Md. Code Regs. 05.04.09.14

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.04.09.14 - Contractor Requirements

A. General Requirements. A contractor entering into a contract for a project shall:

(1) Meet all applicable State and local licensing requirements;

(2) Be of good reputation, financially sound, and fully qualified to perform the required work outlined in the work write-up as evidenced by previous professional rehabilitation experience;

(3) Provide insurance coverage for comprehensive public liability, property damage liability, and worker's compensation in the form and amounts required by the Department;

(4) Perform all work in a competent, workmanlike manner equal to the standards of the industry, in conformance with the contract, applicable codes and rehabilitation standards, and any other applicable laws, local codes, and Departmental rehabilitation standards, whether covered by the work write-up and drawings for the work;

(5) Comply with all applicable laws, ordinances, and regulations relating to the protection and safety of persons and property;

(6) Furnish all labor, materials, and equipment, and obtain and pay for all licenses and permits required to construct or modify the group home in accordance with the contract documents and the work write-up;

(7) Not assign the contract without the prior written consent of the borrower and the Department;

(8) Agree to complete all construction or modification specified in the work write-up by the date required by the contract;

(9) Indemnify and hold the Department harmless from all liability and loss because of injury to or death of any person or damage to any property which may occur or be alleged to occur during performance of the contract as a direct or indirect result of any act or omission, whether intentional, negligent, or otherwise, by the contractor, subcontractors, or their agents, servants, and employees; and

(10) Defend all suits or claims involving those in §A(9) of this regulation at its sole cost and expense.

B. Guarantees.

(1) In addition to all remedies and guaranties provided by law, a contractor entering into a contract for a project shall agree to make, at its sole cost and expense, all necessary repairs, replacements, and corrections of any nature or description, interior or exterior, structural or nonstructural, as becomes necessary by reason of faulty workmanship or material, which appear within a period of 1 year from the date that the required form of certificate of completion is filed with the Department.

(2) If any longer guarantee period is specified for any particular materials or workmanship under the work write-up, or under any subcontract, in connection with any manufactured unit which is installed in the building, or under the laws of the State, the longer period governs.

C. Identity of Interest Contractors.

(1) Group home sponsors may act as general contractors only with the prior written approval of the Department.

(2) Application forms to the Department to obtain the approval shall be provided upon request by the Department and shall be submitted and approved before submission of the bid proposal.

D. Completion Assurances. Performance and payment bonds, each in an amount equal to 100 percent of the contract price or, alternatively, cash or an irrevocable letter of credit equal to 25 percent of the contract price, and an assurance of completion agreement or other assurance of completion, may be required on any project at the option of the Department.

Md. Code Regs. 05.04.09.14

Regulations .14 adopted as an emergency provision effective February 23, 1987 (14:6 Md. R. 704); adopted permanently effective July 27, 1987 (14:15 Md. R. 1657)
Regulations .14 adopted effective May 25, 1992 (19:10 Md. R. 929)