§ 963.18. Project implementation and reporting.
(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implementation within 12 months and continue work without unreasonable interruption, the financial assistance may be withdrawn by the Board.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.
Source The provisions of this § 963.18 amended July 7, 1995, effective July 8, 1995, 25 Pa.B. 2720. Immediately preceding text appears at serial pages (151747) to (151748).
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