2010 CDBG Recipients’ Workshop 2010 Recipients’ Workshop The CDBG Program and successful completion

2010 CDBG Recipients’ Workshop

2010 Recipients’ Workshop

The CDBG Program and successful

completion

Page 22010 CDBG Recipients’ Workshop September 30, 2010

Congratulations!• You’ve won the Grant – Now What?• Topics we’ll discuss today:

• The Players and their roles• Minimum Property Standards and Building

Codes• Housing Inspections• Work Write-ups, Cost Estimates, Scope of

Work• Bidding Procedures• Elements of a Construction Contract.• Oversight of the work• Close out


The Players and their roles • The Program Director

• Develop and administer the program• Hire and supervise competent and

efficient staff• Effectively communicate with elected

officials, ultimate program recipients, and contractors

• Address local groups and gatherings• Ensure all reports, documents, and

paperwork are submitted on time• May or may not be an employee of the

local governing body – may be a contracted program administrator


The Players and their roles • The Financial Advisor

• Must be experienced and knowledgeable of mortgage services and financial counseling resources

• Communicate with all levels of the community

• Must be computer and software literate

• Real Estate experience is an advantage


The Players and their roles • The Rehabilitation Advisor

• Construction and construction costing experience is a MUST

• Proficient in inspection procedures• Develop clear and coherent work write-ups

and cost estimates.• Develop clear and precise specifications• Knowledgeable of Lead Based Paint

regulations• Communicate with all levels of the community

– especially contractors• Respect for the ultimate recipient• Possess a pleasant and outgoing personality –

or at least be able to give that impression for a couple of hours at a time


The Players and their roles • The Administrative Assistant

• The heart of the program: interview and hire accordingly

• He/she must be cognizant of the importance of accurate and timely form and paperwork submission

• Possess a true pleasant and patient attitude – and the ability to maintain if for longer than two hours at a time

• Must be able to establish and maintain a quality filing system

• Be computer and software proficient• Respect for the ultimate recipient


The Players and their roles • The Appraiser

• The appraiser is not usually a fulltime employee but rather a competent resource

• He/she should be well experienced and well respected in the local community

• He/she should be certified by the Ga. Real Estate Appraisers Board

• Be fully aware of your program goals and objectives


The Players and their roles • The Attorney

• Again the attorney is not usually a fulltime employee but rather a competent resource

• He/she should be familiar, experienced and competent in Real Estate, Wills and Trusts, title searches, and Contract laws

• He/she must be a current member of the Ga. Bar and in good standing

• Be fully aware of your program goals and objectives

• Must be acutely aware of deadlines and the need for timely document submittal


The Players and their roles • The General Contractor

• This person can make your program receive national recognition or cause harm. They can be the best or the worst part of your program

• He/she should be a respected member of the community with a good reputation

• Construction experience and especially with rehab projects is essential

• Due diligence is highly recommended


The Players and their roles

• Is there any one most important person within your staff?


Minimum Property Standards and Building Codes

• Georgia Building Codes The State of Georgia currently follows the

International Residential Code for One and Two Family Dwellings, 2006 edition with Georgia Amendments

This is sometimes referred to as 2006 CABO One and Two Family Dwelling Code


Minimum Property Standards and Building Codes •Minimum Property Standards •Minimum Property Standards (MPS) are local community standards and define what is “descent, safe, and sanitary”

MPS function as a base line of materials used, material properties, structural design, etc.

MPS may exceed Georgia building codes but may not hold a lower standard.



• Minimum Property Standards (continued)

MPS may spell out exactly: What materials may and/or may not be

used The properties of the material (e.g.

grade of lumber, PSI rating of concrete, durability of roof shingles, etc.)

How the materials will be installed, used, or applied

MPS may be associated with certain zoning regulations




Sample MPS may be obtained from a variety of sources including some off-the-shelf software programs

MPS and Attribute Standards are not the same, we’ll discuss these later

You may develop you own MPS, however, make sure that they do not compromise other related standards or Georgia codes




In the absence of a local MPS, you may opt to adopt one of the following model codes:

Uniform Building Code (ICBO) National Building Code (BOCA) Standard Southern Building Code

(SBCCI) FHA Minimum Property Standards


Housing Inspections • Preliminary work

o Have a working knowledge of Ga. Building Codes and local MPS

o Do a walk around to get the feeling of the structureo Take lots of photographs of interior roomso Take photographs of all four exterior elevationso Depending upon extent of work required, a floor

plan is a good idea. Take accurate interior and exterior measurements

o If you have the capability, do an AutoCAD drawing of the structure, or do a good quality scaled pencil drawing


Housing Inspections • Preliminary work (continued)

o Make copious notes, memory joggers, dimensions, and material attributes (e.g. color. material, texture, etc.). You’ll need them later – guaranteed!

o Prepare a tool box of tools you’ll likely need: flashlight, good screwdriver set, pliers, pocket knife, probing tools, measuring tape, and writing pad

o Treat the owner with utmost respect. Respect the furnishings and décor

o Don’t touch anything you’re not going to inspect


Housing Inspections • Lead Based Paint (LPB)

o Consult a certified Lead Based Paint Assessor prior to any rehab if:

o The structure was built before 1978o If you suspect the presence of LPB (e.g.

antique doors in newer homes)o If the age of the home cannot be precisely

determined and children under 6 or pregnant/fecund females reside

o If the age of the home cannot be precisely determined and there is an reasonable expectation of such residents in the future


Housing Inspections • Who performs a general home

inspection?

o Your Rehab Advisoro City or county building inspectoro Experienced builder or general

contractoro Pro Bono engineer or architecto A Certified Home Inspector


Housing Inspections

• What is inspected?o Basically … everythingo Health and safety issues should take first

priorityo ADA issueso Code and MPS violationso Structural issueso Incipient problemso Site and topographical issueso General Property Improvements (GPI) under

certain conditions


Work Write–ups, Cost Estimates, and Scopes of Work

• What is a Work Write-up?o A Work Write-up (WWU) is a

document that provides the home owner and Program Director a complete description of what work will be required

o A WWU should be created by your Rehab Advisor or a qualified inspector


Work Write –ups, Cost Estimates, and Scopes of Work

• What is a Work Write-up? (continued)o A WWU should accurately describe:

o Each task to be doneo Location of each task (e.g. inside closet

door, bedroom #2, toilet in bathroom #1)o An estimate of area involved (e.g. square

yards, linear feet, squares, etc.)o A WWU should be typed in a good, clear,

easy to understand formato List and number each item separately



Cost Estimateso A Cost Estimate is a document that tells the

rehab Advisor the approximate cost of each project

o A good deal of experience is required to develop a good cost estimate

o Don’t let a potential contractor do the Cost Estimate DUH…. but it happens!

o Cost Estimates should never be shown to anyone (except staff) even after job completion



Scope of Worko The Scope of Work is basically the

same as the Work Write-up and contains the same information

o It’s a good practice to have the home owner sign and date the bottom of each page of the Scope of Work.


SpecificationsAn Specification describes precisely the attributes of any particular component of a task (Example: a kitchen countertop)

o Specific material: Formica, cultured marble, Corian

o Coloro Textureo Style: Drop-in sink, formed sinko Dimensionso Other relevant information


Specificationso The Specification should have significant

input from the home ownero Specific brand names and model numberso It’s advisable to have the home owner sign

or initial any sampleo Color chipo Carpet or vinyl flooringo Counter top sampleo Roof shingles

o Lack of attribute specifications is the major cause of contractual disputes


Bidding and ProcurementBidding Procedures

Finding Contractors

o Advertise your program in local paperso Post ads at locations frequented by contractors

o Home Depot, Lowes, etc.o Building materials supply houses

o City or county building permits officeso Other local communities using grant monies

o Create a list of pre-screened contractors and share with other agencieso Publish “Invitation to Bid” in news papers


Bidding and ProcurementBidding Procedures

Finding Contractors (continued)o Interview potential contractors

o Data on Principle ownero Financial referenceso Proof of insuranceo Tax ID numbero Other business names Principle owner

may have workedo HUD debarment listo Customer listo How long in businesso MUST HAVE CURRENT STATE LICENSE


Bidding and Procurement

Bidding ProcessTwo options given to home owner as to which type of bidding process they prefer

o “Open, Free, and Competitive” bid process

o “Negotiated” bid process

o Form 20-A, 20-B, or 20-C should be completed and signed depending upon owners choice of “Open, Free, Competitive” or “Negotiated” option and whether rehab or reconstruction


Bidding and ProcurementBidding Process (continued)“Open, Free, and Competitive”

Prepare a “Bid Package” to include:o A “Contractors Bid Packet” (See Form 6)o Address of property and Owners nameo “General Conditions” and “Special Conditions”

(See Exhibit “F2a” & “F2b”)o “Bid and Proposal Form” (Exhibit “F2d”)o Complete Scope of Worko Scale drawings (Exhibit “F2f”)o Date, time, and location of bid openingo Terms and Conditions of Rehabilitation

Assistanceo Draw Schedule


Bidding and ProcurementBidding Process (continued) “Open, Free, and Competitive” (continued)

o Bid Package should preferably be picked-up at program office

o Log of contractors showing date and time of receipt

o “Pre-Bid” on-site meetingo Do not alter “Work Write up” at this point.

Changes will handled with a Change Order latero Post meeting questions, inform all bidders

Seek out as many contractors as possibleAsk those choosing not to bid to provide your office a short note on letter head stating “NO BID” on so-and-so contract



Bidding Process (continued) “Negotiated”

o Home owner may select contractor of their choice so long as contractor meets all program eligibility requirements

o Negotiated contractors bid must be within 10% of cost estimate or be negotiate to within that amount

ORo Home owner agrees to pay the amount over the

10% limito Failing to meet these requirements, project must

bere-bid


Bidding and ProcurementBidding Process (continued) Receiving the Bids:

o NEVER OPEN A BID ENVELOPE BEFORE BID OPENING DATE AND TIME!

o Upon receiving the bid response, make certain the envelope is sealed

o If not sealed, initial across the envelope flap and tape over the initials with clear tape while in view of contractor or other witness

o Ensure contractors name, project address, and bid opening date and time are noted on the outside

o Write or stamp date and exact time of receipt and sign receivers name

o Enter received bid into contractor log


Bidding and ProcurementBidding Process (continued) Opening the Bids:

o Establish date and time of openingo Invite home owner. Responding contractors or

other interested parties should be welcomeo Ensure one witnessing staff member is present

o Do not award bid at contract openingo You do not have to accept the lowest bido Be aware of “Low Ball” bidso Home owner should make final decisiono Bids in excess of 10% above or below cost

estimate should be discardedo Any bid in excess of 20% above cost estimate

must have DCA approval prior to contract award



Bidding Process (continued)

One last thing about bids. Don’t even think about revising cost estimates to match received bids.


Awarding the ContractThe Contract:

o The “Guidelines for Residential Rehabilitation” contains a good section on the elements of a Construction Contract

o Exhibits “F1”, “F2a”, and F2b” provide an outline as well

o A “Notice to Commence” or “Notice to Proceed” must be issued prior to starting work (Form 10)

o A sample of a “General Contractor Invoice” (Form 11) more frequently called a “Request for Draw” should be included. Expect the contractor to use this format

o Include the “Draw Schedule” in the contracto Include a sample of a “Release and Waiver of Claim

for Subcontractor or Material Supplier” (Form 11). This is more commonly referred to as a “Mechanics Lien”


Awarding the ContractThe Contract:

o Federal Contractual Requirements:o Contractor should provide certification that he/she will abide by all the regulations

and provisions as set forth in:

o The Davis/Bacon Acto The Contract Work Hours and Safety Standards Acto The Copeland Anti-Kickback Acto The Health and Safety Act

o ;


Contract Oversight

Review work on a regular basis to ensure specifications are met.

Document all site visits and inspections. Ensure Safety measures have been taken. NEVER verbally agree to a Change Order. Change Orders must be signed by all parties Inspect work prior to approving a Draw Request. Never vary from the Work Write –Up without a Change Order.


Grievance and Arbitration

• Establish a clearly defined Grievance and Arbitration procedure in your Policies and Procedures Statement.

Include this Statement in the Contract between the home owner and contractor.

90% of all grievances can be resolved at this level.

IF YOU DON’T HAVE A WELL WRITTEN WORK WRITE-UP: YOU’RE IN

TROUBLE!


Monitoring for compliance

• All programs are required to be monitored.

▪ Monitoring are usually scheduled in advance but may be subject to review without notice.

▪ You are responsible for organization and maintenance of all records.

▪ A Contractual obligation between a recipient and a third party (i.e. Consultant) does not absolve the recipient of ultimate accountability for all aspects of the grant.


QUESTIONS?

• Thomas Spinks• Sr. Housing Consultant• (404) 679-3128• [email protected]

Documents

2010 CDBG Recipients’ Workshop 2010 Recipients’ Workshop The CDBG Program and successful completion