This document provides an overview of project delivery methods, procurement methods, and contract documents for Rural Development housing projects. It discusses alternative project delivery methods like design-build and construction management. It also outlines the procurement process and requirements for contract documents like performance bonds, payment bonds, notices to proceed, and change orders. National Office review is required for some project delivery methods. Resources for questions are also provided.

1. Introduction
• Choosing the Right Contract Method
• Project Delivery Methods
(Alternative to Design-Bid-Build)
– Design-Build
– Construction Management (CMc, CMa)
– Integrated
• Plans and Specifications – What
extent for RD selection process
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2. Introduction
• Contract Documents / Review
SFH, MFH
• Debarment / Suspension
• Contract Administration
– PreConstruction Conference, Pay
Requests, Change Orders, Inspections
• Questions / Answers
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3. Project Delivery Methods
• Design Build
• Construction Management
– Construction Management / Advisor
• RFP/RFQ
– Construction Management / Constructor
(aka Construction Manager “At Risk”)
• RFP/RFQ
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4. Project Delivery Methods
• Construction Management / Advisor
Owner CM / Advisor
Architect General Contractor
Consultants Subcontractors Suppliers
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5. Project Delivery Methods
• Construction Management / Constructor
Owner
Architect Construction Manager
Consultants Subcontractors Suppliers
(National Office concurrence required)
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6. Project Delivery Methods
• Construction Manager / Constructor
Advantages Early contractor involvement
Greater owner control
Design coordination
Early pricing
Faster! / Cheaper!
Disadvantages National Office review
Two contracts
Learning curve / familiarity
Compare with “Resident Inspector”
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7. Project Delivery Methods
• National Office Review
– Required for design / build and
construction management
– See Current AN for MFH
• Attempt to streamline process
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8. Procurement Methods
• Small purchases - 1942.18(k)(1)
– no more than $10,000
• Competitive sealed bids - 1942.18(k)(2)
• Competitive negotiation - 1942.18(k)(3)
– prefer RFP process, minimum 3 quotes
• Non-competitive negotiation -
1942.18(k)(4)
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9. Procurement Issues
• “Maximum open and free competition” -
1942.18(j)(2)
• Goal is “competition”
• Three bids possible / realistic for your
location?
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10. Contract Documents
• Notice to Proceed
• Performance Bond,
• Payment Bond,
• Bid Bond
• Latent Defects Bond
• Warranty
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11. Contract Documents
• Agency concurrence
• Debarment / Suspension, AD-1048
• Disclosure of lobbying, SF-111
• Change Order, 1924-7 or AIA G701
• Partial Pay Estimate, 1924-18 or AIA G702
• Builder’s Warranty
– did contract identify form?
– 1924-19 can be used
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12. Debarment / Suspension
• List available to public on Internet (EPLS/SAM)
– website: http://epls.arnet.gov
• Applies to all contracts
(Contractors, subs, engineers, architects, attorneys, etc.
)
– Check before concurrence in contract / award
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13. FYI
• RHS is “re-inventing” their
development regulations
• will include RD Instruction 1924-
A, 1924-C, development portions of
1942-A, and WWD 1784 into one
new regulation
• will cover RHS, RUS, & RBS
• in clearance process
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14. Resources
• National Office Program Support Staff
Michel Mitias, 601-965-4318 x142,
michel.mitias@wdc.usda.gov
Meghan Walsh, 202-205-9590
meghan.walsh@wdc.usda.gov
Bill Downs, 202-720-1499
william.downs@wdc.usda.gov
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