4571.4

Appendix 11

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SUPPLEMENT TO AIA DOCUMENT A701, INSTRUCTIONS TO BIDDERS.

This supplement sets forth modifications to AIA Document A701,

Instructions to Bidders, applicable to projects funded under

Section 811 of the National Affordable Housing Act of 1990, as

amended. The paragraph designations listed below refer to the

A701 paragraphs modified.

3.1.1 - Delete the sentence, \"The deposit will be refunded to

Bidders who submit a bonafide Bid and return the

bidding documents in good condition within 10 days

after receipt of bids,\" and insert in its place the

sentence, \"The deposit will be returned in full for

each set returned in good condition within 10 days

after bid opening.\"

(Change provides for return of deposit whether or not a

bid is submitted.)

3.1.2 - Delete in its entirety.

(Change makes issuance of bid package acceptable to

anyone who makes a deposit.)

3.3.2 - Delete the first sentence and insert in its place, \"No

substitution will be considered unless: (1) Written

request for approval has been submitted by the Bidder

and has been received by the Architect at least 10 days

prior to the date for receipt of bids, or (2) Written

request for approval has been submitted by the

successful Bidder and approved in writing by the

Architect on AIA Form G710, Architect\'s Supplemental

Instructions, prior to the installation of such

substitutions.

(Change provides for substitutions during the

construction period.)

3.3.3 - Delete first sentence and insert, \"If the Architect

approves any proposed substitutions during the bidding

period, such approval will be set forth in an addendum.

(Change provides clarification required by change in

Section 3.3.2.)

4.2.1 - Delete the last sentence and insert in its place,

\"Should the Bidder refuse to enter into such contract

or fail to furnish assurance of faithful performance of

the contract and the payment of all obligations arising

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1

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4571.4

Appendix 11

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thereunder in the form of a performance bond in the

amount of 100 percent of the contract price and payment

bond in the amount of 100 percent of the contract

price, or a performance/payment bond in the amount of

100 percent of the contract price or a cash escrow in

the amount of 25 percent of the contract price, the

amount of bid security shall be forfeited to the Owner

as liquidated damages, not as penalty.\"

(Change provides for cash escrow or bonds as forms of

assurance for contract completion and payment and their

required amount.)

5.3.2 - Delete in its entirety and insert, \"Any alternates

accepted by the Owner shall be accepted in the order in

which they are listed in the form of Bid.\"

(Change eliminates provision for random selection of

alternates by Owner.)

6.1.2 - Add Article 6.1.2 \"Bidder shall submit with its Bid the

Affidavit of Non-Collusive/Non-Identity of Interest and

Form HUD-2530, Previous Participation Certificate.\"

(Change requires submission of HUD required

certificates.)

7.1.2, 7.1.3 and 7.1.4 - Omit in their entirety and substitute

as follows.

7.1.2 - \"The Bidder shall not employ firms or individuals

listed in the Consolidated List of Ineligible

Contractors and Grantees as subcontractors or material

suppliers. Such employment by the Bidder shall be

considered a default on the contract.\"

(Change eliminates Owner\'s basis for objection to

subcontractors except for subcontractors and

materialmen listed in the Government\'s Consolidated

List of Ineligible Contractors and Grantees and makes

Bidder\'s employment of such the basis for declaring the

contract in default.)

7.1.3 - Within five days of the notification of Bid acceptance,

the Bidder shall furnish to the Owner a schedule of

values allocated to the various portions of the Work,

prepared on Form HUD-2328, Contractor\'s and/or

Mortgagor\'s Cost Breakdown, such breakdown to satisfy

the General Conditions requirement in subparagraph

9.2.1 pertaining to schedule of values.

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2

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4571.4

Appendix 11

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8.1.1 - The Owner shall have the right, prior to the execution

of the Contract, to require the Bidder to furnish

assurance of the faithful performance of the contract

and the payment of all obligations arising thereunder.

The Bidder shall have the right to provide the

assurance in the form of Form HUD-92452-CA,

Performance-Payment Bond (Dual Obligee) in the amount

of 100 percent of the contract price, or FHA-2452,

Performance Bond and HUD-92452-A, Payment Bond (each in

the amount of 100 percent of the contract price) or a

cash escrow in the amount of 25 percent of the contract

price in the form of Form HUD-92450-CA, Assurance of

Completion. The premium for such bonds shall be paid

by Bidder, and the interest on such cash escrow shall

accrue to Bidder. Such bonds shall be underwritten by

an acceptable guarantor or surety listed in the U.S.

Treasury Department Circular No. 570.

(Change provides for cash escrow as an alternative to

bonds as the form of contract assurance, specific form

of bonds and escrow agreement, and amount surety.)

8.2.1 and 8.2.2 - Delete 8.2.1 and 8.2.2 in their entirety and

insert

8.2.1 - \"The Bidder shall deliver the required bonds or cash

escrow to the Owner at the time and place designated by

the Owner for execution of the contract. The time

shall be not less than 10 days from the date of

notification of Bid acceptance, unless agreed to by

Bidder and not more than 10 days from date of

notification of Bid acceptance unless agreed to by

Owner. The place shall be the HUD office designated in

the Invitation for Bids.\"

(Change establishes the time and place for execution of

the contract and provision by Bidder of contract

assurance.)

9.1.1 - Omit 9.1.1 in its entirety and insert, \"The Agreement

of the Work will be written on Form HUD-92442-CA,

Construction Contract-Lump Sum.\"

(Change specifies form of construction contract.)

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3