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. 3/31/2020)

Model Form of Agreement Between
Owner and Design Professional

Previous editions are obsolete

form HUD-51915 (1/2014)

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. 3/31/2020)

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. HUD may not conduct or
sponsor,and an applicant is not required to respond to a collection of information unless it displays a currently 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 2 CFR 200. These contractual agreements are required by Federal law or regulation pursuant to
2 CFR Part 200. 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

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form HUD-51915 (9/98)
ref. Capital Fund Guidebook

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)

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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.

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form HUD-51915 (1/2014)

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 plan-ning,
designing and administering construction or rehabilitation of the
Project, the Design Professional shall provide the Owner
with professional services in the following areas:
o Architecture
o Site Planning

o Construction Contract Administration
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

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:

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Outline specifications
Cost estimates and analysis

o
o
o

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Recommendations for phasing of construction
Site plan(s)
Landscape plan

o

Floor plans

o

Elevations, building and wall sections
Updated three dimensional line drawings
Engineering drawings

o

o Landscape Architecture
o Cost Estimating

o

o

o

o Electrical Engineering
o Civil Engineering

o

Drawings sufficient to fix and illustrate project scope and
character in all essential design elements

o

o Structural Engineering
o Mechanical Engineering

o

o

A. 1.2.3 Bidding, Construction and Contract Document Phase. After
receipt of the Owner’s written approval of Design Develop-ment
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
o
o
o
o
o

Solicitation for Bids
Form of Contract
Special Conditions
General Conditions
Technical Specifications
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
o
o
o
o

Attending public bid openings
Reviewing and tabulating bids
Recommending list of eligible bids
Recommending award
Altering drawings and specifications as often as required to
award within the Estimated Construction Contract Cost

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form HUD-51915

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 re-quired
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 Administer the Construction Contract.
o Conduct pre-construction conference and attend dispute
resolution conferences and other meetings when requested
by the Owner.
o

Review and approve contractor’s shop drawings and other
submittals for conformance to the requirements of the
contract documents.

o

At the Owner’s written request, and as Additional Service,
procure testing from qualified parties.

o

Monitor the quality and progress of the work and furnish
a written field report □ weekly,
□ semi monthly,
This
monthly,
or
□
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.

o

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.

o

Review, approve and submit to Owner the Contractor
Requests for Payment.

o

Conduct all job meetings and record action in a set of
minutes which are to be provided to the Owner.

o

Make modifications to Construction Contract Documents to
correct errors, clarify intent or to accommodate change
orders.

o

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 countero
sign change orders.
o

Prepare written punch list, certificates of completion and
other necessary construction close out documents.
o 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.
o

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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

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.

o

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 sched-ule
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

o

Design Development Documents within
calendar
days from the date of receipt of written approval by the
Owner of Schematic Design/Preliminary Study documents.
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
(1/2014)

form HUD-51915

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
Reimbursable
Maximum Amount of $
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 tele-phone
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 docu-ments,
excluding the cost of reproductions for the Design Profes-sional 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
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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 conform-ance
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 Agree-ment 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 De­
­sign 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 Con­
tract(s) exceed the Maximum Construction Contract Cost, the Owner
has the right to require the Design Professsional to perform redesigns,
(1/2014)

form HUD-51915

rebids and other services necessary tocause an award of the Constru­
ction 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 regu­
lations except as modified by any waivers which may be obtained
with the approval of the 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 gov­
ernmental agencies having jurisdiction over the project. The Design
professional shall make all changes in the Bidding and Cons­
truction Documents necessary to obtain governmental approval with
out additional compensation or reimbursement, except in the follo­
wing 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. Both the owner and
design professional are responsible for ensuring that the design and
construction comply with any applicable accessibility laws, including
the Fair Housing Act (see 24 C.F.R. § 100.205), Sect. 504 of the
Rehabilitation Act (Sect. 504), and the Americans with Disabilities
Act (ADA). Compliance with Sect. 504 requires adherence to the
Uniform Federal Accessibility Standards (See https://www.access­bo
ard.gov/guidelines­and­standards/buildings­and­sites/about­the­aba­s
tandards/ufas) and compliance with the ADA requires adherence to
the 2010 ADA standards (See https://www.ada.gov/regs2010/2010A
DAStandards/2010ADAStandards_prt.pdf).
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 .
C. 1.7 Attendance at Conferences. The Design Professional or
designated representative shall attend project conferences and meet-i
ngs 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 oth­
ers 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
nonconfor-mance to the Design Professional.

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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 “built adrawings 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 rep-resent 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 re-use will be at the sole
risk of the Owner without liability to the Design Professional.

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form HUD-51915

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.

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 re-quired
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

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. 1.8 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.

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.

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 adjust-ment
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 2 CFR 200.

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

E. 1.2 Additional Services. The Owner shall perform a cost or
price analysis as required by 2 CFR 200 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 Profes-sional
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 2 CFR 200 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.

Page 8 of 11

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 905),
the Design Professional shall provide such a certification to the
Owner.

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form HUD-51915

E. 1.5 Retention and Inspection of Records. Pursuant to 2 CFR
200, 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 transcrip-tions. 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 2 CFR
200. 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
(2 CFR 200 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-agree-ments.
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 viola-tions 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 prohibi-tions relative to real,
apparent, or potential conflicts of interest.
Neither the Owner nor any of its contractors or their subcontrac-tors
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
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Page 9 of 11

his/her tenure any such interest, and if such interest is immedi-ately
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 (2 CFR
200, 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 (2 CFR
200), this Design Professional Agreement, unless it is for an
amount of $10,000 or less, has requirements regarding termi-nation
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 Transac-tions
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, amend-ment, 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 HUD-assisted
projects covered by section 3, shall, to the greatest extent feasible, be
directed to low- and very low-income persons, particu-larly persons
who are recipients of HUD assistance for housing.
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form HUD-51915

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 collec-tive
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 employ-ment
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.

E. 1.15 Energy Efficiency. Pursuant to Federal regulations (2 CFR
200) 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 Part 1, 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, disability, 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.
Pursuant to 24 CFR § 1000.12, other civil rights statutes do apply to I
ndian Housing Authorities such as, Section 504, the Indian Civil
Rights Act, and the Age Discrimination Act. (29 USC 794; 25
USC 1301.1303; and 42 USC 6101­6107 respectively).
E. 1.18Prohibition Against Liens. The Design professional is Pro­
hibited from placing a lien on the Owner’s property. This prohibition
shall be placed in all design professional subcontracts.

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.

Article F: Other Owner Requirements (if any)
(Continue on additional pages as necessary)

H. Reserved.
E. 1.13 Reserved.
E. 1.14 Clean Air and Water. (Applicable to contracts in excess of
$150,000). Because of 2 CFR 200) 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 $150,000.

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form HUD-51915

This Agreement is entered into as of the day and year first written above.
Owner

Design Professional

(Housing Authority)

(Firm)

(Signature)

(Signature)

(Print Name)

(Print Name)

(Print Title)

(Print Title)

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Page 11 of 11

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form HUD-51915

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
of

in the year (yyyy) of

day

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

Design Professional

(Housing Authority)

(Firm)

(Signature)

(Signature)

(Print Name)

(Print Name)

(Print Title)

(Print Title)

Previous editions are obsolete

Page 1 of 1

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form HUD-51915