HUD-51915 Model Form of Agreement Between Owner and Design Profess

U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
OMB Approval No. 2577-0157 (exp.3/31/2010)

Model Form of Agreement Between
Owner and Design Professional

Previous editions are obsolete

form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

Model Form of Agreement
Between Owner and
Design Professional

U. S. Department of Housing
and Urban Development
Office of Public and Indian Housing

OMB Approval No. 2577-0157
(exp. 3/31/2010)

Public reporting burden for this collection of information is estimated to average 3 hours 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. This agency may not conduct
or sponsor, and a person is not required to respond to, a collection of information unless that collecton displays a valid OMB control number.
These contracts between a HUD grantee (housing agency (HA)) and an architect/engineer (A/E) for design and construction services do not require either
party to submit any materials to HUD. The forms provide a contractual agreement for the services to be provided by the A/E and establishes responsibilities
of both parties pursuant to the contract. The regulatory authority is 24 CFR 85.36. These contractual agreements are required by Federal law or regulation
pursuant to 24 CFR Part 85.36. Signing of the contracts is required to obtain or retain benefits. The contracts do not lend themselves to confidentiality.

Table of Contents
Introduction
Article A: Services
A. 1.0 Design Professional's Basic Services
A. 1.1 Areas of Professional’s Basic Services
A. 1.2 Phases and Descriptions of Basic Services
A. 1.2.1 Schematic Design/Preliminary Study Phase
A. 1.2.2 Design Development Phase
A. 1.2.3 Bidding, Construction and Contract Document Phase
A. 1.2.4 Bidding and Award Phase
A. 1.2.5 Construction Phase
A. 1.2.6 Post Completion/Warranty Phase
A. 1.3 Time of Performance
A. 2.0 Design Professional's Additional Services
A. 2.1 Description of Additional Services
A. 2.2 Written Addendum or Contract Amendment

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Article B: Compensation and Payment
B. 1.0 Basic Services
B. 1.1 Fixed Fee for Basic Services
B. 1.2 Payment Schedule
B. 2.0 Reimbursables
B. 2.1 Reimbursable Expenses
B. 2.1.1 Travel Costs
B. 2.1.2 Long-Distance Telephone Costs
B. 2.1.3 Delivery Costs
B. 2.1.4 Reproduction Costs
B. 2.1.5 Additional Reimbursables
B. 3.0 Additional Services
B. 3.1 Payment for Additional Services
B. 4.0 Invoicing and Payments
B. 4.1 Invoices
B. 4.2 Time of Payment

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Article C:
C. 1.0
C. 1.1
C. 1.2
C. 1.3
C. 1.4
C. 1.5
C. 1.6
C. 1.7
C. 2.0
C. 2.1
C. 2.2
C. 2.3

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Responsibilities
Design Professional's Responsibilities
Basic Services
Additional Services
General Responsibilities
Designing within Funding Limitations
Compliance with Laws, Codes, Ordinances and Regulations
Seal
Attendance at Conferences
Owner's Responsibilities
Information
Notice of Defects
Contract Officer

Previous editions are obsolete

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form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

C. 2.4 Duties to Furnish
C. 2.4.1Survey and Property Restrictions
C. 2.4.2Existing Conditions
C. 2.4.3Waivers
C. 2.4.4Minimum Wage Rates
C. 2.4.5Tests
C. 2.4.6Contract Terms
Article D:
D. 1.0
D. 1.1
D. 1.2
D. 1.3
D. 1.4
D. 1.5
D. 1.6
D. 1.7
D. 1.8

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Contract Administration
Prohibition of Assignment
Ownership of Documents
Substitutions
Suspension
Subcontracts
Disputes
Terminations
Insurance
Retention of Rights

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Article E: Additional Requirements
E. 1.0 Contract Provisions Required by Federal Law or
Owner Contract with the U.S. Department of Housing and Urban Development
E. 1.1 Contract Adjustments
E. 1.2 Additional Services
E. 1.3 Restrictive Drawings and Specifications
E. 1.4 Design Certification
E. 1.5 Retention and Inspection of Records
E. 1.6 Copyrights and Rights in Data
E. 1.7 Conflicts of Interest
E. 1.8 Disputes
E. 1.9 Termination
E. 1.10 Interest of Members of Congress
E. 1.11 Limitation of Payments to Influence Certain Federal Transactions
E. 1.12 Employment, Training and Contracting Opportunities for Low income Persons, Section 3, HUD Act of 1968
E. 1.13 Reserved
E. 1.14 Clean Air and Water (Applicable to Contracts in excess of $100,000)
E. 1.15 Energy Efficiency
E. 1.16 Prevailing Wages
E. 1.17 Non-applicability of Fair Housing Requirements in Indian Housing Authority Contracts
E. 1.18 Prohibition Against Liens

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Article F: Other Requirements (If any)

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Execution of Agreement

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Addendum (If any)

Previous editions are obsolete

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form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

Introduction to Agreement

Agreement
made as of the _____________ day of ________________ in the year (yyyy) of ______
Between the Owner (Name & Address)

and the Design Professional

(Name, Address and Discipline)

For the following Project (Include detailed description of Project, Location, Address, Scope and

Program Designation)

The Owner and Design Professional agree as set forth below.

Previous editions are obsolete

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form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

Article A: Services
A 1.0 Design Professional's Basic Services
A. 1.1 Areas of Professional’s Basic Services. Unless revised in
a written addendum or amendment to this Agreement, in planning, designing and administering construction or rehabilitation
of the Project, the Design Professional shall provide the Owner
with professional services in the following areas:
o
o
o
o
o
o
o
o
o

o
o
o

Architecture
Site Planning
Structural Engineering
Mechanical Engineering
Electrical Engineering
Civil Engineering
Landscape Architecture
Cost Estimating
Construction Contract Administration

o
o

o
o
o
o
o

Outline specifications
Preliminary construction cost estimates
Project specific analysis of codes, ordinances and regulations
Three dimensional line drawings

A. 1.2.2 Design Development Phase. After receipt of written
approval of Schematic Design/Preliminary Study Documents, the
Design Professional shall prepare and submit to the Owner Design Development Documents. The Design Professional shall
revise these documents consistent with the requirements and
criteria established by the Owner to secure the Owner’s written
approval. These documents shall include the following:

Previous editions are obsolete

o

o

A 1.2 Phases and Descriptions of Basic Services.
A. 1.2.1 Schematic Design/Preliminary Study Phase. After receipt of a Notice to Proceed from the Owner, the Design Professional shall prepare and deliver Schematic Design/Preliminary
Study Documents. These documents shall consist of a presentation of the complete concept of the Project, including all major
elements of the building(s), and site design(s), planned to promote economy both in construction and in administration and to
comply with current program and cost limitations. The Design
Professional shall revise these documents consistent with the
requirements and criteria established by the Owner to secure the
Owner’s written approval. Additionally, the Design Professional
shall make an independent assessment of the accuracy of the
information provided by the Owner concerning existing conditions. Documents in this phase shall include:
o
Site plan(s)
o
Schedule of building types, unit distribution and bedroom
count
o
Scale plan of all buildings, and typical dwelling units
o
Wall sections and elevations
o

o

Drawings sufficient to fix and illustrate project scope and
character in all essential design elements
Outline specifications
Cost estimates and analysis
Recommendations for phasing of construction
Site plan(s)
Landscape plan
Floor plans
Elevations, building and wall sections
Updated three dimensional line drawings
Engineering drawings

A. 1.2.3 Bidding, Construction and Contract Document Phase.
After receipt of the Owner’s written approval of Design Development Documents, the Design Professional shall prepare Construction Documents. After consultation with the Owner and
Owner’s attorney, if requested by the owner, the Design Professional shall also prepare and assemble all bidding and contract
documents. The Design Professional shall revise these Bidding,
Construction and Contract documents consistent with the requirements and criteria established by the Owner to secure the
Owner’s written approval. They shall, include in a detailed,
manner all work to be performed; all material; workmanship;
finishes and equipment required for the architectural, structural,
mechanical, electrical, and site work; survey maps furnished by
Owner; and direct reproduction of any logs and subsurface soil
investigations. These documents shall include:
o
Solicitation for Bids
o
Form of Contract
o
Special Conditions
o
General Conditions
o
Technical Specifications
o
Plans and drawings
o
Updated cost estimates
A. 1.2.4 Bidding and Award Phase. After written approval of
Bidding, Construction and Contract Documents from the Owner,
the Design Professional shall assist in administering the bidding
and award of the Construction Contract. This shall include:
o
Responding to inquires
o
Drafting and issuing addendum approved by Owner
o
Attending prebid conference(s)
o
Attending public bid openings
o
Reviewing and tabulating bids
o
Recommending list of eligible bids
o
Recommending award
o
Altering drawings and specifications as often as required to
award within the Estimated Construction Contract Cost

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form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

A. 1.2.5 Construction Phase. After execution of the Construction
Contract, the Design Professional shall in a prompt and timely
manner administer the Construction Contract and all work required by the Bidding, Construction and Contract Documents.
The Design Professional shall endeavor to protect the Owner
against defects and deficiencies in the execution and performance
of the work. The Design Professional shall:
o
o

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o

o
o
o

Administer the Construction Contract.
Conduct pre-construction conference and attend dispute
resolution conferences and other meetings when requested
by the Owner.
Review and approve contractor’s shop drawings and other
submittals for conformance to the requirements of the
contract documents.
At the Owner’s written request, and as Additional Service,
procure testing from qualified parties.
Monitor the quality and progress of the work and furnish
a written field report
weekly,
semi monthly,
monthly, or
____________________. This
service shall be limited to a period amounting to 110% of
the construction period as originally established under the
construction contract unless construction has been delayed
due to the Design professional’s failure to properly perform
its duties and responsibilities. The Owner may direct additional monitoring but only as Additional Services.
Require any sub-consultant to provide the services listed
in this section where and as applicable and to visit the
Project during the time that construction is occurring on
the portion of the work related to its discipline and report
in writing to the Design Professional.
Review, approve and submit to Owner the Contractor
Requests for Payment.
Conduct all job meetings and record action in a set of
minutes which are to be provided to the Owner.
Make modifications to Construction Contract Documents
to correct errors, clarify intent or to accommodate change
orders.
Make recommendations to Owner for solutions to special
problems or changes necessitated by conditions encountered in the course of construction.
Promptly notify Owner in writing of any defects or deficiencies in the work or of any matter of dispute with the
Contractor.
Negotiate, prepare cost or price analysis for and countersign change orders.
Prepare written punch list, certificates of completion and
other necessary construction close out documents.
Prepare a set of reproducible record prints of Drawings
showing significant changes in the work made during
construction, including the locations of underground utilities and appurtenances referenced to permanent surface
improvements, based on marked-up prints, drawings and
other data furnished by the contractor to the Design Professional.

Previous editions are obsolete

A. 1.2.6 Post Completion/Warranty Phase. After execution of the
Certificate of Completion by the Owner, the Design Professional
shall:
o
Consult with and make recommendations to Owner during
warranties regarding construction, and equipment warranties.
o

o

Perform an inspection of construction work, material,
systems and equipment no earlier than nine months and no
later than ten months after completion of the construction
contract and make a written report to the Owner. At the
Owner’s request, and by Amendment to the Additional
Services section of this contract, conduct additional warranty inspections as Additional Services.
Advise and assist Owner in construction matters for a
period up to eighteen months after completion of the
project, but such assistance is not to exceed forty hours of
service and one nonwarranty trip away from the place of
business of the Design Professional.

A. 1.3 Time of Performance. The Design Professional’s schedule for preparing, delivering and obtaining Owner’s approval for
Basic Services shall be as follows:
o
Schematic Design/Preliminary Study Documents within
_______ calendar days for the date of the receipt of a
Notice to Proceed.
o
Design Development Documents within ________ calendar
days from the date of receipt of written approval by the
Owner of Schematic Design/Preliminary Study documents.
o
Bidding, Construction and Contract Documents within
________ calendar days from the date of receipt of written
approval by the Owner of Design Development Documents.
A. 2.0 Design Professional's Additional Services
A. 2.1 Description of Additional Services. Additional Services
are all those services provided by the Design Professional on the
Project for the Owner that are not defined as Basic Services in
Article A, Section 1.2 or otherwise required to be performed by
the Design Professional under this Agreement. They include
major revisions in the scope of work of previously approved
drawings, specifications and other documents due to causes
beyond the control of the Design Professional and not due to any
errors, omissions, or failures on the part of the Design Professional
to carry out obligations otherwise set out in this Agreement.
A. 2.2 Written Addendum or Contract Amendment. All additional services not already expressly required by this agreement
shall be agreed to through either a written addendum or amendment to this Agreement.
Article B: Compensation and Payment
B. 1.0 Basic Services
B. 1.1 Fixed Fee for Basic Services. The Owner will pay the
Design Professional for Basic Services performed as defined by
A.1.2, a Fixed Fee (stipulated sum) of $ _____________________
plus Reimbursable Expenses identified in Article B.2.0. Such

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form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

payment shall be compensation for all Basic Services required,
performed, or accepted under this Contract.
B. 1.2 Payment Schedule. Progress payments for Basic Services
for each phase of work shall be made in proportion to services
performed as follows:
Phase
Amount
Schematic Design/Preliminary Study Phase $ ____________
Design Development Phase

$ ____________

Bidding, Construction & Contract Document Phase $ ____________
Bidding & Award Phase

$ ____________

Construction Phase

$ ____________

Post Completion/ Warranty Phase

$ ____________

Total Basic Services

$ ____________

B. 2.0 Reimbursables
B. 2.1 Reimbursable Expenses. The Owner will pay the Design
Professional for the Reimbursable Expenses listed below up to a
Maximum Amount of $ _____________________. Reimbursable
Expenses are in addition to the Fixed Fee for Basic Services and are
for certain actual expenses incurred by the Design Professional in
connection with the Project as enumerated below.
B. 2.1.1 Travel Costs. The reasonable expense of travel costs
incurred by the Design Professional when requested by Owner to
travel to a location that lies outside of a 45 mile radius of either
the Project site, Design Professional’s office (s), and Owner’s
office.
B. 2.1.2 Long Distance Telephone Costs. Long distance telephone calls and long distance telefax costs.
B. 2.1.3 Delivery Costs. Courier services and overnight delivery
costs.
B. 2.1.4 Reproduction Costs. Reproduction and postage costs of
required drawings, specifications, Bidding and Contract documents, excluding the cost of reproductions for the Design Professional or Subcontractor’s own use.
B. 2.1.5 Additional Reimbursables. The Design Professional and
Owner may agree in an addendum or amendment to this Agreement to include certain other expenses not enumerated above as
Reimbursable Expenses. These Reimbursables shall not be limited by the Maximum Amount agreed to above. A separate
Maximum Amount for these Reimbursables shall be established.
B .3.0 Additional Services
B. 3.1 Payment for Additional Services. The Owner will pay the
Design Professional only for Additional Services agreed to in an
addendum or amendment to this Agreement executed by the
Owner and the Design Professional pursuant to A.2. Payment for
all such Additional Services shall be in an amount and upon the
terms set out in such amendment or addendum and agreed upon
by the parties. Each such amendment or addendum shall provide
for a fixed price or, where payment for such Additional Services
is to be on an hourly basis or other unit pricing method, for a

Previous editions are obsolete

maximum amount; each such amendment or addendum shall also
provide for a method of payment, including, at a minimum,
whether payment will be made in partial payments or in lump sum
and whether it will be based upon percentage of completion or
services billed for.
B. 4.0 Invoicing and Payments
B. 4.1 Invoices. All payments shall require a written invoice
from the Design Professional. Invoices shall be made no more
frequently than on a monthly basis. Payments for Basic Services
shall be in proportion to services completed within each phase of
work. When requesting such payment, the invoice shall identify
the phase and the portion completed. All invoices shall state the
Agreement, name and address to which payment shall be made,
the services completed and the dates of completion, and whether
the invoice requests payment for Basic Services, Reimbursable or
Additional Services. Invoices seeking payment for Reimbursable or
Additional Services must provide detailed documentation.
B. 4.2 Time of Payment. Upon the Design Professional’s proper
submission of invoices for work performed or reimbursable
expenses, the Owner shall review and, if the work is in conformance with the terms of the Agreement, make payment within
thirty days of the Owner’s receipt of the invoice.
Article C: Responsibilities
C. 1.0 Design Professional's Responsibilities
C. 1.1 Basic Services. The Design Professionals shall provide
the Basic Service set out in Article A.1.0.
C. 1.2 Additional Services. When required under this Agreement or agreed to as set out in A.2.0, the Design Professional shall
provide Additional Services on the Project.
C. 1.3 General Responsibilities. The Design Professional shall
be responsible for the professional quality, technical accuracy,
and coordination of all designs, drawings, specifications, and
other services, furnished by the Design Professional under this
Agreement. The Owner’s review, approval, acceptance of, or
payment for Design Professional services shall not be construed
as a waiver of any rights under this Agreement or of any cause of
action for damages caused by Design Professional’s negligent
performance under this Agreement. Furthermore, this Agreement does not restrict or limit any rights or remedies otherwise
afforded the Owner or Design Professional by law.
C. 1.4 Designing Within Funding Limitations. The Design Professional shall perform services required under this Contract in such a
manner so as to cause an award of a Construction Contract(s) that
does not exceed (1) $ ______________________ or (2) an amount
to be provided by the Owner in writing to the Design Professional
prior to the commencement of Design Professional services. This
fixed limit shall be called the Maximum Construction Contract Cost.
The amount may be increased by the Owner, but only with written
notice to the Design Professional. If the increase results in a change
to the scope of work, an amendment to this Agreement will be
required. The Design Professional and the Owner may mutually
agree to decrease the Maximum Construction Contract Cost, but
only by signing a written amendment to this Agreement. Should bids
for the Construction Contract(s) exceed the Maximum Construction
Contract Cost, the Owner has the right to require the Design Profes-

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ref. Handbooks 7417.1, 7450.1 & 7460.8

sional to perform redesigns, rebids and other services necessary to
cause an award of the Construction Contract within the Maximum
Construction Contract Cost without additional compensation or
reimbursement.
C. 1.5 Compliance with Laws, Codes, Ordinances and Regulations.
The Design Professional shall perform services that conform to all
applicable Federal, State and local laws, codes, ordinances and
regulations except as modified by any waivers which may be
obtained with the approval of the Owner. If the Project is within an
Indian reservation, tribal laws, codes and regulations shall be substituted for state and local laws, codes, ordinances and regulations.
However, on such a Native American Projects, the Owner may
additionally designate that some or all state and local codes shall
apply. In some of these circumstances, a model national building
code may be selected by the Indian or Native American Owner. The
Design Professional shall certify that Contract Documents will
conform to all applicable laws, codes, ordinances and regulations.
The Design Professional shall prepare all construction documents
required for approval by all governmental agencies having jurisdiction over the project. The Design professional shall make all changes
in the Bidding and Construction Documents necessary to obtain
governmental approval without additional compensation or reimbursement, except in the following situations. If subsequent to the
date the Owner issues a notice to proceed, revisions are made to
applicable codes or non-federal regulations, the Design Professional
shall be entitled to additional compensation and reimbursements for
any additional cost resulting from such changes. The Design
Professional, however, is obligated to notify the Owner of all
significant code or regulatory changes within sixty (60) days of their
change, and such notification shall be required in order for the
Design Professional to be entitled to any additional compensation or
reimbursement.
C. 1.6 Seal. Licensed Design Professionals shall affix their seals
and signatures to drawings and specifications produced under this
Agreement when required by law or when the project is located on
an Indian Reservation.
C. 1.7 Attendance at Conferences. The Design Professional or
designated representative shall attend project conferences and meetings involving matters related to basic services covered under this
contract. Attendance at community wide meetings shall be considered an additional service.
C. 2.0 Owner's Responsibilities
C. 2.1 Information. The Owner shall provide information regarding requirements for the project, including a program that shall set
forth the Owner’s objectives and schedule. The Owner shall also
establish and update the Maximum Construction Cost. This shall
include the Owner’s giving notice of work to be performed by the
Owner or others and not included in the Construction Contract for the
Project. The Design Professional, however, shall be responsible to
ascertain and know federal requirements and limitations placed on
the Project.
C. 2.2 Notice of Defects. If the Owner observes or otherwise
becomes aware of any fault or defect in the construction of the project
or nonconformance with the Construction Contract, the Owner shall
give prompt written notice of those faults, defects or nonconformance to the Design Professional.

Previous editions are obsolete

C.2.3 Contract Officer. The Owner shall designate a Contract
Officer authorized to act on its behalf with respect to the design
and construction of the Project. The Contract Officer shall
examine documents submitted by the Design Professional and
shall promptly render decisions pertaining to those documents so
as to avoid unreasonably delaying the progress of the Design
Professional’s work.
C. 2.4 Duties to Furnish. The Owner shall provide the Design
Professional the items listed below.
C. 2.4.1 Survey and Property Restrictions. The Owner shall
furnish topographic, property line and utility information as and
where required. The Owner may at its election require the Design
Professional to furnish any of these items as an Additional
Service.
C. 2.4.2 Existing Conditions. The Owner shall provide the Design Professional any available “as built” drawings of buildings
or properties, architect surveys, test reports, and any other written
information that it may have in its possession and that it might
reasonably assume affects the work.
C. 2.4.3 Waivers. The Owner shall provide the Design Professional information it may have obtained on any waivers of local
codes, ordinances, or regulations or standards affecting the design of the Project.
C. 2.4.4 Minimum Wage Rates. The Owner shall furnish the
Design Professional the schedule of minimum wage rates approved by the U.S. Secretary of Labor for inclusion in the
solicitation and Contract Documents.
C. 2.4.5 Tests. When expressly agreed to in writing by both the
Owner and the Design Professional, the Owner shall furnish the
Design Professional all necessary structural, mechanical, chemical or other laboratory tests, inspections and reports required for
the Project.
C. 2.4.6 Contract Terms. The Owner or its legal counsel may
provide the Design Professional text to be incorporated into
Bidding and Construction Contract Documents.
Article D: Contract Administration
D. 1.0 Prohibition of Assignment. The Design Professional shall
not assign, subcontract, or transfer any services, obligations, or
interest in this Agreement without the prior written consent of the
Owner. Such consent shall not unreasonably be withheld when
such assignment is for financing the Design Professional’s performance.
D. 1.1 Ownership of Documents. All drawings, specifications,
studies and other materials prepared under this contract shall be
the property of the Owner and at the termination or completion of
the Design Professional’s services shall be promptly delivered to
the Owner. The Design Professional shall have no claim for
further employment or additional compensation as a result of
exercise by the Owner of its full rights of ownership. It is
understood, however, that the Design Professional does not represent such data to be suitable for re-use on any other project or
for any other purpose. If the Owner re-uses the subject data
without the Design Professional’s written verification, such reuse will be at the sole risk of the Owner without liability to the
Design Professional.

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ref. Handbooks 7417.1, 7450.1 & 7460.8

D. 1.2 Substitutions.
A. The Design Professional shall identify in writing principals and professional level employees and shall not substitute or
replace principals or professional level employees without the
prior approval of the Owner which shall not unreasonably be
withheld.
B. The Design Professional’s personnel identified below are
considered to be essential to the work effort. Prior to diverting or
substituting any of the specified individuals, the Design Professional shall notify the Owner reasonably in advance and shall
submit justification, including proposed substitutions, in sufficient detail to permit evaluation of the impact on the contract. No
diversion or substitution of such key personnel shall be made by
the Design professional without the prior written consent of the
Owner.
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
D. 1.3 Suspension. The Owner may give written notice to the
Design Professional to suspend work on the project or any part
thereof. The Owner shall not be obligated to consider a claim for
additional compensation if the Design Professional is given
written notice to resume work within 120 calendar days. If notice
to resume work is not given within 120 calendar days, the Design
Professional shall be entitled to an equitable adjustment in compensation.
D. 1.4 Subcontracts. The Design Professional will cause all
applicable provisions of this Agreement to be inserted in all its
subcontracts.
D. 1.5 Disputes. In the event of a dispute arising under this
Agreement, the Design Professional shall notify the Owner
promptly in writing and submit its claim in a timely manner. The
Owner shall respond to the claim in writing in a timely manner.
The Design Professional shall proceed with its work hereunder in
compliance with the instructions of the Owner, but such compliance shall not be a waiver of the Design Professional’s rights to
make such a claim. Any dispute not resolved by this procedure
may be determined by a court of competent jurisdiction or by
consent of the Owner and Design Professional by other dispute
resolution methods.
D. 1.6 Termination. The Owner may terminate this Agreement
for the Owner’s convenience or for failure of the Design Professional to fulfill contract obligations. The Owner shall terminate
by delivering to the Design Professional a Notice of Termination
specifying the reason therefore and the effective date of termination. Upon receipt of such notice, the Design Professional shall
immediately discontinue all services affected and deliver to the
Owner all information, reports, papers, and other materials accumulated or generated in performing this contract whether completed or in process. If the termination is for convenience of the
Owner, the Owner shall be liable only for payment for accepted
services rendered before the effective date of termination.

Previous editions are obsolete

D. 1.7 Insurance. The Design professional shall carry Commercial or Comprehensive General Liability Insurance, Professional
Liability Insurance (for a period extending two years past the date
of completion of construction), and other insurance as are required by law, all in minimum amounts as set forth below. The
Design Professional shall furnish the Owner certificates of insurance and they shall state that a thirty day notice of prior cancellation or change will be provided to the Owner. Additionally, the
Owner shall be an additional insured on all Commercial or
Comprehensive General liability policies.
Insurance
Limits or Amount
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
D. 1.8 Retention of Rights. Neither the Owner’s review, approval or acceptance of, nor payment for, the services required
under this contract shall be construed to operate as a waiver of any
rights under this contract or of any cause of action arising out of
the performance of this contract, and the Design Professional
shall be and remain liable to the Owner in accordance with the
applicable law for all damages to the Owner caused by the Design
professional ‘s negligent performance of any of the services
furnished under this contract.
Article E: Additional Requirements
E. 1.0 Contract Provisions Required by Federal Law or Owner
Contract with the U.S. Department of Housing and Urban Development (HUD).
E. 1.1 Contract Adjustments. Notwithstanding any other term or
condition of this Agreement, any settlement or equitable adjustment due to termination, suspension or delays by the Owner shall
be negotiated based on the cost principles stated at 48 CFR
Subpart 31.2 and conform to the Contract pricing provisions of 24
CFR 85.36 (f).
E. 1.2 Additional Services. The Owner shall perform a cost or
price analysis as required by 24 CFR 85.36 (f) prior to the
issuance of a contract modification/amendment for Additional
Services. Such Additional Services shall be within the general
scope of services covered by this Agreement. The Design Professional shall provide supporting cost information in sufficient
detail to permit the Owner to perform the required cost or price
analysis.
E. 1.3 Restrictive Drawings and Specifications. In accordance
with 24 CFR 85.36(c)(3)(i) and contract agreements between the
Owner and HUD, the Design Professional shall not require the use
of materials, products, or services that unduly restrict competition.
E. 1.4 Design Certification. Where the Owner is required by
federal regulations to provide HUD a Design Professional certification regarding the design of the Projects (24 CFR 968.235),
the Design Professional shall provide such a certification to the
Owner.

Page 8 of 11

form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

E. 1.5 Retention and Inspection of Records. Pursuant to 24 CFR
85.26(i)(10) and (11), access shall be given by the Design Professional to the Owner, HUD, the Comptroller General of the United
States, or any of their duly authorized representatives, to any
books, documents, papers, and records of the Design Professional
which are directly pertinent to that specific Contract for the
purpose of making an audit, examination, excerpts, and transcriptions. All required records shall be retained for three years after
the Owner or Design Professional and other subgrantees make
final payments and all other pending matters are closed.
E. 1.6 Copyrights and Rights in Data. HUD has no regulations
pertaining to copyrights or rights in data as provided in 24 CFR
85.36. HUD requirements, Article 45 of the General Conditions
to the Contract for Construction (form HUD-5370) requires that
contractors pay all royalties and license fees. All drawings and
specifications prepared by the Design Professional pursuant to
this contract will identify any applicable patents to enable the
general contractor to fulfil the requirements of the construction
contract.
E. 1.7 Conflicts of Interest. Based in part on federal regulations
(24 CFR 85.36(b)) and Contract agreement between the Owner
and HUD, no employee, officer, or agent of the Owner (HUD
grantee) shall participate in selection, or in the award or administration of a contract supported by Federal funds if a conflict of
interest, real or apparent, would be involved.
Such a conflict would arise when:
(i) The employee, officer or agent,
(ii) Any member of his or her immediate family,
(iii) His or her partner, or
(iv) An organization that employs, or is about to employ, any
of the above, has a financial or other interest in the firm selected
for award. The grantee’s or subgrantee’s officers, employees or
agents will neither solicit nor accept gratuities, favors or anything
of monetary value from Contractors, or parties to sub-agreements. Grantees and subgrantees may set minimum rules where
the financial interest is not substantial or the gift is an unsolicited
item of nominal intrinsic value. To the extent permitted by State
or local law or regulations, such standards or conduct will provide
for penalties, sanctions, or other disciplinary actions for violations of such standards by the grantee’s and subgrantee’s officers,
employees, or agents or by Contractors or their agents. The
awarding agency may in regulation provide additional prohibitions relative to real, apparent, or potential conflicts of interest.
Neither the Owner nor any of its contractors or their subcontractors shall enter into any Contract, subcontract, or agreement, in
connection with any Project or any property included or planned
to be included in any Project, in which any member, officer, or
employee of the Owner, or any member of the governing body of
the locality in which the Project is situated, or any member of the
governing body of the locality in which the Owner was activated,
or in any other public official of such locality or localities who
exercises any responsibilities or functions with respect to the
Project during his/her tenure or for one year thereafter has any
interest, direct or indirect. If any such present or former member,
officer, or employee of the Owner, or any such governing body
member or such other public official of such locality or localities
involuntarily acquires or had acquired prior to the beginning of
Previous editions are obsolete

his/her tenure any such interest, and if such interest is immediately disclosed to the Owner and such disclosure is entered upon
the minutes of the Owner, the Owner, with the prior approval of
the Government, may waive the prohibition contained in this
subsection: Provided, That any such present member, officer, or
employee of the Owner shall not participate in any action by the
Owner relating to such contract, subcontract, or arrangement.
No member, officer, or employee of the Owner, no member of the
governing body of the locality in which the project is situated, no
member of the governing body of the locality in which the Owner
was activated, and no other public official of such locality or
localities who exercises any functions or responsibilities with
respect to the project, during his/her tenure or for one year
thereafter, shall have any interest, direct or indirect, in this
contract or the proceeds thereof.
E. 1.8 Disputes. In part because of HUD regulations (24 CFR
85.36(i)(1)), this Design Professional Agreement, unless it is a
small purchase contract, has administrative, contractual, or legal
remedies for instances where the Design Professional violates or
breaches Agreement terms, and provide for such sanctions and
penalties as may be appropriate.
E. 1.9 Termination. In part because of HUD regulations (24 CFR
85.36(i)(2)), this Design Professional Agreement, unless it is for
an amount of $10,000 or less, has requirements regarding termination by the Owner when for cause or convenience. These
include the manner by which the termination will be effected and
basis for settlement.
E. 1.10 Interest of Members of Congress. Because of Contract
agreement between the Owner and HUD, no member of or
delegate to the Congress of the United States of America or
Resident Commissioner shall be admitted to any share or part of
this Contract or to any benefit to arise from it.
E. 1.11 Limitation of Payments to Influence Certain Federal
Transaction. The Limitation on Use of Appropriated Funds to
Influence Certain Federal Contracting and Financial Transactions Act, Section 1352 of Title 31 U.S.C., provides in part that no
appropriated funds may be expended by recipient of a federal
contract, grant, loan, or cooperative agreement to pay any person,
including the Design Professional, for influencing or attempting
to influence an officer or employee of Congress in connection
with any of the following covered Federal actions: the awarding
of any federal contract, the making of any Federal grant, the
making of any federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or
cooperative agreement.
E. 1.12 Employment, Training, and Contracting Opportunities
for Low-Income Persons, Section 3 of the Housing and Urban
Development Act of 1968.
A. The work to be performed under this contract is subject to the
requirements of section 3 of the Housing and Urban Development
Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The
purpose of section 3 is to ensure that employment and other
economic opportunities generated by HUD assistance or HUDassisted projects covered by section 3, shall, to the greatest extent
feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

Page 9 of 11

form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

B. The parties to this contract agree to comply with HUD’s
regulations in 24 CFR part 135, which implement section 3. As
evidenced by their execution of this contract, the parties to this
contract certify that they are under no contractual or other impediment that would prevent them from complying with the
part 135 regulations.
C. The contractor agrees to send to each labor organization or
representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice
advising the labor organization or workers’ representative of the
contractor’s commitments under this section 3 clause, and will
post copies of the notice in conspicuous places at the work site
where both employees and applicants for training and employment positions can see the notice. The notice shall describe the
section 3 preference, shall set forth minimum number and job
titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location
of the person(s) taking applications for each of the positions; and
the anticipated date the work shall begin.
D. The contractor agrees to include this section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR
part 135, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this section 3 clause,
upon a finding that the subcontractor is in violation of the
regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or
knowledge that the subcontractor has been found in violation of
the regulations in 24 CFR part 135.
E. The contractor will certify that any vacant employment
positions, including training positions, that are filled (1) after the
contractor is selected but before the contract is executed, and (2)
with persons other than those to whom the regulations of 24 CFR
part 135 require employment opportunities to be directed, were
not filled to circumvent the contractor’s obligations under 24
CFR part 135.
F. Noncompliance with HUD’s regulations in 24 CFR part 135
may result in sanctions, termination of this contract for default,
and debarment or suspension from future HUD assisted contracts.
G. Reserved.
H. Reserved.
E. 1.13 Reserved.
E. 1.14 Clean Air and Water. (Applicable to contracts in excess
of $100,000). Because of 24 CFR 85.36(i)(12) and Federal law,
the Design Professional shall comply with applicable standards,
orders, or requirements issued under section 306 of the Clean Air
Act (42 U.S.C. § 1857h-4 transferred to 42 USC § 7607, section
508 of the Clean Water Act (33 U.S.C. § 1368), Executive Order
11738, and Environmental Protection Agency regulations (40
CFR part 15), on all contracts, subcontracts, and subgrants of
amounts in excess of $100,000.

Previous editions are obsolete

E. 1.15 Energy Efficiency. Pursuant to Federal regulations (24
C.F.R 85.36(i)(13)) and Federal law, except when working on an
Indian housing authority Project on an Indian reservation, the
Design Professional shall comply with the mandatory standards
and policies relating to energy efficiency which are contained in
the state energy conservation plan issued in compliance with the
Energy Policy and Conservation Act (Pub. L. 94-163 codified at
42 U.S.C.A. § 6321 et. seq.).
E. 1.16 Prevailing Wages. In accordance with Section 12 of the
U.S. Housing Act of 1937 (42 U.S.C. 1437j) the Design Professional shall pay not less than the wages prevailing in the locality,
as determined by or adopted (subsequent to a determination under
applicable State or local law) by the Secretary of HUD, to all
architects, technical engineers, draftsmen, and technicians.
E. 1.17 Non-applicability of Fair Housing Requirements in Indian Housing Authority Contracts. Pursuant to 24 CFR section
905.115(b) title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d-2000d-4), which prohibits discrimination on the basis of
race, color or national origin in federally assisted programs, and
the Fair Housing Act (42 U.S.C. 3601-3620), which prohibits
discrimination based on race, color, religion, sex, national origin,
handicap, or familial status in the sale or rental of housing do not
apply to Indian Housing Authorities established by exercise of a
Tribe’s powers of self-government.
E. 1.18Prohibition Against Liens. The Design professional is Prohibited from placing a lien on the Owner’s property. This prohibition
shall be placed in all design professional subcontracts.
Article F: Other Owner Requirements (if any)
(Continue on additional pages as necessary)

Page 10 of 11

form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

This Agreement is entered into as of the day and year first written above.
Owner
______________________________________
(Housing Authority)

______________________________________
(Signature)

______________________________________

Design Professional
___________________________________________
(Firm)

___________________________________________
(Signature)

___________________________________________

(Print Name)

(Print Name)

____________________________________________________
(Print Title)

__________________________________________________________
(Print Title)

Previous editions are obsolete

Page 11 of 11

form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8

Addendum (If any)
(Additional Services and other modifications)

This is an Addendum to a Standard Form of Agreement between Owner and Design Professional signed and dated the __________ day
of ____________ in the year (yyyy) of ______ between the Owner ____________________________________ _____________________
and Design Professional _____________________________________________________________________________________ on
Project ___________________________________. The parties to that Agreement agree to modify the Agreement by the above
delineated Additional Services and modifications.
This Addendum is dated this ___________ day of __________________ in the year (yyyy) of ______.

Owner
______________________________________
(Housing Authority)

______________________________________
(Signature)

______________________________________

Design Professional
___________________________________________
(Firm)

___________________________________________
(Signature)

___________________________________________

(Print Name)

(Print Name)

____________________________________________________
(Print Title)

__________________________________________________________
(Print Title)

Previous editions are obsolete

Page 1 of 1

form HUD-51915 (9/98)
ref. Handbooks 7417.1, 7450.1 & 7460.8