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This section reviews the procedure for completing Form HUD-92448 ("2448"), Contractor's Requisition, Project Mortgages.

The 2448 serves as the requisition form for the general contractor for work completed to date, pursuant to the HUD-approved contract between the general contractor and the owner corporation.

At the time of the Firm Commitment, HUD approved the Contractor's and/or Mortgagor's Cost Breakdown,
Form HUD-2328, which listed all of the construction costs, itemized by trade. This document was also made a part of the agreement between the general contractor and the owner. Therefore, it is the basis of the contractor's requisitions for progress payments.

At the start of construction, the general contractor fills in Column A of the 2448 with the costs by trade, plus general requirements, overhead and profit, exactly as stated in the Form HUD-2328 that had been approved by HUD. For each submitted requisition, the general contractor fills in under Column B the work completed to date for each trade item, expressed as a dollar value and percentage of completion. Column C is reserved ONLY for the HUD inspector to modify the amounts claimed in Column B. The contractor should attach to each requisition a graphic progress schedule (click to see sample) showing, over the construction period, the percent of scheduled work and actually completed work.

On each requisition, as an attachment to Column B, the general contractor can also include a detailed table of values indicating the dollar value of completed work for subcategories of each trade.

Calculating an Amount for General Requirements, Overhead and Profit

Although the dollar value requested for a trade item reflects the actual percent of work completed, the amounts requested for general requirements, overhead and profit are to be calculated differently. Instead of supplying the actual costs of general requirements, overhead and profit for a specific requisition, you use the percentage of completion for the total of all the trade items to calculate the dollar value of each of these line items, as shown below:

the total value of work for all the trades completed to date (Column B) divided by
the total value of the trades in the contract (Column A) = Percentage of Completion

You then multiply the Percentage of Completion by the amount budgeted for general requirements, overhead and profit.

Reduction of Retainage

On page 2, the general contractor will subtract an amount for retainage, as per HUD guidelines.

Prevailing Wages

On page 2 of the 2448 is the Contractor's Prevailing Wage Certificate. If prevailing wages under Davis-Bacon are applicable to the project, then this must be completed for each requisition. Prevailing wages applies to a Section 202 project and to Section 811 (if an independent living project) that has 12 or more units, and to a Section 811 project with 12 or more group homes.

What Not to Include on the 2448 Form

A contractor's requisition for approved change orders is submitted on a different HUD form, Form HUD-92437, Request for Construction Changes on Project Mortgages, so change orders should not be reflected on the 2448.

The amount for bond premium and any fee for cost certification, in the case of a Cost Plus Contract, is not to be included on the 2448. The invoice for a bond premium is submitted separately as a line item on the Sponsor's Requisition. The fee for cost certification is submitted at the conclusion of construction as an attachment to the contractor's final request for payment.

HUD Processing of the General Contractor's Requisition

The owner will include the 2448 as an attachment to its requisition to HUD. The amount that HUD will approve for the general contractor will be the amount requested in Column B on page 2 as adjusted by HUD in Column C. However, if the total in Column B is lower than the total reflecting the HUD inspector's notes in Column C, HUD will only approve the lower amount requested by the contractor in Column B.