[Federal Register Volume 60, Number 36 (Thursday, February 23, 1995)]
[Rules and Regulations]
[Pages 10152-10260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2843]
[[Page 10151]]
_______________________________________________________________________
Part II
Department of Agriculture
_______________________________________________________________________
Rural Utilities Service
_______________________________________________________________________
7 CFR Part 1726
Electric System Construction Policies and Procedures; Final Rule
Federal Register / Vol. 60, No. 36 / Thursday, February 23, 1995 /
Rules and Regulations
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[[Page 10152]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1726
RIN 0572-AA47
Electric System Construction Policies and Procedures
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Utilities Service (RUS), successor to the Rural
Electrification Administration (REA), hereby amends its regulation on
Electric System Construction Policies and Procedures. This action
codifies the policies and the procedures applicable to RUS electric
borrowers when purchasing materials and equipment, and when
constructing system facilities by contract or force account. These
policies and procedures were contained in six REA bulletins. The
changes made pertain to RUS approval of contracts, subcontracts and
amendments to contracts; documentation of contracting activity by RUS
borrowers; procurement procedures to be used by RUS borrowers; and
closeout procedures for construction contracts.
EFFECTIVE DATE: This rule is effective March 27, 1995.
FOR FURTHER INFORMATION CONTACT: Mr. Fred J. Gatchell, Deputy Director,
Electric Staff Division, Rural Utilities Service, U.S. Department of
Agriculture, Washington, DC 20250-1500, telephone (202) 720-1398.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant for the
purposes of Executive Order 12866 and therefore has not been reviewed
by OMB.
Regulatory Flexibility Act Certification
This action does not fall within the scope of the Regulatory
Flexibility Act.
Information Collection and Recordkeeping Requirements
In compliance with the Office of Management and Budget (OMB)
regulations (5 CFR part 1320) which implement the Paperwork Reduction
Act of 1980 (Pub. L. 96-511) and section 3504 of the Act, the
information collection and recordkeeping requirements contained in this
rule have been approved by OMB under control number 0572-0107. Comments
concerning these requirements should be directed to the Office of
Information and Regulatory Affairs of OMB, Attention: Desk Officer for
USDA, room 10102, New Executive Office Building, Washington, DC 20503.
National Environmental Policy Act Certification
The Administrator has determined that this rule will not
significantly affect the quality of the human environment as defined by
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Therefore, this action does not require an environmental impact
statement or assessment.
Catalog of Federal Domestic Assistance
The program described by this rule is listed in the Catalog of
Federal Domestic Assistance programs under No. 10.850, Rural
Electrification Loans and Loan Guarantees. This catalog is available on
a subscription basis from the Superintendent of Documents, the United
States Government Printing Office, Washington, DC 20402. Telephone
(202) 783-3238.
Executive Order 12372
This rule is excluded from the scope of Executive Order 12372,
Intergovernmental Consultation, which may require consultation with
State and local officials. A Notice of Final Rule entitled Department
Programs and Activities Excluded from Executive Order 12372 (50 FR
47034) exempts RUS loans and loan guarantees from coverage under this
order.
Executive Order 12778
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule will not: (1) Preempt any State or local
laws, regulations. or policies; (2) Have any retroactive effect; and
(3) Require administrative proceedings before parties may file suit
challenging the provisions of this rule.
Background
The Federal Crop Insurance Reform and Department of Agriculture
Reorganization Act of 1994 (Pub. L. 103-354, 101 Stat. 3178), signed by
President Clinton on October 13, 1994, provides for the establishment
of RUS as successor to REA with respect to various programs, including
the electric loan program established by the Rural Electrification Act
of 1936, as amended, (the RE Act) (7 U.S.C. 901 et seq.). On October
20, 1994, the Secretary of Agriculture issued Secretary's Memorandum
1010-1, establishing RUS and abolishing REA. Therefore, RUS is
publishing this final rule that was previously proposed by REA.
Pursuant to the RE Act, RUS hereby amends 7 CFR chapter XVII, by
revising Part 1726, Electric System Construction Policies and
Procedures. This revised part contains the policies and the procedures
applicable to RUS borrowers and contractors when purchasing materials
and equipment and constructing electric system facilities by contract
or force account (the RUS borrower's own construction crews).
These policies and the procedures implement certain provisions of
the RUS standard form of loan documents regarding the borrower's
purchase of materials and equipment and the construction of its
electric system by contract or force account. In order to facilitate
the programmatic interests of the RE Act, and, in order to assure that
loans made or guaranteed by RUS are adequately secured, RUS, as a
secured lender, has established certain standards and specifications
for materials, equipment, and the construction of electric systems. The
use of standard forms and procurement procedures helps assure RUS that:
(1) appropriate standards and specifications are maintained; (2) RUS's
loan security is not adversely affected; and (3) loan and loan
guarantee funds are used effectively and for the intended purposes.
The previous policies and procedures were set forth in REA Bulletin
40-6, Construction Methods and Purchase of Materials and Equipment; REA
Bulletin 40-8, Construction Specifications, Drawings and Contract Forms
for Distribution, Transmission and Generation Facilities; REA Bulletin
81-6, Closeout Procedures and Documents for Contract Construction of
Distribution and Transmission Facilities; REA Bulletin 85-1, Closeout
Procedures and Documents for the Contract Construction of Generating
Facilities and Associated Buildings; REA Bulletin 86-1, Closeout
Procedures and Documents for the Construction of Buildings Other than
Generating Plants; and REA Bulletin 86-3, Headquarters Facilities for
Electric Borrowers. The previous policies and procedures are being
changed and updated by this rule. When this rule is effective,
Bulletins 40-6, 81-6, 85-1, 86-1, and 86-3 will be superseded in their
entirety and rescinded, and Bulletin 40-8 will be superseded with
respect to the contract forms listed in this rule.
Bulletin 40-8 will be superseded in its entirety and rescinded when
all forms referenced therein have been promulgated.
Major Changes
The major substantive changes are as follows: [[Page 10153]]
(a) This rule applies to procurement and construction for all
projects which are financed, in whole or in part, with loans made or
guaranteed by RUS, including reimbursable projects. REA Bulletin 40-6
contained the requirements for all procurement and construction,
regardless of the source of funds.
(b) This rule eliminates the previous requirement that RUS approve
subcontracts. (Subcontracts for generating projects were already exempt
from RUS approval.)
(c) This rule changes the dollar thresholds that determine which
procurement procedure is to be used for a project.
(d) This rule raises the dollar thresholds that determine whether
RUS approval of a contract is required and eliminates the requirement
of RUS approval of certain contract amendments.
(e) This rule eliminates the requirement of RUS approval of
borrowers' contracts for headquarters facilities.
(f) This rule adds procedures for procurement of communication and
control facilities.
(g) This rule simplifies the procedures for the closeout of
construction contracts by reducing the number of forms to be submitted
to RUS.
(h) This rule revises the RUS standard contract forms. The major
changes in the contract forms are as follows:
(1) Change the forms to reflect the changes listed above.
(2) Change the insurance and bonding dollar limits as outlined in 7
CFR part 1788.
(3) Change the forms to require prequalification of all bidders.
(4) Change the interest rate on overdue accounts.
(5) Change the ``Buy American'' provision to include Mexico and
Canada in accordance with the North American Free Trade Agreement
Implementation Act of December 8, 1993, Pub. L. 103-182.
(6) Change the indemnification clause (also called ``hold harmless
clause'') to reflect RUS's current policy.
(7) Incorporate certain technical changes relating to wood treating
and right-of-way clearing chemicals. In order to reduce printing cost
and volume, the forms included in this part are condensed, especially
the tables. Also, several forms refer to guide drawings, which do not
contain requirements, and, hence, will not be included. RUS intends to
reformat these forms similar to their current configuration (including
the tables and drawings) and make them available in that format either
from RUS or for purchase from the Government Printing Office. See
Sec. 1726.300 for a list of the standard forms of electric contracts
and where each may be obtained.
This rule was published as a proposed rule at 59 FR 28924, June 3,
1994. In addition, ``Permitted Contract Modifications--
Indemnification,'' dealing with indemnification of the owner by the
contractor in RUS's standard contract forms, was published as a
proposed rule at 59 FR 4603, February 1, 1994. This rule incorporates
the changes and addresses the comments resulting from the proposed rule
``Permitted Contract Modifications--Indemnification.''
Comments
A total of 45 organizations submitted comments on the proposed
rule, including 27 borrowers, the National Rural Electric Cooperative
Association, 6 engineers and engineering organizations, the Power and
Communication Contractors Association, two insurance companies, two
state borrower associations, and 6 others. RUS considered all comments
received. The more significant and most commonly made comments are
addressed herein.
Applicability
Many commenters suggested changes or clarification as to when this
rule applies. This rule has been clarified to state that it applies
when materials, equipment, and construction are financed, in whole or
in part, with loans made or guaranteed by RUS, including reimbursable
projects. A statement regarding jointly owned projects has also been
added. Competitive bidding for new capacity resources, however, is
outside the scope of this rule.
Threshold Limits
There were many comments suggesting changes in the various dollar
limits regarding forms to be used, bidding procedures to be followed,
RUS approvals, etc. Several comments also suggested making the dollar
limits more consistent. RUS has increased the contract approval limit
for transmission construction and for load control, communication, and
SCADA systems for power supply borrowers. RUS believes that the limits,
as revised, are a reasonable balance that allows the borrower
reasonable flexibility while assuring RUS that loan funds are being
used properly. A number of clarifications have been added to avoid
potential ambiguities.
Several commenters expressed concern about using a calendar year
limit, since one or two large procurements could consume the entire
limit, and very small procurements thereafter would be subject to more
stringent requirements. This situation is inherent in any calendar
limit, and RUS expects each borrower to manage its procurement program
by using the procurement procedure (e.g., formal competitive bidding)
or the contract form not subject to the calendar year limit for large
procurements and prudently utilizing the flexibility provided by this
rule so that the calendar year limits are not exceeded.
Bidders Qualifications and Competition
Several commenters suggested that a bidder's performance record,
safety record, and similar factors should be considered when evaluating
bids. RUS strongly disagrees with this. RUS believes that such factors
can and should be considered when determining the bidder's
qualifications to be invited to bid, but it is inappropriate and
unacceptable to evaluate these factors when evaluating a bid from a
qualified and invited bidder. Language has been added to the rule
clarifying this position.
Other comments concerned how to deal with a potential conflict of
interest with a bidder. This rule places primary responsibility on the
borrower's board of directors to determine if a potential conflict of
interest is significant, and RUS believes this is appropriate.
A number of commenters suggested that fewer than three bidders
could represent adequate competition. RUS believes that, for most
procurement, three or more bidders are needed to assure adequate
competition. We have, however, eliminated the requirement that RUS
concurrence be obtained prior to awarding a contract based on fewer
than three bids, providing that the borrower documents that all
reasonable measures were taken to assure adequate competition.
Engineer
Many commenters noted that borrowers often utilize staff engineers,
but the language of the rule generally implies that the engineer is an
outside consultant. RUS agrees with this position and has revised the
language accordingly.
One commenter noted that several engineering contract forms were
not included in the list of RUS standard contract forms. Such forms are
still available and in some cases mandatory, but are outside the scope
of this rule and are contained in other RUS rules.
[[Page 10154]]
Definitions
Various commenters recommended clarifications and changes to the
definitions as well as the addition of several more definitions. RUS
has revised several definitions and added two new definitions. The
other proposed definitions appear to be self-explanatory without
modification.
Several commenters suggested that the contracting committee was not
needed or should have a different make-up. RUS believes that this
committee, required only under informal competitive bidding and
multiparty negotiation, is needed as specified to insure the integrity
of these procedures.
RUS Approvals
Some commenters suggested that RUS approval be automatic after a
specified time period (30 or 60 days) without RUS action. Due to
numerous factors which may affect RUS approval, including other agency
priorities, human resources, and unresolved issues, this change was not
made.
Other commenters felt that RUS approval should not be required to
purchase used equipment and materials. Since most RUS loans are long-
term, RUS must be satisfied that the physical security is adequate, so
RUS will continue to require new equipment and materials unless
specifically approved by RUS.
Many commenters objected to RUS reserving the right to require
contract construction in lieu of force account construction
(Sec. 1726.22). While RUS has rarely exercised this right in the past
and does not expect to use it often in the future, there are
circumstances where such authority has been and may again be needed,
therefore, the language of the rule has not been changed.
Many commenters also objected to certain amendments being subject
to RUS approval even if the original contract was not. The purpose of
this requirement was to prevent changing the RUS approved form of
contract by amendment where the borrower is not permitted to make such
changes in the form without RUS approval. The language of the rule has
been changed to indicate that the approved form of contract cannot be
changed either prior to bidding or by amendment without prior RUS
approval, but the actual amendment would not be subject to RUS
approval.
Other commenters suggested that a RUS approved form of contract
should only be required if RUS approval of the contract is required.
RUS disagrees with this. RUS has eliminated many of the requirements
for RUS approval of contracts based on the requirement that the
borrower use certain forms and procedures for other contracts. This
also applies to the amendment forms, although RUS has determined that
special requirements for amendments for payment for material delivered
are not necessary, so Sec. 1726.26, along with RUS Form 800, have been
deleted.
Documents Submitted to RUS
Many commenters suggested that certain of the documents submitted
to RUS are unnecessary. With regard to ``Proof of Insurance,'' RUS
agrees and has deleted this requirement. RUS believes that the
remaining documents to be submitted are needed to assure that loan
funds are being used properly.
Procurement Procedures
Several commenters requested clarification of the applicability of
some of the procedures and changes to some of the details of the
requirements. Several changes have been made in this area. Other
commenters suggested that the informal bidding procedure and the
multiparty negotiation procedure be changed to allow clarifying
discussions or negotiations, respectively, with only the apparent low
evaluated bidder. This change has not been made. RUS believes that
meeting with at least the three apparent lowest evaluated bidders will
insure adequate competition and fairness without undue burden on the
borrower.
Forms
A number of commenters suggested that computer generated versions
of RUS standard contract forms should be acceptable in addition to the
preprinted versions. RUS agrees with this only for those forms which
are primarily tables (Forms 251 and 254). For the remainder of the
contract forms, RUS continues to believe that the most effective means
of maintaining accurate and recognizable forms is to continue to use
the preprinted version.
Commenters suggested that RUS Form 792 be modified to allow multi-
year contracting and to allow RUS Form 786 to be modified to be a
``purchase only'' contract form. These changes have been made. One
commenter suggested that all contract bonds use RUS Form 168c instead
of RUS Form 168b. Form 168c is currently used when the contractor's
surety has accepted a Small Business Administration guarantee and the
contract is for one million dollars or less. RUS Form 168b has proved
to be a satisfactory bond form for other contracts, so RUS has
determined that it will require the RUS Form 168b where the Form 168c
is not applicable.
A number of other suggestions were made regarding changes to the
contract forms. Some minor changes have been made, but RUS intends to
thoroughly review and revise these forms in the near future, so other
comments will be considered at that time.
Two commenters suggested that RUS prepare a standard form for
``Engineer-Procure-Construct'' (EPC) or ``Turnkey'' type projects.
RUS's experience with such projects indicate that each one tends to be
unique and not well suited to a standard contract form, so therefore,
no attempt has been made to develop such a standard form at this time.
Indemnification
RUS requires borrowers to use standard contract forms for certain
construction, material supply, equipment supply, architectural
services, and engineering services contracts. The construction contract
forms contain a standard indemnification clause (also called ``hold
harmless'') pursuant to which the contractor agrees to indemnify the
owner against certain risks. Some borrowers have requested approval to
incorporate an alternative indemnification clause in certain contracts.
They believe that it provides them indemnification in addition to that
afforded by the currently required clause. Some contractors have
expressed concern about the extent of their potential liability under
such a modified indemnification provision, particularly for certain
actions of the owner. RUS has determined that it is in the Government's
and the borrowers' best interest to have a reasonable and balanced
indemnification provision: one that provides adequate protection for
the borrower while not placing an unreasonable business risk on the
contractor. An indemnification provision that does not adequately
protect the borrower could expose the borrower to liability for damages
which could endanger the Government's loan security. An indemnification
provision which places an unreasonable business risk on the contractor
could result in qualified, capable contractors declining to bid under
such conditions, which could result in reduced competition and higher
costs. It could even result in the borrower being exposed to increased
liability if only financially weak contractors bid, since the
contractor may be financially unable to meet its indemnification
obligations. In response to these requests, ``Permitted Contract
Modifications--Indemnification,'' was published as a proposed rule at
59 FR 4603, February 1, 1994. This final rule incorporates the changes
concerning the [[Page 10155]] indemnification clause in the contract
forms proposed by both of these rules.
In response to the proposed ``Permitted Contract Modifications--
Indemnification,'' the issue which drew the most comments was whether
to extend the indemnification to the borrower's engineer. Nine
organizations (generally engineers or engineering organizations) are in
favor of including the engineer, while two commenters opposed their
inclusion. Since the engineer is independent of the borrower and has no
direct contractual relationship with the contractor, RUS has determined
that a clear separation should be maintained between the engineer and
the contractor. Therefore, the indemnification clause does not extend
to the engineer.
Many commenters expressed the view that the borrower (owner) should
be named as Additional Insured on the contractor's liability insurance
policies. Others felt that the engineer should also be named as
Additional Insured. It appears that naming the borrower (but not the
engineer) as Additional Insured will further RUS'S overall objective
without adding significantly to the cost of the contract. RUS has
decided, therefore, to add a requirement to name the owner as
Additional Insured on the contractor's liability insurance policies.
Several commenters suggested minor wording changes under certain
circumstances to insure that the language accomplishes its purpose. A
section has been added under Section H allowing the borrower to make
certain changes in the language if appropriate in its jurisdiction. One
commenter found the indemnification language to be ``weak at best,''
while two commenters felt that it placed too much burden on the
contractor. RUS believes that the final language included in this rule
reasonably balances the interests of the borrower, the engineer, and
the contractor.
Other Comments
A number of comments were received suggesting or requesting
clarifications or corrections to the language of the rule. These have
generally been made, although certain areas which appeared reasonably
clear were not clarified further.
List of Subjects in 7 CFR Part 1726
Electric power, Loan programs--energy, Reporting and recordkeeping
requirements, Rural areas.
In view of the above, RUS hereby amends 7 CFR chapter XVII by
revising part 1726 to read as follows:
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES
Subpart A--General
Sec.
1726.1-1726.9 [Reserved]
1726.10 Introduction.
1726.11 Purpose.
1726.12 Applicability.
1726.13 Waivers.
1726.14 Definitions.
1726.15 ``Buy American''.
1726.16 Debarment and suspension.
1726.17 Restrictions on lobbying.
1726.18 Preloan contracting.
1726.19 Use of competitive procurement.
1726.20 Standards and specifications.
1726.21 New materials.
1726.22 Methods of construction.
1726.23 Qualification of bidders.
1726.24 Written contracts.
1726.25 Subcontracts.
1726.26-1726.34 [Reserved]
1726.35 Submission of documents to RUS.
1726.36 Documents subject to RUS approval.
1726.37 OMB control number.
1726.38-1726.49 [Reserved]
Subpart B--Distribution Facilities
1726.50 Distribution line materials and equipment.
1726.51 Distribution line construction.
1726.52-1726.74 [Reserved]
Subpart C--Substation and Transmission Facilities
1726.75 General.
1726.76 Substation and transmission line materials and equipment.
1726.77 Substation and transmission line construction.
1726.78-1726.124 [Reserved]
Subpart D--Generation Facilities
1726.125 Generating plant facilities.
1726.126-1726.149 [Reserved]
Subpart E--Buildings
1726.150 Headquarters buildings.
1726.151-1726.174 [Reserved]
Subpart F--General Plant
1726.175 General plant materials.
1726.176 Communications and control facilities.
1726.177-1726.199 [Reserved]
Subpart G--Procurement Procedures
1726.200 General requirements.
1726.201 Formal competitive bidding.
1726.202 Informal competitive bidding.
1726.203 Multiparty negotiation.
1726.204 Multiparty unit price quotations.
1726.205 Multiparty lump sum quotations.
1726.206-1726.249 [Reserved]
Subpart H--Modifications to RUS Standard Contract Forms
1726.250 General.
1726.251 Prior approved contract modification related to price
escalation on transmission equipment, generation equipment, and
generation construction contracts.
1726.252 Prior approved contract modification related to liability
for special and consequential damages.
1726.253 Prior approved contract modification related to
alternative bid provision for payment to contractor for bulk
purchase of materials.
1726.254 Prior approved contract modifications related to RUS
approval of contracts and amendments and modified bidding
requirements.
1726.255 Prior approved contract modifications related to
indemnification.
1726.256-1726.299 [Reserved]
Subpart I--RUS Standard Forms
1726.300 List of RUS standard contracting forms for electric
systems.
1726.301 Use of printed forms.
1726.302 RUS approved forms of contract.
1726.303 Interest on overdue accounts.
1726.304-1726.309 [Reserved]
1726.310 Contractor's bond, RUS Form 168b.
1726.311 Contractor's bond, RUS Form 168c.
1726.312 Construction contract amendment, RUS Form 180.
1726.313 Certificate of completion, contract construction for
buildings, RUS Form 181.
1726.314 Certificate of completion, contract construction, RUS Form
187.
1726.315 Equipment contract, RUS Form 198.
1726.316-1726.319 [Reserved]
1726.320 Construction contract, generating, RUS Form 200.
1726.321 Right-of-way clearing contract, RUS Form 201.
1726.322 Transmission system right-of-way clearing contract, RUS
Form 203.
1726.323 Certificate (Buy America), RUS Form 213.
1726.324 Waiver and release of lien, RUS Form 224.
1726.325 Certificate of contractor, RUS Form 231.
1726.326 Construction or equipment contract amendment, RUS Form
238.
1726.327 Material receipt, RUS Form 251.
1726.328 Construction inventory (for labor and material contract),
RUS Form 254.
1726.329 Contract to construction buildings, RUS Form 257.
1726.330 [Reserved]
1726.331 Bid bond, RUS Form 307.
1726.332-1726.339 [Reserved]
1726.340 Substation and switching station erection contract, RUS
Form 764.
1726.341 Electric system communications and control equipment
contract, RUS Form 786.
1726.342 Distribution line extension construction contract (labor
and materials), RUS Form 790.
1726.343 Distribution line extension construction contract (labor
only), RUS Form 792.
1726.344 [Reserved]
1726.345 Certificate of contractor and indemnity agreement (line
extensions), RUS Form 792b.
1726.346 Supplemental contract for additional project, RUS Form
792c.
1726.347-1726.350 [Reserved] [[Page 10156]]
1726.351 Electric system construction contract (labor and
materials), RUS Form 830.
1726.352 Electric transmission construction contract (labor and
materials), RUS Form 831.
1726.353-1726.399 [Reserved]
Subpart J--Contract Closeout
1726.400 Final contract amendment.
1726.401 Material contract closeout.
1726.402 Equipment contract closeout.
1726.403 Project construction contract closeout.
1726.404 Non-site specific construction contract closeout.
1726.405 Inventory of work orders (RUS Form 219).
Authority: 7 U.S.C. 901 et seq., 1921 et seq.; Pub. L. 103-354,
108 Stat. 3178 (7 U.S.C. 6941 et seq.).
Subpart A--General
Secs. 1726.1-1726.9 [Reserved]
Sec. 1726.10 Introduction.
The policies, procedures and requirements included in this part are
intended to implement provisions of the standard form of loan documents
between the Rural Utilities Service (RUS) and its electric borrowers.
Unless prior written approval is received from RUS, borrowers are
required to comply with RUS policies and procedures as a condition to
RUS providing loans, loan guarantees, or reimbursement of general funds
for the construction and improvement of electric facilities.
Requirements relating to RUS approval of plans and specifications,
duties and responsibilities of the engineer and architect, and
engineering and architectural services contracts, are contained in
other RUS regulations. The terms ``RUS form'', ``RUS standard form'',
``RUS specification'', ``and RUS bulletin'' have the same meanings as
the terms ``REA form'', ``REA standard form'', ``REA specification'',
``and REA bulletin'', respectively, unless otherwise noted.
Sec. 1726.11 Purpose.
Each borrower is responsible for the planning, design,
construction, operation and maintenance of its electric system. RUS, as
a secured lender, has a legitimate interest in accomplishing RUS's
programmatic objectives, and in assuring that the costs of
construction, materials, and equipment are reasonable and economical
and that the property securing the loans is constructed adequately to
serve the purposes for which it is intended.
Sec. 1726.12 Applicability.
The requirements of this part apply to the procurement of materials
and equipment for use by electric borrowers in their electric systems
and to the construction of their electric systems if such materials,
equipment, and construction are financed, in whole or in part, with
loans made or guaranteed by RUS, including reimbursable projects. In
order for general fund expenditures for procurement or construction to
be eligible for reimbursement from loan funds, the borrower must comply
with the procedures required by this part. In the case of jointly owned
projects, RUS will determine on a case by case basis the applicability
of the requirements of this part.
Sec. 1726.13 Waivers.
The Administrator may waive, for good cause on a case by case
basis, certain requirements and procedures of this part. RUS reserves
the right, as a condition of providing loans, loan guarantees, or other
assistance, to require any borrower to make any specification,
contract, or contract amendment subject to the approval of the
Administrator.
Sec. 1726.14 Definitions.
Terms used in this part have the meanings set forth in 7 CFR
1710.2. References to specific RUS forms and other RUS documents, and
to specific sections or lines of such forms and documents, shall
include the corresponding forms, documents, sections and lines in any
subsequent revisions of these forms and documents. In addition to the
terms defined in 7 CFR 1710.2, the following terms have the following
meanings for the purposes of this part:
Approval of proposed construction means RUS approval of a
construction work plan or other appropriate engineering study and RUS
approval, for purposes of system financing, of the completion of all
appropriate requirements of part 1794 of this chapter.
Architect means a registered or licensed person employed by the
borrower to provide architectural services for a project and duly
authorized assistants and representatives.
Bona fide bid means a bid which is submitted by a contractor on the
borrower's list of qualified bidders for the specific contract, prior
to bid opening.
``Buy American'' certificate means a certification that the
contractor has complied with the ``Buy American'' requirement (see
Sec. 1726.15).
Competitive procurement means procurement of goods or services
based on lowest evaluated bid for similar products or services when
three or more bids are received.
Construction unit means a specifically defined portion of a
construction project containing materials, labor, or both, for purposes
of bidding and payment.
Contracting committee means the committee consisting of three to
five members representing the borrower's management and board of
directors and the engineer. The contracting committee represents the
borrower during contract clarifying discussions or negotiations under
informal competitive bidding or multiparty negotiation, respectively.
Encumbrance means the process of approval for advance of loans
funds by RUS.
Engineer means a registered or licensed person, who may be a staff
employee or an outside consultant, to provide engineering services and
duly authorized assistants and representatives.
Equipment means a major component of an electric system, e.g., a
substation transformer, heat exchanger or a transmission structure.
Force account construction means construction performed by the
borrower's employees.
Formal competitive bidding means the competitive procurement
procedure wherein bidders submit sealed proposals for furnishing the
goods or services stipulated in the specification. Bids are publicly
opened and read at a predetermined time and place. If a contract is
awarded, it must be to the lowest evaluated responsive bidder (see
Sec. 1726.201).
Goods or services means materials, equipment, or construction, or
any combination thereof.
Informal competitive bidding means the competitive procurement
procedure which provides for private opening of bids and allows
clarifying discussions between the contracting committee and the
bidders. During the clarifying discussions any exceptions to the bid
documents must be eliminated, or the bid rejected, so that the contract
is awarded to the lowest evaluated responsive bidder (see
Sec. 1726.202).
Material means miscellaneous hardware which is combined with
equipment to form an electric system, e.g., poles, insulators, or
conductors.
Minor error or irregularity means a defect or variation in a bid
that is a matter of form and not of substance. Errors or irregularities
are ``minor'' if they can be corrected or waived without being
prejudicial to other bidders and when they do not affect the price,
quantity, quality, or timeliness of construction. A minor error or
[[Page 10157]] irregularity is not an exception for purposes of
determining whether a bid is responsive.
Minor modification or improvement means a project where the cost is
less than $50,000, exclusive of the cost of owner furnished materials.
Multiparty lump sum quotations means the procurement of goods or
services on a lump sum basis, based on the lowest evaluated offering,
when three or more offers are received. (See Sec. 1726.205).
Multiparty negotiation means the procurement procedure where three
or more bids are received and provides for negotiations between the
contracting committee and each bidder to determine the bid which is in
the borrower's best interest (see Sec. 1726.203).
Multiparty unit price quotations means the procurement of goods or
services on a unit price basis, based on the lowest evaluated offering,
when three or more offers are received (See Sec. 1726.204).
Net utility plant (NUP) means Part C, Line 5 of RUS Form 7 for
distribution borrowers or Section B, Line 5 of RUS Form 12a for power
supply borrowers for the immediately preceding calendar year.
Procurement method means a procedure, including, but not limited
to, those in subpart G of this part, that a borrower uses to obtain
goods and services.
Owner furnished materials means materials or equipment or both
supplied by the borrower for installation by the contractor.
Responsive bid means a bid with no exceptions or non-minor errors
or irregularities on any technical requirement or in the contract terms
and conditions.
RUS approval means written approval by the Administrator or a
representative with delegated authority. RUS approval must be in
writing, except in emergency situations where RUS approval may be given
over the telephone followed by a confirming letter.
Unit prices means individual prices for specific construction units
defined in accordance with RUS approved units specified in RUS standard
contract forms.
Sec. 1726.15 ``Buy American''.
The borrower must ensure that all materials and equipment financed
with loans made or guaranteed by RUS complies with the ``Buy American''
provisions of the Rural Electrification Act of 1938 (7 U.S.C. 903
note), as amended by the North American Free Trade Agreement
Implementation Act (107 Stat 2129). When a ``Buy American'' certificate
is required by this part, this must be on RUS Form 213.
Sec. 1726.16 Debarment and suspension.
Borrowers are required to comply with certain requirements on
debarment and suspension in connection with procurement activities as
set forth in part 3017 of this title, particularly with respect to
lower tier transactions, e.g., procurement contracts for goods or
services.
Sec. 1726.17 Restrictions on lobbying.
Borrowers are required to comply with certain restrictions and
requirements in connection with procurement activities as set forth in
part 3018 of this title.
Sec. 1726.18 Preloan contracting.
Borrowers must consult with RUS prior to entering into any contract
for material, equipment, or construction if a construction work plan,
general funds, loan or loan guarantee for the proposed work has not
been approved. While the RUS staff will work with the borrower in such
circumstances, nothing contained in this part is to be construed as
authorizing borrowers to enter into any contract before the
availability of funds has been ascertained by the borrower and all the
requirements of part 1794 of this chapter, Environmental Policies and
Procedures for Electric and Telephone Borrowers, have been fulfilled.
Sec. 1726.19 Use of competitive procurement.
RUS borrowers' procurement is not subject to the provisions of the
Federal Acquisition Regulation (48 CFR chapter 1); however, since
borrowers receive the benefit of Federal financial assistance borrowers
must use competitive procurement to the greatest extent practical. The
borrower must use competitive procurement for obtaining all goods or
services when a RUS loan or loan guarantee is involved except:
(a) As specifically provided for in subparts B through F of this
part; or
(b) A waiver is granted.
Sec. 1726.20 Standards and specifications.
All materials, equipment, and construction must meet the minimum
requirements of all applicable RUS standards and specifications. (See
Part 1728, Electric Standards and Specifications for Materials and
Construction, of this chapter, which is applicable regardless of the
source of funding.)
Sec. 1726.21 New materials.
The borrower shall purchase only new materials and equipment unless
otherwise approved by RUS, on a case by case basis, prior to the
purchase.
Sec. 1726.22 Methods of construction.
The borrower is generally responsible for determining whether
construction will be by contract or force account. If construction is
by contract, the borrower must determine whether materials will be
supplied by the contractor or will be furnished by the borrower. RUS
reserves the right to require contract construction in lieu of force
account construction on a case by case basis.
Sec. 1726.23 Qualification of bidders.
(a) Qualified bidder list (QBL). The borrower shall (acting through
its engineer, if applicable) review the qualifications of prospective
bidders for contract construction and for material and equipment
procurement, and select firms qualified for inclusion on the borrower's
list of qualified bidders for each contract. (See also Sec. 1726.16 and
Sec. 1726.17.) A bid may not be solicited from a prospective bidder or
opened by the borrower unless that bidder has been determined to be a
qualified bidder for the contract. When preparing the QBL, in addition
to the actual experience of the borrower, if any, in dealing with a
prospective bidder, the borrower may solicit information from that
bidder or from other parties with firsthand experience regarding the
firm's capabilities and experience. It is also important to consider
the firm's performance record, safety record, and similar factors in
determining whether to include that firm on the QBL, since the borrower
may not evaluate these factors when evaluating a bid from a qualified
and invited bidder.
(b) Conflict of interest. If there is a relationship between the
borrower or engineer and a prospective bidder which might cause the
borrower or engineer to have or appear to have a conflict of interest,
that prospective bidder shall not be included on the QBL unless the
engineer discloses the nature of the relationship to the borrower. In
the case of the borrower, if its employees or directors have a
relationship with a prospective bidder, the prospective bidder shall
not be included on the qualified bidders list unless the nature of the
relationship is disclosed to the board of directors, and the board of
directors specifically approves the inclusion of that bidder in light
of the potential for a conflict of interest.
Sec. 1726.24 Written contracts.
(a) General. Procurement of goods or services must be by written
contract or written purchase order. The borrower [[Page 10158]] shall
use a RUS Approved Form of Contract for such contracts where required
by subparts B through F of this part.
(b) Amendments to contracts.--(1) Contract forms. The borrower must
use RUS Form 180, Construction Contract Amendment, for any change or
addition in a distribution line construction contract. The borrower
must use RUS Form 238, Construction or Equipment Contract Amendment,
for any change or addition in any other contract for construction, or
for materials or equipment.
(2) Special considerations. Each time an amendment to a
construction contract is executed, the borrower must ensure that
contractor's bond is adequate, that all necessary licenses and permits
have been obtained, and that any environmental requirements associated
with the proposed construction have been met.
(3) Amendment approval requirements. (i) If a RUS approved form of
contract is required by this part, an amendment must not alter the
terms and conditions of the RUS approved form of contract without prior
RUS approval.
(ii) The borrower must make a contract amendment subject to RUS
approval if the underlying contract was made subject to RUS approval
and the total amended contract price exceeds 120 percent of the
original contract price (excluding any escalation provision contained
in the contract).
(iii) Contract amendments, except as provided in paragraph
(b)(3)(ii) of this section, are not subject to RUS approval and need
not be submitted to RUS unless specifically requested by RUS on a case
by case basis.
Sec. 1726.25 Subcontracts.
The contractor or supplier may use RUS Form 282, Subcontract, for
subcontracts on construction, material or equipment contracts.
Subcontracts are not subject to RUS approval and need not be submitted
to RUS unless specifically requested by RUS on a case by case basis.
Secs. 1726.26-1726.34 [Reserved]
Sec. 1726.35 Submission of documents to RUS.
(a) Where to send documents. Documents required to be submitted to
RUS under this part are to be sent to the office of the borrower's
respective RUS Regional Director, the Power Supply Division Director,
or such other office of RUS as designated by RUS (see part 1700 of this
chapter.)
(b) Borrower certification. When a borrower certification is
required by this part, it must be made by the borrower's manager unless
the board of directors specifically authorizes another person to make
the required certification. In such case, a certified copy of the
specific authorizing resolution must accompany the document or be on
file with RUS.
(c) Contracts requiring RUS approval. The borrower shall submit to
RUS three copies of each contract that is subject to RUS approval under
subparts B through F of this part. At least one copy of each contract
must be an original signed in ink (i.e., no facsimile signature). Each
contract submittal must be accompanied by:
(1) A bid tabulation and evaluation and, if applicable, a written
recommendation of the architect or engineer.
(2) For awards made under the informal competitive bidding
procedure or the multiparty negotiation procedure, a written
recommendation of the contracting committee (See Secs. 1726.202 and
1726.203).
(3) Three copies of an executed contractor's bond on RUS approved
bond forms as required in the contract form (at least one copy of which
must be an original signed in ink) and one copy of the bid bond or
facsimile of the certified check.
(4) A certification by the borrower or chairperson of the
contracting committee, as applicable, that the appropriate bidding
procedures were followed as required by this part.
(5) A certified copy of the board resolution awarding the contract.
(6) Evidence of clear title to the site for substations and
headquarters construction contracts, if not previously submitted.
(7) Documentation that all reasonable measures were taken to assure
competition if fewer than three bids were received.
(d) Contract amendments requiring RUS approval. The borrower must
submit to RUS three copies of each contract amendment (at least one
copy of which must be an original signed in ink) which is subject to
RUS approval under Sec. 1726.24(b). Each contract amendment submittal
to RUS must be accompanied by:
(1) A certified copy of the board resolution approving the
amendment; and
(2) A bond extension, where necessary.
(e) Encumbrance of loan or loan guarantee funds. (1) For contracts
subject to RUS approval, the submittals required under paragraph (c) of
this section will initiate RUS action to encumber loan or loan
guarantee funds for such contracts.
(2) For contracts not subject to RUS approval (except for
generation projects), loan or loan guarantee funds will normally be
encumbered using RUS Form 219, Inventory of Work Orders, after closeout
of the contracts. In cases where the borrower can show good cause for a
need for immediate cash, the borrower may request encumbrance of loan
or loan guarantee funds based on submittal of a copy of the executed
contract, provided it meets all applicable RUS requirements.
(3) For generation project contracts not subject to RUS approval,
the borrower must submit to RUS the following documentation:
(i) A brief description of the scope of the contract, including
contract identification (name, number, etc.);
(ii) Contract date;
(iii) Contractor's name;
(iv) Contract amount;
(v) Bidding procedure used;
(vi) Borrower certification that:
(A) The board of directors approved the contract;
(B) The bidding procedures and contract award for each contract
were in conformance with the requirements of Part 1726, Electric System
Construction Policies and Procedures;
(C) If a RUS approved form of contract is required by this part,
the terms and conditions of the RUS approved form of contract have not
been altered;
(D) If RUS has approved plans and specifications for the contract,
the contract was awarded on the basis of those plans and
specifications; and
(E) No restriction has been placed on the borrower's right to
assign the contract to RUS or its successors.
(4) Contract amendments. (i) For amendments subject to RUS
approval, the submittals required under paragraph (c) of this section
will initiate RUS action to encumber loan or loan guarantee funds for
contract amendments requiring RUS approval.
(ii) For amendments not subject to RUS approval (except generation
projects), loan or loan guarantee funds will normally be encumbered
using RUS Form 219, Inventory of Work Orders, after closeout of the
contracts. In cases where the borrower can justify a need for immediate
cash, the borrower may request encumbrance of loan or loan guarantee
funds based on submittal of a copy of the executed amendment, providing
it meets all applicable RUS requirements.
(iii) For each generation project contract amendment not subject to
RUS approval, the borrower must submit to RUS the following information
and documentation:
(A) The contract name and number; [[Page 10159]]
(B) The amendment number;
(C) The amendment date;
(D) The dollar amount of the increase or the decrease of the
amendment;
(E) Borrower certification that:
(1) The amendment was approved in accordance with the policy of the
board of directors (the borrower must ensure that RUS has a certified
copy of the board resolution establishing such policy);
(2) If a RUS approved form of contract is required by this part,
the terms and conditions of the RUS approved form of contract has not
been altered; and
(3) No restriction has been placed on the borrower's right to
assign the contract to RUS or its successors.
Sec. 1726.36 Documents subject to RUS approval.
Unless otherwise indicated, the borrower shall make all contracts
and amendments that are subject to RUS approval effective only upon RUS
approval.
Sec. 1726.37 OMB control number.
The collection of information requirements in this part have been
approved by the Office of Management and Budget and assigned OMB
control number 0572-0107.
Secs. 1726.38-1726.49 [Reserved]
Subpart B--Distribution Facilities
Sec. 1726.50 Distribution line materials and equipment.
(a) Contract forms. (1) The borrower shall use RUS Form 198,
Equipment Contract, for purchases of equipment where the total cost of
the contract is $500,000 or more.
(2) The borrower may, in its discretion, use RUS Form 173,
Materials Contract, RUS Form 198, Equipment Contract, or a written
purchase order for purchases of equipment of less than $500,000 and for
all materials.
(b) Standards and specifications. Distribution line materials and
equipment must meet the minimum requirements of RUS standards as
determined in accordance with the provisions of part 1728 of this
chapter, Electric Standards and Specifications for Materials and
Construction. The borrower must obtain RUS approval prior to purchasing
any unlisted distribution line material or equipment of the types
listed in accordance with the provisions of part 1728 of this chapter.
(c) Procurement procedures. It is the responsibility of each
borrower to determine the procurement method that best meets its needs
for the purchase of material and equipment to be used in distribution
line construction.
(d) Contract approval. Contracts for purchases of distribution line
materials and equipment are not subject to RUS approval and need not be
submitted to RUS unless specifically requested by RUS on a case by case
basis.
Sec. 1726.51 Distribution line construction.
(a) Contract forms. The borrower must use RUS Form 201, 790, 792,
or 830, as outlined in this paragraph (a), for distribution line
construction, except for minor modifications or improvements.
(1) The borrower may use RUS Form 790, Distribution Line Extension
Construction Contract (Labor and Materials), or RUS Form 792,
Distribution Line Extension Construction Contract (Labor only) under
the following circumstances:
(i) For contracts for which the borrower supplies all materials and
equipment; or
(ii) For non-site specific construction contracts accounted for
under the work order procedure; or
(iii) If neither paragraph (a)(1)(i) or (a)(1)(ii) of this section
are applicable, the borrower may use RUS Form 790 or 792 for contracts,
up to a cumulative total of $250,000 or one percent of NUP, whichever
is greater, per calendar year of distribution line construction,
exclusive of the cost of owner furnished materials and equipment
(2) The borrower must use RUS Form 830, Electric System
Construction Contract (Labor and Materials), for all other distribution
line construction. Where distribution lines are being constructed
incidental to transmission line construction, the borrower must use RUS
Form 831, Electric Transmission Construction Contract.
(3) The borrower must use RUS Form 201, Right-of-Way Clearing
Contract, for new distribution line construction right-of-way clearing
when done separately from work performed under RUS Form 830.
(b) Procurement procedures. (1) It is the responsibility of each
borrower to determine the procurement method that best meets its needs
to award contracts in amounts of up to a cumulative total of $250,000
or one percent of NUP, whichever is greater, per calendar year of
distribution line construction (including minor modifications or
improvements), exclusive of the cost of owner furnished materials and
equipment.
(2) In addition to the cumulative total stipulated in paragraph
(b)(1) of this section, a borrower may use Multiparty Unit Price
Quotations to award contracts in amounts of up to a cumulative total of
$350,000 or 1.5 percent of NUP, whichever is greater, per calendar year
of distribution line construction (including minor modifications or
improvements), exclusive of the cost of owner furnished materials and
equipment.
(3) The borrower shall use formal competitive bidding for all other
distribution line contract construction. The amount of contracts bid
using the formal competitive bidding procedure do not apply to the
cumulative total stipulated in paragraph (b)(1) of this section.
(4) An amendment which increases the scope of the contract by
adding a project is not considered competitively bid, therefore, the
amount of that amendment does apply to the cumulative total stipulated
in paragraph (b)(1) of this section.
(c) Contract approval. Contracts for distribution line construction
are not subject to RUS approval and need not be submitted to RUS unless
specifically requested by RUS on a case by case basis.
Secs. 1726.52-1726.74 [Reserved]
Subpart C--Substation and Transmission Facilities
Sec. 1726.75 General.
As used in this part, ``substations'' includes substations,
switching stations, metering points, and similar facilities.
Sec. 1726.76 Substation and transmission line materials and equipment.
(a) Contract forms. (1) The borrower must use RUS Form 198,
Equipment Contract, for purchases of equipment where the total cost of
the contract is $500,000 or more.
(2) The borrower may, in its discretion, use RUS Form 173,
Materials Contract, RUS Form 198, Equipment Contract, or a written
purchase order for purchases of equipment of less than $500,000 and for
all materials.
(b) Standards and specifications. Substation and transmission line
materials and equipment must meet the minimum requirements of RUS
standards as determined in accordance with the provisions of part 1728
of this chapter, Electric Standards and Specifications for Materials
and Construction. The borrower must obtain RUS approval prior to
purchasing of any unlisted substation or transmission line material or
equipment of the types listed in accordance with the provisions of part
1728 of this chapter.
(c) Procurement procedures. It is the responsibility of each
borrower to determine the procurement method that best meets its needs
for purchase of material and equipment to be used in
[[Page 10160]] substation and transmission line construction.
(d) Contract approval. Contracts for purchases of substation and
transmission line materials and equipment are not subject to RUS
approval and need not be submitted to RUS unless specifically requested
by RUS on a case by case basis.
Sec. 1726.77 Substation and transmission line construction.
(a) Contract forms. (1) The borrower must use RUS Form 764,
Substation Erection Contract, for construction of substations, except
for minor modifications or improvements. The borrower must use RUS Form
831, Electric Transmission Construction Contract for projects where
substations are incidental to transmission line construction and are to
be constructed under the same contract.
(2) The borrower must use RUS Form 831, Electric Transmission
Construction Contract, for construction of transmission lines (except
for minor modifications or improvements).
(3) The borrower must use RUS Form 203, Transmission System Right-
of-Way Clearing Contract, for new transmission line construction right-
of-way clearing when right-of-way clearing is performed separately from
work performed under RUS Form 831.
(b) Procurement procedures. (1) It is the responsibility of each
borrower to determine the procurement method that best meets its needs
to award contracts not requiring RUS approval in amounts of up to a
cumulative total of $250,000 or one percent of NUP (not to exceed
$2,000,000), whichever is greater, per calendar year of substation and
transmission line construction (including minor modifications or
improvements), exclusive of the cost of owner furnished materials and
equipment.
(2) The borrower shall use formal competitive bidding for all other
contract construction, including all contracts requiring RUS approval.
The amount of contracts bid using the formal competitive bidding
procedure do not apply to the cumulative total stipulated in paragraph
(b)(1) of this section.
(3) An amendment which increases the scope of the contract by
adding a project is not considered competitively bid, therefore, the
amount of that amendment does apply to the cumulative total stipulated
in paragraph (b)(1) of this section.
(c) Contract approval. Individual contracts in amounts of $250,000
or more or one percent of NUP (not to exceed $500,000 for distribution
borrowers or $1,500,000 for power supply borrowers), whichever is
greater, exclusive of the cost of owner furnished materials and
equipment, are subject to RUS approval.
Secs. 1726.78-1726.124 [Reserved]
Subpart D--Generation Facilities
Sec. 1726.125 Generating plant facilities.
This section covers the construction of all portions of a
generating plant, including plant buildings and the generator step-up
transformer. Generally, the transmission switchyard will be covered
under this section during initial construction of the plant. Subpart C
of this part covers subsequent modifications to transmission
switchyards. Warehouses and equipment service type buildings are
covered under subpart E of this part.
(a) Contract forms. (1) The borrower must use RUS Form 198,
Equipment Contract, for the purchase of generating plant equipment in
the amount of $1,500,000 or more and for any generating plant equipment
contract requiring RUS approval.
(2) The borrower must use RUS Form 200, Construction Contract--
Generating, for generating project construction contracts in the amount
of $1,500,000 or more and for any generating project construction
contract requiring RUS approval.
(3) The borrower may, in its discretion, use other contract or
written purchase order forms for those contracts in amounts of less
than $1,500,000 and that do not require RUS approval.
(b) Plans and specifications. The borrower shall obtain RUS
approval of the plans and specifications for generating plant equipment
prior to issuing invitations to bid for any contract subject to RUS
approval as determined under this subpart and for any contract for
generating plant equipment or construction which will cost $1,500,000
or more. Plans and specifications for other equipment and construction
contracts do not require RUS approval and need not be submitted to RUS
unless specifically requested by RUS on a case by case basis.
(c) Procurement procedures. (1) It is the responsibility of each
borrower to determine the procurement method that best meets its needs
to award contracts in amounts of less than $1,500,000 each.
(2) If the amount of the contract is $1,500,000 or more or if the
contract requires RUS approval, the borrower must use formal or
informal competitive bidding to award the contract.
(3) Where formal or informal competitive bidding is not applicable,
or does not result in a responsive bid, multiparty negotiation may be
used only after RUS approval is obtained.
(d) Contract approval. During the early stages of generating plant
design or project design, RUS will, in consultation with the borrower
and its consulting engineer, identify the specific contracts which
require RUS approval based on information supplied in the plant design
manual. The following are typical contracts for each type of generating
project which will require RUS approval. Although engineering services
are not covered by this part, they are listed in this paragraph (d) to
emphasize that RUS approval is required for all major generating
station engineering service contracts in accordance with applicable RUS
rules. For types of projects not shown, such as nuclear and alternate
energy projects, RUS will identify the specific contracts which will
require RUS approval on a case by case basis.
(1) Fossil generating stations. Engineering services, steam
generator, turbine generator, flue gas desulfurization system,
particulate removal system, electric wiring and control systems,
mechanical equipment installation (including turbine installation and
plant piping), power plant building (foundation and superstructure),
site preparation, coal unloading and handling facilities, main step-up
substation, cooling towers, and dams or reservoirs.
(2) Diesel and combustion turbine plants. Engineering services,
prime mover and generator, building (foundation and superstructure),
and electrical control systems.
(3) Hydro installations. Engineering services, turbine/generator,
civil works and powerhouse construction, electrical control system, and
mechanical installation.
Secs. 1726.126-1726.149 [Reserved]
Subpart E--Buildings
Sec. 1726.150 Headquarters buildings.
This section includes headquarters buildings such as warehouses and
equipment service type buildings. Generating plant buildings are
covered under subpart D of this part.
(a) Contract forms. The borrower must use RUS Form 257, Contract to
Construct Buildings, for all contracts for construction of new
headquarters facilities, and additions to, or modifications of existing
headquarters facilities (except for minor modifications or
improvements).
(b) Procurement procedures. A borrower may use Multiparty Lump
[[Page 10161]] Sum Quotations to award contracts in amounts of up to a
cumulative total of $250,000 or one percent of NUP (not to exceed
$1,000,000), whichever is greater, per calendar year of headquarters
construction (including minor modifications or improvements.) The
borrower must use formal competitive bidding for all other headquarters
contract construction.
(c) Contract approval. Contracts for headquarters construction are
not subject to RUS approval and need not be submitted to RUS unless
specifically requested by RUS on a case by case basis.
Secs. 1726.151-1726.174 [Reserved]
Subpart F--General Plant
Sec. 1726.175 General plant materials.
This section covers items such as office furniture and equipment;
transportation equipment and accessories, including mobile radio
systems, stores and shop equipment, laboratory equipment, tools and
test equipment.
(a) Contract forms. The borrower may, in its discretion, use RUS
Form 173, Material Contract, RUS Form 198, Equipment Contract, or a
written purchase order.
(b) Procurement procedures. It is the responsibility of each
borrower to determine the procurement method that best meets its needs
for purchase of general plant material and equipment.
(c) Contract approval. Contracts for the purchase of general plant
items are not subject to RUS approval and need not be submitted to RUS
unless specifically requested by RUS on a case by case basis.
Sec. 1726.176 Communications and control facilities.
This section covers the purchase of microwave and power line
carrier communications systems, load control, and supervisory control
and data acquisition (SCADA) systems. Mobile radio systems are covered
as general plant materials in Sec. 1726.175.
(a) Power line carrier systems. Power line carrier equipment will
frequently be purchased as part of a substation and will be included in
the complete substation plans and specifications. When purchased in
this manner, the requirements of subpart C of this part, Substation and
Transmission Facilities, will apply. If obtained under a contract for
only a power line carrier system, the requirements of paragraph (b) of
this section apply.
(b) Load control systems, communications systems, and SCADA
systems--(1) Contract forms. The borrower must use RUS Form 786,
Electric System Communication and Control Equipment Contract. This form
may be modified to be a ``purchase only'' contract form.
(2) Procurement procedures. (i) It is the responsibility of each
borrower to determine the procurement method that best meets its needs
to award contracts not requiring RUS approval in amounts of up to a
cumulative total of $250,000 or one percent of NUP (not to exceed
$2,000,000), whichever is greater, per calendar year of communications
and control facilities construction (including minor modifications or
improvements.), exclusive of the cost of owner furnished materials and
equipment.
(ii) The borrower must use multiparty negotiation for all other
communications and control facilities contract construction, including
all contracts requiring RUS approval. The amount of contracts bid using
the multiparty negotiation procedure do not apply to the cumulative
total stipulated in paragraph (b)(2)(i) of this section.
(iii) An amendment which increases the scope by adding a project is
not considered competitively bid, therefore, the amount of that
amendment does apply to the cumulative total stipulated in paragraph
(b)(2)(i) of this section.
(3) Contract approval. Individual contracts in amounts of $250,000
or more or one percent of NUP (not to exceed $500,000 for distribution
borrowers or $1,500,000 for power supply borrowers), whichever is
greater, exclusive of the cost of owner furnished materials and
equipment, are subject to RUS approval.
Secs. 1726.177-1726.199 [Reserved]
Subpart G--Procurement Procedures
Sec. 1726.200 General requirements.
The borrower must use the procedures described in this subpart
where such procedures are required under subparts B through F of this
part. The borrower must ensure that arrangements prior to announcement
of the award of the contract are such that all bidders are treated
fairly and no bidder is given an unfair advantage over other bidders.
Sec. 1726.201 Formal competitive bidding.
Formal competitive bidding is used for distribution, transmission,
and headquarters facilities, and may be used for generation facilities.
The borrower must use the following procedure for formal competitive
bidding:
(a) Selection of qualified bidders. The borrower (acting through
its engineer, if applicable) will compile a list of qualified bidders
for each proposed contract. The borrower will send invitations to bid
only to persons or organizations on its QBL for the specific project
(see Sec. 1726.23).
(b) Invitations to bid. The borrower (acting through its engineer,
if applicable) is responsible for sending out invitations to
prospective bidders, informing them of scheduled bid openings and
taking any other action necessary to procure full, free and competitive
bidding. The borrower should send out a sufficient number of
invitations in order to assure adequate competition and so that at
least three bids will be received. Subject to the foregoing criteria,
the determination of how many and which bidders will be permitted to
bid will be the responsibility of the borrower.
(c) Evaluation basis. Any factors, other than lowest dollar amount
of the bid, which are to be considered in evaluating the proposals of
qualified bidders (e.g., power consumption, losses, etc.) must be
stated in the ``Notice and Instructions to Bidders.'' The borrower will
not evaluate a bidder's performance record, safety record, and similar
factors when evaluating a bid from a qualified and invited bidder. Such
factors are to be considered when determining whether to include a
particular bidder on the qualified bidders list.
(d) Handling of bids received. The borrower or the engineer, as
applicable, will indicate, in writing, the date and time of receipt by
the borrower or the engineer on the outside envelope of each bid and
all letters and other transmittals amending or modifying the bids. Any
bid received at the designated location after the time specified must
be returned to the bidder unopened.
(e) Bid openings. Bid openings are generally conducted by the
engineer in the presence of bidders and a representative of the
borrower and the borrower's attorney. Each bona fide bid must be opened
publicly and reviewed for any irregularities, errors, or exceptions. It
must be verified that any addendum or supplement to the specification
has been acknowledged by the bidder. The adequacy of bid bonds or
certified checks must be verified at this time.
(f) Conditions affecting acceptability of bids. The borrower must
take the following specified action if any of the following exist:
(1) Fewer than three bona fide bids received. If fewer than three
bona fide bids are received for the contract project, the borrower must
determine that all reasonable measures have been taken to assure
competition prior to awarding the contract. This
[[Page 10162]] determination must be documented and such documentation
submitted to RUS where required by subpart A of this part. The borrower
may, however, elect to reject all bids, make changes in the
specification or the qualified bidders list or both and invite new
bids.
(2) Significant error or ambiguity in the specification. If a
significant error or ambiguity in the specification is found which
could result in the bidders having varying interpretations of the
requirements of the bid, the borrower must either issue an addendum to
each prospective bidder correcting the error or ambiguity before bids
are received, or reject all bids and correct the specification. If a
significant error or ambiguity in the specification is discovered after
the bids are opened, the borrower must reject all bids, correct the
specification and invite new bids.
(3) Minor errors or omissions in the specification. If minor errors
or omissions in the specification are found, the borrower must issue an
addendum to each prospective bidder correcting the error or omission
prior to opening any bids. After bid opening, the error or omission
must be corrected in the executed contract.
(4) Minor errors or irregularities in bid. The borrower may waive
minor errors or irregularities in any bid, if the borrower determines
that such minor errors or irregularities were made through
inadvertence. Any such minor errors or irregularities so waived must be
corrected on the bid in which they occur prior to the acceptance
thereof by the borrower.
(5) Non-minor error or irregularity in bid. If a bid contains a
non-minor error or irregularity, the bid must be rejected and the bid
price must not be disclosed.
(6) Unbalanced bid. If a bid contains disproportionate prices
between labor and materials or between various construction units, the
borrower may reject the bid.
(7) No acceptable price quoted. If none of the bidders quote an
acceptable price, the borrower may reject all bids.
(g) Evaluating bids. The borrower (acting through the engineer, if
applicable) must conduct the evaluation of bids on the basis of the
criteria set out in the ``Notice and Instructions to Bidders.'' The
contract, if awarded, must be awarded to the bidder with the lowest
evaluated responsive bid.
(h) Announcement of bids. If possible, the borrower will announce
bids at the bid opening. However, where extensive evaluation is
required, the borrower may elect to adjourn and make formal written
announcement to all bidders at a later time. Any discrepancy in a
rejected bid must be indicated in the bid announcement.
(i) Award of contract. Upon completion of the bid evaluations and
based upon the findings and recommendations of the borrower's
management and engineer, the borrower's board of directors will either:
(1) Resolve to award the contract to the lowest evaluated
responsive bidder; or
(2) Reject all bids.
(j) Certification by the borrower and its engineer. The borrower
shall certify and the engineer shall certify as follows: ``The
procedures for formal competitive bidding, as described in 7 CFR
1726.201, were followed in awarding this contract.'' The certification
executed by and on behalf of the borrower and its engineer shall be
submitted to RUS in writing where required by subpart A of this part.
Sec. 1726.202 Informal competitive bidding.
Informal competitive bidding may be used for equipment purchases
and generation construction. The borrower must use the following
procedure for informal competitive bidding:
(a) Selection of qualified bidders. The borrower (acting through
its engineer, if applicable) will compile a list of qualified bidders
for each proposed contract. The borrower will send invitations to bid
only to persons or organizations on its qualified bidder list for the
specific project (see Sec. 1726.23).
(b) Invitations to bid. The borrower (acting through its engineer,
if applicable) is responsible for sending out invitations to
prospective bidders, informing them of scheduled bid openings and any
other action necessary to procure full, free and competitive bidding.
In any event, however, sufficient invitations need to be sent out to
assure competition and that at least three bids will be received.
Subject to the criteria in the preceding sentence, the determination of
how many and which bidders will be permitted to bid will be the
responsibility of the borrower.
(c) Notice and instructions to bidders. The borrower must indicate
in the ``Notice and Instructions to Bidders'' section of the bid
documents that bids will be opened privately. The borrower may elect to
conduct clarifying discussions with the bidders. If such clarifying
discussions are held, at least the three apparent low evaluated bidders
must be given an equal opportunity to resolve any questions related to
the substance of the bidder's proposal and to arrive at a final price
for a responsive bid.
(d) Evaluation basis. Any factors, other than lowest dollar amount
of the bid, which are to be considered in evaluating the proposals of
qualified bidders (e.g., power consumption, losses, etc.) must be
stated in the ``Notice and Instructions to Bidders.'' The borrower will
not evaluate a bidder's performance record, safety record, and similar
factors when evaluating a bid from a qualified and invited bidder. Such
factors are to be considered when determining whether to include a
particular bidder on the qualified bidders list.
(e) Handling of bids received. The borrower or the engineer, as
applicable, will indicate, in writing, the date and time of receipt by
the borrower or the engineer on the outside envelope of each bid and
all letters and other transmittals amending or modifying the bids. Any
bid received at the designated location after the time specified must
be returned to the bidder unopened.
(f) Bid opening. The contracting committee will conduct the bid
opening in private. The contracting committee will open each bona fide
bid which has been received prior to the deadline, and review it for
any irregularities, errors, or exceptions. It must be verified that any
addendum to the specification has been acknowledged by each bidder. The
adequacy of bid bonds or certified checks must also be verified.
(g) Conditions affecting acceptability of bids. The borrower must
take the following specified action if any of the following exist:
(1) Fewer than three bona fide bids received. If fewer than three
bona fide bids are received for the contract project, the borrower must
determine that all reasonable measures have been taken to assure
competition prior to awarding the contract. This determination must be
documented and such documentation submitted to RUS where required by
subpart A of this part. The borrower may, however, elect to reject all
bids, make changes in the specification or the qualified bidders list
or both and invite new bids.
(2) Significant error or ambiguity in the specification. If a
significant error or ambiguity in the specification is found which
could result in the bidders having varying interpretations of the
requirements of the bid, the borrower must either issue an addendum to
each prospective bidder correcting the error or ambiguity before bids
are received, or reject all bids and correct the specification. If a
significant error or ambiguity in the specification is discovered after
the bids are opened, the borrower must reject all bids, correct the
specification and invite new bids. [[Page 10163]]
(h) Clarification of proposals. The contracting committee may elect
not to hold any clarifying discussions and recommend awarding the
contract to the low responsive bidder. Otherwise, the contracting
committee must give at least each of the three apparent lowest
evaluated bidders an equal opportunity to participate in discussions
for the purpose of resolving questions regarding the specification and
contract terms and to arrive at a final price. Neither prices of other
bids nor relative ranking of any bidder are to be revealed under any
circumstances. Such discussions may be held by telephone or similar
means provided at least each of the three apparent lowest evaluated
bidders have an equal opportunity to participate. Upon completion of
the clarifying discussions, the contracting committee will determine
the lowest evaluated responsive bid. If no bids are responsive after
the contracting committee has completed clarifying discussions, no
contract award can be made under the informal bidding procedure.
(i) Award of the contract. Upon completion of the bid evaluations,
the contracting committee will promptly report all findings and
recommendations to the borrower's board of directors. The board will
either:
(1) Resolve to award the contract to the lowest evaluated
responsive bidder; or
(2) Reject all bids.
(j) Certifications by the contracting committee. The chairperson of
the contracting committee shall certify as follows: ``The procedures
for informal competitive bidding as described in 7 CFR 1726.202 were
followed in awarding this contract.'' The certification executed by the
chairperson of the contracting committee shall be submitted to RUS in
writing where required by subpart A of this part.
Sec. 1726.203 Multiparty negotiation.
Multiparty negotiation may only be used where permitted under
subpart F of this part or where prior RUS approval has been obtained.
The borrower must use the following procedure for multiparty
negotiation:
(a) Selection of qualified bidders. The borrower (acting through
its engineer, if applicable) will compile a list of qualified bidders
for each proposed contract. The borrower will send invitations to bid
only to persons or organizations on its qualified bidder list for the
specific project (see Sec. 1726.23).
(b) Invitations to bid. The borrower (acting through its engineer,
if applicable) is responsible for sending out invitations to
prospective bidders, informing them of scheduled bid openings and any
other action necessary to procure full, free and competitive bidding.
In any event, however, sufficient invitations need to be sent out to
assure competition and so that at least three bids will be received.
Subject to the criteria in the preceding sentence, the determination of
how many and which bidders will be permitted to bid will be the
responsibility of the borrower.
(c) Notice and instructions to bidders. The borrower must indicate
in the ``Notice and Instructions to Bidders'' section of the bid
documents that bids will be opened privately. The borrower may elect to
conduct negotiations with the bidders. If such negotiations are held,
at least the three apparent low evaluated bidders must be given an
equal opportunity to resolve any questions related to the substance of
the bidder's proposal and to arrive at a final price.
(d) Evaluation basis. Any factors, other than lowest dollar amount
of the bid, which are to be considered in evaluating the proposals of
qualified bidders (e.g., power consumption, losses, etc.) must be
stated in the ``Notice and Instructions to Bidders.'' The borrower will
not evaluate a bidder's performance record, safety record, and similar
factors when evaluating a bid from a qualified and invited bidder. Such
factors are to be considered when determining whether to include a
particular bidder on the qualified bidders list.
(e) Handling of bids received. The borrower or the engineer, as
applicable, will indicate, in writing, the date and time of receipt by
the borrower or the engineer on the outside envelope of each bid and
all letters and other transmittals amending or modifying the bids. Any
bid received at the designated location after the time specified must
be returned to the bidder unopened.
(f) Bid opening. The contracting committee will conduct the bid
opening in private. The contracting committee will open each bona fide
bid which has been received prior to the deadline, and review it for
any irregularities, errors, or exceptions. It must be verified that any
addendum to the specification has been acknowledged by each bidder. The
adequacy of bid bonds or certified checks must also be verified.
(g) Conditions affecting acceptability of bids. The borrower must
take the following specified action if any of the following exist:
(1) Fewer than three bona fide bids received. If fewer than three
bona fide bids are received for the contract project, the borrower must
determine that all reasonable measures have been taken to assure
competition prior to awarding the contract. This determination must be
documented and such documentation submitted to RUS where required by
subpart A of this part. The borrower may, however, elect to reject all
bids, make changes in the specification or the qualified bidders list
or both and invite new bids.
(2) Significant error or ambiguity in the specification. If a
significant error or ambiguity in the specification is found which
could result in the bidders having varying interpretations of the
requirements of the bid, the borrower must either issue an addendum to
each prospective bidder correcting the error or ambiguity before bids
are received, or reject all bids and correct the specification. If a
significant error or ambiguity in the specification is discovered after
the bids are opened, the borrower must reject all bids, correct the
specification and invite new bids.
(h) Negotiations. The contracting committee may elect not to hold
any negotiations and recommend award of the contract. Otherwise, the
contracting committee must give at least each of the three apparent
lowest evaluated bidders an equal opportunity to participate in
negotiations for the purpose of resolving questions regarding the
specification and contract terms and to arrive at a final price.
Neither prices of other bids nor relative ranking of any bidder are to
be revealed under any circumstances. Such discussions may be held by
telephone or similar means provided at least each of the three apparent
lowest evaluated bidders have an equal opportunity to participate. Upon
completion of the negotiations, the contracting committee will
determine the bid that is in the borrower's best interest.
(i) Award of the contract. Upon completion of the bid evaluations,
the contracting committee will promptly report all findings and
recommendations to the borrower's board of directors. The board will
either:
(1) Resolve to award the contract to the selected bidder; or
(2) Reject all bids.
(j) Certifications by the contracting committee. The chairperson of
the contracting committee shall certify as follows: ``The procedures
for multiparty negotiation as described in 7 CFR 1726.203 were followed
in awarding this contract.'' The certification executed by the
chairperson of the contracting committee shall be submitted to RUS in
writing where required by subpart A of this part. [[Page 10164]]
Sec. 1726.204 Multiparty unit price quotations.
The borrower or its engineer must contact a sufficient number of
suppliers or contractors to assure competition and so that at least
three bids will be received. On the basis of written unit price
quotations, the borrower will select the supplier or contractor based
on the lowest evaluated cost.
Sec. 1726.205 Multiparty lump sum quotations.
The borrower or its engineer must contact a sufficient number of
suppliers or contractors to assure competition and so that at least
three bids will be received. On the basis of written lump sum
quotations, the borrower will select the supplier or contractor based
on the lowest evaluated cost.
Secs. 1726.206-1726.249 [Reserved]
Subpart H--Modifications to RUS Standard Contract Forms
Sec. 1726.250 General.
RUS provides standard contract forms for procurement of materials,
equipment, and construction, for contract amendments and subcontracts,
and various related forms for use by RUS borrowers. See Sec. 1726.300
for a listing of these forms and how to obtain them. The standard
contract forms shall be used by the borrowers in accordance with the
provisions of this part. RUS will give prior approval to certain
modifications to these forms without changing the applicable
requirements for RUS approval. Such approved modifications are set
forth in this subpart. These are the only modifications given prior RUS
approval.
Sec. 1726.251 Prior approved contract modification related to price
escalation on transmission equipment, generation equipment, and
generation construction contracts.
(a) General. Where the borrower encounters reluctance among
manufacturers, suppliers, and contractors to bid a firm price on
transmission equipment or generation equipment, materials or
construction, modifications may be made in the RUS standard form of
contracts. These modifications, if applicable, may include, as an
alternative to the standard form, provisions for adjusting a base price
either upward or downward as determined by changes in specified indexes
between the time of the bid and the time the work is performed or
materials are procured by the contractor for such work. A large number
of labor and materials indexes are published monthly by the Bureau of
Labor Statistics (BLS). The borrower (acting through its engineer, if
applicable) will select the indexes for the particular item to be used
in the price adjustment clause. Suppliers' corporate indexes may not be
used. Labor and materials indexes are reported in the BLS's monthly
publications entitled ``Employment and Earnings'' and ``Producer Prices
and Price Indexes.'' These publications may be ordered through the
Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402, or any of the BLS regional offices.
(b) Material and equipment contracts. The approved provisions
needed to reflect the modifications to provide for price escalation in
the material or equipment contract forms for generation facilities are
as follows:
(1) Insert new paragraphs in the Notice and Instructions to Bidders
as follows:
``Proposals are invited on the basis of firm prices (or prices
with a stated maximum percentage escalation) or on the basis of
nonfirm prices to be adjusted as provided for below or on both
bases. The owner may award the contract on either basis.
Nonfirm prices. The prices are subject to adjustment upward or
downward based on change in the Bureau of Labor Statistics labor and
material indexes.
A proportion of ____ percent [the borrower will enter the
appropriate percentage amount] of the contract price shall be deemed
to represent labor cost and shall be adjusted based on changes in
the Bureau of Labor Statistics, Average Hourly Earnings Rate____
[the borrower will enter the appropriate BLS index] from the month
in which the bids are opened to the month in which the labor is
incorporated in the equipment or materials. The adjustment for labor
costs shall be obtained by applying the percentage of increase or
decrease in such index, calculated to the nearest one-tenth of one
percent, to the percentage of the contract prices deemed to
represent labor costs. A portion of ____ percent [the borrower will
enter the appropriate percentage amount] of the contract price shall
be deemed to represent material costs and shall be adjusted based on
changes in the Bureau of Labor Statistics, material index ____ [the
borrower will enter the appropriate BLS index] for the period and in
a manner similar to the labor cost adjustment.''
(2) Insert the following in the contract documents under the
``Proposal'' section:
``Firm Price $________
Nonfirm Price $________''
(3) For equipment that uses a large quantity of insulating oil, the
borrower may insert the following in the contract documents under the
``Proposal'' section:
``The price for insulating oil shall be adjusted upward or
downward based on the change in the Bureau of Labor Statistics
Refined Petroleum Rate (057) from the month in which the bids are
opened to the month in which the oil is purchased by the equipment
supplier. Contracts shall be evaluated based on an estimated cost of
____ cents per gallon [the borrower will enter the appropriate cost]
for oil. Such adjustment, if any, shall not change the contract
amount for purpose of applying any other adjustments to the contract
prices.''
(c) Construction contracts. The approved provisions needed to
reflect the modifications to provide for price escalation in the
construction contract forms for generation facilities are as follows:
(1) Insert new paragraphs in the ``Notice and Instructions'' to
Bidders as follows:
``Proposals are invited on the basis of firm prices (or prices
with a stated maximum percentage escalation) or on the basis of
nonfirm prices to be adjusted as provided for below or on both
bases. The owner may award the contract on either basis.
Nonfirm Prices--The prices are subject to adjustment upward or
downward based on changes in the Bureau of Labor Statistics labor
and material indexes.
A proportion of ____ percent [the borrower will enter the
appropriate percentage amount] of the contract price shall be deemed
to represent shop labor costs and shall be adjusted based on changes
in the Bureau of Labor Statistics, Average Hourly Earnings Rate ____
[the borrower will enter the appropriate BLS index] from the month
in which bids are opened to the month in which the work is
accomplished. The adjustment for shop labor costs shall be obtained
by applying the percentage increase or decrease in such index, to
the percentage of each partial payment deemed to represent shop
labor costs. A portion of ____ percent [the borrower will enter the
appropriate percentage amount] of the contract prices shall be
deemed to represent material costs and shall be adjusted based on
changes in the Bureau of Labor Statistics, Producer Price Index,
____ [the borrower will enter the appropriate BLS index] for the
period and in a manner similar to the shop labor costs adjustment. A
portion of ____ percent [the borrower will enter the appropriate
percentage amount] of the contract price shall be deemed to
represent field labor costs and shall be adjusted based on changes
in the Bureau of Labor Statistics, Average Hourly Earnings Rate ____
[the borrower will enter the appropriate BLS index], for the period
and in a manner similar to the shop labor costs adjustment.''
(2) Insert the following in the contract documents under the
``Proposal'' section:
``Firm Price $________
Nonfirm Price $________''
Sec. 1726.252 Prior approved contract modification related to
liability for special and consequential damages.
This section applies only to transmission equipment purchases and
[[Page 10165]] generation contracts. Where the borrower anticipates
difficulty in obtaining responsive bids on RUS standard contract forms
due to a lack of limitation with respect to special and consequential
damages, and where the borrower believes that such a modification will
encourage competition through the receipt of an alternative bid which
limits the bidder's liability for special and consequential damages,
the borrower may make the following approved phrase modifications in
the RUS standard contract form on which the borrower solicits bids:
(a) Insert new paragraphs in the ``Notice and Instructions to
Bidders'' as follows:
``Proposals are invited on the basis of alternative Liability
Clauses Numbers 1 and 2. The Owner will determine on which Liability
Clause basis the award will be made. Any other liability clauses in
the proposal or any other modifications will be considered not
responsive and unacceptable. These Liability Clauses are defined as
follows:
Liability Clause Number 1. This will include unmodified all of
the standard terms and conditions of the form of contract furnished
by the Owner and attached hereto.
Liability Clause Number 2. This will include the following
paragraph, in addition to all of the standard terms and conditions,
otherwise unmodified, of the form of contract furnished by the Owner
and attached hereto:
`Except for the Seller's willful delay or refusal to perform the
contract in accordance with its terms, the Seller's liability to the
Owner for special or consequential damages on account of breach of
this contract shall not exceed in total an amount equal to ____
percent [the borrower will insert an appropriate percentage between
0 and 100 percent, inclusive] of the contract price.'''
(b) Insert the following in the contract documents under the
``Proposal'' section:
``Price $(Based on Liability Clause 1)________
Price $(Based on Liability Clause 2)________''
(c) Insert the following in the acceptance section of the standard
contract form:
``This contract is based on Liability Clause Number________.''
(d) In RUS Form 200, the word ``Bidder'' would replace the word
``Seller'' in the Liability Clause in paragraph (a) of this section.
Sec. 1726.253 Prior approved contract modification related to
alternative bid provision for payment to contractor for bulk purchase
of materials.
When construction is to be performed over an extended period of
time, but large quantities of material are to be purchased by the
contractor at the beginning of the project (e.g., cable for URD
installations), the borrower may allow alternative bids providing for
payment to the contractor of 90 percent of the cost of such materials
within 30 days of delivery of those materials at the job site. The
borrower will retain the right to award the contract with or without
the alternative payment provision, however, the contract still must be
awarded on the basis of the lowest evaluated responsive bid for the
alternative accepted.
Sec. 1726.254 Prior approved contract modifications related to RUS
approval of contracts and amendments and modified bidding requirements.
It will be necessary for borrowers to make certain modifications to
various RUS contract forms to implement the provisions of this part. If
a RUS approved form of contract is required to be used by this part and
private bid opening is permitted by this part, the ``Notice and
Instructions to Bidders'' of the contract form may be modified
accordingly. Other modifications are needed to indicate that certain
provisions related to RUS approval are not applicable under specified
circumstances. These modifications are as follows:
(a) RUS Form 173 Materials Contract. No modifications.
(b) RUS Form 180 Construction Contract Amendment. No modifications.
(c) RUS Form 198 Equipment Contract. For contracts NOT requiring
approval of the Administrator (in accordance with subparts B through F
of this part) the applicable modifications are as follows:
(1) Change Section 5(e) of the ``Equipment Contract'' to read as
follows:
``(e) Each and all of the covenants and agreements herein
contained shall extend to and be binding upon the successors and
assigns of the parties hereto provided, however, the Seller shall
not assign this contract or any part hereof without approval in
writing of the Purchaser, and further the Seller shall not enter
into any contract with any person, firm or corporation for the
performance of the Seller's obligations hereunder, or any part
thereof, without the approval in writing of the Purchaser.''
(2) Delete Section 5(f) of the ``Equipment Contract.''
(d) RUS Form 200 Construction Contract--Generating. For contracts
Not requiring approval of the Administrator (in accordance with
subparts B through F of this part) the applicable modifications are as
follows:
(1) Contractor's Proposal, Article II, Section 3(a), Sentence 2.
Delete the words ``and the Administrator.''
(2) Contractor's Proposal, Article II, Section 3(d), Sentence 2.
Delete the words ``and approved by the Administrator\1\'' and the
associated footnote.
(3) Contractor's Proposal, Article VI, Section 7. Change to read as
follows:
``Nonassignment of Contract. Except as provided in Section 8 of
this Article, the Bidder will not assign this Contract, or any
interest in any funds that may become due hereunder, or enter into
any contract with any person, firm or corporation, for the
performance of the Bidder's obligations hereunder, or any part
hereof without the approval in writing of the Owner and the Surety
or Sureties, if any.''
(4) Contractor's Proposal, Article VI. Delete Section 10.
(5) Acceptance. Delete the words ``Subject to the approval of the
Administrator.''
(e) RUS Form 201 Right-of-Way Clearing Contract. No modifications.
(f) RUS Form 203 Transmission System Right-of-Way Clearing
Contract. For contracts Not requiring approval of the Administrator (in
accordance with subparts B through F of this part) the applicable
modifications are as follows.
(1) Notice and Instructions to Bidders, Section 8. Delete the words
``and such acceptance has been approved by the Administrator.''
(2) Contractor's Proposal, Article II, Section 1(a). Replace the
word ``Administrator'' with the word ``Owner'' in two places in the
referenced section.
(3) Contractor's Proposal, Article II, Section 3(d), Sentence 1.
Delete the words ``and with the approval of the Administrator\1\'' and
the associated footnote.
(4) Contractor's Proposal, Article II, Section 3(d), Sentence 3.
Delete the words ``and approved by the Administrator\2\'' and the
associated footnote.
(5) Contractor's Proposal, Article III, Section 1. Delete the words
``and the Administrator'' in five places in the referenced section.
(6) Contractor's Proposal, Article III, Section 1(b). Replace the
word ``Administrator'' with the word ``Owner.''
(7) Contractor's Proposal, Article III, Section 1(e). Replace the
word ``Administrator'' with the word ``Owner.''
(8) Contractor's Proposal, Article VI, Section 1(d). Delete the
words ``and the Administrator.''
(9) Contractor's Proposal, Article VI. Delete Section
10. [[Page 10166]]
(10) Acceptance. Delete the words ``Subject to the approval of the
Administrator.''
(g) RUS Form 238 Construction or Equipment Contract Amendment. If
the contract amendment does not require RUS approval, in accordance
with Sec. 1726.24(b), the borrower may delete from RUS Form 238 the
following sentence:
``(The Administrator of RUS is hereby authorized to approve this
amendment either in whole or in part and to delete such items as do
not meet his approval.)''
(h) RUS Form 257 Contract to Construct Buildings. No modifications.
(i) RUS Form 282 Subcontracts. The applicable modifications are as
follows:
(1) Section 6, line 3. Delete the words ``and the Administrator of
the Rural Utilities Service (hereinafter called the Administrator).''
(2) Section 7, line 2. Change Section 7, line 2 to read as follows:
``approved in writing by the Owner and the Surety, if any; provided,
* * *''
(3) Section 7, line 3. Delete the words ``and the Administrator.''
(j) RUS Form 764 Substation and Switching Station Erection
Contract. For contracts NOT requiring approval of the Administrator (in
accordance with subparts B through F of this part) the applicable
modifications are as follows:
(1) Notice and Instructions to Bidders, Section 10. Delete the
words ``and such acceptance has been approved by the Administrator.''
(2) Contractor's Proposal, Article II, Section 1.a. Replace the
word ``Administrator'' with the word ``Owner'' in two places in the
referenced section.
(3) Contractor's Proposal, Article II, Section 1.d, Sentence 1.
Delete the words ``and with the approval of the Administrator\1\'' and
the associated footnote.
(4) Contractor's Proposal, Article II, Section 1.d, Sentence 2.
Delete the words ``and approved by the Administrator\2\'' and the
associated footnote.
(5) Contractor's Proposal, Article III, Section 1. Delete the words
``and the Administrator'' in five places in the referenced section.
(6) Contractor's Proposal, Article III, Section 1.b. Replace the
word ``Administrator'' with the word ``Owner.''
(7) Contractor's Proposal, Article III, Section 1.e. Replace the
word ``Administrator'' with the word ``Owner.''
(8) Contractor's Proposal, Article VI, Section 1.e. Delete the
words ``and the Administrator.''
(9) Contractor's Proposal, Article VI. Delete Section 10.
(10) Acceptance. Delete the words ``Subject to the approval of the
Administrator.''
(k) RUS Form 786 Electric System Communications and Control
Equipment Contract (including installation). For contracts NOT
requiring approval of the Administrator (in accordance with subparts B
through F of this part) the applicable modifications are as follows:
(1) Article I, Section 2. Delete the words ``subject to the
approval of the Administrator\1\'' and ``and approved by the
Administrator\2\'' and the associated footnotes.
(2) Article II, Section 1, Sentence 2. Replace the word
``Administrator'' with ``Purchaser.''
(3) Article II, Section 5. Delete the words ``subject to the
approval of the Administrator\3\'' and ``subject to the approval of the
Administrator\4\'' and the associated footnotes.
(4) Article III, Section 2, Sentence 3. Replace the words ``if the
Administrator shall so approve'' with the words ``if the Purchaser
shall so approve.''
(5) Article VI. Delete Section 7.
(6) Acceptance. Delete the words ``Subject to the approval of the
Administrator.''
(l) RUS Form 790 Distribution Line Extension Construction Contract
(Labor and Materials). No modifications.
(m) RUS Form 792 Distribution Line Extension Construction Contract
(Labor Only). No modifications.
(n) RUS Form 830 Electric System Construction Contract. No
modifications.
(o) RUS Form 831 Electric Transmission Construction Contract. For
contracts NOT requiring approval of the Administrator (in accordance
with subparts B through F of this part) the applicable modifications
are as follows:
(1) Notice and Instructions to Bidders, Section 10. Delete the
words ``and such acceptance has been approved by the Administrator.''
(2) Contractor's Proposal, Article II, Section 1.d. Delete the
words ``with the approval of the Administrator\1\'' and ``and approved
by the Administrator\2\'' and the associated footnotes.
(3) Contractor's Proposal, Article II, Section 4.a. Delete the
words ``and approved by the Administrator\3\'' and the associated
footnote.
(4) Contractor's Proposal, Article III, Section 1.a. Sentence 4.
Delete the words ``and the Administrator.''
(5) Contractor's Proposal, Article III, Section 1.b. Replace the
word ``Administrator'' with the word ``Owner.''
(6) Contractor's Proposal, Article III, Section 1.c. Delete the
words ``and the Administrator'' in four places in the referenced
section.
(7) Contractor's Proposal, Article III, Section 1.e. Replace the
word ``Administrator'' with the word ``Owner.''
(8) Contractor's Proposal, Article VI, Section 1.e. Delete the
words ``and the Administrator.''
(9) Contractor's Proposal, Article VI. Delete Section 11.
(10) Acceptance. Delete the words ``Subject to the approval of the
Administrator.''
Sec. 1726.255 Prior approved contract modifications related to
indemnification.
(a) As an alternative to the indemnification provision required in
RUS standard construction contract forms in those jurisdictions
requiring specific language concerning the requirement that the
indemnitor indemnify the indemnitee for the indemnitee's own
negligence, the borrower may add the words ``otherwise this provision
shall apply to any alleged negligence or condition caused by the
Owner'' so that the first paragraph reads as follows:
``i. To the maximum extent permitted by law, Bidder shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Bidder's employees) and loss, damage to or destruction of
Owner's property or the property of any other person or entity
(including but not limited to Bidder's property) in any manner
arising out of or connected with the Contract, or the materials or
equipment supplied or services performed by Bidder, its
subcontractors and suppliers of any tier. But nothing herein shall
be construed as making Bidder liable for any injury, death, loss,
damage, or destruction caused by the sole negligence of Owner,
otherwise this provision shall apply to any negligence or condition
caused by the Owner.''
(b) As an alternative to the indemnification provision required in
RUS standard construction contract forms in those jurisdictions that
have a legal prohibition against one party indemnifying another for the
other's negligence, the borrower may replace the words ``defend,
indemnify, and hold harmless'' with the words `` shall pay on behalf
of'' so that the first paragraph reads as follows:
``i. To the maximum extent permitted by law, Bidder shall pay on
behalf of Owner and Owner's directors, officers, and employees from
all claims, causes of action, losses, [[Page 10167]] liabilities,
and expenses (including reasonable attorney's fees) for personal
loss, injury, or death to persons (including but not limited to
Bidder's employees) and loss, damage to or destruction of Owner's
property or the property of any other person or entity (including
but not limited to Bidder's property) in any manner arising out of
or connected with the Contract, or the materials or equipment
supplied or services performed by Bidder, its subcontractors and
suppliers of any tier. But nothing herein shall be construed as
making Bidder liable for any injury, death, loss, damage, or
destruction caused by the sole negligence of Owner, otherwise this
provision shall apply to any negligence or condition caused by the
Owner.''
(c) If the alternative indemnification provision in paragraph (a)
or (b) of this section is chosen by the borrower, the language of
paragraph (a) or (b) of this section would be inserted in lieu of
subsection (i) of the section indicated in the RUS standard
construction contract forms as follows:
----------------------------------------------------------------------------------------------------------------
RUS form No. Title Desiganted section
----------------------------------------------------------------------------------------------------------------
200........................... Construction Contract--Generating............ Article IV, Section 1(c).
201........................... Right-of-Way Clearing Contract............... Article IV, Section 1(e).
203........................... Transmission System Right-of-Way Clearing Article IV, Section 1(f).
Contract.
257........................... Contract to Construct Buildings.............. Article IV, Section 1(b).
764........................... Substation and Switching Station Erection Article IV, Section 1(f).
Contract.
786........................... Electric System Communications and Control Article IV, Section 1(c).
Equipment Line.
790........................... Distribution Line Extension Construction Article IV, Section 1(f).
Contract (labor & materials).
792........................... Distribution Line Extension Construction Article IV, Section 1(f).
Contract (labor only).
830........................... Electric System Construction Contract (labor Article IV, Section 1(f).
& material).
831........................... Electric Transmission Construction Contract Article IV, Section 1(f).
(labor & material).
----------------------------------------------------------------------------------------------------------------
(d) In RUS Forms 201, 790, and 792, the word ``Contractor'' would
replace the word ``Bidder'' in the alternative indemnification clause
in paragraph (a) or (b) of this section.
(e) In RUS Form 786, the word ``Seller'' would replace the word
``Bidder'' and the word ``Purchaser'' would replace the word ``Owner''
in the alternative indemnification clause in paragraph (a) or (b) of
this section.
Secs. 1726.256-1726.299 [Reserved]
Subpart I--RUS Standard Forms
Sec. 1726.300 List of RUS standard contracting forms for electric
systems.
The following is a list of the current RUS standard contracting
forms that RUS has prepared for use by electric borrowers when
purchasing materials and equipment and constructing facilities with a
RUS loan or loan guarantee. Copies of the contract forms are available
from the sources indicated in the listing. A notice of any change in
these contract forms will be published in the Federal Register.
RUS Electric Program Standard Contract Forms
----------------------------------------------------------------------------------------------------------------
Issue
RUS form No. date Title Purpose Source of copies\1\
----------------------------------------------------------------------------------------------------------------
168b.............. 2-95 Contractor's bond...... Used in RUS Forms 200, 201, 203, In respective contract
257, 764, 786, 790, 792, 830 & form.
831.
168c.............. 2-95 Contractor's bond (less In lieu of RUS Form 168b, used RUS.
than $1 million). when contractor's surety has
accepted a Small Business.
172............... 9-58 Certificate of Administration guarantee--Used to RUS.
Inspection Contract notify RUS that construction is
Construction. ready for inspection.
173............... 3-55 Materials contract..... Used for distribution, RUS.
transmission, and general plant
material purchases.
180............... 2-95 Construction Contract Used to amend distribution line RUS.
Amendment. construction contracts.
181............... 2-95 Certificate of Used for the closeout of RUS Form RUS.
Completion Contract 257.
Construction for
Buildings.
187............... 2-95 Certificate of Used in RUS Forms 200, 203, 764, In respective contract
Completion Contract 786, 830, and 831. form.
Construction.
198............... 2-95 Equipment Contract Used for equipment purchases..... RUS.
Construction Contract--
Generating.
200............... 2-95 Construction Contract Used for generating plant RUS.
Generating. construction or for the
furnishing and installation of
major items of equipment.
201............... 2-95 Right-of-Way Clearing Used for distribution right-of- RUS.
Contract. way clearing work which is to be
performed separate from line
construction.
203............... 2-95 Transmission System Used for transmission line right- RUS.
Right-of-Way Clearing of-way clearing work which is to
Contract. be performed separate from line
construction.
213............... 2-95 Certificate (``Buy Used to document compliance with RUS.
American''). the ``Buy American'' requirement.
219............... 10-88 Inventory of Work Used to encumber funds........... RUS.
Orders.
224............... 2-95 Waiver and Release of Used in RUS Forms 200, 203, 764, In respective contract
Lien. 786, 830, and 831. form.
231............... 2-95 Certificate of Used in RUS Forms 200, 203, 764, In respective contract
Contractor. 786, 830, and 831. form.
238............... 2-95 Construction or Used to amend contracts except RUS.
Equipment Contract for distribution line
Amendment. construction contracts.
251............... 2-95 Material Receipt....... Used in RUS Forms 764, 830, and In respective contract
831. form.
[[Page 10168]]
254............... 2-95 Construction Inventory. Used with the closeout of RUS RUS.
Forms 203, 764, 830, and 831.
257............... 2-95 Contract to Construct Used to construct headquarters GPO.\2\
Buildings. buildings and other structure
construction.
270............... 7-70 Equal Opportunity Addendum to contracts not having RUS
Addendum. current equal opportunity
provisions.
274............... 6-81 Bidder's Qualifications Used to document Bidder's RUS.
Qualifications.
282............... 11-53 Subcontract............ Used for subcontracting.......... RUS.
307............... 2-95 Bid Bond............... Used In RUS Forms 200, 203, 257, In respective contract
764, 830 and 831. form.
458............... 3-55 Material Contract...... Used to obtain generating plant RUS.
material and equipment purchases
over $10,000, not requiring
acceptance tests at the project
site.
764............... 2-95 Substation and Used to construct substations and RUS.
Switching Station switching stations.
Erection Contract.
786............... 2-95 Electric System Used for delivery and RUS.
Communications and installation of equipment for
Control Equipment system communications.
Contract.
790............... 2-95 Distribution Line Used for limited distribution GPO.\2\
Extension Construction construction accounted for under
Contract (labor & work order procedure.
materials).
792............... 2-95 Distribution Line Used for limited distribution GPO.\2\
Extension Construction construction accounted for under
Contract (labor only). work order procedure.
792b.............. 2-95 Certificate of Used in RUS Forms 201, 790, and In respective contract
Construction and 792. form.
Indemnity Agreement.
792c.............. 2-95 Supplemental Contract Used in RUS Forms 201, 790, and In respective contract
for Additional Project. 792. form.
830............... 2-95 Electric System Used for distribution and/or GPO.\2\
Construction Contract transmission project
(labor & material). construction.
831............... 2-95 Electric Transmission Used for transmission project GPO.\2\
Construction Contract construction.
(labor & material).
----------------------------------------------------------------------------------------------------------------
Notes:
\1\A single copy of the form will be furnished by RUS upon request. Additional copies may be duplicated or
reproduced. Requests for copies should be sent to: Director, Administrative Services Division, U.S. Department
of Agriculture, Rural Utilities Service, Washington, DC 20250.
\2\Requests for copies should be submitted to the Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402. Telephone orders may also be placed, using Mastercard or Visa, by calling (202) 512-
1800.
Sec. 1726.301 Use of printed forms.
If a RUS contract form is required by this part, the borrower shall
use the form in the format available from RUS or GPO (photocopying or
other exact reproduction is acceptable.) The contract forms are not to
be retyped, changed, modified or altered in any manner not specifically
authorized in this part or approved by RUS in writing. Any
modifications approved by RUS must be clearly shown so to indicate that
such are different from the standard form. Electronic reproduction is
acceptable for RUS Forms 251 and 254 only.
Sec. 1726.302 RUS approved forms of contract.
If a specific RUS contract form is required by a particular section
of this part, the borrower shall use that form without changes or
modifications or alterations unless, prior to issuing the bid package
to bidders, RUS has specifically approved any such changes to that form
for that borrower, nor shall any change be made to the form by
amendment of an executed contract without prior RUS approval. Any
proposed changes shall not relieve the contractor or the borrower of
the basic responsibilities required by the standard RUS contract form,
and, shall not alter any terms and conditions required by law. Changes
permitted or required by subpart H of this part or by part 1788, RUS
Fidelity and Insurance Requirements for Electric and Telephone
Borrowers, of this chapter are approved by RUS under the circumstances
indicated.
Sec. 1726.303 Interest on overdue accounts.
Certain RUS contract forms contain a provision concerning payment
of interest on overdue accounts. Prior to issuing the invitation to
bidders, the borrower must insert an interest rate equal to the lowest
``Prime Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued. If no prime rate
is published on that date, the last such rate published prior to that
date must be used. The rate must not, however, exceed the maximum rate
allowed by any applicable state law.
Secs. 1726.304-1726.309 [Reserved]
Sec. 1726.310 Contractor's bond, RUS Form 168b.
The bond form in this section shall be used when a Contractor's
Bond is required by RUS Forms 200, 201, 203, 257, 764, 786, 790, 792,
830, or 831 unless the contractor's surety has accepted a Small
Business Administration guarantee and the contract is for one million
dollars or less.
Contractor's Bond
1. Know all men that we, ________, as Principal, and ________,
as Surety, are held and firmly bound unto ________ (hereinafter
called the ``Owner'') and unto the United States of America
(hereinafter called the ``Government'') and unto all persons, firms
and corporations who or which may furnish materials for or perform
labor on a Rural Utilities Service Project known as Project ________
and to their successors and assigns, in the penal sum of ________
dollars ($________), as hereinafter set forth and for the payment of
which sum well and truly to be made we bind ourselves, our
executors, administrators, successors and assigns jointly and
severally by these presents. Said Project is described in a certain
construction contract (hereinafter called the ``Construction
[[Page 10169]] Contract'') between the Owner and the Principal,
dated ________, 19____, pursuant and subject to a certain loan
contract (hereinafter called the ``Loan Contract'') between the
Owner and the Government, acting through the Administrator of the
Rural Utilities Service (hereinafter called the ``Administrator'').
2. The condition of this obligation is such that if the
Principal shall well and truly perform and fulfill all the
undertakings, covenants, terms, conditions and agreements of the
Construction Contract and any amendments thereto, whether such
amendments are for additions, decreases, or changes in materials,
their quantity, kind or price, labor costs, mileage, routing or any
other purpose whatsoever, and whether such amendments are made with
or without notice to the Surety, and shall fully indemnify and save
harmless the Owner and the Government from all costs and damages
which they, or either of them, shall suffer or incur by reason of
any failure so to do, and shall fully reimburse and repay the Owner
and the Government for all outlay and expense which they, or either
of them shall incur in making good any such failure of performance
on the part of the Principal, and shall promptly make payment to all
persons working on or supplying labor or materials for use in the
construction of the Project contemplated in the Construction
Contract and any amendments thereto, in respect of such labor or
materials furnished and used therein, to the full extent thereof,
and in respect of such labor or materials furnished but not so used,
to the extent of the quantities estimated in the Construction
Contract and any amendments thereto to be required for the
construction of the Project, and shall well and truly reimburse the
Owner and the Government, as their respective interests may appear,
for any excess in cost of construction of said Project over the cost
of such construction as provided in the Construction Contract and
any amendments thereto, occasioned by any default of the Principal
under the Construction Contract and any amendments thereto, then
this obligation shall be null and void, but otherwise shall remain
in full force and effect.
3. It is expressly agreed that this bond shall be deemed amended
automatically and immediately, without formal and separate
amendments hereto, upon any amendment to the Construction Contract,
so as to bind the Principal and the Surety to the full and faithful
performance of the Construction Contract as so amended, provided
only that the total amount of all increases in the cost of
construction shall not exceed 20 percent of the amount of the
maximum price set forth in the Construction Contract. The term
``Amendment,'' wherever used in this bond, and whether referring to
this bond, the Construction Contract or the Loan Contract shall
include any alteration, addition, extension, modification,
amendment, rescission, waiver, release or annulment, of any
character whatsoever.
4. It is expressly agreed that any amendment which may be made
by agreement or otherwise between the Principal and the Owner in the
terms, provisions, covenants and conditions of the Construction
Contract, or in the terms, provisions, covenants and conditions of
the Loan Contract (including, without limitation, the granting by
the Administrator to the Owner of any extension of time for the
performance of the obligations of the Owner under the Loan Contract
or the granting by the Administrator or the Owner to the Principal
of any extension of time for the performance of the obligations of
the Principal under the Construction Contract, or the failure or
refusal of the Administrator or the Owner to take any action,
proceeding or step to enforce any remedy or exercise any right under
either the Construction Contract or the Loan Contract, or the taking
of any action, proceeding or step by the Administrator or the Owner,
acting in good faith upon the belief that the same is permitted by
the provisions of the Construction Contract or the Loan Contract)
shall not in any way release the Principal and the Surety, or either
of them or their respective executors, administrators, successors or
assigns, from liability hereunder. The Surety hereby acknowledges
receipt of notice of any amendment, indulgence or forbearance, made,
granted or permitted.
5. This bond is made for the benefit of all persons, firms and
corporations who or which may furnish any materials or perform any
labor for or on account of the construction to be performed under
the Construction Contract and any amendments thereto, and they, and
each of them, are hereby made obligees hereunder with the same force
and effect as if their names were written herein as such, and they
and each of them may sue hereon.
In witness whereof, the undersigned have caused this instrument
to be executed and their respective corporate seals to be affixed
and attested by their duly authorized representatives this ________
day of ________, 19____.
Principal ________ (Seal)
By ________
Attest: ________ Secretary
Surety________ (Seal)
By ________
Attest: ________ Secretary
________ Address of Surety's Home Office
By ________ Resident Agent of Surety
Signatures: The Contractor's Bond must be signed with the full
name of the Contractor. If the Contractor is a partnership the
Contractor's Bond must be signed in the partnership name by a
partner. If the Contractor is a corporation the Contractor's Bond
must be signed in the corporate name by a duly authorized officer
and the corporate seal affixed and attested by the Secretary of the
corporation. A typewritten copy of all such names and signatures
shall be appended.
Power of Attorney: The Contractor's Bond must be accompanied by
a power of attorney authorizing execution on behalf of the Surety
and, in jurisdictions so requiring should be countersigned by a duly
authorized resident agent of the Surety.
[End of clause]
Sec. 1726.311 Contractor's bond, RUS Form 168c.
The bond form in this section shall be used when a Contractor's
Bond is required by RUS Form 200, 201, 203, 257, 764, 786, 790, 792,
830, or 831 and the contractor's surety has accepted a Small Business
Administration guarantee and the contract is for one million dollars or
less.
Contractor's Bond
(Use only when contract is less than $1 million and Surety has
accepted an SBA (Small Business Administration) Guarantee)
1. Know all men that we, ________, as Principal, and ________,
as Surety, are held and firmly bound unto ________ (hereinafter
called the ``Owner'') and unto the United States of America
(hereinafter called the ``Government'') and unto all persons, firms
and corporations who or which may furnish materials for or perform
labor on a Rural Utilities Service Project known as Project ________
and to their successors and assigns, in the penal sum of ________
dollars ($________), as hereinafter set forth and for the payment of
which sum well and truly to be made we bind ourselves, our
executors, administrators, successors and assigns jointly and
severally by these presents. Said Project is described in a certain
construction contract (hereinafter called the ``Construction
Contract'') between the Owner and the Principal, dated ________,
19____, pursuant and subject to a certain loan contract (hereinafter
called the ``Loan Contract'') between the Owner and the Government,
acting through the Administrator of the Rural Utilities Service
(hereinafter called the ``Administrator'').
2. The condition of this obligation is such that if the
Principal shall well and truly perform and fulfill all the
undertakings, covenants, terms, conditions and agreements of the
Construction Contract and any amendments thereto, whether such
amendments are for additions, decreases, or changes in materials,
their quantity, kind or price, labor costs, mileage, routing or any
other purpose whatsoever, and whether such amendments are made with
or without notice to the Surety, and shall fully indemnify and save
harmless the Owner and the Government from all costs and damages
which they, or either of them, shall suffer or incur by reason of
any failure so to do, and shall fully reimburse and repay the Owner
and the Government for all outlay and expense which they, or either
of them shall incur in making good any such failure of performance
on the part of the Principal, and shall promptly make payment to all
persons working on or supplying labor or materials for use in the
construction of the Project contemplated in the Construction
Contract and any amendments thereto, in respect of such labor or
materials furnished and used therein, to the full extent thereof,
and in respect of such labor or materials furnished but not so used,
to the extent of the quantities estimated in the Construction
Contract and any amendments thereto to be required for
[[Page 10170]] the construction of the Project, and shall well and
truly reimburse the Owner and the Government, as their respective
interests may appear, for any excess in cost of construction of said
Project over the cost of such construction as provided in the
Construction Contract and any amendments thereto, occasioned by any
default of the Principal under the Construction Contract and any
amendments thereto, then this obligation shall be null and void, but
otherwise shall remain in full force and effect.
3. Provided, that the liability of the Principal and Surety
hereunder to the Government shall be subject to the same limitations
and defenses as may be available to them against a claim hereunder
by the Owner, provided, however, that the Government may, at its
option, perform any obligations of the Owner required by the
contract.
4. It is expressly agreed that this bond shall be deemed amended
automatically and immediately, without formal and separate
amendments hereto, upon any amendment to the Construction Contract,
so as to bind the Principal and the Surety to the full and faithful
performance of the Construction Contract as so amended, provided
only that the total amount of all increases in the cost of
construction shall not exceed 20 percent of the amount of the
maximum price set forth in the Construction Contract. The term
``Amendment,'' wherever used in this bond, and whether referring to
this bond, the Construction Contract or the Loan Contract shall
include any alteration, addition, extension, modification,
amendment, rescission, waiver, release or annulment, of any
character whatsoever.
5. It is expressly agreed that any amendment which may be made
by agreement or otherwise between the Principal and the Owner in the
terms, provisions, covenants and conditions of the Construction
Contract, or in the terms, provisions, covenants and conditions of
the Loan Contract (including, without limitation, the granting by
the Administrator to the Owner of any extension of time for the
performance of the obligations of the Owner under the Loan Contract
or the granting by the Administrator or the Owner to the Principal
of any extension of time for the performance of the obligations of
the Principal under the Construction Contract, or the failure or
refusal of the Administrator or the Owner to take any action,
proceeding or step to enforce any remedy or exercise any right under
either the Construction Contract or the Loan Contract, or the taking
of any action, proceeding or step by the Administrator or the Owner,
acting in good faith upon the belief that the same is permitted by
the provisions of the Construction Contract or the Loan Contract)
shall not in any way release the Principal and the Surety, or either
of them or their respective executors, administrators, successors or
assigns, from liability hereunder. The Surety hereby acknowledges
receipt of notice of any amendment, indulgence or forbearance, made,
granted or permitted.
6. This bond is made for the benefit of all persons, firms and
corporations who or which may furnish any materials or perform any
labor for or on account of the construction to be performed under
the Construction Contract and any amendments thereto. Provided, that
beneficiaries or claimants hereunder shall be limited to the
subcontractors, and persons, firms and corporations having a direct
contract with the Principal or its subcontractors.
7. Provided, further, that no suit or action shall be commenced
hereunder by any person, firm, or corporation who performed work or
labor or who furnished materials for the project: (a) Unless such
person, firm, or corporation, other one having a direct contract
with the Principal (or with the Government in the event the
Government is performing the obligation of the Owner), shall have
given detailed written notice of claim to: The Principal, and the
Owner, within ninety (90) days after such person, firm, or
corporation did or performed the last of the work or labor, or
furnished the last of the materials for which such claim is made.
(b) After the expiration of one (1) year following the date on which
Principal ceased work on said contract, it being understood,
however, that if any limitation embodied in the Bond is prohibited
by any law controlling the construction hereof, such limitation
shall be deemed to be amended so as to equal to the minimum period
of limitation permitted by such law.
In witness whereof, the undersigned have caused this instrument
to be executed and their respective corporate seals to be affixed
and attested by their duly authorized representatives this ________
day of ________, 19____.
Principal ________ (Seal)
By ________
Attest: ________ Secretary
Surety ________ (Seal)
By ________
Attest: ________ Secretary
________ Address of Surety's Home Office
By ________ Resident Agent of Surety
Signatures: The Contractor's Bond must be signed with the full
name of the Contractor. If the Contractor is a partnership the
Contractor's Bond must be signed in the partnership name by a
partner. If the Contractor is a corporation the Contractor's Bond
must be signed in the corporate name by a duly authorized officer
and the corporate seal affixed and attested by the Secretary of the
corporation. A typewritten copy of all such names and signatures
shall be appended.
Power of Attorney: The Contractor's Bond must be accompanied by
a power of attorney authorizing execution on behalf of the Surety
and, in jurisdictions so requiring should be countersigned by a duly
authorized resident agent of the Surety.
[End of clause]
Sec. 1726.312 Construction contract amendment, RUS Form 180.
The amendment form in this section shall be used when required by
this part.
Construction Contract Amendment
Instructions--Submit 3 copies of this form & 3 copies of all
attachments to Administrator, Rural Utilities Service, U.S.
Department of Agriculture, Washington, DC 20250.
1. Project Designation ________
2. Amendment No. ________
3. Date ________
4. Details of changes are tabulated on sheet ________ to ________
attached and are part of this amendment.
5. The following changes in Construction Contract Number ________
dated ________, 19____ are hereby submitted for your approval.
6. Data pertinent to the original contract and amendments including
this amendment are as follows (decrease to be preceded by (-) minus
sign):
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumers
Miles -------------------------------------------- Price
Signed Potential
--------------------------------------------------------------------------------------------------------------------------------------------------------
Original Contract
Amendment No. 1
Amendment No. 2
Amendment No. 3
Amendment No. 4
Amendment No. 5
Amendment No. 6
---------------------------------------------------------------------------------------
Total with this Amendment
--------------------------------------------------------------------------------------------------------------------------------------------------------
7. Changes in materials furnished by Owner: This amendment provides
for an increase/decrease of $________ in the amount of materials
furnished by Owner. The details of changes in items, quantities, or
prices [[Page 10171]] are tabulated on sheet ________ to ________
attached and made a part hereof.
8. Bond extension attached ____ Yes ____ No
9. The construction period will be changed ________ days.
10. New counties (if any) ________
11. Description and reason for change: ________ This amendment
providing for an increase/decrease of $________ in the amount of
said construction contract is submitted pursuant to the provisions
thereof and pursuant to the loan contract between the United States
of America and the undersigned borrower. You are hereby authorized
to approve this amendment either in whole or in part and to delete
such items as do not meet with your approval. To the extent the
items hereof are approved by you the construction contract shall be
amended.
Accepted
________ Contractor
By ________ President-Owner-Partner (Strike out inapplicable title.
If signed by other than above, power of attorney should be attached
or on file with RUS.)
________ Date
________ Owner
By ________ President-Board of Directors
________ Date
Approved
________ Date
________ Engineer for the Borrower
Details of Contract Amendment
Item No. ________
Assembly Unit Designation ________
Quantity Previously Approved ________
Net Change Number Of Units ________
Contract Amended To Read (Show quantities and prices as revised by
this amendment):
Number of Units ________
Unit Price:
Labor ________
Material ________
Total ________
Total Price ________
Total Increase Price ________
Total Decrease ________
Totals ________
Net Total ________
[End of clause]
Sec. 1726.313 Certificate of completion, contract construction for
buildings, RUS Form 181.
The closeout form in this section shall be used when required by
this part.
Certificate of Completion; Contract Construction for Buildings
________ (Project Designation)
I, the undersigned Architect of the above-designated Rural
Utilities Service Project, hereby certify that:
1. The construction provided for pursuant to Construction
Contract No. ________ dated ________ 19____, including all approved
amendments, (hereinafter called the ``Project'') between
________(``Owner'') and ________ (``Contractor'') has been completed
as of ________ 19____, and is in all respects in strict compliance
with the provisions of the Loan Contract and the Construction
Contract, including the Plans and Specifications and all
modifications thereto.
2. To the best of my knowledge, payment in full has been made to
all persons who have furnished labor for the Project.
3. The Contractor has, to the best of my knowledge, obtained
valid releases of lien from all Manufacturers, materialmen, and
subcontractors that furnished materials or services or both which
were employed by the Contractor in the performance of the
Construction Contract, and that such releases have been delivered to
the Owner.
4. All defects in workmanship and materials reported during the
period of construction of the Project have been corrected.
5. The final Contract Price of the Project as completed is
________ dollars ($________).
________Date
________Representative of Architect
________Title
Acceptance
________Date
________Representative of Contractor
________Title
________Date
________Name of Owner
________President, Board of Directors
[End of clause]
Sec. 1726.314 Certificate of completion, contract construction, RUS
Form 187.
The closeout form in this section shall be used when required by
this part.
Certificate of Completion; Contract Construction
To: Administrator
Rural Utilities Service
U.S. Department of Agriculture Washington, D.C. 20250
________ (Project Designation)
I, the undersigned Engineer of the above-designated Rural
Utilities Service Project do hereby certify that:
1. The construction provided for pursuant to Construction
Contract No. ________ dated ________ 19____ including all
approved amendments, (hereinafter called the ``Project'') between
________ (``Owner'') and ________ (``Contractor'') has been
completed as of ________ 19____, and is in all respects in strict
compliance with the provisions of the Loan Contract and the
Construction Contract, including all Plans, specifications, maps,
and drawings and all modifications thereto.
2. Payment in full has been made to all persons who have
furnished labor for the Project.
3. The Contractor has obtained valid releases of lien from all
persons, firms and/or corporations furnishing materials, supplies,
and appliances which were employed by the Contractor in the
performance of the Construction Contract, and that such releases
have been delivered by the Contractor to the Owner.
4. If applicable, the Final Inventory attached hereto and made a
part hereof is a complete and accurate summary of all units of
construction in the Project and of all work performed in accordance
with the Construction Contract.
5. If applicable, the staking sheets and tabulation of staking
sheets upon which the Final Inventory is based show the accurate
location, number, and kind of all units of construction of the
project and show all work performed in accordance with the
Construction Contract.
6. All defects in workmanship and materials reported during the
period of construction of the Project have been corrected.
7. The total cost of the Project as completed is ________
dollars ($________). The Project consists of facilities shown on the
Statement of Construction which is true and correct and which is
attached hereto and made a part hereof.
Dated this ________ day of ________, 19____.
________ Name of Engineer
By ________
________ Title
________ Date
Approved as to Items 1 and 6 above:
________ RUS Field Engineer
We, the undersigned Owner and Contractor, do hereby certify
that:
1. The Project has been completed in accordance with the
provisions of the Construction Contract, dated ________ 19____,
provided, however, that acceptance of the Project by the Owner shall
not be deemed to relieve the Contractor of its obligations contained
in the Construction Contract with respect to defective workmanship
or, materials discovered within one year after the date of
completion.
2. If applicable, the Final Inventory attached hereto and made a
part hereof is a complete and accurate summary of all units of
construction in the Project and of work performed in accordance with
the Construction Contract.
________ Owner
By ________ President
________ Date
________ Name of Contractor
By ________
________ Title
________ Date
[End of clause]
Sec. 1726.315 Equipment contract, RUS Form 198.
The contract form in this section shall be used when required by
this part.
Equipment Contract
Notice and Instructions to Bidders
1. Sealed proposals for the furnishing and delivery f.o.b.
________ of equipment for the ________ (hereinafter called the
``Owner'') which is to be part of the project known as ________ will
be received by the Owner on or before ________ o'clock, ____ M.,
________ 19____, at ________ at which time and place the proposals
will be publicly opened and read. Any proposal received subsequent
to the time specified will be promptly returned to the Bidder
unopened.
2. The Plans and Specifications, together with all necessary
forms and other documents for bidders may be obtained from the Owner
or from the Engineer, ________ at the latter's office at ________.
The Plans and Specifications may be examined at the office of the
Owner or at the office of the Engineer. [[Page 10172]] A copy of the
loan contract (if the Project is to be financed in whole or in part,
pursuant to a loan contract) between the Owner and the United States
of America acting through the Administrator of the Rural Utilities
Service (hereinafter called the ``Administrator'') and of the loan
contract between the Owner and any other lender, may be examined at
the office of the Owner.
3. Proposals and all supporting instruments must be submitted on
the forms furnished by the Owner and must be delivered in a sealed
envelope addressed to the Owner. The name and address of the Bidder
and the date and hour of the opening of bids must appear on the
envelope in which the Proposal is submitted. Proposals must be
filled in in ink or typewriter. No alterations or interlineations
will be permitted, unless made before submission and initialed and
dated.
4. Prior to the submission of the Proposal, the Bidder shall
make and shall be deemed to have made a careful examination of the
Plans and Specifications and forms of Equipment Contract on file
with the Secretary of the Owner and with the Engineer, and all other
matters, including transportation facilities, that may affect the
cost and the time of completion of the work.
5. Proposals will be accepted only from those prequalified
bidders invited by the Owner to submit a proposal.
6. In estimating the lowest cost to the Owner as one of the
factors in deciding the award of the Contract, the Owner will
consider, in addition to the price quoted in the Proposals, the
following: ________.
7. The Contract, when executed, shall be deemed to include the
entire agreement between the parties thereto, and the Bidder shall
not claim any modification thereof resulting from any representation
or promise made at any time by any officer, agent, or employee of
the Owner or by any other person.
8. The Owner reserves the right to waive minor irregularities or
minor errors in any Proposal if it appears to the Owner that such
irregularities or errors were made through inadvertence. Any such
irregularities or errors so waived must be corrected on the Proposal
in which they occur prior to the execution of any contract which may
be awarded thereon.
9. The Owner reserves the right to reject any or all Proposals.
________ Owner
By ________
________ Date
Proposal
To: ________ (hereinafter called the ``Owner''.)
1. The undersigned (hereinafter called the ``Bidder'') hereby
proposes to furnish and deliver the equipment (hereinafter called
the ``Equipment'') described in the Plans and Specifications
attached hereto and made a part hereof for the following prices:
Item ________.
2. The prices of Equipment set forth herein shall include the
cost of delivery to ________. Such delivery shall be made within
________ days after the receipt of the written order of the Owner.
3. This Proposal is made pursuant to the provisions of the
Notice and Instructions to Bidders, if any shall be attached hereto,
and the Bidder agrees to the terms and conditions thereof.
4. The Bidder warrants the accuracy of all statements contained
in the Bidder's Qualifications, if any shall be submitted, and
agrees that the Owner shall rely upon such accuracy as a condition
of the Contract in the event that this Proposal is accepted.
5. The Bidder warrants that this Proposal is made in good faith
and without collusion or connection with any other person or persons
bidding for the same work.
6. The Bidder agrees that, in the event this Proposal is
accepted, it will execute a Contract in the form attached hereto.
7. The Bidder warrants that the Equipment will conform to the
performance data and guarantees which are attached hereto and by
this reference made a part hereof.
8. If, in submitting this Proposal, the Bidder has made any
change in the form of Proposal or Contract furnished by the Owner,
the Bidder understands that the Owner and the Administrator may
evaluate the effect of such change as they see fit or they may
exclude the Proposal from consideration in determining the award of
the Contract.
9. The Bidder represents that:
It has ________, does not have ________, 100 or more employees,
and if it has, that it has ________, has not ________, furnished the
Equal Employment Opportunity-Employers Information Report EEO-1,
Standard Form 100, required of employers with 100 or more employees
pursuant to Executive Order 11246 and Title VII of the Civil Rights
Act of 1964.
The Bidder agrees that it will obtain, prior to the award of any
subcontract for more than $10,000 hereunder to a subcontractor with
100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100.
The Bidder agrees that if it has 100 or more employees and has
not submitted a report on Standard Form 100 for the current
reporting year and that if this contract will amount to more than
$10,000, the Bidder will file such report, as required by law, and
notify the Owner in writing of such filing prior to the Owner's
acceptance of this Proposal.
10. The Bidder certifies that it does not maintain or provide
for its employees any segregated facilities at any of its
establishments, and that it does not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Bidder certifies further that it will
not maintain or provide for its employees any segregated facilities
at any of its establishments, and that it will not permit its
employees to perform their services at any location, under its
control, where segregated facilities are maintained. The Bidder
agrees that a breach of this certification is a violation of the
Equal Opportunity Clause in this contract. As used in this
certification, the term ``segregated facilities'' means any waiting
rooms, work areas, restrooms and washrooms, restaurants and other
eating areas, timeclocks, locker rooms and other storage or dressing
areas, parking lots, drinking fountains, recreation or entertainment
areas, transportation, and housing facilities provided for employees
which are segregated by explicit directive or are in fact segregated
on the basis of race, color, religion, or national origin, because
of habit, local custom, or otherwise. The Bidder agrees that (except
where it has obtained identical certifications from proposed
subcontractors for specific time periods) it will obtain identical
certifications from proposed subcontractors prior to the award of
subcontracts exceeding $10,000 which are not exempt from the
provisions of the Equal Opportunity Clause, and that it will retain
such certifications in its files.
________ Name of Bidder
________ Address of Bidder
By ________
________ Title of Officer
________ Date
Equipment Contract
Agreement made ________ 19____, between ________ (hereinafter
called the ``Purchaser'') and ________ (hereinafter called the
``Seller''), a corporation organized and existing under the laws of
the State of ________.
Whereas, the Purchaser desires to purchase and the Seller
desires to sell the equipment described herein for the project
financed in part or whole by a loan to the Purchaser from the United
States of America, acting through the Administrator of the Rural
Utilities Service (hereinafter called the ``Administrator'') which
project is designated ________.
Now therefore, in consideration of the mutual undertakings
herein contained, the parties hereto agree as follows:
Section 1--Acceptance of Proposal
(a) The Purchaser accepts the Proposal which is attached hereto
and by this reference made a part hereof, and the parties hereto
agree that the Seller shall sell and deliver to the Purchaser and
the Purchaser shall purchase and receive from the Seller the
equipment (hereinafter called the ``Equipment'') described in the
Proposal upon the terms and conditions herein stated.
(b) The prices set forth in the Proposal include the cost of
delivery to ________.
(c) The prices set forth in the Proposal do not include any sums
which are or may be payable by the Seller on account of taxes
imposed by any taxing authority upon the sale, purchase or use of
the Equipment. If any such tax is applicable to the sale, purchase
or use of the Equipment hereunder, the amount thereof shall be added
to the purchase price and paid by the Purchaser.
Section 2--Delivery
The Seller shall deliver the Equipment within ________ days
after receipt of the written order or orders of the Purchaser. The
time for delivery shall be extended for the period of any reasonable
delay due exclusively to causes beyond the control and without the
fault of the Seller, including, but not limited to, acts of God,
fires, strikes, and floods.
Section 3--Payment
Upon the shipment of any Equipment hereunder, the Seller shall
submit to the [[Page 10173]] Purchaser a detailed statement of the
Equipment shipped. The Purchaser shall, upon receipt of the
Equipment, pay the Seller ninety percent (90%) of the contract price
of the Equipment. When the Equipment has been installed, placed in
satisfactory operation, tested and accepted by the Purchaser, the
Purchaser shall make final payments therefor to the Seller;
provided, however, such final payment shall be made not later than
one-hundred eighty (180) days after delivery of the Equipment,
unless such acceptance by the Purchaser shall be withheld because of
the fault of the Seller.
Section 4--Defective Material and Workmanship
(a) All Equipment furnished hereunder shall be subject to the
inspection, tests, and approval of the Purchaser and the
Administrator and the Seller shall furnish all information required
concerning the nature of source of any Equipment and provide
adequate facilities for testing and inspecting the Equipment at the
plant of the Seller.
(b) The Equipment furnished hereunder shall become the property
of the Purchaser upon delivery, provided, however, that the
Purchaser or the Administrator, within one year after delivery or
within the period for which the Equipment is guaranteed, whichever
is longer, may reject any Equipment which does not comply with the
Specifications attached hereto and made a part hereof or with the
guarantees, if any, of the Seller and the manufacturer. Upon any
such rejection, the Seller shall repair or replace such defective
Equipment within a reasonable time after notice in writing from the
Purchaser and in the event of failure by the Seller so to do, the
Purchaser may make such replacement and the cost and expense thereof
shall be paid by and recoverable from the Seller.
Section 5--Miscellaneous
(a) All manufacturers' guarantees of Equipment, if any, shall be
transferred and assigned to the Purchaser upon delivery of any
Equipment and before final payment is made for such Equipment. Such
guarantees shall be in addition to those required of the Seller by
other provisions of this Contract.
(b) The Seller shall hold harmless and indemnify the Purchaser
from any and all claims, suits, and proceedings for infringement of
any patent or patents covering Equipment purchased hereunder.
(c) In the performance of this contract there shall be furnished
only such unmanufactured articles, materials, and supplies as have
been mined or produced in the United States, Mexico, or Canada, and
only such manufactured articles, materials, and supplies as have
been manufactured in the United States substantially all from
articles, materials, or supplies mined, produced or manufactured, as
the case may be, in the United States, Mexico, or Canada; provided
that other articles, materials, or supplies may be used in the event
and to the extent that the Administrator shall expressly in writing
authorize such use pursuant to the provisions of the Rural
Electrification Act of 1938, being Title IV of Public Resolution No.
122, 75th Congress, approved June 21, 1938. The Seller agrees to
submit to the Purchaser such certificates with respect to compliance
with the foregoing provision as the Administrator from time to time
may require.
(d) During the performance of this contract, the Seller agrees
as follows:
(1) The Seller will not discriminate against any employee or
applicant for employment because of race, color, religion, sex, or
national origin. The Seller will take affirmative action to ensure
that applicants are employed, and that employees are treated during
employment without regard to their race, color, religion, sex, or
national origin. Such action shall include, but not be limited to,
the following: Employment, upgrading, demotion or transfer;
recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection for training,
including apprenticeship. The Seller agrees to post in conspicuous
places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this
nondiscrimination clause.
(2) The Seller will, in all solicitations or advertisements for
employees placed by or on behalf of the Seller, state that all
qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, or national origin.
(3) The Seller will send to each labor union or representative
of workers with which it has a collective bargaining agreement or
other contract or understanding, a notice to be provided advising
the said labor union or workers' representative of the Seller's
commitments under this section, and shall post copies of the notice
in conspicuous places available to employees and applicants for
employment.
(4) The Seller will comply with all provisions of Executive
Order 11246 of September 24, 1965, and of the rules, regulations and
relevant orders of the Secretary of Labor.
(5) The Seller will furnish all information and reports required
by Executive Order 11246 of September 24, 1965, and by rules,
regulations and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations and orders.
(6) In the event of the Seller's noncompliance with the
nondiscrimination clauses of this contract or with any of the said
rules, regulations or orders, this contract may be cancelled,
terminated or suspended in whole or in part and the Seller may be
declared ineligible for further Government contracts or federally
assisted construction contracts in accordance with procedures
authorized in Executive Order 11246 of September 24, 1965, and such
other sanctions may be imposed and remedies invoked as provided in
the said Executive Order or by rule, regulation or order of the
Secretary of Labor, or as otherwise provided by law.
(7) The Seller will include the portion of the sentence
immediately preceding paragraph (1) and the provisions of paragraphs
(1) through (7) in every subcontract or purchase order unless
exempted by rules, regulations or orders of the Secretary of Labor
issued pursuant to Section 204 of Executive Order 11246 of September
24, 1965, so that such provisions will be binding upon each
subcontractor or vendor. The Seller will take such action with
respect to any subcontract or purchase order as the administering
agency may direct as a means of enforcing such provisions, including
sanctions for noncompliance: Provided, however, that in the event a
Seller becomes involved in, or is threatened with, litigation with a
subcontractor or vendor as a result of such direction by the
administering agency, the Seller may request the United States to
enter into such litigation to protect the interest of the United
States.
(e) Each and all of the covenants and agreements herein
contained shall extend to and be binding upon the successors and
assigns of the parties hereto provided, however, that the Seller
shall not assign this contract or any part hereof without approval
in writing of the Purchaser and the Administrator, and further that
the Seller shall not enter into any contract with any person, firm
or corporation for the performance of the Seller's obligations
hereunder, or any part thereof, without the approval in writing of
the Purchaser.
(f) This contract shall become effective only upon approval by
the Administrator. Neither this contract nor any provision thereof
shall be modified, amended, rescinded, waived, or terminated without
the approval in writing of the Administrator. Amendments executed on
RUS Form 238 are not subject to approval of the Administrator,
except that when a contract amendment along with all previous
amendments to this contract cause the total amended contract price
to exceed 120 percent of the original contract price, as stated in
the Seller's proposal and accepted by the Owner, that amendment and
all subsequent amendments to this contract shall be made subject to
the approval of the Administrator.
1In Witness Whereof, the parties hereto have caused this
contract to be signed in their respective corporate names by their
presidents and their corporate seals to be hereunto affixed and
attested by their secretaries, all as of the day and year first
above written.
\1\When Seller is a corporation this section of agreement to be
used.
---------------------------------------------------------------------------
________ Purchaser
By ________ President
Attest: ________ Secretary
________ Seller
By ________ President
Attest: ________ Secretary
2In Witness Whereof, the Purchaser has caused this contract
to be signed in its corporate name by its President and its
corporate seal to be hereunto affixed and attested by its Secretary,
and the Seller has (have) set his (their) hand(s), all as of the day
and year first above written.
\2\When Seller is an individual or partnership this section of
agreement to be used. If a partnership--all partners shall sign.
---------------------------------------------------------------------------
________ Purchaser
By ________ President
Attest: ________ Secretary [[Page 10174]]
________ Seller
________ Name
________ Title
[End of clause]
Secs. 1726.316-1726.319 [Reserved]
Sec. 1726.320 Construction contract, generating, RUS Form 200.
The contract form in this section shall be used when required by
this part.
Construction Contract--Generating
Notice and Instructions to Bidders
1. Sealed proposals for the furnishing, delivery and
installation of equipment and materials for the electric generating
plant of ________ (hereinafter called the ``Owner'') which is to be
part of the system known as ________ will be received by the Owner
on or before ____ o'clock __.M.,____, 19__, at ____, at which time
and place the proposals will be publicly opened and read. Any
proposal received subsequent to the time specified will be promptly
returned to the Bidder unopened.
2. Obtaining Documents. The Plans and Specifications together
with all necessary forms and other documents for bidders may be
obtained from the Owner or from the Engineer, ________, at the
latter's office at ________ upon the payment of $________, all of
which will be refunded to each bona fide bidder within ten days
after the bid opening. The Plans and Specifications may be examined
at the office of the Owner or at the office of the Engineer. A copy
of the Loan Contract (if the Project is to be financed, in whole or
in part, pursuant to a loan contract) between the Owner and the
United States of America acting through The Administrator of the
Rural Utilities Service (hereinafter called the ``Administrator''),
and of the Loan Contract between the Owner and any other lender may
be examined at the office of the Owner. Each set of documents will
have a serial number, given by the Engineer, and the number of each
set with the name of the purchaser will be recorded by the
Engineers. Bids will be accepted only from the original purchasers.
3. Manner of Submitting Proposals. Proposals and all supporting
instruments must be submitted on the forms furnished by the Owner
and must be delivered in a sealed envelope addressed to the Owner.
The name and address of the Bidder, its license number, if a license
is required by the State, and the date and hour of the opening of
bids must appear on the envelope in which the Proposal is submitted.
Proposals must be filled in in ink or typewritten. No alterations of
interlineations will be permitted, unless made before submission and
initiated and dated.
4. Familiarity with Conditions. Prior to the submission of the
Proposal, the Bidder shall make and shall be deemed to have made a
careful examination of the site of the Project and of the Plans and
Specifications, Construction Drawings and forms of Contractor's
Proposal and Acceptance, and Contractor's Bond on file with the
Owner and with the Engineer, and shall become informed as to the
location and nature of the proposed construction, the ecological and
environmental criteria to be followed, the transportation
facilities, the kind and character of soil and terrain to be
encountered, the kind of facilities required before and during the
construction of the Project, general local conditions and all other
matters that may affect the cost and the time of completion of the
Project. Bidders will be required to comply with all applicable
statutes, regulations, etc., including those pertaining to the
licensing of contractors, and the so-called ``Kick-Back'' Statute
(48 Stat. 948) and regulations issued pursuant thereto.
5. Proposals will be accepted only from those prequalified
bidders invited by the Owner to submit a proposal.
6. The Time for Completion of the Project shall be as specified
by the Engineer in the Proposal.
7. Bid Bond. Each Proposal must be accompanied by a Bid Bond in
the form attached or a certified check on a bank that is a member of
the Federal Deposit Insurance Corporation, payable to the order of
the Owner, in an amount equal to ten percent (10%) of the maximum
bid price. Each Bidder agrees, provided its Proposal is one of the
three low Proposals, that, by filing its Proposal together with such
Bid Bond or check in consideration of the Owner's receiving and
considering such Proposal, said Proposal shall be firm and binding
upon each such Bidder and such Bid Bond or check shall be held by
the Owner until a Proposal is accepted and a satisfactory
Contractor's Bond is furnished (where required) by the successful
Bidder and such acceptance has been approved by the Administrator,
or for a period not to exceed sixty (60) days from the date
hereinbefore set for the opening of Proposals, whichever period
shall be the shorter. If such Proposal is not one of the three low
Proposals, the Bid Bond or check will be returned in each instance
within a period of ten (10) days to the Bidder furnishing same.
8. Contractor's Bond. The successful Bidder will be required to
execute two additional counterparts of the Proposal and, for a
Contract in excess of $100,000, to furnish a Contractor's Bond in
triplicate in the form attached hereto with sureties listed by the
United States Treasury Department as Acceptable Sureties in a penal
sum not less than the Contract price.
9. Failure to Furnish Contractor's Bond. Should the successful
Bidder fail or refuse to execute such counterparts of the Proposal
or to furnish a Contractor's Bond (where required) within ten (10)
days after written notification of the acceptance of the Proposal by
the Owner, the Bidder will be considered to have abandoned the
Proposal. In such event, the Owner shall be entitled (a) to enforce
the Bid Bond in accordance with its terms, or (b) if a certified
check has been delivered with the Proposal, to retain from the
proceeds of the certified check the difference (not exceeding the
amount of the certified check) between the amount of the Proposal
and such larger amount for which the Owner may in good faith
contract with another party to construct the Project. The term
``successful Bidder'' shall be deemed to include any Bidder whose
proposal is accepted after another Bidder has previously refused or
has been unable to execute the counterparts of the proposal or to
furnish a satisfactory Contractor's Bond (where required.)
10. Factors in Deciding the Award of the Contract. In estimating
the lowest cost to the Owner as one of the factors in deciding the
award of the Contract, the Owner will consider, in addition to the
prices quoted in the Proposals, the following: ________.
11. Contract is Entire Agreement. The Contract to be effected by
the acceptance of the Proposal shall be deemed to include the entire
agreement between the parties thereto, and the Bidder shall not
claim any modification thereof resulting from any representation or
promise made at any time by any officer, agent or employee of the
Owner or by any other person.
12. Minor Irregularities. The Owner reserves the right to waive
minor irregularities or minor errors in any Proposal, if it appears
to the Owner that such irregularities or errors were made through
inadvertence. Any such irregularities or errors so waived must be
corrected on the Proposal prior to the acceptance thereof by the
Owner.
13. Bid Rejection. The Owner reserves the right to reject any or
all Proposals.
14. Definition of Terms. The terms ``Administrator'',
``Engineer'', ``Supervisor'', ``Project'', ``Completion of
Construction'' and ``Completion of the Project,'' as used throughout
this Contract, shall be as defined in Article VI, Section 1 of the
Contractor's Proposal.
15. The Owner Represents:
(a) If by provisions of the Contractor's Proposal the Owner
shall have undertaken to furnish any materials for the construction
of the Project, such materials are on hand at locations specified or
if such materials are not on hand they will be made available to the
successful Bidder at the locations specified before the time such
materials are required for construction.
(b) All funds necessary for prompt payment for the construction
of the Project will be available. If the Owner shall fail to comply
with any of the undertakings contained in the foregoing
representations or if any of such representations shall be
incorrect, the Bidder will be entitled to an extension of time of
completion for a period equal to the delay, if any, caused by the
failure of the Owner to comply with such undertakings or by any such
incorrect representations, provided the Bidder shall have promptly
notified the Owner in writing of its desire to extend the time of
completion, and provided, further, that such extension, if any, of
the time of the completion shall be the sole remedy of the Bidder
for the Owner's failure, because of conditions beyond the control
and without the fault of the Owner, to furnish materials in
accordance with subparagraph a, hereof.
________ Owner
By ________
____, 19__
Contractor's Proposal
To Furnish, Deliver and Install Equipment and Materials
To: ________ (hereinafter called the ``Owner'') [[Page 10175]]
Article I--General
Section 1. Offer to Furnish, Deliver and Install. The
undersigned (hereinafter called the ``Bidder'') hereby proposes to
furnish, deliver and install the materials, supplies and equipment
(hereinafter called the ``Project'') described in the plans,
specifications and drawings (hereinafter called the
``Specifications'') attached hereto and made a part hereof, financed
in part or whole by a loan to the Owner by the United States of
America, acting through the Administrator of the Rural Utilities
Service (hereinafter called the ``Administrator'') and designated
________.
Section 2. Familiarity with Conditions. The Bidder has made a
careful examination of the site of the Project and of the Plans and
Specifications, Construction Drawings, and form of Contractor's Bond
attached hereto, and has become informed as to the location and
nature of the proposed construction, the transportation facilities
and the kind of facilities required before and during the
construction of the Project, and has become acquainted with the
labor conditions, the ecological and environmental criteria to be
followed, state and local laws and regulations which would affect
work on the proposed construction.
Section 3. License. The Bidder warrants that a Contractor's
License is ____, is not ____, required, and if required, it
possesses Contractor's License No. ____ of the State of ____, in
which the Project is located and said license expires on ____, 19__.
Section 4. The Bidder warrants that this Proposal is made in
good faith and without collusion or connection with any person or
persons bidding for the same work.
Section 5. The Bidder warrants that it possesses adequate
financial resources and agrees that in the event this Proposal is
accepted and a Contractor's Bond is required, it will furnish a
Contractor's Bond in the form attached hereto, in a penal sum not
less than the maximum Contract Price, with a surety or sureties
listed by the United States Treasury Department as Acceptable
Sureties.
In the event that the surety or sureties on the performance bond
delivered to the Owner contemporaneously with the execution of the
Contract or on any bond or bonds delivered in substitution thereof
or in addition thereto shall at any time become unsatisfactory to
the Owner or the Administrator, the Bidder agrees to deliver to the
Owner another or an additional bond.
The Bidder understands, that, if in submitting this Proposal,
the Bidder has made any change in the form of Proposal furnished by
the Owner, that the Owner and the Administrator may evaluate the
effect of such change as they see fit or they may exclude the
Proposal from consideration in determining the award of the
contract.
Article II--Construction
Section 1. Bid Price. The Bidder will construct the Project for
the following sum:
Base Bid ________ Dollars ($______)
Alternate No. 1 ________ Dollars ($______)
Alternate No. 2 ________ Dollars ($______)
Section 2. Taxes. The price quoted herein includes all amounts
which the Bidder estimates will be payable by the Bidder or the
Owner on account of taxes imposed by any taxing authority upon the
sale, purchase or use of materials, supplies or equipment or
services or labor of installation to be incorporated in the Project.
The Bidder will pay all such taxes and will furnish to appropriate
taxing authorities any required information and reports pertaining
thereto.
Section 3. Time and Manner of Construction.
(a) The time of Completion of Construction of the Project is of
the essence of this Contract. The Bidder will commence the work
within ____ calendar days after the Owner shall have given the
Bidder written notice to commence construction, will prosecute
diligently and complete such construction to the satisfaction of the
Owner and the Administrator within ____ calendar days after giving
of such notice.
(b) The time of Completion of Construction shall be extended for
the period of any reasonable delay due exclusively to causes beyond
the control and without fault of the Bidder, including Acts of God,
fires, strikes, floods, inability to obtain materials, changes in
the Specifications as herein provided and acts or omissions of the
Owner with respect to matters for which the Owner is solely
responsible: Provided, however, that no such extension of time for
completion shall be granted the Bidder unless within ten (10) days
after the happening of any event relied upon by the Bidder for such
an extension of time the Bidder shall have made a request therefor
in writing to the Owner, and provided further that no delay in such
time of completion or in the progress of the work which results from
any of the above causes except acts or omissions of the Owner, shall
result in any liability on the part of the Owner.
(c) In the sequence of construction, the Owner, acting through
the Engineer, shall have the right to direct the Bidder to perform
any part or parts of the work which is to be performed at the site
of the Project before any other part or parts, of such work and the
Bidder agrees to comply with all such directions. The Bidder shall
comply with all other reasonable directions of the Owner.
(d) The Owner, acting through the Engineer, may from time to
time during the progress of the construction of the Project make
such changes, additions to or subtractions from the Plans and
Specifications and sequence of construction provided for in the
previous paragraph which are part of the Contractor's Proposal as
conditions may warrant: Provided, however, that if any change in the
construction to be done shall require an extension of time, a
reasonable extension will be granted if the Bidder shall make a
written request therefor to the Owner within ten (10) days after any
such change is made. If the cost of the Project to the Bidder to
make the change shall be increased or decreased, the contract price
shall be amended by an amount equal to the reasonable cost hereof in
accordance with a construction amendment signed by the Owner and the
Bidder and approved by the Administrator\1\, but no claim for
additional compensation for any such change or addition will be
considered unless the Bidder shall have made a written request
therefor to the Owner prior to the commencement of work in
connection with such change or addition. The reasonable cost of any
increase or decrease in the contract price covered by contract
amendment as outlined above, in the absence of other mutual
agreement, shall be computed on the basis of the direct cost of
materials, f.o.b. the site of the Project, plus the direct cost of
labor necessary to incorporate such materials into the Project
(including actual cost of payroll taxes and insurance), plus ____
percent of the direct cost of materials and labor. Labor costs shall
be limited to the direct costs for workmen and foremen. Costs for
profit and overhead for subcontractors, if any, Bidder's main office
overhead, job office overhead and superintendence shall not be
included.
\1\As long as the total price of this contract including all
amendments is less than 120 percent of the original contract price
as stated in the acceptance hereto, amendments executed on RUS Form
238 are not subject to the approval of the Administrator. Whenever
an amendment to this contract causes the total amended contract to
exceed 120 percent of the original contract price, that amendment
and all subsequent amendments to this contract shall be made subject
to the approval of the Administrator.
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Section 4. The Bidder agrees that in the event this Proposal is
accepted it will make available for use in connection with the
proposed construction all necessary tools and equipment and
qualified superintendents and foremen.
Section 5. Supervision and Inspection.
a. The Bidder will give sufficient supervision to the work,
using its best skill and attention. The Bidder will carefully study
and compare all drawings, specifications and other instructions and
will at once report to the Owner any error, inconsistency or
omission which it may discover. The Bidder shall cause the
construction work on the Project to receive constant supervision by
a competent superintendent (hereinafter called the
``Superintendent'') who shall be present at all times during working
hours where construction is being carried on. The Bidder shall also
employ, in connection with the construction of the Project, capable,
experienced and reliable foremen and such skilled workmen as may be
required for the various classes of work to be performed. Directions
and instructions given to the Superintendent shall be binding upon
the Bidder.
b. The Owner reserves the right to require the removal from the
Project of any employee of the Bidder if in the judgment of the
Owner such removal shall be necessary in order to protect the
interest of the Owner. The Owner or the Supervisor, if any, shall
have the right to require the Bidder to increase the number of its
employees and to increase or change the amount or kinds of tools and
equipment if at any time the progress of the work shall be
unsatisfactory to the Owner or Supervisor; but the failure of the
Owner or Supervisor to give any such directions shall not relieve
the Bidder of its obligations to complete the work within the time
and in the manner specified in this Proposal.
c. The manner of construction of the Project, and all materials
and equipment [[Page 10176]] used therein, shall be subject to the
inspection, tests and approval of the Owner and the Administrator,
and the Bidder shall furnish all information required by the Owner
or by the Administrator concerning the nature or source of any
materials incorporated or to be incorporated in the Project. The
Owner and the Administrator shall have the right to inspect all
payrolls, invoices of materials, and other data and records of the
Bidder and of any subcontractor, relevant to the construction of the
Project. The Bidder shall provide all reasonable facilities
necessary for such inspection and tests and shall maintain an office
at the site of the Project, with telephone service where obtainable
and at least one office employee to whom directions and instructions
of the Owner may be delivered. Delivery of such directions or
instructions in writing to the employee of the Bidder at such office
shall constitute delivery to the Bidder. The Bidder shall have an
authorized agent accompany the Engineer when final inspection is
made and, if requested by the Owner, when any other inspection is
made.
d. In the event that the Owner through its Engineer, or the
Administrator, shall determine that the construction contains or may
contain numerous defects, it shall be the duty of the Bidder and the
Bidder's Surety or Sureties, if any, to have an inspection made by
an engineer approved by the Owner and the Administrator for the
purpose of determining the exact nature, extent and location of such
defects.
e. The Engineer may recommend to the Owner that the Bidder
suspend the work wholly or in part for such period or periods as the
Engineer may deem necessary due to unsuitable weather or such other
conditions as are considered unfavorable for the satisfactory
prosecution of the work or because of the failure of the Bidder to
comply with any of the provisions of the Contract: Provided,
however, that the Bidder shall not suspend work pursuant to this
provision without written authority from the Owner to do so. The
time of completion hereinabove set forth shall be increased by the
number of days of any such suspension, except when such suspension
is due to the failure of the Bidder to comply with any of the
provisions of this Contract. In the event that work is suspended by
the Bidder with the consent of the Owner, the Bidder before resuming
work shall give the Owner at least twenty-four (24) hours notice
thereof in writing.
Section 6. Defective Materials and Workmanship.
a. The acceptance of any materials, equipment or any workmanship
by the Owner or the Engineer shall not preclude the subsequent
rejection thereof if such materials, equipment, or workmanship shall
be found to be defective after delivery or installation, and any
such materials, equipment or workmanship found defective before
final acceptance of the construction shall be replaced or remedied,
as the case may be, including the installation and removal thereof,
by and at the expense of the Bidder. Any such condemned material or
equipment shall be immediately removed from the site of the Project
by the Bidder at the Bidder's expense. The Bidder shall not be
entitled to any payment hereunder so long as any defective
materials, equipment, or workmanship in respect to the Project, of
which the Bidder shall have had notice, shall not have been replaced
or remedied, as the case may be.
b. Notwithstanding the acceptance of workmanship, materials,
supplies or equipment, or the giving of any certificate with respect
to the completion of the work, if during the construction or within
one year after such completion, or within such longer period as the
Project or any part thereof may be guaranteed by other provisions of
the Contract or the Specifications, the workmanship, materials,
supplies or equipment shall be found to be defective or not in
conformity with the requirements of the Specifications, the Bidder
shall replace such defective materials or equipment or remedy any
such defective workmanship within thirty (30) days after notice of
the existence thereof shall have been given to the Bidder by the
Owner. In event of failure by the Bidder to do so, the Owner may
replace such defective materials or equipment or remedy such
defective workmanship, as the case may be, and in such event the
Bidder shall pay to the Owner the cost and expense thereof.
Article III--Payments and Release of Liens
Section 1. Payments to Bidder.
a. Within the first fifteen (15) days of each calendar month,
the Owner shall make partial payment to the Bidder for construction
accomplished during the preceding calendar month on the basis of
estimates thereof certified to by the Bidder, and approved by the
Engineer and by the Owner solely for the purpose of payment:
Provided, however, that such approval shall not be deemed approval
of the workmanship or materials; and provided further, that in
estimating the amount of construction accomplished, consideration
shall be given only to equipment and materials incorporated into the
Project and equipment and materials delivered to the site in
accordance with approved shipping schedule. Only ninety percent
(90%) of each such estimate approved during the construction of the
Project shall be paid by the Owner to the Bidder prior to Completion
of the Project. Upon completion by the Bidder of the construction of
the Project, the Engineer shall inspect the work performed hereunder
and if he shall find the work acceptable and all provisions
hereunder fully performed, he shall so certify to the Owner and
shall certify the balance found to be due the Bidder.
The Certificate of Completion, Contract Construction, RUS Form
187, a copy of which is attached hereto, after it has been signed by
the Engineer and certified to by the Owner and the Bidder shall
thereupon be submitted to the Administrator for his approval and
when such approval has been given, the Owner shall make payment to
the Bidder of all unpaid amounts to which the Bidder shall be
entitled hereunder unless withheld because of the fault of the
Bidder.
b. Interest at the rate of ______ percent2 (____%) per
annum shall be paid by the Owner to the Bidder on all unpaid
balances due the Bidder commencing fifteen (15) days after the due
date: Provided that the delay in payment beyond the due date is not
caused by any condition within the control of the Bidder. The due
date for purposes of such monthly payment shall be the fifteenth day
of each calendar month provided (1) the Bidder on or before the
fifth day of such month shall have submitted its certification of
construction completed during the preceding month, and (2) the Owner
on or before the fifteenth day of such month shall have approved
such certification. If, for any reasons not due to the Bidder's
fault, such approval shall not have been given on or before the
fifteenth day of such month, the due date for purposes of this
subsection ``b'' shall be the fifteenth day of such month
notwithstanding the absence of the approval of the certification.
\2\The Owner shall insert a rate equal to the lowest ``Prime
Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued.
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c. No payments shall be due while the Bidder is in default in
respect of any of the provisions of this Proposal and the Owner may
withhold from the Bidder the amount of any claim by a third party
against either the Bidder or the Owner based upon an alleged failure
of the Bidder to perform the work hereunder in accordance with the
provisions of this Proposal.
Section 2. Release of Liens and Certificate of Contractor. (See
Sample RUS Form 224, Waiver and Release of Lien, and sample RUS Form
231, Certificate of Contractor.) Upon the completion by the Bidder
of the construction of the Project but prior to the payment to the
Bidder of any amount in excess of ninety percent (90%) of the total
cost of construction, the Bidder shall deliver to the Owner, in
duplicate, releases of all liens and of rights to claim any lien, in
the form attached hereto, from all manufacturers, materialmen, and
subcontractors furnishing services or materials for the Project and
a certificate in the form attached hereto to the effect that all
labor used on or for the project has been paid and that all such
releases have been submitted to the Owner for approval.
Section 3. Payments to Materialmen and Subcontractors. The
Bidder shall pay each materialman, and each subcontractor, if any,
within five (5) days after receipt of any payment from the Owner,
the amount thereof allowed the Bidder for and on account of
materials furnished or construction performed by each materialman or
each subcontractor.
Article IV--Particular Undertakings of the Bidder
Section 1. Protection to Persons and Property. The Bidder shall
at all times exercise reasonable precautions for the safety of
employees on the work and of the public, and shall comply with all
applicable provisions of Federal, State and Municipal safety laws
and building and construction codes. All machinery and equipment and
other physical hazards shall be guarded in accordance with the
``Manual of Accident [[Page 10177]] Prevention in Construction'' of
the Associated General Contractors of America, unless such
instructions are incompatible with Federal, State or Municipal laws
or regulations.
The following provisions shall not limit the generality of the
above requirements:
(a) The Bidder shall at all times keep the premises free from
accumulations of waste materials or rubbish caused by his employees
or work, and at the completion of the work he shall remove all
rubbish from and about the Project and all his tools, scaffolding
and surplus materials and shall leave his work ``broom clean''. The
Bidder shall dispose of waste material by burying it on the work
site or in a manner approved by local authorities, but shall not
dispose of any waste materials or rubbish by open burning. The
Bidder shall provide chemical sanitary facilities which may be
required in compliance with applicable local, State and Federal laws
or regulations.
(b) The Bidder will perform the work in such a manner as to
maximize preservation of aesthetics and conservation of natural
resources, and minimize marring and scarring of the landscape,
erosion of soils and oil spillage. There will be no depositing of
trash in streams or waterways. Herbicides, other chemicals or their
containers will not be deposited in or near streams or waterways.
(c) The Project, from the commencement of work to completion, or
to such earlier date or dates when the Owner may take possession and
control, in whole or in part as hereinafter provided, shall be under
the charge and control of the Bidder and during such period of
control by the Bidder all risks in connection therewith and the
materials, supplies and equipment to be used therein shall be borne
by the Bidder, except risk of loss or of damage to materials or
equipment furnished for or used in connection with the Project by
the Owner, Bidder or any subcontractor, caused by fire, lightning,
wind damage, explosion, riot or civil commotion, aircraft and other
vehicles, and smoke damage (against which perils the Owner will
maintain insurance, hereinafter called ``Builder's Risk
Insurance''). The Bidder will make good and fully repair all
injuries and damages to the Project, or any portion thereof under
the control of the Bidder by reason of any act of God, or any other
casualty or cause whether or not the same shall have occurred by
reason of the Bidder's negligence, except damage covered by the
Owner's Builder's Risk Insurance.
(i) To the maximum extent permitted by law, Bidder shall defend,
indemnify, and hold harmless Owner and Owner's directors, officers,
and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Bidder's employees) and loss, damage to or destruction of
Owner's property or the property of any other person or entity
(including but not limited to Bidder's property) in any manner
arising out of or connected with the Contract, or the materials or
equipment supplied or services performed by Bidder, its
subcontractors and suppliers of any tier. But nothing herein shall
be construed as making Bidder liable for any injury, death, loss,
damage, or destruction caused by the sole negligence of Owner.
(ii) To the maximum extent permitted by law, Bidder shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Bidder, its subcontractors and suppliers of
any tier, and from all losses, demands, and causes of action arising
out of any such lien or claim. Bidder shall promptly discharge or
remove any such lien or claim by bonding, payment, or otherwise and
shall notify Owner promptly when it has done so. If Bidder does not
cause such lien or claim to be discharged or released by payment,
bonding, or otherwise, Owner shall have the right (but shall not be
obligated) to pay all sums necessary to obtain any such discharge or
release and to deduct all amounts so paid from the amount due
Bidder.
(iii) Bidder shall provide to Owner's satisfaction evidence of
Bidder's ability to comply with the indemnification provisions of
subparagraphs i and ii above, which evidence may include but may not
be limited to a bond or liability insurance policy obtained for this
purpose through a licensed surety or insurance company.
(d) The Bidder shall submit to the Owner monthly reports in
duplicate of all accidents giving such data as may be prescribed by
the Engineer.
(e) Upon violation by the Bidder of any of the provisions of
this section, after written notice of such violation given to the
Bidder by the Engineer or the Owner, the Bidder shall immediately
correct such violation. Upon failure of the Bidder so to do the
Owner may correct such violation at the Bidder's expense: Provided,
however, that the Owner may, if it deems it necessary or advisable,
correct such violation at the Bidder's expense without such prior
notice to the Bidder.
Section 2. Insurance. The Bidder shall take out and maintain
throughout the contract period insurance of the following types and
minimum amounts:
(a) Workers' compensation and employers' liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to the workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
(b) Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
(c) Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million per person and $1 million per occurrence, and property
damage limits of $1 million for each occurrence. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
The Owner shall have the right at any time to require public
liability insurance and property damage liability insurance greater
than those required in subsections ``b'' and ``c'' of this Section.
In any such event, the additional premium or premiums payable solely
as the result of such additional insurance shall be added to the
Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3. Assignment of Guarantees. All guarantees of materials
and workmanship running in favor of the Bidder shall be transferred
and assigned to the Owner prior to the time the Bidder receives
final payment.
Section 4. Delivery of Possession and Control to Owner. Upon
written request of the Owner, the Bidder shall deliver to the Owner
full possession and control of any portion of the Project provided
the Bidder shall have been paid at least ninety percent (90%) of the
cost of construction of such portion. Upon such delivery of the
possession and control of any portion of the Project to the Owner,
the risks and obligations of the Bidder as set forth in Article IV,
Section 1 c hereof with respect to such portion so delivered to the
Owner shall be terminated; Provided, however, that nothing herein
contained shall relieve the Bidder of any liability with respect to
defective materials and workmanship as contained in Article II,
Section 6 hereof.
Article V--Remedies
Section 1. Completion on Bidder's Default. If default shall be
made by the Bidder or by any subcontractor in the performance of any
of the terms of this Proposal, the Owner, without in any manner
limiting its legal and equitable remedies in the circumstances, may
serve upon the Bidder and the Surety or Sureties, if any, upon the
Contractor's Bond or Bonds a written notice requiring the Bidder to
cause such default to be corrected forthwith. Unless within twenty
(20) days after the service of such notice upon the Bidder such
default shall be corrected or arrangements for the correction
thereof satisfactory to both the Owner and the Administrator shall
be made by the Bidder or its Surety or Sureties, if any, the Owner
may take over the construction of the Project and
[[Page 10178]] prosecute the same to completion by Contract or
otherwise for the account and at the expense of the Bidder, and the
Bidder and its Surety or Sureties, if any, shall be liable to the
Owner for any cost or expense in excess of the Contract price
occasioned thereby. In such event the Owner may take possession of
and utilize, in completing the construction of the Project, any
materials, tools, supplies, equipment, appliances, and plant
belonging to the Bidder or any of its subcontractors, which may be
situated at the site of the Project. The Owner in such contingency
may exercise any rights, claims or demands which the Bidder may have
against third parties in connection with this Contract and for such
purpose the Bidder does hereby assign, transfer and set over unto
the Owner all such rights, claims and demands.
Section 2. Enforcement of Remedies by Administrator. The
Administrator may on behalf of the Owner exercise any right or
enforce any remedy which the Owner may exercise hereunder.
Section 3. Cumulative Remedies. Every right or remedy herein
conferred upon or reserved to the Owner or the Administrator shall
be cumulative and shall be in addition to every right and remedy now
or hereafter existing at law or in equity or by statute and the
pursuit of any right or remedy shall not be construed as an
election.
Article VI--Miscellaneous
Section 1. Definitions.
a. The term ``Administrator'' shall mean the Administrator of
the Rural Utilities Service of the United States of America and his
duly authorized representatives or any other person in whom or
authority in which may be vested the duties and functions which the
Administrator is now authorized by law to perform.
b. The term ``Engineer'' shall mean the engineer employed by the
Owner, with the approval of the Administrator, to provide
engineering services for the Project, and said Engineer's duly
authorized assistants and representatives.
c. The term ``Supervisor'' shall mean the person, if any,
appointed by the Administrator as the representative of the
Government under the provisions of the Loan Contract providing for
such appointment in special cases. The term is limited to such
special representative of the Government, if any, who is responsible
exclusively to the Administrator and does not refer to the Manager
or any other person employed by the Owner and responsible to it.
d. The term ``Completion of Construction'' shall mean full
performance by the Bidder of the Bidder's obligations under the
Contract and all amendments and revisions thereof except the
Bidder's obligations in respect of Releases of Liens and Certificate
of Contractor under Article III, Section 2 hereof. The term
``Completion of the Project'' shall mean full performance by the
Bidder of the Bidder's obligations under the Contract and all
amendments and revisions thereof. The Certificate of Completion,
signed by the Engineer and approved in writing by the Owner and the
Administrator, shall be the sole and conclusive evidence as to the
date of Completion of Construction and as to the fact of Completion
of the Project.
Section 2. Purchase of Materials. The Bidder shall purchase all
materials, supplies, and equipment outright and not subject to any
conditional sales agreements, bailment lease or other agreement
reserving unto the seller any right, title or interest therein. All
materials, supplies and equipment shall be new and shall become the
property of the Owner when erected in place, or when the Owner shall
have made any payment to the Bidder in respect of such materials;
whichever shall occur first.
Section 3. Materials and Supplies. In the performance of this
contract there shall be furnished only such unmanufactured articles,
materials, and supplies as have been mined or produced in the United
States, Mexico, or Canada, and only such manufactured articles,
materials, and supplies as have been manufactured in the United
States substantially all from articles, materials, or supplies
mined, produced or manufactured, as the case may be, in the United
States, Mexico, or Canada; provided that other articles, materials,
or supplies may be used in the event and to the extent that the
Administrator shall expressly in writing authorize such use pursuant
to the provisions of the Rural Electrification Act of 1938, being
Title IV of Public Resolution No. 122, 75th Congress, approved June
21, 1938. The Bidder agrees to submit to the Purchaser such
certificates with respect to compliance with the foregoing provision
as the Administrator from time to time may require.
Section 4. Patent Infringement. The Bidder shall save harmless
and indemnify the Owner from any and all claims, suits and
proceedings for the infringement of any patent or patents covering
any materials or equipment used in construction of the Project.
Section 5. Compliance with Statutes and Regulations. The Bidder
shall comply with all applicable statutes, ordinances, rules, and
regulations pertaining to the work. The Bidder acknowledges that it
is familiar with the Rural Electrification Act of 1936, as amended,
the so-called ``Kick-Back'' Statute (48 Stat. 948), and regulations
issued pursuant thereto, and 18 U.S.C. Section 287 and 1001, as
amended. The Bidder understands that the obligations of the parties
hereunder are subject to the applicable regulations and orders of
Governmental Agencies having jurisdiction in the premises.
Section 6. Equal Opportunity Provisions.
(a) Bidder's Representations.
The Bidder represents that:
It has ____, does not have ____, 100 or more employees, and if
it has, that it has ____, has not ____ furnished the Equal
Employment Opportunity-Employers Information Report EEO-1, Standard
Form 100, required of employers with 100 or more employees pursuant
to Executive Order 11246 and Title VII of the Civil Rights Act of
1964.
The Bidder agrees that it will obtain, prior to the award of any
subcontract for more than $10,000 hereunder to a subcontractor with
100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100.
The Bidder agrees that if it has 100 or more employees and has
not submitted a report on Standard Form 100 for the current
reporting year and that if this Contract will amount to more than
$10,000, the Bidder will file such report, as required by law, and
notify the owner in writing of such filing prior to the Owner's
acceptance of this Proposal.
(b) Equal Opportunity Clause. During the performance of this
Contract, the Bidder agrees as follows:
(1) The Bidder will not discriminate against any employee or
applicant for employment because of race, color, religion, sex or
national origin. The Bidder will take affirmative action to ensure
that applicants are employed, and that employees are treated during
employment without regard to their race, color, religion, sex or
national origin. Such action shall include, but not be limited to,
the following: Employment, upgrading, demotions or transfer;
recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection of training,
including apprenticeship. The Bidder agrees to post in conspicuous
places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this Equal
Opportunity Clause.
(2) The Bidder will, in all solicitations or advertisements for
employees placed by or on behalf of the Bidder, state that all
qualified applicants will receive consideration for employment
without regard to race, color, religion, sex or national origin.
(3) The Bidder will send to each labor union or representative
of workers, with which it has a collective bargaining agreement or
other contract or understanding, a notice to be provided advising
the said labor union or workers' representative of the Bidder's
commitments under this section, and shall post copies of the notice
in conspicuous places available to employees and applicants for
employment.
(4) The Bidder will comply with all provisions of Executive
Order 11246 of September 24, 1965, and the rules, regulations and
relevant orders of the Secretary of Labor.
(5) The Bidder will furnish all information and reports required
by Executive Order 11246 of September 24, 1965, and by rules,
regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records, and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations, and orders.
(6) In the event of the Bidder's noncompliance with the Equal
Opportunity Clause of this Contract or with any of the said rules,
regulations, or orders, this Contract may be canceled, terminated,
or suspended in whole or in part, and the Bidder may be declared
ineligible for further Government contracts or federally assisted
construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, and such other
sanctions may be imposed and remedies invoked as provided in
Executive Order 11246 of September 24, 1965, or by rule, regulation,
or order of the Secretary of Labor, or as provided by law.
(7) The Bidder will include this Equal Opportunity Clause in
every subcontract or [[Page 10179]] purchase order unless exempted
by the rules, regulations, or order of the Secretary of Labor issued
pursuant to Section 204 of Executive Order 11246 of September 24,
1965, so that such provisions will be binding upon each
subcontractor or vendor. The Bidder will take such action with
respect to any subcontract or purchase order as the administering
agency may direct as a means of enforcing such provisions, including
sanctions for noncompliance; Provided, however, that in the event
Bidder becomes involved in, or is threatened with, litigation with a
subcontractor or vendor as a result of such direction by the
administering agency, the Bidder may request the United States to
enter into such litigation to protect the interests of the United
States.
(c) Certificate of Nonsegregated Facilities. The Bidder
certifies that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Bidder certifies further that it will not maintain or provide for
its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Bidder agrees that a breach of this
certification is a violation of the Equal Opportunity Clause in this
Contract. As used in this certification, the term ``segregated
facilities'' means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Bidder agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific
time periods) it will obtain identical certifications from proposed
subcontractors prior to the award of subcontracts exceeding $10,000
which are not exempt from the provisions of the Equal Opportunity
Clause, and that it will retain such certifications in its files.
Section 7. Nonassignment of Contract. Except as provided in
Section 8 of this Article, the Bidder will not assign this Contract,
or any interest in any funds that may become due hereunder, or enter
into any contract with any person, firm or corporation, for the
performance of the Bidder's obligations hereunder, or any part
hereof without the approval in writing of the Owner, the Surety or
Sureties, if any, and the Administrator.
Section 8. Subcontracts. The Bidder shall not enter into any
subcontract or subcontracts with any person, firm or corporation for
the performance of the Bidder's obligation hereunder in any
aggregate amount in excess of 40% of The Bidder's obligations (to be
calculated on the basis of the total contract price) nor shall the
Bidder enter into any subcontract in excess of $20,000, without the
approval in writing of the Owner and of the Surety or Sureties, if
any, on any bond furnished by the Bidder for the faithful
performance of the Bidder's obligations hereunder. If the Bidder
shall enter into a subcontract with any subcontractor for the
performance of any part of this Contract, the Bidder shall be as
fully responsible to the Owner and the Administrator for the acts
and omissions of such subcontractor and of persons employed by such
subcontractor as the Bidder would be for its own acts and omissions
and those of persons directly employed by it.
Section 9. Contractor. Upon acceptance of this Proposal, the
successful Bidder shall be the Contractor and all references in the
Proposal to the Bidder shall apply to the Contractor.
Section 10. Approval of the Administrator. The acceptance of
this Proposal by the Owner shall not create a contract unless such
acceptance shall be approved in writing by the Administrator within
sixty (60) days after the date set for the opening of proposals.
________ (Bidder)
By ________ (President)
________ (Title)
__________ (Address)
Attest:
__________ (Secretary)
Date __________
The Proposal must be signed with the full name of the Bidder. If
the Bidder is a partnership, the Proposal must be signed in the
partnership name by a partner. If the Bidder is a corporation, the
Proposal must be signed in the corporate name by a duly authorized
officer and the corporate seal affixed and attested by the Secretary
of the Corporation.
Acceptance
Subject to the approval of the Administrator, the Owner,
__________, hereby accepts the Proposal of the above-named Bidder
for the construction of the Project therein described for the Base
Bid of $ ________ and
Alternate No. 1 $________
Alternate No. 2 $________
The total contract price is $________
________ (Owner)
By __________ President
Attest:
__________ (Secretary)
__________ Date of Contract
[End of clause]
Sec. 1726.321 Right-of-way clearing contract, RUS Form 201.
The contract form in this section shall be used when required by
this part. This form refers to guide drawings, which do not contain
requirements, and, hence, are not included in this part. The guide
drawings are included in the printed form available from RUS (see
Sec. 1726.300.).
Right-of-Way Clearing Contract
Contractor's Proposal
(Proposal shall be submitted in ink or typewritten)
To: __________ (Hereinafter called the ``Owner'')
Article I--General
Section 1. Offer to Clear. The undersigned (hereinafter called
the ``Contractor'') hereby proposes to furnish all materials,
equipment, machinery, tools, labor, transportation and other means
required to clear rights-of-way for the rural electric system
bearing the RUS Designation __________ in strict accordance with the
Specifications and Drawings therefor, attached hereto and made a
part hereof, for the prices hereinafter stated.
Section 2. Description of Project. The Project will consist of
approximately ________ miles of right-of-way clearing. The Project
is located in __________ counties in the State of __________.
Section 3. Description of Contract. The Description of Units,
Specifications, Drawings and Plans attached hereto and made a part
hereof, together with the Proposal and Acceptance constitute the
Contract. The Plans consisting of maps and plan and profile sheets
if transmission clearing is included, showing the number and types
of right-of-way units that are to be cleared, along with other
special drawings are identified as follows:
Section 4. Familiarity with Conditions. The Contractor warrants
that it has made careful examination of the site of the Project and
of the Specifications, Drawings, and form of Contractors' Bond
attached hereto, and has become informed as to the location and
nature of the proposed work, the transportation facilities, the kind
and character of soil and terrain to be encountered, and the kind of
facilities required for undertaking and completing the Project, and
has become acquainted with the labor conditions, state and local
laws and regulations which would affect the proposed work.
Section 5. License. The Contractor warrants that a Contractor's
License is ____, is not ____, required, and if required, it
possesses Contractor's license number ____ for the State of
__________ in which the Project is located and said license expires
on __________, 19____.
Section 6. Contractor's Bond. If the estimated cost of the
clearing of a Section shall exceed $100,000, the Contractor agrees
to furnish, prior to the commencement of work on such Section, a
bond in the penal sum of not less than the estimated cost of the
Section in the form attached hereto with a Surety or Sureties listed
by the United States Treasury Department as acceptable sureties. In
the event that the Surety or Sureties on the performance bond
delivered to the Owner shall at any time become unsatisfactory to
the Owner, the Contractor agrees to deliver to the Owner another or
an additional bond.
Section 7. Taxes. The unit prices for Right-of-Way Clearing
Units in this Proposal include any sums which are or may be payable
by the Contractor on account of taxes imposed by any taxing
authority on payments for materials furnished or services
[[Page 10180]] performed by the Contractor under the terms of this
Contract.
Article II--Construction
Section 1. Time and Manner of Work.
(a) The Contractor agrees to commence work on the Project on a
date (hereinafter called the ``Commencement Date'') which shall be
determined by the Owner after its acceptance of this Proposal, but
in no event will the Commencement Date be later than ____ calendar
days after date of acceptance of this Proposal. The Contractor
further agrees to prosecute diligently and to complete clearing in
strict accordance with the Specifications and Drawings within ____
(____) calendar days (excluding Sundays) after Commencement Date.
(b) The time for Completion of Clearing shall be extended for
the period of any reasonable delay which is due exclusively to
causes beyond the control and without the fault of the Contractor,
including acts of God, fires, floods, inability to obtain materials
and acts or omissions of the Owner with respect to matters for which
the Owner is solely responsible: Provided, however, that no such
extension of time for completion shall be granted the Contractor
unless within ten (10) days after the happening of any event relied
upon by the Contractor for such an extension of time the Contractor
shall have made a request therefor in writing to the Owner, and
provided further that no delay in such time of completion or in the
progress of the work which results from any of the above causes
except acts or omissions of the Owner, shall result in any liability
on the part of the Owner.
(c) The sequence of construction shall be as set forth below,
the numbers or names being the designations of extensions or areas
(hereinafter called the ``Sections'') corresponding to the numbers
or names shown on the maps attached hereto, or if no Sections are
set forth below, the sequence of construction shall be as determined
by the Contractor subject to the approval of the Owner.
(d) The Owner may from time to time during the progress of the
work on the Project make such changes in, additions to or
subtractions from the Specifications, Drawings and sequence of work
provided for in the previous paragraph which are part of the
Contractor's Proposal as conditions may warrant: Provided, however,
that if any change in the work to be done shall require an extension
of time, a reasonable extension will be granted if the Contractor
shall make a written request therefor to the Owner within ten (10)
days after any such change is made. And provided further, that if
the cost to the Contractor of completion of the Project shall be
materially increased by any such change or addition, the Owner shall
pay the Contractor for the reasonable cost thereof in accordance
with a Contract Amendment signed by the Owner and the Contractor,
but no claim for additional compensation for any such change or
addition will be considered unless the Contractor shall have made a
written request therefor to the Owner prior to the commencement of
work in connection with such change or addition.
(e) The Contractor will not perform any work hereunder on
Sundays unless there is urgent need for such Sunday work and the
Owner consents thereto in writing. The time for completion specified
in subsection (a) of this Section 1 shall not be affected in any way
by inclusion of this subsection by the Owner's consent or lack of
consent to Sunday work hereunder.
Section 2. Environmental Protection. The Contractor shall
perform work in such a manner as to maximize preservation of beauty,
conservation of natural resources, and minimize marring and scarring
of the landscape and silting of streams. The Contractor shall not
deposit trash in streams or waterways, and shall not deposit
herbicides or other chemicals or their containers in or near
streams, waterways or pastures. The Contractor shall follow, under
the general direction of the Engineer, the criteria relating to
environmental protection as specified herein by the Engineer.
Section 3. Supervision and Inspection.
(a) The Contractor shall cause the work on the Project to
receive constant supervision by a competent superintendent
(hereinafter called the ``Superintendent'') who shall be present at
all times during working hours where work is being carried on. The
Contractor shall also employ in connection with the Project,
capable, experienced and reliable foremen and such skilled workmen
as may be required for the various classes of work to be performed.
Directions and instructions given to the Superintendent shall be
binding upon the Contractor.
(b) The Owner reserves the right to require the removal from the
Project of any employee of the Contractor if in the judgment of the
Owner such removal shall be necessary in order to protect the
interest of the Owner. The Owner shall have the right to require the
Contractor to increase the number of its employees and to increase
or change the amount or kind of tools and equipment if at any time
the progress of the work shall be unsatisfactory to the Owner; but
the failure of the Owner to give any such directions shall not
relieve the Contractor of its obligations to complete the work
within the time and in the manner specified in this Proposal.
(c) The manner of performance of the work, and all equipment
used therein, shall be subject to the inspection and approval of the
Owner. The Owner shall have the right to inspect all payrolls and
other data and records of the Contractor relevant to the work. The
Contractor will provide all reasonable facilities necessary for such
inspection. The Contractor shall have an authorized agent accompany
the inspector when final inspection is made and, if requested by the
Owner, when any other inspection is made.
(d) In the event that the Owner shall determine that the work
contains or may contain numerous defects, it shall be the duty of
the Contractor and the Contractor's Surety or Sureties to have an
inspection made by an engineer approved by the Owner for the purpose
of determining the exact nature, extent and location of such
defects.
(e) The Engineer may recommend to the Owner that the Contractor
suspend the work wholly or in part for such period or periods as the
Engineer may deem necessary due to unsuitable weather or such other
conditions as are considered unfavorable for the satisfactory
prosecution of the work or because of the failure of the Contractor
to comply with any of the provisions of the Contract: Provided,
however, that the Contractor shall not suspend work pursuant to this
provision without written authority from the Owner so to do. The
time of completion hereinabove set forth shall be increased by the
number of days of any such suspension, except when such suspension
is due to the failure of the Contractor to comply with any of the
provisions of this Contract. In the event that work is suspended by
the Contractor with the consent of the Owner, the Contractor before
resuming work shall give the Owner at least twenty-four (24) hours'
notice thereof in writing.
Section 4. Unsuitable Workmanship. The acceptance of any
workmanship by the Owner or the Engineer shall not preclude the
subsequent rejection thereof if such workmanship shall be found to
be unsuitable. Workmanship found unsuitable before final acceptance
of the work shall be remedied, by and at the expense of the
Contractor. The Contractor shall not be entitled to any payment
hereunder so long as any unsuitable workmanship in respect to the
Project, of which the Contractor shall have had notice, shall not
have been remedied.
Article III--Payment
Section 1. Payments to Contractor.
(a) Within the first fifteen (15) days of each calendar month,
the Owner shall make partial payment to the Contractor for work
accomplished during the preceding calendar month on the basis of a
statement of completed clearing units furnished and certified to by
the Contractor and approved by the Owner solely for the purposes of
payment: Provided, however, that such approval by the Owner shall
not be deemed approval of the workmanship or materials. Only ninety
percent (90%) of each such statement approved during the clearing of
a Section shall be paid by the Owner to the Contractor prior to
completion of the Section. Upon completion by the Contractor of the
clearing of a Section, the Contractor shall prepare a Final
Inventory of the Section showing the total number and character of
clearing units and shall deliver to the Owner a Certificate of
Contractor and Indemnity Agreement in the form attached hereto,
showing the total cost of the work performed and stating (1) that
all persons who have furnished labor in connection with the Project
and subcontractors who have furnished services for the Project have
been paid in full and (2) that the Contractor shall hold the Owner
harmless against any liens arising out of the Contractor's
performance hereunder which may have been or may be filed against
the Owner. Upon the approval of such certificate, the Owner shall
make payment to the Contractor of all amounts to which the
Contractor shall be entitled thereunder which shall not have been
paid.
(b) The Contractor shall be paid on the basis of the number of
clearing units actually completed at the direction of the Owner
shown by the Final Inventory: Provided, however, that the total cost
shall not exceed [[Page 10181]] the total contract price for the
Project as set forth in the Acceptance, unless such excess shall
have been approved in writing by the Owner.
(c) No payment shall be due while the Contractor is in default
in respect of any of the provisions of this Contract and the Owner
may withhold from the Contractor the amount of any claim by a third
party against either the Contractor or the Owner based upon an
alleged failure of the Contractor to perform the work hereunder in
accordance with the provisions of the Contract.
(d) If no Sections are designated in Article II, Section 1 (c)
the term ``Section'' shall mean for purposes of this subsection (a)
and Article IV, Section 3 (b) only, a part of the Project as
designated by the Owner which represents at least twenty-five
percent (25%) of the total contract price as stated in the
Acceptance.
(e) Interest at the rate of ____ percent\1\ (____%) per annum
shall be paid by the Owner to the Contractor on all unpaid balances
due on monthly statements, commencing fifteen (15) days after the
due date; provided the delay in payment beyond the due date is not
caused by any condition within the control of the Contractor. The
due date for purposes of such monthly payment shall be the fifteenth
day of each calendar month provided (1) the Contractor on or before
the fifth day of such month shall have submitted its certification
of right-of-way clearing units completed during the preceding month
and (2) the Owner on or before the fifteenth day of such month shall
have approved such certification. If for reasons not due to the
Contractor's fault, such approval shall not have been given on or
before the fifteenth day of such month, the due date for purposes of
this subsection (e) shall be the fifteenth day of such month
notwithstanding the absence of the approval of the certification.
\1\The Owner shall insert a rate equal to the lowest ``Prime
Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued.
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(f) Interest at the rate of ____ percent\2\ (____%) per annum
shall be paid by the Owner to the Contractor on the final payment
for the Project or any completed Section thereof, commencing fifteen
(15) days after the due date. The due date for purposes of such
final payment shall be the date of approval by the Owner of the
Final Inventory and receipt of the Certificate of Contractor and
Indemnity Agreement as conditions precedent to the making of final
payment.
\2\See Footnote 1.
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Section 2. Payments to Subcontractors. The Contractor shall pay
each subcontractor, if any, within five (5) days after receipt of
any payment from the Owner, the amount thereof allowed the
Contractor for and on account of services performed by each
subcontractor.
Article IV--Particular Undertakings of the Contractor
Section 1. Protection to Persons and Property. The Contractor
shall at all times take all reasonable precautions for the safety of
employees on the work and of the public, and shall comply with all
applicable provisions of Federal, state, and municipal safety laws
and building and construction codes, as well as the safety rules and
regulations of the Owner. All machinery and equipment and other
physical hazards shall be guarded in accordance with the ``Manual of
Accident Prevention in Construction'' of the Associated General
Contractors of America unless such instructions are incompatible
with Federal, state, or municipal laws or regulations.
The following provisions shall not limit the generality of the
above requirements:
(a) The Contractor shall so conduct work on the Project as to
cause the least possible obstruction of public highways.
(b) The Contractor shall provide and maintain all such guard
lights and other protection for the public as may be required by
applicable statutes, ordinances, and regulations or by local
conditions.
(c) The Contractor shall do all things necessary or expedient to
properly protect any and all parallel, converging, and intersecting
lines, joint line poles, highways, and any and all property of
others from damage, and in the event that any such parallel,
converging and intersecting lines, joint line poles, highways, or
other property are damaged in the course of work on the Project the
Contractor shall at its own expense restore any or all of such
damaged property immediately to as good a state as before such
damage occurred.
(d) Where the right-of-way of the Project traverses cultivated
lands, the Contractor shall limit the movement of his crews and
equipment so as to cause as little damage as possible to crops,
orchards, or property and shall endeavor to avoid marring the lands.
All fences which are necessarily opened or moved during work on the
project shall be replaced in as good condition as they were found
and precautions shall be taken to prevent the escape of livestock.
The Contractor shall not be responsible for loss of or damage to
crops, orchards, or property (other than livestock) on the right-of-
way necessarily incident to work on the Project and not caused by
negligence or inefficient operation of the Contractor. The
Contractor shall be responsible for all other loss of or damage to
crops, orchards, or property, whether on or off the right-of-way,
and for all loss of or damage to livestock caused by work on the
Project. The right-of-way for purposes of this said section shall
consist of an area extending ____ feet on both sides of the center
line of the poles along the route of the Project lines, plus such
area reasonably required by the Contractor for access to the route
of the Project lines from public roads to carry on the work.
(e) The Project, from the commencement of work to completion, or
to such earlier date or dates when the Owner may take possession and
control in whole or in part as hereinafter provided, shall be under
the charge and control of the Contractor and during such period of
control by the Contractor all risks in connection with the work on
the Project and the materials to be used therein shall be borne by
the Contractor. The Contractor shall make good and fully repair all
injuries and damages to the Project or any portion thereof under the
control of the Contractor by reason of an act of God or other
casualty or cause whether or not the same shall have occurred by
reason of the Contractor's negligence.
(i) To the maximum extent permitted by law, Contractor shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Contractor's employees) and loss, damage to or
destruction of Owner's property or the property of any other person
or entity (including but not limited to Contractor's property) in
any manner arising out of or connected with the Contract, or the
materials or equipment supplied or services performed by Contractor,
its subcontractors and suppliers of any tier. But nothing herein
shall be construed as making Contractor liable for any injury,
death, loss, damage, or destruction caused by the sole negligence of
Owner.
(ii) To the maximum extent permitted by law, Contractor shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Contractor, its subcontractors and suppliers
of any tier, and from all losses, demands, and causes of action
arising out of any such lien or claim. Contractor shall promptly
discharge or remove any such lien or claim by bonding, payment, or
otherwise and shall notify Owner promptly when it has done so. If
Contractor does not cause such lien or claim to be discharged or
released by payment, bonding, or otherwise, Owner shall have the
right (but shall not be obligated) to pay all sums necessary to
obtain any such discharge or release and to deduct all amounts so
paid from the amount due Contractor.
(iii) Contractor shall provide to Owner's satisfaction evidence
of Contractor's ability to comply with the indemnification
provisions of subparagraphs i and ii above, which evidence may
include but may not be limited to a bond or liability insurance
policy obtained for this purpose through a licensed surety or
insurance company.
(f) Any and all excess earth, rock, debris, underbrush, and
other useless material shall be removed by the Contractor from the
site of the Project as rapidly as practicable as the work
progresses. The Contractor shall not deposit trash in streams or
waterways, and shall not deposit herbicides or other chemicals or
their containers in or near streams, waterways or pastures.
(g) Upon violation by the Contractor of any provisions of this
section, after written notice of such violation given to the
Contractor by the Owner, the Contractor shall immediately correct
such violation. Upon failure of the Contractor so to do the Owner
may correct such violation at the Contractor's expense.
(h) The Contractor shall submit to the Owner monthly reports in
duplicate of all accidents, giving such data as may be prescribed by
the Owner.
(i) The Contractor shall not proceed with the cutting of trees
or clearing of right-of-way [[Page 10182]] without written
notification from the Owner that proper authorization has been
received from the owner of the property and the Contractor shall
promptly notify the Owner whenever any landowner objects to the
trimming or felling of any trees or the performance of any other
work on his land in connection with the Project and shall obtain the
consent in writing of the Owner before proceeding in any such case.
Section 2. Insurance. The Contractor shall take out and maintain
throughout the period of this Agreement the following minimum
amounts of insurance:
(a) Worker's compensation and employer's liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
(b) Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
(c) Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million per person and $1 million each occurrence, and property
damage limits of $1 million for each occurrence. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
The Owner shall have the right at any time to require public
liability insurance and property damage liability insurance greater
than those required in subsection ``b'' and ``c'' of this Section.
In any such event, the additional premium or premiums payable solely
as the result of such additional insurance shall be added to the
Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3. Delivery of Possession and Control to the Owner.
(a) Upon written request of the Owner, the Contractor shall
deliver to the Owner full possession and control of any portion of
the Project provided the Contractor shall have been paid at least
ninety percent (90%) of the cost of the work of such portion. Upon
such delivery of possession and control to the Owner, the risks and
obligations of the Contractor as set forth in Section 1(e) of this
Article IV with respect to such portion so delivered to the Owner,
shall be terminated: Provided, however, that nothing herein
contained shall relieve the Contractor of any liability with respect
to unsuitable workmanship as specified in Article II, Section 4.
(b) Where the construction of a Section as hereinbefore defined
in Article II, Section 1 (c) and Article III, Section 1 (d) shall
have been completed by the Contractor, the Owner agrees, after
receipt of a written request from the Contractor, to accept delivery
of possession and control of such Section upon having inspected the
Section and having found the work acceptable. Upon such delivery of
the possession and control of any such Section to the Owner, the
risk and obligations of the Contractor as set forth in Article IV,
Section 1 (e) hereof with respect to such Section so delivered to
the Owner shall be terminated: Provided, however, that nothing
herein contained shall relieve the Contractor of any liability with
respect to unsuitable workmanship as specified in Article II,
Section 4 hereof.
Section 4. Assignment of Guarantees. All guarantees of materials
and workmanship running in favor of the Contractor shall be
transferred and assigned to the Owner prior to the time the
Contractor receives final payment for any Section.
Article V--Remedies
Section 1. Completion on Contractor's Default. If default shall
be made by the Contractor or by any subcontractor in the performance
of any of the terms of this Proposal, the Owner, without in any
manner limiting its legal and equitable remedies in the
circumstances, may serve upon the Contractor and the Surety, if any,
a written notice requiring the Contractor to cause such default to
be corrected forthwith.
Unless within twenty (20) days after the service of such notice
upon the Contractor and the Surety, if any, such default shall be
corrected or arrangements for the correction thereof satisfactory to
the Owner shall be made, the Owner may take over the work on the
Project and prosecute the same to completion by contract or
otherwise for the account and at the expense of the Contractor, and
the Contractor shall be liable to the Owner for any cost or expense
in excess of the contract price occasioned thereby. In such event
the Owner may take possession of and utilize, in completing the
Project, any materials, tools, supplies, equipment, appliance, and
plant belonging to the Contractor or any of its subcontractors,
which may be situated at the site of the Project. The Owner in such
contingency may exercise any rights, claims, or demands which the
Contractor may have against third persons in connection with this
Proposal and for such purpose the Contractor does hereby assign,
transfer, and set over unto the Owner all such rights, claims, and
demands.
Section 2. Liquidated Damages. The time of the Completion of
Clearing is of the essence of the Contract. Should the Contractor
neglect, refuse or fail to complete the clearing within the time
herein agreed upon, after giving effect to extensions of time, if
any, herein provided, then, in that event and in view of the
difficulty of estimating with exactness damages caused by such
delay, the Owner shall have the right to deduct from and retain out
of such monies which may be then due, or which may become due and
payable to the Contractor the sum of ____ dollars (____) per day for
each and every day that such work is delayed in its completion
beyond the specified time, as liquidated damages and not as a
penalty; if the amount due and to become due from the Owner to the
Contractor is insufficient to pay in full any such liquidated
damages, the Contractor shall pay to the Owner the amount necessary
to effect such payment in full: Provided, however, that the Owner
shall promptly notify the Contractor in writing of the manner in
which the amount retained, deducted or claimed as liquidated damages
was computed.
Section 3. Cumulative Remedies. Every right or remedy herein
conferred upon or reserved to the Owner shall be cumulative, shall
be in addition to every right and remedy now or hereafter existing
at law or in equity or by statute and the pursuit of any right or
remedy shall not be construed as an election: Provided, however,
that the provision of Section 2 of this Article shall be the
exclusive measure of damages for failure by the Contractor to
complete the clearing within the time herein agreed upon.
Article VI--Miscellaneous
Section 1. Definitions.
(a) The term ``Engineer'' shall mean the engineer employed by
the Owner to provide engineering services for the Project and said
Engineer's duly authorized assistants and representatives. The term
``Engineer'' will mean ``Owner'' if no engineer is employed by the
Owner to provide engineering services.
(b) The term ``Completion of Clearing'' shall mean full
performance by the Contractor of the Contractor's obligations under
the Contract and all amendments and revisions thereof except the
Contractor's obligations in respect of furnishing (1) the
``Certificate of Contractor and Indemnity Agreement'' and (2) the
Final Inventory both referred to in Article III, Section 1 hereof.
(c) The term ``Completion'' shall mean full performance by the
Contractor of the Contractor's obligations under the Contract and
all amendments and revisions thereof relating to any Section of the
Project or to the Project.
Section 2. Patent Infringement. The Contractor shall save
harmless and indemnify the owner from any and all claims, suits and
proceedings for the infringement of any patent or patents covering
any materials or equipment used in construction of the Project.
Section 3. Permits for Explosives. All permits necessary for the
handling or use of dynamite or other explosives in connection with
the construction of the Project shall be obtained by and at the
expense of the Contractor.
Section 4. Compliance with Statutes and Regulations. The
Contractor will comply with all applicable statutes, ordinances,
[[Page 10183]] rules, and regulations pertaining to the work. The
Contractor acknowledges that it is familiar with the Rural
Electrification Act of 1936, as amended, the so-called ``Kick-Back''
Statute (48 Stat. 948), and regulations issued pursuant thereto, and
18 U.S.C. Secs. 286, 287, 1001, as amended. The Contractor
understands that the obligations of the parties hereunder are
subject to the applicable regulations and orders of governmental
agencies having jurisdiction in the premises.
Section 5. Equal Opportunity Provisions.
(a) Contractor's Representations.
The Contractor represents that:
It has __, does not have __, 100 or more employees, and if it
has, that it has __, has not __, furnished the Equal Employment
Opportunity---Employers Information Report EEO-1, Standard Form 100,
required of employers with 100 or more employees pursuant to
Executive Order 11246 and Title VII of the Civil Rights Act of 1964.
The Contractor agrees that it will obtain, prior to the award of
any subcontractor for more than $10,000 hereunder to a subcontractor
with 100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100. The Contractor agrees that if it has
100 or more employees and has not submitted a report on Standard
Form 100 for the current reporting year and that if this Contract
will amount to more than $10,000, the Contractor will file such
report, as required by law, and notify, the Owner in writing of such
filing prior to the Owner's acceptance of this Proposal.
(b) Equal Opportunity Clause. During the performance of this
Contract, the Contractor agrees as follows:
(1) The Contractor will not discriminate against any employee or
applicant for employment because of race, color, religion, sex, or
national origin. The Contractor will take affirmative action to
ensure that applicants are employed, and that employees are treated
during employment without regard to their race, color, religion,
sex, or national origin. Such action shall include, but not be
limited to the following: Employment, upgrading, demotion or
transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship. The Contractor
agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided setting forth the
provisions of this Equal Opportunity Clause.
(2) The Contractor will, in all solicitations or advertisements
for employees placed by or on behalf of the Contractor, state that
all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, or national origin.
(3) The Contractor will send to each labor union or
representative of workers with which it has a collective bargaining
agreement or other contract or understanding, a notice to be
provided advising the said labor union or worker's representatives
of the Contractor's commitments under this section, and shall post
copies of the notice in conspicuous places available to employees
and applicants for employment.
(4) The Contractor will comply with all provisions of Executive
Order 11246 of September 24, 1965, and of the rules, regulations and
relevant orders of the Secretary of Labor.
(5) The Contractor will furnish all information and reports
required by Executive Order 11246 of September 24, 1965, and by
rules, regulations and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations and orders.
(6) In the event of the Contractor's noncompliance with the
Equal Opportunity Clause of this Contract or with any of the said
rules, regulations or orders, this Contract may be cancelled,
terminated or suspended in whole or in part and the Contractor may
be declared ineligible for further Government contracts or
federally-assisted construction contracts in accordance with
procedures authorized in Executive Order 11246 of September 24,
1965, and such other sanctions may be imposed and remedies invoked
as provided in the said Executive Order or by rule, regulation or
order of the Secretary of Labor, or as otherwise provided by law.
(7) The Contractor will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by rules,
regulations or orders of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor.
The Contractor will take such action with respect to any subcontract
or purchase order as the administering agency may direct as a means
of enforcing such provisions, including sanctions for noncompliance:
Provided, however, that in the event a Contractor becomes involved
in, or is threatened with, litigation with a subcontractor or vendor
as a result of such direction by the administering agency, the
Contractor may request the United States to enter into such
litigation to protect the interests of the United States.
(c) Certificate of Nonsegregated Facilities. The Contractor
certifies that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Contractor certifies further that it will not maintain or provide
for its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Contractor agrees that a breach of
this certification is a violation of the Equal Opportunity Clause in
this Contract. As used in this certification, the term ``segregated
facilities'' means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Contractor agrees that (except where it has
obtained identical certifications from proposed subcontractors for
specific time periods) it will obtain identical certifications from
proposed subcontractors prior to the award of subcontracts exceeding
$10,000 which are not exempt from the provisions of the Equal
Opportunity Clause, and that it will retain such certifications in
its files.
Section 6. Franchises and Rights-of-way. The Contractor will be
under no obligation to obtain or assist in obtaining any franchises,
authorizations, permits, or approvals required to be obtained by the
Owner from Federal, state, county, municipal or other authority; any
rights-of-way over private lands; or any agreements between the
Owner and third parties with respect to the construction and
operation of the Project.
Section 7. Nonassignment of Contract. The Contractor shall not
assign the Contract effected by an acceptance of this Proposal or
any part thereof or enter into any contract with any person, firm or
corporation for the performance of the Contractor's obligations
thereunder, or any part thereof, without the approval in writing of
the Owner.
Section 8. Extension to Successors and Assigns. Each and all of
the covenants and agreements contained in the Contract effected by
the acceptance of the Proposal shall extend to and be binding upon
the successors and assigns of the parties thereto.
________ (Contractor)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
Date of Proposal ________
This Proposal must be signed with the full name of the
Contractor. If the Contractor is a partnership, the Proposal must be
signed in the partnership name by a partner. If the Contractor is a
corporation, the Proposal must be signed in the corporate name by a
duly authorized officer and the corporate seal affixed and attested
by the Secretary of the Corporation.
Description of Units
Right-of-Way Clearing Units:
R1-10. The unit is 1,000 feet in length and 10 feet in width (to
be measured on one side of the pole line) of actual clearing of
right-of-way. This includes clearing of underbrush, tree removal,
and such tree trimming as is required so that the right-of-way,
except for tree stumps which shall not exceed ________ in height,
shall be clear from the ground up of the width specified on one side
of the line of poles carrying primary conductors. This unit does not
include clearing or trimming associated with secondaries or services
which is included with conductor units. The length of actual
clearing shall be measured in a straight line parallel to the
horizontal line between stakes and across the maximum dimension of
foliage cleared projected to the [[Page 10184]] ground line. All
trees and underbrush across the width of the right-of-way, as
designated by the Engineer shall be considered to be grouped
together as a single length in measuring the total length of
clearing. Spaces along the right-of-way in which no trees are to be
removed or trimmed or underbrush cleared shall be omitted from the
total measurement. All length thus arrived at, added together and
divided by 1,000, shall give the number of 1,000-foot R1-10 units of
clearing. This unit includes the removal or topping, at the option
of the Contractor; of danger trees outside of the right-of-way when
so designated by the Engineer. (Danger trees are defined as dead or
leaning trees which, in falling, will affect the operation of the
line.) The Contractor shall not remove or trim shade, fruit or
ornamental trees unless so directed by the Engineer.
R1-20. This unit is identical with R1-10 except that width is 20
feet (to be measured 10 feet on each side of the pole line).
R1-30. This unit is identical with R1-10 except that width is 30
feet (to be measured 15 feet on each side of the pole line).
R1-40. This unit is identical with R1-10 except that width is 40
feet (to be measured 20 feet on each side of the pole line).
RC1-10, RC1-20, RC1-30, RC1-40. These units are identical to the
respective R1 units except that chemical treatment of stumps is
required in addition to the clearing of underbrush, tree removal and
tree trimming.
TM-12. The unit is 1,000 feet in length and ____ (____) feet in
width (to be measured ____ (____) feet on one side of pole line or
centerline of structures) of actual clearing of right-of-way. This
includes clearing of underbrush, tree removal, and such tree
trimming as is required so that the right-of-way, except for tree
stumps which shall not exceed ____ in height, shall be clear from
the ground up on one side of the line poles carrying conductors.
(See Detail A, Drawing TM-12-2A). The length of actual clearing
shall be measured in a straight line parallel to the horizontal line
between poles or centerline of structures and across the maximum
dimension of foliage cleared projected to the ground line (See
Detail B, Drawing TM-12-2A). All trees and underbrush across the
width of the right-of-way shall be considered to be grouped together
as a single length in measuring the total length of clearing (See
Detail C, Drawing TM-12-2A). Spaces along the right-of-way in which
no trees are to be removed or trimmed or underbrush cleared shall be
omitted from the total measurement. All length thus arrived at,
added together and divided by 1,000 shall give the number of TM-12
units of clearing. The Contractor shall not remove or trim shade,
fruit or ornamental trees unless so directed by the Engineer in
writing.
TM-12 (1). This unit is identical with TM-12, except the full
width of the right-of-way to be cleared shall be ____ (____) feet
wide (to be measured ____ (____) feet on each side of the pole line
or centerline of structures) (See Detail D, Drawing TM-12-2A.)
TMC-12, TMC-12(1). These units are identical to the respective
TM units except that chemical treatment of stumps is required in
addition to the clearing of underbrush, tree removal and tree
trimming.
TM-13. The unit, for purpose of quoting, is 1,000 feet in length
of clearing off the right-of-way. The Engineer will select those
trees of the right-of-way that he deems to be a hazard to the line
and will designate them to the Contractor in writing as danger
trees. When so designated, the Contractor shall remove or top such
trees at his option except that the Contractor shall trim and not
remove shade, fruit or ornamental trees unless otherwise directed by
the Engineer in writing (See Drawings TM-12-2A and TM-13 for
examples of danger trees).
The measurement of length of right-of-way to be cleared shall be
considered as a straight line parallel to the horizontal line
between poles or centerline of structures, such measurement of
length to be based on maximum dimension of foliage (not trunk)
projected to the ground line (See Details E, F, G, and H, Drawing
TM-12-2A). Dead trees having no foliage shall be measured across the
maximum dimension and multiplied by two. (See Detail F, Drawing TM-
12-2A). Each tree so removed shall be added together to determine
the total length of clearing. All length thus arrived at, added
together and divided by 1,000 shall give the number of TM-13 units
(Example: Details E, F, G, and H, Drawing TM-12-2A, total .1 of a
TM-13 unit).
TM-14. The unit is 1,000 feet in length and ____ (____) feet in
width (to be measured ____ (____) feet on one side of right-of-way
center line) of actual clearing of right-of-way. Trees and
underbrush should be cleared from the ground up within 10 feet of
any structure location. The Engineer will mark the trees and brush
to be cleared to provide ``undulating'' boundaries. Low growing
trees and brush are to be left in the right-of-way to the extent it
will not be hazardous to the line or will not interfere with the
access road. The length of actual clearing shall be measured in a
straight line parallel to the horizontal line between poles or
center line of structures and across the maximum dimension of
foliage cleared projected to the ground line (See Detail B, Drawing
TM-12-2A). All trees and underbrush cleared across the right-of-way
shall be considered to be grouped together as a single length in
measuring the total length of clearing (See Detail C, Drawing TM-12-
2A). Spaces along the right-of-way in which no trees are to be
removed or trimmed or underbrush cleared shall be omitted from the
total measurement.
TM-14 (1). This unit is identical with TM-14 except the full
width of the right-of-way to be cleared shall be ____ (____) feet
wide (See Detail D, Drawing TM-12-2A).
TM-15. The unit is 1,000 feet in length and ____ (____) feet in
width (to be measured ____ (____) feet on one side of the right-of-
way center line) of actual clearing of the right-of-way. Trees and
underbrush should be cleared from ground up within 10 feet of any
structure location. The Engineer will mark the trees and brush to be
cleared to provide a ``feathered'' appearance in the right-of-way.
Low growing trees and brush are to be left in the right-of-way to
the extent it will not be hazardous to the line or will not
interfere with the access road.
The length of actual clearing shall be measured in a straight
line parallel to the horizontal line between poles or center line of
structures and across the maximum dimension of foliage cleared
projected to ground line. (See Detail B, Drawing TM-12-2A). All
trees and underbrush cleared across the right-of-way shall be
considered to be grouped together as a single length in measuring
the total length of clearing (See Detail C, Drawing TM-12-2A).
Spaces along the right-of-way, in which no trees are to be removed
or trimmed or underbrush cleared shall be omitted from the total
measurement.
TM-15 (1). This unit is identical to TM-15 except the full width
of the right-of-way to be cleared shall be ____ (____) feet wide
(See Detail D, Drawing TM-12-2A).
Additional Requirements. (When specifying units denote type of
disposal A or B).
A. Trees, brush, branches and refuse shall, without delay be
disposed of by such of the following methods as the Engineer will
direct (Engineer to strike out methods not to be used).
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (Describe)
B. Trees that are felled shall be cut to commercial wood
lengths, stacked neatly, and left on the right-of-way for the
landowner. Commercial wood length means the length designated by the
Engineer but in no case shall it be required to be less than ____
(____) feet. Brush, branches and refuse shall, without delay, be
disposed of by such of the following methods as the Engineer will
direct (Engineer to strike out methods not to be used).
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (Describe)
Specifications
In preparing the right-of-way, trees shall be removed,
underbrush cleared, and trees trimmed so that the right-of-way shall
be clear from the ground up or as specified. Trees fronting each
side of the right-of-way shall be trimmed symmetrically unless
otherwise directed by the Engineer. Dead trees beyond the right-of-
way which would strike the line in falling shall be removed. Leaning
trees beyond the right-of-way which would strike the line in falling
and which would require topping if not removed may be removed or
topped at the direction of the Engineer.
Where RC or TMC units are specified, the right-of-way shall be
cleared in accordance with the instructions in the preceding
paragraph and in addition, all stumps one-half inch in diameter and
larger shall be sprayed as specified by the Engineer.
[[Page 10185]]
Right-of-Way Units
Distribution Clearing Units
------------------------------------------------------------------------
Unit No. No. of units Unit price Extended price
------------------------------------------------------------------------
....................
------------------------------------------------------------------------
Total------------------------------------------------------------------
Transmission Clearing Units
------------------------------------------------------------------------
Unit No. No. of units Unit price Extended price
------------------------------------------------------------------------
------------------------------------------------------------------------
Total------------------------------------------------------------------
Total Distribution and Transmission ________
Acceptance
The Owner hereby accepts the foregoing Proposal of the
Contractor, ________ for the following:
Total Distribution Clearing: $________
Total Transmission Clearing: $________
The total contract price is $________
________ Owner
By ________ President
________ Secretary
________ Date of Contract
[End of clause]
Sec. 1726.322 Transmission system right-of-way clearing contract, RUS
Form 203.
The contract form in this section shall be used when required by
this part. This form refers to guide drawings, which do not contain
requirements, and, hence, are not included in this part. The guide
drawings are included in the printed form available from RUS (See
Sec. 1726.300.).
Transmission System Right-of-Way Clearing Contract
Notice and Instructions to Bidders
1. Sealed proposals for the clearing of underbrush and trees
from right-of-way, including the supply of necessary labor and
equipment, of a rural electric system of ____ (hereinafter called
the ``Owner'') bearing the RUS Designation ____ will be received by
the Owner on or before ____ o'clock __M., ____ 19____, at its office
at ____ at which time and place the proposals will be publicly
opened and read. Any proposal received subsequent to the time
specified will be promptly returned to the Bidder unopened.
2. Description of Project. The Project will consist of
approximately: ____ miles of right-of-way clearing. The Project is
located in ____ Counties in the State of ____.
3. Obtaining Documents. All necessary forms and other documents
for bidders may be obtained from the Owner, or from the Engineer
____ at the latter's office at ____. A copy of the Loan Contract (if
the Project is to be financed in whole or in part, pursuant to a
Loan Contract) between the Owner and the United States of America
acting through the Administrator of the Rural Utilities Service
(hereinafter called the Administrator), and any other lender's
contract may be examined at the office of the Owner. Each set of
documents will have a serial number, given by the Engineer, and the
number of each set with the name of the recipient will be recorded
by the Engineer. Bids will be accepted only from the original
recipient.
4. Manner of Submitting Proposals. Proposals and all supporting
instruments must be submitted on the forms furnished by the Owner
and must be delivered in a sealed envelope addressed to the Owner.
The name and address of the Bidder, its license number if a license
is required by the State, and the date and hour of the opening of
bids must appear on the envelope in which the Proposal is submitted.
Proposals must be filled in in ink or typewritten. No alterations or
interlineations will be permitted, unless made before submission,
and initialed and dated.
5. Familiarity with Conditions. Prior to the submission of the
Proposal the Bidder shall make and shall be deemed to have made a
careful examination of the site of the Project and of the
Specifications, Drawings, and forms of Contractor's Proposal and
Contractor's Bond on file with the Secretary of the Owner and with
the Engineer, and shall become informed as to the location and
nature of the proposed work, the transportation facilities, the kind
and character of soil and terrain to be encountered, the kind of
facilities required before and during the construction of the
Project. Bidders will be required to comply with all applicable
statutes, regulations, etc., including those pertaining to the
licensing of contractors, and the so-called ``Kick-back Statute''
(48 Stat. 948) and regulations issued pursuant thereto.
6. Proposals will be accepted only from those prequalified
bidders invited by the Owner to submit a proposal.
7. The time for Completion of the Project shall be as specified
by the Engineer in the Proposal.
8. Bid Bond. Each Proposal must be accompanied by a bid bond in
the form attached or a certified check on a bank that is a member of
the Federal Deposit Insurance Corporation, payable to the order of
the Owner, in an amount equal to ten percent (10%) of the maximum
bid price. Each Bidder agrees, provided its Proposal is one of the
three low Proposals, that, by filing its Proposal together with such
bid bond or check in consideration of the Owner's receiving and
considering such Proposals, said Proposal shall be firm and binding
upon each such Bidder and such bid bond or check shall be held by
the Owner until a Proposal is accepted and a satisfactory
Contractor's Bond is furnished (where required) by the successful
Bidder and such acceptance has been approved by the Administrator,
or for a period not to exceed sixty (60) days from the date
hereinbefore set for the opening of Proposals, whichever period
shall be the shorter. If such Proposals is not one of the three low
Proposals, the bid bond or check will be returned in each instance
within a period of ten (10) days to the Bidder furnishing same.
9. Contractor's Bond. The successful Bidder will be required to
execute two additional counterparts of the Proposal and, for a
Contract in excess of $100,000, to furnish a Contractor's Bond in
triplicate in the form attached hereto with sureties listed by the
United States Treasury Department as Acceptable Sureties, in a penal
sum not less than the contract price.
10. Failure to Furnish Contractor's Bond. Should the successful
Bidder fail or refuse to execute such counterparts or to furnish a
Contractor's Bond (where required) within ten (10) days after
written notification of the acceptance of the Proposal by the Owner,
the Bidder will be considered to have abandoned the Proposal. In
such event, the Owner shall be entitled (a) to enforce the bid bond
in accordance with its terms, or (b) if a certified check has been
delivered with the Proposal, to retain from the proceeds of the
certified check, the difference (not exceeding the amount of the
certified check) between the amount of the Proposal and such larger
amount for which the Owner may in good faith contract with another
party to construct the Project. The term ``successful Bidder'' shall
be deemed to include any Bidder whose Proposal is accepted after
another Bidder has previously refused or has been unable to execute
the counterparts or to furnish a satisfactory Contractor's Bond
(where required.)
11. Contract is Entire Agreement. The Contract to be effected by
the acceptance of the Proposal shall be deemed to include the entire
agreement between the parties thereto, and the Bidder shall not
claim any modification thereof resulting from any representation or
promise made at any time by any officer, agent or employee of the
Owner or by any other person.
12. Minor Irregularities. The Owner reserves the right to waive
minor irregularities or minor errors in any Proposal, if it appears
to the Owner that such irregularities or errors were made through
inadvertence. Any such irregularities or errors so waived must be
corrected on the Proposal in which they occur prior to the
acceptance thereof by the Owner.
13. Bid Rejection. The Owner reserves the right to reject any or
all Proposals.
14. Definition of Terms. The terms ``Administrator,''
``Engineer,'' ``Supervisor,'' ``Project,'' ``Completion of
Construction'' and ``Completion of the Project'' as used throughout
this Contract shall be as defined in Article VI, Section 1, of the
Contractor's Proposal.
15. The Owner represents:
a. All easements and rights-of-way, except as shown on maps
included in the Specifications, have been obtained from the Owners
of the properties across which the project is to be carried out
(including tenants who may reasonably be expected to object to such
clearing). The remaining easements and rights-of-way, if any, will
be obtained as required to avoid delay in construction.
b. Prompt payment for the work to be done will be made with
funds pursuant to the Loan Contract, or with funds otherwise
available to the Owner.
If the Owner shall fail to comply with any of the undertakings
contained in the [[Page 10186]] foregoing representations or if any
such representations shall be incorrect, the Bidder will be entitled
to extension of time of completion for a period equal to the delay,
if any, caused by the failure of the Owner to comply with such
undertakings or by any such incorrect representation; provided the
Bidder shall have promptly notified the Owner in writing of its
desire to extend the time of completion in accordance with the
foregoing.
________ Owner
By ________
________, 19____
Contractor's Proposal
(Proposal shall be submitted in ink or typewritten)
To: ________ (Hereinafter called the ``Owner'')
Article I--General
Section 1. Offer to Clear. The undersigned (hereinafter called
the ``Bidder'') hereby proposes to furnish all materials, equipment,
machinery, tools, labor, transportation and other means required to
clear rights-of-way for rural electric system bearing the RUS
Designation ____ in strict accordance with the Specifications and
Drawings therefore, attached hereto and made a part hereof, for the
prices hereinafter stated.
Section 2. Description of Contract. The Notice and Instructions
to Bidders and Specifications attached hereto and made a part
hereof, together with the Proposal and Acceptance constitute the
contract. The Specifications consisting of maps, plan and profile
sheets showing the number and types of right-of-way units that are
to be cleared for each parcel, along with other special drawings are
identified as follows: ____.
Section 3. Familiarity with Conditions. The Bidder has made a
careful examination of the site of the Project and of the
Specifications, Drawings, and form of Contractor's Bond attached
hereto, and has become informed as to the location and nature of the
proposed work, the transportation facilities, the kind and character
of soil and terrain to be encountered, and the kind of facilities
required for undertaking and completing the Project, and has become
acquainted with the labor conditions, state and local laws and
regulations which would affect the proposed work.
Section 4. License. The Bidder warrants that a Contractor's
License is ____, is not ____, required, and if required, it
possesses Contractor's license number ________ for the State of
________ in which the Project is located and said license expires on
________, 19____.
Section 5. The Bidder warrants that this Proposal is made in
good faith and without collusion or connection with any person or
persons bidding for the same work.
Section 6. The Bidder warrants that it possesses adequate
financial resources and agrees that in the event this Proposal is
accepted and a Contractor's Bond is required, it will furnish a
Contractor's Bond in the form attached hereto, in a penal sum not
less than the maximum Contractor price, with a surety or sureties
listed by the United States Treasury Department as Acceptable
Sureties.
In the event that the surety or sureties on the performance bond
delivered to the Owner contemporaneously with the execution of the
Contract or on any bond or bonds delivered in substitution therefore
or in addition thereto shall at any time become unsatisfactory to
the Owner or the Administrator, the Bidder agrees to deliver to the
Owner another or an additional bond.
Article II--Construction
Section 1. Time and Manner of Work.
(a) Bidder agrees to commence work on the Project on a date
(hereinafter called the ``Commencement Date'') which shall be
determined by the Engineer after notice in writing of approval of
the Contract by the Administrator, but in no event will the
Commencement Date be later than ________ calendar days after date of
approval of the Contract by the Administrator. The Bidder further
agrees to prosecute diligently and to complete construction in
strict accordance with the Specifications and Drawings within ______
(______) calendar days (excluding Sundays) after Commencement Date.
(b) The time for Completion of Clearing shall be extended for
the period of any reasonable delay which is due exclusively to
causes beyond the control and without the fault of the Bidder,
including Acts of God, fires, floods, inability to obtain materials
and acts or omissions of the Owner with respect to matters for which
the Owner is solely responsible: Provided however, that no such
extension of time for completion shall be granted the Bidder unless
within ten (10) days after the happening of any event relied upon by
the Bidder for such an extension of time the Bidder shall have made
a request therefore in writing to the Owner, and provided further
that no delay in such time of completion or in the progress of the
work which results from any of the above causes except acts or
omission of the Owner, shall result in any liability on the part of
the Owner.
(c) The sequence of construction shall be as set forth below,
the numbers or names being the designations of extensions or areas
(hereinafter called the ``Sections'') corresponding to the numbers
or names shown on the maps attached hereto, or if no Sections are
set forth below, the sequence of construction shall be as determined
by the Bidder, subject to the approval of the Engineer ______.
(d) The Owner, acting through the Engineer and with the approval
of the Administrator1, may from time to time during the
progress of the work on the Project make such changes in additions
to or subtractions from the Specifications, Drawings, and sequence
of construction provided for in the previous paragraph which are
part of the Contractor's Proposal as conditions may warrant:
Provided, however, that if any change in the construction to be done
shall require an extension of time, a reasonable extension will be
granted if the Bidder shall make a written request therefore to the
Owner within ten (10) days after any such change is made. And
provided further, that if the cost to the Bidder of construction of
the Project shall be materially increase by any such change or
addition, the Owner shall pay the Bidder for the reasonable cost
thereof in accordance with a Contract Amendment signed by the Owner
and the Bidder and approved by the Administrator2, but no claim
for additional compensation for any such change or addition will be
considered unless the Bidder shall have made a written request
therefore to the Owner prior to the commencement of work in
connection with such change or addition.
\1\As long as the total price of this contract including all
amendments is less than 120 percent of the original contract price
as stated in the acceptance hereto, amendments executed on RUS Form
238 are not subject to the approval of the Administrator. Whenever
an amendment to this contract causes the total amended contract to
exceed 120 percent of the original contract price, that amendment
and all subsequent amendments to this contract shall be made subject
to the approval of the Administrator.
\2\See Footnote 1.
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(e) The Bidder will not perform any work hereunder on Sundays
unless there is urgent need for such Sunday work and the Owner
consents thereto in writing. The time for completion specified in
subsection (a) of this Section 1 shall not be affected in any way by
inclusion of this subsection nor by the Owner's consent or lack of
consent to Sunday work hereunder.
Section 2. Environmental Protection. The Bidder shall perform
work in such a manner as to maximize preservation of beauty,
conservation of natural resources, and minimize marring and scarring
of the landscape and silting of streams. There should be no
deposition of trash in streams or waterways. Herbicides, other
chemicals or their containers should not be deposited in or near
streams, waterways or pastures. The Bidder will be required to
follow, under the general direction of the engineer, the criteria
relating to environmental protection as specified herein by the
engineer.
Section 3. Supervision and Inspection.
(a) The Bidder shall cause the work on the Project to receive
constant supervision by a competent superintendent (hereinafter
called the ``Superintendent'') who shall be present at all times
during working hours where work is being carried on. The Bidder
shall also employ in connection with the Project, capable,
experienced and reliable foremen and such skilled workmen as may be
required for the various classes of work to be performed. Directions
and instructions given to the Superintendent shall be binding upon
the Bidder.
(b) The Owner reserves the right to require the removal from the
Project of any employee of the Bidder if in the judgment of the
Owner such removal shall be necessary in order to protect the
interest of the Owner. The Owner or the Supervisor, if any, shall
have the right to require the Bidder to increase the number of its
employees and to increase or change the amount or kind of tools and
equipment if at any time the progress of the work shall be
unsatisfactory to the Owner or Supervisor; but the failure of the
Owner or Supervisor to give any such directions shall not relieve
the Bidder of its obligations to complete the work within the time
and in the manner specified in this proposal.
(c) The manner of carrying out the Project, and all materials
and equipment used therein, shall be subject to the inspection,
[[Page 10187]] tests and approval of the Owner and the
Administrator, and the Bidder shall furnish all information required
by the Owner or by the Administrator concerning the nature or source
of any materials incorporated or to be incorporated in the Project.
The Owner and the Administrator shall have the right to inspect all
payrolls, invoices of materials, and other data and records of the
Bidder and of any subcontractor, relevant to the Project. The Bidder
shall provide all reasonable facilities necessary for such
inspection and tests and shall maintain an office at the site of the
Project, with telephone service where obtainable and at least one
office employee to whom directions and instructions of the Owner may
be delivered. Delivery of such directions or instructions in writing
to the employee of the Bidder at such office shall constitute
delivery to the Bidder. The Bidder shall have an authorized agent
accompany the Engineer when final inspection is made and, if
requested by the Owner, when any other inspection is made.
(d) In the event that the Owner, or the Administrator, shall
determine that the work contains or may contain numerous defects, it
shall be the duty of the Bidder and the Bidder's Surety or Sureties,
if any, to have an inspection made by an engineer approved by the
Owner and the Administrator for the purpose of determining the exact
nature, extent and location of such defects.
(e) The Engineer may recommend to the Owner that the Bidder
suspend the work wholly or in part for such period or periods as the
Engineer may deem necessary due to unsuitable weather or such other
conditions as are considered unfavorable for the satisfactory
prosecution of the work or because of the failure of the Bidder to
comply with any of the provisions of the Contract: Provided,
however, that the Bidder shall not suspend work pursuant to this
provision without written authority from the Owner to do so. The
time of completion hereinabove set forth shall be increased by the
number of days of any such suspension, except when such suspension
is due to the failure of the Bidder to comply with any of the
provisions of this Contract. In the event that work is suspended by
the Bidder with the consent of the Owner, the Bidder before resuming
work shall give the Owner at least twenty-four (24) hours notice
thereof in writing
Section 4. Unsuitable Workmanship. The acceptance of any
workmanship by the Owner or the Engineer shall not preclude the
subsequent rejection thereof if such workmanship shall be found to
be unsuitable. Workmanship found unsuitable before final acceptance
of the work shall be remedied, by and at the expense of the Bidder.
The Bidder shall not be entitled to any payment hereunder so long as
any unsuitable workmanship in respect to the Project, of which the
Bidder shall have had notice, shall not have been remedied.
Article III--Payments and Release of Liens
Section 1. Payments to Bidder.
(a) Within the first fifteen (15) days of each calendar month,
the Owner shall make partial payment to the Bidder for work
accomplished during the preceding calendar month on the basis of
completed rights-of-way clearing units furnished and certified to by
the Bidder, recommended by the Engineer and approved by the Owner
solely for the purposes of payment: Provided, however, that such
approval shall not be deemed approval of the workmanship or
materials. Only ninety percent (90%) of each such estimate shall be
paid by the Owner to the Bidder prior to Completion of the Project:
Provided, however, that at any time after work, which, in the sole
determination of the Engineer, amounts to fifty percent (50%) of the
maximum contract price has been completed, the Owner may elect, in
lieu of paying ninety percent (90%) of each such subsequent
estimate, to pay each such subsequent estimate in full. Upon
completion by the Bidder of the Project, the Engineer will prepare a
Final Inventory of the Project showing the total number and
character of rights-of-way clearing units and, after checking such
inventory with the Bidder, will certify it to the Owner, together
with a certificate of the total cost of the construction performed.
Upon the approval of such certificates by the Owner and the
Administrator, the Owner shall make payment to the Bidder of all
amounts to which the Bidder shall be entitled thereunder which shall
not have been paid: Provided, however, that such final payments
shall be made not later than ninety (90) days after the date of
Completion of Construction of the Project, as specified in the
Certificate of Completion, unless withheld because of the fault of
the Bidder.
(b) The Bidder shall be paid on the basis of the number of
rights-of-way clearing units actually completed at the direction of
the Owner shown by the inventory based on the staking sheets or
structure lists; Provided, however, that the total cost shall not
exceed the maximum contract price for the construction of the
Project as set forth in the Acceptance, unless such excess shall
have been approved in writing by the Administrator.
(c) Notwithstanding the provisions of Section 1 (a) above, the
Bidder may, by giving written notice thereof to the Owner elect to
receive payment in full for any Section of the Project upon:
(1) completion of such Section as certified by the Engineer and
approved by the Owner and the Administrator;
(2) submission to the Owner and the Administrator of the
releases of lien and the certificate referred to in Section 2
hereof;
(3) approval by the Owner and the Administrator of the inventory
in respect of such Section; and
(4) submission to the Owner and the Administrator of the consent
in writing by the Surety or Sureties, if any, on the Contractor's
Bond to payment in full for such Section prior to Completion of
Project.
If no Sections are designated in Article II, Section 1 (c), the
term ``Section'' shall mean for purposes of this subsection (a) and
Article IV, Section 3 (b) only, a part of the Project as designated
by the Owner which represents at least twenty-five percent (25%) of
the maximum Contract price as stated in Article III, Section 1.
(d) Interest at the rate of ____ percent3 (____%) per annum
shall be paid by the Owner to the Bidder on all unpaid balances due
on monthly estimates, commencing fifteen (15) days after the due
date; provided the delay in payment beyond the due date is not
caused by any condition within the control of the Bidder. The due
date for purposes of such monthly payment shall be the fifteenth day
of each calendar month provided (1) the Bidder on or before the
fifth day of such month shall have submitted its certification of
rights-of-way clearing units completed during the preceding month
and (2) the Owner on or before the fifteenth day of such month shall
have approved such certification. If, for reasons not due to the
Bidder's fault, such approval shall not have been given on or before
the fifteenth day of such month, the due date for purposes of this
subsection (d) shall be the fifteenth day of such month
notwithstanding the absence of the approval of the certification.
\3\The Owner shall insert a rate equal to the lowest ``Prime
Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued.
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(e) Interest at the rate of ____ percent4 (____%) per annum
shall be paid by the Owner to the Bidder on the final payment for
the Project or any completed Section thereof, commencing fifteen
(15) days after the due date. The due date for purposes of such
final payment shall be the date of approval by the Administrator of
all of the documents requiring such approval, as a condition
precedent to the making of final payment, or ninety (90) days after
the date of Completion of Construction of the Project, as specified
in the Certificate of Completion, whichever date is earlier.
\4\See Footnote 3.
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(f) No payment shall be due while the Bidder is in default in
respect of any of the provisions of this Contract and the Owner may
withhold from the Bidder the amount of any claim by a third party
against either the Bidder or the Owner based upon an alleged failure
of the Bidder to perform the work hereunder in accordance with the
provisions of this Contract.
Section 2. Release of Liens and Certificate of Contractor. (See
sample RUS Form 224, Waiver and Release of Lien and sample RUS Form
231, Certificate of Contractor.) Upon the Completion of Clearing by
the Bidder (or any Section thereof if the Bidder shall elect to
receive payment in full for any section when completed as provided
above) but prior to final payment to the Bidder the Bidder shall
deliver to the Owner, in duplicate, releases of all liens and of
rights to claim any lien, in the form attached hereto from all
manufacturers, materialmen, and subcontractors furnishing services
or materials for the Project or such Section and a certificate in
the form attached hereto to the effect that all labor used on or for
the Project or such Section has been paid and that all such releases
have been submitted to the Owner for approval.
Section 3. Payments to Subcontractors. The Bidder shall pay each
subcontractor, if any, within five (5) days after receipt of any
payment from the Owner, the amount thereof [[Page 10188]] allowed
the Bidder for and on account of work performed by each
subcontractor.
Article IV--Particular Undertakings of the Bidder
Section 1. Protection to Persons and Property. The Bidder shall
at all times take all reasonable precautions for the safety of
employees on the work and of the public, and shall comply with all
applicable provisions of Federal, State, and Municipal safety laws
and building and construction codes, as well as the safety rules and
regulations of the Owner. All machinery and equipment and other
physical hazards shall be guarded in accordance with the ``Manual of
Accident Prevention in Construction'' of the Associated General
Contractors of America unless such instructions are incompatible
with Federal, State, or Municipal laws or regulations.
The following provisions shall not limit the generality of the
above requirements:
(a) The Bidder shall at no time and under no circumstances cause
or permit any employee of the Bidder to perform any work upon
energized lines, or upon poles carrying energized lines, unless
otherwise specified in the Notice and Instructions to Bidders.
(b) The Bidder shall so conduct the construction of the Project
as to cause the least possible obstruction of Public highways.
(c) The Bidder shall provide and maintain all such guard lights
and other protection for the public as may be required by applicable
statutes, ordinances and regulations or by local conditions.
(d) The Bidder shall do all things necessary or expedient to
properly protect any and all parallel, converging and intersecting
lines, joint line poles, highways and any and all property of others
from damage, and in the event that any such parallel, converging and
intersecting lines, joint line poles, highways or other property are
damaged in the course of the construction of the Project, the Bidder
shall at its own expense restore any or all of such damaged property
immediately to as good a state as before such damage occurred.
(e) Where the right-of-way of the Project traverses cultivated
lands, the Bidder shall limit the movement of its crews and
equipment so as to cause as little damage as possible to crops,
orchards or property and shall endeavor to avoid marring the lands.
All fences which are necessarily opened or moved during the
construction of the Project shall be replaced in as good condition
as they were found and precautions shall be taken to prevent the
escape of livestock. The Bidder shall not be responsible for loss of
or damage to crops, orchards or property (other than livestock) on
the right-of-way necessarily incident to the construction of the
Project and not caused by negligence or inefficient operation of the
Bidder. The Bidder shall be responsible for all other loss of or
damage to crops, orchards, or property, whether on or off the right-
of-way, and for all loss of or damage to livestock caused by the
construction of the Project. The right-of-way for purposes of this
said section shall consist of area extending ________ feet on both
sides of the center line of the poles along the route of the Project
lines, plus such area reasonably required by the Bidder for access
to the route of the Project lines from Public roads to carry on
construction activities.
(f) The Project, from the commencement of work to completion, or
to such earlier date or dates when the Owner may take possession and
control in whole or in part as hereinafter provided shall be under
the charge and control in whole or in part as hereinafter provided
shall be under the charge and control of the Bidder and during such
period of control by the Bidder all risks in connection with the
construction of the Project and the materials to be used therein
shall be borne by the Bidder. The Bidder shall make good and fully
repair all injuries and damages to the Project or any portion
thereof under the control of the Bidder by reason of any Act of God
or other casualty or cause whether or not the same shall have
occurred by reason of the Bidder's negligence.
(i) To the maximum extent permitted by law, Bidder shall defend,
indemnify, and hold harmless Owner and Owner's directors, officers,
and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Bidder's employees) and loss, damage to or destruction of
Owner's property or the property of any other person or entity
(including but not limited to Bidder's property) in any manner
arising out of or connected with the Contract, or the materials or
equipment supplied or services performed by Bidder, its
subcontractors and suppliers of any tier. But nothing herein shall
be construed as making Bidder liable for any injury, death, loss,
damage, or destruction caused by the sole negligence of Owner.
(ii) To the maximum extent permitted by law, Bidder shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Bidder, its subcontractors and suppliers of
any tier, and from all losses, demands, and causes of action arising
out of any such lien or claim. Bidder shall promptly discharge or
remove any such lien or claim by bonding, payment, or otherwise and
shall notify Owner promptly when it has done so. If Bidder does not
cause such lien or claim to be discharged or released by payment,
bonding, or otherwise, Owner shall have the right (but shall not be
obligated) to pay all sums necessary to obtain any such discharge or
release and to deduct all amounts so paid from the amount due
Bidder.
(iii) Bidder shall provide to Owner's satisfaction evidence of
Bidder's ability to comply with the indemnification provisions of
subparagraphs i and ii above, which evidence may include but may not
be limited to a bond or liability insurance policy obtained for this
purpose through a licensed surety or insurance company.
(g) Any and all excess earth, rock, debris, underbrush and other
useless material shall be removed by the Bidder from the site of the
Project as rapidly as practicable as the work progresses. There
should no disposition of trash in streams or waterways. Herbicides,
other chemicals or their containers should not be deposited in or
near streams, waterways or pastures.
(h) Upon violation by the Bidder of any of the provisions of
this section, after written notice of such violation given to the
Bidder by the Engineer or the Owner, the Bidder shall immediately
correct such violation. Upon failure of the Bidder so to do the
Owner may correct such violation at the Bidder's expense: Provided,
however, that the Owner may, if it deems it necessary or advisable,
correct such violation at the Bidder's expense without such prior
notice to the Bidder.
(i) The Bidder shall submit to the Owner monthly reports in
duplicate of all accidents, giving such data as may be prescribed by
the Owner.
(j) The Bidder shall not proceed with the cutting of trees or
clearing of right-of-way without written notification from the Owner
that proper authorization has been received from the owner of the
property, and the Bidder shall promptly notify the Owner whenever
any landowner objects to the trimming or felling of any trees or the
performance of any other work on its land in connection with the
Project and shall obtain the consent in writing of the Owner before
proceeding in any such case.
Section 2. Insurance. The Bidder shall take out and maintain
throughout the contract period insurance of the following types and
minimum amounts:
(a) Workers' compensation and employers' liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to the workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
(b) Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
(c) Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million per person and $1 million per occurrence, and property
damage limits of $1 million for each occurrence. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
The Owner shall have the right at any time to require public
liability insurance and property damage liability insurance greater
than those required in subsection ``b'' and [[Page 10189]] ``c'' of
this Section. In any such event, the additional premium or premiums
payable solely as the result of such additional insurance shall be
added to the Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3. Delivery of Possession and Control to Owner.
(a) Upon written request of the Owner the Bidder shall deliver
to the Owner full possession and control of any portion of the
Project provided the Bidder shall have been paid at least ninety
percent (90%) of the cost of construction of such portion. Upon such
delivery of the possession and control of any portion of the Project
to the Owner, the risk and obligations of the Bidder as set forth in
Article IV, Section 1(f) hereof with respect to such portion of the
Project so delivered to the Owner shall be terminated: Provided,
however, that nothing herein contained shall relieve the Bidder of
any liability with respect to defective materials and workmanship as
contained in Article II, Section 4 hereof.
(b) Where the construction of a Section as hereinbefore defined
in Article II, Section 1 (c) and Article III, Section 1(c) shall
have been completed by the Bidder, the Owner agrees, after receipt
of a written request from the Bidder, to accept delivery of
possession and control of such Section upon the issuance by the
Engineer of a written statement that the Section has been inspected
and found acceptable by the Engineer. Upon such delivery of the
possession and control of any such Section to the Owner, the risk
and obligations of the Bidder as set forth in Article IV, Section
1(f) hereof with respect to such Section so delivered to the Owner
shall be terminated; Provided, however, that nothing herein
contained shall relieve the Bidder of any liability with respect to
defective materials or workmanship as contained in Article II,
Section 4 hereof. Section 4. Assignment of Guarantees. All
guarantees of materials and workmanship running in favor of the
Bidder shall be transferred and assigned to the Owner prior to the
time the Bidder receives final payment.
Article V--Remedies
Section 1. Completion of Bidder's Default. If default shall be
made by the Bidder or by any subcontractor in the performance of any
of the terms of this Proposal, the Owner, without in any manner
limiting its legal and equitable remedies in the circumstances, may
serve upon the Bidder and the Surety or Sureties, if any, upon the
Contractor's Bond or Bonds a written notice requiring the Bidder to
cause such default to be corrected forthwith. Unless within twenty
(20) days after the service of such notice upon the Bidder such
default shall be corrected or arrangements for the correction
thereof satisfactory to both the Owner and the Administrator shall
be made by the Bidder or its Surety or Sureties if any, the Owner
may take over the Project and prosecute the same to completion by
contract or otherwise for the account and at the expense of the
Bidder, and the Bidder and its Surety or Sureties if any, shall be
liable to the Owner for any cost or expense in excess of the
contract price occasioned thereby. In such event the Owner may take
possession of and utilize, in completing the construction of the
Project, any materials, tools, supplies, equipment, appliances, and
plant belonging to the Bidder or any of its subcontractors, which
may be situated at the site of the Project. The Owner in such
contingency may exercise any rights, claims or demands which the
Bidder may have against third persons in connection with this
contract and for such purpose the Bidder does hereby assign,
transfer and set over unto the Owner all such rights, claims and
demands. Section 2. Liquidated Damages. The time of the Completion
of the Project is of the essence of the Contract. Should the Bidder
neglect, refuse or fail to complete the Project within the time
herein agreed upon, after giving effect to extensions of time, if
any, herein provided, then, in that event and in view of the
difficulty of estimating with exactness damages caused by such
delay, the Owner shall have the right to deduct from and retain out
of such moneys which may be then due, or which may become due and
payable to the Bidder the sum of ________ dollars (________) per day
for each and every day that such construction is delayed in its
completion beyond the specified time, as liquidated damages and not
as a penalty; if the amount due and to become due from the Owner to
the Bidder is insufficient to pay in full any such liquidated
damages, the Bidder shall pay to the Owner the amount necessary to
effect such payment in full; Provided, however, that the Owner shall
promptly notify the Bidder in writing of the manner in which the
amount retained, deducted or claimed as liquidated damages was
computed.
Section 3. Cumulative Remedies. Every right or remedy herein
conferred upon or reserved to the Owner or the Government or the
Administrator shall be cumulative, shall be in addition to every
right and remedy now or hereafter existing at law or in equity or by
statute and the pursuit of any right or remedy shall not be
construed as an election: Provided, however, that the provision of
Section 2 of this Article shall be the exclusive measure of damages
for failure by the Bidder to complete the Project within the time
herein agreed upon.
Article VI--Miscellaneous
Section 1. Definitions.
(a) The term ``Administrator'' shall mean the Administrator of
the Rural Utilities Service of the United States of America and his
duly authorized representatives or any other person in whom or
authority in which may be vested the duties and functions which the
Administrator is now authorized by law to perform.
(b) The term ``Engineer'' shall mean the engineer employed by
the Owner with the approval of the Administrator, to provide
engineering services for the Project and said Engineer's duly
authorized assistants and representatives.
(c) The term ``Supervisor'' shall mean the person, if any,
appointed by the Administrator as the representative of the
Government under the provisions of the Loan Contract providing for
such appointment in special cases. The term is limited to such
special representative of the Government, if any, who is responsible
exclusively to the Administrator and does not refer to the Manager
or any other person employed by the Owner and responsible to it.
(d) The term ``Completion of Clearing'' shall mean full
performance by the Bidder of the Bidder's obligations under the
Contract and all amendments and revisions thereof except the
Bidder's obligations in respect of (1) Releases of liens and
Certificate of Contractor under Article III, Section 2 hereof, (2)
the inventory referred to in Article III, Section 1 hereof, and (3)
other final documents. The term ``Completion of the Project'' shall
mean full performance by the Bidder of the Bidder's obligations
under the Contract and all amendments and revisions thereof. The
Certificate of Completion signed by the Engineer and approved in
writing by the Owner and the Administrator, shall be the sole and
conclusive evidence as to the date of Completion of Clearing.
Section 2. Patent Infringement. The Bidder shall save harmless
and indemnity the Owner from any and all claims, suits and
proceedings for the infringement of any patent or patents covering
any materials or equipment used in construction of the Project.
Section 3. Permits for Explosives. All permits necessary for the
handling or use of dynamite or other explosives in connection with
the construction of the Project shall be obtained by and at the
expense of the Bidder.
Section 4. Compliance with Statutes and Regulations. The Bidder
shall comply with all applicable statutes, ordinances, rules, and
regulations pertaining to the work. The Bidder acknowledges that it
is familiar with the Rural Electrification Act of 1936, as amended,
the so-called ``Kick-Back'' Statute (48 Stat. 948), and regulations
issued pursuant thereto, and 18 U.S.C. Sections 286, 287 and 1001 as
amended. The Bidder understands that the obligations of the parties
hereunder are subject to the applicable regulations and orders of
Governmental Agencies leaving jurisdiction in the premises.
Section 5. Equal Opportunity Provisions.
(a) Bidder's Representations.
The Bidder represents that:
It has ______, does not have ______, 100 or more employees, and
if it has, that it has ______, has not ______, furnished the Equal
Employment Opportunity-Employers Information Report EEO-1, Standard
Form 100, required of employers with 100 or more employees pursuant
to Executive Order 11246 and Title VII of the Civil Rights Act of
1964.
The Bidder agrees that it will obtain, prior to the award of any
subcontract for more than $10,000 hereunder to a subcontractor with
100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
[[Page 10190]] report on Form 100. The Bidder agrees that if it has
100 or more employees and has not submitted a report on Standard
Form 100 for the current reporting year and that if this contract
will amount to more than $10,000, the Bidder will file such report,
as required by law, and notify the Owner in writing of such filing
prior to the Owner's acceptance of this Proposal.
(b) Equal Opportunity Clause. During the performance of this
contract, the Bidder agrees as follows:
(1) The Bidder will not discriminate against any employee or
applicant for employment because of race, color, religion, sex, or
national origin. The Bidder will take affirmative action to ensure
that applicants are employed, and that employees are treated during
employment without regard to their race, color, religion, sex, or
national origin. Such action shall include, but not be limited to,
the following: Employment, upgrading, demotions or transfer;
recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection for training,
including apprenticeship. The Bidder agrees to post in conspicuous
places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this Equal
Opportunity Clause.
(2) The Bidder will, in all solicitations or advertisements for
employees placed by or on behalf of the Bidder, state that all
qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, or national origin.
(3) The Bidder will send to each labor union or representative
of workers, with which it has a collective bargaining agreement or
other contract or understanding, a notice to be provided advising
the said labor union or worker's representatives of the Bidder's
commitments under this section, and shall post copies of the notice
in conspicuous places available to employees and applicants for
employment.
(4) The Bidder will comply with all provisions of Executive
Order 11246 of September 24, 1965, and of the rules, regulations,
and relevant orders of the Secretary of Labor.
(5) The Bidder will furnish all information and reports required
by Executive Order 11246 of September 24, 1965, and by rules,
regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records, and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations, and orders.
(6) In the event of the Bidder's noncompliance with the Equal
Opportunity Clause of this Contract or with any of the said rules,
regulations, or orders, this Contract may be cancelled, terminated,
or suspended in whole or in part, and the Bidder may be declared
ineligible for further Government contracts of federally assisted
construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, and such other
sanctions may be imposed and remedies invoked as provided in
Executive Order 11246 of September 24, 1965, or by rule, regulation,
or order of the Secretary of Labor, or as provided by law.
(7) The Bidder will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by the rules,
regulations, or order of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor.
The Bidder will take such action with respect to any subcontract or
purchase order as the administering agency may direct as a means of
enforcing such provisions including sanctions for noncompliance:
Provided, however, that in the event a Bidder becomes involved in,
or is threatened with, litigation with a subcontractor or vendor as
a result of such direction by the administering agency, the Bidder
may request the United States to enter into such litigation to
protect the interests of the United States.
(c) Certificate of Nonsegregated Facilities. The Bidder
certifies that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Bidder certifies further that it will not maintain or provide for
its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Bidder agrees that a breach of this
certification is a violation of the Equal Opportunity Clause in this
contract. As used in this certification, the term ``segregated
facilities'' means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Bidder agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific
time periods) it will obtain identical certifications from proposed
subcontractors prior to the award of subcontracts exceeding $10,000
which are not exempt from the provisions of the Equal Opportunity
Clause, and that it will retain such certifications in its files.
Section 6. Franchises and Rights-of-Way. The Bidder shall be
under no obligation to obtain or assist in obtaining: Any
franchises, authorizations, permits or approvals required to be
obtained by the Owner from Federal, State, County, Municipal or
other authorities; any rights-of-way over private lands; or any
agreements between the Owner and third parties with respect to the
construction and operation of the Project.
Section 7. Nonassignment of Contract. The Bidder shall perform
directly and without subcontracting not less than twenty-five per
centum (25%) of the construction of the Project, to be calculated on
the basis of the total contract price. The Bidder shall not assign
the contract effected by an acceptance of this proposal or any
interest in any funds that may be due or become due hereunder or
enter into contract with any person, firm or corporation for the
performance of the Bidder's obligations hereunder or any part
thereof, without the approval in writing of the Owner and of the
Surety or Sureties, if any, on any bond furnished by the Bidder for
the faithful performance of the Bidder's obligation hereunder. If
the Bidder, with the consent of the Owner and any Surety or
Sureties, if any, on the Contractor's Bond or Bonds, shall enter
into a subcontract with any subcontractor for the performance of any
part of this contract, the Bidder shall be as fully responsible to
the Owner and the Government for the acts and omissions of such
subcontractor and of persons employed by such subcontractor as the
Bidder would be for its own acts and omissions and those of persons
directly employed by it.
Section 8. Extension to Successors and Assigns. Each and all of
the covenants and Agreements herein contained shall extend to and be
binding upon the successors and assigns of the parties hereto.
Section 9. Contractor. Upon acceptance of this Proposal, the
successful Bidder shall be the Contractor and all references in the
Proposal to the Bidder shall apply to the Contractor.
Section 10. Approval by the Administrator. No acceptance of this
Proposal shall become effective until approval in writing of the
Administrator; Provided, however that no obligations shall arise
hereunder unless such approval is given within sixty (60) days from
the date of acceptance by the Owner.
________ (Bidder)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
Date ________
The Proposal must be signed with the full name of the Bidder. If
the Bidder is a partnership, the Proposal must be signed in the
partnership name by a partner. If the Bidder is a corporation, the
Proposal must be signed in the Corporate name by a duly authorized
officer and the corporate seal affixed and attested by the Secretary
of the Corporation.
Description of Units
TM-12. The unit is 1,000 feet in length and ________ (________)
feet in width (to be measured ________ (________) feet on one side
of pole line or centerline of structures) of actual clearing of
right-of-way. This includes clearing of underbrush, tree removal,
and such tree trimming as is required so that the right-of-way,
except for tree stumps which shall not exceed ________ in height,
shall be clear from the ground up on one side of the line of poles
carrying conductors (See Detail A, Drawing TM-12-2A.) The length of
actual clearing shall be measured in a straight line parallel to the
horizontal line between poles or centerline of structures and across
the maximum dimension of foliage cleared projected to the ground
line (See Detail B, Drawing TM-12-2A.) All trees and underbrush
across the width of the right-of-way shall be considered to be
grouped together as a single length in [[Page 10191]] measuring the
total length of clearing (See Detail C, Drawing TM-12-2A.) Spaces
along the right-of-way in which no trees are to be removed or
trimmed or underbrush cleared shall be omitted from the total
measurement. All lengths thus arrived at, added together and divided
by 1,000 shall give the number of TM-12 units of clearing. The
Bidder shall not remove or trim shade, fruit, or ornamental trees
unless so directed by the Engineer in writing.
TM-12 (1). This unit is identical with TM-12, except the full
width of the right-of-way to be cleared shall be ________ feet wide
(to be measured ________ (________) feet on each side of the pole
line or centerline of structures) (See Detail D, Drawing TM-12-2A.)
TM-13. The unit, for purpose of quoting, is 1,000 feet in length
of clearing off the right-of-way. The Engineer will select those
trees off the right-of-way that he deems to be a hazard to the line
and will designate them to the Bidder in writing as danger trees.
When so designated, the Bidder shall remove or top such trees at his
option except that the Bidder shall trim and not remove shade, fruit
or ornamental trees unless otherwise directed by the Engineer in
writing (See Drawings TM-12-2A and TM-13 for examples of danger
trees.)
The measurement of length of right-of-way to be cleared shall be
considered as a straight line parallel to the horizontal line
between poles or centerline of structures, such measurement of
length to be based on maximum dimension of foliage (not trunk)
projected to the ground line (See Details E, F, G and H, Drawing TM-
12-2A.) Dead trees having no foliage shall be measured across the
maximum dimension and multiplied by two. (See Detail F, Drawing TM-
12-2A.) Each tree so removed shall be added together to determine
the total length of clearing. All lengths thus arrived at, added
together and divided by 1,000 shall give the number of TM-13 units
(Example: Details E, F, G and H, Drawing TM-12-2A, total 0.10 of a
TM-13 unit.)
TMC-12, TMC-12 (1). These units are identical to the respective
TM units except that chemical treatment of stumps is required in
addition to the clearing of underbrush, tree removal and tree
trimming.
TM-14. The unit is 1,000 feet in length and ________ (________)
feet in width (to be measured ________ (________) feet on one side
of right-of-way center line) of actual clearing of right-of-way.
Trees and underbrush should be cleared from the ground up within 10
feet of any structure location. The Engineer will mark the trees and
brush to be cleared to provide ``undulating'' boundaries. Low
growing trees and brush are to be left in the right-of-way to the
extent it will not be hazardous to the line or will not interfere
with the service road. The length of actual clearing shall be
measured in a straight line parallel to the horizontal line between
poles or center line of structures and across the maximum dimension
of foliage cleared projected to the ground line (See Detail B,
Drawing TM-12-2A.) All trees and underbrush cleared across the
right-of-way shall be considered to be grouped together as a single
length in measuring the total length of clearing (See Detail C,
Drawing TM-12-2A.) Spaces along the right-of-way in which no trees
are to be removed or trimmed or underbrush cleared shall be omitted
from the total measurement.
TM-14 (1). This unit is identical with TM-14 except the full
width of the right-of-way to be cleared shall be ________ (________)
feet wide (See Detail D, Drawing TM-12-2A.)
TM-15. The unit is 1,000 feet in length and ________ (________)
feet in width (to be measured ________ (________) feet on one side
of the right-of way center line) of actual clearing of the right-of-
way. Trees and underbrush should be cleared from ground up within 10
feet of any structure location. The Engineer will mark the trees and
brush to be cleared to provide a ``feathered'' appearance in the
right-of-way. Low growing trees and brush are to be left in the
right-of-way to the extent it will not be hazardous to the line or
will not interfere with the service road.
The length of actual clearing shall be measured in a straight
line parallel to the horizontal line between poles or center line of
structures and across the maximum dimension of foliage cleared
projected to ground line (See Detail B, Drawing TM-12-2A). All trees
and underbrush cleared across the right-of-way shall be considered
to be grouped together as a single length in measuring the total
length of clearing (See Detail C, Drawing TM-12-2A). Spaces along
the right-of-way in which no trees are to be removed or trimmed or
underbrush cleared shall be omitted from the total measurement.
TM-15 (1). This unit is identical to TM-15 except the full width
of the right-of-way to be cleared shall be ________ (________) feet
wide (See Detail D, Drawing TM-12-2A).
Additional Requirements. (When Specifying TM units denote type
of disposal A or B).
A. Trees, brush, branches and refuse shall, without delay, be
disposed of by such of the following methods as an Engineer will
direct (Engineer to strike out methods not to be used).
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (Describe) ________
B. Trees that are felled shall be cut to commercial wood
lengths, stacked neatly, and left on the right-of-way for the
landowner. Commercial wood length means the length designated by the
Engineer but in no case shall it be required to be less than
________ (________) feet. Brush, branches and refuse shall, without
delay, be disposed of by such of the following methods as the
Engineer will direct (Engineer to strike out methods not to be
used).
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (Describe) ________
Transmission Right-of-Way Units
------------------------------------------------------------------------
Unit No. No. of units Unit price Extended price
------------------------------------------------------------------------
------------------------------------------------------------------------
Total------------------------------------------------------------------
Acceptance
Subject to the approval of the Administrator, the Owner hereby
accepts the foregoing Proposal of the Bidder, ________ for the
construction of the following:
The total contract price is $________
________ Owner
By ________ President
________ Secretary
________ Date of Contract
Specifications
In preparing the right-of-way, trees shall be removed,
underbrush cleared, and trees trimmed so that the right-of-way shall
be clear from the ground up as specified in the Proposal. Trees
fronting each side of the right-of-way shall be trimmed
symmetrically unless otherwise directed by the Engineer. Dead trees
beyond the right-of-way which would strike the line in falling shall
be removed. Leaning trees beyond the right-of-way which would strike
the line in falling and which would require topping if not removed
may be removed or topped at the direction of the Engineer.
Where TMC-12, TMC-12-(1) units are specified, the right-of-way
shall be cleared in accordance with the instructions in the
preceding paragraph and in addition, all stumps one-half inch in
diameter and larger shall be sprayed as specified by the Engineer.
[End of clause]
Sec. 1726.323 Certificate (Buy America), RUS Form 213.
The closeout form in this section shall be used when required by
this part.
Certificate
With respect to compliance with the second paragraph of the
Rural Electrification Act of 1938, being Title IV of the Work Relief
and Public Works Appropriation Act of 1938 (Public Resolution No.
122, 75th Congress, approved June 21, 1938).
Rural Utilities Service Project ________.
The undersigned, being, the ________1, in a certain
contract No. ________ dated ________, 19 ____, between the
undersigned and ________2, does hereby certify that in the
performance of the said contract there have been used or furnished
no unmanufactured articles, materials or supplies which have not
been mined or produced in the United States, Mexico, or Canada and
no manufactured articles, materials or supplies which have not been
manufactured in the United States, Mexico, or Canada substantially
all from articles, materials or supplies mined, produced or
manufactured, as the case may be in the United States, Mexico, or
Canada, except to the extent that compliance with the
[[Page 10192]] second paragraph of the Rural Electrification Act of
1938, being Title IV of the Work Relief and Public Works
Appropriation Act of 938 (Public Resolution No. 122, 75th Congress,
approved June 22, 1938) has been waived by the Administrator of the
Rural Utilities Service.
\1\Insert ``Contractor.'' ``Subcontractor.'' ``Seller'' Or
``Materialman.'' as the case may be.
\2\Insert the name of the RUS Borrower.
---------------------------------------------------------------------------
________
By ________
Date ________, 19____
[End of clause]
Sec. 1726.324 Waiver and release of lien, RUS Form 224.
The closeout form in this section shall be used when required by
this part.
Waiver and Release of Lien
Whereas the undersigned, ________ (name of manufacturer,
materialman or subcontractor) has furnished to ________ (name of
contractor) the following: ________ (kind of material and services
furnished) for use in the construction of a Project belonging to
________ (name of borrower) and designated by the Rural Utilities
Service as ________ (RUS project designation.)
Now, Therefore, the undersigned, ________ (name of manufacturer,
materialman or subcontractor) for and in consideration of $________
and other good and valuable consideration, the receipt whereof is
hereby acknowledged, do(es) hereby waive and release any and all
liens, or right to or claim of lien, on the above described project
and premises, under any law, common or statutory, on account of
labor or materials, or both, heretofore or hereafter furnished by
the undersigned to or for the account of said ________ (name of
contractor) for said project.
Given under my(our) hand(s) and seal(s) this ________ day of
________, 19____. ________ Name of manufacturer, materialman or
subcontractor
By ________ President, vice president, partner or owner, or, if
signed by other than one of foregoing, accompanied by power of
attorney signed by one of the foregoing in favor of the signer. (use
designation applicable)
[End of clause]
Sec. 1726.325 Certificate of contractor, RUS Form 231.
The closeout form in this section shall be used when required by
this part.
Certificate of Contractor
________, certifies that he is the ________ (Title of Office) of
________ (Name of Contractor), the Contractor, in a Construction
Contract No. ________ dated ________, 19____, entered into between
the Contractor and ________ (Name of Borrower) the Owner, for the
construction of a Project, which bears the Rural Utilities Service
Project Designation ________ and that he is authorized to and does
make this certification on behalf of said Contractor in order to
induce the Owner to make payment to the Contractor, in accordance
with the provisions of said Construction Contract.
Undersigned further says that all persons who have furnished
labor in connection with said construction have been paid in full,
that the names of manufacturers, materialmen and subcontractors that
furnished material or services or both in connection with such
construction and the kind or kinds of material or services or both
so furnished are:
Name ________
Kind of material and service ________
and that the releases of liens executed by all such manufacturers,
materialmen and subcontractors have been furnished the Owner.
Date ________
Signature ________
[End of clause]
Sec. 1726.326 Construction or equipment contract amendment, RUS Form
238.
The amendment form in this section shall be used when required by
this part.
Construction Or Equipment Contract Amendment
Project Designation ________
Date ________
Amendment No. ________
Contract No. ________
Bond extension attached ____ Yes ____ No
Delivery or Completion Date: Original ________ As Amended ________
Instructions: 1. The Architect-Engineer shall submit three (3)
copies of this form for each contract which has been approved by
RUS, to the Owner. 2. The Owner will submit the three (3) copies of
this form to RUS for approval.
Reasons for, and details and description of the amendment
________
(If additional space is needed, use reverse or separate sheet)
A summary of the original contract price and amendments thereto,
including this amendment, follows:
(Amendments which decreased the price are preceded by a (-)
minus sign).
Original Contract Price $________
Amendment Number 1 $________
Amendment Number 2 $________
Amendment Number 3 $________
Amendment Number 4 $________
Amendment Number 5 $________
Amendment Number 6 $________
Amendment Number 7 $________
Amendment Number 8 $________
Amended Contract Price $________
This amendment, providing for an increase of $________ /
decrease of $________ in the contract price is submitted pursuant to
the provisions of said contract. (The Administrator of RUS is hereby
authorized to approve this amendment either in whole or in part and
to delete such items as do not meet his approval).
To the extent the items hereof are approved the contract shall
be amended.
Accepted
________ Contractor
By ________ President-Owner-Partner (Strike out inapplicable title.
If signed by other than above, power of attorney should be attached
or on file with RUS.)
________ Date
________ Owner
By ________ President-Board of Directors
________ Date
Approved
________ Architect-engineer
________ Date
----------------------------------------------------------------------------------------------------------------
Reasons for and description of contract Labor or Material or
Item No. amendment No. ____ installation\1\ equipment\1\ Total
----------------------------------------------------------------------------------------------------------------
Net total.......
----------------------------------------------------------------------------------------------------------------
\1\Changes in Cost (decrease preceded by (-) minus sign.) To be filled in when applicable.
[End of clause]
Sec. 1726.327 Material receipt, RUS Form 251.
The receipt form in this section shall be used when a Material
Receipt is required by RUS Form 764, 830, or 831.
Materials Receipt
Instructions: Prepare three (3) copies. Forward original to
Owner, one copy to Contractor and one copy to Engineer.
Date ________
----------------------------------------------------------------------------------------------------------------
Manufacturer and
Item\1\ Quantity Description of item catalog No. Unit price Extended price
----------------------------------------------------------------------------------------------------------------
[[Page 10193]]
Total...........
----------------------------------------------------------------------------------------------------------------
Notes: 1. Item corresponds with item in list of materials in construction drawings.
Received by ________
For:
________ Contractor
________ Owner
[End of clause]
Sec. 1726.328 Construction inventory (for labor and material
contract), RUS Form 254.
The closeout form in this section shall be used when required by
this part.
Construction Inventory (For Labor and Material Contract)
Date ________
Project Designation ________
Borrower ________
Engineer ________
Contractor ________
Amount Payable to Contractor
A. Total Cost of Standard, New And Conversion Assembly Units
Installed (Total No. 6, RUS Form 254a) $________
B. Cost To Remove ``I'' Units (Total No. 7, RUS Form 254a)
$________
C. Amount To Be Credited To Contractor For Materials Removed
From Existing Facilities And Returned (Total No. 14, RUS Form 254b)
$________
Subtotal $________
Deduct:
D. Amount Chargeable To Contractor For Materials In Assembly
Units Removed (Total No. 9, RUS Form 254a) $________
E. Net Amount Of Owner-furnished Materials (Total No. 24 RUS
Form 254c) $________
F. Net Amount Due Contractor (In making final payment to
Contractor, the net amount due the Contractor, as shown by this
Certification, will be reduced by the sums, if any, due the Owner
for liquidated damages, payment made to date, or other sums which
the Owner has the right to retain under the terms of the Contract,
and signature by all parties does not preclude the retention by the
Owner of such amounts.) $________
Certificate of Engineer
I certify that to the best of my knowledge and belief the
attached final inventory correctly shows the total number and
character of assembly units installed and removed by the Contractor
and that the net amount of $________ due the Contractor, as shown
above, is true and correct.
Engineer ________
By ________
Date ________
Acceptance by Owner
Owner ________
By ________ President
Date ________
Acceptance by Contractor
Firm ________
By ________
Date ________
Instructions
(See RUS Bulletin 1767B-3, Preparation and Use of RUS Form 254,
for additional instructions.)
The Engineer will prepare 5 copies of RUS Form 254 and 254a,
also 5 copies of Forms 254b and 254c when applicable. Original and 1
copy to be forwarded to RUS, 1 copy to Contractor, 1 copy to Owner,
and 1 copy to be retained by Engineer.
Calculation of amount payable to Contractor will employ data
taken from Nos. 1 through 25, RUS Forms 254, 254a, 254b, 254c. The
amounts to be inserted opposite Items A, B, C, D, and E on RUS Form
254 are indicated in the texts of those items.
Nos. 1 through 17, Forms 254a and 254b: (Form 254b is required
only when ``I'' removal units are included in the Contract.)
No.--Source of Information
1 and 2--From tabulation of staking sheets.1
\1\Standard units will be listed first, followed by new units
and conversion units, in that order, with all ``I'' removal units
being listed last.
---------------------------------------------------------------------------
3 and 4--From Contract.
5--No. 3 plus No. 4.
6--No. 1 multiplied by No. 5.
7--No. 1 multiplied by No. 3 (for ``I'' units only).
8--From Table C of Contract.
9--No. 1 multiplied by No. 8 for ``I'' removal units only. (Table C
relates solely to ``I'' units.)
10, 11, and 12--From Engineer's and Owner's records.
13--From Table D in Contract.
14--No. 12 multiplied by No. 13.
15--From Engineer's records. (Quantities shall be listed opposite
the appropriate material items described in No. 11.)
16--From individual stock record card for each material item listed.
17--No. 15 multiplied by No. 16.
Data shown on Form 254c to be presented under the following
headings, as appropriate:
Part I Material Items Included in Lists Set Forth in Construction
Contract
Part II Other Material Items Furnished by Owner
Nos. 18 through 25: (Form 254c is required only when there are
owner-furnished materials.)
No.--Source of Information
18 and 19--From Contract and Material Receipts.
20--From charge-out and credit tickets covering materials issued to
and returned by the Contractor.2
\2\The quantities shown in No. 20 should agree with Materials
Receipts (RUS Form 251) prepared in connection with the contact. The
types of items of material and the quantity of any item of material
listed under Part I of the tabulation should be limited to the type
of items and should not exceed the quantity of any item of material
specified in the construction contract in the ``List of Owner's
Materials on Hand'' or the ``List of Materials Ordered by Owner But
Not Delivered.'' Any additional items of material or excess
quantities over the items specified in such lists are to be shown
under Part II of the tabulation.
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21--From average unit costs on charge-out and credit tickets
relating to this construction, such costs in turn being taken from
the average unit costs reflected by the stock record cards for the
applicable period.
22--No. 20 multiplied by No. 21.
23--For Part I, from the unit prices specified in the Contract in
the ``List of Owner's Materials on Hand'' or the ``List of Materials
Ordered by Owner But Not Delivered.''
For Part II, from the actual unit costs to Owner--the same as
used in No. 21.
24--No. 20 multiplied by No. 23.
25--No. 24 minus No. 22. (if a minus quantity, enter in
parentheses.)
See 7 CFR 1726, Electric System Construction Policies and
Procedures, for instructions regarding distribution of the completed
form.
Reference should be made to RUS Bulletin 1767B-3, Preparation
and Use of RUS Form 254, for instruction in accounting for all
contract costs, including the retirement of units removed by the
Contractor and the unitization by record units of costs of
construction assemblies installed by the Contractor.
RUS Form 254a
Assembly Units
1. Quantity ________
2. Standard (N--New, H--Conversion, I--Removal) ________
Due to Contractor for Units Installed, Converted, and Removed
3. Labor (Unit Price) ________
4. Material Unit Price (Except I Units) ________
5. Total Unit Price (No. 3 + No. 4) (Except I Units) ________
6. Cost of Construction (No. 1 x No. 5) (Except I Units) ________
7. Cost to Remove ``I'' Units (No. 1 x No. 3) ________
Amount Chargeable to Contractor for Materials in Assemblies Removed
8. Unit Values (Table C in Contract) ________
9. Total (No. 1 x No. 8) ________
Total (No. 6) ________
Total (No. 7) ________
Total (No. 9) ________ [[Page 10194]]
RUS Form 254b
Summary and Classification Of Materials Returned to Owner by Contractor
from ``I'' Removal Units
Amounts to be Credited to Contractor for Materials Returned
10. Item Designation ________
11. Description of Material ________
12. Quantity ________
13. Item Value--Table D in Contract ________
14. Total Credit to Contractor (No. 12 x No. 13) ________
Returned Materials Declared Reusable by Engineer
15. Quantity of Items ________
16. Stock Card Item Price ________
17. Salvage Value (No. 15 x No. 16) ________
Total (No. 14) ________
Total (No. 17) ________
RUS Form 254c
Tabulation of Net Amount of Materials Furnished by Owner
18. Item Designation ________
19. Description of Material ________
20. Quantity ________
Actual Cost to Owner
21. Unit Cost ________
22. Extended Cost (No. 20 x No. 21) ________
Amount Chargeable to Contractor at Contract Price
23. Unit Cost ________
24. Extended Cost (No. 20 x No. 23) ________
25. Excess of No. 24 over No. 22 ________
Total (No. 22) ________
Total (No. 24) ________
Total (No. 25) ________
[End of clause]
Sec. 1726.329 Contract to construction buildings, RUS Form 257.
The contract form in this section shall be used when required by
this part.
Contract to Construct Buildings
Notice and Instructions to Bidders
1. Proposals: Sealed proposals for the construction, including
the furnishing of all materials, machinery, labor and equipment,
water, heat, utilities, transportation, and other means necessary
for construction of the building(s) listed below (hereinafter called
the ``Project'') to be financed ________ not to be financed ________
pursuant to a loan contract between ________ (hereinafter called the
``Owner'') and the United States of America, by the Administrator of
the Rural Utilities Service (hereinafter called the
``Administrator'') and designated as Project ________ will be
received by the Owner on or before ________ o'clock ____ M ________
Time, ________, 19____, at its office located at ________ at which
time and place the proposals will be publicly opened and read. The
Rural Telephone Bank may also be a party to the loan contract.
Name or Kind of Building ________
Location ________
2. Obtaining Documents: The Plans and Specifications together
with all other necessary forms and documents for bidders may be
secured from ________ at ________ upon payment of ________ Dollars
($________) which payment will be refunded to each bona fide bidder
within ten (10) days after the bid opening. Additional sets of Plans
and Specifications may be obtained upon payment of ________ Dollars
($________) which payment will not be subject to refund. The Plans
and Specifications may be examined at the office of ________. A copy
of the loan contract may also be examined at the office of the
Owner.
3. Manner of Submitting Proposals: Proposals and all supporting
documents required to be attached thereto must be submitted on the
forms furnished by the Owner and must be delivered in a sealed
envelope, addressed to the Owner. The name and address of the
Bidder, its license number, if a license is required by the State,
and the date and hour of the opening of bids must appear on the
envelope in which the proposal is submitted. Proposals must be
filled in in ink or typewritten. No alterations or interlineations
will be permitted, unless made before submission, and initialed and
dated.
4. Familiarity with Conditions: Prior to the submission of the
Proposal, the Bidder shall make and shall be deemed to have made a
careful examination of the site of the Project and of the Plans and
Specifications, forms of Construction Proposal and Acceptance, and
Contractor's Bond on file with Secretary of the Owner and shall
become informed as to the location and nature of the proposed
construction, the transportation facilities, the kind and character
of the soil and terrain to be encountered, the kind of facilities
required before and during the construction of the Project, general
local conditions, and all other matters that may affect the cost and
the time of completion of the Project. Bidders will be required to
comply with all applicable statutes, regulations, etc., including
those pertaining to the licensing of contractors and the so called
``Kick-Back'' Statute (48 Stat. 948) and regulations issued pursuant
thereto.
5. Proposals will be accepted only from those prequalified
bidders invited by the Owner to submit a proposal.
6. Time of Completion of Construction: The time of completion of
construction of the Project shall be as specified by the Architect
in the Proposal.
7. Bid Bond: Each proposal must be accompanied by a bid bond in
the form attached or a certified check on a bank that is a member of
the Federal Deposit Insurance Corporation, payable to the order of
the Owner, in an amount equal to ten percent (10%) of the maximum
bid price. Each Bidder shall agree, provided its proposal is one of
the three low proposals, that by filing its proposal together with
such bid bond or check in consideration of the Owner's receiving and
considering such proposal, said proposal shall be firm and binding
upon each such Bidder and such bid bond or check shall be held by
the Owner until a Proposal is accepted and a satisfactory
Contractor's Bond (or Builder's Risk Policy) is furnished by the
successful Bidder and such acceptance has been approved by the
Administrator, or for a period not to exceed sixty (60) days from
the date hereinbefore set for the opening of proposals, whichever
period shall be the shorter. If such proposal is not one of the
three low proposals, the bid bond or check will be returned in each
instance within a period of ten (10) days to the respective Bidder.
8. Contractor's Bond or Builder's Risk Policy: The successful
Bidder will be required to execute two additional counterparts of
the Proposal and to furnish.
(a) For contracts in amounts in excess of $100,000, a
Contractor's Bond in the form attached to the Proposal with sureties
listed by the United States Treasury Department as Acceptable
Sureties, in a penal sum not less than the contract price.
(b) For contracts in amounts of $100,000 or less, either a
Contractor's Bond or a Builder's Risk Policy, whichever the Owner
has specified below: (Check One)
________ Contractor's Bond
________ Builder's Risk Policy
9. Failure to Furnish Contractor's Bond or Builders Risk Policy:
Should the successful Bidder fail or refuse to furnish a
Contractor's Bond (or Builder's Risk Policy) satisfactory to the
Owner within fifteen (15) days after written notification of the
acceptance of the Proposal by the Owner, the Bidder will be
considered to have abandoned the Proposal. In such event, the Owner
shall be entitled: (a) To enforce the Bid Bond in accordance with
its terms, or (b) if a certified check has been delivered with the
Proposal, to retain from the proceeds of the certified check the
difference between the amount of the Proposal and such larger
amounts for which the Owner may in good faith contract with another
party to construct the Project. The term ``successful Bidder'' shall
be deemed to include any Bidder whose proposal is accepted after
another Bidder has previously refused or has failed to furnish a
satisfactory Contractor's Bond (or Builder's Risk Policy).
10. Contract is Entire Agreement: The contract, effected by
acceptance of the Proposal, shall be deemed to include the entire
agreement between the parties thereto, and the Bidder shall not
claim any modification thereof resulting from any representation or
promise made at any time by any officer, agent or employee of the
Owner or by any other person.
11. Minor Irregularities: The Owner reserves the right to waive
minor irregularities or minor errors in the Proposal, if it appears
to the Owner that such irregularities or errors were made through
inadvertence.
Any such irregularities or errors so waived must be corrected on
the Proposal prior to its acceptance by the Owner.
12. Rejection of Proposals: The Owner reserves the right to
reject any or all proposals.
13. Discrepancies: Where a discrepancy appears between the sum
of the Base Bids of each building and the Total Base Bid, the
correct addition of the Base Bid price for each building shall
control.
14. The Owner Represents:
(a) If by provisions of the Proposal, the Owner shall have
undertaken to furnish any materials for the construction of the
Project, such materials are on hand at locations
[[Page 10195]] which may be determined by the bidders' inquiry of
the Architect, or if such materials are not on hand, they will be
made available by the Owner to the successful Bidder before the time
such materials are required for incorporation into the Project.
(b) Title to the property on which the Project is to be
constructed has been obtained.
(c) All funds necessary for prompt payment of the construction
of the Project will be available. If the owner should fail to comply
with any of the undertakings contained in the foregoing
representations or if any such representations shall be incorrect,
the Bidder will be entitled to an extension of the time of
completion of Construction for a period equal to the delay, if any,
caused by the failure of the Owner to comply with such undertakings
or by any such incorrect representations; provided the Bidder shall
have promptly notified the Owner in writing of its desire to extend
the time of completion in accordance with the foregoing, and
provided further that such extension, if any, of the time of
completion shall be the sole remedy of the Bidder for the Owner's
failure to comply with any of the foregoing representations.
________ Owner
By ________
Dated ________
Proposal
To: ________ (hereinafter called the ``Owner''). The undesigned
(hereinafter called the ``Bidder'') proposes to construct the
buildings(s) listed in Section 1 of Article I (hereinafter called
the ``Project''), financed ________, not to be financed ________, in
whole or in part by a loan to the Owner by the United States of
America, by the Administrator of the Rural Utilities Service
(hereinafter called the ``Administrator''), or by loans to the Owner
by the United States of America and by the Rural Telephone Bank,
designated ________ and to receive and install such materials and
equipment as may hereinafter be specified to be furnished by the
Owner, and to furnish all other materials, machinery, and equipment,
water, heat, utilities, transportation and other means required to
construct the Project in accordance with the plans and
specifications (hereinafter called the ``Plans and
Specifications''), prepared by ________ (hereinafter called the
``Architect'') and dated ________, 19____, and approved by the Rural
Utilities Service on ________, 19____, and by this reference made a
part hereof. The Bidder has made a careful examination of the
site(s) on which the Project to be constructed, has become informed
as to the kind of facilities required before and during the
construction of the Project and has become acquainted with the labor
conditions which would affect the work.
The Bidder agrees that if his bid is accepted, the following
terms shall govern.
Article I--Amount of Proposal
Section 1. Bid Price: The Bidder will construct the Project for
the following sum:
Name or Kind and Location of Building ________
Base Bid ________
Total of Bid $________
Alternate Bid No. 1 (add) (deduct) $________
Alternate Bid No. 2 (add) (deduct) $________
Alternate Bid No. 3 (add) (deduct) $________
Alternate Bid No. 4 (add) (deduct) $________
Section 2. Taxes: The price quoted herein includes all amounts
which the Bidder estimates will be payable by the Bidder or the
Owner on account of taxes imposed by any taxing authority upon the
sale, purchase or use of materials, supplies or equipment or
services or labor of installation to be incorporated in the Project.
The Bidder will pay all such taxes and will furnish to
appropriate taxing authorities any required information and reports
pertaining thereto.
Article II--Construction
Section 1. Time of Construction:
(a) The Bidder, after notification in writing of approval of the
Construction Contract by the Administrator, if approval of the
Administrator is required, will commence construction of the Project
within ________ (________) calendar days after the Owner shall have
given the Bidder written notice to commence construction which
notice shall be given:
(1) Not later than ________ (________) calendar days after
approval of the Construction Contract by the Administrator, if
approval of the Administrator is required.
(2) On a date to be determined by the Owner.
(The Architect will cross out the inapplicable statement (1) or
(2) above before requesting bids.)
(b) The Bidder will prosecute diligently and complete
construction of the Project in strict accordance with the Plans and
Specifications and directions of the Architect within ________
(________) calendar days after the expiration of the time specified
to commence construction.
(c) The time for Completion of Construction herein set forth
shall be extended for the period of any reasonable delay which is
due exclusively to causes beyond the control and without the fault
of the Bidder, including acts of God, fires, floods, direction by
the Architect to cease construction during periods when in the
judgment of the Architect it is impractical to perform any operation
of construction and acts or omissions of the Owner with respect to
matters for which the Owner is solely responsible, provided,
however, that no such extension of time for completion shall be
granted the Bidder unless within ten (10) days after the happening
of any event relied upon by the Bidder for such an extension of time
the Bidder shall have made a request therefor in writing to the
Owner and provided further that no delay in such time of completion
or in the progress of the work which results from any of the above
causes or from any changes in construction which may be made
pursuant to Subsection (d) of this Section shall result in any
liability on the part of the Owner.
(d) The Owner, acting through the Architect and with the
approval of the Administrator, if approval of the Administrator is
required, may from time to time during the progress of construction
make revisions in the Project. If the revision is such as to require
on extension in the time of construction, a reasonable extension
shall be granted if the Bidder shall make a written request therefor
to the Owner prior to the commencement of work in connection with
such revision. If the cost of the Project to the Bidder to make
revision shall be increased or decreased, the contract price shall
be amended by an amount equivalent to the reasonable cost thereof by
a Construction Contract Amendment signed by the Owner and the
Bidder, and approved by the Administrator, if approval of the
Administrator is required; but no claim for additional compensation
for any revision will be considered unless the Bidder shall have
made a written request therefore to the Owner prior to the
commencement of work in connection with such revision. The
reasonable cost of any increase or decrease in the contract
amendment as outline above, in the absence of any other mutual
agreement, shall be computed on the basis of the direct cost of
materials, F.O.B. the site of the Project, plus the direct cost of
labor necessary to incorporate such materials into the Project
(including actual cost of payroll taxes and insurance) plus twenty-
five percent (25%) of the direct cost of materials and labor. Labor
cost shall be limited to the direct costs for workmen and foremen.
Costs for Bidder's main office overhead, job office overhead and
superintendence shall not be included.
Section 2. Supervision: The Bidder will give sufficient
supervision to the work, using his best skill and attention. He will
carefully study and compare all drawings, specifications and other
instructions, and report at once to the architect any error,
inconsistency or omission which he may discover. The Bidder will
make available during construction a competent superintendent and
any necessary assistants, all satisfactory to the architect. The
superintendent shall not be changed except with the consent of the
Architect unless the superintendent proves to be unsatisfactory to
the Bidder and ceases to be his employ. The superintendent shall
represent the Bidder in his absence and all directions given to him
shall be as binding as if given to the Bidder. When requested, such
directions shall be confirmed in writing.
Section 3. Shop Drawings: The Bidder, after reviewing, will
submit to the Architect, with such promptness as to cause no delay
in the work two copies of all shop or setting drawings and schedules
required for the work of the various trades, and the Architect shall
pass on them with reasonable promptness, requesting corrections
required thereto to be made. The Bidder will make any corrections
required and file with the Architect three corrected copies and
furnish such other copies as may be needed. The Architect's approval
of such drawings or schedules shall not relieve the Bidder of
responsibility for deviations from the Plans and Specifications. The
Bidder will keep one copy of the contract documents on the site, in
good order, available to the Architect. All drawings and
specifications will be returned to the Architect upon completion of
construction.
Section 4. Samples: The Bidder will furnish for approval, all
samples as directed [[Page 10196]] by the Architect, and will
perform the work in accordance with such approved samples.
Section 5. Inspection and Tests: The manner of construction of
the Project and all materials and equipment used or to be used
therein shall be subject to the inspection, tests and approval of
the Architect and the Administrator, and the Bidder will furnish all
information required by the Architect or the Administrator
concerning the nature or source of materials. The Owner and the
Administrator shall have the right to inspect all records of the
Bidder and of any subcontractor relevant to the work. The Bidder
will make available at the site of the Project, telephone service
where obtainable, the payroll, invoices of material and other data
and records of the Bidder relevant to the work. The Bidder will
provide all reasonable facilities necessary for such inspection and
tests. If the specifications, the Architect's instructions, laws,
ordinances or any public authorities require any work to be
specially tested or approved, the Bidder will give the Architect
timely notice of its readiness for observation by the Architect or
inspection by an authority other than the Architect, and if the
inspection is by such other authority, of the date fixed for such
inspection, testing or approval. The Bidder will bear all costs of
such inspections, tests and approvals unless otherwise provided,
obtain required certificates and deliver them to the Architect.
Observations by the Architect shall be promptly made, and where
practicable at the source of supply. If any work should be covered
without approval or consent of the Architect, it must, if required
by the Architect, be uncovered for examination at the Bidder's
expense.
Re-examination of questioned work may be ordered by the
Architect and if so ordered the work must be uncovered by the
Bidder. If such work be found in accordance with the contract
documents the Owner shall pay the cost of re-examination and
replacement. If such work be found not in accordance with the
contract documents the Bidder will pay such cost.
Section 6. Employees: The Bidder will at all times enforce
strict discipline and good order among his employees and shall not
employ any unfit person or anyone not skilled in the task assigned
him. The Architect and the Owner shall have the right to require the
removal from the Project of any employee of the Bidder or
subcontractor if in their judgment such removal shall be necessary
to protect the interest of the Owner.
Section 7. Defective Workmanship and Materials: Notwithstanding
the acceptance of workmanship, materials (except owner-furnished
materials) or equipment or the giving of any certificate with
respect to the Completion of Construction, if during the
construction or within one year after such completion, or within
such longer period as the Project or any part thereof may be
guaranteed by other provisions of this Proposal, the workmanship,
materials or equipment shall be found to be defective or not in
conformity with the requirements of the Plans and Specifications,
the Bidder will remedy or replace such workmanship, materials or
equipment within thirty (30) days after written notice of the
failure of the Bidder to conform with the applicable provisions of
the contract documents shall have been given to the Bidder by the
Owner.
Article III--Payment and Releases of Liens
Section 1. Payments to Bidder:
(a) On or before the fifth (5) day of each Calendar Month, the
Bidder will make application for payment, and the Owner, on or
before the fifteenth (15) day of such month, shall make partial
payment to the Bidder for construction accomplished during the
preceding Calendar Month and partial payment for materials not
incorporated in the Project. The payment shall be made on the basis
of a schedule of values and receipts or other vouchers, submitted by
the Bidder to, and approved by, the Architect, showing payments for
labor and materials, payments to subcontractors, and such other
evidence of the Bidder's right to payment for construction
accomplished, and bills of sale or such other procedure as will
establish the Owner's title to materials not incorporated in the
Project but delivered and suitably stored on the site or at any
other location agreed upon in writing by the Owner. Approval by the
Architect of the application for payment is solely for the purposes
of payment and shall not be deemed approval of the workmanship or
materials. Only ninety percent (90%) of each such estimate of the
cost for construction accomplished and approved and fifty percent
(50%) of the cost of materials not incorporated in the Project shall
be paid by the Owner to the Bidder prior to Completion of
Construction.
The Bidder will, before the first application, submit to the
Architect, a schedule of values of the various parts of the work,
including quantities, aggregating the total contract price, divided
so as to assist in determining the accuracy of payments to
subcontractors and of the applications for payment.
(b) Upon Completion of Construction, the Architect shall inspect
the Project, and if he shall find the work acceptable and all
provisions hereunder fully performed, he shall furnish the Owner two
copies of a Certificate of Completion, on forms satisfactory to the
Administrator, and shall certify thereon the final Contract Price.
The Certificate of Completion shall show thereon the Acceptance of
the Contractor. Upon acceptance of the Certificate of Completion by
the Owner, the Owner shall make final payment to the Bidder of all
unpaid amounts to which the Bidder shall be entitled hereunder,
except that, for contracts requiring approval of the Administrator,
the Owner shall submit one copy of the Certificate of Completion to
the Administrator for approval. Upon notice of approval by the
Administrator, the Owner shall make final payment to the Bidder.
(c) Interest at the rate of ____ percent1 (____%) per annum
shall be paid by the Owner to the Bidder on all unpaid balances due
on monthly estimates, commencing fifteen (15) days after the due
date, provided the delay in payment beyond the due date is not
caused by any condition within control of the Bidder. The due date
for purposes of such monthly payment shall be the fifteenth (15th)
day of each Calendar Month provided (1) The Bidder on or before the
fifth (5th) day of such month shall have submitted its certified
estimate of construction completed during the preceding month and
(2) the Architect on or before the fifteenth (15th) day of such
month shall have approved such certification. If, for reasons not
due to the Bidder's fault, such approval of the Architect shall not
have been given on or before the fifteenth (15th) day of such month,
the due date for purposes of this Subsection shall be the fifteenth
(15th) day of such month notwithstanding the absence of the
Architect's approval of the certification.
\1\The Owner shall insert a rate equal to the lowest ``Prime
Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued.
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(d) Interest at the rate of ____ percent2 (____%) shall be
paid by the Owner to the Bidder on the final payment commencing
fifteen (15) days after the due date. The due date for the purposes
of such final payment shall be sixty (60) days after the date of
certification by the Architect in the Certificate of Completion or
the date of approval by the Administrator of the Certificate of
Completion when approval thereof is required by the Administrator.
\2\See footnote 1.
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(e) No payments shall be due while the Bidder is in default in
respect of any of the provisions of this Proposal, and the Owner may
withhold from the Bidder the amount of any claim by a third party
against either the Bidder or the Owner based upon an alleged failure
of the Bidder to perform the work hereunder in accordance with the
provisions of this Proposal.
Section 2. Release of Liens: Upon Completion of Construction of
the Project, but prior to the payment to the Bidder of any amount
withheld in accordance with Section 1, (a) of Article III, the
Bidder shall furnish the Owner, on forms satisfactory to the
Administrator releases of all liens, and of all rights to claim any
lien from manufacturers, materialmen and subcontractors who have
furnished materials or services for the construction of the Project,
and a Certificate of Contractor on a form satisfactory to the
Administrator, to the effect that all labor used on or for the
Project has been paid and that all such releases have been submitted
to the Owner.
Article IV--Particular Undertakings of the Bidder
Section 1. Protection to Persons and Property: The Bidder will,
at all times, take all reasonable precautions for the safety of
employees on the Project, and of the public and all other persons
who may be affected thereby, and will comply with all applicable
provisions of Federal, State and Municipal safety laws and building
and construction codes.
The Bidder will protect from loss or damage all materials and
equipment to be incorporated in the Project, whether in storage on
or off the site, and other property at the site or adjacent thereto,
including trees, shrubs, lawns, walks, paved surfaces, structures
and utilities not designated for [[Page 10197]] removal, relocation
or replacement in the course of construction. The Bidder will
provide and maintain guard lights, watchman or other protection for
persons and property, and physical hazards shall be guarded in
accordance with the ``Manual of Accident Prevention in
Construction'' of the Associated General Contractors of America,
unless such instructions are incompatible with or less strict than
those of any public authority having jurisdiction thereon, or
instructions of the Architect.
The following provisions shall not limit the generality of the
above requirements:
(a) The Bidder will at all times, keep the premises free from
accumulation of waste material or rubbish caused by his employees or
work, and at the completion of construction he will remove all
rubbish from and about the Project, and all his tools, scaffolding
and surplus materials and will leave his work ``broom clean.''
(b) The Project from its commencement to completion, or to such
earlier date or dates when the Owner may take possession and control
in whole or in part as hereinafter provided, will be under the
charge and control of the Bidder and during such period of control
by the Bidder all risks in connection therewith and the materials to
be used therein will be borne by the Bidder. The Bidder will make
good and fully repair all injuries and damages to the Project or any
portion thereof under the control of the Bidder, by reason of any
act of God or other casualty or cause, whether or not the same shall
have occurred by reason of the Bidder's negligence.
(i) To the maximum extent permitted by law, Bidder shall defend,
indemnify, and hold harmless Owner and Owner's directors, officers,
and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Bidder's employees) and loss, damage to or destruction of
Owner's property or the property of any other person or entity
(including but not limited to Bidder's property) in any manner
arising out of or connected with the Contract, or the materials or
equipment supplied or services performed by Bidder, its
subcontractors and suppliers of any tier. But nothing herein shall
be construed as making Bidder liable for any injury, death, loss,
damage, or destruction caused by the sole negligence of Owner.
(ii) To the maximum extent permitted by law, Bidder shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Bidder, its subcontractors and suppliers of
any tier, and from all losses, demands, and causes of action arising
out of any such lien or claim. Bidder shall promptly discharge or
remove any such lien or claim by bonding, payment, or otherwise and
shall notify Owner promptly when it has done so. If Bidder does not
cause such lien or claim to be discharged or released by payment,
bonding, or otherwise, Owner shall have the right (but shall not be
obligated) to pay all sums necessary to obtain any such discharge or
release and to deduct all amounts so paid from the amount due
Bidder.
(iii) Bidder shall provide to Owner's satisfaction evidence of
Bidder's ability to comply with the indemnification provisions of
subparagraphs i and ii above, which evidence may include but may not
be limited to a bond or liability insurance policy obtained for this
purpose through a licensed surety or insurance company.
(c) The Bidder will confine his apparatus, the storage of
materials and the operations of his workmen to limits indicated by
law, ordinances, permits, or directions of the Architect, and shall
not unreasonably encumber the premises with his materials.
(d) The Bidder will not load or permit any of the structure to
be loaded with a weight that will endanger its safety.
(e) The Bidder will submit to the Owner, monthly reports in
duplicate of all accidents giving such data as may be prescribed by
the Architect.
(f) Upon violation by the Bidder of any of the provisions of
this section, the Bidder will, after written notice of such
violation given to the Bidder by the Architect or the Owner,
immediately correct such violation. Upon failure of the Bidder so to
do, the Owner may correct such violation at the Bidder's expense;
provided, however, that the Owner may, if it deems necessary or
advisable, correct such violation at the Bidder's expense without
such prior notices to the Bidder.
(g) The Bidder will be responsible for all construction means,
methods, techniques, sequences, and procedures and for coordinating
all portions of the construction of the Project.
Section 2. Insurance. The Bidder shall take out and maintain
throughout the contract period insurance of the following types and
minimum amounts:
(a) Workers' compensation and employers' liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to the workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
(b) Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
(c) Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million per person and $1 million per occurrence, and property
damage limits of $1 million for each occurrence. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
The Owner shall have the right at any time to require public
liability insurance and property damage liability insurance greater
than those required in subsection ``b'' and ``c'' of this Section.
In any such event, the additional premium or premiums payable solely
as the result of such additional insurance shall be added to the
Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3. Purchase of Materials: The Bidder will purchase all
materials (except owner-furnished materials) and supplies outright
and not subject to any conditional sales agreements, bailment lease
or other agreement reserving unto the seller any right, title or
interest therein. All materials and supplies shall become the
property of the Owner when erected in place or at such earlier time
as the parties may agree pursuant to Section 1(a) of Article III.
Unless otherwise specified, all materials shall be new.
Section 4. Assignment of Guarantees: The Bidder will obtain from
manufacturers, materialmen, and subcontractors and furnish to the
Owner all guarantees and will transfer or assign to the Owner such
guarantees as run in favor of the Bidder, prior to the time the
Bidder receives final payment. The guarantees shall be in addition
to and not limited by any other provisions of the contract
documents, guarantee or remedy required by law.
Section 5. Royalties and Patent Infringement: The Bidder will
pay all royalties and license fees, and will hold harmless and
indemnify the Owner from any and all claims, suits, and proceedings
for the infringement of any patent or patents covering any
equipment, materials, supplies or construction methods used in the
work.
Section 6. Compliance with Statues and Regulations: The Bidder
will comply with all applicable statues, ordinances, rules and
regulations pertaining to the work. The Bidder acknowledges that it
is familiar with The Rural Electrification Act of 1936, as amended,
the so-called ``Kick-Back'' Statute (48 Stat. 948), and all
regulations issued pursuant thereto, and 18 U.S.C. Secs. 287, 1001
as amended. The Bidder understands that the obligations of the
parties hereunder are subject to the applicable regulations and
orders of Governmental agencies having jurisdiction in the premises.
Section 7. Delivery of Possession and Control to Owner: Upon
written request of the Owner, the Bidder shall deliver to the Owner
full possession and control of any [[Page 10198]] portion of the
Project provided the Bidder shall have been paid at least 90 percent
(90%) of the cost of construction of such portion. Upon such
delivery of the possession and control of such portion of the
Project to the Owner, the risks and obligations of the Bidder as set
forth in Section 1(b), Article IV hereof with respect to such
portion so delivered to the Owner shall be terminated; provided,
however, that nothing herein contained shall relieve the Bidder of
any liability with respect to defective workmanship or materials as
provided in Section 7, Article II.
Section 8. Occupancy Before Completion: Exception as provided in
Section 7, the Owner shall not occupy any portion of the Project
prior to the time of completion without the written approval of the
Bidder. It is agreed that such occupancy of any such portion of the
Project will not constitute acceptance of workmanship or materials
used in construction of the Project as provided in Section 7,
Article II, and that such occupancy will not relieve the Bidder from
his obligation to complete any part of the Project in compliance
with the contract. The Owner agrees to permit the Bidder to fulfill
the requirements of the contract in accordance with instructions
issued to the Bidder by the Architect upon occupancy by the Owner.
Article V--Remedies
Section 1. Liquidated Damages: The time of Completion of
Construction of the Project is of the essence of this Contract.
Should the Bidder neglect, refuse or fail to complete construction
within the time herein agreed upon, after giving effect to
extensions of time, if any herein provided for, then, in that event
and in view of the difficulty of estimating with exactness damages
caused by such delay, the Owner shall have the right to deduct from
and retain out of such moneys which may be then due or which may
become due and payable to the Bidder, the sum of ________ Dollars
($________) per day of each and every day that such construction is
delayed in its completion beyond the specified time, as liquidated
damages and not as a penalty. If the amount due and to become due
from the Owner to the Bidder is insufficient to pay in full any such
liquidated damages, the Bidder shall pay to the Owner the amount
necessary to effect such payment in full; provided, however, that
the Owner shall promptly notify the Bidder in writing of the manner
in which the amount retained, deduced or claimed as liquidated
damages was computed.
Section 2. Completion on Bidder's Default: If default shall be
made by the Bidder or by any subcontractor in the performance of any
of the terms of this Proposal, the Owner, without in any manner
limiting its legal and equitable remedies in the circumstances, may
serve upon the Bidder and the surety or sureties upon the
Contractor's Bond or Bonds a written notice requiring the Bidder to
cause such default to be corrected forthwith. Unless within twenty
(20) days after the service of such notice upon the Bidder, such
default shall be corrected or arrangements for the correction
thereof, satisfactory to both the Owner and the Administrator, shall
be made by the Bidder or its Surety or Sureties, the Owner may take
over the construction of the Project and prosecute the same to
completion by contract or otherwise for the account and at the
expense of the Bidder and the Bidder and its Surety or Sureties
shall be liable to the Owner for any cost or expense in excess of
the contract price occasioned thereby. Sureties shall be liable to
the Owner for any cost or expense in excess of the contract price
occasioned thereby. In such event the Owner may take possession of
and utilize, in completing the construction of the Project, any
materials, tools, supplies, equipment, appliances, and plant
belonging to the Bidder or any of its subcontractors, which may be
situated at the site of the Project. The Owner in such contingency
may exercise any rights, claims or demands which the Bidder may have
against third persons in connection with this Proposal and for such
purpose the Bidder does hereby assign, transfer and set over unto
the Owner all such rights, claims and demands.
Section 3. Cumulative Remedies: Every right or remedy herein
conferred upon or reserved to the Owner or the Government or the
Administrator shall be cumulative, shall be in addition to every
right and remedy now or hereafter existing at law or in equity or by
statute and the pursuit of any right or remedy shall not be
construed as an election; provided, however, that the provisions of
Section 1 of this Article V shall be the exclusive measure of
damages for failure by the Bidder to complete the construction of
the Project within the time herein agreed upon.
Article VI--Miscellaneous
Section 1. Definitions: (a) The term ``Administrator'' shall
mean the Administrator of the Rural Utilities Service of the United
States of America and his duly authorized representatives or any
other person in whom or authority in which may be vested in the
duties and functions which the Administrator is now authorized by
law to perform.
(b) The term ``Architect'' shall mean the person or organization
employed by the Owner to provide architectural services for the
Project, and the Architect's duly authorized assistants and
representatives. If an Architect is not employed, the term shall
apply to the duly authorized agent of the Owner.
(c) The term ``Completion of Construction'' shall mean full
performance by the Bidder of the Bidder's obligations under the
Contract and all amendments and revisions thereof except the
Bidder's obligations in respect of (1) Releases of Liens and
Certificate of Contractor under Article III, Section 2 hereof, and
(2) other final documents. The term ``Completion of the Project''
shall mean full performance by the Bidder of the Bidder's
obligations under the Contract and all amendments and revisions
thereof. The date of signature by the Architect of the Certificate
of Completion shall be the sole and conclusive evidence as to the
date of Completion of Construction and as to the fact of Completion
of the Project.
Section 2. Materials and Supplies. In the performance of this
contract there shall be furnished only such unmanufactured articles,
materials, and supplies as have been mined or produced in the United
States, Mexico, or Canada, and only such manufactured articles,
materials, and supplies as have been manufactured in the United
States substantially all from articles, materials, or supplies
mined, produced or manufactured, as the case may be, in the United
States, Mexico, or Canada; provided that other articles, materials,
or supplies may be used in the event and to the extent that the
Administrator shall expressly in writing authorize such use pursuant
to the provisions of the Rural Electrification Act of 1938, being
Title IV of Public Resolution No. 122, 75th Congress, approved June
21, 1938. The Bidder agrees to submit to the Purchaser such
certificates with respect to compliance with the foregoing provision
as the Administrator from time to time may require.
Section 3. Bond or Builder's Risk Policy: (a) The Bidder will
furnish to the Owner, for a contract in an amount in excess of
$100,000, a bond in a penal sum not less than the Total Contract
Price and in the form attached hereto and with a Surety or Sureties
listed by the United States Treasury Department as Acceptable
Sureties.
(b) The Bidder will furnish to the Owner for a contract in an
amount of $100,000 or less, a Builder's Risk Policy or a bond like
that required in the preceding paragraph, whichever the Owner has
specified under Paragraph 8 of the Notice and Instructions to
Bidders. The Builder's Risk Policy shall be on a completed value
form, effective from the date equipment or materials is first
delivered to the building site, and shall name both the Owner and
the Contractor as insureds. The policy shall insure against loss by
fire or lightning and the named perils in the extended coverage
endorsement. The amount of coverage shall not be less than the
replacement value of the property constructed, including all
materials to be used in the construction and stored at the site or
at any other location whether furnished by the Owner or the
Contractor. When directed, the Bidder shall furnish evidence of
compliance with these requirements. The evidence shall be in the
form of a certificate of insurance by the insurance company and
shall include a provision that no change in or cancellation of the
policy shall be made without prior written notice to the Owner and
the Administrator.
Section 4. Subcontracts and Nonassignment: (a) Within ten (10)
days after acceptance of the Proposal by the Owner and before
awarding any subcontracts, the Bidder will notify the Architect,
Owner and Surety in writing, of the names of the subcontractors
proposed for the principal parts of the work, and will not enter
into any subcontract for such work if written objection thereto is
received from the Architect, Owner, Surety or Sureties within
fifteen (15) days after receipt of such notice. The Bidder will be
as fully responsible to the Owner and the Administrator for the acts
and omissions of each subcontractor and of persons employed by such
subcontractor as the Bidder would be for its own acts and omissions
and those of persons directly employed by it. The Bidder will not
subcontract on aggregate amount in excess of sixty-five percent
(65%) of its obligations, (to be calculated on the basis of the
Total Contract Price) without approval of [[Page 10199]] the
Architect, Owner, and Surety or Sureties on any bond furnished by
the Bidder for the faithful performance of the Bidder's obligations
hereunder. Nothing contained in the Construction Contract shall
create any contractual relation between any subcontractor and the
Owner.
(b) The Bidder will not assign the contract effected by the
acceptance of this Proposal or any part thereof without approval in
writing of the Owner, Surety or Sureties, and the Administrator if
the Construction Contract was approved by the Administrator.
Section 5. Equal Opportunity Provisions: (a) Bidder's
Representations.
The Bidder represents that:
It has ____, does not have____, 100 or more employees, and if it
has, that it has ____, has not____, furnished the Equal Employment
Opportunity-Employers Information Report EEO-1, Standard Form 100,
required of employers with 100 or more employees pursuant to
Executive Order 11246 and Title VII of the Civil Rights Act of 1964.
The Bidder agrees that it will obtain, prior to the award of any
subcontract for more than $10,000 hereunder to a subcontractor with
100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100.
The Bidder agrees that if it has 100 or more employees and has
not submitted a report on Standard Form 100 for the current
reporting year and that if this Contract will amount to more than
$10,000, the Bidder will file such report, as required by law, and
notify the Owner in writing of such filing prior to the Owner's
acceptance of this Proposal.
(b) Equal Opportunity Clause, During the performance of this
Contract, the Bidder agrees as follows: (1) The Bidder will not
discriminate against any employee or applicant for employment
because of race, color, religion, sex or national origin. The Bidder
will take affirmative action to ensure that applicants are employed,
and that employees are treated during employment without regard to
their race, color, religion, sex or national origin. Such actions
shall include, but not be limited to, the following: Employment,
upgrading, demotions or transfer; recruitment or recruitment
advertising, layoff or termination; rates of pay or other forms of
compensation; and selection of training, including apprenticeship.
The Bidder agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided
setting forth the provisions of this Equal Opportunity Clause.
(2) The Bidder will, in all solicitations or advertisements for
employees placed by or on behalf of the Bidder, state that all
qualified applicants will receive consideration for employment
without regard to race, color, religion, sex or national origin.
(3) The Bidder will send to each labor union or representative
of workers, with which it has a collective bargaining agreement or
other contract or understanding, a notice to be provided advising
the said labor union or worker's representative of the Bidder's
commitments under this section, and shall post copies of the notice
in conspicuous places available to employees and applicants for
employment.
(4) The Bidder will comply with all provisions of Executive
Order 11246 of September 24, 1965, and rules, regulations, and
relevant orders of the Secretary of Labor.
(5) The Bidder will furnish all information and reports required
by Executive Order 11246 of September 24, 1965, and by rules,
regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations, and orders.
(6) In the event of the Bidder's noncompliance with the Equal
Opportunity Clause of this Contract or with any of the said rules,
regulations, or orders, this Contract may be cancelled, terminated,
or suspended in whole or in part, and the Bidder may be declared
ineligible for further Government contracts or federally assisted
construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, and such other
sanctions may be imposed and remedies invoked as provided in
Executive Order 11246 of September 24, 1965, or by rule,
regulations, or order of the Secretary of Labor, or as provided by
law.
(7) The Bidder will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by the rules,
regulations, or order of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontract or vendor. The
Bidder will take such action with respect to any subcontract or
purchase order as the administering agency may direct as a means of
enforcing such provisions, including sanctions for noncompliance.
Provided, however, that in the event Bidder becomes involved in, or
is threatened with, litigation with a subcontractor or vendor as a
result of such direction by the administering agency, the Bidder may
request the United States to enter into such litigation to protect
the interests of the United States.
(c) Certificate of Nonsegregated Facilities. The Bidder
certifies that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Bidder agrees that a breach of this
certification is a violation of the Equal Opportunity Clause in this
Contract. As used in this certification, the term ``segregated
facilities'' means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms, and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Bidder agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific
time periods) it will obtain identical certifications from proposed
subcontractors prior to the award of subcontracts exceeding $10,000
which are not exempt from the provisions of the Equal Opportunity
Clause, and that it will retain such certifications in its files.
Section 6. License: The Bidder warrants that a Contractor's
License is ____, is not ____, required, and if required, it
possesses Contractor's License No. ________ for the State of
________ in which the Project is located, and said license expires
on ________, 19____.
Section 7. Extension to Successors and Assigns: Each and all of
the covenants and agreements contained in the contract effected by
the Acceptance of this Proposal shall extend to and be binding upon
the successors and assigns of the parties thereto.
Section 8. Description of Contract: The Notice and Instructions
to Bidders, the Proposal, the Acceptance, the Contractor's Bond or
Builder's Risk Policy, the Plans and Specifications and all
amendments or revisions thereto constitute the Construction
Contract.
Section 9. Contractor: Upon acceptance of this Proposal the
successful Bidder shall be the Contractor and all references in the
Proposal to the Bidder shall apply to the Contractor.
Section 10. Approval by the Administrator: No acceptance of a
Proposal for a contract upon which approval of the Administrator is
required shall become effective until the contract has been approved
by the Administrator; provided that no obligation shall arise
hereunder unless such approval is given within sixty (60) days after
the date set for the opening of the proposals. The acceptance of a
Proposal for a contract upon which approval of the Administrator is
not required shall become effective the date of acceptance by the
Owner.
________ Bidder
By ________ President
________ Address
Attest: ________ Secretary
Date ________
The Proposal must be signed with the full name of the Bidder. If
the Bidder is a partnership, the Proposal must be signed in
partnership name by a partner. If the Bidder is a corporation, the
Proposal must be signed in the corporate name by a duly authorized
officer and the corporate seal affixed and attested by the Secretary
of the Corporation.
Acceptance
Subject to the approval of the Administrator, if approval of the
Administrator is required, the Owner hereby accepts the Proposal of
________ for the construction of the Project therein described for
the:
Base Bid of ________ and alternate bids as follows (Show plus or
minus):
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________. [[Page 10200]]
Alternate bid No. ________, $________.
The Total Contract Price is $________
________ Owner
By ________ President
Attest: ________ Secretary
Dated ________
[End of clause]
Sec. 1726.330 [Reserved]
Sec. 1726.331 Bid bond, RUS Form 307.
The bond form in this section shall be used when a Bid Bond is
required by RUS Form 200, 203, 257, 764, 830, or 831.
Bid Bond
1. KNOW ALL MEN that we, ________, as Principal, and ________,
as Surety, are held and firmly bound unto ________ (hereafter called
the ``Owner'') in the penal sum of ten percent (10%) of the amount
of the bid referred to in paragraph 2 below, but not to exceed
________ dollars ($________), as hereinafter set forth and for the
payment of which sum well and truly to be made we bind ourselves,
our executors, administrators, successors and assigns, jointly and
severally, by these presents;
2. WHEREAS, the Principal has submitted a bid to the Owner for
the construction of the Rural Utilities Service Project known as
Project ________.
3. NOW, THEREFORE, the condition of this obligation is such that
if the Owner shall accept the bid of the Principal, and
(a) The Principal shall execute such contract documents, if any,
as may be required by the terms of the bid and give such
Contractor's Bond or Bonds for the performance of the contract and
for the prompt payment of labor and material furnished for the
Project as may be specified in the bid, or
(b) In the event of the failure of the Principal to execute such
contract documents, if any, and give such Contractor's Bond or
Bonds, if the Principal shall pay to the Owner the difference, not
to exceed the penal sum hereof, between the amount specified in the
bid and such larger amount for which the Owner may in good faith
contract with another party to construct the Project, then this
obligation shall be void, otherwise to remain in full force and
effect.
IN WITNESS WHEREOF, the undersigned have caused this instrument
to be executed and their respective corporate seals to be affixed
and attested by their duly authorized representatives this ________
day of________, 19____
Principal ________ (Seal)
By ________
Title ________
Attest: ________ (Secretary)
Surety ________ (Seal)
By ________
Title ________
Attest: ________ (Secretary)
[End of clause]
Secs. 1726.332-1726.339 [Reserved]
Sec. 1726.340 Substation and switching station erection contract, RUS
Form 764.
The contract form in this section shall be used when required by
this part.
Substation and Switching Station Erection Contract
Notice and Instructions to Bidders
1. Sealed proposals for the construction, including the supply
of necessary labor, materials and equipment, of a rural electric
project of ________ (hereinafter called the ``Owner'') to be known
as Project ________ will be received by the Owner on or before
________ o'clock ____ M., 19____, at its office at ________ at which
time and place the proposals will be publicly opened and read. Any
proposal received subsequent to the time specified will be promptly
returned to the Bidder unopened.
2. Description of Project: The Project will consist of the
following Substations and other Major Facilities:
Name ________ KVA ____ Voltage ________
Name ________ KVA ____ Voltage ________
Name ________ KVA ____ Voltage ________
The Project is located in ________ Counties, in the State of
________ all as more fully described in the Plans, Specifications
for Construction, Construction Drawings and Contractor's Proposal
therefore hereinafter referred to.
3. Owner Furnished Materials. The unit prices in the
Contractor's Proposal should include provisions for Owner Furnished
Materials since as stated in Article I, Section 3 of the
Contractor's Proposal, the value of the Owner Furnished Materials,
if any, will be deducted from payments to the Bidder for completed
Construction Units.
4. Obtaining Documents. The Plans, Specifications for
Construction and Construction Drawings together with all necessary
forms and other documents for bidders may be obtained from the
Owner, or from the Engineer ________ at the latter's office at
________ upon payment of $________, which payment will not be
subject to refund. The Plans, Specifications for Construction and
Construction Drawings may be examined at the office of the Owner or
at the office of the Engineer. A copy of the Loan Contract (if the
Project is to be financed in whole or in part, pursuant to a Loan
Contract) between the Owner and the United States of America acting
through the Administrator of the Rural Utilities Service
(hereinafter called the ``Administrator'') and of the loan contract
between the Owner and any other lender may be examined at the office
of the Owner. Each set of Plans, Specifications for Construction and
Construction Drawings will have a serial number, given by the
Engineer, and the number of each set with the name of the Purchaser
will be recorded by the Engineer. Bids will be accepted only from
the original purchasers.
5. Manner of Submitting Proposals. Proposals and all supporting
instruments must be submitted on the forms furnished by the Owner
and must be delivered in a sealed envelope addressed to the Owner.
The name and address of the Bidder, its license number if a license
is required by the State, and the date and hour of the opening of
bids must appear on the envelope in which the Proposal is submitted,
Proposals must be filled in in ink or typewritten. No alterations or
interlineations will be permitted, unless made before submission,
and initialed and dated.
6. Familiarity with Conditions. Prior to the submission of the
Proposal the Bidder shall make and shall be deemed to have made a
careful examination of the site of the Project and of the Plans,
Specifications for Construction, Construction Drawings, and forms of
Contractor's Proposal and Contractor's Bond on file with the
Secretary of the Owner and with the Engineer, and shall become
informed as to the location and nature of the proposed construction,
the transportation facilities, the kind and character of soil and
terrain to be encountered, the kind of facilities required before
and during the construction of the Project, general local conditions
and all other matters that may affect the cost and the time of
completion of the Project. Bidders will be required to comply with
all applicable statutes, regulations, etc., including those
pertaining to the licensing of contractors, and the so-called
``Kickback Statute'' (48 Stat. 948) and regulations issued pursuant
thereto.
7. Proposals will be accepted only from those prequalified
bidders invited by the Owner to submit a proposal.
8. Alternate Designs. The Owner reserves the right to confine
its consideration of the several bids to one type of design
regardless of alternate types of design which may be specified in
the Plans and Specifications for Construction and offered in the
Proposals.
9. The time for Completion of Construction of the Project shall
be as specified by the Engineer in the Proposal.
10. Bid Bond. Each Proposal must be accompanied by a Bid Bond in
the form attached or a certified check on a bank that is a member of
the Federal Deposit Insurance Corporation, payable to the order of
the Owner, in an amount equal to ten percent (10%) of the maximum
bid price. Each Bidder agrees, provided its Proposal is one of the
three low Proposals, that, by filing its Proposal together with such
Bid Bond or check in consideration of the Owner's receiving and
considering such Proposal, said Proposal shall be firm and binding
upon each such Bidder and such Bid Bond or check shall be held by
the Owner until a Proposal is accepted and a satisfactory
Contractor's Bond is furnished (where required) by the successful
Bidder and such acceptance has been approved by the Administrator,
or for a period not to exceed sixty (60) days from the date
hereinbefore set for the opening of Proposals, whichever period
shall be the shorter. If such Proposal is not one of the three low
Proposals, the Bid Bond or check will be returned in each instance
within a period of ten (10) days to the Bidder furnishing same.
11. Contractor's Bond. The successful Bidder will be required to
execute two additional counterparts of the Proposal and,
[[Page 10201]] for a Contract in excess of $100,000, to furnish a
Contractor's Bond in triplicate in the form attached hereto with
sureties listed by the United States Treasury Department as
Acceptable Sureties, in a penal sum not less than the contract
price.
12. Failure to Furnish Contractor's Bond. Should the successful
Bidder fail or refuse to execute such counterparts or to furnish a
Contractor's Bond (where required) within ten (10) days after
written notification of the acceptance of the Proposal by the Owner,
the Bidder will be considered to have abandoned the Proposal. In
such event, the Owner shall be entitled (a) to enforce the bid bond
in accordance with its terms, or (b) if a certified check has been
delivered with the Proposal, to retain from the proceeds of the
certified check the difference (not exceeding the amount of the
certified check) between the amount of the Proposal and such larger
amount for which the Owner may in good faith contract with another
party to construct the Project. The term ``successful Bidder'' shall
be deemed to include any Bidder whose Proposal is accepted after
another Bidder has previously refused or has been unable to execute
the counterparts or to furnish a satisfactory Contractor's Bond
(where required.)
13. Contract is Entire Agreement. The Contract to be effected by
the acceptance of the Proposal shall be deemed to include the entire
agreement between the parties thereto, and the Bidder shall not
claim any modification thereof resulting from any representation or
promise made at any time by any officer, agent or employee of the
Owner or by any other person.
14. Minor Irregularities. The Owner reserves the right to waive
minor irregularities or minor errors in any Propose, if it appears
to the Owner that such irregularities or errors were made through
inadvertence. Any such irregularities or errors so waived must be
corrected on the Proposal in which they occur prior to the
acceptance thereof by the Owner.
15. Rejection of Bids. The Owner reserves the right to reject
any or all Proposals. The attention of Bidders is specially called
to the desirability of a proper balance between prices for labor and
materials and between the total prices for the respective
Construction Units. Lack of such balance may be considered as a
reason for rejecting a Proposal.
16. Discrepancy in Unit Prices. Where the unit prices in the
Contractor's Proposal are separated into three columns designated as
``Labor,'' ``Materials'' and ``Labor and Materials,'' and where a
discrepancy appears between the sum shown in the ``Labor and
Materials'' column and the correct addition of the sums appearing in
the ``Labor'' column and the ``Materials'' column, the correct
addition of the sums appearing in the ``Labor'' column and the
``Materials'' column shall control.
17. Bidding and Acceptance. If the Project includes more than
one substation, bidders may bid on one or more substations. The
Owner may award (1) a contract for all of the substations on the
basis of the low total bid or, (2) separate contracts for one or
more substations based on the low bids for the respective
substations.
18. Definition of Terms. The terms ``Administrator,''
``Engineer,'' ``Supervisor,'' ``Project,'' ``Completion of
Construction'' and ``Completion of the Project'' as used throughout
this Contract shall be as defined in Article VI, Section 1, of the
Contractor's Proposal.
19. The Owner represents:
a. If by provisions of the Contractor's Proposal the Owner shall
have undertaken to furnish any materials for the construction of the
Project, such materials are on hand at locations specified or if
such materials are not on hand they will be made available by the
Owner to the successful Bidder at the locations specified before the
time such materials are required for construction.
b. Title to the property on which the Project is to be
constructed has been obtained.
c. All funds necessary for prompt payment for the construction
of the Project will be available.
If the Owner shall fail to comply with any of the undertakings
contained in the foregoing representations or if any of such
representations shall be incorrect, the Bidder will be entitled to
an extension of time of completion for a period equal to the delay,
if any, caused by the failure of the Owner to comply with such
undertakings or by any such incorrect representation; provided the
Bidder shall have promptly notified the Owner in writing of its
desire to extend the time of completion in accordance with the
foregoing, and provided further that such extension, if any, of the
time of completion shall be the sole remedy of the Bidder for the
Owner's failure, because of conditions beyond the control and
without the fault of the Owner, to furnish materials in accordance
with subparagraph a. hereof.
________ Owner
By ________
________, 19____
Contractor's Proposal
(Proposal shall be submitted in ink or typewritten)
To: ________ (Hereinafter called the ``Owner'')
Article I--General
Section 1. Offer to Construct. The undersigned (hereinafter
called the ``Bidder'') hereby proposes to receive and install such
materials and equipment as may hereinafter be specified to be
furnished by the Owner, and to furnish all other materials and
equipment, all machinery, tools, labor transportation and other
means required to construct the rural electric project ________ in
strict accordance with the Plans, Specifications for Construction
and Construction Drawings for the prices hereinafter stated.
Section 2. Materials and Equipment. The Bidder agrees to furnish
and use in the construction of the Project under this Proposal, in
the event the Proposal is accepted, only such materials and
equipment as are included in the current ``List of Materials
Acceptable for Use on Systems of RUS Electrification Borrowers,''
including revisions adopted prior to the Bid Opening.
Section 3. Owner-Furnished Materials. The Bidder understands and
agrees that, if this Proposal is accepted, the Owner will furnish to
the Bidder the material set forth in the attached ``List of Owner's
Materials on Hand'' (see page 10) and the Bidder will give a receipt
(see page 12) therefore in writing to the Owner. The Bidder,
further, will on behalf of the Owner accept delivery of such of the
materials set forth in the attached ``List of Materials Ordered by
Owner but Not Delivered'' (see page 11) as may be subsequently
delivered and will promptly forward to the Owner for payment the
supplier's invoice, together with the Bidder's receipt in writing
for such materials. The materials referred to are on hand at, or
will be delivered to, the locations specified in the Lists and the
Bidder will use such materials in constructing the Project.
The value of the completed Construction Units certified by the
Bidder each month pursuant to Article III, Section 1.a of this
Proposal shall be reduced by an amount equal to the value of the
materials installed by the Bidder during the preceding month which
have been furnished by the Owner or the delivery of which has been
accepted by the Bidder on behalf of the Owner. Only ninety percent
(90%) of the remainder shall be paid prior to the Completion of the
Project. The value of such materials shall be computed on the basis
of the unit prices stated in the Lists. Materials, if any, not
required for the Project, which have been furnished to the Bidder by
the Owner or delivery of which has been accepted by the Bidder on
behalf of the Owner, shall be returned to the Owner by the Bidder
upon Completion of Construction of the Project. The value of all
materials not installed in the Project nor returned to the Owner
shall be deducted from the final payment to the Bidder.
The Owner shall not be obligated to furnish materials in excess
of the quantities, size, kind and type set forth in the attached
Lists. If the Owner furnishes, and the Bidder accepts, materials in
excess thereof, the values of such excess materials shall be their
actual cost as stated by the Owner.
Information on the shipping schedules of materials on the ``List
of Materials Ordered by Owner But Not Delivered'' will be furnished
to the Bidder as necessary during progress of the work.
Upon delivery the Bidder shall promptly receive, unload,
transport and handle all materials and equipment on the ``List of
Materials Ordered by Owner But Not Delivered'' at its expense and
shall be responsible for demurrage, if any.
Section 4. Purchase of Materials Not Furnished by Owner. The
Bidder will purchase all materials and equipment (other than owner-
furnished materials) outright and not subject to any conditional
sales agreements, bailment, lease or other agreement reserving unto
the seller any right, title or interest therein. All such materials
and equipment shall become the property of the Owner when erected in
place.
Section 5. Proposal on Unit Basis. The Bidder understands and
agrees that the various Construction Units on which bids are made
are defined by symbols and descriptions in this Proposal, that all
said bids are on a unit basis, and that the Owner [[Page 10202]] may
specify any number or combination of Construction Units that the
Owner may deem necessary for the construction of the Project.
Separate Construction Units are designated for each different
arrangement which may be used in the construction of the Project.
This Proposal is based on a consideration of each unit in place and
includes only the materials listed on the corresponding Construction
Drawings or description of unit where no drawing exists.
Section 6. Familiarity with Conditions. The Bidder has made a
careful examination of the site of the Project to be constructed and
of the Plans, Specifications for Construction, Construction
Drawings, and form of Contractor's Bond attached hereto, and has
become informed as to the location and nature of the proposed
construction, the transportation facilities, the kind and character
of soil and terrain to be encountered, and the kind of facilities
required before and during the construction of the Project, and has
become acquainted with the labor conditions, state and local laws
and regulations which would affect work on the proposed
construction.
Section 7. License. The Bidder warrants that a Contractor's
License is ____, is not ____, required, and if required, it
possesses Contractor's License No. ________ for the State of
________ in which the Project is located and said license expires on
________, 19____.
Section 8. The Bidder warrants that this Proposal is made in
good faith and without collusion or connection with any person or
persons bidding for the same work.
Section 9. The Bidder warrants that it possesses adequate
financial resources and agrees that in the event this Proposal is
accepted and a Contractor's Bond is required, it will furnish a
Contractor's Bond in the form attached hereto, in a penal sum not
less than the maximum Contract price, with a surety or sureties
listed by the United States Treasury Department as Acceptable
Sureties.
In the event that the surety or sureties on the performance bond
delivered to the Owner contemporaneously with the execution of the
Contractor on any bond or bonds delivered in substitution therefor
or in addition thereto shall at any time become unsatisfactory to
the Owner or the Administrator, the Bidder agrees to deliver to the
Owner another or an additional bond.
Section 10. Taxes. The unit prices for Construction Units in
this Proposal include provisions for the payment of all monies which
will be payable by the Bidder or the Owner in connection with the
construction of the Project on account of taxes imposed by any
taxing authority upon the sale, purchase or use of materials,
supplies and equipment, or services or labor of installation
thereof, to be incorporated in the Project as part of such
Construction Units. The Bidder agrees to pay all such taxes, except
taxes upon the sale, purchase or use of owner-furnished materials
and it is understood that, as to owner-furnished materials, the
values stated in the attached ``List of Owner's Materials on Hand''
and ``List of Materials Ordered by Owner But Not Delivered'' include
taxes upon the sale, purchase or use of owner-furnished materials,
if applicable. The Bidder will furnish to the appropriate taxing
authorities all required information and reports pertaining to the
Project, except as to the owner-furnished materials.
Section 11. Changes in Quantities. The Bidder understands and
agrees that the quantities called for in this Proposal are
approximate, and that the total number of units upon which payment
shall be made shall be as set forth in the inventory. If the Owner
changes the quantity of any unit or units specified in this Proposal
by more than 15%, and the materials cost to the Bidder is increased
thereby to an extent which would not be adequately compensated by
application of the unit prices in this Proposal to the revised
quantity of such unit or units, such change, to the extent of the
quantities of such units in excess of such 15%, shall be regarded as
a change in the construction within the meaning of Article II,
Section 1(d) of this Proposal.
List of Owner's Materials on Hand
----------------------------------------------------------------------------------------------------------------
Item\1\ Description of material Catalog No. Quantity Unit price Extended price
----------------------------------------------------------------------------------------------------------------
Total..............
Above Materials are
Located at:
----------------------------------------------------------------------------------------------------------------
\1\Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3, the
value of these materials will be deducted from payments to the Bidder for completed Construction Units.
List of Materials Ordered by Owner But Not Delivered
----------------------------------------------------------------------------------------------------------------
Scheduled
Item\1\ Supplier name delivery Description of Catalog No. Quantity Unit price Extended
and address date material price
----------------------------------------------------------------------------------------------------------------
Total....
Above Material
to be
Delivered to:
----------------------------------------------------------------------------------------------------------------
\1\Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3, the
value of these materials will be deducted from payments to the Bidder for completed Construction Units.
Article II--Construction
Section 1. Time and Manner of Construction.
a. The Bidder agrees to commence construction of the Project on
a date (hereinafter called the ``Commencement Date'') which shall be
determined by the Engineer after notice in writing of approval of
the Contract by the Administrator and notice in writing from the
Bidder that the Bidder has sufficient materials to warrant
commencement and continuation of construction, but in no event will
the Commencement Date be later than ________ calendar days after
date of approval of the Contract by the Administrator. The Bidder
further agrees to prosecute diligently and to complete construction
in strict accordance with the Plans, Specifications for Construction
and Construction Drawings within ________ (________) calendar days
(excluding Sundays) after Commencement Date: Provided, however, that
the Bidder will not be required to perform any construction on such
days when in the judgment of the Engineer snow, rain, or wind, or
the results of snow, rain, or frost make it impracticable to perform
any operation of construction and to the extent of the time lost due
to the conditions described herein and approved in writing by the
Engineer, the time of completion set out above will be extended if
the Bidder makes a written request therefor to the Owner as provided
in subsection b of this Section 1.
b. The time for Completion of Construction shall be extended for
the period of any reasonable delay which is due exclusively to
causes beyond the control and without the fault of the Bidder,
including acts of God, fires, floods, inability to obtain materials
and acts or omissions of the Owner with respect to matters for which
the Owner is solely responsible: Provided, however, that no such
extension of time for completion shall be granted the Bidder unless
within ten (10) days after the happening of any event relied upon by
the Bidder for such an extension of time the Bidder shall have made
a request therefore in writing to the Owner, and provided further
that no delay in such time of completion or in the progress of the
work which results from any of the above causes, except acts or
omissions of the Owner, shall result in any liability on the part of
the Owner. [[Page 10203]]
c. The sequence of construction shall be as set forth below, the
numbers or names being the designations of substations or other
major facilities (hereinafter called the ``Stations'') corresponding
to the numbers or names shown on the maps attached hereto, or if no
Stations are set forth below, the sequence of construction shall be
as determined by the Bidder, subject to the approval of the
Engineer. ________
d. The Owner, acting through the Engineer and with the approval
of the Administrator,1 may from time to time during the
progress of the construction of the Project make such changes,
additions to or subtractions from the Plans, Specifications for
Construction, Construction Drawings, List of Materials and sequence
of construction provided for in the previous paragraph which are
part of the Contractor's Proposal as conditions may warrant:
Provided, however, that if any change in the construction to be done
shall require an extension of time, a reasonable extension will be
granted if the Bidder shall make a written request therefor to the
Owner within ten (10) days after any such change is made. And
provided further, that if the cost to the Bidder of construction of
the Project shall be materially increased by any such change or
addition, the Owner shall pay the Bidder for the reasonable cost
thereof in accordance with a Construction Contract Amendment signed
by the Owner and the Bidder and approved by the Administrator,2
but no claim for additional compensation for any such change or
addition will be considered unless the Bidder shall have made a
written request therefor to the Owner prior to the commencement of
work in connection with such change or addition.
\1\As long as the total price of this contract including all
amendments is less than 120 percent of the original contract price
as stated in the acceptance hereto, amendments executed on RUS Form
238 are not subject to the approval of the Administrator. Whenever
an amendment to this contract causes the total amended contract to
exceed 120 percent of the original contract price, that amendment
and all subsequent amendments to this contract shall be made subject
to the approval of the Administrator.
\2\ See Footnote 1.
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e. The Bidder will not perform any work hereunder on Sundays
unless there is urgent need for such Sunday work and the Owner
consents thereto in writing. The time for completion specified in
subsection a of this Section 1 shall not be affected in any way by
inclusion of this subsection nor by the Owner's consent or lack of
consent to Sunday work hereunder.
Section 2. Environmental Protection. The Bidder shall perform
work in such a manner as to maximize preservation beauty,
conservation of natural resources and minimize marring and scarring
of the landscape and silting of streams. The Bidder shall not
deposit trash in streams or waterways, and shall not deposit
herbicides or other chemicals or their containers in or near
streams, waterways or pastures. The Bidder shall follow, under the
general direction of the Engineer, the criteria relating to
environmental protection as specified herein by the Engineer.
Section 3. The Bidder agrees that in the event this Proposal is
accepted it will make available for use in connection with the
proposed construction all necessary tools and equipment and
qualified superintendents and foremen.
Section 4. Changes in Construction. The Bidder agrees to make
changes in construction previously installed in the Project by the
Bidder as required by the Owner. The compensation for such changes
shall be as agreed upon in writing by the Bidder and the Owner prior
to commencement of work in connection with such changes.
No payment shall be made to the Bidder for materials or labor
involved in correcting errors or omissions on the part of the Bidder
which result in construction not in accordance with the Plans and
Specifications for Construction.
Section 5. Construction Not in Proposal. The Bidder also agrees
that when it is necessary to construct units not shown in the
Proposal it will construct such units for a price arrived at as
follows:
a. The cost of materials shall be determined by the invoices.
b. The cost of labor shall be the reasonable cost thereof, as
agreed upon by the Owner and Bidder prior to the commencement of
work.
Section 6. Supervision and Inspection.
a. The Bidder shall cause the construction work on the Project
to receive constant supervision by a competent superintendent
(hereinafter called the ``Superintendent'') who shall be present at
all times during working hours where construction is being carried
on. The Bidder shall also employ, in connection with the
construction of the Project, capable, experienced and reliable
foremen and such skilled workmen as may be required for the various
classes of work to be performed. Directions and instructions given
to the Superintendent shall be binding upon the Bidder.
b. The Owner reserves the right to require the removal from the
Project of any employee of the Bidder if in the judgment of the
Owner such removal shall be necessary in order to protect the
interest of the Owner. The Owner or the Supervisor, if any, shall
have the right to require the Bidder to increase the number of its
employees and to increase or change the amount or kind of tools and
equipment if at any time the progress of the work shall be
unsatisfactory to the Owner or Supervisor; but the failure of the
Owner or Supervisor to give any such directions shall not relieve
the Bidder of its obligations to complete the work within the time
and in the manner specified in this Proposal.
c. The manner of construction of the Project, and all materials
and equipment used therein, shall be subject to the inspection,
tests and approval of the Owner and the Administrator, and the
Bidder shall furnish all information required by the Owner or by the
Administrator concerning the nature or source of any materials
incorporated or to be incorporated in the Project. The Owner and the
Administrator shall have the right to inspect all payrolls, invoices
of materials, and other data and records of the Bidder and of any
subcontractor, relevant to the construction of the Project. The
Bidder shall provide all reasonable facilities necessary for such
inspection and tests. The Bidder shall have an authorized agent
accompany the Engineer when final inspection is made and, if
requested by the owner, when any other inspection is made.
d. In the event that the Owner, or the Administrator, shall
determine that the construction contains or may contain numerous
defects, it shall be the duty of the Bidder and the Bidder's Surety
or Sureties, if any, to have an inspection made by an engineer
approved by the Owner and the Administrator for the purpose of
determining the exact nature, extent and location of such defects.
e. The Engineer may recommend to the Owner that the Bidder
suspend the work wholly or in part for such period or periods as the
Engineer may deem necessary due to unsuitable weather or such other
conditions as are considered unfavorable for the satisfactory
prosecution of the work or because of the failure of the Bidder to
comply with any of the provisions of the Contract: Provided,
however, that the Bidder shall not suspend work pursuant to this
provision without written authority from the Owner so to do. The
time of completion hereinabove set forth shall be increased by the
number of days of any such suspension, except when such suspension
is due to the failure of the Bidder to comply with any of the
provisions of this Contract. In the event that work is suspended by
the Bidder with the consent of the Owner, the Bidder before resuming
work shall give the Owner at least twenty-four (24) hours notice
thereof in writing.
Section 7. Defective Materials and Workmanship.
a. The acceptance of any materials, equipment (except owner-
furnished materials) or any workmanship by the Owner or the Engineer
shall not preclude the subsequent rejection thereof if such
materials, equipment, or workmanship shall be found to be defective
after delivery or installation, and any such materials, equipment or
workmanship found defective before final acceptance of the
construction shall be replaced or remedied, as the case may be, by
and at the expense of the Bidder. Any such condemned material or
equipment shall be immediately removed from the site of the Project
by the Bidder at the Bidder's expense. The Bidder shall not be
entitled to any payment hereunder so long as any defective
materials, equipment or workmanship in respect to the Project, of
which the Bidder shall have had notice, shall not have been replaced
or remedied, as the case may be.
b. Notwithstanding any certificate which may have been given by
the Owner or the Engineer, if any materials, equipment (except
owner-furnished materials) or any workmanship which does not comply
with the requirements of this Contract shall be discovered within
one (1) year after Completion of Construction of the Project, the
Bidder shall replace such defective materials or equipment or remedy
any such defective workmanship within thirty (30) days after notice
in writing of the existence thereof shall have been given by the
Owner. If the Bidder shall be called upon to replace
[[Page 10204]] any defective materials or equipment or to remedy
defective workmanship as herein provided, the Owner, if so requested
by the Bidder shall deenergize that portion of the Project involved
in such work. In the event of failure by the Bidder so to do, the
Owner may replace such defective materials or equipment or remedy
such defective workmanship, as the case maybe, and in such event the
Bidder shall pay to the Owner the cost and expense thereof.
Article III--Payments and Release of Liens
Section 1. Payments to Bidder.
a. Within the first fifteen (15) days of each calendar month,
the Owner shall make partial payment to the Bidder for construction
accomplished during the preceding calendar month on the basis of
completed Construction Units furnished and certified to by the
Bidder, recommended by the Engineer, and approved by the Owner
solely for the purposes of payment: Provided, however, that such
approval shall not be deemed approval of the workmanship or
materials. Only ninety percent (90%) of each such estimate approved
during the construction of the Project shall be paid by the Owner to
the Bidder prior to Completion of the Project: Provided, however,
that at any time after work, which, in the sole determination of the
Engineer, amounts to fifty percent (50%) of the maximum Contract
price has been completed, the Owner may elect, in lieu of paying
ninety percent (90%) of each such subsequent estimate, to pay each
such subsequent estimate in full. Upon completion by the Bidder of
the construction of the Project, the Engineer will prepare an
inventory of the Project showing the total number and character of
Construction Units and, after checking such inventory with the
Bidder, will certify it to the Owner together with a certificate of
the total cost of the construction performed. Upon the approval of
such certificates by the Owner and the Administrator, the Owner
shall make payment to the Bidder of all amounts to which the Bidder
shall be entitled thereunder which shall not have been paid,
provided, however, that such final payment shall be made not later
than ninety (90) days after the date of Completion of Construction
of the Project as specified in the Certificate of Completion, unless
withheld because of the fault of the Bidder.
b. The Bidder shall be paid on the basis of the number of
Construction Units actually installed at the direction of the Owner
shown by the inventory: Provided, however, that the total cost shall
not exceed the maximum Contract price for the construction of the
Project as set forth in the Acceptance, unless such excess shall
have been approved in writing by the Administrator.
c. Notwithstanding the provisions of Section la above, the
Bidder may, by giving written notice thereof to the Owner, elect to
receive payment in full for any Station of the Project upon:
(1) completion of construction of such Station as certified by
the Engineer and approved by the Owner and the Administrator;
(2) submission to the Owner and the Administrator of the
releases of lien and the certificate referred to in Section 2
hereof;
(3) approval by the Owner and the Administrator of the inventory
in respect of such Station; and
(4) submission to the Owner and the Administrator of the consent
in writing by the Surety or Sureties, if any, on the Contractor's
Bond to payment in full for such Station prior to Completion of the
Project. d. Interest at the rate of ________ percent3
(________%) per annum shall be paid by the Owner to the Bidder on
all unpaid balances due on monthly estimates, commencing fifteen
(15) days after the due date; provided the delay in payment beyond
the due date is not caused by any condition within the control of
the Bidder. The due date for purposes of such monthly payment shall
be the fifteenth day of each calendar month provided (1) the Bidder
on or before the fifth day of such month shall have submitted its
certification of Construction Units completed during the preceding
month and (2) the Owner on or before the fifteenth day of such month
shall have approved such certification. If, for reasons not due to
the Bidder's fault, such approval shall not have been given on or
before the fifteenth day of such month, the due date for purposes of
this subsection d shall be the fifteenth day of such month
notwithstanding the absence of the approval of the certification.
\3\The Owner shall insert a rate equal to the lowest ``Prime
Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued.
---------------------------------------------------------------------------
e. Interest at the rate of ------ percent4 (------%) per
annum shall be paid by the Owner to the Bidder on the final payment
for the Project or any completed Station thereof, commencing fifteen
(15) days after the due date. The due date for purposes of such
final payment shall be the date of approval by the Administrator of
all of the documents requiring such approval, as a condition
precedent to the making of final payment, or ninety (90) days after
the date of Completion of Construction of the Project, as specified
in the Certificate of Completion, whichever date is earlier.
\4\See Footnote 3.
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f. No payment shall be due while the Bidder is in default in
respect of any of the provisions of this Contract and the Owner may
withhold from the Bidder the amount of any claim by a third party
against either the Bidder or the Owner based upon an alleged failure
of the Bidder to perform the work hereunder in accordance with the
provisions of this Contract.
Section 2. Release of Liens and Certificate of Contractor. (See
sample RUS Form 224, Waiver and Release of Lien and sample RUS Form
231, Certificate of Contractor.) Upon the completion by the Bidder
of the construction of the Project (or any Station thereof if the
Bidder shall elect to receive payment in full for any Station when
completed as provided above) but prior to final payment to the
Bidder, the Bidder shall deliver to the Owner, in duplicate,
releases of all liens and of rights to claim any lien, in the form
attached hereto from all manufacturers, materialmen, and
subcontractors furnishing services or materials for the Project or
such Station and a certificate in the form attached hereto to the
effect that all labor used on or for the Project or such Station has
been paid and that all such releases have been submitted to the
Owner for approval.
Section 3. Payments to Materialmen and Subcontractors. The
Bidder shall pay each materialman and each subcontractor, if any,
within five (5) days after receipt of any payment from the Owner,
the amount thereof allowed the Bidder for and on account of
materials furnished or construction performed by each materialman or
each subcontractor.
Article IV--Particular Undertakings of the Bidder
Section 1. Protection to Persons and Property. The Bidder shall
at all times take all reasonable precautions for the safety of
employees on the work and of the public, and shall comply with all
applicable provisions of Federal, State, and Municipal safety laws
and building and construction codes, as well as the safety rules and
regulations of the Owner. All machinery and equipment and other
physical hazards shall be guarded in accordance with the ``Manual of
Accident Prevention in Construction'' of the Associated General
Contractors of America unless such instructions are incompatible
with Federal, State, or Municipal laws or regulations.
The following provisions shall not limit the generality of the
above requirements:
a. The Bidder shall at no time and under no circumstances cause
or permit any employee of the Bidder to perform any work upon
energized lines, or upon poles carrying energized lines, unless
otherwise specified in the Notice and Instructions to Bidders.
b. The Bidder shall so conduct the construction of the Project
as to cause the least possible obstruction of public highways.
c. The Bidder shall provide and maintain all such guard lights
and other protection for the public as may be required by applicable
statutes, ordinances and regulations or by local conditions.
d. Temporary water, light, power and other utility service shall
be arranged for by the Bidder for construction purposes at its own
expense.
e. The Bidder shall do all things necessary or expedient to
properly protect any and all adjacent lines, highways and any and
all property of others from damage, and in the event that any such
lines, highways or other property are damaged in the course of
construction of the Project, the Bidder shall at its own expense
restore any or all of such damaged property immediately to as good a
state as before such damage occurred.
f. The Project, from the commencement of work to completion, or
to such earlier date or dates when the Owner may take possession and
control in whole or in part as hereinafter provided shall be under
the charge and control of the Bidder and during such period of
control by the Bidder all risks in connection with the construction
of the Project and the materials to be used therein shall be borne
by the Bidder. The Bidder shall make good and fully repair all
injuries and damages to the Project or any portion thereof under the
control of the Bidder by reason of any act of God or other casualty
or [[Page 10205]] cause whether or not the same shall have occurred
by reason of the Bidder's negligence.
(i) To the maximum extent permitted by law, Bidder shall defend,
indemnify, and hold harmless Owner and Owner's directors, officers,
and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Bidder's employees) and loss, damage to or destruction of
Owner's property or the property of any other person or entity
(including but not limited to Bidder's property) in any manner
arising out of or connected with the Contract, or the materials or
equipment supplied or services performed by Bidder, its
subcontractors and suppliers of any tier. But nothing herein shall
be construed as making Bidder liable for any injury, death, loss,
damage, or destruction caused by the sole negligence of Owner.
(ii) To the maximum extent permitted by law, Bidder shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Bidder, its subcontractors and suppliers of
any tier, and from all losses, demands, and causes of action arising
out of any such lien or claim. Bidder shall promptly discharge or
remove any such lien or claim by bonding, payment, or otherwise and
shall notify Owner promptly when it has done so. If Bidder does not
cause such lien or claim to be discharged or released by payment,
bonding, or otherwise, Owner shall have the right (but shall not be
obligated) to pay all sums necessary to obtain any such discharge or
release and to deduct all amounts so paid from the amount due
Bidder.
(iii) Bidder shall provide to Owner's satisfaction evidence of
Bidder's ability to comply with the indemnification provisions of
subparagraphs i and ii above, which evidence may include but may not
be limited to a bond or liability insurance policy obtained for this
purpose through a licensed surety or insurance company.
g. Any and all excess earth, rock, debris, underbrush and other
useless material shall be removed by the Bidder from the site of the
Project as rapidly as practicable as the work progresses.
h. Upon violation by the Bidder of any of the provisions of this
Section, after written notice of such violation given to the Bidder
by the Engineer or the Owner, the Bidder shall immediately correct
such violation. Upon failure of the Bidder so to do the Owner may
correct such violation at the Bidder's expense: Provided, however,
that the Owner may, if it deems it necessary or advisable, correct
such violation at the Bidder's expense without such prior notice to
the Bidder.
i. The Bidder shall submit to the Owner monthly reports in
duplicate of all accidents, giving such data as may be prescribed by
the Owner.
Section 2. Insurance. The Bidder shall take out and maintain
throughout the contract period insurance of the following types and
minimum amounts:
(a) Workers' compensation and employers' liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to the workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
(b) Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
(c) Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million per person and $1 million per occurrence, and property
damage limits of $1 million for each occurrence. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
The Owner shall have the right at any time to require public
liability insurance and property damage liability insurance greater
than those required in subsection ``b'' and ``c'' of this Section.
In any such event, the additional premium or premiums payable solely
as the result of such additional insurance shall be added to the
Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3. Delivery of Possession and Control to Owner.
a. Upon written request of the Owner the Bidder shall deliver to
the Owner full possession and control of any portion of the Project
provided the Bidder shall have been paid at least ninety percent
(90%) of the cost of construction of such portion. Upon such
delivery of the possession and control of any portion of the Project
to the Owner, the risk and obligations of the Bidder as set forth in
Article IV, Section 1f hereof with respect to such portion of the
Project so delivered to the Owner shall be terminated: Provided,
however, that nothing herein contained shall relieve the Bidder of
any liability with respect to defective materials and workmanship as
contained in Article II, Section 6 hereof.
b. Where the construction of a Station as hereinbefore defined
in Article II, Section lc and Article III, Section 1c shall have
been completed by the Bidder, the Owner agrees, after receipt of a
written request from the Bidder, to accept delivery of possession
and control of such Station upon the issuance by the Engineer of a
written statement that the Station has been inspected and found
acceptable by the Engineer. Upon such delivery of the possession and
control of any such Station to the Owner, the risk and obligations
of the Bidder as set forth in Article IV, Section 1f hereof with
respect to such Station so delivered to the Owner shall be
terminated: Provided, however, that nothing herein contained shall
relieve the Bidder of any liability with respect to defective
materials or workmanship as contained in Article II, Section 6
hereof.
Section 4. Assignment of Guarantees. All guarantees of materials
and workmanship running in favor of the Bidder shall be transferred
and assigned to the Owner prior to the time the Bidder receives
final payment.
Article V--Remedies
Section 1. Completion on Bidder's Default. If default shall be
made by the Bidder or by any subcontractor in the performance of any
of the terms of this Proposal, the Owner, without in any manner
limiting its legal and equitable remedies in the circumstances, may
serve upon the Bidder and the Surety or Sureties, if any, upon the
Contractor's Bond or Bonds a written notice requiring the Bidder to
cause such default to be corrected forthwith. Unless within twenty
(20) days after the service of such notice upon the Bidder such
default shall be corrected or arrangements for the correction
thereof satisfactory, to both the Owner and the Administrator shall
be made by the Bidder or its Surety or Sureties, if any, the Owner
may take over the construction of the Project and prosecute the same
to completion by Contract or otherwise for the account and at the
expense of the Bidder, and the Bidder and its Surety or Sureties, if
any, shall be liable to the Owner for any cost or expense in excess
of the Contract price occasioned thereby. In such event the Owner
may take possession of and utilize, in completing the construction
of the Project, any materials, tools, supplies, equipment,
appliances, and plant belonging to the Bidder or any of its
subcontractors, which may be situated at the site of the Project.
The Owner in such contingency may exercise any rights, claims or
demands which the Bidder may have against third persons in
connection with this Contract and for such purpose the Bidder does
hereby assign, transfer and set over unto the Owner all such rights,
claims and demands.
Section 2. Liquidated Damages. The time of the Completion of
Construction of the Project is of the essence of the Contract.
Should the bidder neglect, refuse or fail to complete the
construction within the time herein agreed upon, after giving effect
to extensions of time, if any, herein provided, then, in that event
and in view of the difficulty of estimating with exactness damages
caused by such delay, the Owner shall have the right to deduct from
and retain out of such moneys [[Page 10206]] which may be then due,
or which may become due and payable to the Bidder the sum of
________ dollars (________) per day for each and every day that such
construction is delayed on its completion beyond the specified time,
as liquidated damages and not as a penalty; if the amount due and to
become due from the Owner to the Bidder is insufficient to pay in
full any such liquidated damages, the Bidder, shall pay to the Owner
the amount necessary to effect such payment in full: Provided,
however, that the owner shall promptly notify the Bidder in writing
of the manner in which the amount retained, deducted or claimed as
liquidated damages was computed.
Section 3. Cumulative Remedies. Every right or remedy herein
conferred upon or reserved to the Owner or the Government or the
Administrator shall be cumulative, shall be in addition to every
right and remedy now or hereafter existing at law or in equity or by
statute and the pursuit of any right or remedy shall not be
construed as an election: Provided, however, that the provisions of
Section 2 of this Article shall be the exclusive measure of damages
for failure by the Bidder to complete the construction of the
Project within the time herein agreed upon.
Article VI--Miscellaneous
Section 1. Definitions.
a. The term ``Administrator'' shall mean the Administrator of
the Rural Utilities Service of the United States of America and his
duly authorized representatives or any other person in whom or
authority in which may be vested the duties and functions which the
Administrator is now authorized by law to perform.
b. The term ``Engineer'' shall mean the engineer employed by the
Owner, with the approval of the Administrator, to provide
engineering services for the Project, and said Engineer's duly
authorized assistants and representatives.
c. The term ``Supervisor'' shall mean the person, if any,
appointed by the Administrator as the representative of the
Government under the provisions of the Loan Contract providing for
such appointment in special cases. The term is limited to such
special representative of the Government, if any, who is responsible
exclusively to the Administrator and does not refer to the Manager
or any other person employed by the Owner and responsible to it.
d. The term ``Project'' shall mean the substations or other
major facilities described in the Plans, Specifications for
Construction, and Construction Drawings.
e. The term ``Completion of Construction'' shall mean full
performance by the Bidder of the Bidder's obligations under the
Contract and all amendments and revisions thereof except the
Bidder's obligations in respect of (1) Releases of Liens and
Certificate of Contractor under Article III, Section 2 hereof, (2)
the inventory referred to in Article III, Section I hereof, and (3)
other final documents. The term ``Completion of the Project'' shall
mean full performance by the Bidder of the Bidder's obligations
under the Contract and all amendments and revisions thereof. The
Certificate of Completion, signed by the Engineer and approved in
writing by the Owner and the Administrator, shall be the sole and
conclusive evidence as to the date of Completion of Construction and
as to the fact of Completion of the Project.
Section 2. Materials and Supplies. In the performance of this
contract there shall be furnished only such unmanufactured articles,
materials, and supplies as have been mined or produced in the United
States, Mexico, or Canada, and only such manufactured articles,
materials, and supplies as have been manufactured in the United
States substantially all from articles, materials, or supplies
mined, produced or manufactured, as the case may be, in the United
States, Mexico, or Canada; provided that other articles, materials,
or supplies may be used in the event and to the extent that the
Administrator shall expressly in writing authorize such use pursuant
to the provisions of the Rural Electrification Act of 1938, being
Title IV of Public Resolution No. 122, 75th Congress, approved June
21, 1938. The Seller agrees to submit to the Purchaser such
certificates with respect to compliance with the foregoing provision
as the Administrator from time to time may require.
Section 3. Patent Infringement. The Bidder shall save harmless
and indemnify the Owner from any and all claims, suits and
proceedings for the infringement of any patent or patents covering
any materials or equipment used in construction of the Project.
Section 4. Permits for Explosives. All permits necessary for the
handling or use of dynamite or other explosives in connection with
the construction of the Project shall be obtained by and at the
expense of the Bidder.
Section 5. Compliance with Statutes and Regulations. The Bidder
shall comply with all applicable statutes, ordinances, rules, and
regulations pertaining to the work. The Bidder acknowledges that it
is familiar with the Rural Electrification Act of 1936, as amended,
the so-called ``Kick-Back'' Statute (48 Stat. 948), and regulations
issued pursuant thereto, and 18 U.S.C. Secs. 287, 1001, as amended.
The Bidder understands that the obligations of the parties hereunder
are subject to the applicable regulations and orders of Governmental
Agencies having jurisdiction in the premises.
Section 6. Equal Opportunity Provisions.
a. Bidder's Representations.
The Bidder represents that:
It has ____, does not have ____, 100 or more employees, and if
it has, that it has ____, has not ____, furnished the Equal
Employment Opportunity-Employers Information Report EEO-1, Standard
Form 100, required of employers with 100 or more employees pursuant
to Executive Order 11246 and Title VII of the Civil Rights Act of
1964.
The Bidder agrees that it will obtain, prior to the award of any
subcontract for more than $10,000 hereunder to a subcontractor with
100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100.
The Bidder agrees that if it has 100 or more employees and has
not submitted a report on Standard Form 100 for the current
reporting year and that if this Contract will amount to more than
$10,000, the Bidder will file such report, as required by law, and
notify the Owner in writing of such filing prior to the Owner's
acceptance of this Proposal.
b. Equal Opportunity Clause. During the performance of this
Contract, the Bidder agrees as follows:
(1) The Bidder will not discriminate against any employee or
applicant for employment because of race, color, religion, sex or
national origin. The Bidder will take affirmative action to ensure
that applicants are employed, and that employees are treated during
employment without regard to their race, color, religion, sex or
national origin. Such action shall include, but not be limited to,
the following: Employment, upgrading, demotion or transfer;
recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection for training,
including apprenticeship. The Bidder agrees to post in conspicuous
places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this Equal
Opportunity Clause.
(2) The Bidder will, in all solicitations or advertisements for
employees placed by or on behalf of the Bidder, state that all
qualified applicants will receive consideration for employment
without regard to race, color, religion, sex or national origin.
(3) The Bidder will send to each labor union or representative
of workers with which it has a collective bargaining agreement or
other contract or understanding, a notice to be provided advising
the said labor union or workers' representatives of the Bidder's
commitments under this section, and shall post copies of the notice
in conspicuous places available to employees and applicants for
employment.
(4) The Bidder will comply with all provisions of Executive
Order 11246 of September 24, 1965, and of the rules, regulations and
relevant orders of the Secretary of Labor.
(5) The Bidder will furnish all information and reports required
by Executive Order 11246 of September 24, 1965, and by rules,
regulations and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations and orders.
(6) In the event of the Bidder's noncompliance with the Equal
Opportunity Clause of this Contract or with any of the said rules,
regulations or orders, this Contract may be cancelled, terminated or
suspended in whole or in part and the Bidder may be declared
ineligible for further Government contracts or federally assisted
construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, and such other
sanctions may be imposed and remedies invoked as provided in
Executive Order 11246 of September 24, 1965, or by rule, regulation
or order of the Secretary of Labor, or as otherwise provided by law.
(7) The Bidder will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by the rules,
regulations or orders of the Secretary of Labor
[[Page 10207]] issued pursuant to Section 204 of Executive Order
11246 of September 24, 1965, so that such provisions will be binding
upon each subcontractor or vendor. The Bidder will take such action
with respect to any subcontractor purchase order as the
administering agency may direct as a means of enforcing such
provisions, including sanctions for noncompliance: Provided,
however, That in the event a Bidder becomes involved in, or is
threatened with, litigation with a subcontractor or vendor as a
result of such direction by the administering agency, the Bidder may
request the United States to enter into such litigation to protect
the interests of the United States.
c. Certificate of Nonsegregated Facilities. The Bidder certifies
that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Bidder certifies further that it will not maintain or provide for
its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Bidder agrees that a breach of this
certification is a violation of the Equal Opportunity Clause in this
Contract. As used in this certification, the term ``segregated
facilities'' means any waiting room, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Bidder agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific
time periods) it will obtain identical certifications from proposed
subcontractors prior to the award of subcontracts exceeding $10,000
which are not exempt from the provisions of the Equal Opportunity
Clause, and that it will retain such certifications in its files.
Section 7. Franchises. The Bidder shall be under no obligation
to obtain or assist in obtaining: Any franchises, authorizations,
permits or approvals required to be obtained by the Owner from
Federal, State, County, Municipal or other authorities; or any
agreements between the Owner and third parties with respect to any
matters incident to the construction and operation of the Project.
Section 8. Nonassignment of Contract. The Bidder shall perform
directly and without subcontracting not less than twenty-five per
centum (25%) of the construction of the Project, to be calculated on
the basis of the total Contract price. The Bidder shall not assign
the Contract effected by an acceptance of this Proposal or any
interest in any funds that may be due or become due hereunder or
enter into any contract with any person, firm or corporation for the
performance of the Bidder's obligations hereunder or any part
thereof, without the approval in writing of the Owner and of the
Surety and Sureties, if any, on any bond furnished by the Bidder for
the faithful performance of the Bidder's obligations hereunder. If
the Bidder, with the consent of the Owner and any Surety or Sureties
on the Contractor's Bond or Bonds, shall enter into a subcontract
with any subcontractor for the performance of any part of this
Contract, the Bidder shall be as fully responsible to the Owner and
the Government for the acts and omissions of such subcontractor and
of persons employed by such subcontractor as the Bidder would be for
its own acts and omissions and those of persons directly employed by
it.
Section 9. Extension to Successors and Assigns. Each and all of
the covenants and agreements herein contained shall extend to and be
binding upon the successors and assigns of the parties hereto.
Section 10. Contractor. Upon acceptance of this Proposal, the
successful Bidder shall be the Contractor and all references in the
Proposal to the Bidder shall apply to the Contractor.
Section 11. Approval by the Administrator. No acceptance of this
Proposal shall become effective until approved in writing by the
Administrator: Provided, however, that no obligations shall arise
hereunder unless such approval is given within forty-five (45) days
from the date of acceptance by the Owner.
________ (Bidder)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
Date ________
The Proposal must be signed with the full name of the Bidder. If
the Bidder is a partnership, the Proposal must be signed in the
partnership name by a partner. If the Bidder is a corporation, the
Proposal must be signed in the corporate name by a duly authorized
officer and the corporate seal affixed and attested by the Secretary
of the Corporation.
Specifications for Construction
Section 1. Scope of Work. The work covered by this Proposal
embraces the complete construction of one or more substations or
other major facilities as specified in the Acceptance, any omissions
or discrepancies notwithstanding. All material furnished by the
Bidder shall be new and in conformance with the Specifications for
Construction. All construction work shall be done in a thorough and
workmanlike manner in accordance with the Plans, Specifications for
Construction and Construction Drawings. Deviations from the Plans,
Specifications for Construction, and Construction Drawings shall not
be permitted except upon the written permission of the Owner given
with the approval of the Administrator.
This contract does not include ________ which is to be done by
others.
Section 2. Materials. It is the intent of these specifications
that insofar as materials required are included in the Rural
Utilities Service ``List of Materials Acceptable for use on Systems
of RUS Electrification Borrowers,'' such materials only shall be
used. In the event that any materials are required beyond the scope
of the ``List of Materials Acceptable for use on Systems of RUS
Electrification Borrowers,'' specifications for such materials will
be included on the drawings or in a supplement to these
specifications.
Section 3. Drawings. The Drawings and Specifications
collectively, show the specifications of the material and equipment
shown thereon, and include schedules of conduit, cable and other
items not readily ascertained from the picture drawings. Such
schedules show the quantities, sizes, types and other pertinent
information; method of installation, and construction details are
indicated clearly. The drawings and specifications in the attached
List of Drawings are made a part of these contract Specifications.
Section 4. Description of Construction Units. Each Construction
Unit consists of a complete installation of the designated portion
of a substation or switching station as specified on the drawings,
together with connections to associated equipment. Each Construction
Unit represents all labor and material including necessary
accessories completely installed and tested in satisfactory
operation. Full identification of each Construction Unit and all
necessary specifications of the installation shall be shown on the
drawings. Items of material in each Construction Unit shall be of
the designated size, rating, type, voltage, or other specification
in accordance With the drawings. The bill of material drawing for
each station should contain adequate identification of the
Construction Units under which the material is to be installed and
should show what items of material may be partly or entirely found
in the lists of owner-furnished materials. All items of equipment,
unless otherwise specified, are mounted on a structure which shall
be a Construction Unit of Group A.
Each Construction Unit shall be designated by the letter of the
Group to which it belongs and an identifying number. The same item
of equipment shall carry the same Construction Unit designation in
all the stations. Items of equipment designated by the same
Construction Unit in one station shall be of only one kind as to
voltage, type and other specifications. The bid sheet for each
station shall be prepared separately from other stations and shall
contain all unit prices for Construction Units contained in the
station. It is intended that in all cases the ``Name and Description
of Construction Unit'' column of the Bid Sheets shall contain
sufficient information to identify the Construction Unit.
Additional description to one or more of the Groups may be
provided by the Engineer if deemed necessary to clarify the intent
of these Specifications for Construction.
Group A. Structures. A Construction Unit consists of a
structure, or structures, with bus supports including insulators and
fittings, buses, conductors and overhead ground wires to adjacent
structures within the station, grounding material to connect
equipment with the ground bus, and associated material including
mounting brackets, supports for equipment, clamps and connectors,
all as specified in the drawings. [[Page 10208]]
Group B. Three-Pole Group Operated Air Break Switches. A
Construction Unit consists of one 3-pole group operated air break
switch with all accessories and operating mechanisms as specified in
the drawings.
Group C. Lightning Arresters. A Construction Unit consists of
one single-phase lightning arrester.
Group D. Single Pole Disconnecting Switches. A Construction Unit
consists of one single pole disconnecting or by-pass switch as
specified in the drawings. If a fuse disconnect switch is specified,
the fuse is included with the switch.
Group E. Oil Circuit Breakers. A Construction Unit consists of
one complete three-phase power circuit breaker complete with
supporting frame and control cabinet, unless shown otherwise in the
drawings, mounted as specified in the drawings.
Group F. Oil Circuit Reclosers. A Construction Unit consists of
a complete single-phase or three-phase oil circuit recloser as
specified in the drawings.
Group G. Meters, Relays and Instrument Transformers. A
Construction Unit consists of one meter, relay, potential
transformer or current transformer.
Group H. Transformers. A Construction Unit consists of one power
transformer or one station service transformer either single-phase
or three-phase as specified in the drawings.
Group I. Voltage Regulators. A Construction Unit consists of one
single-phase or three-phase voltage regulator as specified in the
drawings.
Group J. Communications and Supervisory Control Equipment. A
Construction Unit consists of carrier current equipment, microwave,
or other types of communications and supervisory control equipment
as specified in the drawings.
Group K. Conduit and Cable. A Construction Unit consists of the
wire, cable, conduit and accessories necessary to complete the
installation of equipment in accordance with the specifications and
drawings, where such installation has not been included in other
Groups.
Group L. Foundations. A Construction Unit consists of concrete
footings and foundations except for the fence, as specified in the
drawings.
Group M. Site Preparation. A Construction Unit consists of
clearing, grading, drainage work, and surfacing, as specified in the
drawings.
Group N. Fence. A Construction Unit consists of the complete
installation of the fence, gates, etc., as specified in the
drawings.
Group O. Station Grounding. A Construction Unit consists of the
complete ground bus including ground rods, grounding mats or
platforms, except as otherwise provided in other Groups, with
connections to structures, equipment, and fence as specified in the
drawings.
Group P. Building. A Construction Unit consists of a control
building or cabinet, on a foundation of Group L and the facilities
and equipment installed therein as specified in the drawings, except
as otherwise provided in other Groups.
Other Groups. The Engineer shall specify such additional Groups
as may be necessary for the completion of the Project. Description
of these Groups shall be provided by an addition to this Section of
the Specifications for Construction.
________ Station construction Units
Unit No. ________
Name and Description of Construction Unit ________
No. of Units ________
Unit Prices
Labor ________
Materials ________
Labor and Materials ________
Extended Price--Labor and Materials ________
Total Price ________
Acceptance
Subject to the approval of the Administrator, the Owner hereby
accepts the foregoing Proposal of the Bidder, ________ for the
construction of the following substations or other major facilities:
________ Substation, $________
________ $________
The total contract price is $________
________ Owner
By ________ President
________ Secretary
________ Date of Contract
[End of clause]
Sec. 1726.341 Electric system communications and control equipment
contract, RUS Form 786.
The contract form in this section shall be used when required by
this part.
Electric System Communications and Control Equipment Contract
(Including Installation)
Proposal to Furnish, Deliver, and Install Equipment and Materials
To:________ (hereinafter called the ``Purchaser'')
The undersigned (hereinafter called the ``Seller'') hereby
proposes to furnish, deliver, install, align and test the equipment
and materials, (hereinafter called the ``Equipment'') described in
the plans, specifications and drawings (hereinafter called the
``Specifications'') attached hereto identified as ________ and made
a part hereof, and other Attachments identified as ________ and made
a part hereof, for the electric system designated ________, financed
in whole or in part by a loan to the Purchaser by the United States
of America, acting through the Administrator of the Rural Utilities
Service (hereinafter called the ``Administrator'').
The Seller has become informed as to the location and
characteristics of the proposed Equipment and the facilities over
which the Equipment is to perform, has become informed as to the
kind of facilities required before and during the delivery and
installation of the Equipment and has become acquainted with the
labor conditions which would affect the work as well as the
ecological and environmental criteria to be followed. The Seller
agrees that if its Proposal is accepted the following terms and
conditions shall govern.
If, in submitting this Proposal, the Seller has made any change
in the form of Proposal furnished by the Purchaser, the Seller
understands that the Purchaser and the Administrator may evaluate
the effect of such change as they see fit or they may exclude the
Proposal from consideration.
Article I
Section 1. Proposal Price. The Seller will furnish, deliver,
install, align and test the Equipment described in the
Specifications for the following sum:
Total Contract Price $________
Delivery time is ________ calendar days.
Completion time is ________ calendar days.
A detailed price breakdown by locations, showing equipment
pricing and installation pricing, is given in the Attachment
identified as ________ and made a part hereof.
Section 2. Changes. The Purchaser, subject to the approval of
the Administrator,\1\ may from time to time during the performance
of the work make such changes, additions to or subtractions from the
Specification's which are part of the Proposal as conditions may
warrant; provided, however, that, if any change in the work shall
require an extension of time, a reasonable extension will be granted
if the Seller shall make a written request therefor to the purchaser
within ten (10) days after any such change is made and, provided
further, that, if the cost to the Seller shall be increased or
decreased by any such change or addition, the contract price shall
be increased or decreased by the reasonable cost thereof, in
accordance with a contract amendment signed by the Purchaser and the
Seller and approved by the Administrator,\2\ but no claim for
additional compensation for any such change or addition will be
considered unless the Seller shall have made a written request
therefor to the Purchaser prior to the commencement of work in
connection with such change or addition.
\1\As long as the total price of this contract including all
amendments is less than 120 percent of the original contract price
as stated in the acceptance hereto, amendments executed on RUS Form
238 are not subject to the approval of the Administrator. Whenever
an amendment to this contract causes the total amended contract to
exceed 120 percent of the original contract price, that amendment
and all subsequent amendments to this contract shall be made subject
to the approval of the Administrator.
\2\See Footnote 1.
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Section 3. Taxes. The prices herein set forth do not include any
sums which are or may be payable by the Seller or the Purchaser on
account of taxes imposed by any taxing authority upon the sale,
purchase or use of the Equipment or labor of installation. If any
such tax is applicable, the amount thereof shall be stated
separately and added to the Proposal price and paid by the
Purchaser.
Article II--Delivery and Installation
Section 1. Time of Completion. The time of delivery of the
Equipment and of completion of the work is of the essence of this
Contract. The seller will deliver the Equipment within the number of
calendar days specified in Article I, Section 1, after the
Administrator shall have approved this contract in writing and will
prosecute [[Page 10209]] diligently and complete the work within the
number of calendar days specified in Article I, Section 1, after
such approval. The time for such delivery and completion shall be
extended for the period of any reasonable delay due exclusively to
causes beyond the control and without the fault of the Seller,
including, but not limited to, acts of God, fires, strikes, floods,
changes in the Specifications as herein provided, and acts or
omissions of the Purchaser with respect to matters for which the
Purchaser is solely responsible; provided, however, that no delay in
such time for delivery or completion of the work or in the progress
of the work shall result in any liability on the part of the
Purchaser, and provided further that any claim for extension of time
shall be adjusted at the time any such delay occurs or any such
change is made.
Section 2. Supervision and Inspection. The Seller will give
adequate supervision to the work. He will carefully study and
compare all drawings, specifications, and other instructions and
will at once report to the Purchaser any error, inconsistency or
omission which he may discover. The Seller will keep on his work
during its progress a competent superintendent and any necessary
assistants, all satisfactory to the Purchaser. The Superintendent
shall represent the Seller in his absence and all directions given
to him shall be as binding as if given to the Seller. When
requested, such directions shall be confirmed in writing.
Section 3. The Purchaser will make available during installation
a competent representative to coordinate installation activities
with the Seller.
Section 4. Alignment, Inspection and Tests. The Seller shall
adjust and align the Equipment to perform in accordance with the
Specifications and furnish in writing to the Purchaser data to show
the state of adjustment of the Equipment. Immediately upon
completion of the installation and alignment of the Equipment the
Seller shall provide the necessary test equipment and perform the
inspections and tests specified in the Specifications under the
direct supervision of the Purchaser or its Engineer. A competent
representative of the Purchaser or his Engineer will be available to
supervise and witness these tests immediately upon completion of
installation and alignment by the Seller and to determine for the
purchaser that the performance of the equipment meets the
Specifications. Such determination, however, shall not preclude
subsequent rejection pursuant to Section 7 of this Article II. The
Seller shall furnish in writing to the Purchaser the results of all
tests. All Equipment furnished hereunder shall be subject to the
inspection, tests, and approval of the Purchaser and the
Administrator. The Purchaser and the Administrator shall have the
right to inspect all records of the Seller and of any subcontractor
relevant to the installation work. The Seller shall provide all
reasonable facilities necessary for such inspection and tests.
Section 5. If as a result of the tests and measurements set
forth in Section 4 above, the Performance Specifications of the
Equipment cannot be met due to inaccuracies, or inadequacies in the
system data provided in the Specifications, the Purchaser and Seller
shall determine what corrective measures are necessary and whether
these corrections shall be made by the Purchaser or the Seller.
If it is determined that the Seller shall make the corrections,
the Purchaser will reimburse the Seller pursuant to a contract
amendment, subject to the approval of the Administrator,3 for
such reasonable additional expenses for the corrections, realignment
and retesting the Seller is required to perform pursuant to this
amendment.
\3\See Footnote 1.
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Where it is determined that the Purchaser will make the
corrections, the Purchaser will reimburse the Seller pursuant to a
contract amendment, subject to the approval of the
Administrator,4 for such reasonable additional expenses for
realignment and retesting the Seller is required to perform pursuant
to this amendment, including, if necessary, the added expense of
returning to the project, where necessary, for reperforming
alignment and testing.
\4\See Footnote 1.
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Section 6. Employees. The Purchaser shall have the right to
require the removal from the work of any employee of the Seller if
in the judgment of the Purchaser such removal shall be necessary in
order to protect the interest of the Purchaser.
Section 7. Defective Workmanship and Materials. Notwithstanding
the acceptance of workmanship, materials or equipment or the giving
of any certificate with respect to the Completion of the Work, if
during performance hereunder or within one year after completion or
within such longer period as the Equipment or any part thereof may
be guaranteed by the Seller and Manufacturer, the workmanship,
materials or equipment, except as may be otherwise provided in the
Specifications, shall be found to be defective or not in conformity
with the Specifications, the Seller shall remedy or replace at its
expense such workmanship, materials or equipment within thirty (30)
days after notice of the existence thereof shall have been given to
the Seller by the Purchaser.
Article III--Payments and Releases of Liens
Section 1. Payment to Seller.
(a) The Purchaser shall pay the Seller upon the basis of
estimates by the Seller recommended by the supervising engineer, if
any, and approved by the Purchaser of the work completed, the
following percentages of the price of the equipment for each
location set forth in Article I, Section 1, as and if revised: 45%
when 50% of the equipment for each location has been delivered at
the site of the Project; 90% when all the equipment for each
location has been delivered at the site of the Project.
(b) Upon completion of installation of the equipment for each
location, the Purchaser shall pay the Seller 90% of the Total price
for such location.
(c) Upon Completion of the Installation of the Equipment, but
prior to the payment to the Seller of any amount in excess of ninety
percent (90%) of the Total Contract Price, the supervising engineer,
if any, of the Purchaser or the Purchaser shall inspect the work
performed hereunder and if the work shall be found acceptable and
all provisions hereunder fully performed, the supervising engineer,
if any, of the Purchaser shall certify as to that fact and as to the
amount of the balance found to be due to the Seller. Upon acceptance
by the Purchaser, the Purchaser shall pay to the Seller all unpaid
amounts to which the Seller shall be entitled hereunder; provided,
however, such final payments shall be made not later than 120 days
after completion of the work, unless such acceptance by the
Purchaser shall be withheld because of the fault of the Seller.
Section 2. Release of Liens. Upon the Completion of the
Installation of the Equipment by the Seller, but prior to the
payment to the Seller of any amount in excess of ninety percent
(90%) of the Total Contract Price, the Seller will deliver to the
Purchaser, in duplicate, releases of all liens and of rights to
claim any lien from manufacturers, materialmen and subcontractors
who have furnished materials or services for the work and a
certificate by the Seller in a form approved by the Administrator,
to the effect that all labor has been paid and that all such
releases have been submitted to the Purchaser for approval.
In lieu of releases of liens, and if the Administrator shall so
approve, the Seller may deliver to the Purchaser, in duplicate, (1)
a certificate, in a form approved by the Administrator, that all
manufacturers, materialmen and subcontractors who have furnished
materials or services for the Project have been paid in full, and
(2) an agreement to hold the Purchaser harmless against any liens
arising out of the Seller's performance hereunder which may have
been or may be filed against the Purchaser.
Article IV--Particular Undertakings of the Seller
Section 1. Protection to Persons and Property. At all times when
Equipment is being delivered and installed the Seller will exercise
reasonable precautions for the safety of employees on the work and
of the public, and will comply with all applicable provisions of
Federal, State and Municipal safety laws and building and
construction codes. All machine and equipment and other physical
hazards shall be guarded in accordance with the ``Manual of Accident
Prevention in Construction'' of the Associated General Contractors
of America, unless such instructions are incompatible with Federal,
State, or Municipal laws or regulations.
The following provisions shall not limit the generality of the
above requirements:
(a) The Seller will at all times keep the premises free from
accumulations of waste material or rubbish caused by his employees
or work, and at the completion of the work he will remove all
rubbish and all his tools, scaffolding and surplus materials and
will leave his work ``broom clean.''
(b) The Seller will perform work in such manner as to maximize
preservation of aesthetics and conservation of natural resources,
and minimize marring and scarring of the landscape and silting of
streams. There will be no depositing of trash in streams or
waterways. Herbicides, other [[Page 10210]] chemicals or their
containers will not be deposited in or near streams, waterways or
pastures. The Seller will follow, under the general direction of the
Purchaser, the criteria relating to environmental protection as
specified herein by the Purchaser.
(c) The work, from its commencement to completion, or to such
earlier date or dates when the Purchaser may take possession and
control, shall be under the charge and control of the Seller and
during such period of control by the Seller all risks in connection
therewith and the materials to be used therein, whether owned by the
Seller or Purchaser, shall be borne by the Seller. The Seller will
make good and fully repair all injuries and damages to the work or
any portion thereof under the control of the Seller by reasons of
any act of God, or any other casualty or cause whether or not the
same shall have occurred by reason of the Seller's negligence.
(i) To the maximum extent permitted by law, Seller shall defend,
indemnify, and hold harmless Purchaser and Purchaser's directors,
officers, and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Seller's employees) and loss, damage to or destruction of
Purchaser's property or the property of any other person or entity
(including but not limited to Seller's property) in any manner
arising out of or connected with the Contract, or the materials or
equipment supplied or services performed by Seller, its
subcontractors and suppliers of any tier. But nothing herein shall
be construed as making Seller liable for any injury, death, loss,
damage, or destruction caused by the sole negligence of Purchaser.
(ii) To the maximum extent permitted by law, Seller shall
defend, indemnify, and hold harmless Purchaser and Purchaser's
directors, officers, and employees from all liens and claims filed
or asserted against Purchaser, its directors, officers, and
employees, or Purchaser's property or facilities, for services
performed or materials or equipment furnished by Seller, its
subcontractors and suppliers of any tier, and from all losses,
demands, and causes of action arising out of any such lien or claim.
Seller shall promptly discharge or remove any such lien or claim by
bonding, payment, or otherwise and shall notify Purchaser promptly
when it has done so. If Seller does not cause such lien or claim to
be discharged or released by payment, bonding, or otherwise,
Purchaser shall have the right (but shall not be obligated) to pay
all sums necessary to obtain any such discharge or release and to
deduct all amounts so paid from the amount due Seller.
(iii) Seller shall provide to Purchaser's satisfaction evidence
of Seller's ability to comply with the indemnification provisions of
subparagraphs i and ii above, which evidence may include but may not
be limited to a bond or liability insurance policy obtained for this
purpose through a licensed surety or insurance company.
(d) Monthly reports of all accidents will be promptly submitted
by the Seller, giving such data as may be prescribed by the
Purchaser.
Section 2. Delivery of Possession and Control to Purchaser. Upon
written request of the Purchaser, the Seller shall deliver to the
Purchaser full possession and control of any completed location
included in the work, provided the Seller shall have been paid at
least 90% of such Total Location Price. Upon such delivery of the
possession and control of any such location to the Purchaser, the
risks and obligations of the Seller, as set forth in Article IV,
Section 1(b) hereof, with respect to such location shall be
terminated; provided however, that nothing herein contained shall
relieve the Seller of any liability with respect to defective
workmanship or materials as specified in Article II, Section 7,
hereof.
Section 3. Insurance. The Seller shall take out and maintain
throughout the contract period insurance of the following types and
minimum amounts:
(a) Workers' compensation and employers' liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to the workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
(b) Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
(c) Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million per person and $1 million per occurrence, and property
damage limits of $1 million for each occurrence. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
The Purchaser shall have the right at any time to require public
liability insurance and property damage liability insurance greater
than those required in subsection ``b'' and ``c'' of this Section.
In any such event, the additional premium or premiums payable solely
as the result of such additional insurance shall be added to the
Contract price.
The Purchaser shall be named as Additional Insured on all
policies of insurance required in subsections ``b'' and ``c'' of
this Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Purchaser. The Seller
shall furnish the Purchaser a certificate evidencing compliance with
the foregoing requirements which shall provide not less than (30)
days prior written notice to the Purchaser of any cancellation or
material change in the insurance.
Section 4. Purchase of Materials. The Seller shall purchase all
materials and supplies outright and not subject to any conditional
sales agreements, bailment lease or other agreement reserving unto
the Seller any right, title or interest therein. Materials and
Supplies shall become the property of the Purchaser as the Purchaser
makes payments therefor to the Seller in accordance with Article
III, Section 1(a). Unless otherwise specified, all materials shall
be new.
Section 5. Assignment of Guarantees. All guaranties of materials
and workmanship running in favor of the Seller shall be transferred
and assigned to the Purchaser on completion of the work and at such
time as the Seller receives final payment.
Section 6. Patent Infringement. The Seller shall hold harmless
and indemnify the Purchaser from any and all claims, suits, and
proceedings for the infringement of any patent or patents covering
any, equipment, materials, supplies, or installation methods used in
the work. The Seller shall, at its own cost (and Purchaser agrees to
permit Seller to do so) defend any suits which may be instituted by
any, party against the Seller for alleged infringement of patents
relating to the Seller's performance hereunder.
Section 7. Compliance with Statutes and Regulations. The Seller
shall comply with all applicable statutes, ordinances, rules and
regulations pertaining to the work. The Seller acknowledges that it
is familiar with the Rural Electrification Act of 1936, as amended,
the so-called ``Kick-Back'' Statutes (48 Stat. 948), and all
regulations issued pursuant thereto, and 18 U.S.C. Secs. 287,1001 as
amended and the Seller agrees to comply with the provisions of all
of such statutes and regulations.
Article V--Remedies
Section 1. Completion on Seller's Default. If default shall be
made by the Seller or by any subcontractor in the performance of any
of the work hereunder, the Purchaser, without in any manner limiting
its legal and equitable remedies in the circumstances, may serve
upon the Seller and the surety or sureties upon the Seller's Bond or
Bonds, if any, a written notice requiring the Seller to cause such
default to be corrected forthwith. Unless within twenty (20) days
after the service of such notice upon the Seller such default shall
be corrected or arrangements for the correction thereof,
satisfactory to both the Purchaser and the Administrator, shall be
made by the Seller or its surety or sureties, the Purchaser may take
over the performance of the Seller's obligations hereunder and
prosecute the same to completion by contract or otherwise for the
account and at the expense of the Seller, and the Seller and its
surely or sureties shall be liable to the Purchaser for any cost or
expense in excess of the contract price occasioned thereby. In such
event, the purchaser may take possession of and utilize, in
completing the work, any tools, supplies, equipment, appliances and
plant belonging to the Seller which may be situated at the site of
the installation work. The Purchaser, in such contingency, may
exercise any rights, claims [[Page 10211]] or demands which the
Seller may have against third persons in connection herewith and for
such purpose the Seller does hereby assign, transfer and set over
unto the Purchaser all such rights, claims and demands.
Section 2. Enforcement of Remedies by Administrator. The
Administrator may on behalf of the Purchaser exercise any right or
enforce any remedy which the Purchaser may exercise or enforce
hereunder.
Section 3. Cumulative Remedies. Every right or remedy herein
conferred upon or reserved to the Purchaser or the Administrator
shall be cumulative and shall be in addition to every right and
remedy now or hereafter existing at law or in equity or by statute
and the pursuit of any right or remedy shall not be construed as an
election.
Article VI--Miscellaneous
Section 1. Definitions. (a) The contract documents shall consist
of the Proposal and Acceptance, the Contractor's Bond and the
Specifications.
(b) The term ``Completion of Installation'' shall mean full
performance by the Seller of the Seller's obligations under the
Contract and all amendments and revisions thereof, except that it
shall not include the final acceptance tests nor performance of the
Seller's obligations in respect of (i) releases of liens and
Certificate of Seller under Article III, Section 2 hereof, (ii)
other final documents. The term ``Completion of the Work'' shall
mean full performance by the Seller of the Seller's obligations
under the Contract and all amendments and revisions thereof. The
Certificate of Completion signed by the supervising engineer and
approved by the Purchaser or signed by the Purchaser, if the
Purchaser shall not employ an Engineer, and approved in writing by
the Administrator within a reasonable time after completion shall be
conclusive evidence as to the fact of completion and the date
thereof.
Section 2. Materials and Supplies. In the performance of this
contract there shall be furnished only such unmanufactured articles,
materials, and supplies as have been mined or produced in the United
States, Mexico, or Canada, and only such manufactured articles,
materials, and supplies as have been manufactured in the United
States substantially all from articles, materials, or supplies
mined, produced or manufactured, as the case may be, in the United
States, Mexico, or Canada; provided that other articles, materials,
or supplies may be used in the event and to the extent that the
Administrator shall expressly in writing authorize such use pursuant
to the provisions of the Rural Electrification Act of 1938, being
Title IV of Public Resolution No. 122, 75th Congress, approved June
21, 1938. The Seller agrees to submit to the Purchaser such
certificates with respect to compliance with the foregoing provision
as the Administrator from time to time may require.
Section 3. Equal Opportunity Provisions. (a) Seller's
Representations.
The Seller represents that:
It has ____, does not have ____, 100 or more employees, and if
it has, that it has ____, has not ____, furnished the Equal
Employment Opportunity--Employers Information Report EEO-1, Standard
Form 100, required of employers with 100 or more employees pursuant
to Executive Order 11246 and Title VII of the Civil Rights Act of
1964.
The Seller agrees that it will obtain, prior to the award of any
subcontract for more than $10,000 hereunder to a subcontractor with
100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100.
The Seller agrees that if it has 100 or more employees and has
not submitted a report on Standard Form 100 for the current
reporting year and that if this Contract will amount to more than
$10,000 the Seller will file such report, as required by law, and
notify the Purchaser in writing of such filing prior to the
Purchaser's acceptance of this Proposal.
(b) Equal Opportunity Clause. During the performance of this
Contract, the Seller agrees as follows:
(1) The Seller will not discriminate against any employee or
applicant for employment because of race, color, religion, sex or
national origin. The Seller will take affirmative action to ensure
that applicants are employed, and that employees are treated during
employment without regard to their race, color, religion, sex or
national origin. Such action shall include, but not be limited, to
the following: Employment, upgrading, demotion or transfer;
recruitment or recruitment advertising; layoff or termination, rates
of pay or other forms of compensation; and selection for training,
including apprenticeship. The Seller agrees to post in conspicuous
places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this Equal
Opportunity Clause.
(2) The Seller will, in all solicitations or advertisements for
employees placed by or on behalf of the Seller, state that all
qualified applicants will receive consideration for employment
without regard to race, color, religion, sex or national origin.
(3) The Seller will send to each labor union or representative
of workers, with which it has a collective bargaining agreement or
other contract or understanding, a notice to be provided advising
the said labor union or workers' representative of the Seller's
commitments under this section, and shall post copies of the notice
in conspicuous places available to employees and applicants for
employment.
(4) The Seller will comply with all provisions of Executive
Order 11246 of September 24, 1965, and of the rules, regulations,
and relevant orders of the Secretary of Labor.
(5) The Seller will furnish all information and reports required
by Executive Order 11246 of September 21, 1965, and by rules,
regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records, and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations, and orders.
(6) In the event of the Seller's noncompliance with the Equal
Opportunity Clause of this Contract or with any of the said rules,
regulations or orders, this Contract may be cancelled, terminated or
suspended in whole or in part, and the Seller may be declared
ineligible for further Government contracts or federally-assisted
construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, and such other
sanctions may be imposed and remedies invoked as provided in
Executive Order 11246 of September 24, 1965, or by rule, regulation
or order of the Secretary of Labor, or as otherwise provided by law.
(7) The Seller will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by the rules,
regulations, or orders of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor.
The Seller will take such action with respect to any subcontract or
purchase order as the administering agency may direct as a means of
enforcing such provisions, including sanctions for noncompliance:
Provided, however, That in the event a Seller becomes involved in,
or is threatened with, litigation with a subcontractor or vendor as
a result of such direction by the administering agency, the Seller
may request the United States to enter into such litigation to
protect the interests of the United States.
(c) Certificate of Nonsegregated Facilities. The Seller
certifies that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Seller certifies further that it will not maintain or provide for
its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Seller agrees that a breach of this
certification is a violation of the Equal Opportunity Clause in this
Contract. As used in this certification, the term ``segregated
facilities'' means any waiting room, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Seller agrees that (except where it has obtained
identical certificates from proposed subcontractors for specific
time periods) it will obtain identical certifications from proposed
subcontractors prior to the award of subcontracts exceeding $10,000
which are not exempt from the provisions of the Equal Opportunity
Clause, and that it will retain such certifications in its files.
Section 4. Bond. The Seller will furnish to the Purchaser, for a
contract in excess of $100,000 a bond in a penal sum not less than
the Proposal price and in the form attached hereto and with a Surety
or Sureties listed by the United States Treasury Department as
acceptable Sureties. [[Page 10212]]
Section 5. License. The Seller shall comply with all applicable
construction codes.
(a) The Seller warrants that he possesses contractor's license
number ____ issued to him by the State of ____ in which the work is
located, and said license expires on ____, 19____.
(b) The Seller warrants that no license is required in the State
in which the work is located.
(Cross out that subsection which does not apply.)
Section 6. Nonassignment of Contract. The Seller will not assign
the Contract effected by acceptance of this Proposal, or any part
thereof, or enter into any contract with any person, firm or
corporation, for the performance of the Seller's obligations
hereunder or any part hereof, without the approval in writing of the
Purchaser and the Surety or Sureties on the Contractor's Bond or
Bonds, if any; provided, however, the Seller may subcontract the
whole or any part of the installation work to be performed at the
installation site (as distinguished from furnishing and delivery of
equipment and materials). If the Seller, with the consent of the
Purchaser and the Surety or Sureties on the Contractor's Bond or
Bonds, if any, shall enter into any subcontract with any
subcontractor for the Performance of any part of the installation
work to be performed at the installation site, the Seller shall be
as fully responsible to the Purchaser and the United States of
America for the acts and omissions of such subcontractor and of
persons employed by such subcontractor as the Seller would be for
its own acts and omissions and those of persons directly employed by
it.
Section 7. Approval of the Administrator. The acceptance of this
Proposal by the Purchaser shall not create a contract unless such
acceptance shall be approved in writing by the Administrator within
ninety (90) days after the date of the Proposal.
________ Seller
By ________
________ Title
Date of Proposal ________
(If executed by one other than President, Vice-President, a partner
or the individual owner, a power of attorney authorizing execution
should accompany this proposal.)
Acceptance
Subject to the approval of the Administrator, the Purchaser hereby
accepts the Proposal of ________ (Dated ________) for the Equipment
herein described for the Total Base Price of $________ and the
following options for:
Spare Parts $________
Maintenance Tools $________
Test Equipment $________
Other Options: (Describe) $________
Total Contract Price $________
________ Purchaser
By ________ President
Attest ________ Secretary
Date of Acceptance ________
[End of clause]
Sec. 1726.342 Distribution line extension construction contract (labor
and materials), RUS Form 790.
The contract form in this section shall be used when required by
this part.
Distribution Line Extension Construction Contract (Labor and Materials)
Proposal
To: ________ (hereinafter called the ``Owner'').
Article I--General
Section 1--Offer to Construct. The undersigned (hereinafter
called the ``Contractor'') hereby proposes to furnish labor,
materials, and equipment for, and construct for the prices
hereinafter stated, the rural electric project ____--19____ Line
Extensions (hereinafter called ``Project'') in strict accordance
with the Plans, Specifications, and Construction Drawings
hereinafter referred to. The Contractor understands and agrees that
the Project will consist of line extensions and additions and line
changes or similar work usually associated with overhead or
underground distribution system improvement or extension work all
located within the area served or ultimately to be served by the
Owner and that the exact location and scope of individual sections
of the Project (hereinafter called ``Sections'') will be made known
to the Contractor from time to time as provided in Article II,
Section 1 hereof; and provided, however, that the Contractor shall
not be obligated to start construction of any Section unless the
cost of construction of the Section computed on the unit prices of
this Proposal shall amount to at least ____ dollars ($____) and
provided further that the Owner shall be obligated to release to the
Contractor for construction at least one Section pursuant to the
provisions of this Proposal.
Section 2--Additional Projects. From time to time the owner and
the Contractor may enter into negotiations for the performance of
work at prices which may differ from those in the Proposal (such
work being hereinafter called ``Additional Projects''). Except as
may otherwise be agreed upon in writing by the Owner and the
Contractor at the time the supplemental contract for the Additional
Project is negotiated, the provisions of the Contract for the
Project shall apply.
Section 3--Proposal on Unit Basis. The Contractor understands
and agrees that the various Construction Units considered in this
Proposal are defined by symbols and descriptions in this Proposal,
that the Proposal is made on a unit basis, and that the Owner may
specify, as provided in Article II, Section 1 hereof, any number or
combination of Construction Units which the Owner, may deem
necessary for the construction of the Project. If kinds of
Construction Units for which prices are not established in this
Proposal are necessary for the construction of the Project, the
prices of such additional Units shall be as agreed upon in writing
by the Owner and the Contractor prior to the time of installation.
The unit labor prices herein set forth are applicable to work
performed on unenergized lines. Such unit labor prices shall be
increased by ____ (____) percent for all units installed on
energized lines in accordance with instructions of the Owner, as
provided in Article II, Section 1g.
Section 4--Description of Contract. The Specifications and
Construction Drawings set forth in: RUS Form 804, Specifications and
Drawings for 7.2/12.5 kV Line Construction; RUS Form 803,
Specifications and Drawings for 14.4/24.9 kV Line Construction; RUS
Form 806, Specifications and Drawings for Underground Electric
Distribution; as applicable, which by this reference are
incorporated herein, together with the Plans, Proposal and
Acceptance constitute the Contract. The Plans, consisting of maps
and special drawings, and approved modifications in standard
specifications are attached hereto and identified as follows: ____
Section 5--Familiarity with Conditions. The Contractor
acknowledges that it has made a careful examination of the site of
the Project and of the Plans, Specifications and Construction
Drawings, and has become informed as to the location and nature of
the proposed construction, the transportation facilities, the kind
and character of soil and terrain to be encountered, the kind of
equipment, tools, and other facilities required before and during
the construction of the Project and has become acquainted with the
availability status of materials and with the labor conditions which
would effect work on the Project.
Section 6--License. The Contractor warrants that a Contractor's
license is ____ is not ____ required, and if required, it possesses
Contractor's License No. ____ for the State of ____ in which the
Project is located, and said license expires on ____, 19____.
Section 7--Contractor's Resources. The Contractor warrants that
it possesses adequate financial resources for the performance of the
work covered by this Proposal and that it will provide necessary
tools and equipment and a qualified superintendent and other
employees.
Section 8--Changes in Construction. The Contractor agrees to
make such changes in construction previously installed in the
Project by the Contractor as required by the Owner on the following
basis: The cost of labor shall be the reasonable cost thereof as
agreed upon by the Contractor and the Owner but in no event shall it
exceed two (2) times the labor price quoted in the Proposal for the
installation of the unit to be changed. Such compensation shall be
in lieu of any other payment for the installation and removal of the
original unit but shall not include the cost of the installation, if
any, of a new or replacing unit, payment for which shall be made at
the unit price as quoted in the Proposal.
No payment shall be made to the contractor for correcting errors
or omissions on the part of the Contractor which result in
construction not in accordance with the Plans and Specifications.
Section 9--Materials and Equipment. The Contractor agrees to
furnish and use in the construction of the Project under this
Proposal, only such materials and equipment as are included on the
current ``List of [[Page 10213]] Materials Acceptable for Use on
Systems of RUS Electrification Borrowers,'' including revisions
adopted prior to construction.
The Contractor further agrees to furnish and use guy wire with
ASTM Class ____ (Owner to insert A or B) zinc coating.
All leads on equipment such as transformers, reclosers, etc.,
shall be of #6 minimum copper conductivity using ____ (Owner to
insert stranded soft drawn copper or aluminum alloy) conductor. All
conductor ties on insulators shall be of the materials and methods
shown in the following Type Guide Drawings: ____ (Owner to insert
appropriate drawing numbers.)
Ground rods and butt-type grounding plates shall be ____.(Owner
to insert galvanized steel or copper.)
Underground primary cables shall have ____ coated copper neutral
(Owner to insert round or flat.)
The Contractor further agrees to furnish poles, crossarms, and
other timber products, of which the physical characteristics, method
of treatment, type of preservative, instructions on inspection and
general procedure shall be in accordance with RUS standards and
requirements.
Crossarms shall be ____ (Owner to insert Douglas Fir or Southern
Yellow Pine), treated with ____ (Owner to insert type of
preservative.)
The Contractor agrees that the prices for poles, crossarms, and
other timber products set forth herein shall include the cost of
preservative treatment and inspection or insured warranty. The
Contractor further agrees to obtain from the supplier inspection and
treatment reports or insured warranties, for checking against the
delivery timber, and to submit such reports or warranties to the
Owner as one of the prerequisites to monthly and final payments.
Section 10--Owner-Furnished Materials. a. The Contractor
understands and agrees that the Owner may, with approval of the
Contractor, furnish to the Contractor some of the materials and
equipment required for construction of the Project, (hereinafter
called ``Owner-Furnished Materials''). The quantity, type, and value
of Owner-Furnished Materials for each Section shall be as agreed
upon by the Contractor and Owner prior to the start of construction
of each Section of the Project. The Owner shall make such materials
and equipment available to the Contractor as provided in Article II,
Section 1, b, and the Contractor will give to the Owner a receipt in
such form as the Owner shall approve.
b. The value of the completed Construction Units certified to by
the Contractor each month pursuant to Article III, Section 1, a, of
this Proposal shall be reduced by an amount equal to the value of
the Owner-Furnished Materials installed by the Contractor during the
preceding month. Only ninety percent (90%) of the remainder shall be
paid prior to the Completion of the Section. Owner-Furnished
Materials, if any, not required for the Section, shall be returned
to the Owner by the Contractor upon Completion of Construction of
the Section. The value of all Owner-Furnished Materials not
installed in the Section of the Project or returned to the Owner
shall be deducted from the final payment to the Contractor for the
Section.
Section 11--References to Materials. The references in this
Proposal to ``Materials'', except in Article IV, Section 1.f, shall
be understood to mean only materials to be furnished by the
Contractor.
Section 12--Taxes. The unit prices for Construction Units in
this Proposal include provisions for the payment of all monies which
will be payable by the Contractor or the Owner in connection with
construction of the Project on account of taxes imposed by any
taxing authority upon the sale, purchase or use of materials,
supplies or equipment to be incorporated in the Project as part of
such Construction Units. The Contractor agrees to pay all such taxes
except on Owner-Furnished Materials and it is understood that, as to
Owner-Furnished Materials, the values as agreed to by the Owner and
Contractor for such materials include such taxes, if applicable. The
Contractor will furnish to the appropriate taxing authorities all
required information and reports pertaining to materials used on
construction of the Project except as to Owner-Furnished Materials.
Article II--Construction
Section 1--Time and Manner of Work. The Contractor agrees to be
prepared to commence the construction of the Project within fifteen
(15) calendar days after written notice by the Owner of the
acceptance of the Proposal. The Contractor agrees to commence
construction of a Section within ____ (____) days after receipt in
writing from the Owner of the following:
a. Location and number of the various Construction Units
required for construction of the Section (hereinafter called the
``Staking Sheets'').
b. Itemized list including appropriate Unit prices, of the
Owner-Furnished Materials to be used in the construction of the
Section and an authorization by the Owner for the Contractor to
obtain such materials from the Owner's warehouse located at ____.
c. A schedule showing the rate at which construction of the
Section shall proceed and the total number of calendar days
(excluding Sundays) to be allowed for completion; provided, however,
that the required completion time for any Section shall not be less
than ____ (____) days or ____ (____) days per mile of line,
whichever is the greater, which days shall be calendar days
(excluding Sundays). The time of the completion of the Section is of
the essence of the contract to be effected by acceptance of this
Proposal.
d. A statement that all required easements and rights-of-way
have been obtained from the owners of the properties across which
the Section is to be constructed (including tenants who may
reasonably be expected to object to such construction).
e. A statement that all necessary staking has been completed.
f. A statement that all necessary funds for prompt payment for
the construction of the Section will be available.
g. Specific instruction as to location and extent of work to be
performed on energized lines, if any. The Contractor will not be
required to dig holes, set poles, install anchors, install
underground conduit, perform any plowing for the installation of
underground cable, or dig trenches if there are more than six (6)
inches of frost in the ground nor to perform any construction on
such days when in the judgment of the Owner snow, rain, or wind, or
the results of snow, rain, or frost make it impracticable to perform
any operation of construction; provided further that the Contractor
will not perform any plowing for the installation of underground
cable on public roads or highways if there are more than two (2)
inches of frost in the ground. To the extent of the time lost due to
the conditions described herein and approved in writing by the
Owner, the time of completion set out above will be extended. The
time for completion shall be extended for a period of any reasonable
delay (other than a delay resulting from the failure of the
Contractor to secure sufficient labor) which is due exclusively to
causes beyond the control and without the fault of the Contractor
including acts of God, fires, floods, inability to obtain materials,
direction of the Owner to cease construction as herein provided, and
acts or omissions of the Owner with respect to matters for which the
Owner is solely responsible; Provided, however, that no such
extension of time for completion shall be granted the Contractor
unless within ten (10) days after the happening of any event relied
upon by the Contractor for such an extension of time the Contractor
shall have made a request therefor in writing to the Owner, and
provided further that no delay in such time of completion or in the
progress of the work which results from any of the above causes
except acts or omissions of the Owner, shall result in any liability
on the part of the Owner.
Section 2--Changes in Plans, Specifications and Drawings. The
Owner may, from time to time during the progress of the construction
of the Project, make such changes in, additions to, or subtractions
from the Plans, Specifications, and Construction Drawings as
conditions may warrant: Provided, however, that if the cost to the
Contractor shall be materially increased by any such change or
addition, the Owner shall pay the Contractor for the reasonable cost
thereof in accordance with a construction contract amendment signed
by the Owner and the Contractor, but no claim for additional
compensation for any such change or addition will be considered
unless the Contractor shall have made a written request therefor to
the Owner prior to the commencement of work in connection with such
change or addition.
Section 3--Supervision and Inspection. a. The Contractor shall
cause the construction work on the Project to receive constant
supervision by a competent superintendent (hereinafter called the
``Superintendent'') who shall be present at all times during working
hours where construction is being carried on. The Contractor shall
also employ, in connection with the construction of the Project,
capable, experienced, and reliable foremen and such skilled workmen
as may be required for the various classes of work to be performed.
Directions and instructions given to the Superintendent by the Owner
shall be binding upon the Contractor.
b. The Owner reserves the right to require the removal from the
Project of any employee [[Page 10214]] of the Contractor if in the
judgment of the Owner such removal shall be necessary in order to
protect the interest of the Owner. The Owner shall have the right to
require the Contractor to increase the number of his employees and
to increase or change the amount or kinds of tools and equipment if
at any time the progress of the work shall be unsatisfactory to the
Owner; but the failure of the Owner to give any such directions
shall not relieve the Contractor of his obligations to complete the
work within the time and in the manner specified in this Proposal.
c. The manner of construction of the Project and all materials
and equipment used therein, shall be subject to the inspection,
tests, and approval of the Owner. The Owner shall have the right to
inspect all payrolls and other data and records of the Contractor
relevant to the work. The Contractor will provide all reasonable
facilities necessary for such inspection and tests. The Contractor
shall have an authorized agent accompany the inspector when final
inspection is made and, if requested by the Owner, when any other
inspection is made.
d. In the event that the Owner shall determine that the
construction contains or may contain numerous defects, it shall be
the duty of the Contractor, if requested by the Owner, to have an
inspection made by an engineer approved by the Owner for the purpose
of determining the exact nature, extent, and location of such
defects.
Section 4--Defective Materials and Workmanship. a. The
acceptance of any materials, equipment (except owner-furnished
materials) or any workmanship by the Owner shall not preclude the
subsequent rejection thereof if such materials, equipment, or
workmanship shall be found to be defective after delivery or
installation, and any such materials, equipment or workmanship found
defective before final acceptance of the construction shall be
replaced or remedied, as the case may be, by and at the expense of
the Contractor. Any such condemned material or equipment shall be
immediately removed from the site of the Project by the Contractor
at the Contractor's expense. The Contractor shall not be entitled to
any payment hereunder so long as any defective materials, equipment
or workmanship in respect to the Project, of which the Contractor
shall have had notice, shall not have been replaced or remedied, as
the case may be.
b. Notwithstanding any certificate which may have been given by
the Owner, if any materials, equipment (except owner-furnished
materials) or any workmanship which does not comply with the
requirements of this Contract shall be discovered within one (1)
year after Completion of Construction of the Project, the Contractor
shall replace such defective materials or equipment or remedy any
such defective workmanship within thirty (30) days after notice in
writing of the existence thereof shall have been given by the Owner.
If the Contractor shall be called upon to replace any defective
materials or equipment or to remedy defective workmanship as herein
provided, the Owner, if so requested by the Contractor shall
deenergize that section of the Project involved in such work. In the
event of failure by the Contractor to do so, the Owner may replace
such defective materials or equipment or remedy such defective
workmanship, as the case may be, and in such event the Contractor
shall pay to the Owner the cost and expense thereof.
Section 5--Materials Removed. The Contractor will return to the
Owner or reuse in the construction of other assembly units all
materials removed from the lines under Section H--Conversion
Assembly Units and Section I--Removal Assembly Units. Upon
completion of each Section of the Project the Contractor will return
to the Owner all materials, including usable materials as well as
scrap, furnished by the Owner in excess of those required for the
construction of the Section as determined from the Final Inventory
approved by the Owner. The Contractor will reimburse the Owner at
the current invoice cost to the Owner for loss and for breakage
through Contractor's negligence of materials furnished by the Owner
to the Contractor and for materials removed from the lines by the
Contractor.
Section 6--Term of Contract. It is understood and agreed that,
notwithstanding any other provisions of this Contract, the
Contractor will not be required to commence any construction after
the expiration of one year ____, two years ____ following acceptance
of this Proposal by the Owner.
Article III--Payment
Section 1--Payments to Contractor. a. Within the first fifteen
(15), days of each calendar month, the Owner shall make partial
payment to the Contractor for construction accomplished during the
preceding calendar month on the basis of completed Construction
Units furnished and certified to by the Contractor and approved by
the Owner solely for the purpose of payment: Provided, however, that
such approval by the Owner shall not be deemed approval of the
workmanship or materials. Only ninety percent (90%) of each such
estimate approved during the construction of a Section shall be paid
by the Owner to the Contractor prior to completion of the Section.
Upon completion by the Contractor of the construction of a Section,
the Contractor will prepare a Final Inventory of the Section showing
the total number and character of Construction Units and, will
certify it to the Owner together with a certificate of the total
cost of the construction performed. Upon the approval of such
certificates, the Owner shall make payment to the Contractor of all
amounts to which the Contractor shall be entitled thereunder which
shall not have been paid.
b. The Contractor shall be paid on the basis of the number of
Construction Units actually installed at the direction of the Owner,
as shown by the Inventory based on the Staking Sheets: Provided,
however, that the total cost shall not exceed the maximum Contract
price for the construction of the Project, unless such excess shall
have been approved in writing by the Owner. It is understood and
agreed that this maximum Contract price is ____ dollars ($____). It
is also agreed that the Contractor shall not be entitled to any
claim for damages on account of any reasonable additions to or
subtractions from the Project, or of any delay occasioned thereby,
or of any changes in the routing of the lines.
c. No payment shall be due while the Contractor is in default in
respect of any of the provisions of this Contract and the Owner may
withhold from the Contractor the amount of any claim by a third
party against either the Contractor the Owner based upon an alleged
failure of the Contractor to perform the work hereunder in
accordance with the provisions of this Contract.
Section 2--Certificate of Contractor and Indemnity Agreement--
Line Extensions. Upon the completion of Construction of any Section
of the Project but prior to payment to the Contractor of any amount
in excess of 90 percent (90%) of the total cost of all Construction
Units comprising the completed Section, the Contractor shall deliver
to the Owner in the form attached hereto, (1) a certificate that all
persons who have furnished labor in connection with the Project and
all manufacturers, materialmen, and subcontractors who have
furnished materials or services for the Project have been paid in
full, and (2) an agreement to hold the Owner harmless against any
liens arising out of the Contractor's performance hereunder which
may have been or may be filed against the Owner.
Article IV--Particular Undertakings of the Contractor
Section 1--Protection to Persons and Property. The Contractor
shall at all times take all reasonable precautions for the safety of
employees on the work and of the public, and shall comply with all
applicable provisions of Federal, State, and Municipal safety laws
and building and construction codes, as well as the safety rules and
regulations of the Owner. All machinery and equipment and other
physical hazards shall be guarded in accordance with the ``Manual of
Accident Prevention in Construction'' of the Associated General
Contractors of America unless such instructions are incompatible
with Federal, State, or Municipal laws or regulations.
The following provisions shall not limit the generality of the
above requirements:
a. The Contractor shall at no time and under no circumstances
cause or permit any employee of the Contractor to perform any work
upon energized lines, or upon poles carrying energized lines, unless
otherwise specified in accordance with Article II, Section 1,
subsection g.
b. The Contractor shall so conduct the construction of the
Project as to cause the least possible obstruction of public
highways.
c. The Contractor shall provide and maintain all such guard
lights and other protection for the public as may be required by
applicable statutes, ordinances, and regulations or by local
conditions.
d. The Contractor shall do all things necessary or expedient to
protect properly any and all parallel, converging, and intersecting
lines, joint line poles, highways, and any and all property of
others from damage, and in the event that any such parallel,
converging and intersecting lines, joint line poles, highways, or
other property are damaged in the course of the construction of the
Project, the Contractor shall at its own expense restore any or all
of such damaged [[Page 10215]] property immediately to as good a
state as before such damage occurred.
e. Where the right-of-way of the Project traverses cultivated
lands, the Contractor shall limit the movement of his crews and
equipment so as to cause as little damage as possible to crops,
orchards, or property and shall endeavor to avoid marring the lands.
All fences which are necessarily opened or moved during the
construction of the Project shall be replaced in as good condition
as they were found and precautions shall be taken to prevent the
escape of livestock. Except as otherwise provided in the
descriptions of underground plowing and trenching assembly units,
the Contractor shall not be responsible for loss of or damage to
crops, orchards, or property (other than livestock) on the right-of-
way necessarily incident to the construction of the Project and not
caused by negligence or inefficient operation of the Contractor. The
Contractor shall be responsible for all other loss of or damage to
crops, orchards, or property, whether on or off the right-of-way,
and for all loss of or damage to livestock caused by the
construction of the Project.
f. The Project, from the commencement of work to completion, or
to such earlier date or dates when the Owner may take possession and
control in whole or in part as hereinafter provided shall be under
the charge and control of the Contractor and during such period of
control by the Contractor all risks in connection with the
construction of the Project and the materials to be used therein
shall be borne by the Contractor. The Contractor shall make good and
fully repair all injuries and damages to the Project or any portion
thereof under the control of the Contractor by reason of any Act of
God or other casualty or cause whether or not the same shall have
occurred by reason of the Contractor's negligence.
(i) To the maximum extent permitted by law, Contractor shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Contractor's employees) and loss, damage to or
destruction of Owner's property or the property of any other person
or entity (including but not limited to Contractor's property) in
any manner arising out of or connected with the Contract, or the
materials or equipment supplied or services performed by Contractor,
its subcontractors and suppliers of any tier. But nothing herein
shall be construed as making Contractor liable for any injury,
death, loss, damage, or destruction caused by the sole negligence of
Owner.
(ii) To the maximum extent permitted by law, Contractor shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Contractor, its subcontractors and suppliers
of any tier, and from all losses, demands, and causes of action
arising out of any such lien or claim. Contractor shall promptly
discharge or remove any such lien or claim by bonding, payment, or
otherwise and shall notify Owner promptly when it has done so. If
Contractor does not cause such lien or claim to be discharged or
released by payment, bonding, or otherwise, Owner shall have the
right (but shall not be obligated) to pay all sums necessary to
obtain any such discharge or release and to deduct all amounts so
paid from the amount due Contractor.
(iii) Contractor shall provide to Owner's satisfaction evidence
of Contractor's ability to comply with the indemnification
provisions of subparagraphs i and ii above, which evidence may
include but may not be limited to a bond or liability insurance
policy obtained for this purpose through a licensed surety or
insurance company.
g. Any and all excess earth, rock, debris, underbrush, and other
useless material shall be removed by the Contractor from the site of
the Project as rapidly as practicable as the work progresses.
h. Upon violation by the Contractor of any provisions of this
section, after written notice of such violation given to the
Contractor by the Owner, the Contractor shall immediately correct
such violation. Upon failure of the Contractor to do so the Owner
may correct such violation at the Contractor's expense.
i. The Contractor shall submit to the Owner monthly reports in
duplicate of all accidents, giving such data as may be prescribed by
the Owner.
j. The Contractor shall not proceed with the cutting of trees or
clearing of right-of-way without written notification from the Owner
that proper authorization has been received from the owner of the
property, and the Contractor shall promptly notify the Owner
whenever any landowner objects to the trimming or felling of any
trees or the performance of any other work on his land in connection
with the Project and shall obtain the consent in writing of the
Owner before proceeding in any such case.
Section 2--Insurance. The Bidder shall take out and maintain
throughout the period of this Agreement the following types and
minimum amounts of insurance:
a. Workers' compensation and employer's liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employee or employee is not subject to workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
b. Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
c. Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million each occurrence, and property damage limits of $1 million
for each occurrence. This required insurance may be in a policy of
policies of insurance, primary and excess including the umbrella or
catastrophe form. The Owner shall have the right at any time to
require public liability insurance and property damage liability
insurance greater than those required in subsection ``b'' and ``c''
of this Section. In any such event, the additional premium or
premiums payable solely as the result of such additional insurance
shall be added to the Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3--Bond. If the estimated cost of the construction of a
Section shall exceed $100,000, the Contractor agrees to furnish
prior to the commencement of such construction, a bond in the penal
sum not less than the estimated cost of such section in the form
attached hereto with a Surety or Sureties listed by the United
States Treasury Department as acceptable sureties. In the event that
the Surety or Sureties on the performance bond delivered to the
Owner shall at any time become unsatisfactory to the Owner, the
Contractor agrees to deliver to the Owner another or an additional
bond.
Section 4--Delivery of Possession and Control to the Owner. Upon
written request of the Owner, the Contractor will deliver to the
Owner full possession and control of any portion of the Project
provided the Contractor shall have been paid at least ninety percent
(90%) of the cost of construction of such portion. Upon such
delivery of possession and control to the Owner, the risks and
obligations of the Contractor as set forth in Section 1f of this
Article IV with respect to such portion so delivered to the Owner,
shall be terminated; Provided, however, that nothing herein
contained shall relieve the Contractor of any liability with respect
to defective workmanship as specified in Article II, Section 4.
Section 5--Purchase of Materials. The Contractor shall purchase
all materials and supplies outright and not subject to any
conditional sales agreement, bailment lease, or other agreement
reserving to the seller any right, title, or interest therein. All
materials and supplies shall become the property of the Owner when
erected in place.
Section 6--Assignment of Guarantees. All guarantees of materials
and workmanship running in favor of the Contractor shall be
transferred and assigned to the Owner on Completion of Construction
and at such times as the Contractor receives final payment.
[[Page 10216]]
Article V--Remedies
Section 1--Completion on Contractor's Default. If default shall
be made by the Contractor or by any subcontractor in the performance
of any of the terms of this Proposal, the Owner, without in any
manner limiting its legal and equitable remedies in the
circumstances, may serve upon the Contractor and the Surety, if any,
a written notice requiring the Contractor to cause such default to
be corrected forthwith. Unless within twenty (20) days after the
service of such notice upon the Contractor and the Surety, if any,
such default shall be corrected or arrangements for the correction
thereof satisfactory to the Owner shall be made, the Owner may take
over the construction of the Project and prosecute the same to
completion by contract or otherwise for the account and at the
expense of the Contractor, and the Contractor shall be liable to the
Owner for any cost or expense in excess of the Contract price
occasioned thereby. In such event the Owner may take possession of
and utilize, in completing the construction of the Project, any
materials, tools, supplies, equipment, appliance, and plant
belonging to the Contractor or any of its subcontractors, which may
be situated at the site of the Project. The Owner in such
contingency may exercise any rights, claims, or demands which the
Contractor may have against third persons in connection with this
Proposal and for such purpose the Contractor does hereby assign,
transfer, and set over unto the Owner all such rights, claims, and
demands.
Article VI--Miscellaneous
Section 1--Patent Infringement. The Contractor will save
harmless and indemnify the Owner from any and all claims, suits, and
proceedings for the infringement of any patent or patents covering
any equipment used in the work.
Section 2. Materials and Supplies. In the performance of this
contract there shall be furnished only such unmanufactured articles,
materials, and supplies as have been mined or produced in the United
States, Mexico, or Canada, and only such manufactured articles,
materials, and supplies as have been manufactured in the United
States substantially all from articles, materials, or supplies
mined, produced or manufactured, as the case may be, in the United
States, Mexico, or Canada; provided that other articles, materials,
or supplies may be used in the event and to the extent that the
Administrator shall expressly in writing authorize such use pursuant
to the provisions of the Rural Electrification Act of 1938, being
Title IV of Public Resolution No. 122, 75th Congress, approved June
21, 1938. The Contractor agrees to submit to the Purchaser such
certificates with respect to compliance with the foregoing provision
as the Administrator from time to time may require.
Section 3--Permits for Explosives. All permits necessary for the
handling or use of dynamite or other explosives in connection with
the construction of the Project shall be obtained by and at the
expense of the Contractor.
Section 4--Compliance with Statutes and Regulations. The
Contractor will comply with all applicable statutes, ordinances,
rules, and regulations pertaining to the work. The Contractor
acknowledges that it is familiar with the Rural Electrification Act
of 1936, as amended, the so-called ``Kick-Back'' Statute (48 Stat.
948), and regulations issued pursuant thereto, and 18 U.S.C.
Secs. 287, 1001, as amended. The Contractor understands that the
obligations of the parties hereunder are subject to the applicable
regulations and orders of Governmental agencies having jurisdiction
in the premises.
Section 5. Equal Opportunity Provisions. a. Contractor's
Representations.
The Contractor represents that:
It has ____, does not have ____, 100 or more employees, and if
it has, that it has ____, has not ____, furnished the Equal
Employment Opportunity--Employers Information Report EEO-1, Standard
Form 100, required of employers with 100 or more employees pursuant
to Executive Order 11246 and Title VII of the Civil Rights Act of
1964. The Contractor agrees that it will obtain, prior to the award
of any subcontract for more than $10,000 hereunder to a
subcontractor with 100 or more employees, a statement, signed by the
proposed subcontractor, that the proposed subcontractor has filed a
current report on Standard Form 100.
The Contractor agrees that if it has 100 or more employees and
has not submitted a report on Standard Form 100 for the current
reporting year and that if this Contract will amount to more than
$10,000, the Contractor will file such report, as required by law,
and notify the Owner in writing of such filing prior to the Owner's
acceptance of this Proposal.
b. Equal Opportunity Clause. During the performance of this
Contract, the Contractor agrees as follows: (1) The Contractor will
not discriminate against any employee or applicant for employment
because of race, color, religion, sex, or national origin. The
Contractor will take affirmative action to ensure that applicants
are employed, and that employees are treated during employment
without regard to their race, color, religion, sex, or national
origin. Such action shall include, but not be limited to, the
following: Employment, upgrading, demotion or transfer; recruitment
or recruitment advertising; layoff or termination; rates of pay or
other forms of compensation; and selection for training, including
apprenticeship. The Contractor agrees to post in conspicuous places,
available to employees and applicants for employment, notices to be
provided setting forth the provisions of this Equal Opportunity
Clause.
(2) The Contractor will, in all solicitations or advertisements
for employees placed by or on behalf of the Contractor, state that
all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, or national origin.
(3) The Contractor will send to each labor union or
representative of workers, with which it has a collective bargaining
agreement or other contract or understanding, a notice to be
provided advising the said labor union or workers' representatives
of the Contractor's commitments under this section, and shall post
copies of the notice in conspicuous places available to employees
and applicants for employment.
(4) The Contractor will comply with all provisions of Executive
Order 11246 of September 24, 1965, and of the rules, regulations,
and relevant orders of the Secretary of Labor.
(5) The Contractor will furnish all information and reports
required by Executive Order 11246 of September 24, 1965, and by
rules, regulations, and orders of the Secretary of Labor, or
pursuant thereto, and will permit access to its books, records, and
accounts by the administering agency and the Secretary of Labor for
purposes of investigation to ascertain compliance with such rules,
regulations, and orders.
(6) In the event of the Contractor's noncompliance with the
Equal Opportunity Clause of this Contract or with any of the said
rules, regulations, or orders, this Contract may be cancelled,
terminated, or suspended in whole or in part, and the Contractor may
be declared ineligible for further Government contracts or federally
assisted construction contracts in accordance with procedures
authorized in Executive Order 11246 of September 24, 1965, and such
other sanctions may be imposed and remedies invoked as provided in
Executive Order 11246 of September 24, 1965, or by rule, regulation,
or order of the Secretary of Labor, or as provided by law.
(7) The Contractor will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by the rules,
regulations, or order of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor.
The Contractor will take such action with respect to any subcontract
or purchase order as the administering agency may direct as a means
of enforcing such provisions, including sanctions for noncompliance:
Provided, however, that in the event a Contractor becomes involved
in, or is threatened with, litigation with a subcontractor or vendor
as a result of such direction by the administering agency, the
Contractor may request the United States to enter into such
litigation to protect the interests of the United States.
c. Certificate of Nonsegregated Facilities. The Contractor
certifies that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Contractor certifies further that it will not maintain or provide
for its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Contractor agrees that a breach of
this certification is a violation of the Equal Opportunity Clause in
this Contract. As used in this certification, the term ``segregated
facilities'' means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or [[Page 10217]] entertainment areas,
transportation, and housing facilities provided for employees which
are segregated by explicit directive or are in fact segregated on
the basis of race, color, religion. or national origin, because of
habit, local custom, or otherwise. The Contractor agrees that
(except where it has obtained identical certifications from proposed
subcontractors for specific time periods) it will obtain identical
certifications from proposed subcontractors prior to the award of
subcontracts exceeding $10,000 which are not exempt from the
provisions of the Equal Opportunity Clause, and that it will retain
such certifications in its files.
Section 6--Franchises and Rights-of-way. The Contractor will be
under no obligation to obtain or assist in obtaining any franchises,
authorizations, permits, or approvals required to be obtained by the
Owner from Federal, State, County, municipal or other authority; any
rights-of-way over private lands or any agreements between the Owner
and third parties with respect to the joint use of poles, crossings
or any other matter incident to the construction and operation of
the Project.
Section 7--Nonassignment of Contract. The Contractor will not
assign the Contract effected by an acceptance of this Proposal or
any part thereof or enter into any contract with any person, firm or
corporation for the performance of the Contractor's obligations
thereunder, or any part thereof, without the approval in writing of
the Owner.
Section 8--Definitions. a. The term ``Owner'' shall also include
an engineer employed by the Owner, or a firm or engineer retained by
the Owner, and designated by the Owner to act in that capacity. The
Contractor will be notified in writing by the Owner of those
designated to act for the Owner at the time of acceptance of this
Proposal.
b. The term ``Completion of Construction'' shall mean full
performance by the Contractor of the Contractor's obligations under
the contract and all amendments and revisions thereof relating to
any Section of the Project or to the Project except the Contractor's
obligations in respect of (i) Certificate of Contractor and
Indemnity Agreement--Line Extensions under Article III, Section 2
hereof and (ii) the Final Inventory referred to in Article III,
Section 1a hereof.
c. The term ``Completion'' shall mean full performance by the
Contractor of the Contractor's obligations under the Contract and
all amendments and revisions thereof relating to any Section of the
Project or to the Project.
Section 9--Extension to Successors and Assigns. Each and all of
the covenants and agreements contained in the Contract effected by
the acceptance of the Proposal shall extend to and be binding upon
the successors and assigns of the parties thereto.
________ (Contractor)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
________ Date of Proposal
This Proposal must be signed with the full name of the
Contractor. If the Contractor is a partnership, the Proposal must be
signed in the partnership name by a partner. If the Contractor is a
corporation, the Proposal must be signed in the corporate name by a
duly authorized officer and the corporate seal affixed and attested
by the Secretary of the Corporation.
Construction Units--New Construction
Section 1--Pole Units
A pole unit consists of one pole in place. It does not include
pole-top assembly unit or other parts attached to the pole. The
first two digits indicate the length of the pole; the third digit
shows the classification per A.S.A. (Example: 25-6 means a pole 25
feet long, class 6.)
Species of Timber: ________
Kind of Preservative: (Check one)
1. Creosote ________; 2. Pentachlorophenol ________; 3. Copper
Naphthenate ________; 4. Waterborne preservative--CCA ________ ACZA
________
Method of Treatment: (Check one)
1. Pressure ________; 2. Thermal process: ________
Pole Plan Under Which the Poles are to be Furnished: (Check one)
1. Insured Warranted ________; 2. Independently Inspected ________;
3. Quality Assured ________; 4. Either Insured
Warranted, Independently Inspected, or Quality Assured ________
(Owner to complete above)
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Section A--Single Phase Pole Top Assembpy Units
Section B--V Phase Pole Top Assembly Units
A pole top assembly unit consists of the hardware, crossarms,
and their appurtenances, insulators, etc., except tie wire, required
to support the primary conductors. It does not include the pole.
Crossarm pins include 2x2x1/8 inch washer, nut, and locknut.
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A
B
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Section C--Three Phase Pole Top Assembly Units
A pole top assembly unit consists of the hardware, crossarms,
and their appurtenances, insulators, etc., except tie wire, required
to support the primary conductors. It does not include the pole.
Crossarm pins include 2x2x1/8 inch washer, nut, and locknut.
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Unit No. Labor &
Labor Materials materials
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C
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Section D--Conductor Assembly Units
A conductor assembly unit consists of 1,000 feet of conductor or
cable for primaries, secondaries or services, and includes tie
wires, sleeves for splicing, connectors, and armor rods with clips
or armor wire where necessary. Tree trimming necessary for
installing services and secondaries on poles not carrying primary
line is included with the conductor assembly unit and shall be
performed in accordance with the directions of the Owner. The
service shall be connected to the secondary or transformer and 2
feet of conductor or cable shall be left for connecting to the
consumer's service entrance. In computing the compensation to the
Contractor for conductor assembly units only the horizontal distance
between conductor supports or pole stakes shall be used. The
conductor or cable sizes and types listed are the manufacturer's
designation.
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D
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Section E--Guy Assembly Units
A guy assembly unit consists of the hardware and wire, and guy
insulator where necessary. An overhead guy assembly consists of an
overhead guy, a pole, and a down guy, each of which is listed
separately. Guy guards are designated separately.
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Labor Materials materials
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E
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Section F--Anchor Assembly Units
An anchor assembly unit consists of the anchor with rod
complete, ready for attaching the guy wire.
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Labor Materials Labor & materials
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F
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Section G--Transformer Assembly Units
A transformer assembly unit consists of the transformer, its
protective equipment, and its hardware and leads with their
connectors and supporting insulators and pins. This unit does not
include the pole top, secondary, service, or grounding assemblies.
[[Page 10218]]
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G
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Section J--Secondary Assembly Units
A secondary assembly unit consists of the hardware, insulators,
etc., to support the secondary conductors or cable. It does not
include the secondary conductor or cable, or any hardware,
insulators, etc., required to support service conductors or cable.
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Labor Materials Labor & materials
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J
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Section K--Service Assembly Units
A service assembly unit consists of the hardware, insulators,
etc., required to support the service conductors or cable. It does
not include the service conductor or cable, or any hardware,
insulators, etc., required to support secondary conductors or cable.
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Labor Materials Labor & materials
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K
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Section M--Miscellaneous Assembly Units
A miscellaneous assembly unit consists of an additional unit
needed in the Project for new line construction but not otherwise
listed in the Proposal. This section includes grounding assemblies
consisting of the conductor, ground rod, grounding plate, connectors
and clamps as shown on the respec tive drawings for the various
types. It also includes fuse cutouts, reclosers, sectionalizers,
switches, capacitors, regulators, metering and other assembly units.
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Unit price
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Labor Materials Labor & materials
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M
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Section R--Right-of-Way Clearing Units
R1-10. The unit is 1,000 feet in length and 10 feet in width (to
be measured on one side of the pole line) of actual clearing of
right-of-way. This includes clearing of underbrush, tree removal,
and such tree trimming as is required so that the right-of-way,
except for tree stumps which shall not exceed ____ in height, shall
be clear from the ground up on one side of the line of poles
carrying primary conductors of the width specified. This unit does
not include clearing or trimming associated with secondaries or
services which is included with conductor units. The length of
actual clearing shall be measured in a straight line parallel to the
horizontal line between stakes and across the maximum dimension of
foliage cleared projected to the ground line. All trees and
underbrush across the width of the right-of-way, as designated by
the Owner, shall be considered to be grouped together as a single
length in measuring the total length of clearing. Spaces along the
right-of-way in which no trees are to be removed or trimmed or
underbrush cleared shall be omitted from the total measurement. All
length thus arrived at, added together and divided by 1,000, shall
give the number of 1,000-foot R1-10 units of clearing. This unit
includes the removal or topping, at the option of the Contractor, of
danger trees outside of the right-of-way when so designated by the
Owner. (Danger trees are defined as dead or leaning trees which, in
falling, will affect the operation of the line.)
The Contractor shall not remove or trim shade, fruit, or
ornamental trees unless so directed by the Owner.
R1-20. This unit is identical with R1-10 except that width is 20
feet (to be measured 10 feet on each side of the pole line).
R1-30. This unit is identical with R1-10 except that width is 30
feet (to be measured 15 feet on each side of the pole line).
R1-40. This unit is identical with R1-10 except that width is 40
feet (to be measured 20 feet on each side of the pole line).
RC1-10, RC1-20, RC1-30, RC1-40. These units are identical to the
respective R1 units except that chemical treatment of stumps is
required in addition to the clearing of underbrush, tree removal and
tree trimming.
Additional Requirements (When specifying R1 units denote type of
disposal (A or B).)
A. Trees, brush, branches and refuse shall, without delay, be
disposed of by such of the following methods as the Owner will
direct (Owner to strike out methods not to be used):
1. Burned.
2. Piled on one side of right-of-way.
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (describe) ____.
B. Trees that are felled shall be cut to commercial wood
lengths, stacked neatly, and left on the right-of-way for the
landowner. Commercial wood length means the length designated by the
Owner but in no case shall it be required to be less than ____
(____) feet. Brush, branches, and refuse shall, without delay, be
disposed of by such of the following methods as the Owner will
direct (Owner to strike out methods not to be used):
1. Burned.
2. Piled on one side of right-of-way.
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (describe) ____.
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R
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Section S--Substation Assembly Units
A substation assembly unit consists of the complete substation
ready for connection of the line conductors, as shown on the
substation drawings attached.
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Unit price
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Labor Materials Labor & materials
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S
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Section UD--Underground Cable Assembly Units
An underground cable assembly unit consists of 1,000 feet of
cable for underground primaries, secondaries or services. It does
not include the conduit, plowing, trenching and backfilling, or the
termination of the primary cable which are provided for in other
assembly units. It includes the termination, connection and sealing
of secondary and service cables and conductors as shown in the
specifications and construction drawings, and all primary, secondary
and service cable splices (buried cable may be spliced only when and
where permitted by the Owner).1,2 In computing the compensation
to the Contractor for underground cable assembly units, only the
distance between stakes, paralleling the cable shall be used. The
number of units so computed will include all cable installed in
place in all specified trenches, risers, conduits, crossings,
manholes, transformers, terminal housings and meter boxes.3)
The conductor or cables listed are the manufacturer's designation of
types, size, voltage rating and material. The Contractor and the
Owner shall jointly perform cable acceptance tests on installed
cable in accordance with the specifications using test equipment
furnished by the ____. (Owner to insert Owner or Contractor.)
\1\____ Owner check here if primary splices are permitted;
\2\____ Owner check here if secondary and service splices are
permitted.
\3\____ Owner check here if 12 feet of service conductor is to
be left as a coil three feet from the building with ends capped
instead of connection to meter box.
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Labor Materials Labor & materials
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UD
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Section UG--Underground Transformer Assembly Units
An underground transformer assembly unit consists of the
transformer, its housing, warning sign, switches, over-current
protective devices, grounding loop, and hardware and leads with
their connectors and supporting insulators installed in place. This
unit includes the cable terminations but does not include lightning
arresters, fault indicators, ground rods or trenching. For
submersible transformers, it includes the cable terminations, the
enclosure and cover, drainable material (when specified4), and
the excavation when required. For pad-mount transformers, it does
not include the pad, site preparation, drainable material,
backfilling or [[Page 10219]] compaction which are included in the
pad assembly units.
\4\____ Owner check here if drainable material is specified.
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UG
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Section UK--Underground Secondary and Service Assembly Units
An underground secondary and service assembly unit consists of
secondary or service cable terminal housing mounted in place. It
includes the power pedestal, stake (when required), mounting
hardware, warning sign, directional marker, housing identification
marking, and the cable identification tags. It does not include the
cable terminations, ground rod, or pad, when required.
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Labor Materials Labor & materials
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UK
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Section UM--Miscellaneous Underground Assembly Units
A miscellaneous underground assembly unit consists of an
additional unit needed in the Project for new construction but not
otherwise listed in the Proposal. This section includes the
miscellaneous assembly units as shown on the respective underground
construction drawings. Where miscellaneous units consist of or
include a primary cable termination, the unit includes the
preparation of the cable to accommodate the termination, the stress
cone and the connection of the cable to the terminal equipment. Pad
assembly units are in this section and include the site preparation,
bedding, drainable material when specified, cable slot, backfilling,
tamping and the pad in place.
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Labor Materials Labor & materials
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UM
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Section UR--Underground Excavation Assembly Units
UR1-S (D) Plowing Assembly Unit, Soil--Consists of one (1)
lineal foot of plowing in soil, measured parallel to the surface of
the ground, to a specified depth (D), in inches, including the
compacting, except as specifically provided for in other units. This
unit includes all material and labor required in the repair and/or
replacement of streets, roads, drives, fences, lawns, shrubbery,
watermains, pipes, pipelines and contents, underground power and
telephone facilities, buried sewerage and drainage facilities, and
any other property damaged during the plowing of the cable, except
as specifically provided for in other units. This unit does not
include underground cable facilities installed in the slot.
Note: Where in the judgment of the Owner greater than normal
difficulty will be involved in plowing because of the presence of
underground facilities of other utilities, this unit will be
suffixed by the letter ``T''. This will be applicable only in those
areas predesignated by the Owner on the detail maps herein. All
plowing outside of the predesignated area on the map, regardless of
the difficulty in placement actually experi- enced, will be
inventoried as the regular UR1-S (D) units. If field conditions show
the existence of rock to prevent the placing of the cable in soil to
the depth required in the specifications the Owner may specify UR2-R
units. Where more than one cable is to be installed in the slot, the
UR1-S unit designation should be modified by a suffix corresponding
to the number of cables installed. For example, UR1-S (D)3c for 3
cables plowed at one time.
UR2-S (D&W) Trenching Assembly Unit, Soil--Consists of one (1)
lineal foot of trenching in soil, measure parallel to the surface of
the ground, to a specified depth (D) and width (W), in inches,
including the excavation, and backfilling and compacting. This unit
includes all material and labor required in the repair and/or
replacement of streets, roads, drives, fences, lawns, shrubbery,
watermains, pipes, pipelines and contents, underground power and
telephone facilities, buried sewerage and drainage facilities, and
any other property damaged by the trenching, except as specifically
provided for in other units. This unit does not include underground
cable facilities installed in the trench or cable bedding assembly
units, when required.
Note: Where in the judgment of the Owner greater than normal
difficulty will be involved in trenching because of the presence of
underground facilities of other utilities, this unit will be
suffixed by the letter ``T''. This will be applicable only in those
areas predesignated by the Owner on the detail maps herein. Where
more than one cable is to be installed in the trench, the regular
UR2-S unit designation should be modified by a suffix corresponding
to the construction drawing for the type of cable placement desired.
UR2-R (D&W) Trenching Assembly Unit, Rock--Consists of one (1)
lineal foot of trenching in rock, measured parallel to the surface
of the ground, to specified depth (D) and width (W), in inches,
including the excavation, and backfilling and compacting to place
cable to the depth specified in the Specifications. This unit will
be specified by the Owner only when field conditions at the site
show the existence of rock at a depth preventing the placing of the
cable in soil to the depths required in the Specifications. This
unit includes all material and labor required in the repair and/or
replacement of streets, roads, drives fences, lawns, shrubbery,
watermains, pipes, pipelines and contents, underground power and
telephone facilities, buried sewerage and drainage facilities, and
any other property damaged by the trenching, except as specifically
provided for in other units. This unit does not include underground
cable facilities installed in the trench or cable bedding assembly
units, when required.
UR-3 Cable Bedding Assembly Unit--Consists of one (1) lineal
foot of a two-inch bed of clean and or soil placed in the trench
under the cable and a four-inch layer of clean sand or soil backfill
over the cable to the width of the trench.
Note: The exact location and number of units shall be determined
by the Owner after the trenches are open in those areas where rock
or other conditions make special bedding necessary.
UR-4a Pavement Assembly Unit, Asphalt--Consists of the labor
and material necessary to remove and restore one (1) lineal foot of
asphalt pavement, measured along the route of the cable, including
any trenching necessary to place the cable at the required depth.
All work shall be performed in accordance with the requirements of
state or local authorities.
UR-4c Pavement Assembly Unit, Concrete--Consists of the labor
and material necessary to remove and restore one (1) lineal foot of
concrete pavement, measured along the route of the cable, including
any trenching necessary to place the cable at the required depth.
All work shall be performed in accordance with the requirements of
state or local authorities.
UR-5 ( ) Underground Pipe Crossing Assembly Unit--Consists of
one (1) lineal foot of steel pipe, of the inside diameter, in
inches, specified in the last digit of the assembly unit
designation, installed in place. This unit includes the pushing of
pipe and any excavation, backfilling and tamping necessary for the
installation of the pipe. The pipe will be installed at the depth
specified by the Owner. Underground cable installed in the pipe is
not included in this unit.
UR-6 Underground Nonpipe Crossing Assembly Unit--Consists of
the labor in providing a hole in soil one (1) foot in length of a
diameter sufficient to accommodate the cable to be installed
therein. The depth of the hole below the surface of the ground shall
be specified by the Owner. This unit includes any excavation,
backfilling and tamping necessary for the installation. This unit
may be used where the permanent installation of a steel pipe under
the UR-5 unit is not required. Underground cable installed in the
hole is not included in this unit.
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UR
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Construction Units--Line Changes
The general heading of Line Changes applies to the changing of
existing lines or portions thereof from their existing phasing, wire
size, and type to new phasing, wire size, and type and the removal
of existing lines or portions thereof and replacing with new lines
in close proximity thereto. In general line changes involve three
types of assembly units as follows:
Section H--Conversion assembly units;
Section I--Removal assembly units;
Section N--New construction assembly units on existing lines or
in replacing lines. [[Page 10220]]
The assembly units that are included in Sections H, I, and N are
defined by symbols and descriptions which follow together with the
applicable descriptions included under New Construction. Where the
descriptions are not correct or sufficiently explicit, or when
special units are not covered by Construction Drawings, descriptions
have been provided by the Owner in the respective sections.
Work included in these sections shall be performed under a
schedule of deenergization and operating procedures as set forth by
the Owner at the time of release of any Section involving work on
existing lines. The Contractor will so plan and perform its work
that it will be possible to safely reenergize all lines involved at
the expiration of the time limits set up in the schedule to resume
service to all consumers being served prior to deenergization. Prior
to commencement of work each day on lines to be deenergized, and
upon completion of work each day on such lines, the Contractor will
notify the Owner thereof in writing or in such other manner as the
circumstances permit.
Section H--Conversion Assembly Units
Conversion assembly units are pole-top assemblies and cover the
furnishing of all labor and additional materials for changing an
existing assembly unit to a new assembly unit, utilizing certain
items of materials of the existing assembly unit on poles to be left
in place. Any materials removed from the existing assembly units
which are not required in the construction of the conversion
assembly unit are to be reused by the Contractor in the construction
of other assembly units, or returned to Owner's warehouse, as
directed by the Owner.
Conversion assembly units are specified by the prefix H with the
new construction assembly unit designation shown first and the
existing assembly unit designation shown last. For example, an H B1-
A1 signifies the conversion of an existing A1 assembly unit to a B1
assembly unit (as was defined in the description of construction
assembly units). In this instance the Contractor utilizes the
existing pin-type insulator, single upset bolt and neutral spool and
furnishes the additional crossarm, crossarm pins, braces, machine
bolt, carriage bolts, lag screw, and insulator required for the new
unit. The Contractor transports the pole-top pin and two machine
bolts to the warehouse or uses them on the Project as directed by
the Owner.
The Conversion assembly units also include the furnishing of all
labor and materials in the transferring, resagging and retying of
conductors from one position on the pole to a different position on
the pole where such transfers are required. Where replacement of
conductor is required, the existing conductor will be removed under
Section I and the new conductor installed under Section N.
Where replacement of a pole is required, the existing pole and
pole-top assembly will be removed under Section I and the new pole
and pole-top assembly will be installed according to Section N and
no H units will be involved.
Conversion assemblies are listed in three subsections for
converting pole-top assemblies from single to V phase, single to
three phase, and V to three phase. The following descriptions apply
to only those conversion units not sufficiently explicit:
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
------------------------------------------------------------------------
Subsection H (B-A)--1 Phase to V Phase
------------------------------------------------------------------------
Unit price
--------------------------------
Unit No. Labor &
Labor Materials materials
------------------------------------------------------------------------
H
------------------------------------------------------------------------
Subsection H (C-A)--1 Phase to 3 Phase
------------------------------------------------------------------------
Unit price
--------------------------------
Unit No. Labor &
Labor Materials materials
------------------------------------------------------------------------
H
------------------------------------------------------------------------
Subsection H (C-B)--V Phase to 3 Phase
------------------------------------------------------------------------
Unit price
--------------------------------
Unit No. Labor &
Labor Materials materials
------------------------------------------------------------------------
H
------------------------------------------------------------------------
Section I--Removal Assembly Units
Removal assembly units cover the furnishing of all labor for the
removal of existing units of construction from existing lines,
disassembling into material items, and all labor and transportation
for the returning of all materials to the warehouse of the Owner in
an orderly manner or transporting elsewhere to the site of the
Project for reuse in the prosecution of this Contract as directed by
the Owner. All materials removed remain the property of the Owner.
The provisions for Owner-Furnished materials in the Proposal shall
apply if such materials are reused for construction of the Project.
The unit removal prices shall include all materials and labor
required to reinstall in accordance with specifications any
conductors temporarily detached. The Contractor will reinstall at
his own expense any other units removed by him for his own
convenience.
The removal units are specified by the prefix I and followed by
the assembly unit designation of existing assembly unit to be
removed. For example, an I-A1 signifies the removal of an A1
assembly unit. The following special notes apply to specific removal
units:
a. Poles. All poles of the same height, regardless of pole
class, are designated by the same unit. Thus an I-30-foot pole
signifies the removal of a 30-foot pole of any class. The Contractor
is not required under this unit to remove from the pole any ground
wire or pole numbering attached to the pole. This unit includes the
refilling and tamping of holes in a workmanlike manner unless they
are to be reused.
b. Pole-top Assemblies. The unit of removal of pole-top
assemblies includes, in addition to the removal of the assembly
itself, any necessary handling, resagging, and retying of conductors
in those cases where an existing pole-top assembly will be removed
and replaced by a new pole-top assembly and where any existing
conductor is to be reused.
The unit of removal of pole-top assemblies also includes any
holding or handling of mainline or tap conductors at tap lines,
angles, and deadends where such is involved, and the reinstalling of
such conductor in accordance with the specifications; for example,
an I-A5-4 will include the disconnection of the tap conductors,
snubbing off the tap line at the nearest practical point and the
reconnection and resagging of these tap conductors if necessary to
the new tap assembly when installed. The new unit of construction,
however, will be specified separately in Section N.
c. Conductor. The conductor removal unit covers the removal of
1,000 feet of conductor or cable and reeling or coiling it in a
workmanlike manner in such a way that it can be reused by the
Contractor or the Owner. The Owner will furnish to the Contractor
reels if it is to be returned to the Owner's warehouse on reels. The
removal unit for each size of conductor or cable is shown by the
prefix I followed by D and the conductor or cable type; thus an I-D
6ACWC signifies the removal unit for 1,000 feet of 6 A Copperweld-
copper conductor.
d. Guys. All guys regardless of length, type of attachment, or
size of guy strand are specified by the same unit; thus an I-E
signifies the removal of any guy.
e. Anchors. Only anchor rods are to be removed by the Contractor
in anchor removal units. The anchors will be left in the ground;
thus an I-F signifies the removal of any anchor rod. If the rod
cannot be unscrewed, the end of the rod shall either be cut off or
bent down so that the rod will be at least 18 inches below ground.
f. Transformers. The unit for removal of transformer assembly
units is divided into two sections, (1) Conventional Transformer
Assembly, and (2) Self-protected Transformer Assembly. Only one unit
is specified for each type, and all sizes of transformers from 1 to
15 kVA within each group will be covered by the same unit. ``Self-
protected'' refers to transformers where all protective equipment is
mounted on or within the transformer. ``Conventional'' refers to
transformers where protective equipment is mounted separately from
the transformer. The unit is designated by the prefix I followed by
the description of the unit to be removed; thus I-G Conventional
signifies the removal of a conventional transformer assembly for any
size transformer from 1 to 15 kVA.
g. Secondary Units. The unit for removal of secondary assemblies
includes, in addition to the removal of the assembly itself, all
necessary handling such as untying, resagging, and retying of
secondary conductor or cables where existing secondary conductor or
cable is to be reused. In addition, the unit for removal of the
secondary assembly includes the handling or holding of any conductor
at tap lines where such is involved, and the reinstalling of such
tap conductor in accordance with the specifications. [[Page 10221]]
h. Service Unit. The unit for removal of service assemblies
includes, in addition to the removal of the assembly itself, all
necessary handling such as untying, resagging, and retying of
service conductor or cable where existing service conductor or cable
is to be reused.
The following descriptions apply only to those removal units not
sufficiently explicit:
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Unit No. Unit labor price
------------------------------------------------------------------------
I
------------------------------------------------------------------------
Section N--New Assembly Units
The purpose of this section is to list complete new units of
construction where such units are to be added to existing lines or
installed in replacing lines.
The units as covered by this section are the same as the units
described in Construction Units--New Construction, except that these
units are prefixed by the letter N.
For example, an N40-6 unit covers the furnishing of all material
and labor for the installation of a 40-6 pole either in an existing
distribution line being operated by the Owner or in a new line being
constructed to replace an existing distribution line being operated
by the Owner.
The following descriptions apply only to those new units not
sufficiently explicit:
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Unit price
--------------------------------
Unit No. Labor &
Labor Materials materials
------------------------------------------------------------------------
N
------------------------------------------------------------------------
Acceptance
The undersigned hereby accepts the foregoing Proposal of
________, dated ________, to construct the rural electric Project
________ 19____ Line Extensions.
________ (Owner)
By ________ (President)
________ Secretary
________ Date of Contract
[End of clause]
Sec. 1726.343 Distribution line extension construction contract (labor
only), RUS Form 792.
The contract form in this section shall be used when required by
this part.
Distribution Line Extension Construction Contract (Labor Only)
Proposal
To: ________ (hereinafter called the ``Owner'').
Article I--General
Section 1--Offer to Construct. The undersigned (hereinafter
called the ``Contractor'') hereby proposes to construct for the
prices hereinafter stated, with materials furnished by the Owner,
the rural electric project ________, 19____ Line Extensions
(hereinafter called ``Project'') in strict accordance with the
Plans, Specifications, and Construction Drawings hereinafter
referred to. The Contractor understands and agrees that the Project
will consist of line extensions and additions and line changes or
similar work usually associated with overhead or underground
distribution system improvement or extension work all located within
the area served or ultimately to be served by the Owner and that the
exact location and scope of individual sections of the Project
(hereinafter called ``Sections'') will be made known to the
Contractor from time to time as provided in Article II, Section 1
hereof; and provided, however, that the Contractor shall not be
obligated to start construction of any Section unless the cost of
construction of the Section computed on the unit prices of this
Proposal shall amount to at least ________ dollars ($________) and
provided further that the Owner shall be obligated to release to the
Contractor for construction at least one Section pursuant to the
provisions of this Proposal.
Section 2--Additional Projects. From time to time the Owner and
the Contractor may enter into negotiations for the performance of
work at labor prices which may differ from those in the Proposal
(such work being hereinafter called ``Additional Projects''). Except
as may otherwise be agreed upon in writing by the Owner and the
Contractor at the time the supplemental contract for the Additional
Project is negotiated, the provisions of the Contract for the
Project shall apply.
Section 3--Proposal on Unit Basis. The Contractor understands
and agrees that the various Construction Units considered in this
Proposal are defined by symbols and descriptions in this Proposal,
that the Proposal is made on a unit basis, and that the Owner may
specify, as provided in Article II, Section 1 hereof, any number or
combination of Construction Units which the Owner, may deem
necessary for the construction of the Project. If kinds of
Construction Units for which prices are not established in this
Proposal are necessary for the construction of the Project, the
prices of such additional Units shall be as agreed upon in writing
by the Owner and the Contractor prior to the time of installation.
The unit prices herein set forth are applicable to work performed on
unenergized lines. Such unit prices shall be increased by ________
(________) percent for all units installed on energized lines in
accordance with instructions of the Owner, as provided in Article
II, Section 1g.
Section 4--Description of Contract. The Specifications and
Construction Drawings set forth in: RUS Form 804, Specifications and
Drawings for 7.2/12.5 kV Line Construction; RUS Form 803,
Specifications and Drawings for 14.4/24.9 kV Line Construction; RUS
Form 806, Specifications and Drawings for Underground Electric
Distribution; as applicable, which by this reference are
incorporated herein, together with the Plans, Proposal and
Acceptance constitute the Contract. The Plans, consisting of maps
and special drawings, and approved modifications in standard
specifications are attached hereto and identified as follows:
________
Section 5--Familiarity with Conditions. The Contractor
acknowledges that it has made a careful examination of the site of
the Project and of the Plans, Specifications and Construction
Drawings, and has become informed as to the location and nature of
the proposed construction, the transportation facilities, the kind
and character of soil and terrain to be encountered, the kind of
equipment, tools, and other facilities required before and during
the construction of the Project and has become acquainted with the
availability status of materials to be furnished by the Owner and
with the labor conditions which would affect work on the Project.
Section 6--License. The Contractor warrants that a Contractor's
license is ____ is not ____ required, and if required, it possesses
Contractor's License No. ________ for the State of ________ in which
the Project is located, and said license expires on ________,
19____.
Section 7--Contractor's Resources. The Contractor warrants that
it possesses adequate financial resources for the performance of the
work covered by this Proposal and that it will provide necessary
tools and equipment and a qualified superintendent and other
employees.
Section 8--Changes in Construction. The Contractor agrees to
make such changes in construction previously installed in the
Project by the Contractor as required by the Owner on the following
basis: The cost of labor shall be the reasonable cost thereof as
agreed upon by the Contractor and the Owner but in no event shall it
exceed two (2) times the labor price quoted in the Proposal for the
installation of the unit to be changed. Such compensation shall be
in lieu of any other payment for the installation and removal of the
original unit but shall not include the cost of the installation, if
any, of a new or replacing unit, payment for which shall be made at
the unit price as quoted in the Proposal. No payment shall be made
to the Contractor for correcting errors or omissions on the part of
the Contractor which result in construction not in accordance with
the Plans and Specifications.
Article II--Construction
Section 1--Time and Manner of Work. The Contractor agrees to be
prepared to commence the construction of the Project within fifteen
(15) calendar days after written notice by the Owner of acceptance
of the Proposal. The Contractor agrees to commence construction of a
Section within ________ (________) days after receipt in writing
from the Owner of the following:
a. Location and number of the various Construction Units
required for construction of the Section (hereinafter called the
``Staking Sheets'').
b. Itemized list of the materials required for the construction
of the Section and an authorization by the Owner for the Contractor
to obtain such materials from the Owner's warehouse located at ____.
c. A schedule showing the rate at which construction of the
Section shall proceed and [[Page 10222]] the total number of
calendar days (excluding Sundays) to be allowed for completion;
provided, however, that the required completion time for any Section
shall not be less than ________ (________) days or ________
(________) days per mile of line, whichever is the greater, which
days shall be calendar days (excluding Sundays). The time of the
completion of the Section is of the essence of the contract to be
effected by acceptance of this Proposal.
d. A statement that all required easements and rights-of-way
have been obtained from the owners of the properties across which
the Section is to be constructed (including tenants who may
reasonably be expected to object to such construction).
e. A statement that all necessary staking has been completed.
f. A statement that all necessary funds for prompt payment for
the construction of the Section will be available.
g. Specific instruction as to location and extent of work to be
performed on energized lines, if any. The Contractor will not be
required to dig holes, set poles, install anchors, install
underground conduit, perform any plowing for the installation of
underground cable, or dig trenches if there are more than six (6)
inches of frost in the ground nor to perform any construction on
such days when in the judgment of the Owner snow, rain, or wind or
the results of snow, rain, or frost make it impracticable to perform
any operations of construction; provided further that the contractor
will not perform any plowing for the installation of underground
cable on public roads or highways if there are more than two (2)
inches of frost in the ground. To the extent of the time lost due to
the conditions described herein and approved in writing by the
Owner, the time of completion set out above will be extended. The
time for completion shall be extended for a period of any reasonable
delay (other than a delay resulting from the failure of the
Contractor to secure sufficient labor) which is due exclusively to
causes beyond the control and without the fault of the Contractor
including acts of God, fires, floods, inability to obtain materials,
direction of the Owner to cease construction as herein provided, and
acts or omissions of the Owner with respect to matters for which the
Owner is solely responsible: Provided, however, that no such
extension of time for completion shall be granted the Contractor
unless within ten (10) days after the happening of any event relied
upon by the Contractor for such an extension of time the Contractor
shall have made a written request therefor in writing to the Owner,
and provided further that no delay in such time of completion or in
the progress of the work which results from any of the above causes,
except acts or omissions of the Owner, shall result in any liability
on the part of the Owner.
Section 2--Changes in Plans, Specifications and Drawings. The
Owner may, from time to time during the progress of the construction
of the Project, make such changes in, additions to, or subtractions
from the Plans, Specifications, and Construction Drawings as
conditions may warrant: Provided, however, that if the cost to the
Contractor shall be materially increased by any such change or
addition, the Owner shall pay the Contractor for the reasonable cost
thereof in accordance with a construction contract amendment signed
by the Owner and the Contractor, but no claim for additional
compensation for any such change or addition will be considered
unless the Contractor shall have made a written request therefor to
the Owner prior to the commencement of work in connection with such
change or addition.
Section 3--Supervision and Inspection. a. The Contractor shall
cause the construction work on the Project to receive constant
supervision by a competent superintendent (hereinafter called the
``Superintendent'') who shall be present at all times during working
hours where construction is being carried on. The Contractor shall
also employ, in connection with the construction of the Project,
capable, experienced, and reliable foremen and such skilled workmen
as may be required for the various classes of work to be performed.
Directions and instructions given to the Superintendent by the Owner
shall be binding upon the Contractor.
b. The Owner reserves the right to require the removal from the
Project of any employee of the Contractor if in the judgment of the
Owner such removal shall be necessary in order to protect the
interest of the Owner. The Owner shall have the right to require the
Contractor to increase the number of his employees and to increase
or change the amount or kind of tools and equipment if at any time
the progress of the work shall be unsatisfactory to the Owner; but
the failure of the Owner to give any such directions shall not
relieve the Contractor of his obligations to complete the work
within the time and in the manner specified in this Proposal.
c. The manner of performance of the work, and all equipment used
therein, shall be subject to the inspection, tests, and approval of
the Owner. The Owner shall have the right to inspect all payrolls
and other data and records of the Contractor relevant to the work.
The Contractor will provide all reasonable facilities necessary for
such inspection and tests. The Contractor shall have an authorized
agent accompany the inspector when final inspection is made and, if
requested by the Owner, when any other inspection is made.
d. In the event that the Owner shall determine that the
construction contains or may contain numerous defects, it shall be
the duty of the Contractor, if requested by the Owner, to have an
inspection made by an engineer approved by the Owner for the purpose
of determining the exact nature, extent, and location of such
defects.
Section 4--Defective Workmanship. The acceptance of any
workmanship by the Owner shall not preclude the subsequent rejection
thereof if such workmanship shall be found to be defective after
installation, and any such workmanship found defective before final
acceptance of the work or within one (1) year after completion shall
be remedied or replaced, as the case may be, by and at the expense
of the Contractor. In the event of failure by the Contractor so to
do, the Owner may remedy such defective workmanship and in such
event the Contractor shall pay to the Owner the cost and expense
thereof. The Contractor shall not be entitled to any payment
hereunder so long as any defective workmanship, in respect of the
Project, of which the Contractor shall have had notice, shall not
have been remedied or replaced, as the case may be.
Section 5--Materials. At or prior to the commencement of
construction of each Section, the Owner shall make available to the
Contractor all materials for such Section which the Owner has on
hand, and from time to time as such additional deliveries of
materials, if any, are received by the Owner, the Owner shall make
such materials available to the Contractor: Provided, however, that
the Contractor or his authorized representative will give to the
Owner a receipt in such form as the Owner shall approve for all
materials furnished by the Owner to the Contractor. The Contractor
will return to the Owner or reuse in the construction of other
assembly units all materials removed from the lines under Section
H--Conversion Assembly Units and Section I--Removal Assembly Units.
Upon completion of each Section of the Project the Contractor will
return to the Owner all materials, including usable materials as
well as scrap, furnished by the Owner in excess of those required
for the construction of the Section as determined from the Final
Inventory approved by the Owner. The Contractor will reimburse the
Owner at the current invoice cost to the Owner for loss and for
breakage through Contractor's negligence of materials furnished by
the Owner to the Contractor and for materials removed from the lines
by the Contractor.
Section 6--Term of Contract. It is understood and agreed that,
notwithstanding any other provisions of this Contract, the
Contractor will not be required to commence any construction after
the expiration of 1 year ________, 2 years ________ following
acceptance of this Proposal by the Owner.
Article III--Payment
Section 1--Payments to Contractor. a. Within the first fifteen
(15) days of each calendar month, the Owner shall make partial
payment to the Contractor for construction accomplished during the
preceding calendar month on the basis of completed Construction
Units furnished and certified to by the Contractor and approved by
the Owner solely for the purpose of payment: Provided, however, that
such approval by the Owner shall not be deemed approval of the
workmanship or materials. Only ninety percent (90%) of each such
estimate approved during the construction of a Section shall be paid
by the Owner to the Contractor prior to completion of the Section.
Upon completion by the Contractor of the construction of a Section,
the Contractor will prepare a Final Inventory of the Section showing
the total number and character of Construction Units and, will
certify it to the Owner together with a certificate of the total
cost of the construction performed. Upon the approval of such
certificates, the Owner shall make payment to the Contractor of all
amounts to which the Contractor shall be entitled thereunder which
shall not have been paid. [[Page 10223]]
b. The Contractor shall be paid on the basis of the number of
Construction Units actually installed at the direction of the Owner,
as shown by the Inventory based on the Staking Sheets: Provided,
however, that the total cost shall not exceed the maximum Contract
price for the construction of the Project, unless such excess shall
have been approved in writing by the Owner. It is understood and
agreed that this maximum Contract price is ________ dollars
($________). It is also agreed that the Contractor shall not be
entitled to any claim for damages on account of any reasonable
additions to or subtractions from the Project, or of any delay
occasioned thereby, or of any changes in the routing of the lines.
c. No payment shall be due while the Contractor is in default in
respect of any of the provisions of this Contract and the Owner may
withhold from the Contractor the amount of any claim by a third
party against either the Contractor or the Owner based upon an
alleged failure of the Contractor to perform the work hereunder in
accordance with the provisions of this Contract.
Section 2--Certificate of Contractor and Indemnity Agreement--
Line Extensions. Upon the Completion of Construction of any Section
of the Project but prior to payment to the Contractor of any amount
in excess of ninety percent (90%) of the total cost of all
Construction Units comprising the completed Section, the Contractor
shall deliver to the Owner in the form attached hereto, (1) a
certificate that all persons who have furnished labor in connection
with the Project and subcontractors who have furnished services for
the Project have been paid in full, and (2) an agreement to hold the
Owner harmless against any liens arising out of the Contractor's
performance hereunder which may have been or may be filed against
the Owner.
Article IV--Particular Undertakings of the Contractor
Section 1. Protection to Persons and Property. The Contractor
shall at all times take all reasonable precautions for the safety of
employees on the work and of the public, and shall comply with all
applicable provisions of Federal, State, and Municipal safety laws
and building and construction codes, as well as the safety rules and
regulations of the Owner. All machinery and equipment and other
physical hazards shall be guarded in accordance with the ``Manual of
Accident Prevention in Construction'' of the Associated General
Contractors of America unless such instructions are incompatible
with Federal, State, or Municipal laws or regulations.
The following provisions shall not limit the generality of the
above requirements:
a. The Contractor shall at no time and under no circumstances
cause or permit any employee of the Contractor to perform any work
upon energized lines, or upon poles carrying energized lines, unless
otherwise specified in accordance with Article II, Section 1,
subsection g.
b. The Contractor shall so conduct the construction of the
Project as to cause the least possible obstruction of public
highways.
c. The Contractor shall provide and maintain all such guard
lights and other protection for the public as may be required by
applicable statutes, ordinances, and regulations or by local
conditions.
d. The Contractor shall do all things necessary or expedient to
protect properly any and all parallel, converging, and intersecting
lines, joint line poles, highways, and any and all property of
others from damage, and in the event that any such parallel,
converging and intersecting lines, joint line poles, highways, or
other property are damaged in the course of the construction of the
Project the Contractor shall at its own expense restore any or all
of such damaged property immediately to as good a state as before
such damage occurred.
e. Where the right-of-way of the Project traverses cultivated
lands, the Contractor shall limit the movement of his crews and
equipment so as to cause as little damage as possible to crops,
orchards, or property and shall endeavor to avoid marring the lands.
All fences which are necessarily opened or moved during the
construction of the Project shall be replaced in as good condition
as they were found and precautions shall be taken to prevent the
escape of livestock. Except as otherwise provided in the
descriptions of underground plowing and trenching assembly units,
the Contractor shall not be responsible for loss of or damage to
crops, orchards, or property (other than livestock) on the right-of-
way necessarily incident to the construction of the Project and not
caused by negligence or inefficient operation of the Contractor. The
Contractor shall be responsible for all other loss of or damage to
crops, orchards, or property, whether on or off the right-of-way,
and for all loss of or damage to livestock caused by the
construction of the Project.
f. The Project, from the commencement of work to completion, or
to such earlier date or dates when the Owner may take possession and
control in whole or in part as hereinafter provided shall be under
the charge and control of the Contractor and during such period of
control by the Contractor all risks in connection with the
construction of the Project and the materials to be used therein
shall be borne by the Contractor. The Contractor shall make good and
fully repair all injuries and damages to the Project or any portion
thereof under the control of the Contractor by reason of any act of
God or other casualty or cause whether or not the same shall have
occurred by reason of the Contractor's negligence.
(i) To the maximum extent permitted by law, Contractor shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Contractor's employees) and loss, damage to or
destruction of Owner's property or the property of any other person
or entity (including but not limited to Contractor's property) in
any manner arising out of or connected with the Contract, or the
materials or equipment supplied or services performed by Contractor,
its subcontractors and suppliers of any tier. But nothing herein
shall be construed as making Contractor liable for any injury,
death, loss, damage, or destruction caused by the sole negligence of
Owner.
(ii) To the maximum extent permitted by law, Contractor shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Contractor, its subcontractors and suppliers
of any tier, and from all losses, demands, and causes of action
arising out of any such lien or claim. Contractor shall promptly
discharge or remove any such lien or claim by bonding, payment, or
otherwise and shall notify Owner promptly when it has done so. If
Contractor does not cause such lien or claim to be discharged or
released by payment, bonding, or otherwise, Owner shall have the
right (but shall not be obligated) to pay all sums necessary to
obtain any such discharge or release and to deduct all amounts so
paid from the amount due Contractor.
(iii) Contractor shall provide to Owner's satisfaction evidence
of Contractor's ability to comply with the indemnification
provisions of subparagraphs i and ii above, which evidence may
include but may not be limited to a bond or liability insurance
policy obtained for this purpose through a licensed surety or
insurance company.
g. Any and all excess earth, rock, debris, underbrush, and other
useless material shall be removed by the Contractor from the site of
the Project as rapidly as practicable as the work progresses.
h. Upon violation by the Contractor of any provisions of this
section, after written notice of such violation given to the
Contractor by the Owner, the Contractor shall immediately correct
such violation. Upon failure of the Contractor so to do the Owner
may correct such violation at the Contractor's expense.
i. The Contractor shall submit to the Owner monthly reports in
duplicate of all accidents, giving such data as may be prescribed by
the Owner.
j. The Contractor shall not proceed with the cutting of trees or
clearing of right-of-way without written notification from the Owner
that proper authorization has been received from the owner of the
property, and the Contractor shall promptly notify the Owner
whenever any landowner objects to the trimming or felling of any
trees or the performance of any other work on his land in connection
with the Project and shall obtain the consent in writing of the
Owner before proceeding in any such case.
Section 2--Insurance. The Bidder shall take out and maintain
throughout the period of this Agreement the following types and
minimum amounts of insurance:
a. Workers' compensation and employer's liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as [[Page 10224]] though the employer or employee
were subject to the workers' compensation laws.
b. Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
c. Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million each occurrence, and property damage limits of $1 million
for each occurrence. This required insurance may be in a policy or
policies or insurance, primary and excess including the umbrella or
catastrophe form. The Owner shall have the right at any time to
require public liability insurance and property damage liability
insurance greater than those required in subsection ``b'' and ``c''
of this Section. In any such event, the additional premium or
premiums payable solely as the result of such additional insurance
shall be added to the Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3--Bond. If the estimated cost of the construction of a
Section shall exceed $100,000, the Contractor agrees to furnish
prior to the commencement of such construction, a bond in the penal
sum not less than the estimated cost of such Section in the form
attached hereto with a Surety or Sureties listed by the United
States Treasury Department as acceptable sureties. In the event that
the Surety or Sureties on the performance bond delivered to the
Owner shall at any time become unsatisfactory to the Owner, the
Contractor agrees to deliver to the Owner another or an additional
bond.
Section 4--Delivery of Possession and Control to the Owner. Upon
written request of the Owner, the Contractor will deliver to the
Owner full possession and control of any portion of the Project
provided the Contractor shall have been paid at least ninety percent
(90%) of the cost of construction of such portion. Upon such
delivery of possession and control to the Owner, the risks and
obligations of the Contractor as set forth in Section 1f of this
Article IV with respect to such portion so delivered to the Owner,
shall be terminated; Provided, however, that nothing herein
contained shall relieve the Contractor of any liability with respect
to defective workmanship as specified in Article 11, Section 4.
Article V--Remedies
Section 1--Completion on Contractor's Default. If default shall
be made by the Contractor or by any subcontractor in the performance
of any of the terms of this Proposal, the Owner, without in any
manner limiting its legal and equitable remedies in the
circumstances, may serve upon the Contractor and the Surety, if any,
a written notice requiring the Contractor to cause such default to
be corrected forthwith. Unless within twenty (20) days after the
service of such notice upon the Contractor and the Surety, If any,
such default shall be corrected or arrangements for the correction
thereof satisfactory to the Owner shall be made, the Owner may take
over the construction of the Project and prosecute the same to
completion by contract or otherwise for the account and at the
expense of the Contractor, and the Contractor shall be liable to the
Owner for any cost or expense in excess of the Contract price
occasioned thereby. In such event the Owner may take possession of
and utilize, in completing the construction of the Project, any
materials, tools, supplies, equipment, appliance, and plant
belonging to the Contractor or any of its subcontractors, which may
be situated at the site of the Project. The Owner in such
contingency may exercise any rights, claims, or demands which the
Contractor may have against third persons in connection with this
Proposal and for such purpose the Contractor does hereby assign,
transfer, and set over unto the Owner all such rights, claims, and
demands.
Article VI--Miscellaneous
Section 1--Patent Infringement. The Contractor will save
harmless and indemnify the Owner from any and all claims, suits, and
proceedings for the infringement of any patent or patents covering
any equipment used in the work.
Section 2--Permits for Explosives. All permits necessary for the
handling or use of dynamite or other explosives in connection with
the construction of the Project shall be obtained by and at the
expense of the Contractor.
Section 3--Compliance with Statutes and Regulations. The
Contractor will comply with all applicable statutes, ordinances,
rules, and regulations pertaining to the work. The Contractor
acknowledges that it is familiar with the Rural Electrification Act
of 1936, as amended, the so-called ``Kick-Back'' Statute (48 Stat.
948), and regulations issued pursuant thereto, and 18 U.S.C.
Secs. 287,1001, as amended. The Contractor understands that the
obligations of the parties hereunder are subject to the applicable
regulations and orders of Governmental agencies having jurisdiction
in the premises.
Section 4--Equal Opportunity Provisions. a. Contractor's
Representations.
The Contractor represents that:
It has ____, does not have ____, 100 or more employees, and if
it has, that it has ____, has not ____, furnished the Equal
Employment Opportunity--Employers Information Report EEO-1, Standard
Form 100, required of employers with 100 or more employees pursuant
to Executive Order 11246 and Title VII of the Civil Rights Act of
1964.
The Contractor agrees that it will obtain, prior to the award of
any subcontract for more than $10,000 hereunder to a subcontractor
with 100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100. The Contractor agrees that if it has
100 or more employees and has not submitted a report on Standard
Form 100 for the current reporting year and that if this Contract
will amount to more than $10,000, the Contractor will file such
report, as required by law, and notify the Owner in writing of such
filing prior to the Owner's acceptance of this Proposal.
b. Equal Opportunity Clause. During the performance of this
Contract, the Contractor agrees as follows:
(1) The Contractor will not discriminate against any employee or
applicant for employment because of race, color, religion, sex, or
national origin. The Contractor will take affirmative action to
ensure that applicants are employed, and that employees are treated
during employment without regard to their race, color, religion,
sex, or national origin. Such action shall include, but not be
limited to, the following: Employment, upgrading, demotion or
transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship. The Contractor
agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided setting forth the
provisions of this Equal Opportunity Clause.
(2) The Contractor will, in all solicitations or advertisements
for employees placed by or on behalf of the Contractor, state that
all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, or national origin.
(3) The Contractor will send to each labor union or
representative of workers, with which it has a collective bargaining
agreement or other contract or understanding, a notice to be
provided advising the said labor union or workers' representatives
of the Contractor's commitments under this section, and shall post
copies of the notice in conspicuous places available to employees
and applicants for employment.
(4) The Contractor will comply with all provisions of Executive
Order 11246 of September 24, 1965, and of the rules, regulations,
and relevant orders of the Secretary of Labor.
(5) The Contractor will furnish all information and reports
required by Executive Order 11246 of September 24, 1965, and by
rules, regulations, and orders of the Secretary of Labor, or
pursuant thereto, and will permit access to its books, records, and
accounts by the administering agency and the Secretary of Labor for
purposes of investigation to ascertain compliance with such rules,
regulations, and orders.
(6) In the event of the Contractor's noncompliance with the
Equal Opportunity Clause of this Contract or with any of the said
rules, regulations, or orders, this Contract may be cancelled,
terminated, or suspended in whole or in part, and the Contractor may
be declared ineligible for further Government
[[Page 10225]] contracts or federally assisted construction
contracts in accordance with procedures authorized in Executive
Order 11246 of September 24, 1965, and such other sanctions may be
imposed and remedies invoked as provided in Executive Order 11246 of
September 24, 1965, or by rule, regulation, or order of the
Secretary of Labor, or as provided by law.
(7) The Contractor will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by the rules,
regulations, or order of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor.
The Contractor will take such action with respect to any subcontract
or purchase order as the administering agency may direct as a means
of enforcing such provisions, including sanctions for noncompliance:
Provided, however, That in the event a Contractor becomes involved
in, or is threatened with, litigation with a subcontractor or vendor
as a result of such direction by the administering agency, the
Contractor may request the United States to enter into such
litigation to protect the interests of the United States.
c. Certificate of Nonsegregated Facilities. The Contractor
certifies that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Contractor certifies further that it will not maintain or provide
for its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Contractor agrees that a breach of
this certification is a violation of the Equal Opportunity Clause in
this Contract. As used in this certification, the term ``segregated
facilities'' means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Contractor agrees that (except where it has
obtained identical certifications from proposed subcontractors for
specific time periods) it will obtain identical certifications from
proposed subcontractors prior to the award of subcontracts exceeding
$10,000 which are not exempt from the provisions of the Equal
Opportunity Clause, and that it will retain such certifications in
its files.
Section 5--Franchises and Rights-of-way. The Contractor will be
under no obligation to obtain or assist in obtaining any franchises,
authorizations, permits, or approvals required to be obtained by the
Owner from Federal, State, County, Municipal or other authority; any
rights-of-way over private lands or any agreements between the Owner
and third parties with respect to the joint use of poles, crossing
or any other matter incident to the construction and operation of
the Project.
Section 6--Nonassignment of Contract. The Contractor will not
assign the Contract effected by an acceptance of this Proposal or
any part thereof or enter into any contract with any person, firm or
corporation for the performance of the Contractor's obligations
thereunder, or any part thereof, without the approval in writing of
the Owner.
Section 7--Definitions.
a. The term ``Owner'' shall also include an engineer employed by
the Owner, or a firm or engineer retained by the Owner, and
designated by the Owner to act in that capacity. The Contractor will
be notified in writing by the Owner of those designated to act for
the Owner at the time of acceptance of this Proposal.
b. The term ``Completion of Construction'' shall mean full
performance by the Contractor of the Contractor's obligations under
the contract and all amendments and revisions thereof relating to
any Section of the Project or to the Project except the Contractor's
obligations in respect of (i) Certificate of Contractor and
Indemnity Agreement--Line Extensions under Article III, Section 2
hereof and (ii) the Final Inventory referred to in Article III,
Section 1a hereof.
c. The term ``Completion'' shall mean full performance by the
Contractor of the Contractor's obligations under the Contract and
all amendments and revisions thereof relating to any Section of the
Project or to the Project.
Section 8--Extension to Successors and Assigns. Each and all of
the covenants and agreements contained in the Contract effected by
the acceptance of the Proposal shall extend to and be binding upon
the successors and assigns of the parties thereto.
________ (Contractor)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
________ Date of Proposal
This Proposal must be signed with the full name of the
Contractor. If the Contractor is a partnership, the Proposal must be
signed in the partnership name by a partner. If the Contractor is a
corporation, the Proposal must be signed in the corporate name by a
duly authorized officer and the corporate seal affixed and attested
by the Secretary of the Corporation.
Construction Units--New Construction
Section 1--Pole Units
A pole unit consists of the installation of one pole. The first
two digits indicate the length of the pole; the third digit shows
the classification per A.S.A. (Example: 25-6 means a pole 25 feet
long, class 6.)
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Pole Top Assembly Units
A pole top assembly unit consists of the installation of the
hardware, crossarms and their appurtenances, insulators, etc.,
except tie wire, required to support the primary conductors.
Section A--1 Phase
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Section B--V Phase
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Section C--3 Phase
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Section D--Conductor
A conductor assembly unit consists of the installation of 1,000
feet of conductor or cable for primaries, secondaries or services.
Tree trimming necessary for installing services and secondaries on
poles not carrying primary line is included with the conductor
assembly unit and shall be performed in accordance with the
directions of the Owner. The service shall be connected to the
secondary or transformer and 2 feet of conductor or cable shall be
left for connecting to the consumer's service entrance. In computing
the compensation to the Contractor for conductor assembly units only
the horizontal distance between conductor supports or pole stales
shall be used. The conductor or cable sizes and types listed are the
manufacturer's designation.
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Section E--Guy Assembly Units
A guy assembly unit consists of the installation of the hardware
and wire, and guy insulator where necessary. An overhead guy
assembly unit does not include the associated pole and down guy,
each of which is listed separately. Guy guards are designated
separately.
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Section F--Anchor Assembly Units
An anchor assembly unit consists of the installation of an
anchor with rod complete, ready for attaching the guy wire.
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Section G--Transformer Assembly Units
A transformer assembly unit consists of the installation of the
transformer, its protective equipment and its hardware and leads
with their connectors and supporting insulators and pins. This unit
does not include the installation of the pole top, secondary,
service, or grounding assemblies.
[[Page 10226]]
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Section J--Secondary Assembly Units
A secondary assembly unit consists of the installation of the
hardware, insulators, etc., to support the secondary conductor or
cable. It does not include the installation of the secondary
conductor or cable, or of any hardware, insulators, etc., required
to support service conductors or cable.
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Section K--Service Assembly Units
A service assembly unit consists of the installation of the
hardware, insulators, etc. to support the service conductors or
cable. It does not include the installation of the service conductor
or cable, or of any hardware, insulators etc. required to support
secondary conductors or cable.
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Section M--Miscellaneous Assembly Units
A miscellaneous assembly unit consists of the installation of an
additional unit needed in the Project for new line construction but
not otherwise listed in the Proposal. This section includes the
installation of grounding assemblies, fuse cutouts, reclosers,
sectionalizers, switches, capacitors, regulators, metering and other
assembly units.
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Section R--Right-of-Way Clearing Units
R1-10. The unit is 1,000 feet in length and 10 feet in width (to
be measured on one side of the pole line) of actual clearing of
right-of-way. This includes clearing of underbrush, tree removal,
and such tree trimming as is required so that the right-of-way,
except for tree stumps which shall not exceed ____ in height, shall
be clear from the ground up on one side of the line of poles
carrying primary conductors.
This unit does not include clearing or trimming associated with
secondaries or services which is included with conductor units. The
length of actual clearing shall be measured in a straight line
parallel to the horizontal line between stakes and across the
maximum dimension of foliage cleared projected to the ground line.
All trees and underbrush across the width of the right-of-ways as
designated by the Owner shall be considered to be grouped together
as a single length in measuring the total length of clearing. Spaces
along the right-of-way in which no trees are to be removed or
trimmed or underbrush cleared shall be omitted from the total
measurement. All length thus arrived at, added together and divided
by 1,000, shall give the number of 1,000-foot R1-10 units of
clearing. This unit includes the removal or topping, at the option
of the Contractor, of danger trees outside of the right-of-way when
so designated by the Owner. (Danger trees are defined as dead or
leaning trees which, in falling, will affect the operation of the
line.)
The Contractor shall not remove or trim shade, fruit, or
ornamental trees unless so directed by the Owner.
R1-20. This unit is identical with R1-10 except that width is 20
feet (to be measured 10 feet on each side of the pole line).
R1-30. This unit is identical with R1-10 except that width is 30
feet (to be measured 15 feet on each side of the pole line).
R1-40. This unit is identical with R1-10 except that width is 40
feet (to be measured 20 feet on each side of the pole line).
RC1-10, RC1-20, RC1-30, RC1-40. These units are identical to the
respective R1 units except that chemical treatment of stumps is
required in addition to the clearing of underbrush, tree removal and
tree trimming.
Additional Requirements (When specifying R1 units denote type of
disposal (A or B).)
A. Trees, brush, branches and refuse shall, without delay, be
disposed of by such of the following methods as the Owner will
direct (Owner to strike out methods not to be used):
1. Burned.
2. Piled on one side of right-of-way.
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (describe) ____.
B. Trees that are felled shall be cut to commercial wood
lengths, stacked neatly, and left on the right-of-way for the
landowner. Commercial wood length means the length designated by the
Owner but in no case shall it be required to be less than ____
(____) feet. Brush, branches, and refuse shall, without delay, be
disposed of by such of the following methods as the Owner will
direct (Owner to strike out methods not to be used):
1. Burned.
2. Piled on one side of right-of-way.
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (describe)____.
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Section S--Substation Assembly Units
A substation assembly unit consists of the complete substation
ready for connection of the line conductors, as shown on the
substation drawings attached.
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Section UD--Underground Cable Assembly Units
An underground cable assembly unit consists of the installation
of 1,000 feet of cable for underground primaries, secondaries or
services. It does not include the plowing, trenching and
backfilling, or the termination of the primary cable which are
provided for in other assembly units. It includes the labor for the
termination, connection and sealing of secondary and service cables
and conductors as shown in the specifications and construction
drawings, and the labor for making all primary, secondary and
service cable splices (buried cable may be spliced only when and
where permitted by the Owner1,2.) In computing the compensation
to the Contractor for underground cable assembly units, only the
distance between stakes, paralleling the cable shall be used. The
number of units so computed includes all installation of cable in
all specified trenches, risers, conduits, crossings, manholes,
transformers, terminal housings and meter boxes 3. The
conductor or cables listed are the manufacturer's designation of
types, size, voltage rating and material. The Contractor and the
Owner shall jointly perform cable acceptance tests on installed
cable in accordance with the specifications using test equipment
furnished by the ____ (Owner to insert Owner or Contractor).
\1\ ____ Owner check here if primary splices are permitted.
2 ____ Owner check here if secondary and service splices
are permitted.
\3\ ____ Owner check here if 12 feet of service conductor is to
be left as a coil 3 feet from the building with ends capped instead
of connection to meter box.
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Section UG--Underground Transformer Assembly Units
An underground transformer assembly unit consists of the
installation of the transformer, its housing, warning sign,
switches, over-current protective devices, grounding loop, and its
hardware and leads with their connectors and supporting insulators.
This unit also includes the installation of primary cable
terminations but not of lightning arresters, fault indicators or
ground rods, nor does it include any trenching. For pad-mount
transformers, it does not include installation of the pad, drainable
material, backfilling, compaction, or site preparation which are
included in the pad assembly units. For submersible transformers it
includes the installation of cable terminations, of the enclosure
and cover, of drainable material (when specified4) and the
excavation.
\4\____ Owner check here if drainable material is specified.
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Section UK--Underground Secondary and Service Assembly Units
An underground secondary and service assembly unit consists of
the installation of the secondary or service cable terminal housing.
It includes the installation of the power pedestal, stake (when
required), mounting hardware, warning sign, directional marker,
housing identification marking, and the cable identification tags.
It does not include the installation of the cable terminations,
ground rod, or pad, when required.
[[Page 10227]]
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Section UM--Miscellaneous Underground Assembly Units
A miscellaneous underground assembly unit consists of the
installation of an additional unit needed in the Project for new
construction, but not otherwise listed in the Proposal. This section
includes the installation of the miscellaneous assembly units as
shown on the respective underground construction drawings. Where
miscellaneous units consist of or include the installation of a
primary cable termination, the unit includes the preparation of the
cable to accommodate the termination, the installation of the stress
cone, and the connection of the cable to the terminal equipment. Pad
assembly units are in this section and include the installation of
the bedding, drainable material (when specified), cable slot, and
site preparation, backfilling and tamping.
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Section UR--Underground Excavation Assembly Units
UR1-S (D) Plowing Assembly Unit, Soil--Consists of one (1)
lineal foot of plowing in soil, measured parallel to the surface of
the ground, to a specified depth (D), in inches, including the
compacting, except as specifically provided for in other units. This
unit includes all labor required in the repair and/or replacement of
streets, roads, drives, fences, lawns, shrubbery, watermains, pipes,
pipelines and contents, underground power and telephone facilities,
buried sewerage and drainage facilities, and any other property
damaged during the plowing of the cable, except as specifically
provided for in other units.
Note: Where in the judgment of the Owner greater than normal
difficulty will be involved in plowing because of the presence of
underground facilities of other utilities, this unit will be
suffixed by the letter ``T''. This will be applicable only in those
areas predesignated by the Owner on the detail maps herein. All
plowing outside of the predesignated area on the map, regardless of
the difficulty in placement actually experienced, will be
inventoried as the regular UR1-S (D) units. If field conditions show
the existence of rock to prevent the placing of the cable in soil to
the depth required in the specifications the Owner may specify UR2-R
units. Where more than one cable is to be installed in the slot, the
UR1-S unit designation should be modified by a suffix corresponding
to the number of cables installed. For example, UR1-S (D) 3c for 3
cables plowed at one time.
UR2-S (D&W) Trenching Assembly Unit, Soil--Consists of one (1)
lineal foot of trenching in soil, measured parallel to the surface
of the ground, to a specified depth (D) and width (W), in inches,
including the excavation, and backfilling and compacting. This unit
includes all labor required in the repair and/or replacement of
streets, roads, drives, fences, lawns, shrubbery, watermains, pipes,
pipelines and contents, underground power and telephone facilities,
buried sewerage and drainage facilities, and any other property
damaged by the trenching, except as specifically provided for in
other units.
Note: Where in the judgment of the Owner greater than normal
difficulty will be involved in trenching because of the presence of
underground facilities of other utilities, this unit will be
suffixed by the letter ``T''. This will be applicable only in those
areas predesignated by the Owner on the detail maps herein. Where
more than one cable is to be installed in the trench, the regular
UR2-S unit designation should be modified by a suffix corresponding
to the construction drawing for the type of cable placement desired.
UR2-R (D&W) Trenching Assembly Unit, Rock--Consists of one (1)
lineal foot of trenching in rock, measured parallel to the surface
of the ground, to specified depth (D) and width (W), in inches,
including the excavation, and backfilling and compacting to place
cable to the depth specified in the Specifications. This unit will
be specified by the Owner only when field conditions at the site
show the existence of rock at a depth preventing the placing of the
cable in soil to the depths required in the Specifications. This
unit includes all labor required in the repair and/or replacement of
streets, roads, drives, fences, lawns, shrubbery, watermains, pipes,
pipelines and contents, underground power and telephone facilities,
buried sewerage and drainage facilities, and any other property
damaged by the trenching, except as specifically provided for in
other units. This unit does not include underground cable facilities
installed in the trench or cable bedding assembly units, when
required.
UR-3 Cable Bedding Assembly Unit--Consists of the installation
of one (1) lineal foot of a 2-inch bed of clean sand or soil placed
in the trench under the cable and a 4-inch layer of clean sand or
soil backfill over the cable to the width of the trench.
Note: The exact location and number of units shall be determined
by the Owner after the trenches are open in those areas where rock
or other conditions make special bedding necessary.
UR-4a Pavement Assembly Unit, Asphalt--Consists of the labor
necessary to remove and restore one (1) lineal foot of asphalt
pavement, measured along the route of the cable, including any
trenching necessary to place the cable at the required depth. All
work shall be performed in accordance with the requirements of State
or local authorities.
UR-4c Pavement Assembly Unit, Concrete--Consists of the labor
necessary to remove and restore one (1) lineal foot of concrete
pavement, measured along the route of the cable, including any
trenching necessary to place the cable at the required depth. All
work shall be performed in accordance with the requirements of State
or local authorities.
UR-5 ( ) Underground Pipe Crossing Assembly Unit--Consists of
the installation of one (1) lineal foot of steel pipe, of the inside
diameter, in inches, specified in the last digit of the assembly
unit designation, installed in place. This unit includes the pushing
of pipe and any excavation, backfilling and tamping necessary for
the installation of the pipe. The pipe will be installed at the
depth specified by the Owner. The installation of underground cable
in the pipe is not included in this unit.
UR6 Underground Nonpipe Crossing Assembly Unit--Consists of the
labor in providing a hole in soil one (1) foot in length of a
diameter sufficient to accommodate the cable to be installed
therein. The depth of the hole below the surface of the ground shall
be specified by the Owner. This unit includes any excavation,
backfilling and tamping necessary for the installation. This unit
may be used where the permanent installation of a steel pipe under
the UR-5 unit is not required. The installation of underground cable
in the pipe is not included in this unit.
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Construction Units--Line Changes
The general heading of Line Changes applies to the changing of
existing lines or portions thereof from their existing phasing, wire
size, and type to new phasing, wire size, and type and the removal
of existing lines or portions thereof and replacing with new lines
in close proximity thereto. In general line changes involve three
types of assembly units as follows:
Section H--Conversion assembly units;
Section I--Removal assembly units;
Section N--New construction assembly units on existing lines or
in replacing lines.
The assembly units that are included in Sections H, I, and N are
defined by symbols and descriptions which follow together with the
applicable descriptions included under New Construction. Where the
descriptions are not correct or sufficiently explicit, or when
special units are not covered by Construction Drawings, descriptions
have been provided by the Owner in the respective sections.
Work included in these sections shall be performed under a
schedule of deenergization and operating procedures as set forth by
the Owner at the time of release of any Section involving work on
existing lines.
The Contractor will so plan and perform its work that it will be
possible to safely reenergize all lines involved at the expiration
of the time limits set up in the schedule to resume service to all
consumers being served prior to deenergization. Prior to
commencement of work each day on lines to be deenergized, and upon
completion of work each day on such lines, the Contractor will
notify the Owner thereof in writing or in such other manner as the
circumstances permit.
Section H--Conversion Assembly Units
Conversion assembly units are pole-top assemblies and cover the
furnishing of all labor for changing an existing assembly unit to a
new assembly unit, utilizing certain [[Page 10228]] items of
materials of the existing assembly unit on poles to be left in
place. Any materials removed from the existing assembly units which
are not required in the construction of the conversion assembly unit
are to be reused by the Contractor in the construction of other
assembly units, or returned to Owner's warehouse, as directed by the
Owner. Conversion assembly units are specified by the prefix H with
the new construction assembly unit designation shown first and the
existing assembly unit designation shown last. For example, an H B1-
A1 signifies the conversion of an existing A1 assembly unit to a B1
assembly unit (as was defined in the description of construction
assembly units). In this instance the Contractor utilizes the
existing pin-type insulator, single upset bolt and neutral spool and
installs the additional crossarm, crossarm pins, braces, machine
bolt, carriage bolts, lag screw, and insulator supplied by the Owner
required for the new unit. The Contractor transports the pole-top
pin and two machine bolts to the warehouse or uses them on the
Project as directed by the Owner.
The Conversion assembly units also include the furnishing of all
labor in the transferring, resagging and retying of conductors from
one position on the pole to a different position on the pole where
such transfers are required. Where replacement of conductor is
required, the existing conductor will be removed under Section I and
the new conductor installed under Section N.
Where replacement of a pole is required, the existing pole and
pole-top assembly will be removed under Section I and the new pole
and pole-top assembly will be installed according to Section N and
no H units will be involved.
Conversion assemblies are listed in three subsections for
converting pole-top assemblies from single to V phase, single to
three phase, and V to three phase. The following descriptions apply
to only those conversion units not sufficiently explicit:
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
------------------------------------------------------------------------
Subsection H (B-A)--1 Phase to V Phase
------------------------------------------------------------------------
Unit No. Unit labor price
------------------------------------------------------------------------
------------------------------------------------------------------------
Subsection H (C-A)--1 Phase to 3 Phase
------------------------------------------------------------------------
Unit No. Unit labor price
------------------------------------------------------------------------
------------------------------------------------------------------------
Subsection H (C-B)--V Phase to 3 Phase
------------------------------------------------------------------------
Unit No. Unit labor price
------------------------------------------------------------------------
------------------------------------------------------------------------
Section I--Removal Assembly Units
Removal assembly units cover the furnishing of all labor for the
removal of existing units of construction from existing lines,
disassembling into material items, and all labor and transportation
for the returning of all materials to the warehouse of the Owner in
an orderly manner or transporting elsewhere to the site of the
Project for reuse in the prosecution of this Contract as directed by
the Owner.
The unit removal prices shall include all labor required to
reinstall in accordance with specifications any conductors
temporarily detached. The Contractor will reinstall at his own
expense any other units removed by him for his own convenience.
The removal units are specified by the prefix I and followed by
the assembly unit designation of existing assembly unit to be
removed. For example, an I-A1 signifies the removal of an A1
assembly unit. The following special notes apply to specific removal
units:
a. Poles. All poles of the same height, regardless of pole
class, are designated by the same unit. Thus an I-30-foot pole
signifies the removal of a 30-foot pole of any class. The Contractor
is not required under this unit to remove from the pole any ground
wire or pole numbering attached to the pole. This unit includes the
refilling and tamping of holes in a workmanlike manner unless they
are to be reused.
b. Pole-top Assemblies. The unit of removal of pole-top
assemblies includes, in addition to the removal of the assembly
itself, any necessary handling, resagging, and retying of conductors
in those cases where an existing pole-top assembly will be removed
and replaced by a new pole-top assembly and where any existing
conductor is to be reused.
The unit of removal of pole-top assemblies also includes any
holding or handling of mainline or tap conductors at tap lines,
angles, and deadends where such is involved, and the reinstalling of
such conductor in accordance with the Specifications; for example,
an I-A5-4 will include the disconnection of the tap conductors,
snubbing off the tap line at the nearest practical point and the
reconnection and resagging of these tap conductors if necessary to
the new tap assembly when installed. The new unit of construction,
however, will be specified separately in Section N.
c. Conductor. The conductor removal unit covers the removal of
1,000 feet of conductor or cable and reeling or coiling it in a
workmanlike manner in such a way that it can be reused by the
Contractor or the Owner. The Owner will furnish to the Contractor
reels if it is to be returned to the Owner's warehouse on reels. The
removal unit for each size of conductor or cable is shown by the
prefix I followed by D and the conductor or cable type; thus an I-D
6ACWC signifies the removal unit for 1,000 feet of 6 A Copperweld-
copper conductor.
d. Guys. All guys regardless of length, type of attachment, or
size of guy strand are specified by the same unit; thus an I-E
signifies the removal of any guy.
e. Anchors. Only anchor rods are to be removed by the Contractor
in anchor removal units. The anchors will be left in the ground;
thus an I-F signifies the removal of any anchor rod. If the rod
cannot be unscrewed, the end of the rod shall either be cut off or
bent down so that the rod will be at least 18 inches below ground.
f. Transformers. The unit for removal of transformer assembly
units is divided into two sections, (1) Conventional Transformer
Assembly, and (2) Self-protected Transformer Assembly. Only one unit
is specified for each type, and all sizes of transformers from 1 to
15 kVA within each group will be covered by the same unit. ``Self-
protected'' refers to transformers where all protective equipment is
mounted on or within the transformer. ``Conventional'' refers to
transformers where protective equipment is mounted separately from
the transformer. The unit is designated by the prefix I followed by
the description of the unit to be removed; thus, I-G Conventional
signifies the removal of a conventional transformer assembly for any
size transformer from 1 to 15 kVA.
g. Secondary Units. The unit for removal of secondary assemblies
includes, in addition to the removal of the assembly itself, all
necessary handling such as untying, resagging, and retying of
secondary conductor or cables where existing secondary conductor or
cable is to be reused.
In addition, the unit for removal of the secondary assembly
includes the handling or holding of any conductor at tap lines where
such is involved, and the reinstalling of such tap conductor in
accordance with the Specifications.
h. Service Unit. The unit for removal of service assemblies
includes, in addition to the removal of the assembly itself, all
necessary handling such as untying, resagging, and retying of
service conductor or cable where existing service conductor or cable
is to be reused.
The following descriptions apply only to those removal units not
sufficiently explicit:
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Unit No. Unit labor price
------------------------------------------------------------------------
------------------------------------------------------------------------
Section N--New Assembly Units
The purpose of this section is to list complete new units of
construction where such units are to be added to existing lines or
installed in replacing lines.
The units as covered by this section are the same as the units
described in Construction Units--New Construction, except that these
units are prefixed by the letter N.
For example, an N40-6 unit covers the furnishing of all labor
for the installation of a 40-6 pole either in an existing
distribution line being operated by the Owner or in a new line being
constructed to replace an existing distribution line being operated
by the Owner.
The following descriptions apply only to those new units not
sufficiently explicit:
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Unit No. Unit labor price
------------------------------------------------------------------------
------------------------------------------------------------------------
[[Page 10229]] Acceptance
The undersigned hereby accepts the foregoing Proposal of ____,
dated ____, to construct the rural electric Project ____19____ Line
Extensions.
____ (Owner)
By ____ President
____ Secretary
____ Date of Contract
[End of clause]
Sec. 1726.344 [Reserved]
Sec. 1726.345 Certificate of contractor and indemnity agreement (line
extensions), RUS Form 792b.
The closeout form in this section shall be used when required by
this part.
Certificate of Contractor and Indemnity Agreement (Line Extensions)
____, certifies that he is the ____ (title or designation), of
____ (name of contractor), the Contractor, in a contract dated ____
19____ entered into between the Contractor and ____ (name of RUS
Borrower) ____, the Owner, for the construction of a rural electric
Project (hereinafter referred to as Project), which bears the
Project Designation ____ 19____ Line Extensions, and that he is
authorized to and does make this Certificate and Indemnity Agreement
on behalf of said Contractor in order to induce the Owner to make
payment to the Contractor, in accordance with the provisions of the
said contract.
Undersigned further says that all persons who have furnished
labor in connection with the Section of the Project represented by
the Final Inventory dated ____, in the amount of $____, have been
paid in full; that all manufacturers, materialmen and subcontractors
which furnished any materials or services, or both, for the said
Section of the Project have been paid in full; that no lien has been
filed against the Project and no person has any right to claim any
lien against the Project.
Undersigned further says that if the Owner pays the Contractor
the contract price for the said Section of the Project the
Contractor will indemnify and hold harmless and does hereby
undertake and agree to indemnity and hold harmless the Owner from
any claim or lien arising out of the negligence or other fault of
the Contractor in respect of the performance of the contract which
may have been or may be filed against the Owner.
____ Signature of Contractor (President, Vice-President, Partner
or Owner, or, if signed by other than one of foregoing, Power of
Attorney signed by one of the foregoing should be attached. Indicate
applicable designation.)
[End of clause]
Sec. 1726.346 Supplemental contract for additional project, RUS Form
792c.
The form in this section shall be used when required by RUS Form
201, 790, or 792.
Supplemental Contract For Additional Project
Date ____
To: ____ Contractor
Pursuant to Article I, Section 2 of the Contractor's Proposal
dated ____, for the rural electric Project ____, we request that you
construct Additional Project No. ____, consisting of approximately
the following system improvement and line extension work: ____.
The Additional Project is to be constructed in accordance with
all of the provisions of the Contractor's Proposal, except:
1. The time for completion of the Additional Project shall be
____
2. The prices for Construction Units for the Additional Project
are attached.
Please indicate your acceptance of the foregoing by signing
below, return two signed copies and retain one copy.
Sincerely,
____ Owner
By ____ President, Vice President (strike out inapplicable
designation.)
Acceptance:
____ Contractor
By ____ President, Vice President, Partner (strike out inapplicable
designation.)
Date ____
[End of clause]
Secs. 1726.347-1726.350 [Reserved]
Sec. 1726.351 Electric system construction contract (labor and
materials), RUS Form 830.
The contract form in this section shall be used when required by
this part. This form refers to guide drawings, which do not contain
requirements, and, hence, are not included in this part. The guide
drawings are included in the printed form available from GPO (See
Sec. 1726.300.).
Electric System Construction Contract (Labor and Materials)
Notice And Instructions To Bidders
1. Sealed proposals for the construction, including the supply
of necessary labor, materials and equipment, of a rural electric
project of ____ (hereinafter called the ``Owner'') to be known as
____ Project will be received by the Owner on or before ____ o'clock
____ M., ____, 19____, at its office at ____ at which time and place
the proposals will be publicly opened and read. Any proposals
received subsequent to the time specified will be promptly returned
to the Bidder unopened.
2. Description of Project: The Project will consist of
approximately:
Overhead Distribution Line Construction
____ miles of ____ kV Single Phase Lines
____ miles of ____ kV V-Phase Lines
____ miles of ____ kV Three-Phase Lines
____ miles of secondary on secondary poles
____ miles of services for ____ consumers
Underground Distribution Facilities
____ miles of ____ kV Single-Phase Construction
____ miles of ____ kV V-Phase Construction
____ miles of ____ kV Three-Phase Construction
____ miles of ____ Volt Secondary and Service
Construction for ____ Consumers.
Distribution Line Changes, Conversion, and Removal
____ miles of ____
Transmission Line Construction
____ miles ____ kV; ____ miles ____ kV
____ miles ____ kV underbuild
Substations and Other Major Facilities
____ kVA ____ Voltage ____ Name
This Project is located in ____ Counties, in the State(s) of
____ all as more fully described in the Plans, Specifications,
Construction Drawings, and Contractor's Proposal therefore
hereinafter referred to.
3. Work on Energized Lines. Unless stated below all construction
work including attachments to existing poles and line changes, is to
be done with the line deenergized. The hours during which existing
lines will be deenergized are shown in the Contractor's Proposal.
Approximately ____ miles of the line changes are to be made with the
lines energized and such lines are in the following locations or
areas: ____ and are more fully described in the Plans,
Specifications, and Contractor's Proposal. For work in these
locations the Bidder must provide personnel capable of working on
energized lines. All such work shall be performed to meet at least
the safety rules and regulations prescribed by the Owner for its own
employees including the use of rubber gloves, hot sticks and
associated protective equipment, a copy of which rules and
regulations may be examined at the office of the Owner.
4. Owner-Furnished Materials. The unit prices in the
Contractor's Proposal should include provisions for Owner-Furnished
Materials since as stated in Article I, Section 3 of the
Contractor's Proposal, the value of the Owner-Furnished Materials,
if any, will be deducted from payments to the Bidder for completed
Construction Units.
5. Obtaining Documents. The Plans, Specifications and
Construction Drawings, together with all necessary forms and other
documents for bidders may be obtained from the Owner, or from the
Engineer ____ at the latter's office at ____ upon the payment of
$____, which payment will not be subject to refund. The Plans,
Specifications, and Construction Drawings may be examined at the
office of the Owner or at the office of the Engineer. A copy of the
Loan Contract (if the Project is to be financed, in whole or in
part, pursuant to a loan contract) between the Owner and the United
States of America acting through the Administrator of the Rural
Utilities Service and of the loan contract between the Owner and any
other lender may be examined at the office of the Owner. Each set of
Plans, Specifications and Construction Drawings will have a serial
number, given by the Engineer, and the number of each set with the
name of the purchaser will be recorded by the Engineer. Bids will be
accepted only from the original purchaser.
6. Manner of Submitting Proposals. Proposals and all supporting
instruments must be submitted on the forms furnished by the Owner
and must be delivered in a sealed [[Page 10230]] envelope addressed
to the Owner. The name and address of the Bidder, its license number
if a license is required by the State, and the date and hour of the
opening of bids must appear on the envelope in which the Proposal is
submitted. Proposals must be filled in in ink or typewritten. No
alterations or interlineations will be permitted, unless made before
submission, and initialed and dated.
7. Familiarity with Conditions. Prior to the submission of the
Proposal the Bidder shall make and shall be deemed to have made a
careful examination of the site of the Project and of the Plans,
Specifications, Construction Drawings, and forms of Contractor's
Proposal and Contractor's Bond on file with the Secretary of the
Owner and with the Engineer, and shall become informed as to the
location and nature of the proposed construction, the transportation
facilities, the kind and character of soil and terrain to be
encountered, the kind of facilities required before and during the
construction of the Project, general local conditions and all other
matters that may affect the cost and time of completion of the
Project. Bidders will be required to comply with all applicable
statutes, regulations, etc., including those pertaining to the
licensing of contractors, and the so-called ``Kick-Back Statute''
(48 State. 948) and regulations issued pursuant thereto.
8. Proposals will be accepted only from those prequalified
bidders invited by the Owner to submit a proposal.
9. Alternate Designs. The Owner reserves the right to confine
its consideration of the several bids to one type of design
regardless of alternate types of design which may be specified in
the Plans and Specifications and offered in the Proposals.
10. Proposals for Distribution and Transmission Facilities. If
the Project includes both distribution and transmission facilities,
bidders shall bid on both of the facilities and the Owner will
evaluate the Proposals on the basis of low total bid for both
facilities.
11. The Time for Completion of Construction of the Project shall
be as specified by the Engineer in the Proposal.
12. Bid Bond. Each Proposal must be accompanied by a Bid Bond in
the form attached or a certified check on a bank that is a member of
the Federal Deposit Insurance Corporation, payable to the order of
the Owner, in an amount equal to ten percent (10%) of the maximum
bid price. Each Bidder agrees, provided its Proposal is one of the
three low Proposals, that, by filing its Proposal together with such
Bid Bond or check in consideration of the Owner's receiving and
considering such Proposals, said Proposal shall be firm and binding
upon each such Bidder and such Bid Bond or check shall be held by
the Owner until a Proposal is accepted and a satisfactory
Contractor's Bond is furnished (where required) by the successful
Bidder and such acceptance has been approved by the Administrator,
or for a period not to exceed sixty (60) days from the date
hereinbefore set for the opening of Proposals, whichever period
shall be the shorter. If such Proposal is not one of the three low
Proposals, the Bid Bond or check will be returned in each instance
within a period of ten (10) days to the Bidder furnishing same.
13. Contractor's Bond. The successful Bidder will be required to
execute two additional counterparts of the Proposal and, for a
Contract in excess of $100,000, to furnish a Contractor's Bond in
triplicate in the form attached hereto with sureties listed by the
United States Treasury Department as Acceptable Sureties, in a penal
sum not less than the contract price.
14. Failure to Furnish Contractor's Bond. Should the successful
Bidder fail or refuse to execute such counterparts or to furnish a
Contractor's Bond (where required) within ten (10) days after
written notification of the acceptance of the Proposal by the Owner,
the Bidder will be considered to have abandoned the Proposal. In
such event, the Owner shall be entitled (a) to enforce the Bid Bond
in accordance with its terms, or (b) if a certified check has been
delivered with the Proposal, to retain from the proceeds of the
certified check, the difference (not exceeding the amount of the
certified check) between the amount of the Proposal and such larger
amount for which the Owner may in good faith contract with another
party to construct the Project. The term ``Successful Bidder'' shall
be deemed to include any Bidder whose Proposal is accepted after
another Bidder has previously refused or has been unable to execute
the counterparts or to furnish a satisfactory Contractor's Bond
(where required.)
15. Contract is Entire Agreement. The Contract to be effected by
the acceptance of the Proposal shall be deemed to include the entire
agreement between the parties thereto, and the Bidder shall not
claim any modifications thereof resulting from any representation or
promise made at any time by any officer, agent or employee of the
Owner or by any other person.
16. Minor Irregularities. The Owner reserves the right to waive
minor irregularities or minor errors in any Proposal, if it appears
to the Owner that such irregularities or errors were made through
inadvertence. Any such irregularities or errors so waived must be
corrected on the Proposal in which they occur prior to the
acceptance thereof by the Owner.
17. Balanced Bid. The Owner reserves the right to reject any or
all Proposals. The attention of Bidders is specially called to the
desirability of a proper balance between prices for labor and
materials and between the total prices for the respective
Construction Units. Lack of such balance may be considered as a
reason for rejecting a Proposal.
18. Discrepancy in Unit Prices. Where the unit prices in the
Contractor's Proposal are separated into three columns designated as
``Labor,'' ``Materials,'' and ``Labor and Materials,'' and where a
discrepancy appears between the sum shown in the ``Labor and
Materials'' column and the correct addition of the sums appearing in
the ``Labor'' column and the ``Materials'' column, the correct
addition of the sums appearing in the ``Labor'' column and the
``Materials'' column shall control.
19. Definition of Terms. The terms ``Administrator,''
``Engineer,'' ``Supervisor,'' ``Project,'' ``Completion of
Construction,'' and ``Completion of the Project'' as used throughout
this Contract shall be as defined in Article VI, Section 1, of the
Contractor's Proposal.
20. The Owner Represents: a. If by provisions of the
Contractor's Proposal the Owner shall have undertaken to furnish any
materials for the construction of the Project, such materials are on
hand at locations specified or if such materials are not on hand
they will be made available by the Owner to the successful Bidder at
the locations specified before the time such materials are required
for construction.
b. All easements and rights-of-way, except as shown on maps
included in the Plans and Specifications, have been obtained from
the owners of the properties across which the Project is to be
constructed (including tenants who may reasonably be expected to
object to such construction). The remaining easements and rights-of-
way, if any, will be obtained as required to avoid delay in
construction.
c. All staking, except as shown on the maps included in the
Plans and Specifications, has been completed and sufficient staking
crews will be available to maintain stakes at all times in advance
of construction.
d. Where underground distribution construction is required,
permission has been obtained from state and local highway and road
authorities to install underground distribution power facilities and
set pedestals, if any, on the highway and road right-of-way in the
Project area. Notwithstanding such permission granted to the Owner,
each Bidder is responsible for ascertaining that the equipment,
methods of construction, and repair proposed to be used on the
Project will meet all requirements of public authorities having
jurisdiction over highway and road right-of-way. The successful
Bidder will be required to furnish proof satisfactory to the Owner
of compliance with this requirement. If required by highway or road
authorities, the successful Bidder will furnish to such authorities
a bond or meet other guaranty requirements to assure the prompt
repair of all damages to highways and roads and their associated
rights-of-way caused by the Bidder during construction of the
Project. This requirement is in addition to and independent of the
Contractor's Bond required under this Contract. The acceptance of a
bid from any Bidder is not to be construed as approval of the
Bidder's equipment or proposed construction methods by or on behalf
of the highway and road authorities. Bidders may obtain information
concerning the requirements of highway and road authorities by
communicating with the following ____.
e. All funds necessary for prompt payment for the construction
of the Project will be available. If the Owner shall fail to comply
with any of the undertakings contained in the foregoing
representation or if any of such representations shall be incorrect,
the Bidder will be entitled to an extension of time of completion
for a period equal to the delay, if any, caused by the failure of
the Owner to comply with such undertakings or by any such incorrect
representation; provided the [[Page 10231]] Bidder shall have
promptly notified the Owner in writing of its desire to extend the
time of completion in accordance with the foregoing; provided,
however, that such extension, if any, of the time of completion
shall be the sole remedy of the Bidder for the Owner's failure,
because of conditions beyond the control and without the fault of
the Owner, to furnish materials in accordance with subparagraph a.
above.
Owner ____
By ____
____. 19____
Contractor's Proposal
(Proposal shall be submitted in ink or typewritten)
To: ____ (hereinafter called the ``Owner'')
Article I--General
Section 1. Offer to Construct. The undersigned (hereinafter
called the ``Bidder'') hereby proposes to receive and install such
materials and equipment as may hereinafter be specified to be
furnished by the Owner, and to furnish all other materials and
equipment, all machinery, tools, labor, transportation and other
means required to construct the rural electric project ____ in
strict accordance with the Plans, Specifications and Construction
Drawings for the prices hereinafter stated.
The total length of the project lines shall be determined by
taking the sum of all straight horizontal span distances between
pole stakes or from center to center of poles, or centerline of
structures, carrying conductors, plus the length of service drops,
if any, measured horizontally from center of last pole to the point
of attachment to the consumer's building.
Section 2. Materials and Equipment. The Bidder agrees to furnish
and use in the construction of the Project under this Proposal, in
the event the Proposal is accepted, only such ``fully listed'' and
``conditionally listed'' materials and equipment as are included in
the current ``List of Materials Acceptable for Use on Systems of RUS
Electrification Borrowers,'' including revisions adopted prior to
the Bid Opening. The use of ``conditionally listed'' materials and
equipment requires prior consent by the Owner or Engineer. For
distribution lines, the Bidder further agrees to furnish and use guy
wire with ASTM Class ____ (Engineer to insert A or B) zinc coating.
All leads on equipment such as transformers, reclosers, etc.,
shall be of #6 minimum copper conductivity using ____ (Engineer to
insert standard soft drawn copper or aluminum alloy) conductor. All
conductor ties on insulators shall be of the materials and methods
shown in the following Tying Guide Drawings: ____ (Engineer to
insert appropriate drawing numbers).
Ground rods and butt-type pole grounding plates shall be ____
(Engineer to insert galvanized steel or copper).
Underground primary cable shall have ____ coated copper neutral
(Engineer to insert round or flat).
For transmission lines, the Bidder further agrees to furnish and
use guy wire, overhead ground wire, and pole ground wire with ASTM
Class ____ (Engineer to insert A, B, or C) zinc coating. Guy wire
shall be the same size and grade as the overhead ground wire. Where
overhead ground wire is not specified, the guy wire shall be ____
size, ____ grade.
The Bidder further agrees to furnish and use poles, crossarms,
and other timber products, of which the physical characteristics,
method of treatment, type of preservative, instructions on
inspection and general procedure shall be in accordance with RUS
standards and requirements.
Crossarms shall be ____ (Engineer to insert Douglas fir or
Southern Yellow Pine), treated with ____ (Engineer to insert type of
preservative.)
The Bidder agrees that the prices for poles, crossarms, and
other timber products set forth herein shall include the cost of
preservative treatment and inspection, insured warranty, or quality
assurance. The Bidder further agrees to obtain from the supplier
inspection and treatment reports or insured warranties, for checking
against the delivered timber, and to submit such reports or
warranties to the Owner as one of the prerequisites to monthly and
final payments.
Section 3. Owner-Furnished Materials. The Bidder understands and
agrees that, if this Proposal is accepted, the Owner will furnish to
the Bidder the material set forth in the attached ``List of Owner's
Materials on Hand'' (see page ____) and the Bidder will give a
receipt (see page ____) therefore in writing to the Owner. The
Bidder, further, will on behalf of the Owner accept delivery of such
of the materials set forth in the attached ``List of Materials
Ordered by Owner but Not Delivered'' (see page ____) as may be
subsequently delivered and will promptly forward to the Owner for
payment the supplier's invoice, together with the Bidder's receipt
in writing for such materials. The materials referred to are on hand
at, or will be delivered to, the locations specified in the List and
the Bidder will use such materials in constructing the Project.
The value of the completed Construction Units certified by the
Bidder each month pursuant to Article III, Section 1.a of the
Proposal shall be reduced by an amount equal to the value of the
materials installed by the Bidder during the preceding month which
have been furnished by the Owner or the delivery of which has been
accepted by the Bidder on behalf of the Owner. Only ninety percent
(90%) of the remainder shall be paid prior to the Completion of the
Project. The value of such materials shall be computed on the basis
of the unit prices stated in the Lists. Materials, if any, not
required for the Project, which have been furnished to the Bidder by
the Owner or delivery of which has been accepted by the Bidder on
behalf of the Owner, shall be returned to the Owner by the Bidder
upon completion of construction of the Project. The value of all
materials not installed in the Project nor returned to the Owner
shall be deducted from the final payment to the Bidder.
The Owner shall not be obligated to furnish materials in excess
of the quantities, size, kind and type set forth in the attached
Lists. If the Owner furnishes, and the Bidder accepts, materials in
excess thereof, the values of such excess materials shall be their
actual cost as stated by the Owner.
Information on the shipping schedules of materials on the ``List
of Materials Ordered by Owner But Not Delivered'' will be furnished
to the Bidder as necessary during progress of the work. Upon
delivery the Bidder shall promptly receive, unload, transport and
handle all materials and equipment on the ``List of Materials
Ordered by Owner But Not Delivered'' at its expense and shall be
responsible for demurrage, if any.
Section 4. Purchase of Materials Not Furnished By Owner. The
Bidder will purchase all materials and equipment (other than Owner-
furnished materials) outright and not subject to any conditional
sales agreements, bailment, lease or other agreement reserving unto
the seller any right, title or interest therein.
Section 5. Proposal on Unit Basis. The Bidder understands and
agrees that the various Construction Units on which bids are made
are defined by symbols and descriptions in this Proposal, that all
said bids are on a unit basis, and that the Owner may specify any
number or combination of Construction Units that the Owner may deem
necessary for the construction of the Project. Separate Construction
Units are designated for each different arrangement which may be
used in the construction of the Project. This Proposal is based on a
consideration of each unit in place and includes only the materials
listed on the corresponding Construction Drawings or description of
unit where no drawing exists.
Section 6. Description of Contract. The Notice and Instructions
to Bidders and Plans attached hereto and made a part hereof, and the
Specifications and Construction Drawings set forth in:
RUS Bulletin 50-3, Specifications and Drawings for 12.5/7.2 kV
Line Construction;
RUS Form 803, Specifications and Drawings for 14.4/24.9 kV Line
Construction;
RUS Form 806, Specifications and Drawings for Underground
Electric Distribution;
RUS Bulletin 50-2, RUS Specifications T-805A, Electric
Transmission Specifications and Drawings, 34.5 kV through 69 kV;
RUS Bulletin 50-1, RUS Specification T-805B, Electric
Transmission Specifications and Drawings for 115 kV through 230 kV;
as applicable, which by this reference are incorporated herein,
together with the Proposal and Acceptance constitute the Contract.
The Plans, consisting of maps and special drawings, and approved
modifications in standard specifications are attached hereto and
identified as follows: ----------.
Section 7. Familiarity with Conditions. The Bidder has made a
careful examination of the site of the Project to be constructed and
of the Plans, Specifications, Construction Drawings, and form of
Contractor's Bond attached hereto, and has become informed as to the
location and nature of the proposed construction, the transportation
facilities, the kind and character of soil and terrain to be
encountered, and the kind of facilities required before and during
the construction of the Project, and has become acquainted
[[Page 10232]] with the labor conditions, state and local laws, and
regulations which would affect work on the proposed construction.
Section 8. License. The Bidder warrants that a Contractor's
License is ____ is not ____ required, and if required it posses
Contractor's License No. ____ for the State of ____ in which the
Project is located and said license expires on ____, 19____.
Section 9. Warranty of Good Faith. The Bidder warrants that this
Proposal is made in good faith and without collusion or connection
with any person or persons bidding for the same work.
Section 10. Warranty of Financial Resources. The Bidder warrants
that it possesses adequate financial resources and agrees that in
the event this Proposal is accepted and a Contractor's Bond is
required, it will furnish a Contractor's Bond in the form attached
hereto, in a penal sum not less than the maximum Contract price,
with a surety or sureties listed by the United States Department of
Treasury as Acceptance Sureties.
In the event that the surety or sureties on the performance bond
delivered to the Owner contemporaneously with the execution of the
Contract or on any bond or bonds delivered in substitution thereof
or in addition thereto shall at any time become unsatisfactory to
the Owner or the Administrator, the Bidder agrees to deliver to the
Owner another or an additional bond.
Section 11. Taxes. The unit prices for Construction Units in
this Proposal include provisions for the payment of all monies which
will be payable by the Bidder or the Owner in connection with the
construction of the Project on account of taxes imposed by any
taxing authority upon the sale, purchase or use of materials,
supplies and equipment, or services or labor of installation
thereof, to be incorporated in the Project as part of such
Construction Units. The Bidder agrees to pay all such taxes, except
taxes upon the sale, purchase or use of owner-furnished materials
and it is understood that, as to owner-furnished materials, the
values stated in the attached ``List of Owner's Materials on Hand''
and ``List of Materials Ordered by Owner But Not Delivered'' include
taxes upon the sale, purchase or use of owner-furnished materials,
if applicable. The Bidder will furnish to the appropriate taxing
authorities all required information and reports pertaining to the
Project, except as to the Owner-furnished materials.
Section 12. Changes in Quantities. The Bidder understands and
agrees that the quantities called for in this Proposal are
approximate, and that the total number of units upon which payment
shall be made shall be as set forth in the inventory. If the Owner
changes the quantity of any unit or units specified in this Proposal
by more than fifteen percent (15%) and the materials cost to the
Bidder is increased thereby to an extent which would not be
adequately compensated by application of the unit prices in this
Proposal to the revised quantity of such unit or units, such change,
to the extent of the quantities of such units in excess of such
fifteen percent (15%) shall be regarded as a change in the
construction within the meaning of Article II, Section 1(d) of this
proposal.
List of Owner's Materials on Hand
----------------------------------------------------------------------------------------------------------------
Description Extended
Item\1\ of material Catalog No. Quantity Unit price price
----------------------------------------------------------------------------------------------------------------
Total:
Above Materials are Located at:
----------------------------------------------------------------------------------------------------------------
Notes: 1. Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3,
the value of these materials will be deducted from payments to the Bidder for completed Construction Units.
List of Materials Ordered by Owner But Not Delivered
----------------------------------------------------------------------------------------------------------------
Supplier Scheduled
Item\1\ name and delivery Description Catalog No. Quantity Unit price Extended
address date of material price
----------------------------------------------------------------------------------------------------------------
Total:
Above Material to be
Delivered to:
----------------------------------------------------------------------------------------------------------------
Notes: 1. Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3,
the value of these materials will be deducted from payments to the Bidder for completed Construction Units.
Article II--Construction
Section 1. Time and Manner of Construction.
a. The Bidder agrees to commence construction of the Project on
a date (hereinafter called the ``Commencement Date'') which shall be
determined by the Engineer after notice in writing from the Bidder
that the Bidder has sufficient materials to warrant commencement and
continuation of construction, but in no event will the Commencement
Date be later than ________ calendar days after date of approval of
the Contract by the Administrator. The Bidder further agrees to
prosecute diligently and to complete construction in strict
accordance with the Plans, Specifications and Construction Drawings
within ________ (________) calendar days (excluding Sundays) after
Commencement Date: Provided, however, that the Bidder will not be
required to dig holes, set poles, install anchors, install
underground conduit, perform any plowing for the installation of
underground cable, or dig trenches if there are more than six (6)
inches of frost on the ground nor to perform any construction on
such days when in the judgment of the Engineer snow, rain, or wind,
or the results of snow, rain, or frost make it impracticable to
perform any operation of construction; provided further that the
Bidder will not be required to perform any plowing for the
installation of underground cable on public roads or highways if
there are more than two (2) inches of frost in the ground. To the
extent of the time lost due to the conditions described herein and
approved in writing by the Engineer, the time of completion set out
above will be extended if the Bidder makes a written request
therefore to the Owner as provided in subsection b of this Section
1.
b. The time for Completion of Construction shall be extended for
the period of any reasonable delay which is due exclusively to
causes beyond the control and without the fault of the Bidder,
including Acts of God, fires, floods, inability to obtain materials
and acts or omissions of the Owner with respect to matters for which
the Owner is solely responsible: Provided, however that no such
extension of time for completion shall be granted the Bidder unless
within ten (10) days after the happening of any event relied upon by
the Bidder for such an extension of time the Bidder shall have made
a request therefore in writing to the Owner, and provided further
that no delay in such time of completion or in the progress of the
work which results from any of the above causes except acts or
omissions of the Owner, shall result in any liability on the part of
the Owner.
c. The sequence of construction shall be as set forth below, the
number or names being the designations of extensions or areas
(hereinafter called the ``Sections'') corresponding to the numbers
or names shown on the maps attached hereto, or if no Sections are
set forth below, the sequence of construction shall be as determined
by the [[Page 10233]] Bidder, subject to the approval of the
Engineer. ________
d. The Owner, acting through the Engineer may from time to time
during the progress of the construction of the Project make such
changes, additions or subtractions from the Plans, Specifications,
Construction Drawings, List of Materials and sequence of
construction provided for in the previous paragraph which are part
of the Contractor's Proposal as conditions may warrant: Provided,
however, that if any change in the construction to be done shall
require an extension of time, a reasonable extension will be granted
if the Bidder shall make a written request therefore to the Owner
within (10) days after any such change is made. And provided
further, that if the cost to the Bidder of construction of the
project shall be materially increased by any such change or
addition, the Owner shall pay the Bidder for the reasonable cost
thereof in accordance with a Construction Contract Amendment signed
by the Owner and the Bidder, but no claim for additional
compensation for any such change or addition will be considered
unless the Bidder shall have made a written request therefore to the
Owner prior to the commencement of work in connection with such
change or addition.
e. The Bidder will not perform any work hereunder on Sundays
unless there is urgent need for such Sunday work and the Owner
consents thereto in writing. The time for completion specified in
subsection a of this Section 1 shall not be affected in any way by
inclusion of this subsection nor by the Owner's consent or lack of
consent to Sunday work hereunder.
Section 2. Environmental Protection. The Bidder shall perform
work in such a manner as to maximize preservation of beauty,
consideration of natural resources and minimize marring and scarring
of the landscape and silting of streams. The Bidder shall not
deposit trash in streams or waterways, and shall not deposit
herbicides or other chemicals or their containers in or near
streams, waterways or pastures. The Bidder shall follow the criteria
relating to environmental protection as specified herein by the
Engineer.
Section 3. Tools, Equipment, and Qualified Personnel. The Bidder
agrees that in the event this Proposal is accepted it will make
available for use in connection with the proposed construction all
necessary tools and equipment and qualified superintendents and
foremen.
Section 4. Changes in Construction. The Bidder agrees to make
such changes in construction previously erected in the Project by
the Bidder as required by the Owner for prices arrived at as
follows:
a. For substations and other units where only a portion of the
complete unit is affected by the change, the compensation for such
change shall be as agreed upon in writing by the Bidder and the
Owner prior to the commencement of work in connection with such
change.
b. For all other units, the compensation for such change shall
be the reasonable cost thereof as agreed upon by the Bidder and the
Owner, but in no event shall it exceed two (2) times the labor price
quoted in the Proposal for the installation of the unit to be
changed. Such compensation shall be in lieu of any other payment for
the installation and removal of the original unit. (If a new or
replacing unit is installed, payment for such new or replacing unit
shall be made as shown in the final inventory.)
No payment shall be made to the Bidder for materials or labor
involved in correcting errors or omissions on the part of the Bidder
which result in construction not in accordance with the Plans and
Specifications. Section 5. Construction Not in Proposal. The Bidder
also agrees that when it is necessary to construct units not shown
in the Proposal it will construct such units for a price arrived at
as follows:
a. The cost of materials shall be determined by the invoices.
b. The cost of labor shall be the reasonable cost thereof, but
in no event shall it exceed an amount determined by calculating the
ratio of the total labor costs to the total material costs in the
section of the Proposal involved, and multiplying the cost of
materials for the unit in question by this ratio: Provided, however,
that in respect of sections H, M, and N, the ratio shall be
calculated for only those units of the section which are similar to
the new unit for which a price is to be determined.
Section 6. Supervision and Inspection.
a. The Bidder shall cause the construction work on the Project
to receive constant supervision by a competent superintendent
(hereinafter called the ``Superintendent'') who shall be present at
all times during working hours where construction is being carried
on. The Bidder shall also employ, in connection with the
construction of the Project, capable, experienced and reliable
foremen and such skilled workmen as may be required for the various
classes of work to be performed. Directions and instructions given
to the Superintendent shall be binding upon the Bidder.
b. The Owner reserves the right to require the removal from the
Project of any employee of the Bidder if in the judgment of the
Owner such removal shall be necessary in order to protect the
interest of the Owner. The Owner or the Supervisor, if any, shall
have the right to require the Bidder to increase the number of its
employees and to increase or change the amount or kind of tools and
equipment if at any time the progress of the work shall be
unsatisfactory to the Owner or Supervisor; but the failure of the
Owner or Supervisor to give any such directions shall not relieve
the Bidder of its obligations to complete the work within the time
and in the manner specified in this Proposal.
c. The construction of the Project and all materials and
equipment used therein, shall be subject to the inspection, tests,
and acceptance by the Owner and the Administrator and the Bidder
shall furnish all information required by the Owner or by the
Administrator concerning the nature or source of any materials
incorporated or to be incorporated in the Project. The Owner and the
Administrator shall have the right to inspect all payrolls, invoices
of materials, and other data and records of the Bidder and of any
subcontractor, relevant to the construction of the Project. The
Bidder shall provide all reasonable facilities necessary for such
inspection and tests and shall maintain an office at the site of the
Project, with telephone service where obtainable and at least one
office employee to whom directions and instructions of the Owner may
be delivered. Delivery of such directions or instructions in writing
to the employee of the Bidder at such office shall constitute
delivery to the Bidder. The Bidder shall have an authorized agent
accompany the Engineer when final inspection is made and, if
requested by the Owner, when any other inspection is made.
d. In the event that the Owner, or the Administrator, shall
determine that the construction contains or may contain numerous
defects, it shall be the duty of the Bidder and the Bidder's Surety
or Sureties, if any, to have an inspection made by an engineer
approved by the Owner for the purpose of determining the exact
nature, extent and location of such defects.
e. The Engineer may recommend to the Owner that the Bidder
suspend the work wholly or in part for such period or periods as the
Engineer may deem necessary due to unsuitable weather or such other
conditions as are considered unfavorable for satisfactory
prosecution of the work or because of the failure of the Bidder to
comply with any of the provisions of the Contract: Provided,
however, that the Bidder shall not suspend work pursuant to this
provision without written authority from the Owner so to do. The
time of completion hereinabove set forth shall be increased by the
number of days of any such suspension, except when such suspension
is due to the failure of the Bidder to comply with any of the
provisions of this Contract. In the event that work is suspended by
the Bidder with the consent of the Owner, the Bidder before resuming
work shall give the Owner at least twenty-four (24) hours notice
thereof in writing.
Section 7. Defective Materials and Workmanship.
a. The acceptance of any materials, equipment (except Owner-
furnished materials) or any workmanship by the Owner or the Engineer
shall not preclude the subsequent rejection thereof if such
materials, equipment, or workmanship shall be found to be defective
after delivery or installation, and any such materials, equipment or
workmanship found defective before final acceptance of the
construction shall be replaced or remedied, as the case may be, by
and at the expense of the Bidder. Any such condemned material or
equipment shall be immediately removed from the site of the Project
by the Bidder at the Bidder's expense. The Bidder shall not be
entitled to any payment hereunder so long as any defective
materials, equipment or workmanship in respect to the Project, of
which the Bidder shall have had notice, shall not have been replaced
or remedied, as the case may be.
b. Notwithstanding any certificate which may have been given by
the Owner or the Engineer, if any materials, equipment (except
Owner-furnished materials) or any workmanship which does not comply
with the requirements of this Contract shall be discovered within
one (1) year after [[Page 10234]] Completion of Construction of the
Project, the Bidder shall replace such defective materials or
equipment or remedy any such defective workmanship within thirty
(30) days after notice in writing of the existence thereof shall
have been given by the Owner. If the Bidder shall be called upon to
replace any defective materials or equipment or to remedy defective
workmanship as herein provided, the Owner, if so requested by the
Bidder shall deenergize that section of the Project involved in such
work. In the event of failure by the Bidder so to do, the Owner may
replace such defective materials or equipment or remedy such
defective workmanship, as the case may be, and in such event the
Bidder shall pay to the Owner the cost and expense thereof.
Article III--Payments and Release of Liens
Section 1. Payments to Bidder
a. Within the first fifteen (15) days of each calendar month,
the Owner shall make partial payment to the Bidder for construction
accomplished during the preceding calendar month on the basis of
completed Construction Units furnished and certified to by the
Bidder, recommended by the Engineer and approved by the Owner solely
for the purposes of payment: Provided, however, that such approval
shall not be deemed approval of the workmanship or materials. Only
ninety percent (90%) of each such estimate approved during the
construction of the Project shall be paid by the Owner to the Bidder
prior to Completion of the Project: Provided, however, that at any
time after work, which, in the sole determination of the Engineer,
amounts to fifty percent (50%) of the maximum Contract price has
been completed, the Owner may elect, in lieu of paying ninety
percent (90%) of each such subsequent estimate, to pay each such
subsequent estimate in full. Upon completion by the Bidder of the
construction of the Project, the Engineer will prepare an inventory
of the Project showing the total number and character of
Construction Units and, after checking such inventory with the
Bidder, will certify it to the Owner. Upon the approval by the Owner
and the Administrator of a Certificate of Completion--Contract
Construction, RUS Form 187, showing the total cost of the
construction performed, the Owner shall make payment to the Bidder
of all amounts to which the Bidder shall be entitled thereunder
which shall not have been paid: Provided, however, that such final
payment shall be made not later than ninety (90) days after the date
of Completion of Construction of the Project, as specified in the
Certificate of Completion, unless withheld because of the fault of
the Bidder.
b. The Bidder shall be paid on the basis of the number of
Construction Units actually installed at the direction of the Owner
shown by the inventory based on the staking sheets or structure
lists; Provided, however, that the total cost shall not exceed the
maximum Contract price for the construction of the Project as set
forth in the Acceptance plus the costs of any additional change
orders, unless such excess shall have been approved in writing by
the Owner.
c. Notwithstanding the provisions of Section 1.a above, the
Bidder may, by giving written notice thereof to the Owner, elect to
receive payment in full for any Section of the Project upon:
(1) completion of such Section as certified by the Engineer and
approved by the Owner;
(2) submission to the Owner of the releases of lien and the
certificate referred to in Section 2 hereof;
(3) approval by the Owner of the inventory in respect of such
Section; and
(4) submission to the Owner and the Administrator of the consent
in writing by the Surety or Sureties, if any, on the Contractor's
Bond to payment in full for such Section prior to Completion of the
Project. If no Sections are designated in Article II, Section 1c,
the term ``Section'' shall mean for purposes of this subsection c
and Article IV, Section 3b only, a part of the Project as designated
by the Owner which represents at least twenty-five percent (25%) of
the maximum Contract price as stated in Article III, Section 1, and
which is capable of being energized and operated by the Owner.
d. Interest at the rate of ____ percent\1\ (____%) per annum
shall be paid by the Owner to the Bidder on all unpaid balances due
on monthly estimates, commencing fifteen (15) days after the due
date; provided the delay in payment beyond the due date is not
caused by any condition within the control of the Bidder. The due
date for purposes of such monthly payment or interest on all unpaid
balances shall be the fifteenth (15) day of each calendar month
provided (1) the Bidder on or before the fifth (5) day of such month
shall have submitted its certification of Construction Units
completed during the preceding month and (2) the Owner on or before
the fifteenth (15) day of such month shall have approved such
certification. If, for reasons not due to the Bidder's fault, such
approval shall not have been given on or before the fifteenth (15)
day of such month, the due date for purposes of this subsection d
shall be the fifteenth (15) day of such month notwithstanding the
absence of the approval of the certification.
\1\The Owner shall insert a rate equal to the lowest ``Prime
Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued.
---------------------------------------------------------------------------
e. Interest at the rate of ____ percent\2\ (____%) per annum
shall be paid by the Owner to the Bidder on the final payment for
the Project or any completed Section thereof, commencing fifteen
(15) days after the due date. The due date for purposes of such
final payment or interest on all unpaid balances shall be the date
of approval by the Owner of all of the documents requiring such
approval, as a condition precedent to the making of final payment,
or ninety (90) days after the date of Completion of Construction of
the Project, as specified in the Certificate of Completion,
whichever date is earlier.
\2\See Footnote 1.
---------------------------------------------------------------------------
f. No payment shall be due while the Bidder is in default in
respect of any of the provisions of this Contract and the Owner may
withhold from the Bidder the amount of any claim by a third party
against either the Bidder or the Owner based upon an alleged failure
of the Bidder to perform the work hereunder in accordance with the
provisions of this Contract.
Section 2. Release of Liens and Certificate of Contractor. (See
RUS Form 224, Waiver and Release of Lien and RUS Form 231,
Certificate of Contractor). Upon the completion by the Bidder of the
construction of the Project (or any Section thereof if the Bidder
shall elect to receive payment in full for any Section when
completed as provided above) but prior to final payment to the
Bidder, the Bidder shall deliver to the Owner, in duplicate,
releases of all liens and of rights to claim any lien, in the form
attached hereto from all manufacturers, material suppliers, and
subcontractors furnishing services or materials for the Project or
such Section and a certificate in the form attached hereto to the
effect that all labor used on or for the Project or such Section has
been paid and that all such releases have been submitted to the
Owner.
Section 3. Payments to Material Suppliers and Subcontractors.
The Bidder shall pay each material supplier, if any, within five (5)
days after receipt of any payment from the Owner, the amount thereof
allowed the Bidder for and on account of materials furnished or
construction performed by each material supplier or each
subcontractor.
Article IV--Particular Undertakings of the Bidder
Section 1. Protection to Persons and Property. The Bidder shall
at all times take all reasonable precautions for the safety of
employees on the work and of the public, and shall comply with all
applicable provisions of Federal, State, and Municipal safety laws
and building and construction codes, as well as the safety rules and
regulations of the Owner. All machinery and equipment and other
physical hazards shall be guarded in accordance with the ``Manual of
Accident Prevention in Construction'' of the Associated General
Contractors of America unless such instructions are incompatible
with Federal, State, or Municipal laws or regulations.
The following provisions shall not limit the generality of the
above requirements:
a. The Bidder shall at no time and under no circumstances cause
or permit any employee of the Bidder to perform any work upon
energized lines, or upon poles carrying energized lines, unless
otherwise specified in the Notice and Instructions to Bidders.
b. The Bidder shall so conduct the construction of the Project
as to cause the least possible obstruction of public highways.
c. The Bidder shall provide and maintain all such guard lights
and other protection for the public as may be required by applicable
statutes, ordinances and regulations or by local conditions.
d. The Bidder shall do all things necessary or expedient to
properly protect any and all parallel, converging and intersecting
lines, joint line poles, highways and any and all property of others
from damage, and in the event that any such parallel, converging and
intersecting lines, joint line poles, highways or other property are
damaged in the course of the construction of the Project the Bidder
shall at its own expense restore any or all of such damaged property
immediately to as good a state as before such damage occurred.
e. Where the right-of-way of the Project traverses cultivated
lands, the Bidder shall [[Page 10235]] limit the movement of its
crews and equipment so as to cause as little damage as possible to
crops, orchards or property and shall endeavor to avoid marring the
lands. All fences which are necessarily opened or moved during the
construction of the Project shall be replaced in as good condition
as they were found and precautions shall be taken to prevent the
escape of livestock. Except as otherwise provided in the
descriptions of underground plowing and trenching assembly units,
the Bidder shall not be responsible for loss of or damage to crops,
orchards or property (other than livestock) on the right-of-way
necessarily incident to the construction of the Project and not
caused by negligence or inefficient operation of the Bidder. The
Bidder shall be responsible for all other loss of or damage to
crops, orchards, or property, whether on or off the right-of-way,
and for all loss of or damage to livestock caused by the
construction of the Project. The right-of-way for purposes of this
said section shall consist of an area extending ____ feet on both
sides of the center line of the poles along the route of the Project
lines, plus such area reasonably required by the Bidder for access
to the route of the Project lines from Public roads to carry on
construction activities.
f. The Project, from the commencement of work to completion, or
to such earlier date or dates when the Owner may take possession and
control in whole or in part as hereinafter provided shall be under
the charge and control of the Bidder and during such period of
control by the Bidder all risks in connection with the construction
of the Project and the materials to be used therein shall be borne
by the Bidder. The Bidder shall make good and fully repair all
injuries and damages to the Project or any portion thereof under the
control of the Bidder by reason of any act of God or other casualty
or cause whether or not the same shall have occurred by reason of
the Bidder's negligence.
(i) To the maximum extent permitted by law, Bidder shall defend,
indemnify, and hold harmless Owner and Owner's directors, officers,
and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Bidder's employees) and loss, damage to or destruction of
Owner's property or the property of any other person or entity
(including but not limited to Bidder's property) in any manner
arising out of or connected with the Contract, or the materials or
equipment supplied or services performed by Bidder, its
subcontractors and suppliers of any tier. But nothing herein shall
be construed as making Bidder liable for any injury, death, loss,
damage, or destruction caused by the sole negligence of Owner.
(ii) To the maximum extent permitted by law, Bidder shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Bidder, its subcontractors and suppliers of
any tier, and from all losses, demands, and causes of action arising
out of any such lien or claim. Bidder shall promptly discharge or
remove any such lien or claim by bonding, payment, or otherwise and
shall notify Owner promptly when it has done so. If Bidder does not
cause such lien or claim to be discharged or released by payment,
bonding, or otherwise, Owner shall have the right (but shall not be
obligated) to pay all sums necessary to obtain any such discharge or
release and to deduct all amounts so paid from the amount due
Bidder.
(iii) Bidder shall provide to Owner's satisfaction evidence of
Bidder's ability to comply with the indemnification provisions of
subparagraphs i and ii above, which evidence may include but may not
be limited to a bond or liability insurance policy obtained for this
purpose through a licensed surety or insurance company.
g. Any and all excess earth, rock, debris, underbrush and other
useless materials shall be removed by the Bidder from the site of
the Project as rapidly as practicable as the work progresses.
h. Upon violation by the Bidder of any of the provisions of this
section, after written notice of such violation given to the Bidder
by the Engineer or the Owner, the Bidder shall immediately correct
such violation. Upon failure of the Bidder so to do the Owner may
correct such violation at the Bidder's expense: Provided, however,
that the Owner may, if it deems it necessary or advisable, correct
such violation at the Bidder's expense without such prior notice to
the Bidder.
i. The Bidder shall submit to the Owner monthly reports in
duplicate of all accidents, giving such data as may be prescribed by
the Owner.
j. The Bidder shall not proceed with the cutting of trees or
clearing of right-of-way without written notification from the Owner
that proper authorization has been received from the owner of the
property, and the Bidder shall promptly notify the Owner whenever
any landowner objects to the trimming or felling of any trees or the
performance of any other work on its land in connection with the
Project and shall obtain the consent in writing of the Owner before
proceeding in any such case.
k. The Bidder will furnish, prior to the commencement of
underground distribution construction, proof, satisfactory to the
Owner, of compliance with requirements of highway and road
authorities having jurisdiction, including without limitation, the
furnishing of a bond or other guaranty, and approval by such
authorities of the equipment and methods of construction and repair
to be used by the Bidder.
Section 2. Insurance. The Bidder shall take out and maintain
throughout the period of this Agreement the following types and
minimum amounts of insurance:
a. Workers' compensation and employers' liability insurance, as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to the workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
b. Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million each occurrence, and $1 million aggregate for
accidents during the policy period. A single limit of $1 million of
bodily injury and property damage is acceptable. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
c. Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million per person and $1 million each occurrence, and property
damage limits of $1 million for each occurrence. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
The Owner shall have the right at any time to require public
liability insurance and property damage liability insurance greater
than those required in subsection ``b'' and ``c'' of this Section.
In any such event, the additional premium or premiums payable solely
as the result of such additional insurance shall be added to the
Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3. Delivery of Possession and Control to Owner.
a. Upon written request of the Owner the Bidder shall deliver to
the Owner full possession and control of any portion of the Project
provided the Bidder shall have been paid at least ninety percent
(90%) of the cost of construction of such portion. Upon such
delivery of the possession and control of any portion of the Project
to the Owner, the risk and obligations of the Bidder as set forth in
Article IV, Section 1f hereof with respect to such portion of the
Project so delivered to the Owner shall be terminated; Provided,
however, that nothing herein contained shall relieve the Bidder of
any liability with respect to defective materials and workmanship as
contained in Article II, Section 6 hereof.
b. Where the construction of a Section as hereinbefore defined
in Article II, Section 1c and Article III, Section 1c shall have
been completed by the Bidder, the Owner agrees, after receipt of a
written request from the Bidder, to accept delivery of possession
and control of such Section upon the issuance by the Engineer of a
written statement that the [[Page 10236]] Section has been inspected
and found acceptable by the Engineer. Upon such delivery of the
possession and control of any such Section to the Owner, the risk
and obligations of the Bidder as set forth in Article IV, Section 1f
hereof with respect to such Section so delivered to the Owner shall
be terminated: Provided, however, that nothing herein contained
shall relieve the Bidder of any liability with respect to defective
materials or workmanship as contained in Article II, Section 6
hereof.
Section 4. Energizing the Project.
a. Prior to Completion of the Project the Owner, upon written
notice to the Bidder, may test the construction thereof by
temporarily energizing any portion or portions thereof. During the
period of such test the portion or portions of the Project so
energized shall be considered as within the possession and control
of the Owner and governed by the provisions of Section 3 of this
Article. Upon written notice to the Bidder by the Owner of the
completion of such test and upon deenergizing the lines involved
therein said portion or portions of the Project shall be considered
as returned to the possession and control of the Bidder unless the
Owner shall elect to continue possession and control in the manner
provided in Section 3 of this Article.
b. The Owner shall have the right to energize permanently any
portion or portions of the Project delivered to its possession and
control pursuant to the provisions of Section 3 of this Article.
Section 5. Assignment of Guarantees. All guarantees of materials
and workmanship running in favor of the Bidder shall be transferred
and assigned to the Owner prior to the time the Bidder receives
final payment.
Article V--Remedies
Section 1. Completion on Bidder's Default. If default shall be
made by the Bidder or by any subcontractor in the performance of any
of the terms of this Proposal, the Owner, without in any manner
limiting its legal and equitable remedies in the circumstances, may
serve upon the Bidder and the Surety or Sureties, if any, upon the
Contractor's Bond or Bonds a written notice requiring the Bidder to
cause such default to be corrected forthwith. Unless within twenty
(20) days after the service of such notice upon the Bidder such
default shall be corrected or arrangements for the correction
thereof satisfactory to both the Owner and the Administrator shall
be made by the Bidder or its Surety or Sureties, if any, the Owner
may take over the construction of the Project and prosecute the same
to completion by Contract or otherwise for the account and at the
expense of the Bidder, and the Bidder and its Surety or Sureties, if
any, shall be liable to the Owner for any cost or expense in excess
of the Contract price occasioned thereby. In such event the Owner
may take possession of and utilize, in completing the construction
of the Project, any materials, tools, supplies, equipment,
appliances, and plant belonging to the Bidder or any of its
subcontractors, which may be situated at the site of the Project.
The Owner in such contingency may exercise any rights, claims or
demands which the Bidder may have against third persons in
connection with this Contract and for such purpose the Bidder does
hereby assign, transfer and set over unto the Owner all such rights,
claims and demands.
Section 2. Liquidated Damages. The time of the Completion of
Construction of the Project is of the essence of the Contract.
Should the Bidder neglect, refuse or fail to complete the
construction within the time herein agreed upon, after giving effect
to extensions of time if any, herein provided, then, in that event
and in view of the difficulty of estimating with exactness damages
caused by such delay, the Owner shall have the right to deduct from
and retain out of such moneys which may be then due, or which may
become due and payable to the Bidder the sum of ________ dollars
(________) per day for each and every day that such construction is
delayed in its completion beyond the specified time, as liquidated
damages and not as a penalty; if the amount due and to become due
from the Owner to the Bidder is insufficient to pay in full any such
liquidated damages, the Bidder shall pay to the Owner the amount
necessary to effect such payment in full: Provided, however, that
the Owner shall promptly notify the Bidder in writing of the manner
in which the amount retained, deducted or claimed as liquidated
damages was computed.
Section 3. Cumulative Remedies. Every right or remedy herein
conferred upon or reserved to the Owner or the Government or the
Administrator shall be cumulative, shall be in addition to every
right and remedy now or hereafter existing at law or in equity or by
statute and the pursuit of any right or remedy shall not be
construed as an election: Provided, however, that the provisions of
Section 2 of this Article shall be the exclusive measure of damages
for failure by the Bidder to complete the construction of the
Project within the time herein agreed upon.
Article VI--Miscellaneous
Section 1. Definitions.
a. The term ``Administrator'' shall mean the Administrator of
the Rural Utilities Service of the United States of America and his
duly authorized representative or any other person in whom or
authority in which may be vested the duties and functions which the
Administrator is now authorized by law to perform.
b. The term ``Engineer'' shall mean the Engineer employed by the
Owner, to provide engineering services for the Project and said
Engineer's duly authorized assistants and representatives.
c. The term ``Supervisor'' shall mean the person, if any,
appointed by the Administrator as the representative of the
Government under the provisions of the Loan Contract providing for
such appointment in special cases. The term is limited to such
special representative of the Government, if any, who is responsible
exclusively to the Administrator and does not refer to the Manager
or any other person employed by the Owner and responsible to it.
d. The term ``Project'' shall mean the rural electric system, or
portion thereof, described in the Plans and Specifications,
Construction Drawings.
e. The term ``Completion of Construction'' shall mean full
performance by the Bidder's obligations under the Contract and all
amendments and revisions thereof except the Bidder's obligations in
respect of (1) Releases of Liens and Certificate of Contractor under
Article III, Section 2 hereof, (2) the inventory referred to in
Article III, Section 1 hereof, and (3) other final documents. The
term ``Completion of the Project'' shall mean full performance by
the Bidder of the Bidder's obligations under the Contract and all
amendments and revisions thereof. The Certificate of Completion,
signed by the Engineer and approved in writing by the Owner, shall
be the sole and conclusive evidence as to the date of Completion of
Construction and as to the fact of Completion of the Project.
Section 2. Materials and Supplies. In the performance of this
contract there shall be furnished only such unmanufactured articles,
materials, and supplies as have been mined or produced in the United
States, Mexico, or Canada, and only such manufactured articles,
materials, and supplies as have been manufactured in the United
States substantially all from articles, materials, or supplies
mined, produced or manufactured, as the case may be, in the United
States, Mexico, or Canada; provided that other articles, materials,
or supplies may be used in the event and to the extent that the
Administrator shall expressly in writing authorize such use pursuant
to the provisions of the Rural Electrification Act of 1938, being
Title IV of Public Resolution No. 122, 75th Congress, approved June
21, 1938. The Seller agrees to submit to the Purchaser such
certificates with respect to compliance with the foregoing provision
as the Administrator from time to time may require.
Section 3. Patent Infringement. The Bidder shall hold harmless
and indemnify the Owner from any and all claims, suits and
proceedings for the infringement of any patent or patents covering
any materials or equipment used in construction of the Project.
Section 4. Permits for Explosives. All permits necessary for the
handling or use of dynamite or other explosives in connection with
the construction of the Project shall be obtained by and at the
expense of the Bidder.
Section 5. Compliance with Statutes and Regulations. The Bidder
shall comply with all applicable statutes, ordinances, rules, and
regulations pertaining to the work. The Bidder acknowledges that it
is familiar with the Rural Electrification Act of 1936, as amended,
the so-called ``Kick-Back'' Statute (48 Stat. 948), and regulations
issued pursuant thereto, and 18 U.S.C. Secs. 287, 1001, as amended.
The Bidder understands that the obligations of the parties hereunder
are subject to the applicable regulations and orders of Governmental
Agencies having jurisdiction in the premises.
Section 6. Equal Opportunity Provisions.
(a) Bidder's Representations.
The Bidder represents that:
It has ____, does not have ____, 100 or more employees, and if
it has, that it has ____, has not ____ furnished the Equal
Employment Opportunity-Employers Information Report EEO-1, Standard
Form 100, required of employers with 100 or more employees pursuant
to Executive Order 11246 and Title VII of the Civil Rights Act of
1964. [[Page 10237]]
The Bidder agrees that it will obtain, prior to the award of any
subcontract for more than $10,000 hereunder to a subcontractor with
100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100.
The Bidder agrees that if it has 100 or more employees and has
not submitted a report on Standard Form 100 for the current
reporting year and that if this Contract will amount to more than
$10,000, the Bidder will file such report, as required by law, and
notify the owner in writing of such filing prior to the Owner's
acceptance of this Proposal.
(b) Equal Opportunity Clause. During the performance of this
Contract, the Bidder agrees as follows:
(1) The Bidder will not discriminate against any employee or
applicant for employment because of race, color, religion, sex or
national origin. The Bidder will take affirmative action to ensure
that applicants are employed, and that employees are treated during
employment without regard to their race, color, religion, sex or
national origin. Such action shall include, but not be limited to,
the following: Employment, upgrading, demotions or transfer;
recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection of training,
including apprenticeship. The Bidder agrees to post in conspicuous
places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this Equal
Opportunity Clause.
(2) The Bidder will, in all solicitations or advertisements for
employees placed by or on behalf of the Bidder, state that all
qualified applicants will receive consideration for employment
without regard to race, color, religion, sex or national origin.
(3) The Bidder will send to each labor union or representative
of workers, with which it has a collective bargaining agreement or
other contract or understanding, a notice to be provided advising
the said labor union or workers' representative of the Bidder's
commitments under this section, and shall post copies of the notice
in conspicuous places available to employees and applicants for
employment.
(4) The Bidder will comply with all provisions of Executive
Order 11246 of September 24, 1965, and the rules, regulations and
relevant orders of the Secretary of Labor.
(5) The Bidder will furnish all information and reports required
by Executive Order 11246 of September 24, 1965, and by rules,
regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records, and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations, and orders.
(6) In the event of the Bidder's noncompliance with the Equal
Opportunity Clause of this Contract or with any of the said rules,
regulations, or orders, this Contract may be canceled, terminated,
or suspended in whole or in part, and the Bidder may be declared
ineligible for further Government contracts or federally assisted
construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, and such other
sanctions may be imposed and remedies invoked as provided in
Executive Order 11246 of September 24, 1965, or by rule, regulation,
or order of the Secretary of Labor, or as provided by law.
(7) The Bidder will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by the rules,
regulations, or order of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor.
The Bidder will take such action with respect to any subcontract or
purchase order as the administering agency may direct as a means of
enforcing such provisions, including sanctions for noncompliance;
Provided, however, that in the event Bidder becomes involved in, or
is threatened with, litigation with a subcontractor or vendor as a
result of such direction by the administering agency, the Bidder may
request the United States to enter into such litigation to protect
the interests of the United States.
(c) Certificate of Nonsegregated Facilities. The Bidder
certifies that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Bidder certifies further that it will not maintain or provide for
its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Bidder agrees that a breach of this
certification is a violation of the Equal Opportunity Clause in this
Contract. As used in this certification, the term ``segregated
facilities'' means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Bidder agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific
time periods) it will obtain identical certifications from proposed
subcontractors prior to the award of subcontracts exceeding $10,000
which are not exempt from the provisions of the Equal Opportunity
Clause, and that it will retain such certifications in its files.
Section 7. Franchises and Rights-of-Way. The Bidder shall be
under no obligation to obtain or assist in obtaining: Any
franchises, authorizations, permits or approvals required to be
obtained by the Owner from Federal, State, County, Municipal or
other authorities; any rights-of-way over private lands; or any
agreements between the Owner and third parties with respect to the
joint use of poles, crossings, or other matter incident to the
construction and operation of the Project.
Section 8. Nonassignment of Contract. The Bidder shall perform
directly and without subcontracting not less than twenty-five
percent (25%) of the construction of the Project, to be calculated
on the basis of the total Contract price. The Bidder shall not
assign the Contract effected by an acceptance of this Proposal or
any interest in any funds that may be due or become due hereunder or
enter into any contract with any person, firm or corporation for the
performance of the Bidder's obligations hereunder or any part
thereof, without the approval in writing of the Owner and of the
Surety or Sureties, if any, on any bond furnished by the Bidder for
the faithful performance of the Bidder's obligations hereunder. If
the Bidder, with the consent of the Owner and any Surety or Sureties
on the Contractor's Bond or Bonds, shall enter into a subcontract
with any subcontractor for the performance of any part of this
Contract, the Bidder shall be as fully responsible to the Owner and
the Government for the acts and omissions of such subcontractor and
of persons employed by such subcontractor as the Bidder would be for
its own acts and omissions and those of persons directly employed by
it.
Section 9. Extension to Successors and Assigns. Each and all of
the covenants and agreements herein contained shall extend to and be
binding upon the successors and assigns of the parties hereto.
Section 10. Contractor. Upon acceptance of this Proposal, the
successful Bidder shall be the Contractor and all references in the
Proposal to the Bidder shall apply to the Contractor.
________ (Bidder)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
Date ________
The Proposal must be signed with the full name of the Bidder. If
the Bidder is a partnership, the Proposal must be signed in the
partnership name by a partner. If the Bidder is a corporation, the
Proposal must be signed in the corporate name by a duly authorized
officer and the corporate seal affixed and attested by the Secretary
of the Corporation.
Distribution Construction Units--New Construction
Section 1--Pole Units
A pole unit consists of one pole in place. It does not include
pole-top assembly unit or other parts attached to the pole. The
first two digits indicate the length of the pole; the third digit
shows the classification per ANSI (Example: 35-5 means a pole 35
feet long, class 5.)
Species of Timber: ________
Kind of Preservative: (Check one)
1. Creosote ____; 2. Pentachlorophenol ____; 3. Copper Naphthenate
____; 4. Waterborne preservative--CCA ____ ACZA ____
Method of Treatment: (Check one)
1. Pressure ____; 2. Thermal Process ____
[[Page 10238]] Pole Plan Under Which the Poles are to be
Furnished: (Check one)
1. Insured Warranted ____; 2. Independently Inspected ____; 3.
Quality Assured ____; 4. Either Insured Warranted, Independently
Inspected, or Quality Assured ____
(Engineer to complete above)
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Total, Section 1--____________
Section A--Single Phase Pole Top Assembly Units
A pole top assembly unit consists of the hardware, crossarms,
and their appurtenances, insulators, etc., except tie wire, required
to support the primary conductors. It does not include the pole.
Crossarm pins include washer, nut, and locknut.
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Total, Section A--____________
Section B--V Phase Pole Top Assembly Units
A pole top assembly units consists of the hardware, crossarms,
and their appurtenances, insulators, etc., except tie wire, required
to support the primary conductors. It does not include the pole.
Crossarm pins include washer, nut, and locknut.
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Total, Section B--____________
Section C--Three Phase Pole Top Assembly Units
A pole top assembly unit consists of the hardware, crossarms,
and their appurtenances, insulators, etc., except tie wire, required
to support the primary conductors. It does not include the pole.
Crossarm pins include washer, nut, and locknut.
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Total, Section C--____________
Section D--Conductor Assembly Units
A conductor assembly unit consists of 1,000 feet of conductor or
cable for primaries, secondaries or services, and includes tie
wires, sleeves for splicing, connectors, and armor rods with clips
or armor wire where necessary.
Tree trimming necessary for installing services and secondaries
on poles not carrying primary line is included with the conductor
assembly unit and shall be performed in accordance with the
directions of the Engineer. The service shall be connected to the
secondary or transformer and 2 feet of conductor or cable shall be
left for connecting to the consumer's service entrance. In computing
the compensation to the Bidder for conductor assembly units only the
horizontal distance between conductor supports or pole stakes shall
be used. The conductor or cable sizes and types listed are the
manufacturer's designation.
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[[Page 10239]] Total, Section D--____________
Section E--Guy Assembly Units
A guy assembly unit consists of the hardware and wire, and guy
insulator where necessary. An overhead guy assembly consists of an
overhead guy, a pole, and a down guy, each of which is listed
separately. Guy markers are designated separately.
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E
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Total, Section E--____________
Section F--Anchor Assembly Units
An anchor assembly unit consists of the anchor with rod
complete, ready for attaching the guy wire.
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F
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Total, Section F--____________
Section G--Transformer Assembly Units
A transformer assembly units consists of the transformer, its
protective equipment, and its hardware and leads with their
connectors and supporting insulators and pins. this units does not
include the pole top, secondary, service, or grounding assemblies.
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Total, Section G--____________
Section J--Secondary Assembly Units
A secondary assembly unit consists of the hardware, insulators,
etc., to support the secondary conductors or cable. It does not
include the secondary conductor or cable, or any hardware,
insulators, etc. required to support service conductors or cable.
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J
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Total, Section J--____________
Section K--Service Assembly Units
A service assembly unit consists of the hardware, insulators,
etc., required to support the service conductors or cable. It does
not include the service conductor or cable, or any hardware,
insulators, etc., required to support secondary conductors or cable.
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K
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Total, Section K--____________
Section M--Miscellaneous Assembly Units
A miscellaneous assembly unit consists of an additional unit
needed in the Project for new line construction but not otherwise
listed in the Proposal. This section includes grounding assemblies
consisting of the conductor, ground rod, grounding plate, connectors
and clamps as shown on the respective drawings for the various
types. It also includes fuse cutouts, reclosers, sectionalizers,
switches, capacitors, regulators, metering and other assembly units.
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M
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Total, Section M--____________
Section R--Right-of-Way Clearing Units
R1-10. The unit is 1,000 feet in length and 10 feet in width (to
be measured on one side of the pole line) of actual clearing of
right-of-way. This includes clearing of underbrush, tree removal,
and such tree trimming as is required so that the right-of-way,
except for tree stumps which shall not exceed ________ in height,
shall be clear from the ground up on one side of the line of poles
carrying primary conductors of the width specified. This unit does
not include clearing or trimming associated with secondaries or
services which is included with conductor units. The segmental
length of actual clearing shall be measured in a straight line
parallel to the transmission centerline using the maximum dimension
of foliage cleared and projected to the ground line. All trees and
underbrush across this width of the right-of-way shall be considered
to be grouped together as a single length in measuring the total
length of clearing. Spaces along the right-of-way in which no trees
are to be removed or trimmed or underbrush cleared shall be omitted
from the total measurement. All length thus arrived at, added
together and divided by 1,000, shall give the number of 1,000-foot
R1-10 units of clearing. This unit includes the removal or topping,
at the option of the Bidder, of danger trees outside of the right-
of-way when so designated by the Engineer. (Danger trees are defined
as dead or leaning trees which, in falling, will affect the
operation of the line.) The Bidder shall not remove or trim shade,
fruit, or ornamental trees unless so directed by the Engineer.
R1-20. This unit is identical with R1-10 except that the width
is 20 feet (to be measured 10 feet on each side of the pole line).
R1-30. This unit is identical with R1-10 except that the width
is 30 feet (to be measured 15 feet on each side of the pole line).
R1-40. This unit is identical with R1-10 except that width is 40
feet (to be measured 20 feet on each side of the pole line).
RC1-10, RC1-20, RC1-30, RC1-40. These units are identical to the
respective R1 units except that chemical treatment of stumps is
required in addition to the clearing of underbrush, tree removal and
tree trimming.
Additional Requirements (When specifying R1 units denote type of
disposal (A or B).)
A. Trees, brush, branches and refuse shall, without delay, be
disposed of by one of the following methods as the Engineer will
direct (Engineer to strike out methods not to be used):
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (describe) ________
B. Trees that are felled shall be cut to commercial wood
lengths, stacked neatly, and left on the right-of-way for the
landowner. Commercial wood length means the length designated by the
Engineer but in no case shall it be required to be less than ____
(____) feet. Brush, branches, and refuse shall, without delay, be
disposed of by such of the following methods as the Engineer will
direct (Engineer to strike out methods not to be used):
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (describe) ________
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R
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Total, Section R--____________
Section UD--Underground Cable Assembly Units
An underground cable assembly unit consists of 1,000 feet of
cable for underground primaries, secondaries or services. It does
not include the conduit, plowing, trenching and backfilling, or the
termination of the primary cable which are provided for in other
assembly units. It includes the termination, connection and sealing
of secondary and service cables and conductors as shown in the
specifications and construction drawings, and all primary, secondary
and service cable splices (buried cable may be spliced only when and
where permitted by the Owner3,4.) In computing the compensation
to the Bidder for underground cable assembly units, only the
distance between stakes, paralleling the cable shall be used. The
number of units so computed will include all cable installed in
place in all specified trenches, risers, conduits, crossings,
manholes, transformers, terminal housings and meter boxes.5 The
conductor or cables listed are the manufacturer's designation of
types, size, voltage rating and material. The Bidder and the Owner
shall jointly perform cable acceptance tests on installed cable in
accordance with the specifications using test equipment furnished by
the ________. (Engineer to insert Owner or Bidder). [[Page 10240]]
\3\____ Engineer check here if primary splices are permitted.
\4\____ Engineer check here if secondary and service splices are
permitted.
\5\____ Engineer check here if 12 feet of service conductor is
to be left as a coil 3 feet from the building with ends capped
instead of connection to meter box.
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UD
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Total, Section UD____________
Section UG--Underground Transformer Assembly Units
An underground transformer assembly unit consists of the
transformer, its housing, warning sign, switches, over-current
protective devices, grounding loop, and hardware and leads with
their connectors and supporting insulators installed in place. This
unit includes the cable terminations but does not include lightning
arresters, fault indicators, ground rods or trenching. For
submersible transformers, it includes the cable terminations, the
enclosure and cover, drainable material (when specified6), and
the excavation when required. For pad-mount transformers, it does
not include the pad, site preparation, drainable material,
backfilling or compaction which are included in the pad assembly
units. [[Page 10241]]
\6\____ Engineer check here if drainable material is specified.
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UG
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Total, Section UG--____________
Section UK--Underground Secondary and Service Assembly Units
An underground secondary and service assembly unit consists of
secondary or service cable terminal housing mounted in place. It
includes the power pedestal, stake (when required), mounting
hardware, warning sign, directional marker, housing identification
marking and the cable identification tags. It does not include the
cable terminations, ground rod, or pad, when required.
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UK
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Total, Section UK ____________
Section UM--Miscellaneous Underground Assembly Units
A miscellaneous underground assembly unit consists of an
additional unit needed in the Project for new construction but not
otherwise listed in the Proposal. This section includes the
miscellaneous assembly units as shown on the respective underground
construction drawings. Where miscellaneous units consist of or
include a primary cable termination, the unit includes the
preparation of the cable to accommodate the termination, the stress
cone and the connection of the cable to the terminal equipment. Pad
assembly units are in this section and include the site preparation,
bedding, drainable material when specified, cable slot, backfilling,
tamping and the pad in place.
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UM
----------------------------------------------------------------------------------------------------------------
Total, Section UM--____________
Section UR--Underground Excavation Assembly Units
UR 1-S(d) Plowing Assembly Unit, Soil--Consists of one (1)
lineal foot of plowing in soil, measured parallel to the surface of
the ground, to a specified depth (D), in inches, including the
compacting, except as specifically provided for in other units. This
unit includes all material and labor required in the repair and/or
replacement of streets, roads, drives, fences, lawns, shrubbery,
watermains, pipes, pipelines and contents, underground power and
telephone facilities, buried sewerage and drainage facilities, and
any other property damaged during the plowing of the cable, except
as specifically provided for in other units. This unit does not
include underground cable facilities installed in the slot.
Note: Where in the judgment of the Owner greater than normal
difficulty will be involved in plowing because of the presence of
underground facilities of other utilities, this unit will be
suffixed by the letter ``T''. This will be applicable only in those
areas predesignated by the Owner on the detail maps herein. All
plowing outside of the predesignated area on the map, regardless of
the difficulty in placement actually experienced, will be
inventoried as the regular UR 1-S(D) units. If field conditions show
the existence of rock to prevent the placing of the cable in soil to
the depth required in the specifications, the Owner may specify UR
2-R units. Where more than one cable is to be installed in the slot,
the UR1-S unit designation should be modified by a suffix
corresponding to the number of cables installed. Example: UR1-S(D)
3c for 3 cables plowed at one time.
UR 2-S(D&W) Trenching Assembly Unit, Soil--Consists of one (1)
lineal foot of trenching in soil, measured parallel to the surface
of the ground, to a specified depth (D) and width (W), in inches,
including the excavation, and backfilling and compacting. This unit
includes all material and labor required in the repair and/or
replacement of streets, roads, drives, fences, lawns, shrubbery,
watermains, pipes, pipelines and contents, under-ground power and
telephone facilities, buried sewerage and drainage facilities, and
any other property damaged by the trenching, except as specifically
provided for in other units. This unit does not include underground
cable facilities installed in the trench or cable bedding assembly
units, when required.
Note: Where in the judgment of the Owner greater than normal
difficulty will be involved in trenching because of the presence of
underground facilities of other utilities, this unit will be
suffixed by the letter ``T''. This will be applicable only in those
areas predesignated by the Owner on the detail maps herein. Where
more than one cable is to be installed in the trench, the regular UR
2-S unit designation should be modified by a suffix corresponding to
the construction drawing for the type of cable placement desired.
UR 2-R (D&W) Trenching Assembly Unit, Rock--Consists of one (1)
lineal foot of trenching in rock, measured parallel to the surface
of the ground, to specified depth (D) and width(W), in inches,
including the excavation, and backfilling and compacting to place
cable to the depth specified in the Specifications. This unit will
be specified by the Owner only when field conditions at the site
show the existence of rock at a depth preventing the placing of the
cable in soil to the depths required in the Specifications. This
unit includes all material and labor required in the repair and/or
replacement of [[Page 10242]] streets, roads, drives, fences, lawns,
shrubbery, watermains, pipes, pipelines and contents, underground
power and telephone facilities, buried sewerage and drainage
facilities, and any other property damaged by the trenching, except
as specifically provided for in other units. This unit does not
include underground cable facilities installed in the trench or
cable bedding assembly units, when required.
UR-3 Cable Bedding Assembly Unit--Consists of one (1) lineal
foot of a 2-inch bed of clean sand or soil placed in the trench
under the cable and a 4-inch layer of clean sand or soil backfill
over the cable to the width of the trench.
Note: The exact location and number of units shall be determined
by the Owner after the trenches are open in those areas where rock
or other conditions make special bedding necessary.
UR-4a Pavement Assembly Unit, Asphalt--Consists of the labor and
material necessary to remove and restore one (1) lineal foot of
asphalt pavement, measured along the route of the cable. All work
shall be performed in accordance with the requirements of state or
local authorities. Any trenching which may be necessary is included
in this unit.
UR-4c Pavement Assembly Unit, Concrete--Consists of the labor
and material necessary to remove and restore one (1) lineal foot of
concrete pavement, measured along the route of the cable. All work
shall be performed in accordance with the requirements of state or
local authorities. Any trenching which may be necessary is included
in this unit.
UR-5( ) Underground Pipe Crossing Assembly Unit--Consists of one
(1) lineal foot of steel pipe, of the inside diameter, in inches,
specified in the last digit of the assembly unit designation,
installed in place. This unit includes the pushing of pipe and any
excavation, backfilling and tamping necessary for the installation
of the pipe. The pipe will be installed at the depth specified by
the Owner. Underground cable installed in the pipe is not included
in this unit.
UR-6 Underground Nonpipe Crossing Assembly Unit--Consists of the
labor in providing a hole in soil one (1) foot in length of a
diameter sufficient to accommodate the cable to be installed
therein. The depth of the hole below the surface of the ground shall
be specified by the Owner. This unit includes any excavation,
backfilling and tamping necessary for the installation. This unit
may be used where the permanent installation of a steel pipe under
the UR-5 unit is not required. Underground cable installed in the
hole is not included in this unit.
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor & labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
UR
----------------------------------------------------------------------------------------------------------------
Total, Section UR--____________
Distribution Construction Units--Line Changes
The general heading of Line Changes applies to the changing of
existing lines or portion thereof from their existing phasing, wire
size, and type to new phasing, wire size, and type and the removal
of existing lines or portion thereof and replacing with new lines in
close proximity thereto. In general line changes involve three types
of assembly units as follows:
Section H--Conversion assembly units;
Section I--Removal assembly units;
Section N--New construction assembly units on existing lines or in
replacing lines.
The assembly units that are included in Section H, I, and N are
defined by symbols and descriptions which follow together with the
applicable descriptions included under New construction. Where the
descriptions are not correct or sufficiently explicit, or when
special units are not covered by Construction Drawings, descriptions
have been provided by the Engineer in the respective sections.
Work included in these sections shall be performed under the
schedule as set forth below: ________.
Schedule of Deenergization of Existing Distribution Lines Under Which
Work Under Sections H, I, and N Shall be Performed
------------------------------------------------------------------------
Line section (To be designated by Hours and days of week when lines
point to point description on will be deenergized to permit line
detail map) changes
------------------------------------------------------------------------
------------------------------------------------------------------------
The Bidder will so plan and perform its work on the above lines
that it will be possible for the Owner to safely reenergize all
lines involved at the expiration of the time limits set up in the
above schedule to resume service to all consumers being served prior
to deenergization. Prior to commencement of work each day on lines
to be deenergized, the Bidder will notify the Owner in writing
thereof, designating the lines to be deenergized and upon receipt of
such notice, the Owner will deenergize such lines. Upon completion
of work each day on such deenergized lines, the Bidder will notify
the Owner thereof in writing or in such other manner as the
circumstances permit designating the lines to be reenergized and
stating that such lines may be safely reenergized and upon receipt
of such notice, the Owner will reenergize such lines.
Section H--Conversion Assembly Units
Conversion assembly units are pole-top assemblies and cover the
furnishing of all labor and additional materials for changing an
existing assembly unit to a new assembly unit, utilizing certain
items of materials of the existing assembly unit on poles to be left
in place. The unit prices for materials should include only
additional material that is required to complete the new unit, less
suitable allowance for material removed. Any materials removed from
the existing assembly units which are not required in the
construction of the conversion assembly unit become the property of
the Bidder and may, with the permission of the Engineer, be reused
by the Bidder in the construction of other assembly units called for
in the Construction Contract. Conversion assembly units are
specified by the prefix H with the new construction assembly unit
designation shown first and the existing assembly unit designation
shown last. For example, a H B1-A1 signifies the conversion of an
existing A1 assembly unit to a B1 assembly unit (as was defined in
the description of construction assembly units). In this instance
the Bidder utilizes the existing pin-type insulator, single upset
bolt and neutral spool in the construction of the new assembly unit.
The Bidder furnishes the additional crossarm, crossarm pins, braces,
machine bolt, carriage bolts, lag screw, and insulator required for
the new unit. The Bidder takes possession of the pole-top pin and
two machine bolts and with the permission of the Engineer may reuse
these elsewhere in the construction of the Project. The Bidder will
not be held accountable to the Owner for the materials he so
acquires.
The Conversion assembly units also include the furnishing of all
labor and materials in the transferring, resagging and retying of
conductors from one position on the pole to a different position on
the pole where such transfers are required. Where replacement of
conductor is required, the existing conductor will be removed under
Section I and the new conductor installed under Section N.
Where replacement of a pole is required, the existing pole and
pole-top assembly will be removed under Section I and the new pole
and pole-top assembly will be installed according to Section N and
no H units will be involved.
Conversion assemblies are listed in three subsections for
converting pole-top assemblies from single to V phase, single to
three phase, and V to three phase. The following descriptions apply
to only those units not sufficiently explicit.
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
H
------------------------------------------------------------------------
Section H--Conversion Assembly Units
Subsection H (B-A) 1 Phase to V Phase
[[Page 10243]]
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor & labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
H
----------------------------------------------------------------------------------------------------------------
Total, Section H (B-A)--____________
Section H--Conversion Assembly Units
Subsection H (C-A) 1 Phase to 3 Phase
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor & labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
H
----------------------------------------------------------------------------------------------------------------
Total, Subsection H (C-A)----____________
Section H--Conversion Assembly Units
Subsection H (C-B) V Phase to 3 Phase
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor & labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
H
----------------------------------------------------------------------------------------------------------------
Total, Subsection H (C-B)--____________
Total, Subsection H (B-A)--____________
Total, Subsection H (C-A)--____________
Total, Section H--____________
Section I--Removal Assembly Units
Removal assembly units cover the furnishing of all labor for the
removal of existing units of construction from existing lines,
disassembling into material items, and all labor and transportation
for the returning of all materials to the warehouse of the Owner in
an orderly manner or transporting elsewhere to the site of the
Project for reuse in the prosecution of this Contract as approved by
the Engineer.
The Bidder will be charged by the Owner for the full value of
all materials removed under this section at the value shown in Table
C. Such charges will be placed against the Bidder as units are
removed and the value will be deducted from the total value of
installed assembly units for determination of the work accomplished
for purposes of monthly progress payments to the Bidder.
Of the materials listed in Table C to be removed from existing
lines, certain materials will be reused in the construction of the
Project. Such materials to be reused are listed in Table C-1.
Materials other than those listed in Table C-1 shall, if not damaged
in handling, be returned to the Owner for full credit at the values
shown in Table D. The Bidder will be allowed full credit for all
material items, other than those listed in Table C-1, returned to
the Owner which, in the opinion of the Engineer, were not damaged by
the Bidder in removal and handling even though the materials may not
be reusable for reasons of obsolescence or deterioration. Such
credits shall be allowed the Bidder as materials are returned to the
Owner's warehouse and shall be added to the total value of installed
assembly units for determination of the work accomplished for
purposes of monthly progress payments to the Bidder.
The unit removal prices shall include all material and labor
required to reinstall in accordance with specifications any
conductors temporarily detached. The Bidder will reinstall at his
own expense any other units removed by him for his own convenience.
The removal units are specified by the prefix I and followed by
the assembly unit designation of existing assembly unit to be
removed. For example, an I-A1 signifies the removal of an A1
assembly unit. The following special notes apply to specific removal
units: ________.
a. Poles. All poles of the same height, regardless of pole
class, are designated by the same unit. Thus an I-30-foot pole
signifies the removal of a 30-foot pole of any class. The Bidder is
not required under this unit to remove from the pole any ground wire
or pole numbering attached to the pole. This unit includes the
refilling and tamping of holes in a workmanlike manner unless they
are to be reused.
b. Pole-Top Assemblies. The unit of removal of pole-top
assemblies includes, in addition to the removal of the assembly
itself, any necessary handling, resagging, and retying of conductors
in those cases where an existing pole-top assembly will be removed
and replaced by a new pole-top assembly and where any existing
conductor is to be reused.
The unit of removal of pole-top assemblies also includes any
holding or handling of mainline or tap conductors at tap lines,
angles, and deadends where such is involved, and reinstalling of
such conductor in accordance with the specifications; for example,
an I-A5-4 will include the disconnection of the tap conductors,
snubbing off the tap line at the nearest practical point and the
reconnection and resagging of these tap conductors if necessary to
the new tap assembly when installed. The new unit of construction,
however, will be specified separately in Section N.
c. Conductor. The conductor removal unit covers the removal of
1,000 feet of conductor or cable and reeling or coiling it in a
workmanlike manner in such a way that it can be reused by the Bidder
or the Owner. The Owner will furnish to the Bidder reels if it is to
be returned to the Owner's warehouse on reels. The Bidder will
retain possession of all jumpers, tie wire, armor rods, connectors,
and other conductor accessories removed. These items will not be
returned to the Owner. The removal unit for each size of conductor
or cable is shown by the prefix I followed by D and the conductor or
cable type; thus an I-D-6ACWC signifies the removal unit for 1,000
feet of 6A Copperweld-copper conductor.
d. Guys. All guys regardless of length, type of attachment, or
size of guy strand are specified by the same unit; thus an I-E
signifies the removal of any guy.
e. Anchors. Only anchor rods are to be removed by the Bidder in
anchor removal units. The anchor will be left in the ground; thus an
I-F signifies the removal of any anchor rod. If the rod cannot be
unscrewed, the end of the rod shall either be cut off or bent down
so that the rod will be at least 18 inches below ground.
f. Transformers. The unit for removal of transformer assembly
units is divided into two sections, (1) Conventional Transformer
Assembly, and (2) Self-Protected Transformer
[[Page 10244]] Assembly. Only one unit is specified for each type,
and all sizes of transformers from 1 to 25 kVA within each group
will be covered by the same unit. ``Self-protected'' refers to
transformers where all protective equipment is mounted on or within
the transformer. ``Conventional'' refers to transformers where
protective equipment is mounted separately from the transformer. The
unit is designated by the prefix I followed by the description of
the unit to be removed; thus IG Conventional signifies the removal
of a conventional transformer assembly for any size transformer from
1 to 25 kVA.
g. Secondary Units. The unit for removal of secondary assemblies
includes, in addition to the removal of the assembly itself, all
necessary handling such as untying, resagging, and retying of
secondary conductor or cables where existing secondary conductor or
cable is to be reused.
In addition, the unit for removal of the secondary assembly
includes the handling or holding of any conductor at tap lines where
such is involved, and the reinstalling of such tap conductor in
accordance with the specifications.
h. Service Unit. The unit for removal of service assemblies
includes, in addition to the removal of the assembly itself, all
necessary handling such as untying, resagging, and retying of
service conductor or cable where existing service conductor or cable
is to be reused.
The following descriptions apply only to those removal units not
sufficiently explicit:
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Labor
Unit No. No. of units ---------------------------------------
Unit price Extended price
------------------------------------------------------------------------
------------------------------------------------------------------------
Total, Section I--____________
Table C.--Unit Material Values of I Units Chargeable to Bidder
------------------------------------------------------------------------
Unit No. No. of units Unit material value1 Extended value
------------------------------------------------------------------------
------------------------------------------------------------------------
Notes: 1. Unit values are based on item values from Table D.
Table C-1--Material Items To Be Reused
------------------------------------------------------------------------
RUS Item letter Description of material
designation\1\ item No. of items
------------------------------------------------------------------------
------------------------------------------------------------------------
Notes: 1. See ``List of Materials Acceptable for Use on Systems of RUS
Electrification Borrowers''.
Table D. Values of Material Items Creditable to Bidder
------------------------------------------------------------------------
RUS Item letter Description of material
designation\1\ item Item value
------------------------------------------------------------------------
------------------------------------------------------------------------
Notes: 1. See ``List of Materials Acceptable for Use on Systems of RUS
Electrification Borrowers''.
Section N--New Assembly Units
The purpose of this section is to list complete new units of
construction where such units are to be added to existing lines or
installed in replacing lines.
The units as covered by this section are the same as the units
described in Distribution Construction Units--New Construction,
except that these units are prefixed by the letter N.
For example, an N40-6 unit covers the furnishing of all material
and labor for the installation of a 40-6 pole either in an existing
distribution line being operated by the Owner or in a new line being
constructed to replace an existing distribution line being operated
by the Owner.
The following descriptions apply only to those new units not
sufficiently explicit:
------------------------------------------------------------------------
Unit Description
------------------------------------------------------------------------
------------------------------------------------------------------------
Section N--New Assembly Units
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor & labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
N
----------------------------------------------------------------------------------------------------------------
Total, Section N--____________
Proposal Summary
Recapitulation of Sections
New Construction
Overhead
Section--1 ________ $________
Section--A ________ ________
Section--B ________ ________
Section--C ________ ________
Section--D ________ ________
Section--E ________ ________
Section--F ________ ________
Section--G ________ ________
Section--J ________ ________
Section--K ________ ________
Section--M ________ ________
Section--R ________ ________
Total Overhead ________
Underground
Section--UD ________ $________
Section--UG ________ ________
Section--UK ________ ________
Section--UM ________ ________
Section--UR ________ ________
Total Underground ________
Total New Construction $________
Line Changes
Section--H ________ $________
Section--I ________ ________
Section--N ________ ________
Total Line Changes $________
Total Distribution Line Construction $________
Transmission Construction Units
Section 1--Pole Units
A pole unit consists of one pole in place. It does not include
pole-top assembly unit or other parts attached to the pole. The
first two digits indicate the length of the pole; the third digit
shows the classification per ANSI (Example: 60-3 means a pole 60
feet long, class 3.)
Species of Timber: ________
Kind of Preservative: (Check one)
1. Creosote ____; 2. Pentachlorophenol ____; 3. Copper
Naphthenate ____; 4. Waterborne preservative--CCA ____ ACZA ____
Method of Treatment: (Check one)
1. Pressure ________; 2. Thermal Process ________
Pole Plan Under Which the Poles are to be Furnished: (Check one)
1. Insured Warranted ____; 2. Independently Inspected ____; 3.
Quality Assured ____; 4. Either Insured Warranted, Independently
Inspected, or Quality Assured ____
(Engineer to complete above)
[[Page 10245]]
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor and labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
Total, Section 1--
----------------------------------------------------------------------------------------------------------------
Section 2--Pole Top Assembly Units
A pole top assembly unit consists of the hardware, crossarms and
their appurtenances, insulators, etc., except tie wire, required to
support the power conductors and overhead ground wire. It does not
include the pole, the downlead, and butt coil, which are separate
units.
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor and labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
TH
TP
TS
TSS
TSZ
Total, Section 2--
----------------------------------------------------------------------------------------------------------------
Section 3--Conductor Assembly Units
A conductor assembly unit consists of 1,000 feet of a single
conductor or overhead ground wire, and includes tie wire, sleeves
for splicing, and armor rods with clips or armor wire where
necessary. The length of conductor or overhead ground wire shall be
determined by taking the sum of all straight horizontal span
distances between pole stakes or from center to center of the poles
carrying the conductors. The conductor sizes and types listed are
the manufacturer's designation.
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor and labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
Total, Section 3--
----------------------------------------------------------------------------------------------------------------
As provided for in the specifications, prior to beginning of
work the Bidder will furnish the Engineer the following data on
tension equipment:
Diameter Bull Wheel ________ in.
Diameter Groove ________ in.
Conductor Bending Radius ________ in.
Thickness of Neoprene at Bottom of Groove ________ in.
Stringing Sheave Diameter; Tangent ________ in., Large Angle
________ in.
Section 4--Guy Assembly Units (TG Units)
A guy assembly unit consists of the hardware and wire. Guy
guards are designated separately.
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor and labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
TG-1
TG-2
TG-3
TG-4
TG-5
Total, Section 4--
----------------------------------------------------------------------------------------------------------------
Section 5--Anchor Assembly Units
An anchor assembly unit consists of the anchor with rod or rods,
complete, ready for attaching the guy wire.
[[Page 10246]]
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor and labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
TA-1-5
TA-1-8
TA-3
Total, Section 5--
----------------------------------------------------------------------------------------------------------------
Section 6--Miscellaneous Assembly Units
A miscellaneous assembly unit consists of an additional unit
needed in the Project for line construction but not otherwise listed
in the Proposal.
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor and labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
TM
Total, Section 6--
----------------------------------------------------------------------------------------------------------------
Section 7--Right-of-Way Clearing Units
TM-12. The unit is 1,000 feet in length and ______ (______) feet
in width (to be measured ______ (______) feet on one side of pole
line or centerline of structures) of actual clearing of right-of-
way. This includes clearing of underbrush, tree removal, and such
tree trimming as is required so that the right-of-way, except for
tree stumps which shall not exceed ______ in height, shall be clear
from the ground up on one side of the line of poles carrying
conductors. (See Detail A, Drawing TM-12-2A.) The length of actual
clearing shall be measured in a straight line parallel to the
horizontal line between poles or centerline of structures and across
the maximum dimension of foliage cleared projected to the ground
line. (See Detail B, Drawing TM-12-2A.) All trees and underbrush
across the width of the right-of-way shall be considered to be
grouped together as a single length in measuring the total length of
clearing. (See Detail C, Drawing TM-12-2A.) Spaces along the right-
of-way in which no trees are to be removed or trimmed or underbrush
cleared shall be omitted from the total measurement. All length thus
arrived at, added together and divided by 1,000 shall give the
number of 1,000-foot TM-12 units of clearing. The Bidder shall not
remove or trim shade, fruit, or ornamental trees unless so directed
by the Engineer in writing.
TM-12 (1). This unit is identical with TM-12, except the full
width of the right-of-way to be cleared shall be ______ (______)
feet wide (to be measured ______ (______) feet on each side of the
pole line or centerline of structures). (See Detail D, Drawing TM-
12-2A.) TMC-12, TMC-12 (1). These units are identical to the
respective TM units except that chemical treatment of stumps is
required in addition to the clearing of underbrush, tree removal and
tree trimming.
TM-13. The unit, for purpose of quoting, is 1,000 feet in length
of clearing off the right-of-way. The Engineer will select those
trees off the right-of-way that he deems to be a hazard to the line
and will designate them to the Bidder in writing as danger trees.
When so designated, the Bidder shall remove or top such trees at his
option except that the Bidder shall trim and not remove shade,
fruit, or ornamental trees unless otherwise directed by the Engineer
in writing. (See Drawings TM-12-2A and TM-13 for examples of danger
trees.)
The measurement of the length of clearing off the right-of-way
shall be considered as a straight line parallel to the horizontal
line between poles or centerline of structures, such measurement of
length to be based on maximum dimension of foliage (not trunk)
projected to the ground line. (See Details E, F, G, and H, Drawing
TM-12-2A.) Dead trees having no foliage shall be measured across the
maximum dimension and multiplied by two. (See Detail F, Drawing TM-
12-2A.) Each tree so removed shall be added together to determine
the total length of clearing. All length thus arrived at, added
together and divided by 1,000, shall give the number of TM-13 units.
(Example: Details E, F, G, and H, Drawing TM-12-2A, total .1 of a
TM-13 unit.)
TM-14. The unit is 1,000 feet in length and ______ (______) feet
in width (to be measured ______ (______) feet on one side of right-
of-way centerline) of actual clearing of right-of-way. Trees and
underbrush should be cleared from the ground up within 10 feet of
any structure location. The Engineer will mark the trees and brush
to be cleared to provide ``undulating'' boundaries. Low growing
trees and brush are to be left in the right-of-way to the extent it
will not be hazardous to the line or will not interfere with the
access road. The length of actual clearing shall be measured in a
straight line parallel to the horizontal line between poles or
centerline of structures and across the maximum dimension of foliage
cleared projected to the ground line (See Detail B, Drawing TM-12-
2A.) All trees and underbrush cleared across the right-of-way shall
be considered to be grouped together as a single length in measuring
the total length of clearing (See Detail C, Drawing TM-12-2A.)
Spaces along the right-of-way in which no trees are to be removed or
trimmed or underbrush cleared shall be omitted from the total
measurement.
TM-14 (1). This unit is identical with TM-14 except the full
width of the right-of-way to be cleared shall be ______ (______)
feet in width (to be measured ______ (______) feet wide (See Detail
D, Drawing TM-12-2A.)
TM-15. The unit is 1,000 feet in length and ______ (______) feet
in width (to be measured ______ (______) feet on one side of the
right-of-way centerline) of actual clearing of the right-of-way.
Trees and underbrush should be cleared from ground up within 10 feet
of any structure location. The Engineer will mark the trees and
brush to be cleared to provide a ``feathered'' appearance in the
right-of-way. Low growing trees and brush are to be left in the
right-of-way to the extent it will not be hazardous to the line or
will not interfere with the access road.
The length of actual clearing shall be measured in a straight
line parallel to the horizontal line between poles or centerline of
structures and across the maximum dimension of foliage cleared
projected to ground line (See Detail B, Drawing TM-12-2A). All trees
and underbrush cleared across the right-of-way shall be considered
to be grouped together as a single length in measuring the total
length of clearing (See Detail C, Drawing TM-12-2A). Spaces along
the right-of-way which no trees are to be removed or trimmed or
underbrush cleared shall be omitted from the total measurement.
TM-15 (1). This unit is identical to TM-15 except the full width
of the right-of-way to be cleared shall be ______ (______) feet wide
(See Detail D, Drawing TM-12-2A).
Additional Requirements (When specifying TM units denote type of
disposal (A or B).)
A. Trees, brush, branches and refuse shall, without delay, be
disposed of by such of the following methods as the Engineer will
direct (Engineer to strike out methods not to be used):
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (describe) ______
B. Trees that are felled shall be cut to commercial wood
lengths, stacked neatly, and left on the right-of-way for the
landowner. Commercial wood length means [[Page 10247]] the length
designated by the Engineer but in no case shall it be required to be
less than ______ (______) feet. Brush, branches, and refuse shall,
without delay, be disposed of by such of the following methods as
the Engineer will direct (Engineer to strike out methods not to be
used):
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (describe) ______
----------------------------------------------------------------------------------------------------------------
Unit price
No. of ------------------------------------ Extended price--
Unit No. units Labor and labor & materials
Labor Materials materials
----------------------------------------------------------------------------------------------------------------
Total, Section 6--
----------------------------------------------------------------------------------------------------------------
Proposal Summary
Recapitulation of Sections:
Section--1 ______ $______
Section--2 ______ ______
Section--3 ______ ______
Section--4 ______ ______
Section--5 ______ ______
Section--6 ______ ______
Section--7 ______ ______
Total Transmission Line Construction ______
Section 8--Substation Assembly Units
Description of Construction Units. Each Construction Unit
consists of a complete installation of the designated portion of a
substation as specified on the drawings, together with connections
to associated equipment. Each Construction Unit represents all labor
and material including necessary accessories completely installed
and tested in satisfactory operation. Full identification of each
Construction Unit and all necessary specifications of the
installation is shown on the drawings.
Items of material in each Construction Unit shall be of the
designated size, rating, type, voltage, or other specification in
accordance with the drawings. The bill of material drawing for each
substation shows the identification of the Construction Units under
which the material is to be installed and shows which items of
material may be partly or entirely found on the lists of Owner-
furnished materials. All items of equipment, unless otherwise
specified, are mounted on a structure which shall be a Construction
Unit of Group A.
Each Construction Unit is designated by the letter of the Group
to which it belongs and an identifying number. The same item of
equipment carries the same Construction Unit designation in all the
substations. Items of equipment designated by the same Construction
Unit in one substation are of only one kind as to voltage, type and
other specifications. The tabulation of Construction units for each
substation is separate and contains all units necessary for
construction of that substation.
Group A. Structures. A Construction Unit consists of a
structure, or structures, with bus supports including insulators and
fittings, buses, conductors and overhead ground wires to adjacent
structures within the substation, grounding material to connect
equipment with the ground bus, and associated material including
mounting brackets, supports for equipment, clamps and connectors,
all as specified in the drawings.
Group B. Three-Pole Group Operated Air Break Switches. A
Construction Unit consists of one 3-pole group operated air break
switch with all accessories and operating mechanisms as specified in
the drawings.
Group C. Lightning Arresters. A Construction Unit consists of
one single arrester.
Group D. Single Pole Disconnecting Switches. A Construction Unit
consists of one single pole disconnecting or by-pass switch as
specified in the drawings. If a fuse disconnect switch is specified,
the fuse is included with the switch.
Group E. Oil Circuit Breakers. A Construction Unit consists of
one complete three-phase power circuit breaker complete with
supporting frame and control cabinet, unless shown otherwise in the
drawings, mounted as specified in the drawings.
Group F. Oil Circuit Reclosers. A Construction Unit consists of
a complete single-phase or three phase oil circuit recloser as
specified in the drawings.
Group G. Meters, Relays and Instrument Transformers. A
Construction Unit consists of one meter, relay potential transformer
or current transformer.
Group H. Transformers. A Construction Unit consists of one power
transformer or one station service transformer either single-phase
or three-phase as specified in the drawings.
Group I. Voltage Regulators. A Construction Unit consists of one
single-phase or three-phase voltage regulator as specified in the
drawings.
Group J. Communications and Supervisory Control Equipment. A
Construction Unit consists of carrier current equipment, microwave,
or other types of communications and supervisory control equipment
as specified in the drawings.
Group K. Conduit and Cable. A Construction Unit consists of the
wire, cable, conduit and accessories necessary to complete the
installation of equipment in accordance with the specifications and
drawings, where such installation has not been included in other
Groups.
Group L. Foundations. A Construction Unit consists of concrete
footings and foundations except for the fence, as specified in the
drawings.
Group M. Site Preparation. A Construction Unit consists of
clearing, grading, drainage work, and surfacing, as specified in the
drawings.
Group N. Fence. A Construction Unit consists of the complete
installation of the fence, gates, etc., as specified in the
drawings.
Group O. Station Grounding. A Construction Unit consists of the
complete ground bus including ground rods, grounding mats or
platforms, except as otherwise provided in other Groups, with
connections to structures, equipment, and fence as specified in the
drawings.
Group P. Building. A Construction Unit consists of a control
building or cabinet, on a foundation of Group L and the facilities
and equipment installed therein as specified in the drawings, except
as otherwise provided in other Groups.
Other Groups. The Engineer shall specify such additional Groups
as may be necessary for the completion of the Project. Description
of these Groups shall be provided by an addition to this Section of
the Specifications for Construction.
________ Station Construction Units
Unit No. ________
Name and Description of Construction Unit ________
No. of Units ________
Unit Prices
Labor ________
Materials ________
Labor and Materials ________
Extended Price--Labor and Materials ________
Total Price ________
Proposal Summary
________ Substation $________
________ Substation ________
________ Substation ________
________ Switching Station ________
________ Switching Station ________
Total Station Construction $________
Proposed Recapitulation
Distribution line construction $________
Transmission line construction ________
Substation and Switching Station Construction ________
Total $________
Acceptance
The Owner hereby accepts the foregoing Proposal of the Bidder,
________ for the construction of the following:
Distribution Construction Units: Sections: ________
Transmission Construction Units: Sections: ________
Substation and Switching Station Construction: Stations (name):
________
________ Owner
By ________ President
________ Secretary
________ Date of Contract [[Page 10248]]
[End of clause]
Sec. 1726.352 Electric transmission construction contract (labor and
materials), RUS Form 831.
The contract form in this section shall be used when required by
this part. This form refers to guide drawings, which do not contain
requirements, and, hence, are not included in this part. The guide
drawings are included in the printed form available from GPO (See
Sec. 1726.300.).
Electric Transmission Construction Contract (Labor and Materials)
Notice and Instructions to Bidders
1. Sealed proposals for the construction, including the supply
of necessary labor, materials and equipment, of a rural electric
project of ________ (hereinafter called the ``Owner'') to be known
as Project will be received by the Owner on or before ________
o'clock ________ M., ________, 19________ at its office at ________
at which time and place the proposals will be publicly opened and
read. Any proposal received subsequent to the time specified will be
promptly returned to the Bidder unopened.
2. Description of Project: The Project will consist of
approximately:
Transmission Line Construction
________ miles ________ kV; ________ miles ________ kV
________ miles ________ kV underbuild
Substations and Other Major Facilities
________ kVA ________ Voltage ________ Name
The Project is located in ________ Counties, in the State of
________ all as more fully described in the Plans, Specifications,
Construction Drawings and Contractor's Proposal therefore
hereinafter referred to.
3. Owner Furnished Materials. The unit prices in the
Contractor's Proposal shall include provisions for Owner Furnished
Materials since as stated in Article 1, Section 3 of the
Contractor's Proposal, the value of the Owner Furnished Materials,
if any, will be deducted from payments to the Bidder for completed
Construction Units.
4. Obtaining Documents. The Plans, Specifications and
Construction Drawings together with all necessary forms and other
documents for bidders may be obtained from the Owner, or from the
Engineer, ________ at the latter's office at ________ upon the
payment of $________, which payment will not be subject to refund.
The Plans, Specifications and Construction Drawings may be examined
at the office of the Owner or at the office of the Engineer. A copy
of the Loan Contract (if the Project is to be financed, in whole or
in part, pursuant to a loan contract) between the Owner and the
United States of America acting through the Administrator of the
Rural Utilities Service (hereinafter called the Administrator) and
of the loan contract between the Owner and any other lender may be
examined at the office of the Owner. Each set of Plans,
Specifications and Construction Drawings will have a serial number,
given by the Engineer, and the number of each set with the name of
the Purchaser will be recorded by the Engineer. Bids will be
accepted only from the original purchaser.
5. Manner of Submitting Proposals. Proposals and all supporting
instruments must be submitted on the forms furnished by the Owner
and must be delivered in a sealed envelope addressed to the Owner.
The name and address of the Bidder, its license number if a license
is required by the State, and the date and hour of the opening of
bids must appear on the envelope in which the Proposal is submitted.
Proposals must be filled in in ink or typewritten. No alterations or
interlineations will be permitted, unless made before submission,
and initialed and dated.
6. Familiarity with Conditions. Prior to the submission of the
Proposal the Bidder shall make and shall be deemed to have made a
careful examination of the site of the Project and of the Plans,
Specifications, Construction Drawings, and forms of Contractor's
Proposal and Contractor's Bond on file with the Secretary of the
Owner and with the Engineer, and shall become informed as to the
location and nature of the proposed construction, the transportation
facilities, the kind and character of soil and terrain to be
encountered, the kind of facilities required before and during the
construction of the Project, general local conditions and all other
matters that may affect the cost and the time of completion of the
Project. Bidders will be required to comply with all applicable
statutes, regulations, etc., including those pertaining to the
licensing of contractors, and the so-called ``Kick-back Statute''
(48 Stat. 948) and regulations issued pursuant thereto.
7. Proposals will be accepted only from those prequalified
bidders invited by the Owner to submit a proposal.
8. Alternate Designs. The Owner reserves the right to confine
its consideration of the several bids to one type of design
regardless of alternate types of design which may be specified in
the Plans and Specifications and offered in the Proposals.
9. The Time for Completion of Construction of the Project shall
be as specified by the Engineer in the Proposal.
10. Bid Bond. Each Proposal must be accompanied by a Bid Bond in
the form attached or a certified check on a bank that is a member of
the Federal Deposit Insurance Corporation, payable to the order of
the Owner, in an amount equal to ten percent (10%) of the maximum
bid price. Each Bidder agrees, provided its Proposal is one of the
three low Proposals, that, by filing its Proposal together with such
Bid Bond or check in consideration of the owner's receiving and
considering such Proposals, said Proposal shall be firm and binding
upon each such Bidder and such Bid Bond or check shall be held by
the Owner until a Proposal is accepted and a satisfactory
Contractor's Bond is furnished (where required) by the successful
Bidder and such acceptance has been approved by the Administrator,
or for a period not to exceed sixty (60) days from the date
hereinbefore set for the opening of Proposals, whichever period
shall be the shorter. If such Proposal is not one of the three low
Proposals, the Bid Bond or check will be returned in each instance
within a period of ten (10) days to the Bidder furnishing same.
11. Contractor's Bond. The successful Bidder will be required to
execute two additional counterparts of the Proposal and, for a
Contract in excess of $100,000, to furnish a Contractor's Bond in
triplicate in the form attached hereto with sureties listed by the
United States Treasury Department as Acceptable Sureties, in a penal
sum not less than the contract price.
12. Failure to Furnish Contractor's Bond. Should the successful
Bidder fail or refuse to execute such counterparts or to furnish a
Contractor's Bond (where required) within ten (10) days after
written notification of the acceptance of the Proposal by the Owner,
the Bidder will be considered to have abandoned the Proposal. In
such event, the Owner shall be entitled (a) To enforce the Bid Bond
in accordance with its terms, or (b) if a certified check has been
delivered with the Proposal, to retain from the proceeds of the
certified check, the difference (not exceeding the amount of the
certified check) between the amount of the Proposal and such larger
amount for which the Owner may in good faith contract with another
party to construct the Project. The term ``Successful Bidder'' shall
be deemed to include any Bidder whose Proposal is accepted after
another Bidder has previously refused or has been unable to execute
the counterparts or to furnish a satisfactory Contractor's Bond
(where required.)
13. Contract is Entire Agreement. The Contract to be effected by
the acceptance of the Proposal shall be deemed to include the entire
agreement between the parties thereto, and the Bidder shall not
claim any modification thereof resulting from any representation or
promise made at any time by any officer, agent or employee of the
Owner or by any other person.
14. Minor Irregularities. The Owner reserves the right to waive
minor irregularities or minor errors in any Proposal, if it appears
to the Owner that such irregularities or errors were made through
inadvertence. Any such irregularities or errors so waived must be
corrected on the Proposal in which they occur prior to the
acceptance thereof by the Owner.
15. Balanced Bid. The Owner reserves the right to reject any or
all Proposals. The attention of Bidders is specially called to the
desirability of a proper balance between prices for labor and
materials and between the total prices for the respective
Construction Units. Lack of such balance may be considered as a
reason for rejecting a Proposal.
16. Discrepancy in Unit Prices. Where the unit prices in the
Contractor's Proposal are separated into three columns designated as
``Labor,'' ``Materials'' and ``Labor and Materials,'' and where a
discrepancy appears between the sum shown in the ``Labor and
Materials'' column and the correct addition of the sums appearing in
the ``Labor'' column and the ``Materials'' column, the correct
addition of the sums appearing in the ``Labor'' column and the
``Materials'' column shall control.
17. Definition of Terms. The terms ``Administrator,''
``Engineer,'' ``Supervisor,'' [[Page 10249]] ``Project,''
``Completion of Construction'' and ``Completion of the Project'' as
used throughout this Contract shall be as defined in Article VI,
Section 1, of the Contractor's Proposal.
18. The Owner Represents:
a. If by provisions of the Contractor's Proposal the Owner shall
have undertaken to furnish any materials for the construction of the
Project, such materials are on hand at locations specified or if
such materials are not on hand they will be made available by the
Owner to the successful Bidder at the locations specified before the
time such materials are required for construction.
b. All easements and rights-of-way, except as shown on maps
included in the Plans and Specifications, have been obtained from
the owners of the properties across which the Project is to be
constructed (including tenants who may reasonably be expected to
object to such construction). The remaining easements and rights-of-
way, if any, will be obtained as required to avoid delay in
construction.
c. All staking, except as shown on the maps included in the
Plans and Specifications, has been completed and sufficient staking
crews will be available to maintain stakes at all times in advance
of construction.
d. Prompt payment for the construction of the Project will be
made with funds pursuant to the Loan Contract, or with funds
otherwise available to the Owner.
If the Owner shall fail to comply with any of the undertakings
contained in the foregoing representations or if any of such
representations shall be incorrect, the Bidder will be entitled to
an extension of time of completion for a period equal to the delay,
if any, caused by the failure of the Owner to comply with such
undertakings or by any such incorrect representation; provided the
Bidder shall have promptly notified the Owner in writing of its
desire to extend the time of completion in accordance with the
foregoing; provided, however, that such extension, if any, of the
time and completion shall be the sole remedy of the Bidder for the
Owner's failure, because of conditions beyond the control and
without the fault of the Owner, to furnish materials in accordance
with subparagraph a hereof.
________ Owner
By ________
________, 19____
Contractor's Proposal
(Proposal shall be submitted in ink or typewritten)
To: ________ (Hereinafter called the ``Owner'')
Article I--General
Section 1. Offer to Construct. The undersigned (hereinafter
called the ``Bidder'') hereby proposes to receive and install such
materials and equipment as may hereinafter be specified to be
furnished by the Owner, and to furnish all other materials and
equipment, all machinery, tools, labor, transportation and other
means required to construct the rural electric project ________ in
strict accordance with the Plans, Specifications and Construction
Drawings therefor, attached hereto and made a part hereof, for the
prices hereinafter stated. The total length of the project lines
shall be determined by taking the sum of all straight horizontal
span distances between pole stakes or from center to center of
poles, or centerline of structures, carrying conductors.
Section 2. Materials and Equipment. The Bidder agrees to furnish
and use in the construction of the Project under this Proposal, in
the event the Proposal is accepted, only such materials and
equipment as are included in the current ``List of Materials
Acceptable for Use on Systems of RUS Electrification Borrowers,''
including revisions adopted prior to the Bid Opening.
The Bidder further agrees to furnish:
------------------------------------------------------------------------
Type Size Galvanizing class
------------------------------------------------------------------------
Overhead ground wire
Guy wire
Structure ground wire
------------------------------------------------------------------------
(Engineer to insert Type, Size and Galvanizing Class as appropriate)
The Bidder further agrees to furnish and use poles, crossarms,
and other timber products, of which the physical characteristics,
method of treatment, type of preservative, instructions on
inspection and general procedure shall be in accordance with RUS
standards and requirements.
Crossarms shall be ________ (Engineer to insert Douglas Fir or
Southern Yellow Pine), treated with ________
(Engineer to insert type of preservative.)
Section 3. Owner-Furnished Materials. The Bidder understands and
agrees that, if this Proposal is accepted, the Owner will furnish to
the Bidder the material set forth in the attached ``List of Owner's
Materials on Hand'' (see page ____) and the Bidder will give a
receipt (see page ____) therefor in writing to the Owner. The
Bidder, further, will on behalf of the Owner accept delivery of such
of the materials set forth in the attached ``List of Materials
Ordered by Owner but Not Delivered'' (see page ____) as may be
subsequently delivered and will promptly forward to the Owner for
payment the supplier's invoice, together with the Bidder's receipt
in writing for such materials. The materials referred to are on hand
at, or will be delivered to, the locations specified in the Lists
and the Bidder will use such materials in constructing the Project.
The value of the completed Construction Units certified by the
Bidder each month pursuant to Article III, Section 1(a) of this
Proposal shall be reduced by an amount equal to the value of the
materials installed by the Bidder during the preceding month which
have been furnished by the Owner or the delivery of which has been
accepted by the Bidder on behalf of the Owner. Only ninety percent
(90%) of the remainder shall be paid prior to the Completion of the
Project. The value of such materials shall be computed on the basis
of the unit prices stated in the Lists, Materials, if any, not
required for the Project, which have been furnished to the Bidder by
the Owner or delivery of which has been accepted by the Bidder on
behalf of the Owner, shall be returned to the Owner by the Bidder
upon completion of construction of the Project. The value of all
materials not installed in the Project nor returned to the Owner
shall be deducted from the final payment to the Bidder.
The Owner shall not be obligated to furnish materials in excess
of the quantities, size, kind and type set forth in the attached
Lists. If the Owner furnished, and the Bidder accepts, materials in
excess therefor, the values of such excess materials shall be their
actual cost as stated by the Owner.
Information on the shipping schedules of materials on the ``List
of Materials Ordered by Owner But Not Delivered'' will be furnished
to the Bidder as necessary during progress of the work.
Upon delivery the Bidder shall promptly receive, unload,
transport and handle all materials and equipment on the ``List of
Materials Ordered by Owner But Not Delivered'' at its expense and
shall be responsible for demurrage, if any.
Section 4. Purchase of Materials Not Furnished by Owner. The
Bidder will purchase all materials and equipment (other than owner-
furnished materials) outright and not subject to any conditional
sales agreements, bailment, lease or other agreement reserving unto
the seller any right, title or interest therein. All such materials
and equipment shall become the property of the Owner when erected in
place.
Section 5. Proposal on Unit Basis. The Bidder understands and
agrees that the various Construction Units on which bids are made
are defined by symbols and descriptions in this Proposal, that all
said bids are on a unit basis, and that the Owner may specify any
number or combination of Construction Units that the Owner may deem
necessary for the construction of the Project. Separate Construction
Units are designated for each different arrangement which may be
used in the construction of the Project. This Proposal is based on a
consideration of each unit in place and includes only the materials
listed on the corresponding Construction Drawings or description of
unit where no drawing exists.
Section 6. Description of Contract. The Notice and Instructions
to Bidders and Plans attached hereto and made a part hereof, and the
Specifications and Construction Drawings set forth in the Electric
Transmission Specifications & Drawings, RUS Form 805, as applicable,
together with the Proposal and Acceptance constitute the Contract.
The plans, consisting of maps and special drawings, are identified
as follows: ________.
Section 7. Familiarity with Conditions. The Bidder has made a
careful examination of the site of the Project to be constructed and
of the Plans, Specifications, Construction Drawings, and form of
Contractor's Bond attached hereto, and has become informed as to the
location and nature of the proposed construction, the transportation
facilities, the kind and character of soil and terrain to be
encountered, and the kind of facilities required before and during
the construction of the Project, and has become acquainted
[[Page 10250]] with the labor conditions, state and local laws and
regulations which would affect work on the proposed construction.
Section 8. License. The Bidder warrants that a Contractor's
License is ____ is not ____ required, and if required it possesses
Contractor's License No. ________ for the State of ________ in which
the Project is located and said license expires on ________, 19____.
Section 9. The Bidder warrants that this Proposal is made in
good faith and without collusion or connection with any person or
persons bidding for the same work.
Section 10. The Bidder warrants that it possesses adequate
financial resources and agrees that in the event this Proposal is
accepted and a Contractor's Bond is required, it will furnish a
Contractor's Bond in the form attached hereto, in a penal sum not
less than the maximum Contractor price, with a surety or sureties
listed by the United States Treasury Department as Acceptance
Sureties.
In the event that the surety or sureties on the performance bond
delivered to the Owner contemporaneously with the execution of the
Contract or on any bond or bonds delivered in substitution therefor
or in addition thereto shall at any time become unsatisfactory to
the Owner or the Administrator, the Bidder agrees to deliver to the
Owner another or an additional bond.
Section 11. Taxes. The unit prices for Construction Units in
this Proposal include provisions for the payment of all monies which
will be payable by the Bidder or the Owner in connection with the
construction of the Project on account of taxes imposed by any
taxing authority upon the sale, purchase or use of materials,
supplies and equipment, or services or labor of installation
thereof, to be incorporated in the Project as part of such
Construction Units. The Bidder agrees to pay all such taxes, except
taxes upon the sale, purchase or use of owner-furnished materials
and it is understood that, as to owner-furnished materials, the
values stated in the attached ``List of Owner's Materials on Hand''
and ``List of Materials Ordered by Owner But Not Delivered'' include
taxes upon the sale, purchase or use of owner-furnished materials,
if applicable. The Bidder will furnish to the appropriate taxing
authorities all required information and reports pertaining to the
Project, except as to the owner-furnished materials.
Section 12. Changes in Quantities. The Bidder understands and
agrees that the quantities called for in this Proposal are
approximate, and that the total number of units upon which payment
shall be made shall be as set forth in the Inventory. If the Owner
changes the quantity of any Assembly Unit or Assembly Units
specified in this Proposal by more than 15%, and the materials cost
to the Bidder is increased thereby to an extent which would not be
adequately compensated by application of the unit prices in this
Proposal to the revised quantity of such unit or units, such change,
to the extent of the quantities of such units in excess of such 15%,
shall be regarded as a change in the construction within the meaning
of Article II, Section 1(d) of this proposal.
Section 13. Description of Contract. The Notice and Instructions
to Bidders, Plans, Specifications for Construction and Construction
Drawings, all attached hereto and made a part hereof together with
the Proposal and Acceptance constitute the contract. The Plans and
Construction Drawings are identified as follows: ________
List of Owner's Materials on Hand
----------------------------------------------------------------------------------------------------------------
Description Catalog
Item\1\ of material No. Quantity Unit price Extended price
----------------------------------------------------------------------------------------------------------------
Total
Above materials are located at:
----------------------------------------------------------------------------------------------------------------
Notes: 1. Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3,
the value of these materials will be deducted from payments to the Bidder for completed Construction Units.
List of Materials Ordered by Owner but not Delivered
----------------------------------------------------------------------------------------------------------------
Supplier Scheduled
Item\2\ name and delivery Description Catalog Quantity Unit price Extended price
address date of material No.
----------------------------------------------------------------------------------------------------------------
Total
Above material to be
delivered to:
----------------------------------------------------------------------------------------------------------------
Notes: 2. Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3,
the value of these materials will be deducted from payments to the Bidder for completed Construction Units.
Article II--Construction
Section 1. Time and Manner of Construction
a. The Bidder agrees to commence construction of the Project on
a date (hereinafter called the ``Commencement Date'') which shall be
determined by the Engineer after notice in writing of approval of
the Contract by the Administrator and notice in writing from the
Bidder that the Bidder has sufficient materials to warrant
commencement and continuation of construction, but in no event will
the Commencement Date be later than ____ calendar days after date of
approval of the Contract by the Administrator. The Bidder further
agrees to prosecute diligently and to complete construction in
strict accordance with the Plans, Specifications and Construction
Drawings within ____ (____) calendar days (excluding Sundays) after
Commencement Date: Provided, however, that the Bidder will not be
required to dig holes, set poles or install anchors if there are
more than six (6) inches of frost in the ground nor to perform any
construction on such days when in the judgment of the Engineer snow,
rain, or wind, or the results of snow, rain, or frost make it
impracticable to perform any operation of construction and to the
extent of the time lost due to the conditions described herein and
approved in writing by the Engineer, the time of completion set out
above will be extended if the Bidder makes a written request
therefor to the Owner as provided in subsection b of this Section 1.
b. The time for Completion of Construction shall be extended for
the period of any reasonable delay which is due exclusively to
causes beyond the control and without the fault of the Bidder,
including Acts of God, fires, floods, inability to obtain materials
and acts or omissions of the Owner with respect to matters for which
the Owner is solely responsible: Provided, however, that no such
extension of time for completion shall be granted the Bidder unless
within ten (10) days after the happening of any event relied upon by
the Bidder for such an extension of time the Bidder shall have made
a request therefor in writing to the Owner, and provided further
that no delay in such time of completion or in the progress of the
work which results from any of the above causes except acts or
omissions of the Owner, shall result in any liability on the part of
the Owner.
c. The sequence of construction shall be as set forth below, the
numbers or names being the designations of extensions or areas
(hereinafter called the ``Sections'') corresponding to the numbers
or names shown on the maps attached hereto, or if no
[[Page 10251]] Sections are set forth below, the sequence of
construction shall be as determined by the Bidder, subject to the
approval of the Engineer. ________
d. The Owner, acting through the Engineer and with the approval
of the Administrator,\1\ may from time to time during the progress
of the construction of the Project make such changes in, additions
to or subtractions from the Plans, Specifications, Construction
Drawings, List of Materials and sequence of construction provided
for in the previous paragraph which are part of the Contractor's
Proposal as conditions may warrant: Provided, however, that if any
change in the construction to be done shall require an extension of
time, a reasonable extension will be granted if the Bidder shall
make a written request therefor to the Owner within ten (10) days
after any such change is made. And provided further, that if the
cost to the Bidder of construction of the Project shall be
materially increased by any such change or addition, the Owner shall
pay the Bidder for the reasonable cost thereof in accordance with a
Construction Contract Amendment signed by the Owner and the Bidder
and approved by the Administrator,\2\ but no claim for additional
compensation for any such change or addition will be considered
unless the Bidder shall have made a written request therefor to the
Owner prior to the commencement of work in connection with such
change or addition.
\1\As long as the total price of this contract including all
amendments is less than 120 percent of the original contract price
as stated in the acceptance hereto, amendments executed on RUS Form
238 are not subject to the approval of the Administrator. Whenever
an amendment to this contract causes the total amended contract to
exceed 120 percent of the original contract price, that amendment
and all subsequent amendments to this contract shall be made subject
to the approval of the Administrator.
\2\See Footnote 1.
---------------------------------------------------------------------------
e. The Bidder will not perform any work hereunder on Sundays
unless there is urgent need for such Sunday work and the Owner
consents thereto in writing. The time for completion specified in
subsection a of this Section 1 shall not be affected in any way by
inclusion of this subsection nor by the Owner's consent or lack of
consent to Sunday work hereunder.
Section 2. Environmental Protection. The Bidder shall perform
work in such a manner as to maximize preservation of beauty,
conservation of natural resources and minimize marring and scarring
of the landscape and silting of streams. The Bidder shall not
deposit trash in streams or waterways, and shall not deposit
herbicides or other chemicals or their containers in or near
streams, waterways or pastures. The Bidder shall follow, under the
general direction of the Engineer, the criteria relating to
environmental protection as specified herein by the Engineer.
Section 3. The Bidder agrees that in the event this Proposal is
accepted it will make available for use in connection with the
proposed construction all necessary tools and equipment and
qualified superintendents and foremen.
Section 4. Changes in Construction. The Bidder agrees to make
such changes in construction previously installed in the Project by
the Bidder as required by the Owner for prices arrived at as
follows:
a. For substations and other units where only a portion of the
complete unit is affected by the change, the compensation for such
change shall be as agreed upon in writing by the Bidder and the
Owner and approved by the Administrator\3\ prior to the commencement
of work in connection with such change.
\3\See Footnote 1.
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b. For all other units, the compensation for such change shall
be the reasonable cost thereof as agreed upon in writing by the
Bidder and the Owner prior to the commencement of work in connection
with such change, but in no event shall it exceed two (2) times the
labor price quoted in the Proposal for the installation of the unit
to be changed. Such compensation shall be in lieu of any other
payment for the installation and removal of the original unit. (If a
new or replacing unit is installed, payment for such new or
replacing unit shall be made as shown in the final inventory.)
No payment shall be made to the Bidder for materials or labor
involved in correcting errors or omissions on the part of the Bidder
which result in construction not in accordance with the Plans and
Specifications.
Section 5. Construction Not in Proposal. The Bidder also agrees
that when it is necessary to construct units not shown in the
Proposal it will construct such units for a price arrived at as
follows:
a. The cost of materials shall be determined by the invoices.
b. The cost of labor shall be the reasonable cost thereof, but
in no event shall it exceed an amount determined by calculating the
ratio of the total labor costs to the total material costs in the
section of the Proposal involved, and multiplying the cost of
materials for the unit in question by this ratio.
Section 6. Supervision and Inspection.
a. The Bidder shall cause the construction work on the Project
to receive constant supervision by a competent superintendent
(hereinafter called the ``Superintendent'') who shall be present at
all times during working hours where construction is being carried
on. The Bidder shall also employ, in connection with the
construction of the Project, capable, experienced and reliable
foremen and such skilled workmen as may be required for the various
classes of work to be performed. Directions and instructions given
to the Superintendent shall be binding upon the Bidder.
b. The Owner reserves the right to require the removal from the
Project of any employee of the Bidder if in the judgment of the
Owner such removal shall be necessary in order to protect the
interest of the Owner. The Owner or the Supervisor, if any, shall
have the right to require the Bidder to increase the number of its
employees and to increase or change the amount or kind of tools and
equipment if at any time the progress of the work shall be
unsatisfactory to the Owner or Supervisor; but the failure of the
Owner or Supervisor to give any such directions shall not relieve
the Bidder of its obligations to complete the work within the time
and in the manner specified in this Proposal.
c. The manner of construction of the Project, and all materials
and equipment used therein, shall be subject to the inspection,
tests and approval of the Owner and the Administrator, and the
Bidder shall furnish all information required by the Owner or by the
Administrator concerning the nature or source of any materials
incorporated or to be incorporated in the Project. The Owner and the
Administrator shall have the right to inspect all payrolls, invoices
of materials, and other data and records of the Bidder and of any
subcontractor, relevant to the construction of the Project. The
Bidder shall provide all reasonable facilities necessary for such
inspection and tests and shall maintain an office at the site of the
Project, with telephone service where obtainable and at least one
office employee to whom directions and instructions of the Owner may
be delivered. Delivery of such directions or instructions in writing
to the employee of the Bidder at such office shall constitute
delivery to the Bidder. The Bidder shall have an authorized agent
accompany the Engineer when final inspection is made and, if
requested by the Owner, when any other inspection is made.
d. In the event that the Owner, or the Administrator, shall
determine that the construction contains or may contain numerous
defects, it shall be the duty of the Bidder and the Bidder's Surety
or Sureties, if any, to have an inspection made by an engineer
approved by the Owner and the Administrator for the purpose of
determining the exact nature, extent and location of such defects.
e. The Engineer may recommend to the Owner that the Bidder
suspend the work wholly or in part for such period or periods as the
Engineer may deem necessary due to unsuitable weather or such other
conditions as are considered unfavorable for the satisfactory
prosecution of the work or because of the failure of the Bidder to
comply with any of the provisions of the Contract: Provided,
however, that the Bidder shall not suspend work pursuant to this
provision without written authority from the Owner so to do. The
time of completion hereinabove set forth shall be increased by the
number of days of any such suspension, except when such suspension
is due to the failure of the Bidder to comply with any of the
provisions of this Contract. In the event that work is suspended by
the Bidder with the consent of the Owner, the Bidder before resuming
work shall give the Owner at least twenty-four (24) hours notice
thereof in writing.
Section 7. Defective Materials and Workmanship.
a. The acceptance of any materials, equipment (except owner
furnished materials) or any workmanship by the Owner or the Engineer
shall not preclude the subsequent rejection thereof if such
materials, equipment, or workmanship shall be found to be defective
after delivery or installation, and any such materials, equipment or
workmanship found defective before final acceptance of the
construction [[Page 10252]] shall be replaced or remedied, as the
case may be, by and at the expense of the Bidder. Any such condemned
material or equipment shall be immediately removed from the site of
the Project by the Bidder at the Bidder's expense. The Bidder shall
not be entitled to any payment hereunder so long as any defective
materials, equipment or workmanship in respect to the Project, of
which the Bidder shall have had notice, shall not have been replaced
or remedied, as the case may be.
b. Notwithstanding any certificate which may have been given by
the Owner or the Engineer, if any materials, equipment (except
owner-furnished materials) or any workmanship which does not comply
with the requirements of this Contract shall be discovered within
one (1) year after Completion of Construction of the Project, the
Bidder shall replace such defective materials or equipment or remedy
any such defective workmanship within thirty (30) days after notice
in writing of the existence thereof shall have been given by the
Owner. If the Bidder shall be called upon to replace any defective
materials or equipment or to remedy defective workmanship as herein
provided, the Owner, if so requested by the Bidder shall deenergize
that section of the Project involved in such work. In the event of
failure by the Bidder so to do, the Owner may replace such defective
materials or equipment or remedy such defective workmanship, as the
case may be, and in such event the Bidder shall pay to the Owner the
cost and expense thereof.
Article III--Payments and Release of Liens
Section 1. Payments to Bidder.
a. Within the first fifteen (15) days of each calendar month,
the Owner shall make partial payment to the Bidder for construction
accomplished during the preceding calendar month on the basis of
completed Assembly Units furnished and certified to by the Bidder,
recommended by the Engineer and approved by the Owner solely for the
purposes of payment: Provided, however, that such approval shall not
be deemed approval of the workmanship or materials. Only ninety
percent (90%) of each such estimate approved during the construction
of the Project shall be paid by the Owner to the Bidder prior to
Completion of the Project: Provided, however, that at any time after
work, which, in the sole determination of the Engineer, amounts to
fifty percent (50%) of the Maximum Contract Price has been
completed, the Owner may elect, in lieu of paying ninety percent
(90%) of each such subsequent estimate, to pay each such subsequent
estimate in full. Upon completion by the Bidder of the construction
of the Project, the Engineer will prepare a Final Inventory of the
Project showing the total number and character of Assembly Units
and, after checking such Inventory with the Bidder, will certify it
to the Owner, together with a certificate of the total cost of the
construction performed. Upon the approval of such certificates by
the Owner and the Administrator, the Owner shall make payment to the
Bidder of all amounts to which the Bidder shall be entitled
thereunder which shall not have been paid: Provided, however, that
such final payment shall be made not later than ninety (90) days
after the date of Completion of Construction of the Project, as
specified in the Certificate of Completion, unless withheld because
of the fault of the Bidder.
b. The Bidder shall be paid on the basis of the number of
Construction Units actually installed at the direction of the Owner
shown by the inventory based on the staking sheets or structure
lists; Provided, however, that the total cost shall not exceed the
maximum Contract price for the construction of the Project as set
forth in the Acceptance, unless such excess shall have been approved
in writing by the Administrator\4\.
\4\See Footnote 1.
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c. Notwithstanding the provisions of Section 1a above, the
Bidder may, by giving written notice thereof to the Owner, elect to
receive payment in full for any Section of the Project upon:
(1) completion of construction of such Section as certified by
the Engineer and approved by the Owner and the Administrator;
(2) submission to the Owner and the Administrator of the
releases of lien and the certificate referred to in Section 2
hereof;
(3) approval by the Owner and the Administrator of the inventory
in respect of such Section; and
(4) submission to the Owner and the Administrator of the consent
in writing by the Surety or Sureties, if any, on the Contractor's
Bond to payment in full for such Section prior to Completion of the
Project.
If no Sections are designated in Article II, Section lc, the
term ``Section'' shall mean for purposes of this subsection c and
Article IV, Section 3b only, a part of the Project as designated by
the Owner which represents at least twenty-five percent (25%) of the
maximum Contract price as stated in Article III, Section 1, and
which is capable of being energized and operated by the Owner.
d. Interest at the rate of ____ percent\5\ (____%) per annum
shall be paid by the Owner to the Bidder on all unpaid balances due
on monthly estimates, commencing fifteen (15) days after the due
date; provided the delay in payment beyond the due date is not
caused by any condition within the control of the Bidder. The due
date for purposes of such monthly payment shall be the fifteenth day
of each calendar month provided (1) the Bidder on or before the
fifth day of such month shall have submitted its certification of
Construction Units completed during the preceding month and (2) the
Owner on or before the fifteenth day of such month shall have
approved such certification. If, for reasons not due to the Bidder's
fault, such approval shall not have been given on or before the
fifteenth day of such month, the due date for purposes of this
subsection d shall be the fifteenth day of such month
notwithstanding the absence of the approval of the certification.
\5\The Owner shall insert a rate equal to the lowest ``Prime
Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued.
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e. Interest at the rate of ____ percent\6\ (____%) per annum
shall be paid by the Owner to the Bidder on the final payment for
the Project or any completed Section thereof, commencing fifteen
(15) days after the due date. The due date for purposes of such
final payment shall be the date of approval by the Administrator of
all of the documents requiring such approval, as a condition
precedent to the making of final payment, or ninety (90) days after
the date of Completion of Construction of the Project, as specified
in the Certificate of Completion, whichever date is earlier.
\6\See Footnote 5.
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f. No payment shall be due while the Bidder is in default in
respect of any of the provisions of this Contract and the Owner may
withhold from the Bidder the amount of any claim by a third party
against either the Bidder or the Owner based upon an alleged failure
of the Bidder to perform the work hereunder in accordance with the
provisions of this Contract.
Section 2. Release of Liens and Certificate of Contractor. (See
sample RUS Form 224, Waiver and Release of Lien and sample RUS Form
231, Certificate of Contractor.) Upon the completion by the Bidder
of the Project (or any Section thereof if the Bidder shall elect to
receive payment in full for any Section when completed as provided
above) but prior to final payment to the Bidder, the Bidder shall
deliver to the Owner, in duplicate, releases of all liens and of
rights to claim any lien, in the form attached hereto from all
manufacturers, materialmen, and subcontractors furnishing services
or materials for the Project or such Section and a certificate in
the form attached hereto to the effect that all labor used on or for
the Project or such Section has been paid and that all such releases
have been submitted to the Owner for approval.
Section 3. Payments to Materialmen and Subcontractors. The
Bidder shall pay each materialman, and each subcontractor, if any,
within five (5) days after receipt of any payment from the Owner,
the amount thereof allowed the Bidder for and on account of
materials furnished or construction performed by each materialman or
each subcontractor.
Article IV--Particular Undertakings of the Bidder
Section 1. Protection to Persons and Property. The Bidder shall
at all times take all reasonable precautions for the safety of
employees on the work and of the public, and shall comply with all
applicable provisions of Federal, State, and Municipal safety laws
and building and construction codes, as well as the safety rules and
regulations of the Owner. All machinery and equipment and other
physical hazards shall be guarded in accordance with the ``Manual of
Accident Prevention in Construction'' of the Associated General
Contractors of America unless such instructions are incompatible
with Federal, State, or Municipal laws or regulations.
The following provisions shall not limit the generality of the
above requirements.
a. The Bidder shall at no time and under no circumstances cause
or permit any employee of the Bidder to perform any work upon
energized lines, or upon poles carrying energized lines, unless
otherwise specified in the Notice and Instructions to Bidders.
[[Page 10253]]
b. The Bidder shall so conduct the construction of the Project
as to cause the least possible obstruction of public highways.
c. The Bidder shall provide and maintain all such guard lights
and other protection for the public as may be required by applicable
statutes, ordinances and regulations or by local conditions.
d. The Bidder shall do all things necessary or expedient to
properly protect any and all parallel, converging and intersecting
lines, joint line poles, highways and any and all property of others
from damage, and in the event that any such parallel, converging and
intersecting lines, joint line poles, highways or other property are
damaged in the course of the construction of the Project the Bidder
shall at its own expense restore any or all of such damaged property
immediately to as good a state as before such damage occurred.
e. Where the right-of-way of the Project traverses cultivated
lands, the Bidder shall limit the movement of its crews and
equipment so as to cause as little damage as possible to crops,
orchards or property and shall endeavor to avoid marring the lands.
All fences which are necessarily opened or moved during the
construction of the Project shall be replaced in as good condition
as they were found and precautions shall be taken to prevent the
escape of livestock. The Bidder shall not be responsible for loss of
or damage to crops, orchards or property (other than livestock) on
the right-of-way necessarily incident to the construction of the
Project and not caused by negligence or inefficient operation of the
Bidder. The Bidder shall be responsible for all other loss of or
damage to crops, orchards, or property, whether on or off the right-
of-way, and for all loss of or damage to livestock caused by the
construction of the Project. The right-of-way for purposes of this
said section shall consist of an area extending ____ feet on both
sides of the center line of the poles along the route of the Project
lines, plus such area reasonably required by the Bidder for access
to the route of the Project lines from Public roads to carry on
construction activities.
f. The Project, from the commencement of work to completion, or
to such earlier date or dates when the Owner may take possession and
control in whole or in part as hereinafter provided shall be under
the charge and control of the Bidder and during such period of
control by the Bidder all risks in connection with the construction
of the Project and the materials to be used therein shall be borne
by the Bidder. The Bidder shall make good and fully repair all
injuries and damages to the Project or any portion thereof under the
control of the Bidder by reason of any Act of God or other casualty
or cause whether or not the same shall have occurred by reason of
the Bidder's negligence.
(i) To the maximum extent permitted by law, Bidder shall defend,
indemnify, and hold harmless Owner and Owner's directors, officers,
and employees from all claims, causes of action, losses,
liabilities, and expenses (including reasonable attorney's fees) for
personal loss, injury, or death to persons (including but not
limited to Bidder's employees) and loss, damage to or destruction of
Owner's property or the property of any other person or entity
(including but not limited to Bidder's property) in any manner
arising out of or connected with the Contract, or the materials or
equipment supplied or services performed by Bidder, its
subcontractors and suppliers of any tier. But nothing herein shall
be construed as making Bidder liable for any injury, death, loss,
damage, or destruction caused by the sole negligence of Owner.
(ii) To the maximum extent permitted by law, Bidder shall
defend, indemnify, and hold harmless Owner and Owner's directors,
officers, and employees from all liens and claims filed or asserted
against Owner, its directors, officers, and employees, or Owner's
property or facilities, for services performed or materials or
equipment furnished by Bidder, its subcontractors and suppliers of
any tier, and from all losses, demands, and causes of action arising
out of any such lien or claim. Bidder shall promptly discharge or
remove any such lien or claim by bonding, payment, or otherwise and
shall notify Owner promptly when it has done so. If Bidder does not
cause such lien or claim to be discharged or released by payment,
bonding, or otherwise, Owner shall have the right (but shall not be
obligated) to pay all sums necessary to obtain any such discharge or
release and to deduct all amounts so paid from the amount due
Bidder.
(iii) Bidder shall provide to Owner's satisfaction evidence of
Bidder's ability to comply with the indemnification provisions of
subparagraphs i and ii above, which evidence may include but may not
be limited to a bond or liability insurance policy obtained for this
purpose through a licensed surety or insurance company.
g. Any and all excess earth, rock, debris, underbrush and other
useless material shall be removed by the Bidder from the site of the
Project as rapidly as practicable as the work progresses.
h. Upon violation by the Bidder of any of the provisions of this
Section, after written notice of such violation given to the Bidder
by the Engineer or the Owner, the Bidder shall immediately correct
such violation. Upon failure of the Bidder so to do the Owner may
correct such violation at the Bidder's expense: Provided, however,
that the Owner may, if it deems it necessary or advisable, correct
such violation at the Bidder's expense without such prior notice to
the Bidder.
i. The Bidder shall submit to the Owner monthly reports in
duplicate of all accidents, giving such data as may be prescribed by
the Owner.
j. The Bidder shall not proceed with the cutting of trees or
clearing of right-of-way without written notification from the owner
that proper authorization has been received from the owner of the
property, and the Bidder shall promptly notify the Owner whenever
any landowner objects to the trimming or felling of any trees or the
performance of any other work on its land in connection with the
Project and shall obtain the consent in writing of the Owner before
proceeding in any such case.
Section 2. Insurance. The Bidder shall take out and maintain
throughout the period of this Agreement the following types and
minimum amounts of insurance:
a. Workers' compensation and employers' liability insurance as
required by law, covering all their employees who perform any of the
obligations of the contractor, engineer, and architect under the
contract. If any employer or employee is not subject to the workers'
compensation laws of the governing state, then insurance shall be
obtained voluntarily to extend to the employer and employee coverage
to the same extent as though the employer or employee were subject
to the workers' compensation laws.
b. Public liability insurance covering all operations under the
contract shall have limits for bodily injury or death of not less
than $1 million each occurrence, limits for property damage of not
less than $1 million for each occurrence, and $1 million aggregate
for accidents during the policy period. A single limit of $1 million
of bodily injury and property damage is acceptable. This required
insurance may be in a policy or polices of insurance, primary and
excess including umbrella or catastrophe form.
c. Automobile liability insurance on all motor vehicles used in
connection with the contract, whether owned, nonowned, or hired,
shall have limits for bodily injury or death of not less than $1
million per person and $1 million for each occurrence, and property
damage limits of $1 million for each occurrence. This required
insurance may be in a policy or policies of insurance, primary and
excess including the umbrella or catastrophe form.
The Owner shall have the right at any time to require public
liability insurance and property damage liability insurance greater
than those required in subsection ``b'' and ``c'' of this Section.
In any such event, the additional premium or premiums payable solely
as the result of such additional insurance shall be added to the
Contract price.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Bidder shall
furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than (30) days
prior written notice to the Owner of any cancellation or material
change in the insurance.
Section 3. Delivery of Possession and Control to Owner.
a. Upon written request of the Owner the Bidder shall deliver to
the Owner full possession and control of any portion of the Project
provided the Bidder shall have been paid at least ninety percent
(90%) of the cost of construction of such portion. Upon such
delivery of the possession and control of any portion of the Project
to the Owner, the risk and obligations of the Bidder as set forth in
Article IV, Section 1f hereof with respect to such portion of the
Project so delivered to the Owner shall be terminated: Provided,
however, that nothing herein contained shall relieve the Bidder of
any liability with respect to defective materials and workmanship as
contained in Article II, Section 6 hereof. [[Page 10254]]
b. Where the construction of a Section as hereinbefore defined
in Article II, Section 1c and Article III, Section 1c shall have
been completed by the Bidder, the Owner agrees, after receipt of a
written request from the Bidder, to accept delivery of possession
and control of such Section upon the issuance by the Engineer of a
written statement that the Section has been inspected and found
acceptable by the Engineer. Upon such delivery of the possession and
control of any such Section to the Owner, the risk and obligations
of the Bidder as set forth in Article IV, Section 1f hereof with
respect to such Section so delivered to the Owner shall be
terminated: Provided, however, that nothing herein contained shall
relieve the Bidder of any liability with respect to defective
materials or workmanship as contained in Article II, Section 6
hereof.
Section 4. Energizing the Project.
a. Prior to Completion of the Project the Owner, upon written
notice to the Bidder, may test the construction thereof by
temporarily energizing any portion or portions thereof. During the
period of such test the portion or portions of the Project so
energized shall be considered as within the possession and control
of the Owner and governed by the provisions of Section 3 of this
Article. Upon written notice to the Bidder by the Owner of the
completion of such test and upon deenergizing the lines involved
therein said portion, or portions of the Project shall be considered
as returned to the possession and control of the Bidder unless the
Owner shall elect to continue possession and control in the manner
provided in Section 3 of this Article.
b. The Owner shall have the right to energize permanently any
portion or portions of the Project delivered to its possession and
control pursuant to the provisions of Section 3 of this Article.
Section 5. Assignment of Guarantees. All guarantees of materials
and workmanship running in favor of the Bidder shall be transferred
and assigned to the Owner prior to the time the Bidder receives
final payment.
Article V--Remedies
Section 1. Completion on Bidder's Default. If default shall be
made by the Bidder or by any subcontractor in the performance of any
of the terms of this Proposal, the Owner, without in any manner
limiting its legal and equitable remedies in the circumstances, may
serve upon the Bidder and the Surety or Sureties, if any, upon the
Contractor's Bond or Bonds a written notice requiring the Bidder to
cause such default to be corrected forthwith. Unless within twenty
(20) days after the service of such notice upon the Bidder such
default shall be corrected or arrangements for the correction
thereof satisfactory to both the Owner and the Administrator shall
be made by the Bidder or its Surety or Sureties, if any, the Owner
may take over the construction of the Project and prosecute the same
to completion by Contract or otherwise for the account and at the
expense of the Bidder, and the Bidder and its Surety or Sureties, if
any, shall be liable to the Owner for any cost or expense in excess
of the Contract price occasioned thereby. In such event the Owner
may take possession of and utilize, in completing the construction
of the Project, any materials, tools, supplies, equipment,
appliances, and plant belonging to the Bidder or any of its
subcontractors, which may be situated at the site of the Project.
The Owner in such contingency may exercise any rights, claims or
demands which the Bidder may have against third persons in
connection with this Contract and for such purpose the Bidder does
hereby assign, transfer and set over unto the Owner all such rights,
claims and demands.
Section 2. Liquidated Damages. The time of the Completion of
Construction of the Project is of the essence of the Contract.
Should the Bidder neglect, refuse or fail to complete the
construction within the time herein agreed upon, after giving effect
to extensions of time, if any, herein provided, then, in that event
and in view of the difficulty of estimating with exactness damages
caused by such delay, the Owner shall have the right to deduct from
and retain out of such moneys which may be then due, or which may
become due and payable to the Bidder the sum of ____ dollars (____)
per day for each and every day that such construction is delayed in
its completion beyond the specified time, as liquidated damages and
not as a penalty; if the amount due and to become due from the Owner
to the Bidder is insufficient to pay in full any such liquidated
damages, the Bidder shall pay to the Owner the amount necessary to
effect such payment in full; Provided, however, that the Owner shall
promptly notify the Bidder in writing of the manner in which the
amount retained, deducted or claimed as liquidated damages was
computed.
Section 3. Cumulative Remedies. Every right or remedy herein
conferred upon or reserved to the Owner or the Government or the
Administrator shall be cumulative, shall be in addition to every
right and remedy now or hereafter existing at law or in equity or by
statute and the pursuit of any right or remedy shall not be
construed as an election: Provided, however, that the provisions of
Section 2 of this Article shall be the exclusive measure of damages
for failure by the Bidder to complete the construction of the
Project within the time herein agreed upon.
Article VI--Miscellaneous
Section 1. Definitions.
a. The term ``Administrator'' shall mean the Administrator of
the Rural Utilities Service of the United States of America and his
duly authorized representatives or any other person in whom or
authority in which may be vested the duties and functions which the
Administrator is now authorized by law to perform.
b. The term ``Engineer'' shall mean the engineer employed by the
Owner, with the approval of the Administrator, to provide
engineering services for the Project and said Engineer's duly
authorized assistants and representatives.
c. The term ``Supervisor'' shall mean the person, if any,
appointed by the Administrator as the representative of the
Government under the provisions of the Loan Contract providing for
such appointment in special cases. The term is limited to such
special representative of the Government, if any, who is responsible
exclusively to the Administrator and does not refer to the Manager
or any other person employed by the Owner and responsible to it.
d. The term ``Project'' shall mean the rural electric system, or
portion thereof, described in the Plans and Specifications,
Construction Drawings and maps attached hereto.
e. The term ``Completion of Construction'' shall mean full
performance by the Bidder of the Bidder's obligations under the
Contract and all amendments and revisions thereof except the
Bidder's obligations in respect of (1) Releases of Liens and
Certificate of Contractor under Article III, Section 2 hereof, (2)
the inventory referred to in Article III, Section 1 hereof, and (3)
other final documents. The term ``Completion of the Project'' shall
mean full performance by the Bidder of the Bidder's obligations
under the Contract and all amendments and revisions thereof. The
Certificate of Completion, signed by the Engineer and approved in
writing by the Owner and the Administrator, shall be the sole and
conclusive evidence as to the date of Completion of Construction and
as to the fact of Completion of the Project.
Section 2. Materials and Supplies. In the performance of this
contract there shall be furnished only such unmanufactured articles,
materials, and supplies as have been mined or produced in the United
States, Mexico, or Canada, and only such manufactured articles,
materials, and supplies as have been manufactured in the United
States substantially all from articles, materials, or supplies
mined, produced or manufactured, as the case may be, in the United
States, Mexico, or Canada; provided that other articles, materials,
or supplies may be used in the event and to the extent that the
Administrator shall expressly in writing authorize such use pursuant
to the provisions of the Rural Electrification Act of 1938, being
Title IV of Public Resolution No. 122, 75th Congress, approved June
21, 1938. The Seller agrees to submit to the Purchaser such
certificates with respect to compliance with the foregoing provision
as the Administrator from time to time may require.
Section 3. Patent Infringement. The Bidder shall save harmless
and indemnify the Owner from any and all claims, suits and
proceedings for the infringement of any patent or patents covering
any materials or equipment used in construction of the Project.
Section 4. Permits for Explosives. All permits necessary for the
handling or use of dynamite or other explosives in connection with
the construction of the Project shall be obtained by and at the
expense of the Bidder.
Section 5. Compliance with Statutes and Regulations. The Bidder
shall comply with all applicable statutes, ordinances, rules and
regulations pertaining to the work. The Bidder acknowledges that it
is familiar with the Rural Electrification Act of 1936, as amended,
the so-called ``Kick-Back'' Statute thereto, and 18 U.S.C.
Secs. 287, 1001, as amended. The Bidder understands that the
obligations of the parties hereunder are subject to the applicable
regulations and orders of Governmental Agencies having jurisdiction
in the premises.
Section 6. Equal Opportunity Provisions.
a. Bidder's Representations. [[Page 10255]]
The Bidder represents that:
It has ____, does not have ____, 100 or more employees, and if
it has, that it has ____, has not ____, furnished the Equal
Employment Opportunity-Employers Information Report EEO-1, Standard
Form 100, required of employers with 100 or more employees pursuant
to Executive Order 11246 and Title VII of the Civil Rights Act of
1964.
The Bidder agrees that it will obtain, prior to the award of any
subcontract for more than $10,000 hereunder to a subcontractor with
100 or more employees, a statement, signed by the proposed
subcontractor, that the proposed subcontractor has filed a current
report on Standard Form 100.
The Bidder agrees that if it has 100 or more employees and has
not submitted a report on Standard Form 100 for the current
reporting year and that if this Contract will amount to more than
$10,000, the Bidder will file such report, as required by law, and
notify the owner in writing of such filing prior to the Owner's
acceptance of this Proposal.
b. Equal Opportunity Clause. During the performance of this
Contract, the Bidder agrees as follows:
(1) The Bidder will not discriminate against any employee or
applicant for employment because of race, color, religion, sex or
national origin. The Bidder will take affirmative action to ensure
that applicants are employed, and that employees are treated during
employment without regard to their race, color, religion, sex or
national origin. Such action shall include, but not be limited to,
the following: Employment, upgrading, demotions or transfer;
recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection of training,
including apprenticeship. The Bidder agrees to post in conspicuous
places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this Equal
Opportunity Clause.
(2) The Bidder will, in all solicitations or advertisements for
employees placed by or on behalf of the Bidder, state that all
qualified applicants will receive consideration for employment
without regard to race, color, religion, sex or national origin.
(3) The Bidder will send to each labor union or representative
of workers, with which it has a collective bargaining agreement or
other contract or understanding, a notice to be provided advising
the said labor union or workers' representative of the Bidder's
commitments under this section, and shall post copies of the notice
in conspicuous places available to employees and applicants for
employment.
(4) The Bidder will comply with all provisions of Executive
Order 11246 of September 24, 1965, and the rules, regulations and
relevant orders of the Secretary of Labor.
(5) The Bidder will furnish all information and reports required
by Executive Order 11246 of September 24, 1965, and by rules,
regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to its books, records, and accounts
by the administering agency and the Secretary of Labor for purposes
of investigation to ascertain compliance with such rules,
regulations, and orders.
(6) In the event of the Bidder's noncompliance with the Equal
Opportunity Clause of this Contract or with any of the said rules,
regulations, or orders, this Contract may be canceled, terminated,
or suspended in whole or in part, and the Bidder may be declared
ineligible for further Government contracts or federally assisted
construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, and such other
sanctions may be imposed and remedies invoked as provided in
Executive Order 11246 of September 24, 1965, or by rule, regulation,
or order of the Secretary of Labor, or as provided by law.
(7) The Bidder will include this Equal Opportunity Clause in
every subcontract or purchase order unless exempted by the rules,
regulations, or order of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor.
The Bidder will take such action with respect to any subcontract or
purchase order as the administering agency may direct as a means of
enforcing such provisions, including sanctions for noncompliance;
Provided, however, that in the event Bidder becomes involved in, or
is threatened with, litigation with a subcontractor or vendor as a
result of such direction by the administering agency, the Bidder may
request the United States to enter into such litigation to protect
the interests of the United States.
c. Certificate of Nonsegregated Facilities. The Bidder certifies
that it does not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does
not permit its employees to perform their services at any location,
under its control, where segregated facilities are maintained. The
Bidder certifies further that it will not maintain or provide for
its employees any segregated facilities at any of its
establishments, and that it will not permit its employees to perform
their services at any location, under its control, where segregated
facilities are maintained. The Bidder agrees that a breach of this
certification is a violation of the Equal Opportunity Clause in this
Contract. As used in this certification, the term ``segregated
facilities'' means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker
rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and
housing facilities provided for employees which are segregated by
explicit directive or are in fact segregated on the basis of race,
color, religion, or national origin, because of habit, local custom,
or otherwise. The Bidder agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific
time periods) it will obtain identical certifications from proposed
subcontractors prior to the award of subcontracts exceeding $10,000
which are not exempt from the provisions of the Equal Opportunity
Clause, and that it will retain such certifications in its files.
Section 7. Franchises and Rights-of-Way. The Bidder shall be
under no obligation to obtain or assist in obtaining: Any
franchises, authorizations, permits or approvals required to be
obtained by the Owner from Federal, State, County, Municipal or
other authorities; any rights-of-way over private lands; or any
agreements between the Owner and third parties with respect to the
joint use of poles, crossings, or other matter incident to the
construction and operation of the Project.
Section 8. Nonassignment of Contract. The Bidder shall perform
directly and without subcontracting not less than twenty-five per
centum (25%) of the construction of the Project, to be calculated on
the basis of the total Contract price. The Bidder shall not assign
the Contract effected by an acceptance of this Proposal or any
interest in any funds that may be due or become due hereunder or
enter into any contract with any person, firm or corporation for the
performance of the Bidder's obligations hereunder or any part
thereof, without the approval in writing of the Owner and of the
Surety or Sureties, if any, on any bond furnished by the Bidder for
the faithful performance of the Bidder's obligations hereunder. If
the Bidder, with the consent of the Owner and any Surety or Sureties
on the Contractor's Bond or Bonds, shall enter into a subcontract
with any subcontractor for the performance of any part of this
Contract, the Bidder shall be as fully responsible to the Owner and
the Government for the acts and omissions of such subcontractor and
of persons employed by such subcontractor as the Bidder would be for
its own acts and omissions and those of persons directly employed by
it.
Section 9. Extension to Successors and Assigns. Each and all of
the covenants and agreements herein contained shall extend to and be
binding upon the successors and assigns of the parties hereto.
Section 10. Contractor. Upon acceptance of this Proposal, the
successful Bidder shall be the Contractor and all references in the
Proposal to the Bidder shall apply to the Contractor.
Section 11. Approval by the Administrator. No acceptance of this
Proposal shall become effective until approval in writing of the
Administrator: Provided, however, that no obligations shall arise
hereunder unless such approval is given within forty-five (45) days
from the date of acceptance by the Owner.
________ (Bidder)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
Date ________
The Proposal must be signed with the full name of the Bidder. If
the Bidder is a partnership, the Proposal must be signed in the
partnership name by a partner. If the Bidder is a corporation, the
Proposal must be signed in the corporate name by a duly authorized
officer and the corporate seal affixed and attested by the Secretary
of the Corporation.
Transmission Construction Units
Section 1--Pole Units
A pole unit consists of one pole in place. It does not include
pole-top assembly unit or other parts attached to the pole. The
first two digits indicate the length of the pole; the third digit
shows the classification per A.S.A. [[Page 10256]] (Example: 45-3
means a pole 45 feet long, class 3.)
Species of Timber: ________
Kind of Preservative: (Check one)
1. Creosote ____; 2. Pentachlorophenol ____; 3. Copper Naphthenate
____; 4. Waterborne preservative--CCA ____ ACZA ____
Method of Treatment: (Check one)
1. Pressure ____; 2. Thermal process: ____
Pole Plan Under Which the Poles are to be Furnished: (Check one)
1. Insured Warranted ____; 2. Independently Inspected ____; 3.
Quality Assured ____; 4. Either Insured Warranted, Independently
Inspected, or Quality Assured ____
(Engineer to complete above)
----------------------------------------------------------------------------------------------------------------
Unit Price Extended price--
Unit No. No. of units ------------------------------------------------------------ labor & materials
Labor Materials Labor & materials
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Total, Section 1-- ________
Section 2--Pole-Top Assembly Units
A pole-top assembly unit consists of the hardware, crossarms and
their appurtenances, insulators, etc., except tie wire, required to
support the power conductors and overhead ground wire. It does not
include the pole, the downlead, and butt coil, which are separate
units.
----------------------------------------------------------------------------------------------------------------
Unit Price Extended price--
Unit No. No. of units ------------------------------------------------------------ labor & materials
Labor Materials Labor & materials
----------------------------------------------------------------------------------------------------------------
TH
TP
TS
TSS
TSZ
TUS-1
TUS-2
----------------------------------------------------------------------------------------------------------------
Total, Section 2-- ________
Section 3--Conductor Assembly Units
A conductor assembly unit consists of 1,000 feet of a single
conductor or overhead ground wire, and includes tie wire, sleeves
for splicing, and armor rods with clips or armor wire where
necessary. The length of conductor or overhead ground wire shall be
determined by taking the sum of all straight horizontal span
distances between pole stakes or from center to center of the poles
carrying the conductors. The conductor sizes and types listed are
the manufacturer's designation.
____ Tension Stringing (Engineer check when required.)
----------------------------------------------------------------------------------------------------------------
Unit Price Extended price--
Unit No. No. of units ------------------------------------------------------------ labor & materials
Labor Materials Labor & materials
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Total, Section 3-- ______
As provided for in the specifications, prior to beginning of
work the Bidder will furnish the Engineer the following data on
tension equipment:
Diameter Bull Wheel ________ in.
Diameter Groove ________ in.
Conductor Bending Radius ________ in.
Thickness of Neoprene at Bottom of Groove ________ in.
Stringing Sheave Diameter; Tangent ______ in., Large Angle ______
in.
Section 4--Guy Assembly Units
A guy assembly unit consists of the hardware and wire. Guy
guards are designated separately.
----------------------------------------------------------------------------------------------------------------
Unit Price Extended price--
Unit No. No. of units ------------------------------------------------------------ labor & materials
Labor Materials Labor & materials
----------------------------------------------------------------------------------------------------------------
TG-1
TG-2
TG-3
TG-4
TG-5
----------------------------------------------------------------------------------------------------------------
Total, Section 4-- ________
Section 5--Anchor Assembly Units
An anchor assembly unit consists of the anchor with rod or rods,
complete, ready for attaching the guy wire.
[[Page 10257]]
----------------------------------------------------------------------------------------------------------------
Unit Price Extended price--
Unit No. No. of units ------------------------------------------------------------ labor & materials
Labor Materials Labor & materials
----------------------------------------------------------------------------------------------------------------
TA-1-5
TA-1-8
TA-3
----------------------------------------------------------------------------------------------------------------
Total, Section 5-- ________
Section 6--Miscellaneous Assembly Units
A miscellaneous assembly unit consists of an additional unit
needed in the Project for line construction but not otherwise listed
in the Proposal.
----------------------------------------------------------------------------------------------------------------
Unit Price Extended price--
Unit No. No. of units ------------------------------------------------------------ labor & materials
Labor Materials Labor & materials
----------------------------------------------------------------------------------------------------------------
TM
----------------------------------------------------------------------------------------------------------------
Total, Section 6-- ________
Section 7--Right-of-Way Clearing Units
TM-12. The unit is 1,000 feet in length and ________ (________)
feet in width (to be measured ________ (________) feet on one side
of pole line or centerline of structures) of actual clearing of
right-of-way. This includes clearing of underbrush, tree removal,
and such tree trimming as is required so that the right-of-way,
except for tree stumps which shall not exceed ________ in height,
shall be clear from the ground up on one side of the line of poles
carrying conductors (See Detail A, Drawing TM-12-2A.) The length of
actual clearing shall be measured in a straight line, parallel to
the horizontal line between poles or centerline of structures and
across the maximum dimension of foliage cleared projected to the
ground line (See Detail B, Drawing TM-12-2A.) All trees and
underbrush across the width of the right-of-way shall be considered
to be grouped together as a single length in measuring the total
length of clearing (See Detail C, Drawing TM-12-2A.) Spaces along
the right-of-way in which no trees are to be removed or trimmed or
underbrush cleared shall be omitted from the total measurement. All
lengths thus arrived at, added together and divided by 1,000 shall
give the number of TM-12 units of clearing. The Bidder shall not
remove or trim shade, fruit, or ornamental trees unless so directed
by the Engineer in writing.
TM-12 (1). This unit is identical with TM-12, except the full
width of the right-of-way to be cleared shall be ________ (________)
feet wide (to be measured ________ (________) feet on each side of
the pole line or centerline of structures) (See Detail D, Drawing
TM-12-2A.)
TM-13. The unit, for purpose of quoting, is 1,000 feet in length
of clearing off the right-of-way. The Engineer will select those
trees off the right-of-way that he deems to be a hazard to the line
and will designate them to the Bidder in writing as danger trees.
When so designated, the Bidder shall remove or top such trees at his
option except that the Bidder shall trim and not remove shade, fruit
or ornamental trees unless otherwise directed by the Engineer in
writing (See Drawings TM-12-2A and TM-13 for examples of danger
trees.)
The measurement of length of right-of-way to be cleared shall be
considered as a straight line parallel to the horizontal line
between poles or centerline of structures, such measurement of
length to be based on maximum dimension of foliage (not trunk)
projected to the ground line (See Details E, F, G and H, Drawing TM-
12-2A.) Dead trees having no foliage shall be measured across the
maximum dimension and multiplied by two. (See Detail F, Drawing TM-
12-2A.) Each tree so removed shall be added together to determine
the total length of clearing. All lengths thus arrived at, added
together and divided by 1,000 shall give the number of TM-13 units
(Example: Details E, F, G and H, Drawing TM-12-2A, total 0.10 of a
TM-13 unit.)
TMC-12, TMC-12 (1). These units are identical to the respective
TM units except that chemical treatment of stumps is required in
addition to the clearing of underbrush, tree removal and tree
trimming. TM-14. The unit is 1,000 feet in length and ________
(________) feet in width (to be measured feet on one side of right-
of-way center line) of actual clearing of right-of-way. Trees and
underbrush should be cleared from the ground up within 10 feet of
any structure location. The Engineer will mark the trees and brush
to be cleared to provide ``undulating'' boundaries. Low growing
trees and brush are to be left in the right-of-way to the extent it
will not be hazardous to the line or will not interfere with the
service road. The length of actual clearing shall be measured in a
straight line parallel to the horizontal line between poles or
center line of structures and across the maximum dimension of
foliage cleared projected to the ground line (See Detail B, Drawing
TM-12-2A.) All trees and underbrush cleared across the right-of-way
shall be considered to be grouped together as a single length in
measuring the total length of clearing (See Detail C, Drawing TM-12-
2A.) Spaces along the right-of-way in which no trees are to be
removed or trimmed or underbrush cleared shall be omitted from the
total measurement.
TM-14 (1). This unit is identical with TM-14 except the full
width of the right-of-way to be cleared shall be ________ (________)
feet wide (See Detail D, Drawing TM-12-2A.)
TM-15. The unit is 1,000 feet in length and ________ feet in
width (to be measured ________ (________) feet on one side of the
right-of-way center line) of actual clearing of the right-of-way.
Trees and underbrush should be cleared from ground up within 10 feet
of any structure location. The Engineer will mark the trees and
brush to be cleared to provide a ``feathered'' appearance in the
right-of-way. Low growing trees and brush are to be left in the
right-of-way to the extent it will not be hazardous to the line or
will not interfere with the service road.
The length of actual clearing shall be measured in a straight
line parallel to the horizontal line between poles or center line of
structures and across the maximum dimension of foliage cleared
projected to ground line (See Detail B, Drawing TM-12-2A). All trees
and underbrush cleared across the right-of-way shall be considered
to be grouped together as a single length in measuring the total
length of clearing (See Detail C, Drawing TM-12-2A). Spaces along
the right-of-way in which no trees are to be removed or trimmed or
underbrush cleared shall be omitted from the total measurement.
TM-15 (1). This unit is identical to TM-15 except the full width
of the right-of-way, to be cleared shall be ________ (________) feet
wide (See Detail D, Drawing TM-12-2A).
Additional Requirements. (When specifying TM units denote type
of disposal A or B).
A. Trees, brush, branches and refuse shall, without delay, be
disposed of by such of the following methods as the Engineer will
direct Engineer to strike out methods not to be used)
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (Describe)________
B. Trees that are felled shall be cut to commercial wood lengths,
stacked neatly, and left on the right-of-way for the landowner.
Commercial wood length means the length designated by the Engineer
but in no case shall it be required to be less than ________
(________) feet. Brush, branches and refuse shall, without delay, be
disposed of by such of the following methods as the Engineer will
direct (Engineer to strike out methods not to be used).
[[Page 10258]]
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as
not to obstruct roads, ditches, drains, etc.
4. Other (Describe)________
Transmission Right-of-Way Unit
----------------------------------------------------------------------------------------------------------------
Unit Price Extended price--
Unit No. No. of units ------------------------------------------------------------ labor & materials
Labor Materials Labor & materials
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Total Section 7--________
Section 8--Substation Assembly Units
Description of Construction Units. Each Construction Unit
consists of a complete installation of the designated portion of a
substation as specified on the drawings, together with connections
to associated equipment. Each Construction Unit represents all labor
and material including necessary accessories completely installed
and tested in satisfactory operation. Full identification of each
Construction Unit and all necessary specifications of the
installation is shown on the drawings.
Items of material in each Construction Unit shall be of the
designated size, rating, type, voltage, or other specification in
accordance with the drawings. The bill of material drawing for each
substation shows the identification of the Construction Units under
which the material is to be installed and shows which items of
material may be partly or entirely found in the lists of owner-
furnished materials. All items of equipment, unless otherwise
specified, are mounted on a structure which shall be a Construction
Unit of Group A.
Each Construction Unit is designated by the letter of the Group
to which it belongs and an identifying number. The same item of
equipment carries the same Construction Unit designation in all the
substations. Items of equipment designated by the same Construction
Unit in one substation are of only one kind as to voltage, type and
other specifications. The tabulation of construction units for each
substation is separate and contains all units necessary for
construction of that substation.
Group A. Structures. A Construction Unit consists of a
structure, or structures, with bus supports including insulators and
fittings, buses, conductors and overhead ground wires to adjacent
structures within the substation, grounding material to connect
equipment with the ground bus, and associated material including
mounting brackets, supports for equipment, clamps and connectors,
all as specified in the drawings.
Group B. Three-Pole Group Operated Air Break Switches. A
Construction Unit consists of one 3-pole group operated air break
switch with all accessories and operating mechanisms as specified in
the drawings.
Group C. Lightning Arresters. A Construction Unit consists of
one single-phase lightning arrester.
Group D. Single Pole Disconnecting Switches. A Construction Unit
consists of one single pole disconnecting or by-pass switch as
specified in the drawings. If a fuse disconnect switch is specified,
the fuse is included with the switch.
Group E. Oil Circuit Breakers. A Construction Unit consists of
one complete three-phase power circuit breaker complete with
supporting frame and control cabinet, unless shown otherwise in the
drawings, mounted as specified in the drawings.
Group F. Oil Circuit Reclosers. A Construction Unit consists of
a complete single-phase or three-phase oil circuit recloser as
specified in the drawings.
Group G. Meters, Relays and Instrument Transformers. A
Construction Unit consists of one meter, relay, potential
transformer or current transformer.
Group H. Transformers. A Construction Unit consists of one power
transformer or one station service transformer either single-phase
or three-phase as specified in the drawings.
Group I. Voltage Regulators. A Construction Unit consists of one
single-phase or three-phase voltage regulator as specified in the
drawings.
Group J. Communications and Supervisory Control Equipment. A
Construction Unit consists of carrier current equipment, microwave,
or other types of communications and supervisory control equipment
as specified in the drawings.
Group K. Conduit and Cable. A Construction Unit consists of the
wire, cable, conduit and accessories necessary to complete the
installation of equipment in accordance with the specifications and
drawings, where such installation has not been included in other
Groups.
Group L. Foundations. A Construction Unit consists of concrete
footings and foundations except for the fence, as specified in the
drawings.
Group M. Site Preparation. A Construction Unit consists of
clearing, grading, drainage work, and surfacing, as specified in the
drawings.
Group N. Fence. A Construction Unit consists of the complete
installation of the fence, gates, etc., as specified in the
drawings.
Group O. Station Grounding. A Construction Unit consists of the
complete ground bus including ground rods, grounding mats or
platforms, except as otherwise provided in other Groups, with
connections to structures, equipment, and fence as specified in the
drawings.
Group P. Building. A Construction Unit consists of a control
building or cabinet, on a foundation of Group L and the facilities
and equipment installed therein as specified in the drawings, except
as otherwise provided in other Groups.
Other Groups. The Engineer shall specify such additional Groups
as may be necessary for the completion of the Project. Description
of these Groups shall be provided by an addition to this Section of
the Specifications for Construction.
________ Station Construction Units
Unit No. ________
Name and Description of Construction Unit ________
No. of Units ________
Unit Prices ________
Labor ________
Materials ________
Labor and Materials ________
Extended Price--Labor and Materials ________
Total Price ________
Proposal Summary
Recapitulation of Sections:
Section--1 ________ $ ________
Section--2 ________ $ ________
Section--3 ________ $ ________
Section--4 ________ $ ________
Section--5 ________ $ ________
Section--6 ________ $ ________
Section--7 ________ $ ________
Section--8 ________ $ ________
Total ________ $ ________
Acceptance
Subject to the approval of the Administrator, the Owner hereby
accepts the foregoing Proposal of the Bidder, ________ for the
construction of the following:
Transmission Construction Units: Sections: ________
The total contract price is $ ________
________ Owner
By ________ President
________ Secretary
________ Date of Contract
[End of clause]
Secs. 1726.353-1726.399 [Reserved]
Subpart J--Contract Closeout
Sec. 1726.400 Final contract amendment.
As needed, a final contract amendment will be prepared and
processed in accordance with Sec. 1726.24(b) prior to or in conjunction
with the closeout of the contract.
Sec. 1726.401 Material contract closeout.
This section is applicable to contracts executed on RUS Form 173.
(a) Delivery inspection. The borrower (acting through its engineer,
if applicable) will verify that all materials are delivered in proper
quantities, in good condition, and in compliance with applicable
specifications.
(b) Closeout documents. The borrower (acting through its engineer,
if [[Page 10259]] applicable) will obtain from the supplier a ``Buy
American'' certificate, RUS Form 213, any manufacturer's guarantee(s)
and, if applicable, a copy of RUS Form 224, Waiver and Release of Lien.
Closeout documents for materials contracts need not be submitted to RUS
unless specifically requested by RUS on a case by case basis.
(c) Final payment. Upon completion of the actions required under
paragraphs (a) and (b) of this section, the borrower shall make final
payment to the supplier in accordance with the provisions of the
material contract or written purchase order.
Sec. 1726.402 Equipment contract closeout.
This section is applicable to contracts executed on RUS Form 198.
(a) Final inspection and testing of equipment. The borrower (acting
through its engineer, if applicable) will perform the final inspection
and testing of equipment as appropriate for the specific equipment. The
borrower (acting through its engineer, if applicable) will schedule
such inspection and testing at a time mutually agreeable to the
borrower, engineer, and the supplier or manufacturer. Within thirty
(30) days after completion of the inspection and testing, the borrower
(acting through its engineer, if applicable) will prepare a report of
the inspection and testing, obtain a copy of the report from the
engineer, and submit a copy to the supplier or manufacturer. This
report must include a detailed description of the methods of conducting
the test(s), observed data, comparison of guaranteed and actual
performance, and recommendations concerning acceptance. The borrower
will obtain from the engineer a written certification stating that the
equipment has been installed, placed in satisfactory operation and
tested, and meets the contract requirements. Where more than one-
hundred and eighty (180) days have elapsed since the delivery of the
equipment and the equipment has not been installed or tested, the
contract may be closed out upon certification by the engineer that the
equipment has been inspected and appears to be in accordance with the
contract requirements.
(b) Closeout documents. (1) The borrower (acting through its
engineer, if applicable) will obtain the following executed documents:
(i) Certification by the project engineer in accordance with
paragraph (a) of this section.
(ii) All guarantees or warranties.
(iii) A ``Buy American'' certificate, RUS Form 213, from the
supplier or manufacturer.
(2) Closeout documents for materials contracts need not be
submitted to RUS unless specifically requested by RUS.
(c) Final payment. Upon completion of the actions required under
paragraphs (a) and (b) of this section, the borrower will make final
payment to the supplier or manufacturer in accordance with the
provisions of the equipment contract.
Sec. 1726.403 Project construction contract closeout.
This section is applicable to contracts executed on RUS Forms 200,
203, 257, 764, 786, 830, and 831.
(a) Final test of equipment supplied under a construction contract.
If equipment is supplied under a construction contract, the borrower
(acting through its architect or engineer, if applicable) will perform
the final inspection and testing of equipment as appropriate for the
specific equipment. The borrower (acting through its architect or
engineer, if applicable) will schedule such inspection and testing at a
time mutually agreeable to the borrower, architect or engineer, and the
contractor. Within thirty (30) days after completion of the inspection
and testing, the borrower (acting through its architect or engineer, if
applicable) will prepare a report of the inspection and testing, obtain
a copy of the report from its architect or engineer, and submit a copy
to the contractor. This report must include a detailed description of
the methods of conducting the test(s), observed data, comparison of
guaranteed and actual performance, and recommendations concerning
acceptance. The borrower will obtain from its architect or engineer a
written certification stating that the equipment has been installed,
placed in satisfactory operation and tested, and meets the contract
requirements. Where more than one-hundred and eighty (180) days have
elapsed since the delivery of the equipment and the equipment has not
been installed or tested, the contract may be closed out upon
certification by its architect or engineer that the equipment has been
inspected and appears to be in accordance with the contract
requirements.
(b) Final inspection of construction. The borrower will require the
contractor to notify the architect or engineer when construction is
complete. The borrower (acting through the architect or engineer, if
applicable) will schedule such final inspection at a time mutually
agreeable to the borrower, architect or engineer, contractor, and the
respective RUS General Field Representative (GFR), if the GFR has
notified the borrower or its architect or engineer of a desire to
observe the final inspection. The borrower (acting through its
architect or engineer, if applicable) will perform a final inspection
of the construction and notify the contractor of any required changes
or corrections.
(c) Closeout documents. (1) Upon satisfactory completion of
construction (including all changes and corrections by the contractor),
the borrower (acting through its architect or engineer, if applicable)
will obtain executed copies of the following documents:
(i) RUS Form 181, Certificate of Completion, Contract Construction
for Buildings (for contracts executed on RUS Form 257), or RUS Form
187, Certificate of Completion, Contract Construction (for contracts
executed on all other forms under this section).
(ii) RUS Form 213, ``Buy American'' certificate.
(iii) RUS Form 224, Waiver and Release of Lien, from each
manufacturer, supplier, and contractor which has furnished material or
services or both in connection with the construction.
(iv) RUS Form 231, Certificate of Contractor.
(v) RUS Form 254, Construction Inventory, including all supporting
documents, such as RUS Forms 254a-c, construction change orders, and
amendments for contracts executed on RUS Forms 203, 764, 830 or 831.
(vi) Certification by the project architect or engineer in
accordance with Sec. 1726.403(a), if applicable.
(vii) Final design documents, as outlined in part 1724 of this
chapter.
(2) Distribution of closeout documents. (i) The borrower will
retain one copy of each of the documents identified in paragraph (c)(1)
of this section in accordance with applicable RUS requirements
regarding retention of records.
(ii) For contracts subject to RUS approval, the borrower will
submit the following closeout documents for RUS approval (through the
GFR except for generation projects):
(A) RUS Form 181, Certificate of Completion, Contract Construction
for Buildings (for contracts executed on RUS Form 257), or RUS Form
187, Certificate of Completion, Contract Construction (for contracts
executed on all other forms under this section).
(B) RUS Form 231, Certificate of Contractor.
(C) RUS Form 254, Construction Inventory, including all supporting
documents, such as RUS Forms 254a-c and construction change orders, for
[[Page 10260]] contracts executed on RUS Forms 203, 764, or 831.
(iii) For contracts not subject to RUS approval, the closeout is
not subject to RUS approval. The borrower will send one copy of RUS
Form 181 or RUS Form 187 (as applicable) to RUS for information prior
to or in conjunction with the applicable RUS Form 219, Inventory of
Work Orders. The remaining closeout documents need not be sent to RUS
unless specifically requested by RUS.
(d) Final payment. (1) The borrower will make final payment to the
contractor upon completion of approval of all closeout documents by the
parties to the contract, in accordance with the terms of the
construction contract.
(2)(i) Upon receipt of final payment by the contractor, the
borrower will obtain from the contractor a certification of receipt of
final payment in the following form:
``The undersigned acknowledges receipt of the final contract
payment of $____ as satisfaction in full of all claims of the
undersigned under the construction contract between the undersigned
and ____ (borrower), dated as amended, and as complete performance
by the latter of all obligations to be performed by it pursuant
thereto. The total amount received under this contract is shown
above.''
(ii) The certification in paragraph (d)(2)(i) of this section is to
be executed for the contractor by: the sole owner, a partner, or an
officer of the corporation. Where this certification is executed for
the corporation by a person other than the president, a certified copy
of the authorization from the corporate board must be included with the
certification. This certification is not a replacement for itemized
invoices.
Sec. 1726.404 Non-site specific construction contract closeout.
This section is applicable to contracts executed on RUS Forms 201,
790, and 792.
(a) Final test of equipment supplied under a construction contract.
If equipment is supplied under a construction contract, the borrower
(acting through its engineer, if applicable) will perform the final
inspection and testing of equipment as appropriate for the specific
equipment. The borrower (acting through its engineer, if applicable)
will schedule such inspection and testing at a time mutually agreeable
to the borrower, its engineer, and the contractor. Within thirty (30)
days after completion of the inspection and testing, the borrower
(acting through its engineer, if applicable) will prepare a report of
the inspection and testing, obtain a copy of the report from its
engineer, and submit a copy to the contractor. This report must include
a detailed description of the methods of conducting the test(s),
observed data, comparison of guaranteed and actual performance, and
recommendations concerning acceptance. The borrower will obtain from
the engineer a written certification stating that the equipment has
been installed, placed in satisfactory operation and tested, and meets
the contract requirements. Where more than one-hundred and eighty (180)
days have elapsed since the delivery of the equipment and the equipment
has not been installed or tested, the contract may be closed out upon
certification by the engineer that the equipment has been inspected and
appears to be in accordance with the contract requirements.
(b) Final inspection of construction. The borrower will require the
contractor to notify its engineer when construction of a section of the
project is complete. The borrower (acting through its engineer, if
applicable) will schedule such final inspection at a time mutually
agreeable to the borrower, its engineer, contractor, and the respective
GFR, if the GFR has notified the borrower or its engineer of a desire
to observe the final inspection. The borrower (acting through its
engineer, if applicable) will perform a final inspection of the
construction of that section of the project and notify the contractor
of any required changes or corrections.
(c) Closeout documents. (1) Upon satisfactory completion of
construction of a section of the project (including all changes and
corrections by the contractor), the borrower (acting through its
engineer, if applicable) will obtain executed copies of the following
documents:
(i) RUS Form 792b, Certificate of Contractor and Indemnity
Agreement
(ii) RUS Form 213, ``Buy American'' certificate.
(iii) Certification by the project engineer in accordance with
paragraph (a) of this section, if applicable.
(iv) Final design documents, as outlined in part 1724 of this
chapter.
(2) Distribution of closeout documents. (i) The borrower will
retain one copy of each of the documents identified in paragraph (c)(1)
of this section in accordance with applicable RUS requirements
regarding retention of records.
(ii) For contracts not subject to RUS approval, the closeout is not
subject to RUS approval and the closeout documents need not be sent to
RUS unless specifically requested by RUS.
Sec. 1726.405 Inventory of work orders (RUS Form 219).
Upon completion of the contract closeout, the borrower shall
complete RUS Form 219, Inventory of Work Orders, in accordance with
part 1717, Post-Loan Policies and Procedures Common to Insured and
Guaranteed Electric Loans, of this chapter.
Dated: February 1, 1995.
Bob J. Nash,
Under Secretary, Rural Economic and Community Development.
[FR Doc. 95-2843 Filed 2-22-95; 8:45 am]
BILLING CODE 3410-15-P
