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

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

•

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 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 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 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 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 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 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



• 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

• 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 o o o o o

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



• Preliminary work (continued) o o o o

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



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



• Who performs a general home inspection?

o Your Rehab Advisor o City or county building inspector o Experienced builder or general contractor o Pro Bono engineer or architect o A Certified Home Inspector



• 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

• 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 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



Cost Estimates o 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 Work

o 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.


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


Specifications o The Specification should have significant input from the home owner 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 o Lack of attribute specifications is the major cause of contractual disputes


Bidding and Procurement

Bidding Procedures

Finding Contractors o Advertise your program in local papers o Post ads at locations frequented by contractors o Home Depot, Lowes, etc. o Building materials supply houses o City or county building permits offices o 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 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



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 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 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




“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




“ 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




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




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




One last thing about bids.

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


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”


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


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

• thomas.spinks@dac.ga.gov


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

2010 Recipients’ Workshop

The CDBG Program and successful completion

Congratulations!

The Program Director

The Financial Advisor

The Rehabilitation Advisor

The Administrative Assistant

The Appraiser

The Attorney

The General Contractor

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

Georgia Building Codes

Scope of Work

Awarding the Contract

Contract Oversight

Grievance and Arbitration

Monitoring for compliance

Related documents

Products

Support

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

2010 Recipients’ Workshop

The CDBG Program and successful completion

Congratulations!

The Program Director

The Financial Advisor

The Rehabilitation Advisor

The Administrative Assistant

The Appraiser

The Attorney

The General Contractor

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

Georgia Building Codes

Scope of Work

Awarding the Contract

Contract Oversight

Grievance and Arbitration

Monitoring for compliance

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