Form Hud-92443-Ca Construction Contract Incentive Payment (Housing) printable pdf download

Construction Contract

U.S. Department of Housing

OMB Approval No. 2502-0297

and Urban Development

(exp. 8/31/2013)

Incentive Payment

Office of Housing

Federal Housing Commissioner

Under Section 202 of the Housing Act of 1959, as amended by

Sec. 801 of NAHA or Section 811 of the National Affordable

Housing Act

Must be executed prior to initial closing.

Public reporting burden for this collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions,

searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.

This information collection is necessary to ensure that viable projects are developed. It is important to obtain information from applicants to assist HUD in

determining if nonprofit organizations initially funded continue to have the financial and administrative capacity needed to develop a project and that the

project design meets the needs of the residents. The Department will use this information to determine if the project meets statutory requirements with

respect to the development and operation of the project, as well as ensuring the continued marketability of the projects. This information is required in order

to obtain benefits. This information is considered non-sensitive and no assurance of confidentiality is provided.

The Owner and the Contractor may amend the Construction Contract to provide for the payment of an additional sum to the Contractor as an

incentive for completing the project earlier than the completion date specified in the contract, or by such date to which the contract completion

may be extended.

Article 3 - Payments (cont.)

The Construction Contract - Lump Sum (Form HUD-92442-CA)

may be amended by adding the following paragraph by rider:

(3) If the work is completed prior to the time for completion specified

in this contract, the Owner shall make an incentive payment to the

Article 3. Contract Sum and Payments (cont.)

Contractor.

The amount of the payment shall be ascertained

If the work is completed prior to the time for completion specified in

according to the instructions on the attachment entitled Incentive

the contract, the Owner shall pay the Contractor, in addition to the

Payment Computation which is made a part hereof.

contract sum stated herein, an amount equal to________________*

(4) If, upon completion, the Contractor shall have received cash

percent of the amount by which the sum of HUD's estimates of real

payments in excess of (a) the actual cost of construction, plus (b) the

estate taxes and insurance during construction, totaling the amount

cash fee specified in paragraph (1), plus the incentive payment

of $__________________, ** exceeds the Owner’s certified cost of

under the provisions of paragraph (3), all such excess shall be

these same items as approved by HUD through the final completion

refunded to the Owner.

date. No incentive payment will be allowed on savings in costs

disallowed by HUD or if the Contractor's cost certification is found by

(5) No incentive payment will be allowed on savings in costs

HUD to be either fraudulent or to materially misrepresent the actual

disallowed by HUD or if the Contractor's cost certification is found by

cost of construction.

HUD to be either fraudulent or to materially misrepresent the actual

cost of construction.

The Construction Contract - Cost Plus (Form HUD-92442-CA)

may be amended by striking paragraph A(3) from Article 3 and

adding the following paragraphs by rider:

In Witness Whereof, the parties to these presents have executed this contract in six (6) counterparts, each of which shall be deemed an original,

in the year and day first above mentioned.

(Seal) Attest

Owner

Witness

Title

(Seal)

Contractor

Witness

Title

Note: If Contractor or Owner is a corporation, Secretary should attest.

Not to exceed 50%

** Insert here that portion of the sum of taxes and insurance that appear in Section G of Form HUD-92264 that are attributable to the construction period.

For example, if the construction period also shown in Section G of Form HUD-92264 is estimated to be 15 months, taxes and insurance have been calculated

for a 17 month period. Only a portion (15/17) may be included in the savings computation for these items.

form HUD-92443-CA (12/20/2005)

Previous editions are obsolete

ref. Handbooks 4571.4, 4571.5, & 4430.1

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