Form 92442 Construction Contract Lump Sum

Construction Contract
Lump Sum

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

OMB Approval No. 2502-0011 (Exp. 11/30/2016)

Public Reporting Burden for this collection is estimated to average 16 hours per response, including the time for reviewing, searching existing data sources,
gathering and maintaining the data needed, and compiling and reviewing the collection of information. Send comments regarding this burden estimate or any other
aspect of this collection of information, including suggestions for reducing this burden to the Reports Management Officer, Paperwork Reduction Project (25020011), U.S. Department of Housing and Urban Development, 451 7 th Street SW, Washington, DC 20410-3600.
The Department of Housing and Urban Development (HUD) is authorized to collect this information by provisions set forth in Article I.E. of the National
Housing Act (Public Law 479, 48 Stat. 1246, 12 U.S.C. 1701 et. seq.). This information is provided to the FHA-Commissioner to obtain approval by contractors and
mortgagors to document the terms and conditions of any Contract Document, or order for extra work, or changes by altering or adding to the work, or which will
change the design concept. The information is used by HUD to ensure that viable projects are developed. Furnishing of this information is mandatory, and failure
to provide it may result in your not receiving your benefits.
Privacy Act Notice. The United States Department of Housing and Urban Development, Federal Housing Administration, is authorized to solicit the information requested in this form by virtue of Title 12, United States Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code of Federal
Regulations. While no assurances of confidentiality is pledged to respondents, HUD generally discloses this data only in response to a Freedom of Information
request. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collection displays a valid
OMB control number.

This Agreement, made the ____________ day of __________________ 20____, between __________________________________
____________________________________________________________________________ (hereinafter called the “Contractor”) and
____________________________________________________________________________ (hereinafter called the “Owner”).
Witnesseth, that the Contractor and the Owner, for the consideration hereinafter set out, agree as follows:
Article 1—Scope of Contract
A. The Contract between the parties is set forth in the “Contract
Documents,” which consist of this Agreement, the Drawings and
Specifications, which include the current edition of AIA Document
A201, “General Conditions of the Contract for Construction,” and
Form HUD-2554, “Supplementary Conditions of the Contract for
Construction.” The provisions of this instrument and the said HUD
Supplementary Conditions take precedence over all inconsistent
provisions in the said AIA General Conditions. This Contract constitutes the entire agreement between the parties, and any previously
existing contract concerning the work contemplated by the Contract
Documents is hereby revoked.
B. The Contractor shall furnish all of the materials and perform all
of the work (within the property lines) shown on, and in accordance
with, the Drawings and Specifications entitled ______________
_________________________________________________ ,
HUD Project No.___________________, dated _______________.
C. The Drawings, which are numbered _____________________,
and the Specifications, the pages of which are numbered___________
_________________________________________________ ,
have been prepared by _______________________________
__________________________________ (“Design Architect”).
The Architect administering the Construction Contract (hereinafter,
and elsewhere in the Contract Documents, referred to as the “Architect”) is ____________________________________________
_________________________________________________ .
D. A master set of said Drawings and Specifications, identified by
the parties hereto and by the Design Architect, the Architect, and the
Contractor's Surety or Guarantor have been placed on file with the
Federal Housing Commissioner (hereinafter referred to as the “Commissioner”), and shall govern in all matters which arise with respect
to such Drawings and Specifications.
Replaces form FHA-2442 which is obsolete
Previous editions are obsolete

E. Changes in the Drawings and Specifications or any terms of the
Contract Documents, or orders for extra work, or changes by altering
or adding to the work, or which will change the design concept, may
be effected only with the prior written approval of the Owner's Lender
(more particularly identified below and hereinafter referred to as the
“Lender”) and the Commissioner under such conditions as either the
Lender or the Commissioner may establish.
Article 2—Time
A. The work to be performed under this Contract shall be commenced within ______ days of this Agreement, and shall be completed by __________________, 20____. The time by which the
work shall be completed may be extended in accordance with the
terms of the said AIA General Conditions only with the prior written
approval of the Commissioner.
B. The Contractor shall correct any defects due to faulty materials
or workmanship which appear within one year from the date of final
completion.
C. If the work is not brought to final completion in accordance with
the Drawings and Specifications, including any authorized changes,
by the date specified above, or by such date to which the contract
time may be extended, the contract sum stated in Article 3A below
shall be reduced by $_______________, as liquidated damages, for
each day of delay until the date of final completion. When the Owner
cost certifies to HUD, the actual cost of interest, taxes, insurance,
mortgage insurance premiums, and construction and permanent
loan extension fees, as approved by the Commissioner, for the
period from the scheduled date of completion through the date
construction was actually completed, shall be determined. The
lesser of the liquidated or actual damages shall be applied. The
applicable amount shall be reduced by the project's net operating
income (as determined by the Commissioner) for the damage
period.

Page 1 of 3

form HUD-92442 (11/00)
ref Handbook 4430.1

D. The Owner and Contractor may amend this contract prior to
initial endorsement (insurance of advances projects) or upon execution of the construction contract (insurance upon completion projects),
in a form prescribed by the Commissioner, to provide for an incentive
payment to the Contractor, which will result in an increase in the
contract sum stated in Article 3A below, if the work is completed
before the date specified in this contract. The Contractor will not be
entitled to any incentive payment resulting from early completion if
HUD determines that the Contractor’s cost certification, if required
by Article 7, is fraudulent or materially misrepresents the Contractor’s
actual cost of construction.
E. The date of final completion shall be the date the HUD representative signs the final HUD Representative’s Trip Report provided that
the trip report is subsequently endorsed by the Chief Architect.
Article 3—Contract Sum and Payments
A. The Owner shall pay the Contractor for the performance of the
Contract, as hereinafter provided, the sum of $ ________________
.
B. Each month after the commencement of work hereunder, the
Contractor shall make a monthly request on Form HUD-92448 for
payment by the Owner for work done during the preceding month.
Each request for payment shall be filed at least ___________ days
before the date payment is desired. Subject to the approval of the
Lender and the Commissioner, the Contractor shall be entitled to
payment thereon in an amount equal to (1) the total value of classes
of the work acceptably completed; plus (2) the value of materials and
equipment not incorporated in the work, but delivered to and suitably
stored at the site; plus (3) the value of components stored off-site in
compliance with applicable HUD requirements; less (4) 10 percent
holdback and less prior payments. The “values” of (1), (2) and (3)
shall be computed in accordance with the amounts assigned to
classes of work in the “Contractor's and/or Mortgagor's Cost Breakdown,” attached hereto as Exhibit “A”. The Contractor agrees that no
materials or equipment required by the Specifications will be purchased under a conditional sale contract or with the use of any
security agreement or other vendor's title or lien retention instrument.
C. The balance due the Contractor hereunder shall be payable
upon the expiration of 30 days after the work hereunder is fully
completed, provided the following have occurred.
(1) All work hereunder requiring inspection by municipal or
other governmental authorities having jurisdiction has been inspected and approved by such authorities and by the rating or
inspection organization, bureau, association or office having jurisdiction;
(2) All certificates of occupancy, or other approvals, with respect to all units of the project have been issued by State or local
governmental authorities having jurisdiction; and
(3) Permission(s) To Occupy (Form HUD-92485) for all units of
the project have been issued by the Commissioner.
D. With its final application for payment by the Owner, the Contractor shall disclose, on a form prescribed by the Commissioner, all
unpaid obligations contracted in connection with the work performed
under this Contract. The Contractor agrees that within 15 days
following receipt of final payment, it will pay such obligations in cash
and furnish satisfactory evidence of such payment to the Owner.

Article 4—Receipts & Releases of Liens
The Owner may require the Contractor to attach to each request for
payment its acknowledgement of payment and all subcontractors'
and material supplier's acknowledgements of payment for work done
and materials, equipment and fixtures furnished through the date
covered by the previous payment. Concurrently with the final payment, the Owner may require the Contractor to execute a waiver or
release of lien for all work performed and materials furnished hereunder, and may require the Contractor to obtain similar waivers or
releases from all subcontractors and material suppliers.
Article 5—Requirements of Contractor
A. The Contractor shall furnish, at its own expense, all building and
other permits, licenses, tools, equipment and temporary structures
necessary for the construction of the project. The Contractor shall
give all required notices and shall comply with all applicable codes,
laws, ordinances, rules and regulations, and with the current regulations of the National Board of Fire Underwriters, wherever applicable.
The Contractor further shall comply with the provisions of the Occupational Safety and Health Act of 1970. The Contractor shall immediately notify the Commissioner of the delivery of all permits, licenses, certificates of inspection, certificates of occupancy, and any
other such certificates and instruments required by law, regardless
of to whom issued, and shall cause them to be displayed to the
Commissioner upon request.
B. If the Contractor observes that the Drawings and Specifications
are at variance with any applicable codes, laws, ordinances, rules or
regulations, or protective covenants, it shall promptly notify the
Architect in writing, and any necessary changes shall be made as
provided in this Contract for changes in the Drawings and Specifications. If the Contractor performs any work knowing it to be contrary
to such codes, laws, ordinances, rules or regulations, or protective
covenants, without giving such notice to the Architect, it shall bear all
costs arising therefrom.
C. Upon completion of construction, the Contractor shall furnish to
the Owner a survey showing the location on the site of all improvements constructed thereon, and showing the location of all water,
sewer, gas and electric lines and mains, and of all existing utility
easements. Such survey shall be prepared by a licensed surveyor
who shall certify that the work is installed and erected entirely upon
the land covered by the mortgage and within any building restriction
lines on said land, and does not overhang or otherwise encroach
upon any easement or right-of-way of others. In addition, the Contractor shall furnish additional surveys when required by the Owner
for any improvements, including structures and utilities, not theretofore located on a survey. The Contractor shall furnish copies of such
survey required hereunder for the Lender and the Commissioner.
D. The Contractor shall assume full responsibility for the maintenance of all landscaping which may be required by the Drawings and
Specifications until such time as both parties to this Contract shall
receive written notice from the Commissioner that such landscaping
has been finally completed. The Owner hereby agrees to make
available to the Contractor, for such purpose, without cost to the
latter, such facilities as water, hose and sprinkler.
Article 6—Assurance of Completion
The Contractor shall furnish to the Owner assurance of completion of
the work in the form of (specify) __________________________
__________________________________________________
__________________________________________________
_________________________________________________ .

Replaces form FHA-2442 which is obsolete
Previous editions are obsolete

Page 2 of 3

form HUD-92442 (11/00)
ref Handbook 4430.1

Such assurance of completion shall run to the Owner and the Lender
as obligees and shall contain a provision whereby the surety agrees
that any claim or right of action that either the Owner or the Lender
might have thereunder may be assigned to the Commissioner.
Article 7—Cost Certification
In the event the Commissioner determines that there is an identity of
interest between the Contractor and the Owner, the Contractor shall
certify, on a form prescribed by the Commissioner, its cost incurred
in the performance of work under this Contract.
Article 8—Right of Entry and Interpretation
A. The Lender and its agents or assigns and the Commissioner and
his/her agents shall, at all times during construction, have the right
of entry and free access to the project and the right to inspect all work
done and materials, equipment and fixtures furnished, installed or
stored in and about the project. For such purposes, the Contractor
shall furnish such enclosed working space as the Lender or Commissioner may require and find acceptable as to location, size, accommodations and furnishings.
B. The Commissioner shall also have the right to interpret the
Contract Documents and to determine compliance therewith.

B. The Contractor shall not subcontract all of the work to be
performed hereunder without the prior written consent of the Owner,
the Lender and the Commissioner.
C. Upon request by the Owner, the Lender or the Commissioner,
the Contractor shall disclose the names of all persons with whom it
has contracted or will contract with respect to work to be done and
materials and equipment to be furnished hereunder.
D. The Contractor understands that the work under this contract is
to be financed by a building loan to be secured by a mortgage and
insured by the Commissioner, and that the terms of said loan are set
forth in a Building Loan Agreement between the Owner as Borrower
and___________________________________________________
_________________________________________________
_________________________________________ as Lender.
The Contractor further understands that said Building Loan Agreement provides that, in the event of the failure of the Owner to perform
its obligations to the Lender thereunder, the Lender may, as attorney-in-fact for the Owner, undertake the completion of the project in
accordance with this Contract. In the event the Lender elects not to
undertake such completion, the Contractor's obligations under this
contract shall terminate.

Article 9—Assignments, Subcontracts and Termination
A. This Contract shall not be assignable by either party without the
prior written consent of the other party, the Lender and the Commissioner, except that the Owner may assign the Contract, or any rights
hereunder, to the Lender or the Commissioner.

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

By

Witness

Title

(Seal)

Contractor

Witness

By

Witness

Title

Note: If Contractor or owner is a corporation, Secretary should attest.
Replaces form FHA-2442 which is obsolete
Previous editions are obsolete

Page 3 of 3

form HUD-92442 (11/00)
ref Handbook 4430.1