Current through Register Vol. 54, No. 44, November 2, 2024
(a) For each project approved by the Board,
the administrative staff will develop financial assistance documents which
will, among other things, define the terms and conditions under which the
financial assistance is offered, the project management plan, project cost
breakdown, project scope and other legal documents determined to be necessary
by the Authority.
(b) Before
beginning construction work, the applicant and its engineer shall confer with
the Department project engineer to confirm the scope and schedule of the
project and schedule periodic inspections by the Department. The applicant
shall begin construction of the project, in accordance with its application,
within 12 months of approval by the Board. If the applicant does not begin
implementation within 12 months and continue work without unreasonable
interruption, the financial assistance may be withdrawn by the Board.
(c) The applicant may not deviate from the
scope, approved design or time schedule for a project unless written approval
is given by the Authority.
(1)
Scope
changes.
(i) If the deviation or
change involves one or more of the following it is considered a scope change:
(A) An increase or decrease in the scale of a
project that results in either more or fewer people being served.
(B) A change in process that uses a different
method to achieve the same result.
(C) Performing a different function within a
project.
(ii) Scope
changes shall be submitted in writing to the Authority for review and approval,
whether they result in a change to an existing contract or not. Failure to do
so may jeopardize funding.
(iii)
Funding for scope changes will be approved only in the following circumstances:
(A) The change in scope is a result of new or
revised State or Federal requirements, not in effect at the time the
application was approved for funding by the Board, and enacted prior to the
scheduled conclusion of construction as presented to the Authority in the
Applicant's original Organization and Management Plan.
(B) The change in scope is necessary to
protect the structural or process integrity of the facilities.
(C) Adverse conditions are identified during
the construction of the facilities which could not have been foreseen by the
design engineer prior to encountering the condition. The applicant/borrower
shall demonstrate to the Board that extensive effort was made in examining site
conditions before planning and design were finalized.
(D) The change is necessary to relieve
emergency conditions occurring during construction of the facilities.
(2)
Change
order.
(i) A deviation or change in
the design, construction or time schedule of a project not considered a scope
change is a change order.
(ii)
Change orders shall be submitted in writing to the Authority for review and
approval whether they result in a change to an existing contract or
not.
(iii) If change orders exceed
$25,000 or 2% of the amount of the project's construction cost, whichever is
smaller, or the aggregate cost of all change orders of the project exceed 10%
of the project's construction cost, written prior approval will be required
from the Authority and Department.
(3)
Funding eligibility.
Funding eligibility for scope changes and change orders will be based on the
criteria described in section 10 of the act (35 P. S. §
751.10) and §
963.5 (relating to financial
assistance criteria).
(4)
Consent to changes. Consent of the Authority to a scope change
or change order will not be deemed to increase the amount of financial
assistance provided without the express approval of the Board.
(5)
Refunds. The Authority
has the right to request a refund for a cost paid by the Authority including a
cost of the project, scope changes or change orders which are deemed to be
ineligible.
(d) A request
for a disbursal of financial assistance shall be on forms approved by the
Authority and shall be submitted on a schedule approved by the
Authority.
(e) The applicant shall
maintain project progress and financial records, to substantiate expenditures
and activities shown on the approved Organization and Management Plan and
budget for the project.
(f) The
applicant shall furnish the Authority with status reports at the Authority's
request until the project is completed. The applicant shall also provide the
Authority with its annual financial report for each year throughout the
repayment period of a loan provided by the Authority.
(g) If the applicant fails to comply with
this section, the Authority may withdraw the remaining funds allocated to the
project, as well as take other action to which it is legally entitled to
take.
