Sec. 05.04.08.14. Construction Process

A. Permits. If required 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 these regulations and any others established by the Department. 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 any contract document without the prior written consent of the Department or the local administrator, as evidenced by an approved change order executed by:

(a) The contractor;

(b) The owner; and

(c) The local administrator.

C. Borrower and Contractor.

(1) The borrower and the contractor shall cooperate to facilitate timely performance of the rehabilitation work and selection of materials.

(2) The borrower shall provide the contractor access to the property during normal business hours, and shall permit the contractor to use existing utilities for the execution and completion of work, at no costs to the contractor.

(3) The borrower shall be responsible for removing and replacing rugs, furnishings, and other personal property, unless otherwise provided in the contract documents.

(4) The borrower and the contractor shall protect and maintain the property and improvements in accordance with the contract documents.

(5) The borrower and the contractor shall each, in writing, hold the Department harmless from all loss, claim, cost, or damage of every kind, nature, and description arising from or related to the contract documents.

(6) All communications relating to content or performance of the contract shall be in writing, and copies sent to the Program.

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

E. Construction Disputes. If disputes between the contractor and borrower occur, the Department shall recognize the findings of the Maryland Home Improvement Commission and the Consumer Protection Division of the Office of the Attorney General.

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