statements for the past three years. The financial statement
for last year must be an audited financial statement. If such statements are not
available, please furnish the following information:
LAST COMPLETE FISCAL YEAR; YEAR PRIOR TO LAST COMPLETE FISCAL YEAR
AND 2ND YEAR PRIOR TO LAST COMPLETE FISCAL YEAR
1. Revenues (Gross) _____________________
2. Expenditures (Gross) _____________________
3. Overhead & Admin. Cost (Gross) _____________________
4. Profit (Gross) _____________________
Contractor’s and/or Bidder’s Information 00483-4
1. Has the Contractor, or any of its parents or subsidiaries, ever had a Bankruptcy
Petition filed in its name, voluntarily or involuntarily? (If yes, specify date,
circumstances, and resolution)
2. Has any majority shareholder ever had a bankruptcy petition filed in his/her name,
voluntarily or involuntarily? (If yes, specify date, circumstances, and resolution)
1. Is this Contractor currently in default of any loan agreement or financing
agreement with any bank, financial institution, or other entity? (If yes, specify
details, circumstances, and prospects for resolution)
1. What is the Contractor’s current bonding capacity with a contract surety
Contractor’s and/or Bidder’s Information 00483-5
2. Please identify the Contractor’s surety company and the current line of
bonding credit that company has extended to the Contractor.
3. Please give the name, address, and telephone number of your current surety
agent or underwriting contact.
4. Have performance and payment bond claims ever been made to a surety for
this Contractor on any project, past or present?
5. If the answer to (4) is yes, please describe the claim, the name of the company
or person making the claim, and the resolution of the claim.
6. In the past five years, has any surety company refused to bond the Contractor
on any project? (If answer is yes, specify the reasons given for that refusal,
and the name and address of the surety company that refused to bond.)
Contractor’s and/or Bidder’s Information 00483-6
7. In the past five years, has any surety company refused to bound the
Contractor’s parent, or subsidiaries, on any project? (If answer is yes, please
specify the reasons given for that refusal, and the name of the surety company.)
IV. PROPOSED PROJECT PERSONNEL
A. PROPOSED PROJECT MANAGER
1. List the name, qualifications, and background of your proposed project
manager for this project. (Include the names and addresses of companies
he/she has been affiliated with in the past five years.)
2. List at least three projects, by size, type, and duration, that the proposed project
manager has supervised in the last five years for the Contractor, of for any
B. PROPOSED SUPERINTENDENT
1. List the qualifications and background of your proposed job superintendent (if
different than the project manager) and include the names and addresses of any
companies he/she has been affiliated with in the last five years.
Contractor’s and/or Bidder’s Information 00483-7
2. List at least three projects, by size, type, and duration, that the proposed job
superintendent has supervised in the last five years, for the Contractor, or for
any other company.
V. COMPANY EXPERIENCE – SIMILAR PROJECTS
A. List all projects of reasonably similar nature, scope, and duration performed by your
company in the last seven years, specifying, where possible, the name and last known
address of each owner of those projects.
Contractor’s and/or Bidder’s Information 00483-8
B. Of the projects listed in response to Subsection (A), identify any which was the subject
of a substantial claim or lawsuit by, or against, the Contractor. Please identify in your
response the nature of such claim or lawsuit, the court in which the case was filed, and
the details of its resolution.
VI. LEGAL PROCEEDINGS
List all construction arbitration demands filed by, or against, the Contractor in the last
five years, and identify the nature of the claim, the amount in dispute, the parties, and
the ultimate resolution of the proceeding.
List all construction related lawsuits (other than labor or personal injury litigation)
filed by, or against, the Contractor in the last five years, and identity the nature of the
claim, the amount in dispute, the parties, and the ultimate resolution of the lawsuit.
Contractor’s and/or Bidder‘s Information 00483-9
C. OTHER PROCEEDINGS
1. Identify any lawsuits, administrative proceedings, or hearings initiated by the
National Labor Relations Board of similar state agency in the past seven years
concerning any labor practices of the Contractor. Identify the nature of any
proceeding and its ultimate resolution.
2. Identify any lawsuits, administrative proceedings, or hearings initiated by the
Occupational Safety and Health Administration concerning the project safety
practices of the Contractor in the last seven years. Identify the nature of any
proceeding and its ultimate resolution.
3. Identify any lawsuits, administrative proceedings, or hearings initiated by the
Internal Revenue Service, or any state revenue department, concerning the tax
liability of the Contractor (other than audits) in the last seven years. Identify
the nature of any proceeding and its ultimate resolution.
Contractor’s and/or Bidder‘s Information 00483-10
4. Have any criminal proceedings or investigations been brought against the
Contractor in the last ten years? (If the answer is yes, please attach a complete
and detailed report with your responses to this questionnaire.)
Contractor’s and/or Bidder‘s Information 00483-11
Major Supplier #1
Major Supplier #2
Contract Price: ______________________________________________
Contractor’s and/or Bidder’s Information 00483-12
Contract Price: ________________________________________________
Contractor’s and/or Bidder’s Information 00483-13
Contractor’s and/or Bidder’s Information 00483-14
Please list any additional information that you believe would assist the Houston Housing
Authority in evaluating the possibility of using the Contractor on this project.
Contractor’s and/or Bidder‘s Information 00483-15
■ Houston, Texas 77057 ■ 713.260.0500 P ■ 713.260.0547 TTY ■ www.housingforhouston.com
2640 Fountain View Drive
M/WBE PARTICIPATION: The Contractor agrees to makes its best efforts to subcontract
with minority business enterprises and/or women business enterprises (herein called M/WBE)
certified as such or recognized by Houston Housing Authority as a certified M/WBE. Contractor
shall make its best efforts to subcontract a sufficient dollar amount with M/WBEs to ensure that
a minimum of 30 percent of the final contract dollars are expended on one or more M/WBEs.
All adjustments that cause the contract price to increase will also increase the total amount that
Contractor must make its best efforts to expend on M/WBEs.
USING BEST EFFORTS TO FULFILL M/WBE REQUIREMENT: In the event Houston
Housing Authority has a reasonable belief that Contractor will not use his/her/its best efforts to
meet the 30 percent M/WBE participation goal, Houston Housing Authority reserves the right to
pull work from the contract. Best efforts may be established by a showing that Contractor has
contacted and solicited bids/quotes from subcontractors and worked with the Housing Authority
to seek assistance in identifying M/WBEs.
FAILURE TO USE YOUR BEST EFFORTS TO COMPLY WITH HOUSTON HOUSING
AUTHORITY BOARD OF COMMISSIONERS RESOLUTION NO. 1058 MAY
CONSTITUTE BREACH OF CONTRACT AND SUBJECT THE CONTRACT TO
NOTIFICATION OF M/WBE PARTICIPATION: Contractor agrees to promptly complete
and return all M/WBE Confirmation of Participation and M/WBE Confirmation of Payment
forms utilized by Houston Housing Authority to confirm M/WBE participation. Contractor
agrees to submit proof of payment made to each M/WBE subcontractor by submitting copies of
checks made payable to the respective M/WBE subcontractor signed by the Contractor.
Note: This form must bear a signature.
A Fair Housing and Equal Employment Opportunity Agency. For assistance: Individuals with disabilities may contact the
504/ADA Administrator at 713-260-0528, TTY 713-260-0547 or 504_ADA@housingforhouston.com.
M/WBE Participation 00484-1
BIDDER’S PROPOSED M/WBE PARTICIPATION FORM
Bidder proposes to work with the following M/WBE participants:
Name of M/WBE Certifying Entity Percent of
Participant (City/Metro/HISD) Total Work
M/WBE Participation 00484-2
The Housing Authority 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 advantageous to the Housing Authority.
In determining the responsibility of a bidder, the Housing Authority will consider such matters as
the bidder’s integrity, compliance with public policy, record of past performance and financial
and technical resources (including construction and technical equipment).
The Housing Authority will award a contract only to a responsible prospective contractor who
has the ability to perform successfully under the terms and conditions of the proposed contract.
Evaluation Criteria 00490-1
CONFLICT OF INTEREST QUESTIONNAIRE
Letter dated August 2011 issued by the Purchasing Department of Houston Housing Authority to
all Vendors, and Form CIQ “Conflict of Interest Questionnaire”, are included herein on the
following pages. The Form shall be submitted as part of the bid package.
Conflict of Interest Questionnaire 00491-1
2640 Fountain View Drive Suite 408 Houston, Texas 77057 | 713.260.0552 P| 713.260.0810 F
TO: ALL VENDORS
FROM: PURCHASING DEPARTMENT
DATE: AUGUST 5, 2011
SUBJECT: NOTICE TO VENDORS
A person who contracts or seeks to contract with the Houston Housing Authority (“Housing Authority")
for the sale or purchase of property, goods or services or is an agent of such a person (a “vendor") shall
file a completed Conflict of Interest Questionnaire (CIQ) with the Housing Authority's records
administrator not later than the seventh (7th) business day after the date that the vendor (i) begins contract
discussions or negotiations with the Housing Authority, or (ii) submits to the Housing Authority an
application, response to a request for proposals or bids, correspondence, or another writing related to a
potential agreement with the Housing Authority.
A vendor shall file an updated completed CIQ with the Housing Authority's records administrator not
later than (i) September 1st of each year in which an activity described above is pending and (ii) the
seventh (7th) business day after the date of an event that would make a statement in the CIQ incomplete
Completed CIQs may be addressed to and filed with Sarah Monigold, Purchasing Officer, Houston
Housing Authority 2640 Fountain View, Suite 408, Houston, TX 77057.
The Houston Housing Authority's designated local government officers include:
Commissioners – David Mincberg, Reuben Casarez, Lance Gilliam, Bobbie Figures, Nicola F. Toubia,
Assata-Nicole Richards and Phillis Wilson.
Officers – Tory Gunsolley, Sharon Haynie, Lloyd Waguespack, Joshua Meehan, Bobken
Simonians, Mark Thiele, George Griffin.
Should you have any question please contact Sarah Monigold at 713-260-0552.
Fair Housing and Equal Employment Opportunity Agency
Individuals with disabilities may contact the 504/ADA Administrator at 713-260-0528
TTY 713-260-0547 or 504_ADA@housingforhouston.com to request reasonable accommodations.
CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ
For vendor or other person doing business with local governmental entity
This questionnaire reflects changes made to the law by H.B. 1491, 80th Leg., Regular Session. OFFICE USE ONLY
This questionnaire is being filed in accordance with Chapter 176, Local Government Code Date Received
by a person who has a business relationship as defined by Section 176.001(1-a) with a local
governmental entity and the person meets requirements under Section 176.006(a).
By law this questionnaire must be filed with the records administrator of the local governmental
entity not later than the 7th business day after the date the person becomes aware of facts
that require the statement to be filed. See Section 176.006, Local Government Code.
A person commits an offense if the person knowingly violates Section 176.006, Local
Government Code. An offense under this section is a Class C misdemeanor.
1 Name of person who has a business relationship with local governmental entity.
Check this box if you are filing an update to a previously filed questionnaire.
(The law requires that you file an updated completed questionnaire with the appropriate filing authority not
later than the 7th business day after the date the originally filed questionnaire becomes incomplete or inaccurate.)
Name of local government officer with whom filer has employment or business relationship.
Name of Officer
This section (item 3 including subparts A, B, C & D) must be completed for each officer with whom the filer has an
employment or other business relationship as defined by Section 176.001(1-a), Local Government Code. Attach additional
pages to this Form CIQ as necessary.
A. Is the local government officer named in this section receiving or likely to receive taxable income, other than investment
income, from the filer of the questionnaire?
B. Is the filer of the questionnaire receiving or likely to receive taxable income, other than investment income, from or at the
direction of the local government officer named in this section AND the taxable income is not received from the local
C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local
government officer serves as an officer or director, or holds an ownership of 10 percent or more?
D. Describe each employment or business relationship with the local government officer named in this section.
Signature of person doing business with the governmental entity Date
TABLE OF CONTENTS
Number Title Pages
Section 00500 Construction Contract 00500-1 through 8
Section 00610 Form of Performance Bond 00610-1 through 4
Section 00620 Form of Payment Bond 00620-1 through 3
Section 00700 General Conditions (Form HUD- 5370 –
General Conditions of the Contract For
Construction – Public Housing Programs) 00700-1 through 20
Section 00800 Supplementary General Conditions 00800-1 through 12
Section 00821 Equal Opportunity for Business and
Lower Income Persons 00821-1 through 22
Section 00822 Affirmative Action for Handicapped Workers 00822-1 through 2
Section 00823 Houston housing Authority
Section 3 Policy 00823-1 through 21
Section 00830 Wage Determination 00830-1 through 4
Table of Contents – Contract Requirements Page1
Replacement of cabinets and appliances, and installation of VCT flooring
at Lyerly Elderly Housing Development
75 Lyerly, Houston, Texas 77022
This Contract is made and entered into by and between the Houston Housing Authority, having
its principal place of business at 2640 Fountainview, Suite 400, Houston, Texas 77057,
hereinafter referred to as the “HOUSTON HOUSING AUTHORITY” and _______________,
having its principal place of business at _________________________ hereinafter referred to as
WHEREAS, the Houston Housing Authority is a public body corporate and politic, duly
organized and validly existing and in good standing under the laws of the State of Texas and
currently engaged in such business as defined in the Housing Authorities Law in the Local
Government code of the State of Texas, including the services of providing decent, safe and
sanitary housing to the residents of its facilities, low income families, the elderly, the
handicapped and the disabled;
WHEREAS, the CONTRACTOR is in the business of construction and is licensed to conduct
business in the State of Texas as an Independent Contractor.
WHEREAS, the Houston Housing Authority in order to carry out Replacement of cabinets and
installation of VCT flooring at Lyerly Elderly Housing Development issued an Invitation for
Bids # 11-40, inviting bids from general CONTRACTORS offering to perform the specified
WHEREAS, the bids received were evaluated according to the evaluation criteria stated, and the
contract was awarded to the CONTRACTOR who was determined to be the lowest responsible
and responsive bidder; and
NOW THEREFORE, in consideration of the promises of the parties herein and the mutual
covenants set forth in this contract, the HOUSTON HOUSING AUTHORITY and the
CONTRACTOR agree to be legally bound as follows:
This contract shall become effective on the date it is executed and shall continue in effect for a
period of 150 consecutive calendar days after issuance of a Notice to Proceed or for a period
stated in the Notice to Proceed, or until terminated sooner or extended by authorized Change
The HOUSTON HOUSING AUTHORITY may terminate this contract for cause or for
convenience by giving thirty (30) days prior notice to the CONTRACTOR, in which event the
CONTRACTOR will be entitled to payment of the portion of the work performed until the date
the contract is terminated. Work performed will be defined as those items which have been
completed or are in the process of being completed, which will include those items ordered as
part of this contract.
Construction Contract 00500-1
In consideration of the accessibility improvement work to be performed by the CONTRACTOR
the HOUSTON HOUSING AUTHORITY shall pay the CONTRACTOR a fee of
($________________). The fee is bifurcated into labor and materials charges as follows:
Labor/Overhead and Profit $____________
Total Amount $____________
Payments will be made progressively within thirty (30) days of receipt of approvable invoices.
Each invoice must be approved by the Contracting Officer.
STATEMENT OF WORK
The statement of work described in Invitation for Bids # 11-40 is incorporated herein as if fully
copied verbatim and is made part of this contract. Any request for changes in the scope of work
must be submitted in writing to and approved by the Contracting Officer through a duly executed
change order. Such change order will be incorporated into this contract as if fully copied
verbatim and made a part of this contract.
The CONTRACTOR shall provide the HOUSTON HOUSING AUTHORITY with a
schedule of the dates during which the work will be performed according to the terms of this
agreement. The schedule must be submitted to HOUSTON HOUSING AUTHORITY within
five (5) days after issuance of the Notice to Proceed. Any request for extension of time to
perform under this contract must be made to and approved by the Contracting Officer.
CONTRACTOR understands that HOUSTON HOUSING AUTHORITY is a governmental
entity and should it not be funded for any period during the term of this Agreement, any sums
due for the remainder of the term shall be forgiven, and this agreement shall be automatically
terminated and HOUSTON HOUSING AUTHORITY shall not be liable for payment thereof.
HOUSTON HOUSING AUTHORITY must give written notice to the CONTRACTOR as
soon as possible after learning that funds will not be available. For this contract the HOUSTON
HOUSING AUTHORITY hereby certifies that adequate funds are available to complete the
services outlined herein.
Before commencing work the CONTRACTOR shall furnish HOUSTON HOUSING
AUTHORITY with certificates of insurance showing that the following insurance is in force
and will insure all operations under this Agreement, and name HOUSTON HOUSING
AUTHORITY as an additional insured.
Construction Contract 00500-2
a. Worker’s compensation in accordance with the State of Texas rules and
b. General liability insurance with a single limit for bodily injury of $1,000,000 per
occurrence and property damage limit of no less than $1,000,000 per occurrence.
The insurance may have a combined aggregate of coverage amounting to no less
than $1,000,000. Such insurance shall protect the Houston Housing Authority
against claims of bodily injury or death and property damage to others. The
insurance shall cover the use of all equipment, hoists and vehicles used on the
site(s) not covered by CONTRACTOR automobile liability under paragraph c.
below. If 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 execution date of the Agreement and the extended
reporting period may not be less than five years following the completion date of
c. Automobile liability on owned and non-owned motor vehicles used on the site(s)
or in connection herewith for a combined single limit of bodily injury and
property damage of not less than $1,000,000 per occurrence.
All insurance shall be carried with companies that are financially responsible and admitted to do
business in the State of Texas. The CONTRACTOR shall not permit the insurance policies
required for this Agreement to lapse during the period for which this contract is in effect.
All certificates of insurance shall provide that no coverage may be cancelled or non-renewed by
the insurance company until at least 30 days prior written notice has been given to HOUSTON
HOUSING AUTHORITY. Proof of the required insurance coverage must be provided to
HOUSTON HOUSING AUTHORITY before CONTRACTOR commences work under this
This contract shall be construed under and in accordance with the laws of the State of Texas. Its
validity and the interpretation of its terms shall be governed by the laws of the State of Texas. If
any provisions of this contract are determined to be invalid or unenforceable by a court of
competent jurisdiction, the remaining terms and conditions hereof shall remain in full force and
In case any one or more of the provisions contained in this contract shall for any reason be held
to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision thereof and this contract shall be construed
as if such invalid, illegal, or unenforceable provision had never been contained herein.
Construction Contract 00500-3
In the event of any controversy, claim, or dispute between HOUSTON HOUSING
AUTHORITY and CONTRACTOR affecting or relating to the subject matter or the
performance of this Contract, the prevailing party will be entitled to recover from the non-
prevailing party all the prevailing party’s reasonable expenses, including but not limited to
reasonable attorney’s fees, expert witness fees, and court costs.
The CONTRACTOR agrees to give HOUSTON HOUSING AUTHORITY immediate notice
in writing of any actions or suits filed and prompt notice of any claims made against HOUSTON
HOUSING AUTHORITY or any of the parties involved in the implementation and
administration of this Contract.
If the CONTRACTOR fails to prosecute the work with diligence and fails to complete the work
within the specified time of this Contract, or any extension thereof, the HOUSTON HOUSING
AUTHORITY may by a written notice to the CONTRACTOR, terminate this Contract. In this
event the HOUSTON HOUSING AUTHORITY may complete the work as necessary and may
take possession of and use any materials or equipment on the work site which is necessary for
completing the work.
The CONTRACTOR shall be liable for any damage to the HOUSTON HOUSING
AUTHORITY resulting from the CONTRACTOR’S failure to complete the work within the
specified time, whether or not the CONTRACTOR continues to work under the terms of this
Contract. This liability includes any increased costs incurred by the HOUSTON HOUSING
AUTHORITY in completing the work.
If the CONTRACTOR fails to complete the work within the time specified in the Bid
Documents dated August 2011, the CONTRACTOR shall pay to the HOUSTON HOUSING
AUTHORITY as liquidated damages the sum of $1,000.00 per day for each day of delay as
stated in the Bid Documents dated August 2011. If the CONTRACTOR’S delay or non-
performance is excused by HOUSTON HOUSING AUTHORITY in writing then the
liquidated damages shall not be due to the HOUSTON HOUSING AUTHORITY.
MATERIALS AND WORKMANSHIP
All equipment, materials and articles furnished under this Contract shall be new and of the most
suitable quality for the purpose intended. The CONTRACTOR shall obtain HOUSTON
HOUSING AUTHORITY’S approval of all the material and equipment which the
CONTRACTOR contemplates incorporating into the work. The CONTRACTOR shall secure
and pay for all permits fees and licenses necessary for the proper execution and completion of
the work stated herein.
Construction Contract 00500-4
The CONTRACTOR shall receive payment less ten percent (10%) retainage as set forth in the
Contract Documents. The retained payment shall be released by HOUSTON HOUSING
AUTHORITY upon completion of all work, acceptance, issuance of full certificate of
occupancy and receipt by HOUSTON HOUSING AUTHORITY of all certified close out
documents as provided in the Contract Documents. The retainage amount will be deposited in an
interest bearing account in accordance with applicable law.
GENERAL CONDITIONS AND SUPPLEMENTAL GENERAL CONDITIONS
OF THE CONTRACT FOR CONSTRUCTION
The CONTRACTOR shall comply with the general conditions of the Contract for Construction
and the Supplementary General Conditions herewith attached and made an essential part of this
The CONTRACTOR shall comply with, and shall carry out the work listed in the Summary of
Work attached hereto.
The CONTRACTOR has furnished the required Performance Bond and the Payment Bond.
The CONTRACTOR shall make its best efforts to meet the 30% M/WBE participation goal and
submit proof of payment to M/WBE subcontractors. The CONTRACTOR has signed the
M/WBE Participation Form attached to this contract.
This Contract is not assignable by the CONTRACTOR or the HOUSTON HOUSING
AUTHORITY without the written consent of the other. Such consent shall be provided within
fifteen (15) days of the request of this assignment. If such consent is not provided within fifteen
(15) days of the request for assignment, such request shall be deemed rejected.
COOPERATION WITH ARCHITECT & HOUSING AUTHORITY STAFF
CONTRACTOR agrees to cooperate with the Architect, Engineer and Housing Authority staff.
No covenant or condition of this contract may be waived except by written consent of the
waiving party. Forbearance or indulgence by one party in any regard whatsoever shall not
constitute a waiver of the covenant or condition to be performed by the other party to which the
same may apply, and until complete performance of any covenant or condition, the aggrieved
party shall be entitled to invoke any remedy available to it under this contract or by law or in
equity despite such forbearance or indulgence.
Construction Contract 00500-5
Service of all notices under this contract shall be sufficient if given personally or mailed to the
party involved at its respective address herein set forth, or at such address as such party may
provide in writing from time to time. Any such notice mailed to such address shall be effective
when deposited in the United States mail, duly addressed, and with postage prepaid. Notices
delivered in person shall be deemed communicated at the time of actual delivery.
The contact person of the HOUSTON HOUSING AUTHORITY will be:
Vice-President, Real Estate Investments and Development
Houston Housing Authority
2640 Fountainview, 4th Floor, Suite 406
Houston, TX 77057
(713) 260-0815 (FAX)
The CONTRACTOR agrees that if the U. S. Department of Housing and Urban Development
requires a cost certification after substantial completion of the work performed under this
Contract, then the CONTRACTOR agrees to cooperate and assist in provision of such cost
certification, provided that any payment to the CONTRACTOR hereunder shall not be
conditioned upon any such cost certification, but shall be paid in accordance with the terms of
Time is of the essence in this Contract and each and all of its provisions.
This Contract shall be construed under and in accordance with the laws of the State of Texas and
all the obligations of the parties created hereunder are enforceable in Harris County, Texas.
This Contract shall be binding on and inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, legal representatives, successors and assigns.
Construction Contract 00500-6
COMPLIANCE WITH FEDERAL REGULATIONS
The CONTRACTOR shall comply with the Federal Regulations listed below:
The requirements of Title VII of the Civil Rights Act of 1968 and Title VI of the Civil Rights
Act of 1964, relating to prohibitions against the discrimination in housing and the benefits of
federally funded programs because of race, color, religion, sex or national origin.
Shall adhere to the prohibitions against discrimination on the basis of age under the Age
Discrimination Act of 1975 and prohibit discrimination against handicapped individuals
under Section 504 of the Rehabilitation Act of 1973 and the American with Disabilities Act
The requirements of Executive Order 11246 relating to equal employment opportunity in
connection with federally funded programs.
Meet the requirements of Section 3 of the Housing and Urban Development Act of 1968
relating to the training and employment of individuals and contracting for business
opportunities in metropolitan areas in which federally funded programs are being operated.
The requirements of Executive Order 11625, 12432 and 12138 to implement Minority
Business Enterprises (MBE) and Women’s Business Enterprise (WBE) participation goals in
Federal Agencies Programs.
TAX EXEMPT STATUS
The HOUSTON HOUSING AUTHORITY is a unit of government and its property is used
solely for essential public and governmental purposes, and is exempt from all taxes, pursuant to
Section 392.005 and 392.006 of the Housing Authorities Law.
Construction Contract 00500-7
This contract along with the Statement of Work, the Invitation for Bids (IFB) # 11-40 and the
Bid submitted by the CONTRACTOR, which are incorporated herein as if fully copied
verbatim, constitute the entire contract between the HOUSTON HOUSING AUTHORITY and
CONTRACTOR and supersede any prior understandings, written or oral, between the parties
respecting the subject matter herein. Any oral representations or modifications concerning this
instrument shall be of no force or effect. This contract shall not be amended, altered or changed
except by a written agreement signed by the parties herein.
Executed in Houston, Harris County, Texas, this the _______ day of _____________, 2011.
HOUSTON HOUSING AUTHORITY CONTRACTOR
President & CEO (Name of the Company and Title)
Construction Contract 00500-8
FORM OF PERFORMANCE BOND
THE STATE OF TEXAS KNOW ALL MEN BY THESE
COUNTY OF HARRIS
That we (1) ____________________________________________________________
__________ hereinafter called Principal, and (3) _______________________________
____________ of _________________________________________________, State of
_________________________ hereinafter called the Surety, are held and firmly bound unto (4)
_________________________________________________________ hereinafter called the
Owner, in the penal sum of ______________________________
_________________________________________________________ ($ __________
___________) Dollars in lawful money of the United States, to be paid in (5) _________
_________________________________________________for payment of which sum will and
truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly
and severally, firmly by these presents.
THE CONDITIONOF THIS OBLIGATION is such that Whereas, the Principal entered into a
certain contract with (6) ______________________________________________
___________________the Owner, dated the _______ day of _______________ A.D., 2010 a
copy of which is hereto attached and made a part thereof for the modernization and site
___________________ hereinafter called the "work."
These footnotes refer to the numbers in body of Contract above:
(1) Correct name of Contractor.
(2) A Corporation, a Partnership, or an Individual as the case may be.
(3) Correct name of Surety.
(4) Correct name of Owner.
NOW THEREFORE, if the Principal shall promptly, truly and faithfully perform the work in
accordance with the Plans, Specifications and Contract Documents during the original term
thereof, and any extensions thereof which may be granted by the Owner, with or without notice
to the Surety, and if he shall satisfy all claims and demands incurred under such Contract, and
shall fully indemnify and save harmless the Owner from all costs and damages which it may
suffer by reason of failure to do so, and shall reimburse and repay the Owner all outlay and
expense which the Owner may incur in making good any default, then this obligation shall be
void; otherwise it shall remain in full force and effect.
Form of Performance Bond 00610-1
PROVIDED FURTHER, that if legal action be filed upon this bond, venue shall lie in Harris
County, Texas, and that said surety, for value received hereby stipulates and agrees that no
change, extension of time, alteration or addition to the terms of the Contract or to the work to be
performed there under or the specifications accompanying the same shall in any wise affect its
obligation on this bond, and it does hereby waive notice of any such change, extension of time,
alteration or addition to the terms of the Contract or to the work or to the specifications.
IN WITNESS WHEREOF, this instrument is executed in six counterparts, each one of which
shall be deemed an original, this the ______ day of _______________________ 2011.
Witness as to Principal Address
Surety Secretary Attorney-in-fact
Witness as to Surety Address
Form of Performance Bond 00610-2
Note: If Contractor is Partnership, all partners should execute bond.
Address Business Address
(Affix Corporate Seal)
(Affix Corporate Seal)
Form of Performance Bond 00610-3
CERTIFICATION AS TO CORPORATE PRINCIPAL
I, ___________________________________________________, certify that I am the
_______________________________, of the Corporation names as Principal in the within bond;
that _______________________________ who signed the bond on behalf of the Principal was
then _________________________________________ of said corporation; that I know his
signature and his signature thereto is genuine; and that said bond was duly signed, sealed and
attested to, for and in behalf of said corporation by authority of its governing body.
The rate of premium on this bond is per thousand. Total amount of premium charges
Form of Performance Bond 00610-4
FORM OF PAYMENT BOND
THE STATE OF TEXAS KNOW ALL MEN BY THESE
COUNTY OF HARRIS
That we, ________________________________________________ as principal, and
______________________________________ as surety(s) are hereby held and firmly bound
unto the Houston Housing Authority a public corporation in the State of Texas in the penal sum
of __________________________________________ Dollars ($ _____________________) for
the payment, whereof, the said principal and surety(s) bind themselves, their heirs, executors,
administrators and successors, jointly and severally and firmly by these presents.
The conditions of this obligation are such that whereas, the Principal entered into a certain
contract incorporated herein by reference and made part thereof; with the said Housing
Authority, dated ________________________ for the provision of ___________________, in
Houston, Texas 770___, in accordance with the Contract Documents.
NOW THEREFORE, the condition of this obligation is such that, if the Principal shall
promptly make payment to all claimants as defined in Article 5160 Revised Civil Statues of
Texas, 1925 as amended by House Bill 544, Acts 56th Legislature, prosecution of the work
provided for in said contract, then this obligation shall be null and void, otherwise it shall remain
in full force and affect.
This bond is made and entered into solely for the protection of all claimants supplying labor and
material in the protection of the work provided for in said Contract, and all such claimants shall
have a direct right of action under the bond amended by House Bill 544, Act 56th Legislature,
Regular Session, 1959.
PROVIDED FURTHER, that the surety for value received hereby stipulates and agrees that no
change, extension of time, alteration, or addition to the term of the Contract, for the work
performed thereunder, or the specifications accompanying the same, shall in any wise affect its
obligation on this bond and it does hereby waive notice of any changes, extension of time,
alterations, or addition to the terms of the Contract, or to the work or the specifications.
PROVIDED FURTHER, that if any legal action be filled upon this bond, venue shall lie in
_________________ County, ___________________________________,at the ___________
day of ________________, 2011.
Form of Payment Bond 00620-1
________________________ ________________________Witness as
to Surety Address
NOTE: If Contractor is a Partnership, all parties should execute bond.
_________________________________________________ Individual Principal
_________________________________________________ Corporate Principal
(Affix Corporate Seal)
____________________________ Corporate Surety
(Affix Corporate Seal)
Form of Payment Bond 00620-2
CERTIFICATION AS TO CORPORATE PRINCIPAL
I, ____________________________________________________, certify that I am the
__________________________________, of the Corporation names as Principal in the within
bond: that ___________________________________________ who signed the bond on behalf
of the Principal was then ____________________________________ of said corporation; that I
know his signature and his signature thereto is genuine; and that said bond was duly signed,
sealed and attested to, for and in behalf of said corporation by authority of its governing body.
The rate of premium on this bond is per thousand. Total amount of premium charges
Form of Payment Bond 00620-3
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION
Form HUD-5370 “General Conditions for Construction Contracts – Public Housing Programs”,
dated November 2006, pages one through nineteen, is hereby included in the Contract
Documents as enumerated on the following pages.
General Conditions of the Contract for 00700-1
General Conditions for Construction U.S. Department of Housing and Urban
Contracts - Public Housing Programs Office of Public and Indian Housing
OMB Approval No. 2577-0157 (exp. 12/31/2011)
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
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
Construction Requirements 28. Contract Modifications 10
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 Damages 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
14. Temporary Buildings and Transportation Materials 6 38. Subcontracting with Small and Minority Firms, Women’s 13
Business Enterprise, and Labor Surplus Area Firms
15. Availability and Use of Utility Services 6 39. Equal Employment Opportunity 13
16. Protection of Existing Vegetation, Structures, Equipment, 40. Employment, Training, and Contracting Opportunities for 14
Utilities, and Improvements 6 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
18. Clean Air and Water 7 42. Interest of Members, Officers, or Employees and Former 15
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 Completion 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 Construction 8 47. Non-Federal Prevailing Wage Rates 19
24. Prohibition Against Liens 9 48. Procurement of Recovered Materials 19
Previous editions are obsolete Page 1 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
1. Definitions (a) The Contractor shall furnish all necessary labor,
materials, tools, equipment, and transportation necessary
(a) “Architect” means the person or other entity engaged by for performance of the work. The Contractor shall also
the PHA to perform architectural, engineering, design, furnish all necessary water, heat, light, and power not
and other services related to the work as provided for in made available to the Contractor by the PHA pursuant to
the contract. When a PHA uses an engineer to act in this the clause entitled Availability and Use of Utility Services
capacity, the terms “architect” and “engineer” shall be herein.
synonymous. The Architect shall serve as a technical (b) The Contractor shall perform on the site, and with its own
representative of the Contracting Officer. The Architect’s organization, work equivalent to at least [ ] (12 percent
authority is as set forth elsewhere in this contract. unless otherwise indicated) of the total amount of work to
(b) “Contract” means the contract entered into between the be performed under the order. This percentage may be
PHA and the Contractor. It includes the forms of Bid, the reduced by a supplemental agreement to this order if,
Bid Bond, the Performance and Payment Bond or Bonds during performing the work, the Contractor requests a
or other assurance of completion, the Certifications, reduction and the Contracting Officer determines that the
Representations, and Other Statements of Bidders (form reduction would be to the advantage of the PHA.
HUD-5370), these General Conditions of the Contract for (c) At all times during performance of this contract and until
Construction (form HUD-5370), the applicable wage rate the work is completed and accepted, the Contractor shall
determinations from the U.S. Department of Labor, any directly superintend the work or assign and have on the
special conditions included elsewhere in the contract, the work site a competent superintendent who is satisfactory
specifications, and drawings. It includes all formal to the Contracting Officer and has authority to act for the
changes to any of those documents by addendum, 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
thority by the PHA to enter into, administer, and/or Contractor’s fault or negligence, and shall take proper
terminate this contract and designated as such in writing safety and health precautions to protect the work, the
to the Contractor. The term includes any successor workers, the public, and the property of others. The
Contracting Officer and any duly authorized Contractor shall hold and save the PHA, its officers and
representative of the Contracting Officer also designated agents, free and harmless from liability of any nature
in writing. The Contracting Officer shall be deemed the occasioned by the Contractor’s performance. The
authorized agent of the PHA in all dealings with the Contractor shall also be responsible for all materials
Contractor. delivered and work performed until completion and
(d) “Contractor” means the person or other entity entering acceptance of the entire work, except for any completed
into the contract with the PHA to perform all of the work unit of work which may have been accepted under the
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 bench marks indicated on the drawings and be
as described in the contract clause entitled Specifications responsible for all lines, levels, and measurements of all
and Drawings for Construction herein. work executed under the contract. The Contractor shall
(f) “HUD” means the United States of America acting through verify the figures before laying out the work and will be
the Department of Housing and Urban Development held responsible for any error resulting from its failure to
including the Secretary, or any other person designated do so.
to act on its behalf. HUD has agreed, subject to the (f) The Contractor shall confine all operations (including
provisions of an Annual Contributions Contract (ACC), to storage of materials) on PHA premises to areas
provide financial assistance to the PHA, which includes authorized or approved by the Contracting Officer.
assistance in financing the work to be performed under (g) The Contractor shall at all times keep the work area,
this contract. As defined elsewhere in these General including storage areas, free from accumulations of
Conditions or the contract documents, the determination waste materials. After completing the work and before
of HUD may be required to authorize changes in the work final inspection, the Contractor shall (1) remove from the
or for release of funds to the PHA for payment to the premises all scaffolding, equipment, tools, and materials
Contractor. Notwithstanding HUD’s role, nothing in this (including rejected materials) that are not the property of
contract shall be construed to create any contractual the PHA and all rubbish caused by its work; (2) leave the
relationship between the Contractor and HUD. work area in a clean, neat, and orderly condition
(g) “Project” means the entire project, whether construction satisfactory to the Contracting Officer; (3) perform all
or rehabilitation, the work for which is provided for in specified tests; and, (4) deliver the installation in
whole or in part under this contract. complete and operating condition.
(h) “PHA” means the Public Housing Agency organized (h) The Contractor’s responsibility will terminate when all
under applicable state laws which is a party to this work has been completed, the final inspection made, and
contract. the work accepted by the Contracting Officer. The
(j) “Specifications” means the written description of the Contractor will then be released from further obligation
technical requirements for construction and includes the except as required by the warranties specified elsewhere
criteria and tests for determining whether the in the contract.
requirements are met.
(l) “Work” means materials, workmanship, and manufacture 3. Architect’s Duties, Responsibilities, and Authority
and fabrication of components.
(a) The Architect for this contract, and any successor, shall
2. Contractor’s Responsibility for Work be designated in writing by the Contracting Officer.
Previous editions are obsolete Page 2 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
(b) The Architect shall serve as the Contracting Officer’s
technical representative with respect to architectural, 6. Construction Progress Schedule
engineering, and design matters related to the work
performed under the contract. The Architect may provide (a) The Contractor shall, within five days after the work
direction on contract performance. Such direction shall be commences on the contract or another period of time
within the scope of the contract and may not be of a determined by the Contracting Officer, prepare and
nature which: (1) institutes additional work outside the submit to the Contracting Officer for approval three
scope of the contract; (2) constitutes a change as defined copies of a practicable schedule showing the order in
in the Changes clause herein; (3) causes an increase or which the Contractor proposes to perform the work, and
decrease in the cost of the contract; (4) alters the the dates on which the Contractor contemplates starting
Construction Progress Schedule; or (5) changes any of and completing the several salient features of the work
the other express terms or conditions of the contract. (including acquiring labor, materials, and equipment). The
(c) The Architect’s duties and responsibilities may include but schedule shall be in the form of a progress chart of
shall not be limited to: suitable scale to indicate appropriately the percentage of
(1) Making periodic visits to the work site, and on the work scheduled for completion by any given date during
basis of his/her on-site inspections, issuing written the period. If the Contractor fails to submit a schedule
reports to the PHA which shall include all observed within the time prescribed, the Contracting Officer may
deficiencies. The Architect shall file a copy of the withhold approval of progress payments or take other
report with the Contractor’s designated representative remedies under the contract until the Contractor submits
at the site; the required schedule.
(2) Making modifications in drawings and technical (b) The Contractor shall enter the actual progress on the
specifications and assisting the Contracting Officer in chart as required by the Contracting Officer, and
the preparation of change orders and other contract immediately deliver three copies of the annotated
modifications for issuance by the Contracting Officer; schedule to the Contracting Officer. If the Contracting
(3) Reviewing and making recommendations with respect Officer determines, upon the basis of inspection
to - (i) the Contractor’s construction progress conducted pursuant to the clause entitled Inspection and
schedules; (ii) the Contractor’s shop and detailed Acceptance of Construction, herein that the Contractor is
drawings; (iii) the machinery, mechanical and other not meeting the approved schedule, the Contractor shall
equipment and materials or other articles proposed take steps necessary to improve its progress, including
for use by the Contractor; and, (iv) the Contractor’s those that may be required by the Contracting Officer,
price breakdown and progress payment estimates; without additional cost to the PHA. In this circumstance,
and, the Contracting Officer may require the Contractor to
(4) Assisting in inspections, signing Certificates of increase the number of shifts, overtime operations, days
Completion, and making recommendations with of work, and/or the amount of construction plant, and to
respect to acceptance of work completed under the submit for approval any supplementary schedule or
contract. schedules in chart form as the Contracting Officer deems
necessary to demonstrate how the approved rate of
4. Other Contracts progress will be regained.
(c) Failure of the Contractor to comply with the requirements
The PHA may undertake or award other contracts for of the Contracting Officer under this clause shall be
additional work at or near the site of the work under this grounds for a determination by the Contracting Officer
contract. The Contractor shall fully cooperate with the that the Contractor is not prosecuting the work with
other contractors and with PHA employees and shall sufficient diligence to ensure completion within the time
carefully adapt scheduling and performing the work under specified in the Contract. Upon making this
this contract to accommodate the additional work, heeding determination, the Contracting Officer may terminate the
any direction that may be provided by the Contracting Contractor’s right to proceed with the work, or any
Officer. The Contractor shall not commit or permit any act separable part of it, in accordance with the Default clause
that will interfere with the performance of work by any of this contract.
other contractor or by PHA employees
7. Site Investigation and Conditions Affecting the Work
(a) The Contractor acknowledges that it has taken steps
5. Pre-construction Conference and Notice to Proceed reasonably necessary to ascertain the nature and
location of the work, and that it has investigated and
(a) Within ten calendar days of contract execution, and prior satisfied itself as to the general and local conditions
to the commencement of work, the Contractor shall which can affect the work or its cost, including but not
attend a preconstruction conference with representatives limited to, (1) conditions bearing upon transportation,
of the PHA, its Architect, and other interested parties disposal, handling, and storage of materials; (2) the
convened by the PHA. The conference will serve to availability of labor, water, electric power, and roads;(3)
acquaint the participants with the general plan of the uncertainties of weather, river stages, tides, or similar
construction operation and all other requirements of the physical conditions at the site; (4) the conformation and
contract. The PHA will provide the Contractor with the conditions of the ground; and (5) the character of
date, time, and place of the conference. equipment and facilities needed preliminary to and during
(b) The contractor shall begin work upon receipt of a written work performance. The Contractor also acknowledges
Notice to Proceed from the Contracting Officer or that it has satisfied itself as to the character, quality, and
designee. The Contractor shall not begin work prior to quantity of surface and subsurface materials or obstacles
receiving such notice. to be encountered insofar as this information is
Previous editions are obsolete Page 3 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
reasonably ascertainable from an inspection of the site, promptly submitted to the Contracting Officer, who shall
including all exploratory work done by the PHA, as well promptly make a determination in writing. Any adjustment
as from the drawings and specifications made a part of by the Contractor without such a determination shall be at
this contract. Any failure of the Contractor to take the its own risk and expense. The Contracting Officer shall
actions described and acknowledged in this paragraph furnish from time to time such detailed drawings and
will not relieve the Contractor from responsibility for other information as considered necessary, unless
estimating properly the difficulty and cost of successfully otherwise provided.
performing the work, or for proceeding to successfully (b) Wherever in the specifications or upon the drawings the
perform the work without additional expense to the PHA. words “directed”, “required”, “ordered”, “designated”,
(b) The PHA assumes no responsibility for any conclusions “prescribed”, or words of like import are used, it shall be
or interpretations made by the Contractor based on the understood that the “direction”, “requirement”, “order”,
information made available by the PHA. Nor does the “designation”, or “prescription”, of the Contracting Officer
PHA assume responsibility for any understanding is intended and similarly the words “approved”,
reached or representation made concerning conditions “acceptable”, “satisfactory”, or words of like import shall
which can affect the work by any of its officers or agents mean “approved by”, or “acceptable to”, or “satisfactory
before the execution of this contract, unless that to” the Contracting Officer, unless otherwise expressly
understanding or representation is expressly stated in stated.
this contract. (c) Where “as shown”, “as indicated”, “as detailed”, or words
of similar import are used, it shall be understood that the
8. Differing Site Conditions reference is made to the drawings accompanying this
contract unless stated otherwise. The word “provided” as
(a) The Contractor shall promptly, and before the conditions used herein shall be understood to mean “provide
are disturbed, give a written notice to the Contracting complete in place” that is “furnished and installed”.
Officer of (1) subsurface or latent physical conditions at (d) “Shop drawings” means drawings, submitted to the PHA
the site which differ materially from those indicated in this by the Contractor, subcontractor, or any lower tier
contract, or (2) unknown physical conditions at the site(s), subcontractor, showing in detail (1) the proposed
of an unusual nature, which differ materially from those fabrication and assembly of structural elements and (2)
ordinarily encountered and generally recognized as the installation (i.e., form, fit, and attachment details) of
inhering in work of the character provided for in the materials of equipment. It includes drawings, diagrams,
contract. layouts, schematics, descriptive literature, illustrations,
(b) The Contracting Officer shall investigate the site schedules, performance and test data, and similar
conditions promptly after receiving the notice. Work shall materials furnished by the Contractor to explain in detail
not proceed at the affected site, except at the specific portions of the work required by the contract. The
Contractor’s risk, until the Contracting Officer has PHA may duplicate, use, and disclose in any manner and
provided written instructions to the Contractor. If the for any purpose shop drawings delivered under this
conditions do materially so differ and cause an increase contract.
or decrease in the Contractor’s cost of, or the time (e) If this contract requires shop drawings, the Contractor
required for, performing any part of the work under this shall coordinate all such drawings, and review them for
contract, whether or not changed as a result of the accuracy, completeness, and compliance with other
conditions, the Contractor shall file a claim in writing to contract requirements and shall indicate its approval
the PHA within ten days after receipt of such instructions thereon as evidence of such coordination and review.
and, in any event, before proceeding with the work. An Shop drawings submitted to the Contracting Officer
equitable adjustment in the contract price, the delivery without evidence of the Contractor’s approval may be
schedule, or both shall be made under this clause and returned for resubmission. The Contracting Officer will
the contract modified in writing accordingly. indicate an approval or disapproval of the shop drawings
(c) No request by the Contractor for an equitable adjustment and if not approved as submitted shall indicate the PHA’s
to the contract under this clause shall be allowed, unless reasons therefore. Any work done before such approval
the Contractor has given the written notice required; shall be at the Contractor’s risk. Approval by the
provided, that the time prescribed in (a) above for giving Contracting Officer shall not relieve the Contractor from
written notice may be extended by the Contracting responsibility for any errors or omissions in such
Officer. drawings, nor from responsibility for complying with the
(d) No request by the Contractor for an equitable adjustment requirements of this contract, except with respect to
to the contract for differing site conditions shall be variations described and approved in accordance with (f)
allowed if made after final payment under this contract. below.
(f) If shop drawings show variations from the contract
9. Specifications and Drawings for Construction requirements, the Contractor shall describe such
variations in writing, separate from the drawings, at the
(a) The Contractor shall keep on the work site a copy of the time of submission. If the Architect approves any such
drawings and specifications and shall at all times give the variation and the Contracting Officer concurs, the
Contracting Officer access thereto. Anything mentioned Contracting Officer shall issue an appropriate
in the specifications and not shown on the drawings, or modification to the contract, except that, if the variation is
shown on the drawings and not mentioned in the minor or does not involve a change in price or in time of
specifications, shall be of like effect as if shown or performance, a modification need not be issued.
mentioned in both. In case of difference between (g) It shall be the responsibility of the Contractor to make
drawings and specifications, the specifications shall timely requests of the PHA for such large scale and full
govern. In case of discrepancy in the figures, in the size drawings, color schemes, and other additional
drawings, or in the specifications, the matter shall be information, not already in his possession, which shall be
Previous editions are obsolete Page 4 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
required in the planning and production of the work. Such machinery and mechanical and other equipment.
requests may be submitted as the need arises, but each When required by this contract or by the Contracting
such request shall be filed in ample time to permit Officer, the Contractor shall also obtain the
appropriate action to be taken by all parties involved so Contracting Officer’s approval of the material or
as to avoid delay. articles which the Contractor contemplates
(h) The Contractor shall submit to the Contracting Officer for incorporating into the work. When requesting
approval four copies (unless otherwise indicated) of all approval, the Contractor shall provide full information
shop drawings as called for under the various headings concerning the material or articles. Machinery,
of these specifications. Three sets (unless otherwise equipment, material, and articles that do not have the
indicated) of all shop drawings, will be retained by the required approval shall be installed or used at the risk
PHA and one set will be returned to the Contractor. As of subsequent rejection.
required by the Contracting Officer, the Contractor, upon (2) When required by the specifications or the
completing the work under this contract, shall furnish a Contracting Officer, the Contractor shall submit
complete set of all shop drawings as finally approved. appropriately marked samples (and certificates
These drawings shall show all changes and revisions 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
(i) This clause shall be included in all subcontracts at any Contractor shall label, or otherwise properly mark on
tier. It shall be the responsibility of the Contractor to the container, the material or product represented, its
ensure that all shop drawings prepared by subcontractors place of origin, the name of the producer, the
are submitted to the Contracting Officer. Contractor’s name, and the identification of the
construction project for which the material or product
10. As-Built Drawings is intended to be used.
(3) Certificates shall be submitted in triplicate, describing
(a) “As-built drawings,” as used in this clause, means each sample submitted for approval and certifying
drawings submitted by the Contractor or subcontractor at that the material, equipment or accessory complies
any tier to show the construction of a particular structure with contract requirements. The certificates shall
or work as actually completed under the contract. “As- include the name and brand of the product, name of
built drawings” shall be synonymous with “Record manufacturer, and the location where produced.
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
shall provide the Contracting Officer accurate information requirements. Materials, equipment and accessories
to be used in the preparation of permanent as-built may be rejected for cause even though samples have
drawings. For this purpose, the Contractor shall record on been approved.
one set of contract drawings all changes from the (5) Wherever materials are required to comply with
installations originally indicated, and record final locations recognized standards or specifications, such
of underground lines by depth from finish grade and by specifications shall be accepted as establishing the
accurate horizontal offset distances to permanent surface technical qualities and testing methods, but shall not
improvements such as buildings, curbs, or edges of govern the number of tests required to be made nor
walks. modify other contract requirements. The Contracting
(c) This clause shall be included in all subcontracts at any Officer may require laboratory test reports on items
tier. It shall be the responsibility of the Contractor to submitted for approval or may approve materials on
ensure that all as-built drawings prepared by the basis of data submitted in certificates with
subcontractors are submitted to the Contracting Officer. samples. Check tests will be made on materials
delivered for use only as frequently as the Contracting
11. Material and Workmanship Officer determines necessary to insure compliance of
materials with the specifications. The Contractor will
(a) All equipment, material, and articles furnished under this assume all costs of retesting materials which fail to
contract shall be new and of the most suitable grade for meet contract requirements and/or testing materials
the purpose intended, unless otherwise specifically offered in substitution for those found deficient.
provided in this contract. References in the contract to (6) After approval, samples will be kept in the Project
equipment, material, articles, or patented processes by office until completion of work. They may be built into
trade name, make, or catalog number, shall be regarded the work after a substantial quantity of the materials
as establishing a standard of quality and shall not be they represent has been built in and accepted.
construed as limiting competition. The Contractor may, at (c) Requirements concerning lead-based paint. The
its option, use any equipment, material, article, or Contractor shall comply with the requirements concerning
process that, in the judgment of, and as approved by the lead-based paint contained in the Lead-Based Paint
Contracting Officer, is equal to that named in the Poisoning Prevention Act (42 U.S.C. 4821-4846) as
specifications, unless otherwise specifically provided in implemented by 24 CFR Part 35.
(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 (a) The Contractor shall give all notices and comply with all
equipment to be incorporated into the work. When applicable laws, ordinances, codes, rules and
requesting approval, the Contractor shall furnish to regulations. Notwithstanding the requirement of the
the Contracting Officer the name of the manufacturer, Contractor to comply with the drawings and specifications
the model number, and other information concerning in the contract, all work installed shall comply with all
the performance, capacity, nature, and rating of the applicable codes and regulations as amended by any
Previous editions are obsolete Page 5 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
waivers. Before installing the work, the Contractor shall
examine the drawings and the specifications for 14. Temporary Heating
compliance with applicable codes and regulations
bearing on the work and shall immediately report any The Contractor shall provide and pay for temporary
discrepancy it may discover to the Contracting Officer. heating, covering, and enclosures necessary to properly
Where the requirements of the drawings and protect all work and materials against damage by
specifications fail to comply with the applicable code or dampness and cold, to dry out the work, and to facilitate
regulation, the Contracting Officer shall modify the the completion of the work. Any permanent heating
contract by change order pursuant to the clause entitled equipment used shall be turned over to the PHA in the
Changes herein to conform to the code or regulation. condition and at the time required by the specifications.
(b) The Contractor shall secure and pay for all permits, fees,
and licenses necessary for the proper execution and 15. Availability and Use of Utility Services
completion of the work. Where the PHA can arrange for
the issuance of all or part of these permits, fees and (a) The PHA shall make all reasonably required amounts of
licenses, without cost to the Contractor, the contract utilities available to the Contractor from existing outlets
amount shall be reduced accordingly. and supplies, as specified in the contract. Unless
otherwise provided in the contract, the amount of each
13. Health, Safety, and Accident Prevention utility service consumed shall be charged to or paid for by
the Contractor at prevailing rates charged to the PHA or,
(a) In performing this contract, the Contractor shall: where the utility is produced by the PHA, at reasonable
(1) Ensure that no laborer or mechanic shall be required rates determined by the Contracting Officer. The
to work in surroundings or under working conditions Contractor shall carefully conserve any utilities furnished
which are unsanitary, hazardous, or dangerous to without charge.
his/her health and/or safety as determined under (b) The Contractor, at its expense and in a manner
construction safety and health standards promulgated satisfactory to the Contracting Officer, shall install and
by the Secretary of Labor by regulation; maintain all necessary temporary connections and
(2) Protect the lives, health, and safety of other persons; distribution lines, and all meters required to measure the
(3) Prevent damage to property, materials, supplies, and amount of each utility used for the purpose of determining
equipment; and, charges. Before final acceptance of the work by the PHA,
(4) Avoid work interruptions. the Contractor shall remove all the temporary
(b) For these purposes, the Contractor shall: connections, distribution lines, meters, and associated
(1) Comply with regulations and standards issued by the paraphernalia.
Secretary of Labor at 29 CFR Part 1926. Failure to
comply may result in imposition of sanctions pursuant 16. Protection of Existing Vegetation, Structures,
to the Contract Work Hours and Safety Standards Act Equipment, Utilities, and Improvements
(Public Law 91-54, 83 Stat. 96), 40 U.S.C. 3701 et
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
so that such terms will be binding on each grass) on or adjacent to the work site, which are not to be
subcontractor. removed under this contract, and which do not
(c) The Contractor shall maintain an accurate record of unreasonably interfere with the work required under this
exposure data on all accidents incident to work contract.
performed under this contract resulting in death, (b) The Contractor shall only remove trees when specifically
traumatic injury, occupational disease, or damage to authorized to do so, and shall avoid damaging vegetation
property, materials, supplies, or equipment, and shall that will remain in place. If any limbs or branches of trees
report this data in the manner prescribed by 29 CFR Part are broken during performance of this contract, or by the
1904. careless operation of equipment, or by workmen, the
(d) The Contracting Officer shall notify the Contractor of any Contractor shall trim those limbs or branches with a clean
noncompliance with these requirements and of the cut and paint the cut with a tree-pruning compound as
corrective action required. This notice, when delivered to directed by the Contracting Officer.
the Contractor or the Contractor’s representative at the (c) The Contractor shall protect from damage all existing
site of the work, shall be deemed sufficient notice of the improvements and utilities (1) at or near the work site and
noncompliance and corrective action required. After (2) on adjacent property of a third party, the locations of
receiving the notice, the Contractor shall immediately which are made known to or should be known by the
take corrective action. If the Contractor fails or refuses to Contractor. Prior to disturbing the ground at the
take corrective action promptly, the Contracting Officer construction site, the Contractor shall ensure that all
may issue an order stopping all or part of the work until underground utility lines are clearly marked.
satisfactory corrective action has been taken. The (d) The Contractor shall shore up, brace, underpin, secure,
Contractor shall not base any claim or request for and protect as necessary all foundations and other parts
equitable adjustment for additional time or money on any of existing structures adjacent to, adjoining, and in the
stop order issued under these circumstances. vicinity of the site, which may be affected by the
(e) The Contractor shall be responsible for its subcontractors’ excavations or other operations connected with the
compliance with the provisions of this clause. The construction of the project.
Contractor shall take such action with respect to any (e) Any equipment temporarily removed as a result of work
subcontract as the PHA, the Secretary of Housing and under this contract shall be protected, cleaned, and
Urban Development, or the Secretary of Labor shall replaced in the same condition as at the time of award of
direct as a means of enforcing such provisions. this contract.
Previous editions are obsolete Page 6 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
(f) New work which connects to existing work shall The contactor shall comply with the Clean Air Act, as
correspond in all respects with that to which it connects amended, 42 USC 7401 et seq., the Federal Water
and/or be similar to existing work unless otherwise Pollution Control Water Act, as amended, 33 U.S.C. 1251
required by the specifications. et seq., and standards issued pursuant thereto in the
(g) No structural members shall be altered or in any way facilities in which this contract is to be performed.
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 The Contractor shall comply with mandatory standards
unfinished surfaces, or work out of alignment, such and policies relating to energy efficiency which are
surfaces shall be refinished, or the material replaced as contained in the energy conservation plan issued in
necessary to make the continuous work uniform and compliance with the Energy Policy and Conservation Act
harmonious. This, however, shall not be construed to (Pub.L. 94-163) for the State in which the work under the
require the refinishing or reconstruction of dissimilar contract is performed.
finishes previously exposed, or finished surfaces in good
condition, but in different planes or on different levels 20. Inspection and Acceptance of Construction
when brought together by the removal of intervening
work, unless such refinishing or reconstruction is (a) Definitions. As used in this clause -
specified in the plans or specifications. (1) “Acceptance” means the act of an authorized
(i) The Contractor shall give all required notices to any representative of the PHA by which the PHA approves
adjoining or adjacent property owner or other party before and assumes ownership of the work performed under this
the commencement of any work. contract. Acceptance may be partial or complete.
(j) The Contractor shall indemnify and save harmless the (2) “Inspection” means examining and testing the work
PHA from any damages on account of settlement or the performed under the contract (including, when
loss of lateral support of adjoining property, any damages appropriate, raw materials, equipment, components, and
from changes in topography affecting drainage, and from intermediate assemblies) to determine whether it
all loss or expense and all damages for which the PHA conforms to contract requirements.
may become liable in consequence of such injury or (3) “Testing” means that element of inspection that
damage to adjoining and adjacent structures and their determines the properties or elements, including
premises. functional operation of materials, equipment, or their
(k) The Contractor shall repair any damage to vegetation, components, by the application of established scientific
structures, equipment, utilities, or improvements, principles and procedures.
including those that are the property of a third party, (b) The Contractor shall maintain an adequate inspection
resulting from failure to comply with the requirements of system and perform such inspections as will ensure that
this contract or failure to exercise reasonable care in the work performed under the contract conforms to
performing the work. If the Contractor fails or refuses to contract requirements. All work is subject to PHA
repair the damage promptly, the Contracting Officer may inspection and test at all places and at all reasonable
have the necessary work performed and charge the cost times before acceptance to ensure strict compliance with
to the Contractor. 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
(a) Temporary buildings (e.g., storage sheds, shops, offices, measures; (2) relieve the Contractor of responsibility for
sanitary facilities) and utilities may be erected by the loss or damage of the material before acceptance; (3)
Contractor only with the approval of the Contracting constitute or imply acceptance; or, (4) affect the
Officer and shall be built with labor and materials continuing rights of the PHA after acceptance of the
furnished by the Contractor without expense to the PHA. completed work under paragraph (j) below.
The temporary buildings and utilities shall remain the (d) The presence or absence of the PHA inspector does not
property of the Contractor and shall be removed by the relieve the Contractor from any contract requirement, nor
Contractor at its expense upon completion of the work. is the inspector authorized to change any term or
With the written consent of the Contracting Officer, the condition of the specifications without the Contracting
buildings and utilities may be abandoned and need not 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 (e) The Contractor shall promptly furnish, without additional
roadways constructed by the Contractor when and as charge, all facilities, labor, and material reasonably
authorized by the Contracting Officer. When materials are needed for performing such safe and convenient
transported in prosecuting the work, vehicles shall not be inspections and tests as may be required by the
loaded beyond the loading capacity recommended by the Contracting Officer. The PHA may charge to the
manufacturer of the vehicle or prescribed by any federal, Contractor any additional cost of inspection or test when
state, or local law or regulation. When it is necessary to work is not ready at the time specified by the Contractor
cross curbs or sidewalks, the Contractor shall protect for inspection or test, or when prior rejection makes
them from damage. The Contractor shall repair or pay for reinspection or retest necessary. The PHA shall perform
the repair of any damaged curbs, sidewalks, or roads. all inspections and tests in a manner that will not
unnecessarily delay the work. Special, full size, and
18. Clean Air and Water performance tests shall be performed as described in the
Previous editions are obsolete Page 7 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
(f) The PHA may conduct routine inspections of the occupied without proper remuneration therefore. If prior
construction site on a daily basis. possession or use by the PHA delays the progress of the
(g) The Contractor shall, without charge, replace or correct work or causes additional expense to the Contractor, an
work found by the PHA not to conform to contract equitable adjustment shall be made in the contract price
requirements, unless the PHA decides that it is in its or the time of completion, and the contract shall be
interest to accept the work with an appropriate modified in writing accordingly.
adjustment in contract price. The Contractor shall
promptly segregate and remove rejected material from 22. Warranty of Title
(h) If the Contractor does not promptly replace or correct The Contractor warrants good title to all materials,
rejected work, the PHA may (1) by contract or otherwise, supplies, and equipment incorporated in the work and
replace or correct the work and charge the cost to the agrees to deliver the premises together with all
Contractor, or (2) terminate for default the Contractor’s improvements thereon free from any claims, liens or
right to proceed. charges, and agrees further that neither it nor any other
(i) If any work requiring inspection is covered up without ap- person, firm or corporation shall have any right to a lien
proval of the PHA, it must, if requested by the Contracting upon the premises or anything appurtenant thereto.
Officer, be uncovered at the expense of the Contractor. If
at any time before final acceptance of the entire work, the 23. Warranty of Construction
PHA considers it necessary or advisable, to examine
work already completed by removing or tearing it out, the (a) In addition to any other warranties in this contract, the
Contractor, shall on request, promptly furnish all Contractor warrants, except as provided in paragraph (j)
necessary facilities, labor, and material. If such work is of this clause, that work performed under this contract
found to be defective or nonconforming in any material conforms to the contract requirements and is free of any
respect due to the fault of the Contractor or its defect in equipment, material, or workmanship performed
subcontractors, the Contractor shall defray all the by the Contractor or any subcontractor or supplier at any
expenses of the examination and of satisfactory tier. This warranty shall continue for a period of ________
reconstruction. If, however, such work is found to meet (one year unless otherwise indicated) from the date of
the requirements of the contract, the Contracting Officer final acceptance of the work. If the PHA takes possession
shall make an equitable adjustment to cover the cost of of any part of the work before final acceptance, this
the examination and reconstruction, including, if warranty shall continue for a period of (one year unless
completion of the work was thereby delayed, an 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 expense, any failure to conform, or any defect. In
designated portion of the work will be substantially addition, the Contractor shall remedy, at the Contractor’s
completed and ready for inspection. If the Architect expense, any damage to PHA-owned or controlled real or
determines that the state of preparedness is as personal property when the damage is the result of—
represented, the PHA will promptly arrange for the (1) The Contractor’s failure to conform to contract require-
inspection. Unless otherwise specified in the contract, the ments; or
PHA shall accept, as soon as practicable after completion (2) Any defects of equipment, material, workmanship or
and inspection, all work required by the contract or that design furnished by the Contractor.
portion of the work the Contracting Officer determines (c) The Contractor shall restore any work damaged in
and designates can be accepted separately. Acceptance fulfilling the terms and conditions of this clause. The
shall be final and conclusive except for latent defects, Contractor’s warranty with respect to work repaired or
fraud, gross mistakes amounting to fraud, or the PHA’s replaced will run for (one year unless otherwise indicated)
right under any warranty or guarantee. 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 (e) If the Contractor fails to remedy any failure, defect, or
any completed or partially completed part of the work. damage within a reasonable time after receipt of notice,
Before taking possession of or using any work, the the PHA shall have the right to replace, repair or
Contracting Officer shall furnish the Contractor a list of otherwise remedy the failure, defect, or damage at the
items of work remaining to be performed or corrected on Contractor’s expense.
those portions of the work that the PHA intends to take (f) With respect to all warranties, express or implied, from
possession of or use. However, failure of the Contracting subcontractors, manufacturers, or suppliers for work
Officer to list any item of work shall not relieve the performed and materials furnished under this contract,
Contractor of responsibility for complying with the terms the Contractor shall:
of the contract. The PHA’s possession or use shall not be (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) benefit of the PHA; and,
the loss of or damage to the work resulting from the (3) Enforce all warranties for the benefit of the PHA.
PHA’s possession or use, notwithstanding the terms of (g) In the event the Contractor’s warranty under paragraph
the clause entitled Permits and Codes herein; (2) all (a) of this clause has expired, the PHA may bring suit at
maintenance costs on the areas occupied; and, (3) its own expense to enforce a subcontractor’s,
furnishing heat, light, power, and water used in the areas manufacturer’s or supplier’s warranty.
Previous editions are obsolete Page 8 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
(h) Unless a defect is caused by the negligence of the basis for determining progress payments. The breakdown
Contractor or subcontractor or supplier at any tier, the shall be approved by the Contracting Officer and must be
Contractor shall not be liable for the repair of any defect acceptable to HUD. If the contract covers more than one
of material or design furnished by the PHA nor for the project, the Contractor shall furnish a separate
repair of any damage that results from any defect in PHA breakdown for each. The values and quantities employed
furnished material or design. in making up this breakdown are for determining the
(i) Notwithstanding any provisions herein to the contrary, the amount of progress payments and shall not be construed
establishment of the time periods in paragraphs (a) and as a basis for additions to or deductions from the contract
(c) above relate only to the specific obligation of the price. The Contractor shall prorate its overhead and profit
Contractor to correct the work, and have no relationship over the construction period of the contract.
to the time within which its obligation to comply with the (d) The Contractor shall submit, on forms provided by the
contract may be sought to be enforced, nor to the time PHA, periodic estimates showing the value of the work
within which proceedings may be commenced to performed during each period based upon the approved
establish the Contractor’s liability with respect to its breakdown of the contract price. Such estimates shall be
obligation other than specifically to correct the work. 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
Inspection and Acceptance of Construction clause of this and revision as required. The estimates must be
contract with respect to latent defects, gross mistakes or approved by the Contracting Officer with the concurrence
fraud. of the Architect prior to payment. If the contract covers
more than one project, the Contractor shall furnish a
24. Prohibition Against Liens separate progress payment estimate for each.
(e) Along with each request for progress payments and the
The Contractor is prohibited from placing a lien on the required estimates, the Contractor shall furnish the
PHA’s property. This prohibition shall apply to all following certification, or payment shall not be made:
subcontractors at any tier and all materials suppliers. I hereby certify, to the best of my knowledge and belief,
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
The Contractor shall complete all work required under made from previous payments received under the
this contract within _______ calendar days of the contract, and timely payments will be made from the
effective date of the contract, or within the time schedule proceeds of the payment covered by this certification,
established in the notice to proceed issued by the in accordance with subcontract agreements; and,
Contracting Officer. (3) This request for progress payments does not include
any amounts which the prime contractor intends to
26. Order of Provisions withhold or retain from a subcontractor or supplier in
accordance with the terms and conditions of the
In the event of a conflict between these General subcontract.
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 Name:
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 Title:
federal law, regulation, or Executive Order. In the event
of such a conflict, applicable federal law, regulation, and _________________________________________
Executive Order shall prevail. Date:
27. Payments (f) Except as otherwise provided in State law, the PHA shall
retain ten (10) percent of the amount of progress
(a) The PHA shall pay the Contractor the price as provided in payments until completion and acceptance of all work
this contract. under the contract; except, that if upon completion of 50
(b) The PHA shall make progress payments approximately percent of the work, the Contracting Officer, after
every 30 days as the work proceeds, on estimates of consulting with the Architect, determines that the
work accomplished which meets the standards of quality Contractor’s performance and progress are satisfactory,
established under the contract, as approved by the the PHA may make the remaining payments in full for the
Contracting Officer. The PHA may, subject to written work subsequently completed. If the Contracting Officer
determination and approval of the Contracting Officer, subsequently determines that the Contractor’s
make more frequent payments to contractors which are performance and progress are unsatisfactory, the PHA
qualified small businesses. shall reinstate the ten (10) percent (or other percentage
(c) Before the first progress payment under this contract, the as provided in State law) retainage until such time as the
Contractor shall furnish, in such detail as requested by Contracting Officer determines that performance and
the Contracting Officer, a breakdown of the total contract progress are satisfactory.
price showing the amount included therein for each (g) The Contracting Officer may authorize material delivered
principal category of the work, which shall substantiate on the site and preparatory work done to be taken into
the payment amount requested in order to provide a consideration when computing progress payments.
Previous editions are obsolete Page 9 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
Material delivered to the Contractor at locations other responsibilities of the parties (e.g., change in the PHA
than the site may also be taken into consideration if the address). All other contract modifications shall be in the
Contractor furnishes satisfactory evidence that (1) it has form of supplemental agreements signed by the
acquired title to such material; (2) the material is properly Contractor and the Contracting Officer.
stored in a bonded warehouse, storage yard, or similar (c) When a proposed modification requires the approval of
suitable place as may be approved by the Contracting HUD prior to its issuance (e.g., a change order that
Officer; (3) the material is insured to cover its full value; exceeds the PHA’s approved threshold), such
and (4) the material will be used to perform this contract. modification shall not be effective until the required
Before any progress payment which includes delivered approval is received by the PHA.
material is made, the Contractor shall furnish such
documentation as the Contracting Officer may require to 29. Changes
assure the protection of the PHA’s interest in such
materials. The Contractor shall remain responsible for (a) The Contracting Officer may, at any time, without notice
such stored material notwithstanding the transfer of title to the sureties, by written order designated or indicated to
to the PHA. be a change order, make changes in the work within the
(h) All material and work covered by progress payments general scope of the contract including changes:
made shall, at the time of payment become the sole (1) In the specifications (including drawings and designs);
property of the PHA, but this shall not be construed as (1) (2) In the method or manner of performance of the work;
relieving the Contractor from the sole responsibility for all (3) PHA-furnished facilities, equipment, materials,
material and work upon which payments have been services, or site; or,
made or the restoration of any damaged work; or, (2) (4) Directing the acceleration in the performance of the
waiving the right of the PHA to require the fulfillment of all work.
of the terms of the contract. In the event the work of the (b) Any other written order or oral order (which, as used in
Contractor has been damaged by other contractors or this paragraph (b), includes direction, instruction,
persons other than employees of the PHA in the course interpretation, or determination) from the Contracting
of their employment, the Contractor shall restore such Officer that causes a change shall be treated as a
damaged work without cost to the PHA and to seek change order under this clause; provided, that the
redress for its damage only from those who directly Contractor gives the Contracting Officer written notice
caused it. stating (1) the date, circumstances and source of the
(i) The PHA shall make the final payment due the Contractor order and (2) that the Contractor regards the order as a
under this contract after (1) completion and final change order.
acceptance of all work; and (2) presentation of release of (c) Except as provided in this clause, no order, statement or
all claims against the PHA arising by virtue of this conduct of the Contracting Officer shall be treated as a
contract, other than claims, in stated amounts, that the change under this clause or entitle the Contractor to an
Contractor has specifically excepted from the operation of equitable adjustment.
the release. Each such exception shall embrace no more (d) If any change under this clause causes an increase or
than one claim, the basis and scope of which shall be decrease in the Contractor’s cost of, or the time required
clearly defined. The amounts for such excepted claims for the performance of any part of the work under this
shall not be included in the request for final payment. A contract, whether or not changed by any such order, the
release may also be required of the assignee if the Contracting Officer shall make an equitable adjustment
Contractor’s claim to amounts payable under this contract and modify the contract in writing. However, except for a
has been assigned. adjustment based on defective specifications, no
(j) Prior to making any payment, the Contracting Officer may proposal for any change under paragraph (b) above shall
require the Contractor to furnish receipts or other be allowed for any costs incurred more than 20 days (5
evidence of payment from all persons performing work days for oral orders) before the Contractor gives written
and supplying material to the Contractor, if the notice as required. In the case of defective specifications
Contracting Officer determines such evidence is for which the PHA is responsible, the equitable
necessary to substantiate claimed costs. adjustment shall include any increased cost reasonably
(k) The PHA shall not; (1) determine or adjust any claims for incurred by the Contractor in attempting to comply with
payment or disputes arising there under between the the defective specifications.
Contractor and its subcontractors or material suppliers; (e) The Contractor must assert its right to an adjustment
or, (2) withhold any moneys for the protection of the under this clause within 30 days after (1) receipt of a
subcontractors or material suppliers. The failure or written change order under paragraph (a) of this clause,
refusal of the PHA to withhold moneys from the or (2) the furnishing of a written notice under paragraph
Contractor shall in nowise impair the obligations of any (b) of this clause, by submitting a written statement
surety or sureties under any bonds furnished under this describing the general nature and the amount of the
contract. proposal. If the facts justify it, the Contracting Officer may
extend the period for submission. The proposal may be
28. Contract Modifications included in the notice required under paragraph (b)
above. No proposal by the Contractor for an equitable
(a) Only the Contracting Officer has authority to modify any adjustment shall be allowed if asserted after final
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
(b) The Contracting Officer may modify the contract shall be submitted in the form of a lump sum proposal
unilaterally (1) pursuant to a specific authorization stated supported with an itemized breakdown of all increases
in a contract clause (e.g., Changes); or (2) for and decreases in the contract in at least the following
administrative matters which do not change the rights or details:
Previous editions are obsolete Page 10 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
(1) Direct Costs. Materials (list individual items, the been so suspended, delayed, or interrupted by any other
quantity and unit cost of each, and the aggregate cause, including the fault or negligence of the Contractor
cost); Transportation and delivery costs associated or for which any equitable adjustment is provided for or
with materials; Labor breakdowns by hours or unit excluded under any other provision of this contract.
costs (identified with specific work to be performed); (c) A claim under this clause shall not be allowed (1) for any
Construction equipment exclusively necessary for the costs incurred more than 20 days before the Contractor
change; Costs of preparation and/ or revision to shop shall have notified the Contracting Officer in writing of the
drawings resulting from the change; Worker’s act or failure to act involved (but this requirement shall
Compensation and Public Liability Insurance; not apply as to a claim resulting from a suspension
Employment taxes under FICA and FUTA; and, Bond order); and, (2) unless the claim, in an amount stated, is
Costs when size of change warrants revision. asserted in writing as soon as practicable after the
(2) Indirect Costs. Indirect costs may include overhead, termination of the suspension, delay, or interruption, but
general and administrative expenses, and fringe not later than the date of final payment under the
benefits not normally treated as direct costs. contract.
(3) Profit. The amount of profit shall be negotiated and
may vary according to the nature, extent, and 31. Disputes
complexity of the work required by the change.
The allowability of the direct and indirect costs shall be (a) “Claim,” as used in this clause, means a written demand
determined in accordance with the Contract Cost or written assertion by one of the contracting parties
Principles and Procedures for Commercial Firms in Part seeking, as a matter of right, the payment of money in a
31 of the Federal Acquisition Regulation (48 CFR 1-31), sum certain, the adjustment or interpretation of contract
as implemented by HUD Handbook 2210.18, in effect on terms, or other relief arising under or relating to the
the date of this contract. The Contractor shall not be contract. A claim arising under the contract, unlike a
allowed a profit on the profit received by any claim relating to the contract, is a claim that can be
subcontractor. Equitable adjustments for deleted work resolved under a contract clause that provides for the
shall include a credit for profit and may include a credit relief sought by the claimant. A voucher, invoice, or other
for indirect costs. On proposals covering both increases routine request for payment that is not in dispute when
and decreases in the amount of the contract, the submitted is not a claim. The submission may be
application of indirect costs and profit shall be on the net- converted to a claim by complying with the requirements
change in direct costs for the Contractor or subcontractor of this clause, if it is disputed either as to liability or
performing the work. amount or is not acted upon in a reasonable time.
(g) The Contractor shall include in the proposal its request (b) Except for disputes arising under the clauses entitled
for time extension (if any), and shall include sufficient Labor Standards - Davis Bacon and Related Acts, herein,
information and dates to demonstrate whether and to all disputes arising under or relating to this contract,
what extent the change will delay the completion of the including any claims for damages for the alleged breach
contract in its entirety. thereof which are not disposed of by agreement, shall be
(h) The Contracting Officer shall act on proposals within 30 resolved under this clause.
days after their receipt, or notify the Contractor of the (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.
(i) Failure to reach an agreement on any proposal shall be a A claim by the PHA against the Contractor shall be
dispute under the clause entitled Disputes herein. subject to a written decision by the Contracting Officer.
Nothing in this clause, however, shall excuse the (d) The Contracting Officer shall, within 60 (unless otherwise
Contractor from proceeding with the contract as changed. indicated) days after receipt of the request, decide the
(j) Except in an emergency endangering life or property, no claim or notify the Contractor of the date by which the
change shall be made by the Contractor without a prior decision will be made.
order from the Contracting Officer. (e) The Contracting Officer’s decision shall be final unless
the Contractor (1) appeals in writing to a higher level in
30. Suspension of Work the PHA in accordance with the PHA’s policy and
procedures, (2) refers the appeal to an independent
(a) The Contracting Officer may order the Contractor in mediator or arbitrator, or (3) files suit in a court of
writing to suspend, delay, or interrupt all or any part of the competent jurisdiction. Such appeal must be made within
work of this contract for the period of time that the (30 unless otherwise indicated) days after receipt of 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 of this contract, pending final resolution of any request for
unreasonable period of time, suspended, delayed, or relief, claim, appeal, or action arising under or relating to
interrupted (1) by an act of the Contracting Officer in the the contract, and comply with any decision of the
administration of this contract, or (2) by the Contracting Contracting Officer.
Officer’s failure to act within the time specified (or within a
reasonable time if not specified) in this contract an 32. Default
adjustment shall be made for any increase in the cost of
performance of the contract (excluding profit) necessarily (a) If the Contractor refuses or fails to prosecute the work, or
caused by such unreasonable suspension, delay, or any separable part thereof, with the diligence that will
interruption and the contract modified in writing insure its completion within the time specified in this
accordingly. However, no adjustment shall be made contract, or any extension thereof, or fails to complete
under this clause for any suspension, delay, or said work within this time, the Contracting Officer may, by
interruption to the extent that performance would have written notice to the Contractor, terminate the right to
Previous editions are obsolete Page 11 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
proceed with the work (or separable part of the work) that completion of the work together with any increased costs
has been delayed. In this event, the PHA may take over occasioned the PHA in completing the work.
the work and complete it, by contract or otherwise, and (c) If the PHA does not terminate the Contractor’s right to
may take possession of and use any materials, proceed, the resulting damage will consist of liquidated
equipment, and plant on the work site necessary for damages until the work is completed or accepted.
completing the work. The Contractor and its sureties shall
be liable for any damage to the PHA resulting from the 34. Termination for Convenience
Contractor’s refusal or failure to complete the work within
the specified time, whether or not the Contractor’s right to (a) The Contracting Officer may terminate this contract in
proceed with the work is terminated. This liability includes whole, or in part, whenever the Contracting Officer
any increased costs incurred by the PHA in completing determines that such termination is in the best interest of
the work. the PHA. Any such termination shall be effected by
(b) The Contractor’s right to proceed shall not be terminated delivery to the Contractor of a Notice of Termination
or the Contractor charged with damages under this specifying the extent to which the performance of the
clause if— work under the contract is terminated, and the date upon
(1) The delay in completing the work arises from which such termination becomes effective.
unforeseeable causes beyond the control and without (b) If the performance of the work is terminated, either in
the fault or negligence of the Contractor. Examples of whole or in part, the PHA shall be liable to the Contractor
such causes include (i) acts of God, or of the public for reasonable and proper costs resulting from such
enemy, (ii) acts of the PHA or other governmental termination upon the receipt by the PHA of a properly
entity in either its sovereign or contractual capacity, presented claim setting out in detail: (1) the total cost of
(iii) acts of another contractor in the performance of a the work performed to date of termination less the total
contract with the PHA, (iv) fires, (v) floods, (vi) amount of contract payments made to the Contractor; (2)
epidemics, (vii) quarantine restrictions, (viii) strikes, the cost (including reasonable profit) of settling and
(ix) freight embargoes, (x) unusually severe weather, paying claims under subcontracts and material orders for
or (xi) delays of subcontractors or suppliers at any tier work performed and materials and supplies delivered to
arising from unforeseeable causes beyond the control the site, payment for which has not been made by the
and without the fault or negligence of both the PHA to the Contractor or by the Contractor to the
Contractor and the subcontractors or suppliers; and subcontractor or supplier; (3) the cost of preserving and
(2) The Contractor, within days (10 days unless otherwise protecting the work already performed until the PHA or
indicated) from the beginning of such delay (unless assignee takes possession thereof or assumes
extended by the Contracting Officer) notifies the responsibility therefore; (4) the actual or estimated cost of
Contracting Officer in writing of the causes of delay. legal and accounting services reasonably necessary to
The Contracting Officer shall ascertain the facts and prepare and present the termination claim to the PHA;
the extent of the delay. If, in the judgment of the and (5) an amount constituting a reasonable profit on the
Contracting Officer, the findings of fact warrant such value of the work performed by the Contractor.
action, time for completing the work shall be extended (c) The Contracting Officer will act on the Contractor’s claim
by written modification to the contract. The findings of within days (60 days unless otherwise indicated) of
the Contracting Officer shall be reduced to a written receipt of the Contractor’s claim.
decision which shall be subject to the provisions of (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
(c) If, after termination of the Contractor’s right to proceed, it this contract.
is determined that the Contractor was not in default, or
that the delay was excusable, the rights and obligations 35. Assignment of Contract
of the parties will be the same as if the termination had
been for convenience of the PHA. The Contractor shall not assign or transfer any interest in
this contract; except that claims for monies due or to
33. Liquidated Damages become due from the PHA under the contract may be
assigned to a bank, trust company, or other financial
(a) If the Contractor fails to complete the work within the time institution. Such assignments of claims shall only be
specified in the contract, or any extension, as specified in made with the written concurrence of the Contracting
the clause entitled Default of this contract, the Contractor Officer. If the Contractor is a partnership, this contract
shall pay to the PHA as liquidated damages, the sum of shall inure to the benefit of the surviving or remaining
$___________ Contracting Officer insert amount] for member(s) of such partnership as approved by the
each day of delay. If different completion dates are Contracting Officer.
specified in the contract for separate parts or stages of
the work, the amount of liquidated damages shall be 36. Insurance
assessed on those parts or stages which are delayed. To
the extent that the Contractor’s delay or nonperformance (a) Before commencing work, the Contractor and each
is excused under another clause in this contract, subcontractor shall furnish the PHA with certificates of
liquidated damages shall not be due the PHA. The insurance showing the following insurance is in force and
Contractor remains liable for damages caused other than 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 (2) Commercial General Liability with a combined single
until such reasonable time as may be required for final limit for bodily injury and property damage of not less
than $________ [Contracting Officer insert amount]
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per occurrence to protect the Contractor and each (2) “Subcontractor” means any supplier, vendor, or firm
subcontractor against claims for bodily injury or death that furnishes supplies, materials, equipment, or
and damage to the property of others. This shall services to or for the Contractor or another
cover the use of all equipment, hoists, and vehicles subcontractor.
on the site(s) not covered by Automobile Liability (b) The Contractor shall not enter into any subcontract with
under (3) below. If the Contractor has a “claims- any subcontractor who has been temporarily denied
made” policy, then the following additional participation in a HUD program or who has been
requirements apply: the policy must provide a suspended or debarred from participating in contracting
“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 Government or of the state in which the work under this
reporting period may not be less than five years contract is to be performed.
following the completion date of the Contract. (c) The Contractor shall be as fully responsible for the acts or
(3) Automobile Liability on owned and non -owned motor omissions of its subcontractors, and of persons either
vehicles used on the site(s) or in connection therewith directly or indirectly employed by them as for the acts or
for a combined single limit for bodily injury and omissions of persons directly employed by the
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
PHA with a certificate of insurance evidencing that conditions of this contract insofar as they are applicable
Builder’s Risk (fire and extended coverage) Insurance on to the work of subcontractors.
all work in place and/or materials stored at the building (e) Nothing contained in this contract shall create any
site(s), including foundations and building equipment, is contractual relationship between any subcontractor and
in force. The Builder’s Risk Insurance shall be for the the PHA or between the subcontractor and HUD.
benefit of the Contractor and the PHA as their interests
may appear and each shall be named in the policy or 38. Subcontracting with Small and Minority Firms,
policies as an insured. The Contractor in installing Women’s Business Enterprise, and Labor Surplus
equipment supplied by the PHA shall carry insurance on Area Firms
such equipment from the time the Contractor takes
possession thereof until the Contract work is accepted by The Contractor shall take the following steps to ensure
the PHA. The Builder’s Risk Insurance need not be that, whenever possible, subcontracts are awarded to
carried on excavations, piers, footings, or foundations small business firms, minority firms, women’s business
until such time as work on the superstructure is started. It enterprises, and labor surplus area firms:
need not be carried on landscape work. Policies shall (a) Placing qualified small and minority businesses and
furnish coverage at all times for the full cash value of all women’s business enterprises on solicitation lists;
completed construction, as well as materials in place (b) Ensuring that small and minority businesses and
and/or stored at the site(s), whether or not partial women’s business enterprises are solicited whenever
payment has been made by the PHA. The Contractor they are potential sources;
may terminate this insurance on buildings as of the date (c) Dividing total requirements, when economically feasible,
taken over for occupancy by the PHA. The Contractor is into smaller tasks or quantities to permit maximum
not required to carry Builder’s Risk Insurance for participation by small and minority businesses and
modernization work which does not involve structural women’s business enterprises;
alterations or additions and where the PHA’s existing fire (d) Establishing delivery schedules, where the requirements
and extended coverage policy can be endorsed to of the contract permit, which encourage participation by
include such work. 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 (e) Using the services and assistance of the U.S. Small
State in which the project is located. If any such Business Administration, the Minority Business
insurance is due to expire during the construction period, Development Agency of the U.S. Department of
the Contractor (including subcontractors, as applicable) Commerce, and State and local governmental small
shall not permit the coverage to lapse and shall furnish business agencies.
evidence of coverage to the Contracting Officer. All
certificates of insurance, as evidence of coverage, shall 39. Equal Employment Opportunity
provide that no coverage may be canceled or non-
renewed by the insurance company until at least 30 days During the performance of this contract, the Contractor
prior written notice has been given to the Contracting agrees as follows:
Officer. (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
(1) “Subcontract” means any contract, purchase order, or during employment without regard to their race, color,
other purchase agreement, including modifications religion, sex, national origin, or handicap. Such action
and change orders to the foregoing, entered into by a shall include, but not be limited to, (1) employment, (2)
subcontractor to furnish supplies, materials, upgrading, (3) demotion, (4) transfer, (5) recruitment or
equipment, and services for the performance of the recruitment advertising, (6) layoff or termination, (7) rates
prime contract or a subcontract. of pay or other forms of compensation, and (8) selection
for training, including apprenticeship.
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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
to employees and applicants for employment the notices the requirements of section 3 of the Housing and Urban
to be provided by the Contracting Officer that explain this Development Act of 1968, as amended, 12 U.S.C. 1701u
clause. (section 3). The purpose of section 3 is to ensure that
(d) The Contractor shall, in all solicitations or advertisements employment and other economic opportunities generated
for employees placed by or on behalf of the Contractor, by HUD assistance or HUD-assisted projects covered by
state that all qualified applicants will receive section 3, shall, to the greatest extent feasible, be
consideration for employment without regard to race, directed to low- and very low-income persons, particularly
color, religion, sex, national origin, or handicap. persons who are recipients of HUD assistance for
(e) The Contractor shall send, to each labor union or housing.
representative of workers with which it has a collective (b) The parties to this contract agree to comply with HUD's
bargaining agreement or other contract or understanding, regulations in 24 CFR Part 135, which implement section
the notice to be provided by the Contracting Officer 3. As evidenced by their execution of this contract, the
advising the labor union or workers’ representative of the parties to this contract certify that they are under no
Contractor’s commitments under this clause, and post contractual or other impediment that would prevent them
copies of the notice in conspicuous places available to from complying with the Part 135 regulations.
employees and applicants for employment. (c) The contractor agrees to send to each labor organization
(f) The Contractor shall comply with Executive Order 11246, or representative of workers with which the contractor
as amended, and the rules, regulations, and orders of the has a collective bargaining agreement or other
Secretary of Labor. understanding, if any, a notice advising the labor
(g) The Contractor shall furnish all information and reports organization or workers' representative of the contractor's
required by Executive Order 11246, as amended, Section commitments under this section 3 clause, and will post
503 of the Rehabilitation Act of 1973, as amended, and copies of the notice in conspicuous places at the work
by rules, regulations, and orders of the Secretary of site where both employees and applicants for training
Labor, or pursuant thereto. The Contractor shall permit and employment positions can see the notice. The notice
access to its books, records, and accounts by the shall describe the section 3 preference, shall set forth
Secretary of Labor for purposes of investigation to minimum number and job titles subject to hire, availability
ascertain compliance with such rules, regulations, and of apprenticeship and training positions, the qualifications
orders. for each; and the name and location of the person(s)
(h) In the event of a determination that the Contractor is not taking applications for each of the positions; and the
in compliance with this clause or any rule, regulation, or anticipated date the work shall begin.
order of the Secretary of Labor, this contract may be (d) The contractor agrees to include this section 3 clause in
canceled, terminated, or suspended in whole or in part, every subcontract subject to compliance with regulations
and the Contractor may be declared ineligible for further in 24 CFR Part 135, and agrees to take appropriate
Government contracts, or Federally assisted construction action, as provided in an applicable provision of the
contracts under the procedures authorized in Executive subcontract or in this section 3 clause, upon a finding that
Order 11246, as amended. In addition, sanctions may be the subcontractor is in violation of the regulations in 24
imposed and remedies invoked against the Contractor as CFR Part 135. The contractor will not subcontract with
provided in Executive Order 11246, as amended, the any subcontractor where the contractor has notice or
rules, regulations, and orders of the Secretary of Labor, 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 positions, including training positions, that are filled (1)
exempted by the rules, regulations, or orders of the after the contractor is selected but before the contract is
Secretary of Labor issued under Executive Order 11246, executed, and (2) with persons other than those to whom
as amended, so that these terms and conditions will be the regulations of 24 CFR Part 135 require employment
binding upon each subcontractor or vendor. The opportunities to be directed, were not filled to circumvent
Contractor shall take such action with respect to any the contractor's obligations under 24 CFR Part 135.
subcontract or purchase order as the Secretary of (f) Noncompliance with HUD's regulations in 24 CFR Part
Housing and Urban Development or the Secretary of 135 may result in sanctions, termination of this contract
Labor may direct as a means of enforcing such for default, and debarment or suspension from future
provisions, including sanctions for noncompliance; HUD assisted contracts.
provided that if the Contractor becomes involved in, or is (g) With respect to work performed in connection with section
threatened with, litigation with a subcontractor or vendor 3 covered Indian housing assistance, section 7(b) of the
as a result of such direction, the Contractor may request Indian Self-Determination and Education Assistance Act
the United States to enter into the litigation to protect the (25 U.S.C. 450e) also applies to the work to be
interests of the United States. performed under this contract. Section 7(b) requires that
(j) Compliance with the requirements of this clause shall be to the greatest extent feasible (i) preference and
to the maximum extent consistent with, but not in opportunities for training and employment shall be given
derogation of, compliance with section 7(b) of the Indian to Indians, and (ii) preference in the award of contracts
Self-Determination and Education Assistance Act and the and subcontracts shall be given to Indian organizations
Indian Preference clause of this contract. and Indian-owned Economic Enterprises. Parties to this
40. Employment, Training, and Contracting contract that are subject to the provisions of section 3
Opportunities for Low-Income Persons, Section 3 of and section 7(b)agree to comply with section 3 to the
the Housing and Urban Development Act of 1968. maximum extent feasible, but not in derogation of
compliance with section 7(b).
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41. Interest of Members of Congress (a) The PHA, HUD, or Comptroller General of the United
States, or any of their duly authorized representatives
No member of or delegate to the Congress of the United shall, until 3 years after final payment under this contract,
States of America shall be admitted to any share or part have access to and the right to examine any of the
of this contract or to any benefit that may arise therefrom. Contractor’s directly pertinent books, documents, papers,
or other records involving transactions related to this
42. Interest of Members, Officers, or Employees and contract for the purpose of making audit, examination,
Former Members, Officers, or Employees excerpts, and transcriptions.
(b) The Contractor agrees to include in first-tier subcontracts
No member, officer, or employee of the PHA, no member under this contract a clause substantially the same as
of the governing body of the locality in which the project paragraph (a) above. “Subcontract,” as used in this
is situated, no member of the governing body of the clause, excludes purchase orders not exceeding
locality in which the PHA was activated, and no other $10,000.
public official of such locality or localities who exercises (c) The periods of access and examination in paragraphs (a)
any functions or responsibilities with respect to the and (b) above for records relating to (1) appeals under
project, shall, during his or her tenure, or for one year the Disputes clause of this contract, (2) litigation or
thereafter, have any interest, direct or indirect, in this settlement of claims arising from the performance of this
contract or the proceeds thereof. contract, or (3) costs and expenses of this contract to
which the PHA, HUD, or Comptroller General or any of
43. Limitations on Payments made to Influence Certain their duly authorized representatives has taken exception
Federal Financial Transactions 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 46. Labor Standards - Davis-Bacon and Related Acts
Federal appropriated funds to pay any person for
influencing or attempting to influence an officer or If the total amount of this contract exceeds $2,000, the
employee of any agency, a Member of Congress, and Federal labor standards set forth in the clause below
officer or employee of Congress, or an employee of a shall apply to the development or construction work to be
Member of Congress in connection with any of the performed under the contract.
following covered Federal actions: the awarding of any (a) Minimum Wages.
Federal contract; the making of any Federal grant; the (1) All laborers and mechanics employed under this
making of any Federal loan; the entering into of any contract in the development or construction of the
cooperative agreement; or the modification of any project(s) involved will be paid unconditionally and not
Federal contract, grant, loan, or cooperative agreement. less often than once a week, and without subsequent
(b) The Contractor further agrees to comply with the deduction or rebate on any account (except such payroll
requirement of the Act to furnish a disclosure (OMB deductions as are permitted by regulations issued by the
Standard Form LLL, Disclosure of Lobbying Activities) if Secretary of Labor under the Copeland Act (29 CFR Part
any funds other than Federal appropriated funds 3)), the full amount of wages and bona fide fringe benefits
(including profit or fee received under a covered Federal (or cash equivalents thereof) due at time of payment
transaction) have been paid, or will be paid, to any computed at rates not less than those contained in the
person for influencing or attempting to influence an officer wage determination of the Secretary of Labor which is
or employee of any agency, a Member of Congress, an attached hereto and made a part hereof, regardless of
officer or employee of Congress, or an employee of a any contractual relationship which may be alleged to exist
Member of Congress in connection with a Federal between the Contractor and such laborers and
contract, grant, loan, or cooperative agreement. mechanics. Contributions made or costs reasonably
anticipated for bona fide fringe benefits under Section
44. Royalties and Patents 1(b)(2) of the Davis-Bacon Act on behalf of laborers or
mechanics are considered wages paid to such laborers
The Contractor shall pay all royalties and license fees. It or mechanics, subject to the provisions of 29 CFR
shall defend all suits or claims for infringement of any 5.5(a)(1)(iv); also, regular contributions made or costs
patent rights and shall save the PHA harmless from loss incurred for more than a weekly period (but not less often
on account thereof; except that the PHA shall be than quarterly) under plans, funds, or programs which
responsible for all such loss when a particular design, cover the regular weekly period, are deemed to be
process or the product of a particular manufacturer or constructively made or incurred during such weekly
manufacturers is specified and the Contractor has no period. Such laborers and mechanics shall be paid the
reason to believe that the specified design, process, or appropriate wage rate and fringe benefits in the wage
product is an infringement. If, however, the Contractor determination for the classification of work actually
has reason to believe that any design, process or product performed, without regard to skill, except as provided in
specified is an infringement of a patent, the Contractor 29 CFR 5.5(a)(4). Laborers or mechanics performing
shall promptly notify the Contracting Officer. Failure to work in more than one classification may be
give such notice shall make the Contractor responsible compensated at the rate specified for each classification
for resultant loss. for the time actually worked therein; provided, that the
employer’s payroll records accurately set forth the time
45. Examination and Retention of Contractor’s Records 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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Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
be posted at all times by the Contractor and its amount of any costs reasonably anticipated in
subcontractors at the site of the work in a prominent and providing bona fide fringe benefits under a plan or
accessible place where it can be easily seen by the program; provided, that the Secretary of Labor has
workers. found, upon the written request of the Contractor, that
(2) (i) Any class of laborers or mechanics, including the applicable standards of the Davis-Bacon Act have
helpers, which is not listed in the wage been met. The Secretary of Labor may require the
determination and which is to be employed under Contractor to set aside in a separate account assets
the contract shall be classified in conformance for the meeting of obligations under the plan or
with the wage determination. HUD shall approve program.
an additional classification and wage rate and (b) Withholding of funds. HUD or its designee shall, upon its
fringe benefits therefor only when all the following own action or upon written request of an authorized
criteria have been met: (A) The work to be representative of the Department of Labor, withhold or
performed by the classification requested is not cause to be withheld from the Contractor under this
performed by a classification in the wage contract or any other Federal contract with the same
determination; and (B) The classification is utilized prime Contractor, or any other Federally-assisted
in the area by the construction industry; and (C) contract subject to Davis-Bacon prevailing wage
The proposed wage rate, including any bona fide requirements, which is held by the same prime
fringe benefits, bears a reasonable relationship to Contractor, so much of the accrued payments or
the wage rates contained in the wage advances as may be considered necessary to pay
determination. laborers and mechanics, including apprentices, trainees,
(ii) If the Contractor and the laborers and mechanics and helpers, employed by the Contractor or any
to be employed in the classification (if known), or subcontractor the full amount of wages required by the
their representatives, and HUD or its designee contract. In the event of failure to pay any laborer or
agree on the classification and wage rate mechanic, including any apprentice, trainee, or helper,
(including the amount designated for fringe employed or working in the construction or development
benefits where appropriate), a report of the action of the project, all or part of the wages required by the
taken shall be sent by HUD or its designee to the contract, HUD or its designee may, after written notice to
Administrator of the Wage and Hour Division, the Contractor, take such action as may be necessary to
Employee Standards Administration, U.S. cause the suspension of any further payment, advance,
Department of Labor, Washington, DC 20210. or guarantee of funds until such violations have ceased.
The Administrator, or an authorized HUD or its designee may, after written notice to the
representative, will approve, modify, or disapprove Contractor, disburse such amounts withheld for and on
every additional classification action within 30 account of the Contractor or subcontractor to the
days of receipt and so advise HUD or its designee respective employees to whom they are due.
or will notify HUD or its designee within the 30-day (c) Payrolls and basic records.
period that additional time is necessary. (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
mechanics to be employed in the classification or work and preserved for a period of three years
their representatives, and HUD or its designee do thereafter for all laborers and mechanics working in
not agree on the proposed classification and wage the construction or development of the project. Such
rate (including the amount designated for fringe records shall contain the name, address, and social
benefits, where appropriate), HUD or its designee security number of each such worker, his or her
shall refer the questions, including the views of all correct classification, hourly rates of wages paid
interested parties and the recommendation of (including rates of contributions or costs anticipated
HUD or its designee, to the Administrator of the for bona fide fringe benefits or cash equivalents
Wage and Hour Division for determination. The thereof of the types described in section 1(b)(2)(B) of
Administrator, or an authorized representative, will the Davis-Bacon Act), daily and weekly number of
issue a determination within 30 days of receipt hours worked, deductions made, and actual wages
and so advise HUD or its designee or will notify paid. Whenever the Secretary of Labor has found,
HUD or its designee within the 30-day period that under 29 CFR 5.5(a)(1)(iv), that the wages of any
additional time is necessary. laborer or mechanic include the amount of costs
(iv) The wage rate (including fringe benefits where reasonably anticipated in providing benefits under a
appropriate) determined pursuant to plan or program described in section 1(b)(2)(B) of the
subparagraphs (a)(2)(ii) or (iii) of this clause shall Davis-Bacon Act, the Contractor shall maintain
be paid to all workers performing work in the records which show that the commitment to provide
classification under this contract from the first day such benefits is enforceable, that the plan or program
on which work is performed in classification. is financially responsible, and that the plan or
(3) Whenever the minimum wage rate prescribed in the program has been communicated in writing to the
contract for a class of laborers or mechanics includes laborers or mechanics affected, and records which
a fringe benefit which is not expressed as an hourly show the costs anticipated or the actual cost incurred
rate, the Contractor shall either pay the benefit as in providing such benefits. Contractors employing
stated in the wage determination or shall pay another apprentices or trainees under approved programs
bona fide fringe benefit or an hourly cash equivalent shall maintain written evidence of the registration of
thereof. apprenticeship programs and certification of trainee
(4) If the Contractor does not make payments to a trustee programs, the registration of the apprentices and
or other third person, the Contractor may consider as trainees, and the ratios and wage rates prescribed in
part of the wages of any laborer or mechanic the the applicable programs.
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(2) (i) The Contractor shall submit weekly for each week make such records available may be grounds for
in which any contract work is performed a copy of debarment action pursuant to 29 CFR 5.12.
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 less than the predetermined rate for the work they
submitted shall set out accurately and completely performed when they are employed pursuant to and
all of the information required to be maintained individually registered in a bona fide apprenticeship
under subparagraph (c)(1) of this clause. This program registered with the U.S. Department of
information may be submitted in any form desired. Labor, Employment and Training Administration,
Optional Form WH-347 (Federal Stock Number Office of Apprenticeship and Training, Employer and
029-005-00014-1) is available for this purpose Labor Services (OATELS), or with a State
and may be purchased from the Superintendent of Apprenticeship Agency recognized by OATELS, or if
Documents, U.S. Government Printing Office, a person is employed in his or her first 90 days of
Washington, D.C. 20402. The Contractor is probationary employment as an apprentice in such an
responsible for the submission of copies of apprenticeship program, who is not individually
payrolls by all subcontractors. (Approved by the registered in the program, but who has been certified
Office of Management and Budget under OMB 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
“Statement of Compliance,” signed by the apprentices to journeymen on the job site in any craft
Contractor or subcontractor or his or her agent classification shall not be greater than the ratio
who pays or supervises the payment of the permitted to the Contractor as to the entire work force
persons employed under the contract and shall under the registered program. Any worker listed on a
certify the following: payroll at an apprentice wage rate, who is not
(A) That the payroll for the payroll period contains registered or otherwise employed as stated in this
the information required to be maintained paragraph, shall be paid not less than the applicable
under paragraph (c) (1) of this clause and that wage rate on the wage determination for the
such information is correct and complete; classification of work actually performed. In addition,
(B) That each laborer or mechanic (including each any apprentice performing work on the job site in
helper, apprentice, and trainee) employed on excess of the ratio permitted under the registered
the contract during the payroll period has been program shall be paid not less than the applicable
paid the full weekly wages earned, without wage rate on the wage determination for the work
rebate, either directly or indirectly, and that no actually performed. Where a contractor is performing
deductions have been made either directly or construction on a project in a locality other than that in
indirectly from the full wages earned, other which its program is registered, the ratios and wage
than permissible deductions as set forth in 29 rates (expressed in percentages of the journeyman’s
CFR Part 3; and hourly rate) specified in the Contractor’s or
(C) That each laborer or mechanic has been paid subcontractor’s registered program shall be observed.
not less than the applicable wage rates and Every apprentice must be paid at not less than the
fringe benefits or cash equivalents for the rate specified in the registered program for the
classification of work performed, as specified apprentice’s level of progress, expressed as a
in the applicable wage determination percentage of the journeyman hourly rate specified in
incorporated into the contract. the applicable wage determination. Apprentices shall
(iii) The weekly submission of a properly executed be paid fringe benefits in accordance with the
certification set forth on the reverse side of provisions of the apprenticeship program. If the
Optional Form WH-347 shall satisfy the apprenticeship program does not specify fringe
requirements for submission of the “Statement of benefits, apprentices must be paid the full amount of
Compliance” required by subparagraph (c)(2)(ii) of fringe benefits listed on the wage determination for
this clause. the applicable classification. If the Administrator of the
(iv) The falsification of any of the above certifications Wage and Hour Division determines that a different
may subject the Contractor or subcontractor to practice prevails for the applicable apprentice
civil or criminal prosecution under Section 1001 of classification, fringes shall be paid in accordance with
Title 18 and Section 3729 of Title 31 of the United that determination. In the event OATELS, or a State
States Code. Apprenticeship Agency recognized by OATELS,
(3) The Contractor or subcontractor shall make the withdraws approval of an apprenticeship program, the
records required under subparagraph (c)(1) available Contractor will no longer be permitted to utilize
for inspection, copying, or transcription by authorized apprentices at less than the applicable predetermined
representatives of HUD or its designee, the rate for the work performed until an acceptable
Contracting Officer, or the Department of Labor and program is approved.
shall permit such representatives to interview (2) Trainees. Except as provided in 29 CFR 5.16,
employees during working hours on the job. If the trainees will not be permitted to work at less than the
Contractor or subcontractor fails to submit the predetermined rate for the work performed unless
required records or to make them available, HUD or they are employed pursuant to and individually
its designee may, after written notice to the registered in a program which has received prior
Contractor, take such action as may be necessary to approval, evidenced by formal certification by the U.S.
cause the suspension of any further payment, Department of Labor, Employment and Training
advance, or guarantee of funds. Furthermore, failure Administration. The ratio of trainees to journeymen on
to submit the required records upon request or to the job site shall not be greater than permitted under
Previous editions are obsolete Page 17 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
the plan approved by the Employment and Training (2) No part of this contract shall be subcontracted to any
Administration. Every trainee must be paid at not less person or firm ineligible for award of a United States
than the rate specified in the approved program for Government contract by virtue of section 3(a) of the
the trainee’s level of progress, expressed as a Davis-Bacon Act or 29 CFR 5.12(a)(1).
percentage of the journeyman hourly rate specified in (3) The penalty for making false statements is prescribed
the applicable wage determination. Trainees shall be in the U. S. Criminal Code, 18 U.S.C. 1001.
paid fringe benefits in accordance with the provisions (j) Contract Work Hours and Safety Standards Act. As used
of the trainee program. If the trainee program does in this paragraph, the terms “laborers” and “mechanics”
not mention fringe benefits, trainees shall be paid the include watchmen and guards.
full amount of fringe benefits listed in the wage (1) Overtime requirements. No contractor or
determination unless the Administrator of the Wage subcontractor contracting for any part of the contract
and Hour Division determines that there is an work which may require or involve the employment of
apprenticeship program associated with the laborers or mechanics, including watchmen and
corresponding journeyman wage rate in the wage guards, shall require or permit any such laborer or
determination which provides for less than full fringe mechanic in any workweek in which the individual is
benefits for apprentices. Any employee listed on the employed on such work to work in excess of 40 hours
payroll at a trainee rate who is not registered and in such workweek unless such laborer or mechanic
participating in a training plan approved by the receives compensation at a rate not less than one
Employment and Training Administration shall be paid and one-half times the basic rate of pay for all hours
not less than the applicable wage rate in the wage worked in excess of 40 hours in such workweek.
determination for the classification of work actually (2) Violation; liability for unpaid wages; liquidated
performed. In addition, any trainee performing work damages. In the event of any violation of the
on the job site in excess of the ratio permitted under provisions set forth in subparagraph (j)(1) of this
the registered program shall be paid not less than the clause, the Contractor and any subcontractor
applicable wage rate in the wage determination for responsible therefor shall be liable for the unpaid
the work actually performed. In the event the wages. In addition, such Contractor and
Employment and Training Administration withdraws subcontractor shall be liable to the United States (in
approval of a training program, the Contractor will no the case of work done under contract for the District
longer be permitted to utilize trainees at less than the of Columbia or a territory, to such District or to such
applicable predetermined rate for the work performed territory), for liquidated damages. Such liquidated
until an acceptable program is approved. damages shall be computed with respect to each
(3) Equal employment opportunity. The utilization of individual laborer or mechanic (including watchmen
apprentices, trainees, and journeymen under this and guards) employed in violation of the provisions
clause shall be in conformity with the equal set forth in subparagraph (j)(1) of this clause, in the
employment opportunity requirements of Executive sum of $10 for each calendar day on which such
Order 11246, as amended, and 29 CFR Part 30. individual was required or permitted to work in excess
(e) Compliance with Copeland Act requirements. The of the standard workweek of 40 hours without
Contractor shall comply with the requirements of 29 CFR payment of the overtime wages required by
Part 3, which are hereby incorporated by reference in this provisions set forth in subparagraph (j)(1) of this
(f) Contract termination; debarment. A breach of this contract (3) Withholding for unpaid wages and liquidated
clause may be grounds for termination of the contract damages. HUD or its designee shall upon its own
and for debarment as a Contractor and a subcontractor action or upon written request of an authorized
as provided in 29 CFR 5.12. representative of the Department of Labor withhold or
(g) Compliance with Davis-Bacon and related Act cause to be withheld, from any moneys payable on
requirements. All rulings and interpretations of the Davis- account of work performed by the Contractor or
Bacon and related Acts contained in 29 CFR Parts 1, 3, subcontractor under any such contract or any Federal
and 5 are herein incorporated by reference in this contract with the same prime Contractor, or any other
contract. Federally-assisted contract subject to the Contract
(h) Disputes concerning labor standards. Disputes arising out Work Hours and Safety Standards Act, which is held
of the labor standards provisions of this clause shall not by the same prime Contractor, such sums as may be
be subject to the general disputes clause of this contract. determined to be necessary to satisfy any liabilities of
Such disputes shall be resolved in accordance with the such Contractor or subcontractor for unpaid wages
procedures of the Department of Labor set forth in 29 and liquidated damages as provided in the provisions
CFR Parts 5, 6, and 7. Disputes within the meaning of set forth in subparagraph (j)(2) of this clause.
this clause include disputes between the Contractor (or (k) Subcontracts. The Contractor or subcontractor shall insert
any of its subcontractors) and the PHA, HUD, the U.S. in any subcontracts all the provisions contained in this
Department of Labor, or the employees or their clause, and such other clauses as HUD or its designee
representatives. may by appropriate instructions require, and also a
(i) Certification of eligibility. clause requiring the subcontractors to include these
(1) By entering into this contract, the Contractor certifies provisions in any lower tier subcontracts. The prime
that neither it (nor he or she) nor any person or firm Contractor shall be responsible for the compliance by any
who has an interest in the Contractor’s firm is a subcontractor or lower tier subcontractor with all these
person or firm ineligible to be awarded contracts by provisions.
the United States Government by virtue of section
3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
Previous editions are obsolete Page 18 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
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
(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.
Previous editions are obsolete Page 19 of 19 form HUD-5370 (11/2006)
Replaces form HUD-5370-A ref Handbooks 7417.1 & 7485.3G
SUPPLEMENTARY GENERAL CONDITIONS
PART 1 - GENERAL
The following supplements modify, delete and/or add to the General Conditions. The paragraphs
or subparagraphs modified herein shall be added thereto, amended, voided, or superseded as
PART 2 - SPECIFIC MODIFICATIONS
1. Paragraph 1 - Definitions
a. Revise subparagraph 1(a) by modifying as follows:
The “Architect” is “Houston Housing Authority.”.
b. Delete subparagraph 1(e) in its entirety and substitute the following therefore:
"(e) The term “Drawings” means the contract drawings enumerated on the
cover sheet of the Contract Drawings Set signed by all parties to the Contract.”
c. Delete subparagraph 1(h) in its entirety and substitute the following therefore:
"(h) The terms "LHA", "PHA", "Houston Housing Authority", "Local
Authority", or "Housing Authority" are synonymous with the term "Owner" and
shall mean the Houston Housing Authority, as organized under applicable state
2. Paragraph 2 - Contractor's Responsibility for Work
a. Add to subparagraph 2(e) the following sentences as a condition to fitting and
coordination of work:
"Contractor shall be responsible for proper fitting of all Work and for
coordination of operations of all trades, subcontractors, or material
supplier employed by him engaged upon the Work. He shall be prepared
to guarantee to each of his subcontractors the dimensions required for
fitting of their work to all surrounding work and shall do all cutting,
fitting, adjusting, and patching as necessary to make the several parts of
the Work come together properly and to fit the Work to receive, or be
received by, that of other contractors."
Supplementary General Conditions 00800-1
b. Delete subparagraph 2(h) in its entirety and substitute the following therefore:
The Contractor's responsibility for the Work, except for latent defects and
warranty work, will terminate when all Work has been completed, final
inspection is made, and the Work is accepted by the Contracting Officer."
c. Add subparagraph 2(i) as to responsibility of Contractor.
( i ) INDEMINIFICATION AND HOLD HARMLESS AGREEMENT
CONTRACTOR SHALL INDEMNIFY, DEFEND, AND HOLD THE HOUSTON
HOUSING AUTHORITY AND THEIR OFFICERS, AGENTS AND EMPLOYEES (THE
“INDEMNIFIED PERSONS”) HARMLESS FROM ALL LIABILITY, LOSS OR
DAMAGE, INCLUDING ATTORNEY FEES AND EXPENSES, RESULTING FROM
ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION OF EVERY KIND AND
CHARACTER ASSERTED BY ANY PERSON (INCLUDING, WITHOUT
LIMITATION, THE INDEMNIFIED PERSONS’ OR CONTRACTOR’S EMPLOYEES),
FOR PERSONAL INJURY, DEATH, OR FOR LOSS OF OR DAMAGE TO ANY AND
ALL PROPERTY IN ANY WAY ARISING OUT OF OR IN CONNECTION WITH
CONTRACTOR’S PERFORMANCE HEREUNDER. CONTRACTOR SHALL BE
RESPONSIBLE FOR ALL DAMAGE AND LOSS SUSTAINED BY IT TO ITS TOOLS
AND EQUIPMENT UTILIZED IN THE PERFORMANCE OF CONTRACTORS
NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY,
CONTRACTOR INDEMNIFICATION OF THE INDEMNIFIED PERSONS IS LIMITED
TO $1,000,000 PER OCCURRENCE.
THE HOUSTON HOUSING AUTHORITY SHALL NOTIFY CONTRACTOR OF ANY
CLAIM THE HOUSTON HOUSING AUTHORITY RECEIVES NOTICE OF
ASSERTED AGAINST THE INDEMNIFIED PERSONS WITH RESPECT TO WHICH
INDEMNIFIED PERSONS ARE INDEMNIFIED AGAINST LOSS BY CONTRACTORS
HEREUNDER WITHIN FIFTEEN (15) DAYS OF THE HOUSTON HOUSING
AUTHORITY’S RECEIPT OF NOTICE OF SUCH CLAIM, AND SHALL PROMPTLY
DELIVER TO CONTRACTOR THE ORIGINAL OR A TRUE COPY OF ANY
SUMMONS OR OTHER PROCESS, PLEADING, OR NOTICE ISSUED OR SERVED IN
ANY SUIT OR OTHER PROCEEDING TO ASSERT OR ENFORCE ANY SUCH
CLAIM. IF THE HOUSTON HOUSING AUTHORITY OR ANY OF THE
INDEMNIFIED PERSONS DO NOT PROVIDE THIS NOTICE WITHIN THE FIFTEEN
(15) DAY PERIOD, IT DOES NOT WAIVE ANY RIGHT TO INDEMNIFICATION
EXCEPT TO THE EXTENT THAT CONTRACTOR IS PREJUDICED, SUFFERS LOSS,
OR INCURS EXPENSE BECAUSE OF THE DELAY.
FOLLOWING SUCH NOTIFICATION, AND EXCEPT AS OTHERWISE PROVIDED
BELOW, CONTRACTOR SHALL DEFEND ANY SUCH SUIT AT ITS SOLE COST
AND EXPENSE WITH ATTORNEYS OF ITS OWN SELECTION WHO ARE
REASONABLY SATISFACTORY TO HOUSTON HOUSING AUTHORITY.
Supplementary General Conditions 00800-2
CONTRACTOR SHALL CONTROL THE DEFENSE AND ANY NEGOTIATIONS TO
SETTLE THE CLAIM, BUT THE INDEMNIFIED PERSONS SHALL HAVE THE
RIGHT, IF THEY SEE FIT, TO PARTICIPATE IN SUCH DEFENSE AT THEIR OWN
EXPENSE. CONTRACTOR SHALL HAVE THE POWER TO SETTLE THE CLAIM
WITHOUT THE CONSENT OR AGREEMENT OF HOUSTON HOUSING
AUTHORITY UNLESS THE SETTLEMENT WOULD (I) RESULT IN INJUNCTIVE
RELIEF OR OTHER EQUITABLE REMEDIES OR OTHERWISE REQUIRE THE
INDEMNIFIED PERSONS TO COMPLY WITH RESTRICTIONS OR LIMITATIONS
THAT WOULD ADVERSELY AFFECT THE INDEMNIFIED PERSONS, (II) REQUIRE
THE INDEMNIFIED PERSONS TO PAY AMOUNTS THAT CONTRACTOR DOES
NOT FUND IN FULL, (III) NOT RESULT IN THE INDEMNIFIED PERSONS’ FULL
AND COMPLETE RELEASE FROM ALL LIABILITY TO THE CLAIMANTS OR
OTHER PARTIES THAT ARE PARTIES TO OR ARE OTHERWISE BOUND BY THE
SETTLEMENT OR (IV) ESTABLISH A PRECEDENT(S) WHICH THE INDEMNIFIED
PERSONS, IN THEIR SOLE DISCRETION INDIVIDUALLY OR IN THEIR
COLLECTIVE DISCRETION AS A GROUP, DETERMINES IS NOT IN THE BEST
INTEREST OF THE INDEMNIFIED PERSONS.
IF CONTRACTOR NOTIFIES THE HOUSTON HOUSING AUTHORITY IN WRITING
WITHIN TEN (10) DAYS AFTER RECEIPT OF HOUSTON HOUSING AUTHORITY’S
WRITTEN NOTICE OF A CLAIM AND REQUEST FOR INDEMNIFICATION THAT
IT ELECTS NOT TO DEFEND THE CLAIM, HOUSTON HOUSING AUTHORITY OR
ANY OF THE INDEMNIFIED PERSONS SHALL ASSUME AND CONTROL THE
DEFENSE AND ALL DEFENSE EXPENSES SHALL CONSTITUTE AN
3. Paragraph 3 - Architect's Duties, Responsibilities, and Authority
a. Add the following new subparagraph 3(c)(5):
"(5) Making recommendations to Contracting Officer regarding all
aspects concerning additional work, changes, substitutions,
deletions, credits, and negotiating with Contractor subject to
Contracting Officer's approval and authority.”
4. Paragraph 6 - Construction Progress Schedule
a. Delete subparagraph 6(a) in its entirety and substitute the following therefore:
"(a) The Contractor, promptly after executing the Contract and before
commencing work, shall prepare and submit for the Owner and Architect's
information three copies of the Contractor's construction schedule for the
Work. The schedule shall show the dates upon which Contractor will start
and complete all aspects of the Work and shall be updated monthly, or
more often, at the Contracting Officer's request. Failure of Contractor to
submit timely schedules will result in the Owner withholding progress
Supplementary General Conditions 00800-3
b. Add subparagraph 6(d) as follows:
"(d) NO DAMAGE FOR DELAY. In the event Contractor is delayed in the
performance of the Work, Contractor's remedy, if any, shall be limited
solely to an extension of time unless the delay shall have been caused by
acts constituting intentional interference by Owner
with Contractor's performance and when and to the extent that such acts
have continued after Contractor's written notice thereof to Owner. It is
understood and agreed that Owner's exercise of its rights to require
changes in the Work shall not constitute intentional interference with
Contractor's performance of the Work, regardless of the extent or number
of such changes."
5. Paragraph 8 - Differing Site Conditions
a. Add subparagraph 8(e) to clarify responsibility for live utilities and other
"(e) Contractor shall assume all responsibility and expense for damage to any
property upon, or passing through, the site but excluded from the Work or
not owned by the Owner, such as utility lines, or like items. Where
disconnections of underground services are required to be made at street
mains, Contractor shall, at his own expense, restore paving, curb, gutter,
etc. over such cuts in accordance with local regulations."
6. Paragraph 9 - Specifications and Drawings for Construction
a. Add to end of subparagraph 9(a) as to number of copies furnished.
"The Owner will furnish, free of charge, to the Contractor three (3) copies
of the Project Manual. Additional copies requested by the Contractor will
be furnished at cost of reproduction."
7. Paragraph 11 - Material and Workmanship
a. Revise subparagraph 11(a) beginning with the second sentence as follows:
"Specific reference in the Technical Specifications to article, device,
project, material, fixture, form or type or construction by trade name,
make or catalog number shall be interpreted as a mandatory work
requirement except where substitutions are specifically allowed or the
Technical Specifications are not proprietary in nature. Substitutions for
the mandatory items will only be considered if submitted to the Architect
at least 15 days prior to the date of the bid opening. Requests for approval
of substitutions must be submitted in written form and include such
detailed information as to provide for complete comparison of the
Supplementary General Conditions 00800-4
All approved substitutions will be listed by addenda. Only the specified
products or those substitutions listed by addenda shall be used in the
preparation of the Contractor's bid proposal and incorporated into the
Work. The approval of substitutions shall be at the sole discretion of the
Owner and the Architect."
b. Revise the first part of the first sentence of subparagraph 11(b) to read as follows:
"(b) When requesting approval for a substitution prior to bid opening, the
8. Paragraph 12 - Permits and Codes
a. Delete subparagraph 12(b) in its entirety and substitute the following:
"(b) The Contractor shall secure and pay for all permits, fees, licenses, and
utility charges for this project necessary for the proper execution and
completion of the Work. The utility charges shall include all tap-on
charges, meter charges and any other fees or charges required by any
utility company or public agency which sets such fees to accomplish all
Work required by these Contract Documents”.
b. Add subparagraph 12(c) to establish erosion control.
"(c) The Contractor shall strictly follow all guidelines established by these
documents and any other requirements which may be imposed by state or
local codes and regulations. Where erosion control practices must be
reviewed and inspected by government agencies, the Contractor shall
obtain all reviews and comply with all comments resulting there from."
9. Paragraph 13 - Health, Safety and Accident Prevention
a. Add the following to the end of Paragraph 13(b)(1):
"The Contractor shall also comply with the Federal Register, Vol. 35, No.
75, effective April 17, 1971 for compliance with Safety and Health
Regulations for Construction and all revisions and updates thereto and set
forth to implement the Occupational Safety and Health Act of 1970,
purpose of which is to assure safe and healthful working conditions for the
nation’s work force. By law, employers are required to comply with these
10. Paragraph 23- Warranty of Construction
a. Add subparagraph 23(k):
"(k) All warranties shall be assignable to the Owner or other third party
Supplementary General Conditions 00800-5
11. Paragraph 25 - Contract Period
a. Delete paragraph 25 in its entirety and substitute the following therefore:
The Contractor shall complete all work required under this contract within
the time schedule established in the Notice to Proceed issued by the
12. Paragraph 26 - Order of Precedence
a. Delete the first sentence of Paragraph 26 and substitute the following therefore:
"In the event of any conflict(s) between any of the Supplementary General
Conditions, General Conditions, and the Specifications; the
Supplementary General Conditions shall prevail over the General
Conditions and the Specifications, and the General Conditions shall
prevail over the Specifications. In the event of any conflict(s) between any
of the Drawings, the Specifications shall prevail over the Drawings."
13. Paragraph 27 - Payments
a. Extend subparagraph 27(c) by adding the following sub subparagraphs:
"(1) No payments of any kind shall be made to the Contractor until
complete breakdown of the Contract Sum (Schedule of Amounts
for Contract Payments – Form HUD-51000 and related forms) has
been received and approved by the Owner, the Contractor, and
countersigned by the Architect in accordance with the General
(2) Due to funding from a variety of sources, the contractor shall
be required to submit multiple detailed schedule of values.
The Schedule of Values will be used for Application for
Payment. A number of different reporting formats for
Application for Payment may be required.”
b. Add the following sub-subparagraph (e)(4):
"(4) Contractor acknowledges, certifies and agrees that by requesting
this progress payment through the date of this request that neither
Contractor, nor any of its subcontractors or suppliers at any tier,
have any claims or disputes of any kind against Owner and
Contractor releases any and all claims up through and including the
date of this certification and release. Contractor further certifies
that the representative of Contractor who signs the request for
progress payments has Contractor's authority to make the
certifications and releases set forth herein."
Supplementary General Conditions 00800-6
14. Paragraph 29 - Changes
a. Extend paragraph (c) by adding the following:
"No change discussed with the Contractor by the Owner, either orally or in
writing, shall be considered authorized until the Contractor has submitted
a written proposal itemizing the cost of the proposed change; and the
change has been accepted based upon the costs proposed by the Contractor
in the form of a written change order from the Contracting Officer, or until
the Contracting Officer has issued written authorization to proceed. If the
Contractor proceeds with a proposed change prior to receipt of written
authorization as outlined above, then the Contractor proceeds at his own
risk. Should the proposed change later be rejected, then the costs incurred
by the Contractor for premature actions shall be borne solely by the
Contractor without additional compensation from the Owner."
b. Delete paragraph (d) and substitute:
"(d) If Owner and Contractor cannot agree on the cost of a change order,
Contracting Officer may order Contractor to perform the Work and
Contractor shall perform the Work without delay and in a timely manner.
Contracting Officer may treat this as a claim under paragraph 31.
Contractor's cost shall be limited as set forth in Paragraph 29(b) and shall
be subject to audit by Owner. Contracting Officer, at his discretion and
judgment, may pay Contractor some amount as an equitable adjustment."
c. Delete paragraph (e) and substitute:
"(e) Contractor must assert its right to an equitable adjustment or
additional compensation for any reason within thirty-one (31) days
after receipt of a written change order request or prior to final payment,
whichever occurs sooner. No proposal by the Contractor for any equitable
adjustment shall be allowed after final payment.”
d. Delete paragraph (f) and substitute:
"(f) Changes to the Contract and changes in the Work shall come only
in writing from the Contracting Officer. Contractor agrees not to perform
any change order, additional or extra work until written authorization from
the Contracting Officer is received by Contractor. Contractor and the
Owner, through the Contracting Officer, and the Architect agree that any
change which causes an increase or decrease in Contractor's cost of, or the
time required for the performance of any part of the Work, shall be the
subject of a change order based upon agreement among the Owner and
Contractor. Contractor agrees to prepare a written cost proposal and
request for equitable adjustment and submit the same to
Supplementary General Conditions 00800-7
Contracting Officer within three (3) days of notification of any
change. All costs involved shall be calculated in accordance with this
paragraph or by agreement between Owner, Contractor and Architect. The
labor cost shall be based upon the daily wage rates as entered in the
Certified Payrolls. No additional costs of labor
burden, insurance and bond charges will be considered. For work
performed by subcontractors, the general contractor may not receive
payments for overhead and profit greater than ten percent (10%) of the
cost of the subcontractor’s work and for work performed by the general
contractor’s own personnel, the general contractor may not receive
payments for overhead and profit greater than fifteen percent (15%) of the
cost of direct labor and materials, subject to audit by Owner”.
15. Paragraph 31 - Disputes
Delete Paragraph (a) through (f) in their entirety and substitute the following:
“(a) Definition. A Claim is any demand or assertion by the Contractor that it should
be paid more money than the Contract Sum, as adjusted under the Change Order
provisions herein, or granted more contract time by the Owner because of action
or inaction on the part of the Owner, Architect, or any party for whom the Owner
is responsible, or any party with whom the Owner has separately contracted for
other portions of the Project, including, but not limited to, any demand or
assertion that the Contractor’s performance has been delayed, interrupted or
interfered with, that the Contractor’s performance has been accelerated,
constructively accelerated, or suspended, that the Contractor’s performance has
been wrongfully terminated, that the Contract Documents have been
misinterpreted, that there has been a failure of payment, that the Contractor has
encountered concealed or unknown conditions, that the Contractor has
encountered hazardous materials, that there are problems with the Contract
Documents, or the timing of architectural approvals or decisions, that actions of
the Owner have been intentionally wrongful or deceptive, that the Owner is
directly or indirectly guilty of negligence or an intentional tort related in any way
to the Work, that an item treated as a minor change in the Work should have been
treated as a Change Order, that a time extension grant was inadequate, that there
has been a breach of contract, or that the Contractor is entitled to any other relief,
on any legal or equitable theory, related to the Work or the Contract. This
definition of Claim is not intended to create any right of action where the right of
action does not otherwise exist under applicable law or other provisions of this
(b) Notice Requirement. Within fourteen (14) days of the first occurrence of an
event that the Contractor has any reason to believe might result in a Claim, or
within fourteen (14) days of the Contractor’s discovery of the first occurrence of
an event that the Contractor has any reason to believe
Supplementary General Conditions 00800-8
might result in a Claim if the first occurrence of the event was willfully
hidden from the Contractor, the Contractor shall file a written document clearly
captioned ‘Notice of Claim’ with the Owner and Architect. The Notice shall
clearly set out the specific matter of complaint, and the impact or damages which
may occur or have occurred as a result thereof, to the extent the impact or
damages can be assessed at the time of the Notice. If the impact or damages
cannot be assessed as of the date of the Notice, the Notice shall be amended at the
earliest date this is reasonably possible.
(c) Waiver. Any Claim or portion of a Claim that has not been made the specific
subject of a Notice strictly in accordance with the requirements of this section
shall be waived and released. It is imperative that the Owner have timely, specific
Notice of any subject, the impact of which the Owner may be in a position to
(d) Course of Dealing. No course of conduct or dealing between the parties, nor
implied acceptance of alterations or additions to the Work or changes to the
Contract schedule, shall be the basis for any Claim for an increase in the Contract
Sum or change in the Contract Time.
(e) Claims Handling During Construction. After receipt of a Notice of Claim, the
Owner may elect to refer the matter to the Architect or another party for review.
The Contractor will attend meetings called to review and discuss the Claims and
mitigation of the problem, and shall furnish any reasonable factual backup for the
Claim requested. The Owner may also elect to defer consideration of the Claim
until the Work is completed, in which case the same review options shall be
available to the Owner at the completion of the Work. At any stage, the Owner,
at its sole discretion, is entitled to refer a Claim to mediation under the
Construction Industry Mediation Rules of the American Arbitration Association,
and if this referral is made, the Contractor will take part in the mediation process.
The filing, mediation or rejection of a Claim does not entitle the Contractor to
stop performance of the Work. The Contractor shall proceed diligently with
performance of the Contract during the pendency of any claim, excepting
termination or under the Owner’s direction to stop the Work. Agreements
reached in mediation shall be enforceable as settlement agreements in any court
having jurisdiction thereof. The parties shall share the Mediator’s fee and any
filing fees equally, and the Mediation shall be held in Houston, Texas.
(f) Effect of Final Payment. The acceptance of final payment shall constitute a waiver
of Claims by the Contractor which have not previously been identified in a Notice of
Claim and specifically reserved in the final Application for Payment.
Supplementary General Conditions 00800-9
(g) Arbitration. At Owner’s option, all claims, disputes and other matters in question
between the parties to this Agreement, arising out of or relating to this Agreement or
the breach thereof, shall be decided by arbitration in accordance with the
Construction Industry Arbitration Rules of the American Arbitration Association then
obtaining unless the parties mutually agree otherwise. Arbitration, arising out of or
relating to this Agreement, shall include, by consolidation, joinder, or joint filing, any
additional person or entity not a party to this Agreement to the extent necessary to the
final resolution of the matter in controversy. Owner shall include an arbitration and
consolidation provision in the Owner-Contractor Agreement and shall provide that
similar provisions be included in subcontracts and Purchase Orders. This agreement
to arbitrate and any agreement to arbitrate with an additional person or persons duly
consented to by the parties to this Agreement shall be specifically enforceable under
the prevailing arbitration law.
Notice of the demand for arbitration shall be filed in writing with the other party to
this Agreement and with the American Arbitration Association. The demand shall
be made within a reasonable time after the claim, dispute or other matter in question
has arisen. In no event shall the demand for arbitration be made after the date when
institution of legal or equitable proceedings based on such claim, dispute or other
matter in question would be barred by the applicable statute of limitations.
The award rendered by the arbitrators shall be final, and judgment may be entered
upon it in accordance with applicable law in any court having jurisdiction thereof.
Venue and locale of all claims, controversies or disputes arising out of or related
to this Agreement or any breach thereof whether by arbitration or litigation shall
be Houston, Texas.
(h) Claims for Additional Cost. If the Contractor wishes to make Claim for an
increase in the Contract Sum, written notice as provided herein shall be given
before proceeding to execute the Work. Prior notice is not required for Claims
relating to an emergency endangering life or property.
(i) Calculating Claim Amount. In calculating the amount of any Claim by
Contractor, the following standards will apply:
1. No indirect or consequential damages will be allowed.
2. All damages must be specifically shown to be caused by a proven wrong.
No recovery shall be based on a comparison of planned expenditures to
total actual expenditures, on estimated losses of labor efficiency, on a
comparison of planned manloading to actual manloading, or any other
analysis that is used to show damages indirectly.
Supplementary General Conditions 00800-10
3. Damages are limited to extra costs specifically shown to have been
directly caused by a proven wrong.
4. The maximum daily limit on any recovery for delay shall be the amount
established by the Contractor for job overhead costs, defined in the
Schedule of Values, divided by the total number of calendar days of
Contract Time called for in the original Contract. Absent an overhead
amount in the Schedule of Values, the amount estimated by the Contractor
for job overhead costs shall be used.
5. No damages will be allowed for home office overhead or other home
office charges, or any Eichlay formula calculation.
6. No profit will be allowed on any claim.
This clause shall not reduce the Contractor’s entitlement on a Change Order.”
16. Paragraph 32 - Default
a. Delete subparagraph 32(a) and substitute:
"(a) If Contractor shall fail to commence the Work in accordance with the
provisions of this Agreement or fail to diligently prosecute the
Work to completion thereof in a diligent, efficient, timely,
workmanlike, skillful and careful manner and in strict accordance
with the provisions of the Contract Documents (including the Substantial
Completion Date), fail to use an adequate amount or quality of personnel
or equipment to complete the Work without undue delay, fail to perform
any of its obligations under the Contract Documents, or fail to make
prompt payments to its subcontractors, material men or laborers, then
Owner shall have the right, if Contractor shall not cure any such default
after seven (7) days written notice thereof to: (A) terminate this
Agreement, (B) take possession of and use all or any part of Contractor's
materials, equipment, supplies, and other property of every kind used by
Contractor in the performance of the Work and to use such property in the
completion of the Work, or (C) complete the Work in any manner it deems
desirable, including engaging the services of other parties. Any such act
by Owner shall not be deemed a waiver of any other right or remedy of
Owner. If after exercising any such remedy the cost to Owner of the
performance of the balance of the Work is in excess of that part of the
Contract Sum which has not theretofore been paid to Contractor
hereunder, Contractor shall be liable for and shall reimburse Owner for
b. Delete subparagraph 32(b) in its entirety.
Supplementary General Conditions 00800-11
17. Add paragraph 49 - Communications
(a) All notices, demands, requests, instructions, approvals, proposals, and
claims must be in writing. Verbal requests after execution of the Contract
shall be delivered to the Architect in writing within seven (7) calendar
days after the fact.
(b) Any notice to or demand upon the Contractor shall be sufficiently given if
delivered at the Office of the Contractor (or at such office as he may
designate in writing to the Owner), or deposited in the
United States mail in a sealed, postage-prepaid envelope, or if delivered
with charges prepaid to any telegraph company for transmission, in each
case addressed to such office.
(c) All papers required to be delivered to the Owner shall, unless otherwise
specified in writing to the Contractor, be delivered to:
Bobken Simonians, Vice-President, REID
Houston Housing Authority
2640 Fountainview, Suite 400
Houston, Texas 77057
P.O. Box 2971
Houston, Texas 77252-9950
and any notice to or demand upon the Owner shall be sufficiently
given so delivered, or deposited in the United States mail in a sealed
envelope, or delivered charges prepaid to any telegraph company for
transmission to said person at such address, or to such other
representatives that the Owner may subsequently specify in writing to the
Contractor for such purpose."
18. Add Paragraph 50 - Sales Tax
"50. Sales Tax
(a) The Owner qualifies for exemption from State and Local Sales Tax
pursuant to the provisions of Article 20.04(F) of the Texas Limited Sales,
Excise and Use Tax Act.
(b) Taxes normally levied on the purchase, rent or lease of materials, supplies,
and equipment used or consumed in the performance of this Contract may
be exempted by issuing to suppliers an exemption certificate complying
with State Comptroller of Public Accounts ruling No. 95-0.09 as amended
to be effective October 2, 1968."
Supplementary General Conditions 00800-12
2640 Fountain View Drive ■ Houston, Texas 77057 ■ 713.260.0500 P ■ 713.260.0547 TTY ■ www.housingforhouston.com
EQUAL OPPORTUNITY FOR BUSINESSES AND
LOWER INCOME PERSONS
A. The Contractor and his Subcontractors shall comply with the requirements
of the Equal Opportunity for Business and Lower Income Persons, a copy
of which is bound into the Project Manual.
B. The following forms must be completed by Bidders and submitted with the Form
of Bid as part of the Bid Package:
1. Estimated Project Workforce Breakdown.
2. Estimated Project Workforce Breakdown – Continuation.
3. Proposed Contracts/Subcontracts Breakdown.
C. The goal for participation in Equal Opportunity for Businesses and Lower Income
Persons is 30 percent of the positions listed in “Positions Not Occupied by
D. The Houston Housing Authority is mandated by the U.S. Department of Housing
and Urban Development (D-HUD) to ensure that contractors are in compliance
with Paragraph 40 of the “General Conditions of the Contract for Construction,”
Form HUD 5370, referred to as “Section 3 Requirements.” Subparagraph 40(d)
further identifies 24 CFR Part 135 which is provided as part of this document.
Special attention is directed to Subpart 135.5 – Definitions. Bidders must comply
with submission requirements or risk the possibility of the Bid being considered
A Fair Housing and Equal Employment Opportunity Agency. For assistance: Individuals with disabilities may contact the
504/ADA Administrator at 713-260-0528, TTY 713-260-0547 or 504_ADA@housingforhouston.com
Equal Opportunity for Businesses 00821-1
And Lower Income Persons
AFFIRMATIVE ACTION FOR HANDICAPPED WORKERS
A. The Contractor and his Subcontractors shall comply with the requirements of the
Affirmative Action for Handicapped Workers, a copy of which is bound into the
Affirmative Action for Handicapped Workers 00822-1
AFFIRMATIVE ACTION FOR HANDICAPPED WORKERS
41 CFR 60-741.4
41 CFR 60-250.4
(a) The Contractor will not discriminate against any employee or applicant for employment
because of physical or mental handicap in regard to any position for which the employee or
applicant for employment is qualified. The Contractor agrees to take affirmative action to
employ, advance in employment, and otherwise treat qualified handicapped individuals without
discrimination based upon their physical or mental handicap in all employment practices such as
the following: employment, upgrading, demotion or transfer, recruitment, advertising, layoff or
termination, rates of pay or other forms of compensation, and selection of training, including
(b) The Contractor agrees to comply with the rules, regulations, and relevant orders of the
Secretary of Labor issued pursuant to the Act.
(c) In the event of the Contractor’s noncompliance with the requirements of this clause,
actions for noncompliance may be taken in accordance with the rules, regulations, and relevant
orders of the Secretary of Labor issued pursuant to the Act.
(d) The Contractor agrees to post in conspicuous places, available to employees and
applicants for employment, notice in a form to be prescribed by the Director, provided by or
through the contracting officer. Such notices shall state the Contractor’s obligation under the
law to take affirmative action to employ and advance in employment qualified handicapped
employees and applicants for employment, and the rights of applicants and employees.
(e) The Contractor will notify each labor union or representative of workers with which it has
a collective bargaining agreement or other contract or other understanding, that the Contractor is
bound by the terms of Section 503 of the Rehabilitation Act of 1973, and is committed to take
affirmative action to employ and advance in employment physically and mentally handicapped
(f) The Contractor will include the provisions of this clause in every subcontract or purchase
order of $2,500 or more unless exempted by rules, regulations, or orders of the Secretary issued
pursuant to Section 503 of the Act, so that such provisions will be binding upon each subcontract
or vendor. The Contractor will take such action with request to any subcontract or purchase
orders as the Director of the Office of Federal Contract Compliance Programs may direct to
enforce such provisions, including action for noncompliance.
The Contractor will not discriminate against any employee or applicant for
employment because he or she is a disabled veteran or veteran of the Vietnam Era
in regard to any position for which the employee or applicant for employment is
The Contractor shall comply with the affirmative action clause prescribe in 41
C.F.R. Section 60-250.4(a) through (m) and the regulations contained in part 60-
Affirmative Action for Handicapped Workers 00822-2
HOUSTON HOUSING AUTHORITY SECTION 3 POLICY
A. The Contractor shall comply with the requirements of the Houston Housing Authority
Section 3 Policy.
Section 3 Policy 00823-0
Houston Housing Authority
Section 3 Policy
Houston Housing Authority
Office of the Senior Vice-President
2640 Fountainview, Suite 405
Houston, Texas 77057
July 25, 2008
This Policy Statement:
• Sets forth Houston Housing Authority’s policy, goals and preferences;
• Sets forth the statutory provisions of Section 3; and
• Contains a copy of 24 CFR Part 135, the Section 3 Rules
Page 2 of 20
TABLE OF CONTENTS
TABLE OF CONTENTS 3
STATEMENT OF PURPOSE 4
GOAL STATEMENT 8
SECTION 3 COMPLIANCE REQUIREMENTS 11
FREQUENTLY ASKED QUESTIONS 18
Page 3 of 20
HUD, 24 CFR 135, the Section 3 Rules Attachment
STATEMENT OF PURPOSE
The purpose of Section 3 of the Housing and Urban Development Act of 1968, as
amended by Section 915 of the Housing and Community Development Act of 1992, is 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 toward 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 1992 Act sets forth:
• The types of HUD financial assistance, activities, and recipients subject to the
requirements of Section 3; and
• The specific individual and business concerns that are the intended beneficiaries
of the economic opportunities generated from HUD-assisted activities; and
• The order of priority in which these individual and business concerns should be
recruited and solicited for the employment and other economic opportunities
generated from HUD-assisted activities.
The Houston Housing Authority’s Section 3 Policy is expressed in this statement, the
goal statement, and the preference tiers. Implementation procedures may be amended
periodically by the President and Chief Executive Officer or the Senior Vice-President to
insure that the policy requirements are being met or to bring about efficiencies in the
implementation of the program based on the practice and experience of running the
Page 4 of 20
NEW HIRES- Persons selected to fill full-time, temporary or seasonal employment
RESIDENT OWNED BUSINESS (ROB)- A ROB is a business concern owned or
controlled by public housing residents, that is: (a) at least 51% owned by one or more
public housing residents; and (b) whose management and daily business operations are
controlled by one or more such individuals. For the purpose of Section 3 compliance, a
ROB must also meet the Housing Authority’s definitions of a Section 3 business concern
as described below.
EMPLOYMENT OPPORTUNITIES GENERATED BY SECTION 3 COVERED
ASSISTANCE- All employment opportunities generated by the expenditure of Section 3
covered PIH assistance (i.e. operating assistance, development assistance, and
modernization assistance) and with respect to Section 3 covered housing and community
development assistance, all employment opportunities arising in connection with Section
3 covered projects, including management and administrative jobs (including
architectural, engineering, or related professional services and jobs directly related to
administrative support of these activities) connected with the Section 3 covered project.
RECIPIENT- Any entity which receives Section 3 covered assistance, directly from HUD
or from another recipient and includes, but is not limited to, any State, unit of local
government, PHA, IHA, Indian Tribe, or other public body, public or private nonprofit
organization, private agency or institution, mortgagor, developer, limited dividend
sponsor, builder, property manager, community housing development organization,
resident management corporation, resident council, or cooperative association. Recipient
also includes any successor, assignee, or transferee of any such entity, but does not
include any ultimate beneficiary under the HUD program to which Section 3 applies and
does not include contractors.
SECTION 3- Section 3 of the Housing and Urban Development Act of 1968, as amended
(12 U.S.C. 1701u).
SECTION 3 BUSINESS CONCERN- As defined by the Houston Housing Authority, a
Section 3 business concern is one:
A. That is fifty-one (51%) or more owned by Section 3 residents; or
B. Whose full-time employees includes persons, at least 30 percent of whom
are current Section 3 residents, or were Section 3 residents within three (3)
years of the date of first employment with the business concern; or
C. That provides evidence of a commitment to subcontract in excess of 25
percent of the dollar award of all subcontracts to be awarded to business
concerns that meet the qualifications set forth in A or B in this definition
of “section 3 business concern.”
Page 5 of 20
SECTION 3 CLAUSE- The contract provisions and sanctions set forth in 24 CFR,
SECTION 3 COVERED ACTIVITY- Any activity, that is funded by Section 3 covered
assistance including Public housing assistance.
SECTION 3 COVERED ASSISTANCE- There are no dollar amount thresholds for PIH
(Public and Indian Housing) funded Section 3 covered activities. Section 3 applies to all
contractors and subcontractors performing work in connection with the following
assistance regardless of the amount of the contract or subcontract:
• Public and Indian housing development assistance provided pursuant to Section 5
of the 1937 Act;
• Public and Indian housing operating assistance provided pursuant to Section 9 of
the 1937 Act;
• Public and Indian housing modernization assistance provided pursuant to Section
14 of the 1937 Act;
• Section 8 assistance for work arising in connection with; housing rehabilitation,
housing construction, or other public construction projects.
SECTION 3 COVERED CONTRACT- A contract or subcontract (including a
professional service contract) awarded by a recipient or contractor for work generated by
the expenditure of Section 3 covered assistance or for work arising in connection with a
Section 3 covered project. “Section 3 covered contracts” do not include contracts for the
purchase of supplies and materials except, whenever a contract for materials includes the
installation of the materials, the contract constitutes a “Section 3 covered contract”.
SECTION 3 COVERED PROJECT- The construction, reconstruction, conversion, or
rehabilitation of housing (including reduction and abatement of lead-based paint
hazards), other public construction which includes buildings or improvements (regardless
of ownership) assisted with housing or community development assistance.
SECTION 3 JOINT VENTURE- An association of business concerns, one of which
qualifies as a Section 3 business concern, formed by written joint venture agreement to
engage in and carry out a specific business venture for which purpose the business
concerns combine their efforts, resources, and skills for joint profit, but not necessarily on
a continuing or permanent basis for conducting business generally, and for which the
Section 3 business concern:
• Is responsible for a clearly defined portion of the work to be performed and holds
management responsibilities in the joint venture; and
• Performs at least 25% of the work and is contractually entitled to compensation
proportional to its work.
Page 6 of 20
SECTION 3 RESIDENT-
1.) A public housing resident or
2.) An individual or family that resides in Houston, Harris County and:
• Whose income does not exceed 80 per centum of the median income for
the area; or
• Whose income does not exceed 50 per centum of the median income for
Page 7 of 20
It is the Houston Housing Authority’s policy to achieve Section 3 goals through the
• At least 30% of the aggregate number of full-time new hires must be Section 3
residents, with a preference for residents at the development where the work is
Contractors may demonstrate Section 3 compliance by providing a notarized statement
committing to award to Section 3 business concerns:
• At least 10% of the total dollar amount of all Section 3 covered contracts for
building trades, work for maintenance, repair, modernization, or development of
public housing, or for building trades work arising in connection with housing
rehabilitation, housing construction and other public construction; or
• At least 3% of the total dollar amount of all other Section 3 covered contracts.
Houston Housing Authority’s preference is to contract directly with a Section 3 business
or contract with vendors that subcontract to a Section 3 business. In either case, the
Housing Authority’s preference is further defined as prioritizing business concerns that
employ Houston Housing Authority residents from the property where the work is being
*Note that Supply and Delivery contracts are excepted from these Section 3 Policy
Page 8 of 20
HOUSTON HOUSING AUTHORITY
Houston Housing Authority’s preference is to ensure that as many Housing Authority
residents as possible are employed. In an effort to further that goal, the Authority has
created the following preference tier structure. Vendors are asked to comply with Section
3 by first considering Category I, hiring at the site where work is being performed. If the
vendor demonstrates to the Authority’s satisfaction the inability to hire at the site, the
Authority’s next preference is for the vendor to hire residents from other Authority
properties (category II). If the vendor cannot meet its Section 3 goal in this manner and
needs to move to Category III or IV, that vendor must document this inability to comply
with the preference and the need to move to Category III or IV. [Such inability must be
documented for moves within categories or any moves to a lower category.]
I. Preference for Section 3 Residents in Training and Employment Opportunities
Category I Hire residents from the site where the work is being performed
Category II Hire residents of other public housing developments
Category III Hire participants in a Youthbuild like program being carried out in
the metropolitan area
Category IV Hire other Section 3 residents
II. Preference for Section 3 Business Concerns in Contracting Opportunities
Category I Businesses
Business concerns that are 51 percent or more owned by residents of the housing
development or developments for which the section 3 covered assistance is
expended, or whose full-time permanent workforce includes 30 percent of these
persons as employees
Category II Businesses
Business concerns that are 51 percent or more owned by residents of other
housing developments or developments managed by the Houston Housing
Authority that is expending the section 3 covered assistance, or whose full-time,
permanent workforce includes 30 percent of these persons as employees.
Category III Businesses
Youthbuild like programs being carried out in the metropolitan area in which the
section 3 covered assistance is expended.
Page 9 of 20
Category IV Businesses
Business concerns that are 51 percent or more owned by section 3 resident, or
whose permanent, full-time workforce includes no less than 30 percent section 3
residents or that subcontract in excess of 25 percent of the total amount of
subcontracts to business concerns.
[NOTE: For contracts or purchase orders of $100,000 and under, other economic
opportunities can be identified without regard for the Houston Housing Authority’s
Page 10 of 20
SECTION 3 COMPLIANCE REQUIREMENTS
1. The Section 3 regulations provide that recipients, their contractors, and any
subcontractors demonstrate compliance by employing Section 3 residents as
30% of the aggregate number of new hires.
2. A vendor is required to hire only when a new hire is needed to perform the
work. In the event that no new hires are needed, vendors must pursue other
avenues of compliance as set forth in the Houston Housing Authority’s
preference tier structure.
3. The Section 3 Regulations, at CFR Part 135, require that in public housing
programs, compliance efforts shall be directed to provide training and
employment opportunities to Section 3 residents in the following order of
a. Residents of the development or developments where the covered
assistance is expended.
b. Residents of other developments managed by the Public Housing
Authority that is expending the covered assistance.
c. Participants in HUD Youthbuild like programs in the metropolitan
area or Non-metropolitan County in which covered assistance is
d. All other low-and very low-income persons within the metropolitan
4. In situations where a new hire is needed, a vendor will not be required to hire
persons who are not qualified.
5. If a new hire is needed and a Section 3 resident is identified, that Section 3
resident will be required to submit evidence of Section 3 status to the
recipient, contractor or subcontractor.
6. The Houston Housing Authority requires a preference for hiring from the
development where work is being performed. However, the Houston Housing
Authority will not require a vendor to hire from the development at the site if:
a. A pre-identified list of Section 3 residents from a job site contains no
persons qualified to perform the work. Qualified residents from other
developments shall then be considered.
b. The vendor’s workforce is adequate to do the job and no new hiring is
1. As part of each bid or proposal submitted, the respondent must
document their workforce by position. Such information will be re-
verified at the commencement of the contract.
Page 11 of 20
2. Vendors will be required to submit documentation in the form of
payroll forms submitted weekly that clearly identify the Section 3
hires. The vendor must comply with the Section 3 requirement
throughout the life of the contract. Houston Housing will periodically
audit this information. Failure to comply with the weekly submittal of
payroll shall result in the delay of payment.
3. Houston Housing Authority residents by virtue of their income are
Section 3 residents. Contractors employing Houston Housing
Authority residents must retain documentation that demonstrates any
Houston Housing Authority residents hired to meet Section 3
employment goals are:
a) identified on the lease of household, that is lease compliant in
accordance with Houston Housing Authority’s Relocation
Rights contract; and
b) able to provide to the contractor or subcontractor the client
number for the household where residency is claimed. This
client number must appear on the certified payrolls submitted
by the vendor to verify a Section 3 hire.
4. Non-Houston Housing Authority households claiming Section 3 status
must be prepared to submit evidence of income and residency in
Harris County at the time of hire. As part of the Section 3 compliance
process, vendors will be required to document that employees hired
meet the residency and income requirements.
1. The Section 3 Regulations, at 24 CFR Part 135, provide that
the Houston Housing Authority, its contractors and
subcontractors may demonstrate compliance by awarding
contracts to Section 3 business concerns or to vendors who
contract with such firms.
2. Houston Housing Authority’s contracting goals require that
Section 3 firms receive at least:
a.) 10 percent of the total dollar of all Section 3 covered
contracts for building trades work for maintenance,
repair, modernization or development of public or
Indian housing; or
b.) 10 percent of the total dollar amount of all Section 3
covered contracts for building trades work arising in
connection with housing rehabilitation, housing
construction and other public construction; and
c.) 3 percent of the total dollar amount of all other Section
3 covered contracts.
3. Goals apply to the entire amount of Section 3 covered
assistance awarded to a recipient in any federal fiscal year
Page 12 of 20
(FFY), October 1- September 30. Correspondingly, Houston
Housing Authority’s goals shall apply to the total dollar
amount of each contract or purchase order.
4. Recipients that award contracts to contractors that will provide
training or hiring, must ensure that contractors provide training,
employment and contracting opportunities to Section 3
Residents and Section 3 Business concerns.
5. Efforts shall be directed to award contracts to Section 3
business concerns in the following order of priority:
a.) Business concerns that are 51 percent or more owned
by residents of the housing development or
developments for which the covered assistance is
expended and whose full-time workforce includes 30
percent of these persons as employees or were Section
3 residents of the development within three (3) years of
the date of first employment with the business concern;
b.) Business concerns that are 51 percent or more owned
by resident of other housing developments or
developments managed by the Houston Housing
Authority that are expending the Section 3 covered
assistance and that the Business concerns’ full-time
workforce includes 30 percent of these persons as
employees (or were Section 3 residents of other
Houston Housing developments within three (3) years
of the date of first employment with the business
c.) Business concerns that are 51 percent or more owned
by residents of the housing development or
developments for which the covered assistance is
d.) Business concerns that are 51 percent or more owned
by residents of other housing developments or
developments managed by the Houston Housing
Authority that is expending the Section 3 covered
e.) HUD Youthbuild like programs being carried out in the
metropolitan area or non-metropolitan county in which
the Section 3 covered assistance is expended; or
f.) Business concerns that are 51 percent or more owned
by Section 3 residents; and
i. whose full-time workforce includes 30
percent of these persons as employees; or
ii. that subcontracts 25% or more of the total
amount of the contract (including
Page 13 of 20
modifications) to Section 3 business
g.) Business concerns that are 51 percent or more owned
by Section 3 residents.
1. Business Concerns claiming Section 3 status based on
ownership and workforce or workforce only (as applicable)
must meet that status at the time the bid or proposal is
submitted to the Houston Housing Authority.
2. Anyone claiming to be a Section 3 resident or business concern
shall be required, as set forth by procedure, to provide evidence
of such status.
3. Pursuant to 24 CFR 135.36 (c) any firm, prime or
subcontractor claiming Section 3 status must demonstrate to
the Authority’s satisfaction that the business concern is
responsible and has the ability to complete the work under the
terms and conditions of the proposed contract. In evaluating
firms under this provision the Authority will examine:
a. the work history and prior performance of the firm;
b. the requirements of the job verses the skills evidenced
by the firm through its owners, officers, principals, and
c. technical and logistical capacity to complete the work
considering contracts already awarded to the firm by
the Authority or others;
d. bonding capacity and ability to obtain required
insurance (with allowances for disadvantaged or start-
e. evidence of past sanctions imposed by the Authority or
f. evidence that the firm, its principals, associates,
partners, subcontractors or others have not acted or
colluded in order to circumvent the compliance process
by structuring contractual or other relationships or
engaging in practices designed to comply with Section
3 only to obtain the preference without regard to the
work requirements of the job.
4. A business concern need not hire to be considered a Section 3
business provided that:
a. the business concern is 51% or more owned by a
Section 3 resident; or
b. the business concern’s workforce consists of sufficient
numbers of Section 3 residents to qualify the vendor as
a Section 3 business (30% or more of the full-time
workforce consists of Section 3 residents, or persons
Page 14 of 20
who were Section 3 residents within 3 years of first
c. subcontracts 25% or more of the total amount of the
contract (including modifications) to Section 3 business
5. After award of a contract, if a business concern must hire to
maintain the Section 3 workforce percentage, new hiring
efforts must be made in accordance with the Houston Housing
Authority preference tier for hiring (Tier l).
6. If a business concern claims Section 3 status by virtue of
workforce composition, documentation of the 30% workforce
requirement must be submitted to the Authority as part of the
response to the bid, quote, or proposal. Further, the firm must
maintain the Section 3 workforce percentage throughout the
life of the contract. Workforce composition is subject to audit.
7. A business concern (including joint-ventures) seeking to
qualify for a Section 3 preference shall certify and submit
evidence that they are entitled to the applicable Section 3
preference and that they are a Section 3 business concern as
defined in 24 CFR, Part 135 and by the Houston Housing
Authority pursuant to this policy. Prime or subcontractors
must submit documentation (including workforce composition
data) as part of any bid, quote, or proposal submitted to the
Houston Housing Authority. Additional documentation is
required for joint-ventures.
8. Firms that claim Section 3 business status by subcontracting
25% of the total contract to other Section 3 businesses must
require that the subcontractor(s) provide ownership or
workforce documentation as applicable. The prime contractors
must keep such records on file and available for review by the
Authority. Such documentation must also be submitted as part
of any bid, quote or proposal.
9. Subcontractors identified by any prime contractor claiming
Section 3 status per item 6 must be a Section 3 business by
ownership and/or workforce as defined in this policy.
Subcontractors used by prime contractors to comply with item
6 cannot claim Section 3 status by further subcontracting.
10. Section 3 Joint-Ventures—to meet Section 3 contracting goals
the Authority is permitted to contract with an association of
firms as least one of which meets the Authority’s definition A
or B of a Section 3 Business Concern. A definition of a joint-
venture is provided in the definition section of this policy.
Compliance requirements for joint-ventures are discussed
11. Joint-Ventures are subject to the following documentation
Page 15 of 20
a. The joint-venture agreement must be in writing and
must be submitted as part of the response to any bid or
proposal solicited by the Houston Housing Authority.
In order for the Authority to evaluate the “adequacy”
and “capacity”, the agreement must describe in
sufficient detail the area(s) of work assigned to each
member of the joint-venture.
b. The joint-venture agreement must reference a
completed and fully executed joint-venture
certification, as provided by the Authority, which must
also be attached to the joint-venture agreement as an
c. The Authority requires that the Section 3 joint-venture
partner is a bona-fide Section 3 business, therefore the
joint-venture shall provide documentation that
documents that the Section 3 partner meets the
ownership and workforce, or workforce requirements
established in this policy. Section 3 joint-venture
partners cannot use subcontracting to establish their
status as a Section 3 business concern.
d. Section 3 requires that the joint-venture partner be
responsible for a clearly defined portion of the work.
Proposals or bids must specify the labor hours assigned
to and the compensation to be received by the Section 3
e. Section 3 firms in the joint-venture must be qualified to
perform the scope of work and have the capacity to
complete the work assigned under the joint-venture
agreement (see item b above).
IV. BID OR PROPOSAL EVALUATION
A. Vendors who fail to address Section 3 requirements will be deemed non-
responsive. This means that in the proposal or bid documents submitted to the
Houston Housing Authority, the Contractor’s Affidavit and Compliance
commitment must be completed including applicable attachments and
supporting documentation to support claims of compliance by hiring,
contracting, or other economic opportunities.
B. After written notice from the Houston Housing Authority specifying the
defects in the Section 3 information, vendors will be given no more than 5
business days to complete the form and provide all required documents.
Failure to respond within the 5 days will result in the Authority declaring the
bidder or respondent non-responsive. The contract or bid will then be
awarded to the next lowest and responsive bidder or to the respondent with the
next highest score. Where the selection is a qualifications based procurement,
Page 16 of 20
the Houston Housing Authority will award to the firm that is the next highest
Page 17 of 20
FREQUENTLY ASKED QUESTIONS
The following list contains answers to some of the most frequently asked questions about
the Houston Housing Authority’s Section 3 Policies
• What is Section 3?
• Does Section 3 apply on all contracts and purchase orders?
• What are the Houston Housing Authority’s Section 3 Requirements?
• Ho do I hire Houston Housing Authority Residents?
• How do I identify a Section 3 Business Concern?
• What are the required Section 3 forms?
• Do I have to hire or subcontract on every contract and purchase order?
• Are there any Section 3 reporting requirements?
• What will happen if I do not comply with the Section 3 requirements?
• Who do I contact for assistance in completing the Section 3 forms?
Doing Business with the Houston Housing Authority FAQ’s
What is Section 3?
Section 3 is a HUD regulation which requires that public housing residents, low and very
low-income persons, and Section 3 business concerns receive, where feasible jobs,
training and economic opportunities generated by HUD assistance.
Does Section 3 apply on all contracts and purchase orders?
Section 3 applies to all contracts and purchase orders with the exception of Supply and
Delivery contracts and/or purchase orders, unless installation is included.
What are the Houston Housing Authority’s Section 3 requirements?
The Houston Housing Authority requires that bidders/proposers meet the Section 3
requirements in the following priority order:
1. Hire the required amount of Houston Housing Authority Section 3 residents.
(Houston Housing’s policy emphasizes hiring residents first from the
development where the work is being performed and secondly, from other
Housing Authority developments), or
2. Contract with a Section 3 Business/Resident-Owned Business, or
3. Provide Other Economic Opportunities.
How do I hire Houston Housing Authority Section 3 Residents?
Referrals from the Houston Housing Authority Section 3 database are available through
the Human Resources, Training & Development Department.
Page 18 of 20
How do I identify a Section 3 Business Concern?
Contact the Office of Procurement for a list of certified Resident-Owned Business
What are the required Section 3 forms?
The Schedule C---Section 3 Utilization Plan must be submitted with the bid/proposal.
This form is required for a submission to be considered responsive.
Do I have to hire or subcontract on every contract and purchase order?
It is the Houston Housing Authority’s goal to employ as many Section 3 residents as
possible. Therefore, it is our preference that you hire to meet your goal. If you cannot
hire, we ask you to subcontract with a Section 3 Business. If neither of these compliance
routes are a possibility for you, you may be eligible to comply by offering other
economic opportunities as indicated in the guidebook. For contracts under $100,000 a
vendor may pursue other economic opportunities without attempting to hire or
Are there any Section 3 reporting requirements?
After contract/purchase award, the contractor is required to submit the following
documents to the Contracting Officer or the Procurement Office:
If the contractor chooses to hire:
1. Payroll records must be submitted on a weekly basis. The Department of
Labor form WH-347 is the desired format although other formats will be
accepted as long as all the information is presented and the form bears an
If the contractor chooses to subcontract:
1. A copy of the subcontract, joint-venture or partnership agreement between the
Contractor and the Resident Owned Business
2. Cancelled check copies (both front and back) evidencing payment to the
If the contractor chooses to provide other economic opportunities:
1. A written commitment on the Contractor’s letterhead that identifies the
specific opportunity, i.e., training that will lead to an employment opportunity
with the contractor.
Page 19 of 20
What will happen if I do not comply with the Section 3 requirement?
When the Contractor has elected to meet the Section 3 requirement through hiring and the
Section 3 resident is employed for less than the duration of the job commitment, vendors
must contribute to a fund which provides other economic opportunities in the lesser of the
1. The amount of money which the Section 3 resident would have received if
employed for the duration of the contract, or
2. 5% of the actual contract amount if a construction contract; and
3. 5% for other contracts.
When the contractor has elected to meet the Section 3 requirement through
subcontracting, the difference between what was expended and what should have been
expended is forfeited and placed into the Housing Authority’s Section 3 Education and
In addition, Section 3 Regulation sanctions may be imposed on recipients that fail to
comply with the Regulations of this part and include debarment, suspension, and limited
denial of participation in HUD programs.
Who do I contact for assistance in completing the Section 3 forms?
The Contracting Officer or the Procurement Officer which is assigned to the Request for
Proposal (RFP), Request for Qualifications (RFQ), or Invitation for Bid (IFB).
Page 20 of 20
Section 3 Business Certification
This certification must be completed by any business claiming Section 3 business status.
As a Section 3 business, your firm must retain documentation of your Section 3 status in
a project file for each HHA awarded project. The Houston Housing Authority considers
this form adequate documentation of Section 3 status; however additional
documentation verifying Section 3 compliance may be requested by the Authority at a
HHA projects funded with HUD dollars are “Section 3 covered projects” and contractors
are required to report compliance with the Section 3 guidelines. However if the
contractor has tried to the greatest extent feasible to hire Section 3 Residents or
subcontract with Section 3 vendors but has been unsuccessful in meeting the Section 3
employment/contracting requirements, that contractor must contribute at least 5% of the
actual contract amount to HHA’s education and training fund to be considered Section 3
In addition, Section 3 regulation sanctions may be imposed on recipients that fail to
comply with the regulations of this part and include debarment, suspension, and limited
denial of participation in HUD programs
This form is a tool to determine and document the Section 3 business status.
Documentation of the status of Section 3 Businesses should be retained in the project
Business being certified
Project Name: ___________________________________________________
Project Address: _________________________________________________
Section 3 determination
Is your business owned (51% or more) by individuals whose household incomes are NO
GREATER THAN 80% of Area Median Income (AMI)? Please reference
http://www.houstontx.gov/housing/sec3.html to determine if employee is less than 80%
of the current area median income.
( ) Yes ( ) No
• Do 30% (or more) of your full time, permanent employees have household
incomes that are NO GREATER THAN 80% of Area Median Income (AMI), or
within three years of the date of first employment with the business concern were
Section 3 residents?
( ) Yes ( ) No
• Will you subcontract more than 25% of this contract with a qualified business
that is either 51% owned by Section 3 residents or 30% or more of its employees
are Section 3 residents?
( ) Yes ( ) No
If any of the questions above are marked “yes”, the business qualifies as a Section 3
I certify that the above statements are true, complete, and correct to the best of my
knowledge and belief.
Print Name: ____________________________________ Date: _______________
Subscribed and sworn before me this ______ day of _____________, ______________
Date: ________________ Notary Public: ___________________________
My Commission Expires: __________________
Section 3 Resident Employment Plan
Section 3 of the Housing and Urban Development Act of 1968 (hereinafter "Section 3") requires the Houston
Housing Authority (“the Authority”) to the greatest extent feasible to provide employment opportunities to
"Section 3 residents." Section 3 Residents include residents of the Authority’s communities and other low
income residents of the city of Houston. Each bidder is required to submit with their bid package a plan which
will result in the hiring of Section 3 residents to perform the work contemplated by the bid. HUD has
established an annual goal of 10% of all new hires by the Authority’s Contractors. The Authority’s residents,
preferably residents of the Authority’s community in which the work is to be done, are favored over other low-
income residents of the city of Houston. At a minimum, the Contractor and its subcontractors shall advertise
new positions created in order to perform the work called for herein and will post notices of the Contractor’s
commitments under Section 3 in conspicuous places at the work site. In addition, the Contractor must notify
each labor organization with whom it or its subcontractors have a collective bargaining agreement or other
understanding of these Section 3 commitments. In order to fulfill its Section 3 obligations the Contractor may
work with service providers on site at various Authority’s communities. The plan should specify the number
of positions the Contractor expects will be created and what minimum qualifications and skills will be
required in order to perform the positions. The plan should also address the Contractor's strategy for recruiting
the Authority’s residents for the available positions.
Signature: Date Signed:
Address: Telephone Number:
1. How many new positions do you expect this contract will require you to create?
2. Describe each position and provide the name and provide the location of the person(s) taking
applications for each such position.
3. What minimum skills will be required for each position?
4. Please describe any training opportunities which the contract may create and any agreements
concerning training you have.
5. How will you advertise these positions to the Authority’s residents?
If you have any questions about this form, please call
Ann Simotas, Purchasing Officer, at (713) 260-0554
Houston Housing Authority
Minimum wages to be paid to all employees of any contractor or subcontractor are defined in
Wage Determinations issued by the Labor Relations Office of the U.S. Department of Housing
and Urban Development. The Wage Decision to be used in the preparation of this bid is Wage
Decision No. TX100121, Modification Number 9, dated 04/01/2011, as contained herein on the
Wage Determination 00830-1
DAVIS BACON WAGE DETERMINATION
General Decision Number: TX100121 04/01/2011 TX121
Superseded General Decision Number: TX20080121
Construction Type: Building
County: Harris County in Texas.
BUILDING CONSTRUCTION PROJECTS (does not include single family
homes or apartments up to and including 4 stories). (Use
current highway general wage determination for Paving &
Utilities incidental to Building Construction for Harris County
Modification Number Publication Date
(Including application of all
coatings and finishing to all
type of mechanical systems)......$ 20.63 8.30
BOILERMAKER......................$ 25.95 16.88
Acoustical Ceiling Work).........$ 21.00 6.43
Page 1 of 5
Pulling Wire and Low Voltage
Wiring and Installation of
Fire Alarms, Security
Systems, Telephones, and
Computers.)......................$ 26.65 7.67
ELEVATOR MECHANIC................$ 34.955 20.235
FOOTNOTES: a.- Employer contributes 8% of basic hourly rate
for over 5 years' service and 6% of basic hourly rate for 6
months to 5 years' service as Vacation Pay Credit. Paid
Holidays: New Year's Day; Memorial Day; Independence Day;
Labor Day; Thanksgiving Day; Friday after Thanksgiving Day;
Christmas Day; and Veterans Day.
PLASTERER........................$ 19.42 1.00
Plumbers (Excluding HVAC Pipe)...$ 28.79 9.40
Pipefitters (HVAC Pipe Only).....$ 28.42 9.97
* SFTX0669-001 04/01/2011
SPRINKLER FITTER (Fire
Sprinklers)......................$ 25.40 16.00
Sheet metal worker (Including
HVAC Duct and System
Installation)....................$ 25.37 9.96
Page 2 of 5
Asbestos Abatement Worker
(Ceilings, Floors, & Walls
Only)............................$ 14.00 0.00
BRICKLAYER.......................$ 18.00 0.00
CEMENT MASON/CONCRETE FINISHER...$ 12.83 0.00
DRYWALL FINISHER/TAPER...........$ 12.13 1.01
DRYWALL HANGER, Includes
Metal Stud Installation..........$ 12.96 1.59
Formbuilder/Formsetter...........$ 11.82 0.00
GLAZIER..........................$ 14.92 2.78
INSULATOR -BATT AND FOAM.........$ 10.00 0.00
Reinforcing.................$ 12.06 0.00
Structural..................$ 15.68 0.00
Common......................$ 9.29 0.00
Mason Tender Brick..........$ 10.13 0.00
Mason Tender Cement.........$ 9.86 0.00
Pipelayer...................$ 12.35 0.00
Plaster Tender..............$ 12.90 2.51
LATHER...........................$ 16.90 3.61
Painter (Brush, Roller, and
Spray)...........................$ 11.17 0.00
Pipefitters (Excluding HVAC
Pipe)............................$ 19.20 8.23
POWER EQUIPMENT OPERATOR:
Asphalt Paver...............$ 13.50 0.25
Backhoe.....................$ 12.54 0.00
Crane.......................$ 17.95 3.56
Forklift....................$ 15.46 5.15
Slab & Wall Saw.............$ 15.54 3.83
ROOFER...........................$ 11.51 0.57
TILE FINISHER....................$ 12.00 0.43
TILE SETTER......................$ 15.70 1.09
TRUCK DRIVER.....................$ 10.78 1.57
Page 3 of 5
WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
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 (29 CFR 5.5(a)(1)(ii)).
In the listing above, the "SU" designation means that rates
listed under the
identifier do not reflect collectively bargained wage and
rates. Other designations indicate unions whose rates have
to be prevailing.
WAGE DETERMINATION APPEALS PROCESS
1.) Has there been an initial decision in the matter? This can
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on
* a conformance (additional classification and rate) ruling
On survey related matters, initial contact, including requests
of surveys, should be with the Wage and Hour Regional Office
for the area in
which the survey was conducted because those Regional Offices
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
described here, initial contact should be with the Branch of
Wage Determinations. Write to:
Branch of Construction Wage Determinations
Page 4 of 5
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
(those affected by the action) can request review and
the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR
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
party's position and by any information (wage payment data,
description, area practice material, etc.) that the requestor
relevant to the issue.
3.) If the decision of the Administrator is not favorable, an
party may appeal directly to the Administrative Review Board
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
Page 5 of 5
GENERAL SCOPE OF WORK
1. Remove and haul away existing base and wall mounted cabinets, countertops, and linen
closets, Remove all appliances (refrigerators, ranges, vent hoods), kitchen sinks and
faucets, and hand these over to the Property Management at the storage area in the first
floor. The work is to be carried out in 195 units.
2. Provide and install new base and wall-mounted cabinets, countertops, linen closets, all
appliances, kitchen sinks and faucets, in 195 units.
3. Replace the damaged sheetrock behind the cabinets and linen closets, tape, float and
4. The light fixture under the cabinet at the kitchen sink and the light switch on the kitchen
pantry is to be removed and re-installed. Include all associated work.
5. Replace all plumbing pipes at the kitchen sink and faucet.
6. Asbestos abatement and legal disposal of contaminants to designated areas.
7. Provide and install 10,000 s. f. of new vinyl tile flooring on existing vinyl tile flooring in
about 25 units.
8. Remove and haul away existing, and provide new vanity with cultured marble countertop
as existing in Manager’s unit.
9. Move the furniture in the units as required for carrying out the work. Restore all areas
damaged or disturbed during the work.
10. The work is to be carried out with the units occupied. Restore the kitchen in a day.
11. Obtain and pay for all necessary permits and inspections.