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Contractor Procurement and Oversight Contractor recruitment Qualified contractors are sought through a procurement process that includes advertisement, word of mouth referrals, and other means appropriate in our area. A database of licensed, insured, professional and trustworthy contractors is maintained at all items and used as a source of reference when bid proposals are needed. Acceptable insurance coverage needed is generally provided by a licensed contractor carrying workers compensation and disability coverage. Hard copy Certificates of Insurance, current license information, business marking and other pertinent information is to be on file. Bid Specifications Renovation specifications detailing the work to be completed by contractors and completed by a CNH representative. These specifications spell out all components of the work and materials to be provided, property owner, contact information, access to property, contractor requirements, insurance requirements, deadlines, lien waiver requirements, payment requirements and other pertinent information. Contractor Selection Renovation specifications are sent to pre-approved contractors seeking bid proposals for property improvements. Identical bids received on time should be compared for price, availability, and completeness. In most cases, medium bid price will be the factor more heavily weighted unless other variables are present. Once a contractor is selected, written notification is sent to all bidders and all bids are kept on file. A formal contract agreement is entered into the selected contractor. This contract typically involves signing their proposal unless it involves new construction. New construction contracts are prepared by CNH and signed by bidding contractors . Contractor Supervision, Payment & Lien Waivers Periodic inspection of the contractor's work by a CNH representative and the buyer(s) is necessary to ensure that the desired work is being completed as specified. Inspections occur as frequently as weekly or as infrequently as at midway and final stages of completion. No financial draws are approved without an inspection and lien waivers from previous draws. Additions, modifications or contract changes should only be made in writing and signed by the CNH representative and the contractor. Once work items are complete, 10% of the contract is withheld until punch list items are complete, an Occupancy Permit is received (if applicable) and full lien waivers are received. Any warranties provided by contractors are immediately transferred into the buyer(s)' names. Lead Based Paint Certification NCCS Center for Nonprofit Housing (CNH) utilizes federal HOME funds administered though the Michigan State Housing Development Authority (MSHDA) to acquire, renovate, and build quality, affordable housing in Newaygo County. Recent Federal Lead Based Paint Requirements now have taken full effect as of January 1, 2002 that requires contractors performing renovations work on homes identified with lead paint to be lead certified contactors. Since nearly all of CNH's renovation work totals $25,000 or less on each property we are assuming our projects fall into the federal "Interim Controls" definition. Refer to MSHDA OCD Policy #26, MSHDA OCA Policy #28, and Federal Register 24 CFR Part 35 and 24 CRF Part 570.608. Contractors basically have two options to choose from when the
renovation work involves Interim Controls:
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