HUD 5084 Contract for Inspection Services (Turnkey)

Contract for Inspection Services
(Turnkey)

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 1.5 hours. This includes the time for collecting, reviewing, and reporting the data.
Information provided is to obtain architectural services for turnkey projects. Information is required to obtain benefit. Under 24 CFR 905.600 the PHA will select
an architect to perform construction inspections and certify that construction is performed in accordance with the contract of sale. HUD-5084 is used bythe PHA
to obtain professional architectural services to perform construction inspections of a turnkey project. No confidentiality is required. HUD may not conduct or spon­
sor, and an applicant is not required to respond to a collection of information unless it displays a currently valid OMB control number.

This Agreement entered into as of the

day of

by and between the
a public body organized and existing under and by virtue of the laws

of the State of

(herein after called the Local Authority or LA), and

Architects, of

(hereinafter called the Architect):

Witnessed that:
Whereas, the LA is undertaking the acquisition of a low-rent housing project designated as Project No.
in

Located at
and

Whereas, the United States of America, acting through the Department of Housing and Urban Development (hereinafter called the
Government) has agreed to assist in the financing of the acquisition of this project under the provisions of the United States Housing Act of
1937; and
Whereas, under date of
the LA entered into a certain agreement (hereinafter called the Contract of
Sale) with
(In the Contract of Sale and hereinafter in this Agreement called
the Seller) in which the LA has agreed to purchase certain real estate after completion thereon by the Seller of certain improvements to be
constructed in accordance with plans and specifications as set forth in the Contract of Sale (which said Contract of Sale is made a part hereof
as if set forth herein in full), said improvements to consist of
buildings containing
dwelling units,
together with utilities, site improvements, landscaping, and related facilities; and
Whereas, the LA desires to obtain from the Architect professional services with reference to the LA's interest in the Contract of Sale;
Now, Therefore, the LA and the Architect do mutually agree as follows:
Article 1. Scope. The Architect agrees to provide professional services for the LA in connection with the project as set forth in Article 3 hereof.
Article 2. Fee. For the professional services rendered as defined in Article 3 hereof, the LA agrees to pay the Architect a fee determined at
the rate of two and one-half times the direct personnel expense as approved by the LA.
Direct personnel expense includes actual and reasonable salaries paid to the Architect, his collaborators and his technical personnel for
performing the services stipulated under this contract, at rates of pay consistent with the nature of the services performed, but which shall
not exceed $
per hour. Direct personnel expense does not include stenographic, clerical, or other expense of an overhead
nature required for performance of this contract and for which compensation is included in the fee stipulated herein. It is agreed that, regardless of
the actual timing of services, calculation of the maximum remuneration to the Architect shall be based on the assumption that professional
services will average
hours per week during the actual construction period. The total compensation to the Architect shall not exceed
$
Payments to the Architect on account of services hereunder shall be made at the end of each month when the Architect shall submit a billsettin
g forth an itemization of direct personnel expense involved.
Article 3. Professional Services. The Architect shall:
3.1 Perform all services required of the Architect as set forth in the Contract of Sale.
3.2 Furnish the LA at the time of executing this Agreement a written list of those who may collaborate in inspecting the work. The Architect will
be responsible for compensating such collaborators.
3.3 In cooperation with the LA, prepare an inspection schedule appropriate to the construction and anticipated progress, but in no case less
often than monthly.
3.4 Make on­site inspections according to the schedule to determine conformity with plans and specifications, including compliance with the
Uniform Federal Accessibility Standards or the Deeming Notice (79 Fed. Reg. 29,671 (May 23, 2014)), the 2010 ADA Standards, and the Fair
Housing Act (if applicable), without in any way guaranteeing the Seller's work or assuming responsibility for the project design.
3.5 Within five days of each inspection, provide the LA a written report on such inspection including all deficiencies observed in the work and
send copies of each such report to the Seller, to the Lender, and to the Housing Assistance Office.
3.6 Check (without verifying by physical measurement or instrument survey) lines and grades of foundations, surfaces, grassed areas and
underground utilities laid out by the Seller.
3.7 Advise the LA on special problems and any changes in the work. Prepare and countersign construction change orders involving a change in
contract price and/or extension of contract time for execution by the LA and the Seller. Changes not affecting contract price or time of
Previous editions are obsolete

Page
2 of 2

form HUD-5084 (01/2014)
ref. Capital Fund Guidebook

completion shall be documented, singly or in groups, for formal acceptance by the LA and the Seller and countersigning by the Architect.
Changes affecting the contract price (see Article IV, Contract of Sale) shall be carefully checked as to monetary value and the
countersignature thereon shall indicate that the credit or extra has been verified by the Architect and that the amount involved represents a
reasonable adjustment of the contract price.
3.8 Approve materials and color schemes, and recommend LA approval or disapproval of samples, certificates, and test reports when
provided for in the Contract of Sale.
3.9 Maintain a file of shop drawings, guarantees and warranties relating to the improvement; review and approve "as-built" drawings and
specifications; and transfer this material to the LA at completion of construction.
3.10 Attend conferences when and as deemed necessary by the LA.
3.11 Assist in final inspection and prepare list of incomplete or defective work and, if necessary, prepare the documents and recommend
monetization of any such work.
3.12 Certify at the time of settlement that the property involved complies in all respects to the plans and specifications and any amendments
thereto, and is in good and tenantable condition.
3.13 Certify as to full completion of the project for payment of amounts withheld at the time of settlement.
3.14 Inspect the project after final acceptance and occupancy and before expiration of any applicable guarantees or warranties, if requested
to do so by the LA.
Article 4. Miscellaneous Requirements
4.1 Prevailing Wages. The Architect and his/her agents shall pay or cause to be paid to all Architects, technical engineers, draftsmen, and
technicians employed on any part of the work under this contract not less than the salaries or wages prevailing in the locality, as determined
or adopted(subsequent to a determination under applicable State or local law) by HUD. The Architect shall furnish to the LA, with each
statement submitted for services rendered, certification as to such compliance. These requirements shall not apply to executive, supervisory,
and administrative employees.
4.2 Withholding of Wages. In cases (of which the LA has notice) of underpayment of wages required to be paid under the requirement above,
the LA may withhold from the Architect out of payments due, an amount sufficient to pay to the employees involved the difference between the
wages required to be paid under the contract and the wages actually paid such employees for the total number of hours worked. The amounts
withheld may be disbursed by the LA for and on account of the Architect to the respective employees to whom they are due.
4.3 Equal Employment Opportunity. During the performance of this Agreement, the Architect agrees not to discriminate against any
employee or applicant for employment because of race, color, religion, sex, disability, or national origin. The Architect will take affirmative
action to ensure that applicants are employed, and that employees are treated during employment, without regard to race, color, religion,
sex, handicap, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or
transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training,
including apprenticeship.
The Architect shall insert provisions similar to the foregoing in all subcontracts, except subcontracts for standard commercial supplies or raw
materials.
4.4 Officials Not to Benefit. No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this
Agreement, or to ant benefit that may arise therefrom.
4.5 Interest of Members of the LA and the Local Governing Body. No member, officer, or employee of the LA, no member of the governing
body of the locality in which the LA was activated, and no other public official of such locality or localities who exercises any functions or
responsibilities with respect to the Project, shall, during his/her tenure, or for one year thereafter, have any interest, direct or indirect, in this
Agreement or the proceeds thereof.
4.6 Covenant Against Contingent Fees. The Architect warrants that he/she has not employed any person to solicit or secure this Agreement
upon an agreement for a commission, percentage, brokerage, or contingent fee. Breach of this warranty shall give the LA the right to
terminate this Agreement or, in its discretion, to deduct from the compensation otherwise payable, the amount of such commission,
percentage, brokerage, or contingent fee.
4.7 Assignability. The Architect shall not assign or transfer any interest in this Agreement except that claims for monies due or to become due
him/her from the LA under the Agreement may be assigned to a bank, trust company, or other financial institution.
4.8 Termination. The LA reserves the right to terminate the services of the Architect by giving at least three days written notice of the fact and
time of such termination. In such event, all finished or unfinished work prepared by the Architect shall become the property of the LA, and the
Architect shall be entitled to compensation for satisfactory work under this Agreement on the basis stated in Article 2.
In Witness Whereof, the LA and the Architect have executed this Agreement as of the day and year first above written.
By
BY
Title
Architect's Business Address and Zip Code
Architect's Business Telephone
Architect's Home Telephone
Previous editions are obsolete

Page
2 of 2

form HUD-5084 (01/2014)
ref. Capital Fund Guidebook