7.3 HRSR 12-05-2016 - Laserfiche WebLink

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• Amount of contract • Change order procedures • Payment terms • Termination procedures Loan documents: CMHP will forward the Repayment Agreement to homeowners. Homeowners will execute the repayment agreement in the presence of a Notary Public, and return the executed document to CMHP, along with any required owners match funds. All documents must be executed and returned to CMHP before a project can start. The Repayment Agreement will be recorded with the Sherburne County. Notice to Proceed: After receipt of the executed Repayment Agreement, receipt of owners match funds, and confirmation of construction contract execution, the project can start. Upon contractor request, CMHP will issue a Notice to Proceed to the contractor and provide a copy to the homeowner. The notice will allow the contractor ninety (90) days from the date of the Notice to Proceed to complete the specified work.Ninety(90)days will be the allotted amount of time except under the following conditions: • The work is weather dependent and weather conditions have not allowed for the completion of the work • The Notice to Proceed is issued too late in the building season to allow weather dependent work to be completed on time • The selected contractor is too heavily committed to perform the work within the allotted time and informs the homeowner and CMHP of the situation. A work schedule will be established that is acceptable to the homeowner, CMHP, and the contractor • Unforeseen difficulties develop with the approved work and force a delay Failure to Start/Complete Project: Upon receipt of the Notice to Proceed, a contractor will have 90 calendar days in which to complete the contracted work. Failure to begin work within the first 60 days will be grounds to terminate the contract unless unforeseen weather issues affect the start date. The 90-day time period shall not be exceeded except through the issuance of a change order and by approval of the homeowner. In the absence of a change order, a contractor who violates the time period shall be penalized 10% of the unpaid balance for each week that the contractor is in violation. Payment Procedures: All contractors will agree to the payment schedule established by CMHP and the HRA. Typically draws will scheduled to provide for one draw for materials and a second draw upon completion. Draw requests approved by CMHP must be submitted to the HRA at least one week before the first Monday of a month to be paid in such month. Approved payments will be made by the HRA directly to the contractor and will be deemed advances of the Loan to the Homeowner. Steps and conditions for contractor payment include: • No pre-payments are allowable for any reason. Payment requests for materials will be 7 443114N4 MJNI Fl 185-26