I am thinking of giving all the work to GC so the lender asked that i got with some approved GC so he feels comfortable work will be done correctly.

You need a survey to start your design process. 

The DOTs position is that we should have consulted with them concurrently in the design phase and because we didnt we took on this risk.

While I am not a full time flipper *YET*, I have strong knowledge and experience in the architecture, design, and construction industry.

agreed here but in our market we do more than just build we entitle, attend zoning meetings, we sell the asset, we provide rental comps, we negotiate financing structures, very little of the actual process is building. floorplan design, style, etc local knowledge trumps all.

However, when applying for the operating LLC, you should have designated the holding company LLC as its owner.

You're perfectly capable of throwing some aggressive bids that make you comfortable entering and as you see one that fits, maybe up the ante for one that fits all your criteria but right now you can operate with no pressure regarding that. 

If it was fixed without an engineer's design, that would worry me.

I would prefer to self manage to avoid the high poperty management fees (I think its around 10% + 1 month leasing fee, etc.) and I also worry that the property manager will likely not be as dilligent in finding high quality affordable vendors, etc.I see 4 major pieces of work1) Tenant finding: I feel comfortable doing this remotely.

The sales pitch seemed like exactly what I need, by design I know.