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Program Information

Getting Ready for Construction


1. Once a contract is signed and a loan is closed, it is time to get you, your family, and the property ready for the rehabilitation work to begin.

2. The starting date for construction and the target completion date are decided by you and the contractor and are written into the contract.

3. Another important issue to decide early is the particular materials to be furnished by the contractor for the project. Even when a cost allowance is spelled out in the contract, you normally have the right to select designs and colors from samples at one of the suppliers the contractor does business with.

The contractor is not obligated to furnish special-order items unless that fact was made clear when the contractor bid on the work and it is written that way in the contract. (Some special order items also may not be eligible under the City loan program, so you may need to pay any extra cost out of your own funds.)

4. You and the contractor should hold a pre-construction conference to work out a construction schedule and other arrangements. The City can help you arrange one. The pre-construction conference should cover such topics as contractor working hours, access to the property, how to get in touch with each other, furniture moving, pets, children, and a lot of other details you will need to cover to avoid misunderstandings later.

The City will also lead you in a discussion of how to process contract change orders

and pay requests and how to resolve any disputes that may come up.

At the pre-construction conference the contractor will need to submit a schedule for progress payments for your approval and to present his certificates of liability insurance and worker's compensation coverage.

5. It will be easier for everyone if you agree to move all personal belongings and furniture out of those areas that are scheduled to be worked on. In fact, contractors may even submit lower bids if they are guaranteed in advance that they won't have to move furniture and other articles around to make room to work.

If you promise to do a certain amount of the furniture moving yourself, you and the contractor should put the details and timetable for this agreement in writing. Be prepared for extra charges if you don't follow through on your end of the bargain and the contractor ends up doing this part himself.

6. In many cases, where extensive remodeling and mechanical repairs are involved, it may be much easier and less expensive for you to vacate your property during all or part of the construction period. The City of Springfield can assist you by paying part of your relocation costs. The relocation assistance is normally enough to cover a couple of months' rent and the extra cost of having utilities turned on at both places. The cost of moving and storing some of your belongings may also be covered. It will be your responsibility to locate a suitable apartment or rental house and to submit an itemized statement showing the amount of relocation assistance you will need.

7. In getting ready for construction, you may need to make special arrangements with the contractor:

a. Where will the contractor and his employees and subcontractors be allowed to park?

b. If a commercial dumpster is needed, where can it be set?

c. If employees are going to be walking through finished parts of the house, will they need to put down cloth runners to protect the floor covering?

d. Are there items scheduled to be removed during the remodeling that you don't want the contractor to throw away? (Make a detailed list and give it to the contractor.)

e. Is there any trash or junk on the property that you do want hauled away? (Make a detailed list.)

f. If work is planned for the exterior of the house, what special care should the contractor take in protecting shrubs and trees?

8. Some loan applicants are approved by the City to do part of the rehabilitation
work themselves. This becomes part of the understood "working conditions" that the contractor took into account when he calculated his bid price. It is important to discuss this arrangement in detail with the contractor so both parties will understand how they may be affected and where they will need each other's cooperation.

(Some contractors do not want to take a chance by bidding on a project where the property owner plans to do his own work at the same time, thinking that could be a serious disruption and distraction. Others contractors are perfectly willing to work along with property owners. A lot depends on the individuals involved.)

9. Another variation that comes up from time to time is the property owner who wants the contractor to install materials that the owner has purchased. The contractor may agree to bid the job this way, but the contract should include a disclaimer so the contractor will not be liable for problems resulting from those materials. In general, the best policy is to let the contractor take care of purchasing the materials.

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