Sec. 05.04.06.13. Contractor Requirements

A. General Requirements. A contractor and subcontractor:

(1) For lead abatement and risk reduction projects, shall have successfully completed, along with all workers in the firm, any training and accreditation course on lead abatement procedures required by MDE in accordance with COMAR 26.16.01;

(2) Shall be licensed by the Maryland Home Improvement Commission, if applicable, or otherwise meet all other State and local licensing requirements;

(3) Shall be qualified to do business in the State;

(4) Shall be able to demonstrate to the satisfaction of the Department the ability to complete the lead hazard reduction activity, including any evidence of previous professional experience;

(5) May not be suspended or debarred from the Department's programs under any action under COMAR 05.01.05;

(6) Shall agree in the contract to:

(a) Perform all work:

(i) In conformance with the contract and applicable laws, local codes, and Departmental rehabilitation standards, whether or not covered by the work write-up and drawings for the work; and

(ii) In a competent, workmanlike manner, equal to the standards of the industry;

(b) Comply with applicable laws, ordinances, and regulations relating to the protection and safety of persons or property;

(c) Furnish all labor, materials, and equipment, and obtain all licenses, permits, insurance coverage, and workers' compensation as may be required to complete the project;

(d) Not assign the contract without prior written consent of the owner and approval of the local administrator;

(e) In addition to the remedies and guarantees provided by law, and at the contractor's expense, make all necessary repairs, replacements, and corrections of any nature or description, interior or exterior, structural or nonstructural, as shall become necessary by reason of faulty workmanship or material, which appear within:

(i) 1 year from the date the notice of completion is filed;

(ii) A longer period if a longer guarantee period is specified for particular materials or workmanship under the plans and specifications; or

(iii) A longer period, if Maryland law so provides;

(f) Complete all specifications of the proposal within the completion date, as specified in the contract;

(7) Shall indemnify and hold the Department harmless from all liability and loss because of injury to or death of a person or damage to property which may occur or be alleged to occur during performance of the contract as a direct or indirect result of any act or omission, whether intentional, negligent, or otherwise, by the contractor, subcontractors, or their agents, servants, and employees, and defend all suits or claims involving these at the contractor's or subcontractor's sole cost and expense.

B. Minority Contractors.

(1) The Department encourages the use of minority contractors for all projects in all jurisdictions, and requires compliance with the Department's Minority Business Participation Plan for all projects with rehabilitation contract costs of $250,000 or more.

(2) Copies of the Department's plan shall be made available to sponsors and contractors.

C. Identity of Interest.

(1) An owner-landlord may act as general contractor only with the prior written approval of the Department or local administrator. An application form shall be provided upon request and shall be submitted and approved before submission of the proposal. Approval shall be conditioned on an assurance of completion acceptable to the Department.

(2) An owner-occupant may not act as general contractor.

D. Assurance of Completion. For a loan or grant or combination loan and grant that finances lead hazard reduction costs in excess of $50,000, either the Department or the local administrator, in its sole discretion, may require:

(1) 100 percent performance and 100 percent payment bonds;

(2) A letter of credit in the amount of 25 percent of the rehabilitation contract cost, and an assurance of completion agreement; or

(3) Other assurances of completion acceptable to the Department.

E. Binding communications between the contractor and the owner concerning the content or performance of the contract shall be in writing.

F. A contractor performing work financed by a Program loan or grant:

(1) May not be on the unacceptable risk determination list of the Department of Housing and Urban Development or the Development;

(2) May not be disbarred or suspended under COMAR 05.01.05; and

(3) Shall have performed all previous work financed by the Program in a manner satisfactory to the Director.