CAPITAL FUND UNDER THE
MICROSCOPE
2015 PAHRA ANNUAL CONFERENCE
SEPTEMBER 17, 2015
KING OF PRUSSIA, PA
Session Agenda
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Areas to address during session (From HUD Engineer’s Perspective)
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Performance and progress timeline
Quality of work
Safety
Follow-Up
Contract administration
Davis-Bacon compliance
Section 3 requirements
Energy Performance Information Center (EPIC) Reporting
On-Site Work Review – Project
Controls & Contract Administration
Performance & progress timeline
• Has construction started on the Grant?
• Is the contractor on schedule?
– If not, why?
• Time extensions via change orders needed to approve this change in time.
• PHA should have an updated progress schedule
• What is the actual % of construction work completed vs. scheduled?
QUALITY OF WORK
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What HUD is looking for during the
review?
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Overall quality of construction
Conforming with approved plans,
specifications, and change orders
Compliance with HUD Modernization and
energy conservation standards
Site appearance: proper protection and
storing of materials and equipment
Section 504 compliance of units, common
areas, and site work, UFAS
• Very sensitive and hot issue for
reviewers
SAFETY ISSUES
• Lead Based Paint Requirements
– Applications, worker protection,
cleanup & disposal, etc.
• Asbestos Abatement Requirements
– Applications, worker protection,
cleanup & disposal, etc.
• Site Safety Hazards and Deficiencies
– Hardhats, Scaffolding, Other
General Hazards
Follow-Up from HUD Office
• Corrections of any previously reported deficiencies
and observations
• Addressing of the latest REAC Capital Systemic
Deficiencies
• Other modernization needs within the project site
CONTRACT ADMINISTRATION
• Ensure the contractor/HA
– Has filed for bonds, insurance certificates, notice to proceed, and all
applicable permits
– Will submit the progress schedules in accordance with the contract
documents.
– Administers adequate and timely processing of submittals and shop drawings.
– Follows a proper HA management and maintenance of plan, “as-built”
drawings, specs, change orders, shop drawings, pay estimates, etc.
– Utilizes proper testing of materials, equipment, and supplies to ensure work
quality is consistent with contract documents, performed in a timely manner,
documented, and updated
Contract Administration - continued
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HA/AE preparation of daily construction report/log for documenting progress,
deficiencies, corrective actions, change orders, etc.
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PHA and A/E inspection of work, e.g., frequency, who performs inspections, etc.
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Required A/E inspection field report in accordance with contract (HUD-51915)
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PHA review, approval, and making progress payments.
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Proper PHFA withholding of retainage from the contractor’s progress payments in
accordance with contract documents
Contract Administration – continued
• PHA makes final payment only after all work has been
satisfactorily completed, including punch list items, and all
guarantees and releases have been obtained from the
contractor.
• Overall assessment of PHFA project control, i.e., in taking
sufficient measures to ensure quality, work progress, and time
and sufficient correction of work defects/deficiencies
DAVIS-BACON COMPLIANCE
• Contractor must submit certified payrolls to the PHA
– Post appropriate wage determination at job site
– Poster with contact information
• Employees must be paid in accordance with general
conditions and Davis-Bacon Wage Decision
• PHA performance of random wage interviews to
ensure Davis-Bacon Compliance, complete HUD-11s
• Timely discovery, correction, and follow-up of any
payroll/wage discrepancies.
– Track restitution and violations of Contract Work Hours and Safety Standards
Act (CWHSSA)
DAVIS-BACON COMPLIANCE
Apprentices
• Verify the program is approved by registration with the Dept.
of Labor or a State Apprenticeship Agency approved by the
Bureau (keep documentation on file)
• Apprentice agreement must be on file to verify percentage of
wage for employee
• Should be paid fringe benefits in accordance with the
provisions of the approved program. If silent, full benefits
should be paid
• Verify Journeyman/Apprentice ratios in accordance with the
provisions of approved program
Trainees
• Except as provided in 29 CFR 5.16, trainees will not be permitted to work
at less than the predetermined rate for the work performed unless they
are employed pursuant to and individually registered in the program
which has received prior approval, evidenced by formal certification by
the U.S. Department of Labor, Employment and Training Administration.
• Wage rate as per Agreement in approved program
• Fringe as per Agreement or full amount if silent
Section 3 – 24 CFR Part 135
• HUD proposed new rule for amending Section 3 of
the Housing and Urban Development Act of 1968
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Establish clearer guidelines for achieving compliance “to the greatest extent feasible”
Requires “New Hires” to work a minimum percentage of hours
Revises the definition of a “Section 3 Business”
Sets a new funding threshold for non-PHA grantees
Removes the 3% minimum numerical goal for non-construction contracts
Requires PHAs and other grantees to monitor contractor payroll data
Mandates reference to the Section 3 requirements in Project Labor Agreements
Incentivizes job retention and the provision of apprenticeship
Allows grantees to accept self-certifications or presume eligibility
Imposes penalties for failures to submit Section 3 Annual reports
Imposes program sanctions on PHAs and grantees that fail to comply
Stipulates that relief may possibly be provided to aggrieved entities
EPIC Reporting
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Offshoot of the Recovery Act Management and Performance
System (RAMPS)
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Started in Spring 2012
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Report on Core Activity of Capital Fund and Energy Module
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PIH is working to enhance the system and business process
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Consultation with Field Offices and PHAs
EPIC Reporting
• Functionally Today:
– Activity Planning Module: 5 Year Action Plan – Annual
Statement/Budget (also maybe P&E Report)
– Public Housing Development Module
– EPC Module
– PNA Module
EPIC Reporting
• Advantages of Activity Planning Module in EPIC
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Automates currently de-facto paper process
Simplifies the BLI structure in LOCCS
EPIC Data uploads LOCCS BLIs automatically
Approvals/review minimized
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FO Approves 5 Year Action Plan
No review required on all approved 5 Year Action Plan items, PHA can revise amounts without further review
PHA can funge without further review
PHAs will be able to seamlessly integrate submitted PNA data into 5 Year Action Plan
Track status of plan approval
Record communications related to plan approval (via comment feature)
Possible tracking of Environmental Review in EPIC
Questions?