Work Write –ups, Cost Estimates, and Scopes of Work What is a

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2010 Recipients’ Workshop
The CDBG Program
and successful
completion
2010 CDBG Recipients’ Workshop
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
2010 CDBG Recipients’ Workshop
Page 2
September 30, 2010
The Players and their roles
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The Program Director
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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
2010 CDBG Recipients’ Workshop
Page 3
September 30, 2010
The Players and their roles
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The Financial Advisor
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2010 CDBG Recipients’ Workshop
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
Page 4
September 30, 2010
The Players and their roles
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The Rehabilitation Advisor
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2010 CDBG Recipients’ Workshop
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
Page 5
September 30, 2010
The Players and their roles
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The Administrative Assistant
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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
2010 CDBG Recipients’ Workshop
Page 6
September 30, 2010
The Players and their roles
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The Appraiser
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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
2010 CDBG Recipients’ Workshop
Page 7
September 30, 2010
The Players and their roles
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The Attorney
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2010 CDBG Recipients’ Workshop
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
Page 8
September 30, 2010
The Players and their roles
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The General Contractor
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2010 CDBG Recipients’ Workshop
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
Page 9
September 30, 2010
The Players and their roles
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Is there any one most important
person within your staff?
2010 CDBG Recipients’ Workshop
Page 10
September 30, 2010
Minimum Property Standards
and Building Codes
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Georgia Building Codes
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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
2010 CDBG Recipients’ Workshop
Page 11
September 30, 2010
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”
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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.
2010 CDBG Recipients’ Workshop
Page 12
September 30, 2010
Minimum Property Standards
and Building Codes
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Minimum Property Standards (continued)
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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
2010 CDBG Recipients’ Workshop
Page 13
September 30, 2010
Minimum Property Standards
and Building Codes
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Minimum Property Standards (continued)
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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
2010 CDBG Recipients’ Workshop
Page 14
September 30, 2010
Minimum Property Standards
and Building Codes
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Minimum Property Standards (continued)
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In the absence of a local MPS, you may opt to
adopt one of the following model codes:
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Uniform Building Code (ICBO)
National Building Code (BOCA)
Standard Southern Building Code (SBCCI)
FHA Minimum Property Standards
2010 CDBG Recipients’ Workshop
Page 15
September 30, 2010
Housing Inspections
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Preliminary work
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Have a working knowledge of Ga. Building Codes and
local MPS
Do a walk around to get the feeling of the structure
Take lots of photographs of interior rooms
Take photographs of all four exterior elevations
Depending upon extent of work required, a floor plan is a
good idea. Take accurate interior and exterior
measurements
If you have the capability, do an AutoCAD drawing of the
structure, or do a good quality scaled pencil drawing
2010 CDBG Recipients’ Workshop
Page 16
September 30, 2010
Housing Inspections
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Preliminary work (continued)
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Make copious notes, memory joggers, dimensions,
and material attributes (e.g. color. material, texture,
etc.). You’ll need them later – guaranteed!
Prepare a tool box of tools you’ll likely need:
flashlight, good screwdriver set, pliers, pocket knife,
probing tools, measuring tape, and writing pad
Treat the owner with utmost respect. Respect the
furnishings and décor
Don’t touch anything you’re not going to inspect
2010 CDBG Recipients’ Workshop
Page 17
September 30, 2010
Housing Inspections
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Lead Based Paint (LPB)
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Consult a certified Lead Based Paint Assessor prior
to any rehab if:
o
o
o
o
2010 CDBG Recipients’ Workshop
The structure was built before 1978
If you suspect the presence of LPB (e.g. antique
doors in newer homes)
If the age of the home cannot be precisely
determined and children under 6 or
pregnant/fecund females reside
If the age of the home cannot be precisely
determined and there is an reasonable expectation
of such residents in the future
Page 18
September 30, 2010
Housing Inspections
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Who performs a general home inspection?
o
o
o
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Your Rehab Advisor
City or county building inspector
Experienced builder or general
contractor
Pro Bono engineer or architect
A Certified Home Inspector
2010 CDBG Recipients’ Workshop
Page 19
September 30, 2010
Housing Inspections
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What is inspected?
o
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Basically … everything
Health and safety issues should take first priority
ADA issues
Code and MPS violations
Structural issues
Incipient problems
Site and topographical issues
General Property Improvements (GPI) under certain
conditions
2010 CDBG Recipients’ Workshop
Page 20
September 30, 2010
Work Write–ups, Cost Estimates,
and Scopes of Work
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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
2010 CDBG Recipients’ Workshop
Page 21
September 30, 2010
Work Write –ups, Cost Estimates,
and Scopes of Work
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What is a Work Write-up? (continued)
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A WWU should accurately describe:
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Each task to be done
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Location of each task (e.g. inside closet door,
bedroom #2, toilet in bathroom #1)
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An estimate of area involved (e.g. square
yards, linear feet, squares, etc.)
A WWU should be typed in a good, clear, easy to
understand format
List and number each item separately
2010 CDBG Recipients’ Workshop
Page 22
September 30, 2010
Work Write –ups, Cost Estimates,
and Scopes of Work
Cost Estimates
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A Cost Estimate is a document that tells the
rehab Advisor the approximate cost of each
project
A good deal of experience is required to develop
a good cost estimate
Don’t let a potential contractor do the Cost
Estimate DUH…. but it happens!
Cost Estimates should never be shown to anyone
(except staff) even after job completion
2010 CDBG Recipients’ Workshop
Page 23
September 30, 2010
Work Write –ups, Cost Estimates,
and Scopes of Work
Scope of Work
o
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The Scope of Work is basically the same
as the Work Write-up and contains the
same information
It’s a good practice to have the home
owner sign and date the bottom of each
page of the Scope of Work.
2010 CDBG Recipients’ Workshop
Page 24
September 30, 2010
Specifications
An 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 Dimensions
o Other relevant information
2010 CDBG Recipients’ Workshop
Page 25
September 30, 2010
Specifications
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The Specification should have significant input
from the home owner
Specific brand names and model numbers
It’s advisable to have the home owner sign or
initial any sample
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Color chip
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Carpet or vinyl flooring
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Counter top sample
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Roof shingles
Lack of attribute specifications is the major
cause of contractual disputes
2010 CDBG Recipients’ Workshop
Page 26
September 30, 2010
Bidding and Procurement
Bidding Procedures
Finding Contractors
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Advertise your program in local papers
Post ads at locations frequented by
contractors
o Home Depot, Lowes, etc.
o Building materials supply houses
City or county building permits offices
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o
2010 CDBG Recipients’ Workshop
o Other local communities using grant
monies
Create a list of pre-screened contractors
and share with other agencies
Publish “Invitation to Bid” in news papers
Page 27
September 30, 2010
Bidding and Procurement
Bidding Procedures
Finding Contractors (continued)
o Interview potential contractors
o Data on Principle owner
o Financial references
o Proof of insurance
o Tax ID number
o Other business names Principle owner may
have worked
o HUD debarment list
o Customer list
o How long in business
o MUST HAVE CURRENT STATE LICENSE
2010 CDBG Recipients’ Workshop
Page 28
September 30, 2010
Bidding and Procurement
Bidding Process
Two 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
2010 CDBG Recipients’ Workshop
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
Page 29
September 30, 2010
Bidding and Procurement
Bidding 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 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
o Terms and Conditions of Rehabilitation Assistance
o Draw Schedule
2010 CDBG Recipients’ Workshop
Page 30
September 30, 2010
Bidding and Procurement
Bidding 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 meeting
o Do not alter “Work Write up” at this point. Changes
will handled with a Change Order later
o 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
2010 CDBG Recipients’ Workshop
Page 31
September 30, 2010
Bidding and Procurement
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
OR
o Home owner agrees to pay the amount over the 10%
limit
o Failing to meet these requirements, project must be
re-bid
2010 CDBG Recipients’ Workshop
Page 32
September 30, 2010
Bidding and Procurement
Bidding 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
2010 CDBG Recipients’ Workshop
Page 33
September 30, 2010
Bidding and Procurement
Bidding Process (continued)
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
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o
o
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You do not have to accept the lowest bid
Be aware of “Low Ball” bids
Home owner should make final decision
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
2010 CDBG Recipients’ Workshop
Page 34
September 30, 2010
Bidding and Procurement
Bidding Process (continued)
One last thing about bids.
Don’t even think about revising cost estimates to
match received bids.
2010 CDBG Recipients’ Workshop
Page 35
September 30, 2010
Awarding the Contract
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 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 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”
2010 CDBG Recipients’ Workshop
Page 36
September 30, 2010
Awarding the Contract
The 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 Act
o The Contract Work Hours and
Safety Standards Act
o The Copeland Anti-Kickback Act
o The Health and Safety Act
2010 CDBG Recipients’ Workshop
Page 37
September 30, 2010
Contract Oversight
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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.
2010 CDBG Recipients’ Workshop
Page 38
September 30, 2010
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!
2010 CDBG Recipients’ Workshop
Page 39
September 30, 2010
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.
2010 CDBG Recipients’ Workshop
Page 40
September 30, 2010
QUESTIONS?
•
•
•
•
Thomas Spinks
Sr. Housing Consultant
(404) 679-3128
[email protected]
2010 CDBG Recipients’ Workshop
Page 41
September 30, 2010
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