[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR52b.10]



[Page 205-207]

 

                         TITLE 42--PUBLIC HEALTH

 

    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 52b_NATIONAL INSTITUTES OF HEALTH CONSTRUCTION GRANTS--Table of 

Contents

 

Sec. 52b.10  What are the terms and conditions of awards?



    In addition to any other requirement imposed by law or determined by 

the Director to be reasonably necessary to fulfill the purposes of the 

grant, each construction grant shall be subject to the terms and 

conditions and the grantee assurances required by this section, 

supported by such documentation as the Director may reasonably require. 

The Director may, by general policy or for good cause shown by an 

applicant, approve exceptions to these terms and conditions or 

assurances where the Director finds that the exceptions are consistent 

with the applicable provisions of the Act and the purposes of the 

particular program:

    (a) Title. The applicant must have a fee simple or other estate or 

interest in the site, including necessary easements and rights-of-way, 

sufficient to assure for the estimated useful life of the facility, as 

determined by the Director, undisturbed use and possession for the 

purpose of the construction and operation of the facility.



[[Page 206]]



    (b) Plans and specifications. Approval by the Director of the final 

working drawings, specifications, and cost estimates must be obtained 

before the project is advertised or placed on the market for bidding. 

The approval must include a determination by the Director that the final 

plans and specifications conform to the minimum standards of 

construction and equipment as set forth in Sec. 52b.12.

    (c) Relocation assistance. An applicant with an approved project 

which involves the displacement of persons or businesses shall comply 

with the provisions of the Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601 et 

seq.) and the applicable regulations issued under that Act (45 CFR part 

15; 49 CFR part 24).

    (d) Approval of changes in estimated cost. Unless approved by the 

Director, the applicant shall not enter into any construction contracts 

for the project or a part of the project, the cost of which exceeds the 

estimated cost approved in the terms of an award for that portion of the 

work covered by the plans and specifications. Exceptions shall be 

requested in the form and manner as the Director may prescribe.

    (e) Completion responsibility. The applicant must construct the 

project, or cause it to be constructed, to final completion in 

accordance with the grant application, the terms and conditions of the 

award, and the approved plans and specifications.

    (f) Construction schedule inspection. Prior to the start of 

construction, the grantee shall submit an approved copy of the 

construction schedule (critical path method) to the Director in the form 

and manner as the Director may prescribe.

    (g) Construction management. The applicant must provide and maintain 

competent and adequate construction management services for inspection 

at the construction site to ensure that the completed work conforms with 

the approved plans and specifications. Construction management services 

shall include daily construction logs and monthly status reports which 

shall be maintained at the job site and shall be submitted to the 

Director at the times and in the form and manner as the Director may 

prescribe.

    (h) Nonfederal share. Sufficient funds must be available to meet the 

nonfederal share of the costs of constructing the facility.

    (i) Funds for operation. Sufficient funds must be available when 

construction is completed for effective use of the facility for the 

purposes for which it is being constructed.

    (j) Inspection. The Director and the Director's representatives 

shall have access at all reasonable times to all work areas and 

documents during any stage of construction and the contractor shall 

provide proper facilities for this access and inspection.

    (k) Accessibility to handicapped persons. The facility must be 

designed to comply with the Uniform Federal Accessibility Standards (41 

CFR part 101-19, subpart 101-19.6, Appendix A), as modified by other 

standards prescribed by the Director or the Administrator of General 

Services. The applicant shall conduct inspections to ensure compliance 

with these specifications by the contractor.

    (l) Notice of Federal Interest. The grantee shall record a Notice of 

Federal Interest in the appropriate official land records of the 

jurisdiction in which the property is located.

    (m) Title insurance. The grantee shall purchase a title insurance 

policy unless a legal opinion has been provided which certifies that the 

grantee institution has fee simple title to the site free and clear of 

all liens, easements, rights-of-way, and any other adverse interests 

which would encumber the project. The Director may waive this 

requirement upon a request from the grantee adequately documenting self-

insurance against the risks involved and containing such other 

information as the Director may prescribe.

    (n) Physical destruction insurance. At the time construction is 

completed or at the time of beneficial occupancy, whichever comes first, 

the grantee shall purchase an insurance policy which insures the 

facility for the full appraised value of the property using state 

certified appraisers. The insurance policy must protect the property 

from total and partial physical destruction. The insurance policy must



[[Page 207]]



be maintained throughout the period of federal interest. The Director 

may waive this requirement upon a written request from the grantee 

adequately documenting self-insurance against the risks involved and 

containing such other information as the Director may prescribe.



(Approved by the Office of Management and Budget under Control Number 

0925-0424; expires November 30, 2001)