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2014 Recipients Workshop. September, 2014. The CDBG Program and its successful completion. Congratulations,. You’ve won a Grant – Now What? Topics we’ll discuss today: Key Players and their roles. Minimum Property Standards and Building Codes. Housing Inspections. - PowerPoint PPT Presentation
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2014 Recipients Workshop
The CDBG Program and its successful completion
September, 2014
Congratulations,
September 2014
You’ve won a Grant – Now What?
Topics we’ll discuss today: Key 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.
The Players and their roles
September 2014
The Program Director Develop and administer the program. Supervise a competent and efficient staff. Effectively communicate with elected
officials, program participants, 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.
The Players and their roles
September 2014
The Rehabilitation Advisor Construction and construction costing
experience is a MUST. Proficient in inspection procedures. Develop clear and coherent work write-ups,
specifications, and cost estimates. Knowledgeable of Lead Based Paint regulations. Communicate with all levels of the community –
especially contractors. 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
September 2014
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.
The Players and their roles
September 2014
The General Contractor This person can help your program receive
national recognition or put you in jail. 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.
MORE ON THIS PERSON LATER.
Minimum Property Standards and Building Codes
September 2014
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
September 2014
Minimum Property Standards (MPS) –Defined.
A set of standards, created or adopted by the local governing body, that sets forth minimal conditions specific to property, structures, or environs within the community and describe what is “descent, safe, and sanitary”.
Minimum Property Standards and Building Codes
September 2014
Minimum Property Standards may also: function as a base line of materials
used, material properties, structural design, etc.
may exceed Georgia building codes but may not hold a lower standard.
Minimum Property Standards and Building Codes
September 2014
Minimum Property Standards may define: 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.
May be associated with certain zoning regulations.
Minimum Property Standards and Building Codes
September 2014
Minimum Property Standards
Sample MPS may be obtained from a variety of sources including some off-the-shelf software programs.
You may develop you own MPS, however, make sure that they do not compromise other related standards or Georgia codes.
Minimum Property Standards and Building Codes
September 2014
Minimum Property StandardsIn 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
September 2014
Preliminary worko Have a working knowledge of Ga. Building Codes
and local MPS.o Do a walk around to get the feeling of the
structure.o Take lots of photographs of interior rooms – with
notations.o Take photographs of all four exterior elevations.o 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 CAD drawing of the structure, or do a good quality scaled pencil drawing.
Housing Inspections
September 2014
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 don’t intend to inspect.
Housing Inspections
September 2014
Lead Based Paint (LPB)o Consult a certified Lead Based Paint Assessor
prior to any rehab if:o The structure was built before 1978.o 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 are in residence.
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
September 2014
Who performs a general home inspection?o Your Rehab Advisor.o City or county building inspector.o Experienced builder or general
contractor – Can not bid on work!o Pro Bono engineer or architecto A Certified Home Inspector.
Housing Inspections
September 2014
What is inspected?o Basically … everything.o Health and safety issues should take first
priority.o ADA issues.o Code and MPS violations.o Structural issues.o Incipient problems.o Site and topographical issues.o General Property Improvements (GPI)
under certain conditions.
Work Write–ups, Cost Estimates, and Scopes of Work
September 2014
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 – compare this to a “Scope of Work”.
o A WWU should be created by your Rehab Advisor or a qualified inspector.
Work Write–ups, Cost Estimates, and Scopes of Work
September 2014
A WWU should accurately describe:o Each task to be done.o 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 format.
o List and number each item separately.
Work Write–ups, Cost Estimates, and Scopes of Work
September 2014
Cost Estimateso A Cost Estimate is a document that tells
the Rehab Advisor the approximate cost of each item on 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 it happens!
o Cost Estimates should never be shown to anyone (except staff) even after job completion.
Work Write–ups, Cost Estimates, and Scopes of Work
September 2014
Scope of Work – the Contractor’s list of tasks to be completed.
o The Scope of Work is basically the same as the Work Write-up and contains the same information without to unit cost.
o It’s a good practice to have the home owner sign and date the bottom of each page of the Scope of Work.
Specifications
September 2014
A Specification describes precisely the attributes of any particular component of a task. (Example: a kitchen countertop)
o Specific material: Formica, cultured marble, Corian.
o Color.o Texture.o Style: Drop-in sink, formed sink.o Precise Dimensions.o Other relevant information.
Specifications
September 2014
o The home owner should have input in the Specification – use caution here!
o Specific brand names and model numbers.o It’s advisable to have the home owner sign or
initial any sample:o Color chip.o Carpet or vinyl flooring.o Counter top sample.o Roof shingles.
Lack of attribute specifications is the major cause of contractual disputes.
Bidding and Procurement
September 2014
Finding Contractorso Advertise your program in local papers.o Post ads at locations frequented by
contractors.Home Depot, Lowes, etc.Building materials supply houses.
City or county building permits offices.Other local communities using grant
monies.o Create a list of pre-screened contractors
and share with other agencies.o Publish “Invitation to Bid” in news papers.
Bidding and Procurement
September 2014
Contractors: Evaluate this person as if he was going to marry your daughter!
o Review data on Principle owner.o Review financial references.o Ensure proof of insurance.o Obtain Tax ID number.o Research other business names. Principle owner
may have owned.o HUD debarment list…. Mandatory.o Obtain past customer list – select some and call.
MUST HAVE CURRENT STATE LICENSE!
Bidding and Procurement
September 2014
Bidding ProcessTwo options given to home owner as to which type of bidding process they prefer “Open, Free, and Competitive” bid process. “Negotiated” bid process.
Form 20-A, 20-B, or 20-C should be completed and signed depending upon owners choice of “Open, Free, and Competitive” or “Negotiated” option and whether rehab or reconstruction
Bidding and Procurement
September 2014
“Open, Free, and Competitive”
Prepare a “Bid Package” to include:o A “Contractors Bid Packet” (See Form 6).o Address of property and Owners name.o “General Conditions” and “Special Conditions” (See
Exhibit “F2a” & “F2b”).o “Bid and Proposal Form” (Exhibit “F2d”).o Complete Scope of Work.o Scale drawings (Exhibit “F2f”).o Date, time, and location of bid opening if appropriate.o Terms and Conditions of Rehabilitation Assistance.o Draw Schedule.
Bidding and Procurement
September 2014
“Open, Free, and Competitive”o Bid Package should preferably be picked-up at
program office.o Log of contractors showing date and time of receipt.o Consider on-site meeting to answer questions.o Do not alter “Scope of Work” at this point. Changes
will handled with a Change Order later.o If you have post meeting questions, inform all
bidders.
Seek out as many contractors as possible.
Ask those choosing not to bid to provide your office a short note on letter head stating “NO BID” on so-and-so contract.
Bidding and Procurement
September 2014
“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 negotiated to within that amount.
ORo Home owner agrees to pay the amount over the
10% limit.o Failing to meet these requirements, project must
be re-bid.
Bidding and Procurement
September 2014
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 Procurement
September 2014
Opening the Bids:o Establish date and time of opening.o Invite home owner, responding contractors or
other interested parties should be welcome.o Ensure one witnessing staff member is present.o Do not award bid at contract opening!o You do not have to accept the lowest bid.o Be aware of “Low Ball” bids.o Home owner should make final decision.o Bids in excess of 10% above or below cost
estimate should be discarded.o Any bid in excess of 20% above cost estimate
must have DCA approval prior to contract award.
Bidding and Procurement
September 2014
One last thing about bids.
Don’t even think about revising cost estimates to match received bids.
Awarding the Contract
September 2014
The 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.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 contract.o 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 Contract
September 2014
The Contract:
o Federal Contractual Requirements:Contractor should provide certification that he/she will abide by all the regulations and provisions as set forth in:
o The Davis/Bacon Act.o The Contract Work Hours and Safety
Standards Act.o The Copeland Anti-Kickback Act.o The Health and Safety Act.
o ;
Contract Oversight
September 2014
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 “Scope of Work” without a Change Order.
Grievance and Arbitration
September 2014
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 ALREADY IN TROUBLE!
Monitoring for compliance
September 2014
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.
Notice
September 2014
There is a revision to the Financial Plan (Exhibit H) that now requires the address of the participant along with the Unit Number and Owner’s Name. The new format is to be found in the Rehab and the Recipients’ Manuals. When applying for a Grant Modification, please use these new forms.
Grant Modifications
September 2014
A Grant Modification will be required when seeking:1. Grant Adjustment Request.2. Modification of Scope.3. Rehabilitation to Reconstruction.4. Addition and/or substitution of a unit.5. Expansion or modification of Target
Area.
Speaking of Grants Modifications . . .
September 2014
When seeking a Grant Modification, you must now provide a full synopsis of the current status of the entire grant including: • a unit by unit status (complete, in
progress, drop out, over income, ineligible, etc.).
• if Multi-activity, please provide a current status of all other activities.
Grant Modifications
September 2014
If changing a unit from Rehab to Recon . . .
ORadding a new Rehab or Recon not previously identified as a target unit, you must:• Submit a “Rehab Feasibility Test Form”.
• Photographs with narratives.• Final Cost Estimates.• Seek a “Grant Modification” as noted above.
Policies and Procedures
September 2014
Prior to beginning any Housing activity, DCA will now require each grant recipient to submit a final version of their Policies and Procedures Statement to DCA for review and approval.
NO DRAWS WILL BE MADE UNTIL APPROVAL IS RECEIVED.
Illegal Immigration Reform and Enforcement Act of 2011
September 2014
You are Required to obtain proof of lawful presence. See “Exhibit L”
Accepted forms of documentation are indicated.
Must be obtained prior to determination of program eligibility.
MUST be incorporated into grantees “Policies and Procedures”
Illegal Immigration Reform and Enforcement Act of 2011
September 2014
Construction Contractors who are under contract WITH THE LOCAL GOVERNMENTAS A DIRECT PARTY TO THE CONTRACT must participate in the E-Verify system to document the Lawful Presence of all employees of the company AND subcontractors.
This usually will only apply to public works projects.
September 2014
Under O.C.G.A 50-36-1, The Illegal Immigration Reform and Enforcement Act of 2011, (including House Bill 2 and House Bill 87) you are required to obtain proof of lawful presence in order to obtain a “Public Benefit” as defined in this law. This includes (but is not limited to )types of housing and housing related assistance. The appropriate form may be found in Exhibit L (page 156), the accepted forms of documentation immediately follow. This Affidavit must be obtained prior to determination of program eligibility and all documentation (the completed form and supporting documentation) must be located in the participants file. This agreement and understanding MUST be incorporated into the Policies and Procedures of the award grantee.
Notices
September 2014
Monitoring: Emphasis on File Organization. All appropriate Signatures. Quality of Work Write-Ups especially
“Specifications”. Necessity of “Change Orders”. Progress performance.
