Sec. 05.04.06.14. Construction Process

A. Permits. If required by MDE or by local law, building or rehabilitation permits shall be obtained and posted at the project before the beginning of construction.

B. Contract Documents.

(1) Work done, materials supplied, and construction procedures employed shall comply with all contract documents and applicable codes and standards, including those set forth in this chapter and any others established by the Department or MDE. Contract documents include, without limitation:

(a) Rehabilitation loan agreement;

(b) Change orders;

(c) Certification of structural and mechanical soundness;

(d) Instructions to bidders;

(e) Specifications;

(f) Drawings, if applicable; and

(g) Contractor's proposal.

(2) There may not be modification of a contract document without prior written consent of the Department or the local administrator, as evidenced by an approved change order executed by the:

(a) Contractor;

(b) Owner; and

(c) Local administrator.

C. Inspections. The local administrator may conduct inspections to determine the required scope of work, verify payments, mediate construction problems and disputes, and facilitate arbitration procedures.

D. Construction Disputes.

(1) The local administrator and the Department shall coordinate with the borrower and the contractor to resolve any dispute concerning workmanship, the quality of materials, damaged property, the completion schedule, and other matters pertinent to the contract documents.

(2) The local administrator and the Department shall recognize the findings of the Maryland Home Improvement Commission or the Consumer Protection Division of the Office of the Attorney General, if the dispute is submitted to their arbitration.

E. Termination of Contracts. A contract may be terminated for cause in accordance with applicable provisions of the loan documents and contract documents.