515 Telephone System Construction Contract(Labor & Materials

Telecommunications System Construction Policies and Procedures

UTP_form_515

Telecommunications System Construction Policies and Procedures

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United States
Department of
Agriculture

Rural
Utilities
Service
RUS Form 515
September 2001

Telecommunications
System
Construction Contract
(Labor and Materials)

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information unless it displays a valid OMB
control number. The valid OMB control number for this information collection is 0572-0059. The
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For sale by the Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402-9325

P & S SERIAL NO.______________

Telecommunications System
Construction Contract
(Labor and Materials)
RUS Contract Form 515
SEPTEMBER 17, 2001

U.S. Department of Agriculture
Rural Utilities Service

This page intentionally left blank.

TELECOMMUNICATIONS SYSTEM CONSTRUCTION CONTRACT
(Labor and Materials)
The Complete Construction Contract Consists of the Following:
I. RUS Contract Form 515, Telecommunications System
Construction Contract, which includes:
A.
B.
C.
D.
E.
II.

Notice to Bidders (Page 1)
Instructions to Bidders (Page 5)
Contractor's Proposal (Page 23)
Construction Agreement (Page 115)
Engineering, Construction, and Inspection Details
(Page 128)

One or more of the specification packets made a part of the
Contract by reference as indicated on page 13.
A.

RUS Form 515a, Specifications and Drawings for
Construction of Buried Plant (RUS Bulletin 1753F-150).

B.

RUS Form 515b, Specifications and Drawings
for Underground Plant (RUS Bulletin 1753F-151).

C.

RUS Form 515c, Specifications and Drawings for Construction of
Aerial Plant (RUS Bulletin 1753F-152).

D.

RUS Form 515d, Specifications and Drawings for Service
Entrance Installations at Customer Access Locations
(RUS Bulletin 1753F-153).

III. Plans, including Maps, Construction Sheets and Special
Drawings prepared by the Owner's Engineer (Current version
of related forms to be utilized).
Check List of Pages to be Completed
Engineer - Prior to Release for Bids Completes:
Pages
Pages
Page
Pages

1-3
5-12
23
25-89

Page

91

Pages 93-95
Page
Page
Page
Page

97
99
101
110

Notice to Bidders
Paragraphs 1, 2, 5, 8, 18c, 18d, and 18g
Contractor's Proposal
Listing of Units, Quantities and Other
information as Applicable
"Value and Disposition of Units to be
Removed" Table (Columns 1-7)
List of Special Assembly Unit Drawings and
Special Guide Drawings, and List of Changes
List of Cable Plant Layout Maps
List of Construction Sheets
List of Special Arrangement Units
Paragraph 14

i

Page 111
Paragraph 17, 18
Pages 116-117
Article II, Section 1(b)
Page 135-137
Schedule of Acceptance Tests and Measurements
Page 138
Article VI, Section 2
"W" units in RUS Forms 515a, 515b, 515c, and 515d, as Applicable.
Owner – Prior to Release for Bids Completes:
Pages
Pages
Page
Page

2, and 138
3, and 12
19
21-22

Liquidated Damage Amount
Signature and Date
Interim Financing, as Applicable
Supplement A to Construction Contract RUS
Form 515, as Applicable

Bidder - Prior to Submitting Bid Completes:
Page
Page

13
15

Page

17

Page
Page

19
21-22

Pages
Pages
Page
Page
Page

25-89
103-105
109
112
113

Bid Bond or Certified Check
Certification Regarding Debarment,
Suspension, Ineligibility and Voluntary
Exclusion – Lower Tier Covered Transactions
Certification for Contracts, Grants, Loans,
and Cooperative Agreements (Lobbying
Certification)
Interim Financing, as Applicable
Supplement A to Construction Contract RUS
Form 515, as Applicable
Unit Prices and Extensions, as Applicable
Proposal Summary
Contractor's License, Paragraph 10
Paragraph 21
Signature, Address, Date and Seal

Engineer - On Acceptance Completes:
Page

115

Page

121

Top of Page and Article I, Section 1 (except
for date)
Article III, Section 1(b)

Owner - On Acceptance:
Page
Page

115
145

Dates Construction Agreement
Signs Construction Agreement

Bidder - Upon Notification of Acceptance:
Page 145
Pages 151-157

Signs Construction Agreement
Inserts executed Contractor's Bond

ii

TELECOMMUNICATIONS SYSTEM CONSTRUCTION CONTRACT (RUS FORM 515)
INDEX
Page

Page
A

Bond . . 7-9, 107, 109, 121, 138,
. . . . . . . . . . . 142, 151-157
Certificates . . . . . . 122, 147
Default . . . . . . . . . 122, 138
Employees . . . . . . . . . . 118
License . . . . . . . . . . . 109
Negligence . . . . . . . . 123-125
Proposal . . . . . . . . . . . 23
Qualifications . . . . . . . . . 3
Superintendent . . . . . 109, 118

ACCEPTANCE TESTS . . . 131, 135-137
ACCIDENTS . . . . . . . . . 125, 126
ANTI-KICKBACK ACTS . . . . . 7, 144
B
BIDDERS:
Bid Bond . . . . . . . . 8, 9, 13
Notice . . . . . . . . . . . . 1-3
Instructions . . . . . . . . 5-12
Qualifications . . . . . . . . . 3
BOND:
Bid . . . . . . . . . . . 8, 9, 13
Contractors . . 7, 8, 9, 107, 109,
. . . . . . 121, 138, 142, 151-157

DAMAGES . . . . . . . . . . . 2, 138
DEBARMENT & SUSPENSION . . . 15, 113
DEFINITIONS . . . . . . . . 139-141
DRAWINGS, LIST OF SPECIAL . . . . 93

C

E

CERTIFICATE:
Buy American . . . . 141, 142, 167
Completion . . 120, 121, 122, 140
Contractor's . . . . . . 122, 147
CERTIFIED CHECK . . . . . . . . 8, 9
CLEARING, RIGHT-OF-WAY
. . . . 125
CONTRACT:
Amendment . . . . . . . . 117, 165
Amount . . . . . . . . . . . . 121
Approval, by Administrator . . 145
Date . . . . . . . . . . . . . 115
Description of . . . . . . . . 116
Nonassignment . . . . . . . . 142
Price . . . . . . . . . . . . 121
Subcontract . . . . 123, 142, 159
Termination . . . . . . . . . 138
CONSTRUCTION:
Agreement . . . . . . . . . . 115
Changes . 108, 111, 117, 121, 163
Cleanup . . . . . . . . . 120, 140
Commencement . . . . . . . . . 110
Completion . 2, 8, 10, 116-127, 140
Completion Time . . . . . . . 110
Corridor . 5-6, 10-11, 124, 140-141
Delay . . . . . 12, 110, 116, 138
Extension of Time . . . . . 12, 117
Foreman . . . . . . . . . 109, 118
Manner . . . . . . . . . 116, 117
Sequence . . . . . . . . 116, 117
Superintendent . . . . . 109, 118
Supervision . . . . . . . 118, 131

EASEMENT . . . . . . . . . . 10, 11
ENGINEERING DETAILS . . . . . . 128
ENVIRONMENT . . . . . . . . 117-123
EQUAL OPPORTUNITY . . . 112, 142-144
EXPLOSIVES . . . . . . . . . . . 127

D

F
FRANCHISES

. . . . . . . . . . . 144
G

GUARANTEES

. . . . . . . . . . . 127
I

INSPECTION . . . 107, 108, 118, 119,
. . . . . . . . . . . . . . 128-135
INSURANCE . . . . . . . . . 126, 127
INTEREST . . . . . . . . . 121, 122
INTERIM FINANCING . . . . . . . . 19
INVENTORY . . . . . . 108, 111, 120,
. . . . . . . . . . . 121, 129, 140
IRREGULARITIES . . . . . . . . . . 9
J
JOINT USE

CONTRACTORS:

iii

. . . . . . . . . . 6, 143

L
SUPPLEMENT A . . . . . . . . . . 21
SURETIES . . . . . 109, 138, 151-157

LICENSE, CONTRACTOR'S . . . . . 109
LIENS, RELEASE . . . . 120, 122, 149
LIQUIDATED DAMAGES . . . . . 2, 138
LOBBYING CERTIFICATE . . . . . . 17

T
TAXES . . . .
TESTS:
Acceptance,
Precutover
TRIMMING . .

M
MAPS . . . . . . . . . . 95, 97, 128
MATERIALS:
Acceptable List . . . . . . . 107
Condemned . . . . . . . . . . 119
Defective . . . . . 119, 120, 125
Eligible Country . . . . . . . 140
Furnished by Owner . . 10, 21, 109
Inspection . . . . 107, 108, 118,
. . . . . . . . . . . . . . 128-135
Prices . . . . . . . 10, 103, 105
Purchase . . . . . . 127, 141, 142

. . . . . 142-144

PATENTS . . . . . . . . . . . . 127
PAYMENTS:
Contractor . . . 118, 119, 120-122
Final . . . . . . . . . . 118-123
Materialmen . . . . . . . . . 123
Partial . . . . . . . . . 120-122
Subcontractor . . . . . . 123, 141
PERMITS . . . . . . 10, 11, 127, 144
PRETESTING INSPECTION . . . 131-137
PRICE:
Contract . . . . . . . . . . . 121
Labor and Material . . .10, 23-89,
. . . . . . . . 107, 108, 110, 111
Unit . . . . . . . . . .10, 23-89,
. . . . . . . . 107, 108, 110, 111
PROJECT:
Consists of . . . . . . . . . . . 1
Definition . . . . . . . . . . 140
Delay . . . . . . . . . 2, 12, 117
Delivery of Possession and Control
. . . . . . . . . . . 125, 126, 138
Location . . . . . . . . . . . . 1
PROPOSAL:
Acceptance . . . . . . . . . . 115
Contractor's . . . . . . . . . 23
Summary . . . . . . . . . 103, 105
R
REMEDIES . . 119, 138, 139, 151-157
RIGHT-OF-WAY . . . . . 10, 11, 111,
. . . . . . . . . . . . . 125, 144
S
. . . . .

Outside Plant . 128-137
. . . . . . . . . . 126
. . . . . . . . 123-125

WORKMANSHIP . . . 118-120, 125-127,
. . . . . . . . . . . . . 132-135
WORKMEN”S COMPENSATION . . 126, 127

P

SUBCONTRACT

8, 110

W

N
NONDISCRIMINATION

. . . . . . . .

123, 142, 159

iv

NOTICE TO BIDDERS
TELECOMMUNICATIONS OUTSIDE PLANT PROJECT

Sealed proposals for the construction, including the supply of
necessary Labor, materials, and equipment, of a rural
telecommunications project as described below:
Project Number: _________________________________________________
Company Name: ___________________________________________________
Exchange(s): ____________________________________________________
_________________________________________________________________
County(ies): ____________________________________________________
State(s): ______________________________________________________;
shall be received at the following location and time:
Address: ________________________________________________________
Bid Date: _______________________________________________________
Time: _________________,

__M, ___T, at which time the proposals

shall be publicly opened and read.
The project shall consist of the following miles
[kilometers (km)] of plant:
Aerial:

__________ miles (__________ km);

Buried:

__________ miles (__________ km);

Underground:

__________ miles (__________ km);

Conduit:

__________ miles (__________ km);

1

Service Entrances

__________ miles (__________ km);

Number of Service Entrances:
Aerial __________;

Buried __________.

The number of cable placement operations used at any one time
shall not exceed __________.

The time for Completion of

Construction of the Project shall be __________ calendar days
excluding Saturdays, Sundays, and legal holidays) from the
contract commencement date.

Liquidated damages in the amount of

____________________ per day shall apply for each and every day
that construction is delayed after giving effect to extensions of
time as provided for in the contract.

The Plans, Specifications, and Construction Sheets 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 $

(per set).

The Plans, Specifications,

and Construction Sheets may be examined at the offices of the
Owner or Engineer.

Each set of Plans, Specifications and

Construction Sheets will have a serial number, assigned by the
Engineer, and the number of each set with the name of the
purchasers will be recorded by the Engineer.

Bids will be

accepted only from original purchasers or from some other
qualified Bidder to whom such a set has been transferred by the

2

original purchaser with the approval of the Owner, at least
forty-eight (48) hours prior to the Pre-Bid Conference set for
at the following location: _____________________________________
________________________________________________________________

No proposals will be considered from bidders that do not attend
the Pre-Bid Conference unless the bidder has been notified by the
Engineer prior to the Pre-Bid Conference that such bidder's
attendance is not required.

Notes covering the Pre-Bid

Conference will be prepared by the Engineer and distributed to
all bidders attending the Pre-Bid Conference.

Bidders shall file with the Engineer at least

days in

advance of the scheduled Pre-Bid Conference, the Bidder's
Qualifications.

The Owner or Engineer will not release a set of

Plans, Specifications, and Construction Sheets bearing a serial
number to a bidder until after the Bidder's Qualifications have
been approved by the Engineer on behalf of the Owner.

Questions

relating to Bidder's Qualifications shall be resolved prior to
the Pre-Bid Conference.

______________________

___________________________

(Date)

(Borrower Name)

By __________________________
(Signature)

3

This page intentionally left blank.

4

INSTRUCTIONS TO BIDDERS

1. Sealed proposals for the construction, including the
supply of necessary labor, materials, and equipment, of a rural
telecommunications project 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,
, _____, (a copy of the Loan Contract may be
dated
examined at the office of the Owner) and to be known as Project
_________________________________________________________________
_________________________________________________________________
which is to be part of the System known as_______________________
will be received by the Owner on or before
o'clock __M.,
____T, ____________, 20
, at the following location:
_________________________________________________________________
________________________________________________________________;
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. The Project, located in the following County(ies): _____
________________________________________________________________;
in the State(s) of
, all as more fully
described in the Plans, Specifications, Construction Sheets,
Maps, Special Drawings, and Description of Assembly Units
therefore hereinafter referred to will consist of the following
miles (km) of telecommunication lines and associated facilities:
a.

Buried Plant - Total Route Miles

(

km)

Construction Corridor
New

Miles

(

km)

Existing

Miles

(

km)

5

b.

Underground Plant - Total Route Miles

(

km)

Conduit System:
Construction Corridor:
New

Miles

(

km)

Existing

Miles

(

km)

Miles

(

km)

Innerducts placed in:
Conduit

Underground Cable in Conduit Systems:
New

Miles

(

km)

Existing

Miles

(

km)

Manholes:
c.

_________ (number)

New Aerial Plant - Total Route Miles

(

km)

New (Including Rebuilt Miles on Which Substantially All
Poles Are To Be Replaced)
- Route Miles

(

km)

Pole Line w/ Self Supporting Fiber Optic Cable
- Route Miles

(

km)

(

km)

(

km)

Pole Line with Cable
- Route Miles
Joint Use - Electric – Cable
- Route Miles

Joint Use – Electric - Self Supporting Fiber Optic Cable
- Route Miles

(

km)

(

km)

Joint Use - Other than Electric Cable
- Route Miles
6

d.

Modification of Existing Aerial Plant –
- Route Miles
(
km)
(Includes all lines on which substantial number of poles
are retained and which are not included in the above
Classification)

e.

Service Entrances -

Route Miles

(

km)

(

km)

(

km)

Buried Service Entrances – Number_____
- Route Miles
Aerial Service Entrances – Number_____
- Route Miles

3. Proposals and all supporting instruments must be
submitted in their entirety 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 ink or
typewritten. No alternations 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 a careful examination of the site of the Project and of the
Plans, Specifications, Construction Sheets, Maps, Special
Drawings, Description of Assembly Units, and forms of
Construction Agreement and Contractor's Bond attached hereto, 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 Anti-Kickback Acts, as amended (40 USC 276c;
41 USC 51 et seq.) and regulations issued pursuant thereto.
5.

To facilitate the Bidder's meeting the requirements of

Paragraph 4, a

day Pre-Bid Conference is scheduled at the

following location _____________________________________________,
on

commencing at
(Date)

,___M, ___T.
(Time)

7

At the Pre-Bid

Conference, qualified representatives of the Engineer and/or
Owner, and Contractor will be prepared to discuss the project
plans in detail including previous construction experience. They
will also provide assistance to personnel of the Bidder for
visiting existing representative cable routes and locations, if
any, that may require special construction planning. All Bidders
are required to attend the Pre-Bid Conference or furnish
information to the satisfaction of the Engineer prior to the PreBid Conference, that the Bidder, through prior visitation or
previous construction work in the Area, has adequate familiarity
with the site and plans for the project.
No proposal shall be accepted or considered from Bidders that
do not attend the Pre-Bid Conference or have not been notified by
the Engineer prior to the Pre-Bid Conference, that their
attendance is not required.
6. Each Bidder shall include and shall be deemed to have
included, in the price quoted in the Contractor's Proposal for
each Assembly Unit, the amounts which it is estimated will be
payable by the successful Bidder or by the Owner on account of
taxes imposed by any taxing authority upon the sale, purchase, or
use of materials, supplies and equipment, or services or labor or
installation thereof, to be incorporated in the Project as part
of such Assembly Unit. All taxes of the foregoing descriptions
shall be payable by the Bidder which shall be awarded the
Contract for the construction of the Project.
7. 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.
8. Where buried plant is included in the construction of the
Project, the number of cable placement operations that may be
used at any one time shall not exceed

.

9. The time for Completion of Construction of the Project
shall be as specified by the Owner in the Proposal.
10. 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

8

or check shall be held by the Owner until a Proposal is accepted
and a satisfactory Contractor's Bond is furnished by the
successful Bidder and such acceptance has been approved by the
Administrator, or for a period not to exceed ninety (90) 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. The successful Bidder will be required to enter into a
Contract with the Owner and to furnish a Contractor's Bond, in
one of the forms 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. Should the successful Bidder fail or refuse to execute a
Contract and to furnish a Contractor's Bond within fifteen (15)
days after written notification of the award of the Contract 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 amount (up to 10% of
the Proposal) 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 Contract or to furnish a satisfactory
Contractor's Bond.
13. The Contract, when executed, shall be deemed to include
the entire agreement between the parties thereto, and the
Contractor 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. 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.
15. 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

9

Assembly Units. Lack of such balance may be considered as a
reason for rejecting a Proposal.
16. 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. The terms "Administrator", "Engineer", "Supervisor"
"Contractor's Proposal", "Project", "Section", "Completion of
Construction", "Completion of Project", "Cleanup", "Work Sector",
"Construction Corridor", "Reduced Construction Corridor", and
"Construction Sheets" as used throughout this Contract shall be
defined in the Construction Agreement, Article VII, Section 1.
18. The Owner represents:
(a) If by other provisions of the contract documents the
Owner shall have undertaken to furnish any materials for
the construction of the Project, such materials are on
hand at locations which may be determined by inquiry by
Bidders from the Engineer 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 construction.
(b) That all items to be accomplished by the Owner to
facilitate construction have been accomplished or will be
completed prior to construction activity.
(c)

Staking has been completed for the entire project,
except for Service Entrances, as of

.
(Date)

(d)

Easements and
Corridor used
been obtained
authorities.

rights-of-way for the Construction
for the placement of buried cable have
from property owners or public
Public rights-of-way, totaling

approximately
miles (
km) and
private rights-of-way, totaling approximately
miles (
km) are as shown on the
Construction Sheets. All rights-of-way obtained that do
not provide sufficient width to meet the specifications
for Construction Corridor as defined in the

10

specifications are designated as "Reduced Construction
Corridor". The actual widths available for cable
placement in the reduced areas are shown on the
respective Construction Sheets. Rights-of-way not
obtained are designated as "Unobtained Construction
Corridor" and are shown on the Construction Sheets.
Where the placement of the cable is restricted within the
Construction Corridor, these locations are designated
"Restricted Construction Corridor". The nature of the
restriction of the replacement of the cable is as shown
on the Construction Sheets. When the cause of a
restriction is the presence of existing
telecommunications plant or foreign utilities, the
general location of these facilities is as shown on the
Construction Sheets.
Since these facilities can be
located definitely only by exposing them to view, all
Construction Sheet representations as to their locations
are approximate.
(e) Easements and rights-of-way for placement of all Service
Entrances have not been obtained. Such rights-of-way
will be obtained as required to avoid delay in placement
of such Service Entrances.
(f) The Owner will have available all funds necessary for
immediate payment for the construction of the Project.
(g) Where buried plant is involved, the Owner has obtained
permission from State and local highway and road
authorities to bury cable and set housings on the highway
and road rights-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 rights-of-way. The successful Bidder will be
required to furnish proof satisfactory to the Owner of
compliance with this requirement. If required by the
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 performance bond required under this Contract. The
approval of a Bidder's Qualifications by the Owner or the
acceptance of a Bid from any Bidder is not to be
construed as approval of the Bidder's equipment or
11

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:

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 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 undertaking or by any such incorrect representation;
provided the Bidder shall have promptly notified the Owner, in
writing within ten (10) days, 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.

_________________

___________________________

(Date)

(Owner)

By

___________________________
(Authorized Signature)

12

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB
control number. The valid OMB control number for this information collection is 0572–0107. The time required to complete this information collection is estimated to average .05 hour per
response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

U.S. Department of Agriculture
Rural Utilities Service

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 ____________________________________________________________________.

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 ________________________________ , 20______ .
(Seal)
Principle
ATTEST:

By

Secretary

Title
(Seal)
Surety

ATTEST:

By

Secretary

Title

13

RUS FORM 307 (Rev. 02-00)

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14

_________________________________________________________________
CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY
AND VOLUNTARY EXCLUSION – LOWER TIER COVERED TRANSACTIONS
_________________________________________________________________
This certification is required by the regulations implementing
Executive Order 12549, Debarment and Suspension, 7 CFR Part 3017,
Section 3017.510, Participants' responsibilities. The
regulations were published as Part IV of the January 30, 1989,
Federal Register (pages 4722-4733). Copies of the regulations
may be obtained by contacting the Department of Agriculture
agency with which this transaction originated.
(BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS ON REVERSE)
(1)

The prospective lower tier participant certifies, by
submission of this proposal, that neither it nor its
principals is presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded from
participation in this transaction by and Federal department
or agency.

(2)

Where the prospective lower tier participant is unable to
certify to any of the statements in this certification, such
prospective participant shall attach an explanation to this
proposal.

_________________________________________________________________
Organization Name
PR/Award Number or Project Name
_________________________________________________________________
Name and Title of Authorized Representative
_________________________________________________________________
Signature
Date

15

INSTRUCTIONS FOR CERTIFICATION
1.

By signing and submitting this form, the prospective lower tier
participant is providing the certification set out on the reverse side in
accordance with these instructions.

2.

The certification in this clause is a material representation of fact upon
which reliance was placed when this transaction was entered into. If it
is later determined that the prospective lower tier participant knowingly
rendered an erroneous certification, in addition to other remedies
available to the Federal Government, the department or agency with which
this transaction originated may pursue available remedies, including
suspension and/or debarment.

3.

The prospective lower tier participant shall provide immediate written
notice to the person to which this proposal is submitted if at any time
the prospective lower tier participant learns that its certification was
erroneous when submitted or has become erroneous by reason of changed
circumstances.

4.

The terms "covered transaction," "debarment," "suspended," "ineligible,"
"lower tier covered transaction," "participant," "person," "primary
covered transaction," "principal," "proposal," and "voluntarily excluded,"
as used in this clause, have the meanings set out in the Definitions and
Coverage sections of rules implementing Executive Order 12549. You may
contact the person to which this proposal is submitted for assistance in
obtaining a copy of those regulations.

5.

The prospective lower tier participant agrees by submitting this form
that, should the proposed covered transaction be entered into, it shall
not knowingly enter into any lower tier covered transaction with a person
who is debarred, suspended, declared ineligible, or voluntarily excluded
from participation in this covered transaction, unless authorized by the
department or agency with which this transaction originated.

6.

The prospective lower tier participant further agrees by submitting this
form that it will include this clause titled "Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier
Covered Transactions," without modification, in all lower tier covered
transactions and in all solicitations for lower tier covered transactions.

7.

A participant in a covered transaction may rely upon a certification of a
prospective participant in a lower tier covered transaction that it is not
debarred, suspended, ineligible, or voluntarily excluded from the covered
transaction, unless it knows that the certification is erroneous. A
participant may decide the method and frequency by which it determines the
eligibility of its principals. Each participant may, but is not required
to, check the Nonprocurement List.

8.

Nothing contained in the foregoing shall be construed to require
establishment of a system of records in order to render in good faith the
certification required by this clause. The knowledge and information of a
participant is not required to exceed that which is normally possessed by
a prudent person in the ordinary course of business dealings.

9.

Except for transactions authorized under paragraph 5 of these
instructions, if a participant in a covered transaction knowingly enters
into a lower tier covered transaction with a person who is suspended,
debarred, ineligible, or voluntarily excluded from participation in this
transaction, in addition to other remedies available to the Federal
Government, the department or agency with which this transaction
originated may pursue available remedies, including suspension and/or
debarment.

16

(PRINT ON BORROWER’S LETTERHEAD)

LOBBYING CERTIFICATION

Certification for Contracts, Grants, Loans, and Cooperative Agreements

The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any cooperative agreement,
and the extension, continuation, renewal, amendment, or modification of any Federal contract,
grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the
undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report
Lobbying,” in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award
documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under
grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose
accordingly.
This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for
making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any
person who fails to file the required certification shall be subject to a civil penalty of not less
than $10,000 and not more than $100,000 for each such failure.

Organization Name

Name and Title of Authorized Official

Signature

Date

17

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18

INTERIM FINANCING

If this project is financed in part by the Rural Telephone Bank, an agency of the United
States of America, the references in the contract documents to "the United States of
America and the Government" shall mean the "Rural Telephone Bank", as well, and the
references to the "Administrator" shall mean the "Governor" of the Rural Telephone
Bank as well. If the project is financed wholly by the Rural Telephone Bank, the
reference to "the United States of America" and the "Government" shall mean the Rural
Telephone Bank and the references to the "Administrator" shall mean the "Governor" of
the Rural Telephone Bank. References to RUS loans or loan contracts shall include
RUS guarantees of loans by others.
The Owner, notwithstanding the references in the contract documents to the RUS or
Rural Telephone Bank financing of the work herein provided for, plans to use funds
other than RUS or Rural Telephone Bank loan funds initially and expects to be
reimbursed subsequently with RUS or Rural Telephone Bank loan funds in whole or in
part. It is understood that:
1.

An RUS, RTB, and/or FFB loan for this work ____has ____ has not (owner
to check one) been made and has not been released.

2.

Arrangements have been made for other funds so that invoices may be paid
promptly in accordance with the contract provisions.

3.

Approval of the contract by RUS or the Rural Telephone Bank shall not be
construed as a commitment to make a loan for this purpose.

_______________
Date

__________________________
Owner
By __________________________
President

_______________
Date

__________________________
Contractor
By __________________________

19

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20

SUPPLEMENT A TO CONSTRUCTION CONTRACT
RUS FORM 515
The Bidder agrees that the following provisions shall be a part of the Proposal to which
this Supplement is attached and shall supersede all provisions of the Proposal which
are inconsistent herewith:
1. The following Section 24 shall be added on Page 113:
24(a) The Bidder understands and agrees that, if this proposal is accepted, the
Owner shall furnish to the Bidder the materials set forth in the attached "List of
Owner's Materials on Hand" and the Bidder will give a receipt therefore in
writing to the Owner. The Bidder further agrees, at its expense and in on behalf
of the Owner, to promptly receive, unload, transport and handle all materials
and equipment on the "List of Materials Ordered by Owner but Not Delivered"
when delivered and shall be responsible for demurrage, if any, and will
promptly forward to the Owner the Bidder's receipt in writing for such materials.
The materials referred to above are on hand at, or will be delivered to the
locations specified in the attached Lists and the Bidder will use such materials
in constructing the Project.
(b) The Contractor's Bond shall be in a penal sum of not less than the contract
price, which is the sum of all labor and materials including owner-furnished
materials covered by this Supplement A.
(c) The references in the Construction Agreement to "materials," except in Article
IV Section 1(f), Page 124, shall be understood to mean only materials to be
furnished by the Bidder.
(d) The value of the completed Assembly Units certified to by the Bidder each
month pursuant to article III, Section 1(a) Pages 120 and 121, of the
Construction Agreement 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 95 percent of the remainder shall be paid
prior to the completion of the Project. The value of such materials for the
purpose of this Supplement shall be computed on the basis of the unit prices
stated in the attached Lists, and not on the Bidder's material unit bid prices.
Materials, if any, not required for the Project, which has been accepted by the
Bidder on behalf of the Owner, shall be returned to the Owner by the Bidder
upon completion of the construction of the Project. The value of all materials
not installed in the Project or returned to the Owner shall be deducted from the
final payment to the Bidder.

RUS Form 787

21

(e) The Owner shall furnish such materials, if any, as may be required for the
Project in excess of the quantities set forth in the attached Lists. In such event,
the value of such excess materials shall be determined on the basis of the unit
prices stated in the attached Lists and payments to the Bidder on account of
such excess materials furnished by the Owner shall be reduced in the manner
provided in paragraph (d) above.
2. Section 15, Page 110, shall be revised to read as follows:
15.

The unit prices for Assembly Units in this Contractor's Proposal include
provisions for the payment of all moneys 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 Assembly Units. The Bidder
agrees to pay all such taxes except on 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 such taxes, if applicable. The Bidder will
furnish to the appropriate taxing authorities all required information and reports
pertaining to materials used in construction of the project except as to Owner
Furnished Materials.

_____________________________
Bidder
______________________
Date

By _____________________________

_____________________________
Title

_____________________________
Owner
______________________
Date

By _____________________________

_____________________________
Title

RUS Form 787

22

CONTRACTOR'S PROPOSAL
(Proposal Shall be Submitted in Ink or Typewritten)
To: _____________________________________________________________
_________________________________________________________________
(hereinafter called the "Owner").
1(a) The undersigned (hereinafter called the "Bidder")
hereby proposes to construct the rural telecommunications project
_________________________________________________________________
in strict accordance with the Plans, Specifications, and
Construction Sheets and Special Drawings therefore, indicated
below, and by this reference made a part hereof, and to furnish
all materials, machinery, tools, equipment, labor, transportation
and other means necessary therefore, for the prices hereinafter
stated.
The Engineer will check the applicable Specification
Packet(s) which become(s) a part of the Contract by this
reference:
…

RUS Form 515a - Specifications and Drawings for Construction
of Direct Buried Plant (RUS Bulletin 1753F-150).

Dated:
…

RUS Form 515b - Specifications and Drawings for Construction
of Underground Plant (RUS Bulletin 1753F-151).

Dated:
…

__________

RUS Form 515c - Specifications and Drawings for Construction
of Aerial Plant (RUS Bulletin 1753F-152).

Dated:
…

__________

__________

RUS Form 515d - Specifications and Drawings for Service
Installations at Customer Access Locations
(RUS Bulletin 1753F-153).

Dated:

__________

The following Standards are applicable:
date)

(Engineer to insert

RUS Bulletin 1753F-401 (PC-2) Dated:
RUS Bulletin 1753F-201 (PC-4) Dated:
RUS Bulletin 1753F-801 (PC-5A)
Dated:
23

__________
__________
__________

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24

1(b) CONSTRUCTION UNITS
Section A – POLE UNITS
Poles will conform to the following:
Pole Plan:

(Engineer to fill in)

(Check one or more if acceptable)

(1) Insured warranted ___ (2) Independent inspected ___
(3) Quality Assurance Program ___
Specie of Timber: __________________________________________
Kind of Preservative: ______________________________________
Method of Treatment:

(Check one or more if acceptable)

(1) Pressure ____
(2) Thermal Process:
Note:

Unit

a. Butt ____

b. Full Length ____

If not indicated in the above spaces, the Bidder may
select the pole plan, species, kind of preservative,
and the method of treatment for supplying the poles.
Poles furnished on the Project shall all be under
the same pole plan, and of the same species, kind of
preservative, and method of treatment, and shall
meet the latest RUS specifications in effect at the
time the bid is received.

No. of
Units Labor

Unit Price
Materials Labor and Materials

Extended Price
Labor and Materials

Total, Section A ________________

25

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26

Section BA – BURIED PLANT HOUSING STUB POLE UNITS
If wood stub pole units are to be used they will conform to the
following: (Engineer will fill in)
Stub Pole Plan: (Check one or more if acceptable)
(1) Insured warranted ___ (2) Independent inspected ___
(3) Quality Assurance Program ___
Kind of Preservative: ______________________________________
Method of Treatment:
(1) Pressure ____
Note:

(Check one or more if acceptable)

(2) Thermal Process: Full Length ____

If not indicated in the above spaces, the Bidder may
select the kind of preservative, and the method of
treatment for supplying the stub pole units. Stub
pole units furnished on the Project shall all be
under the same pole plan, and of the same species,
kind of preservative, and method of treatment, and
shall meet the latest RUS specifications in effect
at the time the bid is received.

The minimum dimensions for stub poles are:
Round – Top 4-1/2 inches (in.) [11.3 centimeters (cm)],
Bottom 5 in. (12.7 cm) (Diameter)
Sawn - 4-1/2 in. (11.4 cm) x 3-1/2 in. (9.0 cm)
When Stub poles are required that exceed these minimums, indicate
the required minimum in the following spaces: Round – Bottom
diameter ___ in. (____ cm), Top diameter ____ in. (____cm),
Sawn ____ in. (____cm) x ____ in. (____ cm).
Stub Poles for mounting buried plant housings shall be set 3.0
feet (ft) [0.9 meters (m)] in either soil or solid rock. If a
greater depth in soil is necessary for wood stub pole units, it
shall be indicated in the following space: ____ ft (____ m)
(Engineer to fill in).
Unit

No. of
Units Labor

Unit Price
Materials Labor and Materials

Extended Price
Labor and Materials

Total, Section BA __________
27

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28

Section BD – BURIED PLANT HOUSING ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

______ If checked by the Engineer, sealer shall be installed in
accordance with the manufacturer's instructions.
______ If checked by the Engineer, ant repellent shall be
installed in accordance with the manufacturer's instructions.
The buried plant housings shall be green in color unless
otherwise specified below.
______________________
Total, Section BD __________
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29

30

Section BDO – BURIED PLANT FIBER OPTIC HOUSING ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

______ If checked by the Engineer, sealer shall be installed in
accordance with the manufacturer's instructions.
______ If checked by the Engineer, ant repellent shall be
installed in accordance with the manufacturer's instructions.
The buried plant housings shall be green in color unless
otherwise specified below.
______________________
Total, Section BDO __________

31

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32

Section BDS – SERVING AREA INTERFACE CABINET (SAIC)
ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

______ If checked by the Engineer, sealer shall be installed in
accordance with the manufacturer's instructions.
______ If checked by the Engineer, ant repellent shall be
installed in accordance with the manufacturer's instructions.
The SAIC shall be green in color unless otherwise specified
below.
______________________
Total, Section BDS __________

33

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34

Section BFC – BURIED FILLED COPPER CABLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

35

Labor
And Materials

Extended Price
Labor
and Materials

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36

Section BFC – BURIED FILLED COPPER CABLE ASSEMBLY UNITS
(Continued)
Unit Price
Unit

No. of
Units

Labor

Materials

37

Labor
And Materials

Extended Price
Labor
and Materials

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38

Section BFC – BURIED FILLED COPPER CABLE ASSEMBLY UNITS
(Continued)
The depth of buried cable in soil measured from the top of the
cable to the surface of the ground is 24 in. (61 cm) minimum. If
the cable is to be plowed for the entire project to a minimum
depth greater than 24 in. (61 cm), the Engineer will indicate the
required minimum depth in the following space below:
_______ in. (_____ cm).
If any section of cable is to be installed to a depth greater
than the minimum depth stated above, the applicable BFC units
will be suffixed by the letter "E" followed by the required depth
in parentheses.
The cable to be used with the above buried filled cable units
shall have a shield as indicated below:
______ Standard, Coated Aluminum
______ Standard, Copper
______ Gopher Resistant, Containing Copper
______ Gopher Resistant, Coated Aluminum/Coated Steel
The following type(s) of conductor insulation shall be used:
______ Solid
______ Expanded
______ If checked by the Engineer, preconnectorized cable may be
used at the option of the contractor for reel end splices.
______ If checked by the Engineer, warning tape shall be used.

Total, Section BFC __________

39

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40

Section BFO – BURIED FILLED FIBER OPTIC CABLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

41

Labor
and Materials

Extended Price
Labor
and Materials

This page intentionally left blank.

42

Section BFO – BURIED FILLED FIBER OPTIC CABLE ASSEMBLY UNITS
(continued)
The depth of buried cable in soil measured from the top of the
cable to the surface of the ground is 24 in. (61 cm) minimum. If
the cable is to be plowed for the entire project to a minimum
depth greater than 24in. (61 cm), the Engineer will indicate the
required minimum depth in the following space below:
_______ in. (_____ cm).
If any section of cable is to be installed to a depth greater
than the minimum depth stated above, the applicable BFO units
will be suffixed by the letter "E" followed by the required depth
in parentheses.
The cable to be used with the above fiber optic cable units shall
be as specified below:
______ Attenuation (if other than normal specification value)
______ Bandwidth requirement for multimode fibers
______ Multiple loose tube core construction
____ If checked, dry filled core
____ If checked, gel filled core
______ Unit or central core tube construction
______ Metallic strength members
______ Non-metallic strength members
Other characteristics as required:

(Define)

1.
2.
3.
4.
______ If checked by the Engineer, preconnectorized cable may be
used at the option of the contractor for reel end splices.
______ If checked by the Engineer, warning tape shall be used.

Total, Section BFO __________

43

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44

Section BH – BURIED HANDHOLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
And Materials

Total, Section BH __________

45

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46

Section BM – MISCELLANEOUS ASSEMBLY UNITS BURIED PLANT AND SERVICE ENTRANCE INSTALLATIONS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
And Materials

Total, Section BM __________

47

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48

Section CFO – SELF SUPPORTING FILLED FIBER OPTIC CABLE
ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
And Materials

The cable to be used with the above fiber optic cable units shall
be as specified below:
______
______
______
______
______

Attenuation (if other than normal specification value)
Bandwidth requirement for multimode fibers
Armored
Unarmored
Multiple loose tube core construction
____ If checked, dry filled core
____ If checked, gel filled core
______ Unit or central core tube construction
Other characteristics as required:
1.
2.
3.
4.

(Define)

______ If checked by the Engineer, the cable shall be spiraled
around the suspension strand at all locations shown on the
Construction Sheets. Spiraling of cable shall be in accordance
with the Construction Guide Drawing 250-1.
______ If checked by the Engineer, preconnectorized cable may be
used at the option of the contractor for reel end splices.

Total, Section CFO __________

49

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50

Section CO – AERIAL FILLED FIBER OPTIC CABLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
And Materials

The cable to be used with the above fiber optic cable units shall
be as specified below:
______ Attenuation (if other than normal specification value)
______ Bandwidth requirement for multimode fibers
______ Armored
______ Unarmored
______ Multiple loose tube core construction
____ If checked, dry filled core
____ If checked, gel filled core
______ Unit or central core tube construction
______ Metallic strength members
______ Non-metallic strength members
Other characteristics as required:
1.
2.
3.
4.

(Define)

______ If checked by the Engineer, the cable shall be spiraled
around the suspension strand at all locations shown on the
Construction Sheets. Spiraling of cable shall be in accordance
with the Construction Guide Drawing 250.

51

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52

Section CO – AERIAL FILLED FIBER OPTIC CABLE ASSEMBLY UNITS
(continued)
______ If checked by the Engineer, the existing lashing wire
shall be removed and the new and existing cables shall be double
lashed to the existing suspension strand at all locations shown
on the Construction Sheets.
The lashing wire to be used with the above aerial cable shall be
the size and materials indicated by the Engineer: ______ (______)
stainless steel, ______ (______) aluminum.
______ If checked by the Engineer, preconnectorized cable may be
used at the option of the contractor for reel end splices.
______ If checked by the Engineer, Extra High Strength (EHS)
galvanized steel strand shall be used.

Total, Section CO __________

53

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54

Section CW – AERIAL FILLED COPPER CABLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

55

Labor
and Materials

Extended Price
Labor
and Materials

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56

Section CW – AERIAL FILLED COPPER CABLE ASSEMBLY UNITS
(Continued)
The cable to be used with the above aerial cable units shall have
a shield as indicated below:
______ Coated Aluminum
______ Copper
The following type(s) of conductor insulation shall be used:
______ Solid
______ Expanded
______ If checked by the Engineer, the cable shall be spiraled
around the suspension strand at all locations shown on the
Construction Sheets. Spiraling of cable shall be in accordance
with the Construction Guide Drawing 250.
______ If checked by the Engineer, the existing lashing wire
shall be removed and the new and existing cables shall be double
lashed to the existing suspension strand at all locations shown
on the Construction Sheets.
The lashing wire to be used with the above aerial cable shall be
the size and materials indicated by the Engineer: ______ (______)
stainless steel, ______ (______) aluminum.
______ If checked by the Engineer, preconnectorized cable may be
used at the option of the contractor for reel end splices.
______ If checked by the Engineer, Extra High Strength (EHS)
galvanized steel strand shall be used.

Total, Section CW _________

57

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58

Section HA – AERIAL SPLICE CLOSURE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section HA __________
Section HBF – BURIED FILLED SPLICE CLOSURE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section HBF __________

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Section HC – COPPER SPLICING ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section HC __________
Section HO – FIBER OPTIC SPLICING ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section HO __________

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Section HR – READY ACCESS CLOSURE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section HR __________
Section HU – UNDERGROUND SPLICE CLOSURE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section HU __________

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Section NID – NETWORK INTERFACE DEVICE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section NID __________

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Section PE – GUY ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

______ If checked by the Engineer, Extra High Strength (EHS)
galvanized steel strand shall be used.
Total, Section PE __________
Section PF – ANCHOR ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section PF __________

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Section PM – MISCELLANEOUS ASSEMBLY UNITS UNDERGROUND AND AERIAL PLANT
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section PM __________

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Section R – RIGHT-OF-WAY CLEARING AND TRIMMING UNITS –
AERIAL PLANT
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Note 1:

Trees that are felled shall be cut to commercial wood
length and left on the side of the right-of-way for the
landowner. Commercial wood length means the length
designated by the Engineer, but in no case shall be
required to be less than _______ feet (______ meters).

Note 2:

Brush, branches, and refuse from the clearing
operations shall, without delay, be disposed of by one
of the following methods as directed by the Engineer:
(Engineer to strike out methods not to be used.)
a.
b.
c.
d.

Chipped and Blown
Removed from the vicinity of the right-of-way
Piled on one side of the right-of-way in such
manner as to not obstruct roads, ditches, etc.
Other (Describe):
_______________________________________________
_______________________________________________
Total, Section R __________

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72

Section SE – SERVICE ENTRANCE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

The depth of buried service wire in soil measured from the top of
the service wire to the surface of the ground is 12 in. (30.5 cm)
minimum. If the service wire is to be placed for the entire
project to a minimum depth greater than 12 in. (30.5 cm), the
Engineer will indicate the required minimum depth in the
following space below:
_______ in. (_____ cm).
If any section of service wire is to be installed to a depth
greater than the minimum depth stated above, the unit will be
suffixed by the letter "E" followed by the required depth in
parentheses.
Total, Section SE __________

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Section UD – UNDERGROUND CONDUIT ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section UD __________

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Section UF – UNDERGROUND FILLED COPPER CABLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

The cable to be used with the above underground cable units shall
have a shield as indicated below:
______ Coated Aluminum
______ Copper
The following type(s) of conductor insulation shall be used:
______ Solid
______ Expanded
______ If checked by the Engineer, preconnectorized cable may be
used at the option of the contractor.

Total, Section UF __________

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Section UH – UNDERGROUND HANDHOLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
And Materials

Total, Section UH __________

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80

Section UM – PRECAST MANHOLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

______ If checked by the Engineer, poured-in-place manholes may
be used.
Total, Section UM __________

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82

Section UO – UNDERGROUND FILLED FIBER OPTIC CABLE ASSEMBLY UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

The cable to be used with the above fiber optic cable units shall
be as specified below:
______ Attenuation (if other than normal specification value)
______ Bandwidth requirement for multimode fibers
______ Multiple loose tube core construction
____ If checked, dry filled core
____ If checked, gel filled core
______ Unit or central core tube construction
______ Metallic strength members
______ Non-metallic strength members
Other characteristics as required:

(Define)

1.
2.
3.
4.
______ If checked by the Engineer, preconnectorized cable may be
used at the option of the contractor for reel end splices.

Total, Section UO __________

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84

Section W – REARRANGEMENT UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section W __________

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86

Section XX – NONREUSABLE MATERIALS REMOVAL UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section XX __________

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88

Section XZ – REUSABLE MATERIALS REMOVAL UNITS
Unit Price
Unit

No. of
Units

Labor

Materials

Labor
and Materials

Extended Price
Labor
and Materials

Total, Section XZ __________

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90

Section XZ – REUSABLE MATERIALS REMOVAL UNITS (continued)
VALUE AND DISPOSITION OF UNITS TO BE REMOVED

Assembly
Unit
Designation

1

Assembly
Unit
Material
Value
2

Charges to Contractor
No. of
Extended
Assembly
Value
Units
3

4

No. of
Assembly
Units to
Be Reused
5

91

Note:

Columns 1 through 7 should be filled in by Engineer.

Credit To Contractor
For Material Turned In
No. of
Extended
Assembly
Value
Units
6
7

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LIST OF SPECIAL ASSEMBLY UNIT DRAWINGS AND SPECIAL GUIDE DRAWINGS

(NOTE: Engineer will indicate by listing below the special
assembly unit drawings and special guide drawings which
have been prepared. These drawings are considered to be a
part of this Contract.)

LIST OF CHANGES, ADDITIONS, AND DELETIONS
The Bidder understands that the following changes, additions,
or deletions have been made in the Contractor's Proposal,
Description of Assembly Units, Engineering Details, Material
and Installation Specifications, List of Construction Sheets,
Assembly Unit Drawings and Guide Drawings, of the standard RUS
Form 515 and the applicable Specification Packet(s) are
considered to be part of this contract referred to hereof:

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94

LIST OF KEY AND DETAIL MAPS

Map Number

Description

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96

LIST OF CABLE PLANT LAYOUT MAPS
Map Number

Description

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98

LIST OF CONSTRUCTION SHEETS

Map Number

Description

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100

LIST OF SPECIAL ARRANGEMENT UNITS
Map Number

Description

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102

PROPOSAL SUMMARY
____________________________________________________________
Section A

. . . . . . . . . . . . . . . . . . .

__________

Section BA . . . . . . . . . . . . . . . . . . .

__________

Section BD . . . . . . . . . . . . . . . . . . .

__________

Section BDO

. . . . . . . . . . . . . . . . . .

__________

Section BDS

. . . . . . . . . . . . . . . . . .

__________

Section BFC

. . . . . . . . . . . . . . . . . .

__________

Section BFO

. . . . . . . . . . . . . . . . . .

__________

Section BH . . . . . . . . . . . . . . . . . . .

__________

Section BM . . . . . . . . . . . . . . . . . . .

__________

Section CFO

. . . . . . . . . . . . . . . . . .

__________

Section CO . . . . . . . . . . . . . . . . . . .

__________

Section CW . . . . . . . . . . . . . . . . . . .

__________

Section HA . . . . . . . . . . . . . . . . . . .

__________

Section HBF

. . . . . . . . . . . . . . . . . .

__________

Section HC . . . . . . . . . . . . . . . . . . .

__________

Section HO . . . . . . . . . . . . . . . . . . .

__________

Section HR . . . . . . . . . . . . . . . . . . .

__________

Section HU . . . . . . . . . . . . . . . . . . .

__________

Section NID

. . . . . . . . . . . . . . . . . .

__________

Section PE . . . . . . . . . . . . . . . . . . .

__________

Section PF . . . . . . . . . . . . . . . . . . .

__________

Section PM . . . . . . . . . . . . . . . . . . .

__________

Section R

__________

. . . . . . . . . . . . . . . . . . .

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104

PROPOSAL SUMMARY
(continued)
Section SE . . . . . . . . . . . . . . . . . . .

__________

Section UD . . . . . . . . . . . . . . . . . . .

__________

Section UF . . . . . . . . . . . . . . . . . . .

__________

Section UH . . . . . . . . . . . . . . . . . . .

__________

Section UM . . . . . . . . . . . . . . . . . . .

__________

Section UO . . . . . . . . . . . . . . . . . . .

__________

Section W

. . . . . . . . . . . . . . . . . . .

__________

Section XX . . . . . . . . . . . . . . . . . . .

__________

Section XZ . . . . . . . . . . . . . . . . . . .

__________

Total

105

$ ______________

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106

2.
The Bidder agrees to furnish and use in the
construction of the Project under this Proposal, in the event
the Contract is awarded to the Bidder, only such materials and
equipment as are included in RUS Informational Publication
(IP) 344-2, "List of Materials Acceptable for Use on
Telecommunications Systems of RUS Borrowers," including
revisions adopted prior to the Bid Opening, unless specific
written approval has been granted by the Administrator of the
Rural Utilities Service (hereinafter called the
"Administrator").
3.
The Bidder understands and agrees that the various
Assembly Units on which bids are made in this Proposal are as
set out in the "Description of Assembly Units" of the
Specifications, that all said bids are on a unit basis, and
that the Owner may specify any number or combination of
Assembly Units that the Owner, with the approval of the
Administrator, may deem necessary for the construction of the
Project.
4.
The Bidder has made a careful examination of the
site of the Project to be constructed and of the Plans,
Specifications, Descriptions of Assembly Units, Construction
Sheets, and forms of Construction Agreement and 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 which would affect
work on the proposed construction.
5.
The Bidder understands that the location shown on
Construction Sheets for existing telecommunications plant and
other utilities is approximate, and that the restrictions on
cable placement shown on the Construction Sheets may be
altered in accordance with Article V, Section A.1.3, as
existing underground facilities are located by the Bidder
during construction.
6.
The Bidder agrees, in connection with pole and stub
pole units, as follows:
(a) To furnish poles and stub pole units, in accordance
with specifications, standards and requirements of
the Administrator.
(b) That the prices for poles set forth herein include
the cost of preservative treatment and inspection or
insured warranty.
107

(c) To obtain from the Supplier copies of the inspection
and treatment reports or insured warranties and to
submit such reports or warranties to the Owner as one
of
the
prerequisites
to
monthly
and/or
final
payments.
7.
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 manhole units, or underground conduit units, the
compensation for such change shall be as agreed
upon, in writing, by the Bidder and the Owner and
approved by the Administrator 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, 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.)
Where changes involve plant that is abandoned in place and is
not inventoried, or where additional compensation is due as
per the above, a Construction Change Order (RUS Form 216)
shall be prepared and included with the Closeout Documents.
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.
8. 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:
The cost of materials shall be determined by the invoices.
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 section BM, the ratio shall be calculated
108

for only those units of the section which are similar to
the new unit for which a price is to be determined.
9. This Proposal is made pursuant to the provisions of
the Instructions to Bidders attached hereto and the Bidder
agrees to the terms and conditions thereof.
10. The Bidder shall comply with all applicable
construction codes.
(a)

The Bidder warrants that it possesses

Contractor's License No.

____ issued to it by

the State of
_______ in which the
Project(s) is located and said license expires on
___________, 20___.
(b) The Bidder warrants that no license is required
in the state in which the Project(s) is located.
(Bidder shall cross out that subsection that does not
apply)
11. 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.
12. The Bidder agrees that in the event this Proposal is
accepted it will execute a Contract in the form on file with
the Owner and that if awarded the Contract, it will make
available for use in connection with the proposed construction:
a.

All necessary tools and equipment.

b.

Qualified superintendent and foreman.

13. The Bidder warrants that it possesses adequate
financial resources and agrees that in the event this proposal
is accepted it will furnish a Contractor's Bond in one of the
forms (RUS Form 168b or 168c) attached hereto and in a penal
sum not less than the Contract price, which is the sum of all
labor and materials including owner-furnished materials
installed in the Project, 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
Contractor's Bond delivered to the Owner contemporaneously
with the execution of the Contract or any bond or bonds
delivered in substitution therefore, or in addition thereto,
shall, at any time, become unsatisfactory to the Owner or the

109

Administrator, the Bidder agrees to deliver to the Owner
another or an additional bond.
14. The Bidder agrees to commence the 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 Construction Contract by the
Administrator and notice in writing from the Bidder that the
Bidder has available sufficient materials to warrant
commencement and continuation of construction, but in no event
will the Commencement Date be later than _______ calendar days
after the date of approval of the Construction Contract by the
Administrator.
The Bidder agrees to strive diligently to obtain materials
to commence and maintain construction of the Project and agrees
to prosecute diligently and to complete construction of
the Project in strict accordance with the Plans,
Specifications, Construction Sheets and Special Drawings
within ____________ (________) calendar days (excluding
Saturdays, Sundays, and legal holidays) after the Commencement
Date. Provided, however, that the Bidder will not be required
to dig holes, set poles, install anchors or install
underground conduit if there are more than 6 in. (15.2 cm) 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; provided further
that the Bidder will not perform any plowing for the
installation of buried cable on public roads or highways if
there are more than 2 in. (5.08 cm) of frost in the ground.
To the extent of any 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 Article II, Section 1(a) of the Construction
Agreement.
15. The unit prices for Assembly Units in this
Contractor's Proposal include provisions for the payment of all
moneys which will be payable by the Bidder or the Owner in
connection with the construction of the Project on account of
taxes imposed by a 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 Assembly Units. The Bidder agrees to pay all
such taxes and to furnish to the appropriate taxing

110

authorities all required information and reports pertaining
thereto.
16. 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 based on the Construction
Sheets, both of which shall be subject to approval by the
Administrator.
If the Owner changes the quantity of any Assembly Unit or
Assembly Units specified in this Proposal by more than five
(5) percent, 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 five
(5) percent, shall be regarded as a change in the construction
within the meaning of Article II, Section 1(d) of the
Construction Contract.
17.

The Bidder understands and agrees that approximately

_______ miles(_______ km) of proposed pole lines in the
Project will be constructed along the same right-of-way as
that occupied by existing telecommunications lines of the
Owner. The Bidder will perform the work in such manner as not to
cause interruption of service on such existing lines during
the construction of the proposed lines of the Project
occupying the same right-of-way. To accomplish this, the
Bidder may "lean" or alter the position of the existing poles
and make other temporary adjustment to line or service wires
required so as to permit construction of the Project to
proceed without interrupting service on the existing lines.
The Bidder understands and agrees that the compensation for
such temporary work is included in the unit price for Assembly
Units in this Contractor’s Proposal required for the
construction of Project lines occupying the same right-of-way
as existing telecommunications lines of the Owner and that
Rearrangement (W) Units will not be applicable to such temporary
work.
18.

The Bidder understands and agrees that approximately

_______ miles (_______ km) of proposed buried cable will be
constructed along the same right-of-way and adjacent to
existing buried telecommunications facilities of the Owner.
The sizes and general locations of existing buried
telecommunications facilities are shown on the Construction
Sheets. It will be the Bidder's responsibility to perform the
work in such a manner as not to cause interruption of service

111

on existing buried facilities during the construction of the
proposed buried cable. To accomplish this, the Bidder will
furnish and operate any cable locating equipment necessary to
establish the actual location of existing buried facilities.
The bidder will be responsible for maintaining shield
continuity and proper grounding of existing cables in the time
frame between housing installation and splicing operations.
19. The Bidder will furnish, prior to the commencement of
buried plant 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.
20. The Bidder will not perform any work hereunder on
Saturdays, Sundays, and legal holidays unless there is urgent
need for such work and the Owner consents thereto in writing.
The time for completion specified in Paragraph 14 hereof shall
not be affected in any way by inclusion of consent to work on
the days specified above.
21.

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 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.
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.
22. 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

112

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, rest rooms 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.
23.
The Bidder represents that to the extent required by
Executive Order 12549, Debarment and Suspension, and 7 CFR
Part 3017, it has submitted to the Owner a duly executed
Certification in the form prescribed in 7 CFR Part 3017. The
Bidder shall not enter into any subcontract with any person or
firm debarred from Government Contracts pursuant to Executive
Order 11246.
Note:

The penalty for making false statements in offers is
prescribed in 18 U.S.C. 1001.
By ____________________

Attest:

(Signature)

____________________

____________________

(Secretary)

(Name - Type or Print)

____________________

____________________

(Date)

(Title)

___________________
(Name and Address of Bidder)

(The Proposal must be signed with the full name of the Bidder.
In the case of a partnership, the Proposal must be signed in
the firm name by each partner. In the case of 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.)

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114

CONSTRUCTION AGREEMENT
Agreement made __________________, 20___, by and between
____________________________________ (hereinafter called the
"Owner"), a corporation organized and existing under the
laws of the State of _______________________________________
and ________________________________________________________
*Individual
*Corporation
*Partnership
*Identify applicable organization type.
(hereinafter called the "Contractor"), organized and existing
under the laws of the State of ___________________.
WHEREAS, the United States of America (hereinafter called
the "Government") by the Administrator of the Rural Utilities
Service has entered into a loan contract (hereinafter called
the "Loan Contract") with the Owner providing for a loan to
the Owner for the construction of a rural telecommunications
project designated by the Rural Utilities Service as
_______________________________.
NOW, THEREFORE, in consideration of the mutual
undertakings herein contained, the parties hereto agree as
follows:
Article I - ACCEPTANCE OF PROPOSAL
Section 1.

Acceptance.

The Owner accepts the Contractor's Proposal and the
parties hereto agree that the Assembly Units which shall be
used in the construction of the Project, and to which the Unit
Prices as set forth in said Proposal shall apply, are as
follows, and that the materials which shall be used in the
construction of the Project shall be as set forth in said
Proposal.
Assembly Units:
Sections,

115

For a more detailed description of said Assembly Units and
materials reference shall be made to the Material and
Construction Specifications, Construction Sheets and Plans,
Special Drawings, and Description of Assembly Units. The
Contractor shall report any error or ambiguity discovered in
the Plans and Specifications to the Engineer before starting
work.
Section 2.

Description of Contract.

The Instructions to Bidders, the Proposal, Description of
Assembly Units, Material and Construction Specifications,
Construction Sheets and Plans, and Special Drawings are hereby
by reference incorporated herein and together with the
Construction Agreement constitute the Contract.
Article II - CONSTRUCTION
Section 1.

Time and Manner of Construction.

(a) The time for Completion of Construction set forth in
the Contractor's Proposal 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
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.
(b) The sequence of construction shall be as set forth
below, the names being the designations of central office
areas corresponding to the names shown on the maps attached
hereto. For each central office area, the sequence of
construction shall be designated by remote serving areas or
Work Sectors shown on maps of the central office areas. If no
sequence of construction is set forth below, the sequence
shall be as determined by the Contractor, subject to the
approval of the Engineer.
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
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___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
(c) The Contractor shall perform work in such a manner as
to maximize preservation of beauty and 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 Owner or Engineer shall
also make available such other environmental information
pursuant to the project as in the Environmental Report (ER)
covering the project.
(d) The Owner, acting through the Engineer, and with the
approval of the Administrator, 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, Construction Sheets, Special Drawings and
cable placement locations which are part of the Contractor's
Proposal and in the sequence of construction provided for in
the preceding section 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 Contractor 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 of
materials to the Contractor is increased by such change or
addition, the Owner shall pay the Contractor for the
reasonable cost thereof, included, if necessary, in a
construction contract amendment (RUS Form 526) signed by the
Owner and the Contractor, and approved by the Administrator
(see 7 CFR part 1753.11). Any claim for additional
compensation for a change or addition will not be considered
unless the Contractor shall have made a written request
therefore and approved by the Owner prior to the commencement
of work in connection with such change or addition (refer to
Contractor's Proposal, Paragraph 16).
(e) Except as otherwise agreed to by the Owner, all work
shall be performed without interruption to or interference
with existing telecommunications service, if any.

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Section 2.

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 the Project during working hours when
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 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 such directions shall not relieve the Contractor
of its obligations to complete the work within the time and in
the manner specified in this Contract.
(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 Engineer and the
Administrator, and the Contractor shall furnish all
information required by the Engineer 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
Contractor and of any subcontractor, relevant to the
construction of the Project. The Contractor shall provide all
reasonable facilities necessary for such inspection and tests
and shall maintain an office at the site of Project, with
telecommunications service where obtainable, and at least one
office employee to whom directions and instructions may be
delivered. Delivery of such directions or instructions in
writing to the employee of the Contractor at such office shall
constitute delivery to the Contractor. The Contractor 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 shall determine that the
construction contains or may contain numerous defects, it
shall be the duty of the Contractor and the Contractor's
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surety or sureties 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
Contractor suspend the work wholly or in part for such period
or periods as may be deemed 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 3.

Defective Workmanship and Materials.

(a) The acceptance of any workmanship, materials, or
equipment by the Owner or Engineer shall not preclude the
subsequent rejection thereof if such workmanship, materials or
equipment shall be found to be defective after delivery or
installation, and any such workmanship, materials or equipment
found defective before final acceptance of the construction
shall be remedied or replaced, as the case may be, by and at
the expense of the Contractor. Any 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 workmanship, materials or equipment in
respect to the Project, of which the Contractor shall have had
notice, shall not have been remedied or replaced, as the case
may be.
(b) Notwithstanding any certificate which may have been
given by the Owner or Engineer, if any workmanship, material,
or equipment which does not comply with the requirements of
this Contract shall be discovered within one (1) year after
completion of construction of the Project or Section, the
Contractor shall remedy any such defective workmanship or
replace such defective materials or equipment within thirty
(30) days after notice in writing of the existence thereof
shall have been given by the Owner. In the event of failure
by the Contractor to do so, the Owner may remedy such
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defective workmanship or replace such defective materials or
equipment, as the case may be, and in such event the
Contractor shall pay to the Owner the cost and expense
thereof. Except as otherwise agreed to by the Owner all such
corrective work shall be performed by the Contractor without
interruption to or interference with existing
telecommunications service, if any.
Article III - PAYMENTS AND RELEASE OF LIENS
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 which includes cleanup during
the preceding calendar month on the basis of completed
Assembly Units invoiced by and certified to by the Contractor,
recommended by the Engineer and approved by the Owner solely
for purposes of payment. Provided, however, that such
approval shall not be deemed approval of the workmanship or
materials. Only ninety-five percent (95%) of each such
invoice approved during the construction of the project shall
be paid by the Owner to the Contractor prior to completion of
the Contract. Upon completion by the Contractor of the
construction of the Project, the Engineer will prepare a Final
Inventory of the project showing the total number of and
character of Assembly Units and, after checking such Inventory
with the Contractor, 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 Contractor of all amounts to which the Contractor 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 Contractor. For
purposes of payment pursuant to this Article III, Section
1(a), "Construction Accomplished" shall not include the
delivery to the Project Site of cable, wire, and conduit
materials for appropriate Assembly Units.
Provided,
however, that payments to the Contractor for such cable,
wire, and conduit materials delivered to the Project Site
shall be made to the extent that the aggregate amount of all
such payments shall not exceed eighty percent (80%) of the
material costs, as set forth in the assembly unit prices, up
to a maximum $1,000,000. The payments shall be considered due
and payable when placement of cable, wire, and conduit
materials begin. When the amount of cable, wire, and conduit
materials delivered to the Project Site exceed the $1,000,000
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initial payment or additional cable, wire, and conduit
materials are delivered to the Project Site subsequent to the
initial payment, additional payments will be made up to eighty
percent (80%) of the material unit prices, only after $100,000
or more of the cable, wire, and conduit materials have been
incorporated into the Project. Payments made on account of
such material shall be subtracted from the monthly estimates
of completed Assembly Units.
(b) The Contractor shall be paid on the basis of the
number of Assembly Units actually installed at the direction
of the Owner, as shown by the inventory based on the
Construction Sheets and applicable construction change orders
(RUS Form 216 attached hereto): Provided, however, that the
total cost shall not exceed the maximum Contract price for the
construction of the Project as computed from the Proposal,
unless such excess shall have been approved in writing
by the Administrator. It is understood and agreed that this
Contract price is
_____________________________________________________
___________________dollars ($_____________________________).
(c) Notwithstanding the provisions of Section 1(a) above,
the Contractor may, by giving written notice thereof to the
Owner, elect to receive payment in full for any Section of the
Project upon:
(i)

completion of construction of such Section as
certified by the Engineer and approved by the
Owner and the Administrator;

(ii)

submission to the Owner and the Administrator of
the releases of lien and the certificate referred
to in Section 2 hereof;

(iii)

approval by the Owner and the Administrator of the
Final Inventory in respect to such Section; and

(iv)

submission to the Owner and the Administrator of
the consent in writing by the surety or sureties
on the Contractor's Bond to payment in full for
such Section prior to Completion of the Project.

(d) Interest at the rate of one and one-half percent
(1-1/2%) per annum higher than the "Prime Rate" published in
the Wall Street Journal in its first issue of the month, but
in no event greater than that allowed by any Federal or State
laws shall be paid by the Owner to the Contractor on all
unpaid balances due on monthly estimates, commencing fifteen
121

(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. Said interest rate shall be
determined as of the first date interest becomes due. The due
date for purpose of such monthly payments shall be fifteen
(15) days after submittal by the Contractor to the Owner of
its certification of Assembly Units completed and approval by
the Owner within fifteen (15) days of the Contractor's
submittal. If, for reasons not due to the Contractor's fault,
such approval shall have been given within fifteen (15) days
of submittal, the due date for purposes of this subsection (d)
shall be fifteen (15) days after submittal notwithstanding the
absence of the approval of the certification.
(e) Interest at the rate of one and one-half percent
(1-1/2%) per annum higher than the "Prime Rate" published in
the Wall Street Journal in its first issue of the month, but
in no event greater than that allowed by any Federal or State
laws 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. Said
interest rate shall be determined as of the first date
interest becomes due. 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 the completion of construction of the
Project, as specified in the Certificate of Completion, unless
withheld because of the fault of the Contractor, whichever
date is earlier.
(f) No payment shall be due while the Contractor is in
default in respect of any 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. Release of Liens and Certificate of Contractor.
(See Form 224, Waiver and Release of Lien, and Form 231,
Certificate of Contractor, attached hereto)
Upon the completion by the Contractor of the construction
of the Project (or any Section thereof if the Contractor shall
elect to receive payment in full for any Section when
completed as provided above) but prior to payment to the
Contractor of any amount in excess of ninety-five percent
(95%) of the total cost of all Assembly Units comprising the
completed Project or such Section, the Contractor shall
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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.
Section 3.

Payments to Materialmen and Subcontractors.

The Contractor 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
Contractor for and on account of materials furnished or
construction performed by each materialman or 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, environmental
regulations, and building and construction codes.
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 poles carrying energized electric
power lines, except on telecommunications system units having
clearances from the electric power system equal to or greater
than required by applicable provisions of Federal, State or
Municipal laws or regulations and the National Electrical
Safety Code (NESC).
(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.

123

(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, other
utilities 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, other
utilities 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 construction corridor of the Project
traverses cultivated land, the Contractor 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. Except as otherwise provided in respect of buried
plant in the description of Assembly Units, the Contractor
shall not be responsible for loss of or damage to crops,
orchards or property (other than livestock) on the
construction corridor 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 construction
corridor 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 of construction, 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. The Contractor shall hold the Owner harmless from
any and all claims for injuries to persons or for damage to
property happening by reason of any negligence on the part of
the Contractor or any of the Contractor's agents or employees
during the control by the Contractor of the Project or any
part thereof.

124

(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 or relocated (distributed) to the
satisfaction of the Owner as rapidly as practicable as the
work progresses.
(h) Upon violation by the Contractor of any of the
provisions of this Section, after written notice of such
violation given to the Contractor by the Engineer or 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.
Provided, however, that the Owner may, if it deems it
necessary or advisable, correct such violation at the
Contractor's expense without such prior notice to the
Contractor.
(i) The Contractor shall immediately notify the Owner of
any 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 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.

Delivery of Possession and Control to 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-five percent (95%) 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 Contractor 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 Contractor of any liability with respect to
defective workmanship or materials as contained in Article II,
Section 3, hereof.
(b) Where the construction of a Section as defined in
Article VII, Section 1(f) shall have been completed and tested
by the Contractor, the Owner agrees, after receipt of a
125

written request from the Contractor, 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. For the
purpose of the foregoing provision only, a Section may be
considered completed even if telecommunications set assembly
units have not been installed because the Owner's central
office (CO) equipment has not been installed at the time the
Section was constructed by the Contractor. 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(f) 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 defective
workmanship or materials as contained in Article II, Section
3, hereof.
Section 3.

Pre-cutover Testing of the Project.

(a) Prior to the Completion of Construction of the
Project, the Owner, acting in accordance with plans of the
Engineer, upon written notice to the Contractor, may perform
operational tests of any portion or portions thereof. During
the period of such tests, the portion or portions of the
Project being so tested shall be considered as within the
possession and control of the Owner and governed by the
Provisions of Section 2 of this Article. Upon written notice
to the Contractor by the Owner of the completion of such tests
said portion or portions of the Project shall be considered as
returned to the possession and control of the Contractor
unless the Owner shall elect to continue possession and
control in the manner provided in Section 2 of this Article.
(b) The Owner shall have the right to permanently place
in service any portion or portions of the Project delivered to
its possession and control pursuant to the provisions of
Section 2 of this Article.
Section 4.

Insurance.

During the Contractor's performance hereunder, the
Contractor shall take out and maintain fully paid insurance
providing not less than the minimum coverage required by 7 CFR
part 1788, Subpart C.

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[

] When checked by the Owner, with respect to the insurance
required by 7 CFR part 1788, Subpart C, the Contractor
shall include as co-insured the Owner, and their
personnel, and the Engineer and their personnel. The
added costs shall be included in the bid price.

The Owner shall have the right to require public liability
insurance and property damage liability insurance in an amount
greater than those required in 7 CFR Part 1788, Subpart C.
The added costs shall be included in the bid price.
Upon request by the Administrator, the Contractor shall
furnish to the Administrator a certificate in such form as the
Administrator may prescribe, evidencing compliance with the
foregoing requirements. (See 7 CFR part 1788.55)
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 upon acceptance.
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 upon completion of construction and at such time as
the Contractor receives final payment.
Section 7.

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 8.

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 9.

Compliance with Statutes and Regulations.

The Contractor shall comply with all applicable statutes,
ordinances, rules, and regulations pertaining to the
construction of the Project.
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Article V - ENGINEERING, CONSTRUCTION, AND INSPECTION DETAILS
A.

Engineering and Construction.

Section 1.

Staking of the Project.

1.1 The Engineer shall determine the locations and types
of all unit assemblies to be installed. As a part of the
release for construction, the Contractor shall receive from
the Engineer five (5) complete sets of Construction Sheets
including reference sketches showing the location of all
assembly units.
1.2 The Construction Sheets showing the proposed plant
shall be jointly reviewed in the field by the Contractor and
the Engineer prior to construction. The Contractor shall at
that time propose any changes or clarifications he feels
desirable. These changes, if approved by the Engineer, will
be made at that time and so recorded on the Construction
Sheets and initialed by the Engineer and Contractor.
1.3 No changes in the construction proposed as set forth
on the Construction Sheets shall be made by the Contractor
without the prior approval of the Engineer. A representative
of the Engineer will remain in the immediate vicinity of the
construction activities at all times and will be available to
consider and approve any changes proposed by the Contractor,
if acceptable. The representative of the Engineer will also
be available to inspect any damage to cable or wire and to
approve the methods of repair or correction of such damage in
accordance with the provisions of these Specifications.
1.4 Due to the necessity of making on-the-spot
corrections and changes on Construction Sheets, it will not be
possible for the Engineer to issue revised Construction Sheets
to the Contractor in all cases. When changes are made, dated,
and initialed by the Engineer on any set of the Contractor's
Construction Sheets, it shall be the Contractor's
responsibility to transfer these changes to all other sets of
Construction Sheets being used by the Contractor for
construction purposes.
Section 2.

Construction Sheets and Maps.

The maps showing the location of the central offices and
the general routes and locations of all lines in the Project
are listed separately hereinafter and are part of the Plans
and Specifications. No deviations from these maps, except for
minor rerouting and minor changes dictated by field conditions
and authorized by the Engineer, shall be made. The
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Construction Sheets showing types and details of construction
to be used for various conditions along the lines are also
listed separately hereinafter and are a part of these
specifications.
Section 3.

Cable Schematics and Assignment Information.

3.1
The Engineer will provide the Contractor with five
(5) copies of cable schematics for each central office area at
the time the Contractor is furnished Construction Sheets for
the area. The cable schematics will show the following:
(a) Cable and wire sizes, gauges, and pair counts of
copper cables.
(b) Number of optical fibers.
(c) Route designations.
(d) Housing or splice closure numbers.
(e) Pair counts to be terminated, spliced, or crossconnected at each housing or splice closure.
(f) Number of optical fibers to be spliced.
(g) Location of repeater points and electronic terminal
equipment.
3.2
At a time agreed to by the Engineer and Contractor
to coordinate with the Contractor's construction schedule, the
Engineer shall provide the Contractor with five (5) sets of
telephone numbers and cable pair assignment data.
Section 4.

Outside Plant Inventory.

The Contractor shall provide a competent representative to
work with the Engineer on the ongoing and final inventory and
inspection of outside plant units. The wire and cable shall
be inventoried immediately after the placement operation.
Section 5.

Pre-installation Inspection of Cable.

5.1 The Contractor and Engineer shall jointly inspect a
representative sample of cable and wire on reels prior to
installation. Based on the inspection, the Engineer shall
make a determination if the cable and wire are suitable for
construction. Unsuitable reels of cable and wire shall be
replaced by the Contractor. In the case of nonconformance of
a minor nature not affecting performance of the cable, the
129

Contractor and Owner may negotiate a basis for the use of
these nonconforming cables. In such cases, the specific
characteristic being waived shall be noted in writing.
5.2 The Engineer shall determine the degree of inspection
and measurements necessary to make a judgment of cable and
wire suitability. This judgment should be based on past
experience, current circumstances, and the results of the
inspection and any measurements on the cable and wire. The
following inspection guidelines are suggested:
a.

Make sure that cable and wire are identified
properly on the reel identification labels. Does
it contain the proper shield, number of pairs,
gauge size, number of fibers, etc. Bi-metallic
shields can be detected by using a magnet.

b.

Note any physical damage to the cable and wire.
Pay special attention to cables and wires with
damaged or weakened reels.

c.

End caps should be secured in place on both ends of
the cable and wire. Also, the reel wrap, when
present, shall be retained on the reel until the
cable and wire are ready to be placed.

d.

Compare sequential markings with labels on reels
and double check footages. Measure sequentials on
a spot check basis to assure correct tolerances.
Note quality and clarity of sequentials.

e.

Filled cable and wire shall be carefully checked
for the presence of filling compound at the ends.

f.

Check for uniform jacket thickness and tightness of
the jacket. Note any buckling of the jacket which
would indicate possible problems with the shield.

g.

As the circumstances warrant, make electrical
and/or optical measurements on a sample lot of
cable and wire to determine that the appropriate
RUS specification requirements are met. The
physical inspection of the cable and past history
should be used as a guide to determine (a) if any
electrical or optical measurements are warranted;
or (b) what degree of electrical or optical
measurements are warranted. In general, extensive
measurements of cable and wire are not recommended.

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B. INSPECTIONS AND ACCEPTANCE TESTS
Section 1.

General.

1.1 Except for the items mentioned in paragraph 1.2, the
inspections and acceptance tests specified herein shall be
made after the physical completion of the various types of
outside plant facilities in each exchange area or work sector
and shall not replace the normal supervision, inspection, and
tests to be made by the Contractor and the Engineer during the
progress of the construction work. Unless otherwise
indicated, all inspection and acceptance tests specified
herein shall be performed jointly by the Contractor and the
Engineer under the direct supervision of the Engineer.
1.2 Buried splice closures shall be individually
inspected during installation for proper encapsulation and
flash tested when applicable. Cable and wire shield or armor
continuity tests shall also be conducted on each length of
cable or wire containing a buried splice immediately after
installation and prior to backfilling. Tests for leakage,
continuity, crosses, splits, etc., shall be made on all
spliced pairs prior to backfilling.
Section 2.

Inspections.

2.1 The Contractor and the Engineer shall jointly inspect
splice closures, cable terminals, buried plant housings,
Network Interface Devices, service entrances, and other
housings applicable to the plant facilities constructed
pursuant to the Contract. Except where otherwise stated these
inspections shall be on a random sampling basis and the
samples inspected in each instance shall consist of at least
five percent (5%) of the specified assembly units installed in
each exchange, but no fewer than ten (10) terminals, readyaccess closures, housings, and Network Interface Device
installations in each exchange. A written report giving the
date, location of the plant inspected, and tabulated results
of the inspections, signed by the Engineer and Contractor
shall be presented to the Owner after the inspections are
completed.

131

2.2 Where aerial copper cable is installed, a joint
inspection shall be made of the sample terminals (including
ready-access closures) selected at random throughout the
exchange by the Engineer. This inspection shall be made to
ensure that:
a.

All pairs are terminated properly.

b.

Splices are free from reversed, transposed and
split pairs.

c.

Shields of aerial cables and suspension strands are
properly bonded and grounded and that the bonding
harnesses have been properly installed.

d.

Specified pairs have been protected and proper
protectors used.

e.

Pair splicing in ready-access closures is made in
accordance with pair assignment data furnished to
the Contractor by the Engineer.

f.

Specifications for terminal and ready-access
closure installations have been met in every aspect
in accordance with RUS Splicing Standard Bulletin
1753F-401 (PC-2).

g.

Good workmanship in the pole mounted terminal or
closure installations has been performed.

2.3 Where aerial fiber cable and self supporting fiber
optic cable is installed, a joint inspection shall be made of
the sample splice closures selected at random throughout the
exchange by the Engineer. This inspection shall be made to
ensure that:
a.

All optical fibers are terminated properly.

b.

When present, armors of aerial cables and
suspension strands are properly bonded and grounded
and that the bonding harnesses have been properly
installed.

c.

The minimum bending radius of the buffer tubes is
not exceeded.

d.

Good workmanship in the closure installations has
been performed.

132

2.4 Where buried copper cable or wire is installed, a
joint inspection shall be made of the sample housings and
splice closures selected at random throughout the exchange by
the Engineer. This inspection shall be made to ensure that:
a.

Splices are free from reversed, transposed and
split pairs.

b.

Pair splicing is made in accordance with pair
assignment data issued to the Contractor by the
Engineer.

c.

Cable and wire directional markings are as shown in
the Construction Sheets.

d.

Shields are properly bonded and grounded and that
the bonding harnesses have been properly installed.

e.

Specifications for cable and wire splicing
installations have been met in every respect in
accordance with RUS Splicing Standard Bulletin
1753F-401(PC-2).

f.

Good workmanship in the housing installations has
been performed.

g.

Warning, cable route, and buried splice signs, and
housing letters and numbers are properly installed.

h.

All buried splice closures have been installed
properly and splices flash tested, when applicable.
These inspections may be performed during and
immediately after installation as stated in
Paragraph 1.2.

i.

All buried service entrances are installed properly
in housings at premises.

2.5 Where buried fiber optic cable is installed, a joint
inspection shall be made of the sample housings and splice
closures selected at random throughout the exchange by the
Engineer. This inspection shall be made to ensure that:
a.

All optical fibers are terminated properly.

b.

Armors properly bonded and grounded and that the
bonding harnesses have been properly installed.

c. The minimum bending radius of the buffer tubes is
not exceeded.
133

d. Cable directional markings are as shown in the
Construction Sheets.
e.

Warning, cable route, and buried splice signs, and
housing letters and numbers are properly installed.

f.

All buried splice closures have been installed
properly. These inspections may be performed
during and immediately after installation as stated
in Paragraph 1.2.

g.

Good workmanship in the closure installations has
been performed.

2.6 Where a cable is installed over which electronic
carrier systems will operate, an inspection shall be made
jointly by the Engineer and the Contractor of the entire
length of cable to ensure that:
a.

All shields and armor are properly bonded and
grounded and that the bonding harnesses have been
properly installed.

b.

The specified gauge and size of the copper cable
and the number of optical fibers are installed in
accordance with the Plans and Specifications.

c.

No loading coils have been installed on the cable
pairs over which the carrier equipment will
operate.

d.

The housings to which the carrier repeaters are to
be connected are spaced at the proper intervals.
Any minor deviations shall be noted and corrected
on the cable schematics.

e.

Cable directional markings are as shown on the
Construction Sheets at each housing where a cable
carrier repeater is to be installed.

2.7 Where Network Interface Devices are included under
this Contract, a joint inspection shall be made of the sample
installations selected at random throughout the exchange by
the Engineer. The inspection shall be made to ensure that:
a.

All wire runs have required clearances.

b.

Aerial service wire spans have proper sags.

134

c.

Correct wire fasteners have been used and at
required intervals.

d.

All wires on and in buildings have been installed
in a neat and inconspicuous manner.

e.

The Network Interface Device (including its ground)
has been properly located, installed, and wired and
is of the proper type.

f.

The proper type and gauge of ground wire is used
and properly routed and specified bonding is
implemented.

g.

A ground rod of proper type is installed, if
required.

h.

The buried service guard has been properly
installed.

i.

Good workmanship has been used throughout the
installation, and any damage to the premises or
grounds has been adequately repaired.

Section 3.

Acceptance Tests and Measurements.

All acceptance tests and measurements to be performed on
the various portions of the outside plant construction
pursuant to this Contract, and the party(s) who will
participate in conducting the acceptance tests and
measurements, shall be as checked in the Schedule of
Acceptance Tests and Measurements Table listed below. All
tests and measurements shall be conducted by the Engineer in
accordance with RUS Bulletin 1753F-201(PC-4), “RUS Standard
for Acceptance Tests and Measurements of Telecommunications
Plant." A written report including the tabulated results of
the acceptance tests and measurements on forms similar to
those included in RUS Bulletin 1753F-201(PC-4), “RUS Standard
for Acceptance Tests and Measurements of Telecommunications
Plant" shall be signed by the Engineer and the Contractor and
furnished to the Owner. Where Contractor participation is
specified, compensation shall be included in the appropriate
cable unit.

135

Schedule of Acceptance Tests and Measurements

Description of Test or
Measurement

Copper Shield or

Test or Measurement
Subscriber
Trunk
Loop Plant
Plant
Dist.
Feeder
Pairs
Pairs

Participants
Owner

Engineer

Contractor

X

X

X

P

P

Conductor Continuity

X*

X

7X

P

P

Conductor Insulation

X*

X

X

P

P

DC Loop Resistance

N/A

P

P

DC Loop Resistance

N/A

P

P

Shield/Armor Continuity

Resistance

Unbalance
Loop Measurements (Loop

N/A

Checking)
One-Person Open Circuit

N/A

P

P

Measurement
Cable Insertion Loss at
Carrier Frequencies
Fiber Armor Continuity

N/A

P

P

Fiber Optic Splice Loss –
Field
Fiber Optic Splice Loss –
C.O.
End-to-End Attenuation
End-to-End Fiber Signature

X

X

X

P

P

X

X

X

P

P

X

X

X

P

P

X

X

X

P

P

X

X

X

P

P

X

X

X

P

P

Signal-to-C Notched
Noise(S/CNN)
Signal-to-Intermodulation
Distortion(S/IMD)
Envelope Delay
Distortion(EDD)
Amplitude Jitter(AJ)
Phase Jitter (PJ)
Impulse Noise
Shield or Armor Ground
Resistance

136

Schedule of Acceptance Tests and Measurements
(continued)
Test or Measurement
Description of Test or
Measurement

Participants
Owner

CO and Remote Switching

Engineer

Contractor

P

P

P

P

Terminal (RST) Ground
Measurement
Electronic Equipment
Ground Resistance

Fiber Splice loss tests to be performed at: __1310nm __1550nm
(Engineer to check one or both wavelengths above)
Engineer to check † optional tests to be made.
X -

These are standard tests and measurements required on
facilities as designated by the Engineer, constructed or
installed under this Contract.

NA -

Not Applicable.

* -

These tests will not be required on distribution pairs
that are not cross-connected to feeder pairs at time of
acceptance testing.

P -

Indicates participation in conducting acceptance tests
and measurements.

137

Article VI - REMEDIES
Section 1.

Completion of 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
Contract, the Owner, without in any manner limiting its legal
and equitable remedies in the circumstances, may serve upon
the Contractor and the surety or sureties upon the
Contractor's Bond or Bonds 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 such default shall be corrected or
arrangements for the correction thereof, satisfactory to both
the Owner and the Administrator, shall be made by the
Contractor 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 Contractor, and the Contractor and its surety
or 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 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 Contract and for such purpose the Contractor does
hereby assign, transfer, and set over unto the Owner all
rights, claims, and demands.
Section 2.

Liquidated Damages.

The time of the Completion of the Construction of the
Project is of the essence of this Contract. Should the
Contractor 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
Contractor 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 Contractor
138

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 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 VI shall be the exclusive measure of
damages for failure by the Contractor to complete the
construction of the Project within the time therein agreed
upon.
Article VII - 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 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. Every right or remedy conferred upon
or reserved to the Owner hereunder may be exercised by the
Supervisor, if any.

139

(d) The term "Contractor's Proposal" shall mean the
proposal of the Contractor including all accompanying
documents as therein referred to, a copy of which is attached
to and made a part hereof, and upon which the award of the
Contract was made.
(e) The term "Project" shall mean the rural telephone
system, or portion thereof, described in the Plans and
Specifications, Construction Sheets, and Maps.
(f) The term "Section" shall mean a central office area
of the Project.
(g) 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
except the Contractor's obligations in respect of (i) Releases
of Liens and Certificate of Contractor under Article III,
Section 2, hereof; (ii) the Inventory referred to in Article
III, Section 1, hereof; and (iii) other final documents. The
term "Completion of the Project" or "Completion of a Section"
shall mean full performance by the Contractor of the
Contractor'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 or Section.
(h) The term "Cleanup" shall mean all work necessary to
enable the Assembly Units called for on the Construction
Sheets to meet specifications as built and to restore the
terrain to an acceptable condition.
(i) The term "Work Sector" shall mean a localized portion
of the project for purposes of specifying sequence of
construction and shall be shown on the maps.
(j) The term "Construction Corridor" shall mean a minimum
width of 1 rod (5.0 meters) along the designated route for
buried cable and wire placement, which permits passage and
operation of the construction equipment. Construction
Corridors that equal or exceed the minimum width will not be
designated on the Construction Sheets.
(k) The term "Reduced Construction Corridor" shall mean
widths less than the standard "Construction Corridor". The
approximate width applicable to "Reduced Construction
Corridor" shall be shown on the Construction Sheets.

140

(l) The term "Restricted Construction Corridor" shall
mean a "Construction Corridor" or "Reduced Construction
Corridor" where the location within the corridor of cable to
be placed is specified due to the presence of existing
telecommunications plant or the facilities of other utilities,
right-of-way restrictions or other factors. The nature of the
restriction and the approximate location of the cable
placement within the "Restricted Corridor" shall be shown on
the Construction Sheets.
(m) The term "Unobtained Construction Corridor" shall
mean a "Construction Corridor" where the right-of-way has not
been obtained. Unobtained Construction Corridors shall be
shown on the Construction Sheets.
(n) The term "Construction Sheets" shall mean staking
sheets, strip maps or other sheets provided by the Engineer
and designated as work sheets for construction purposes.
(o) The term "Cable Placement Operation" shall mean a
construction crew whose sole responsibility is the
installation of telecommunications cable which requires an
inspector present during the activity. Other activities not
requiring an inspector, such as boring without the
installation of a cable, pedestal installation, asphalt
repairs, clean up, and splicing shall not be considered cable
placement operations.
(p) The term "Eligible Country" shall mean any country
that applies with respect to the United States an agreement
insuring reciprocal access for United States products and
services and United States suppliers to the markets of that
country, as determined by the United States Trade
Representative.
Section 2.

Materials and Supplies.

In the performance of this Contract there shall be used
only such unmanufactured articles, materials, and supplies as
have been mined or produced in the United States or an
eligible country, and only such manufactured articles,
materials, and supplies as have been manufactured in the
United States or an eligible country, substantially all from
articles, materials, or supplies mined, produced, or
manufactured, as the case may be, in the United States or an
eligible country; Provided, that articles, materials, or
supplies not produced or manufactured in the United States, or
an eligible country, may be used in the event and to the
extent that the Administrator shall expressly in writing
authorize such use as pursuant to the provisions of the Rural
141

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 Owner such certificate
or certificates (RUS Form 213, attached hereto), signed by the
Contractor and all subcontractors, with respect to compliance
with the foregoing provisions as the Administrator from time
to time may require.
Section 3.

Nonassignment of Contract.

The Contractor shall perform directly, and without
subcontracting, not less than fifty percent (50%) of the labor
required for the construction of the Project, to be calculated
on the basis of that portion of the contract price
constituting total labor costs of the Project. The Contractor
shall not assign this Contract 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 Contractor's obligations hereunder or any
part thereof, without the approval in writing of the Owner and
the Administrator and of the surety or sureties on any bond
furnished by the Contractor for the faithful performance of
the Contractor's obligations hereunder. If the Contractor,
with the consent of the Owner, the Administrator, and any
surety or sureties on the Contractor's Bond or Bonds, shall
enter into a subcontract (RUS Form 282, attached hereto) with
any subcontractor for the performance of any part of this
Contract, the Contractor shall be as fully responsible to the
Owner and the Government for the acts and 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 Contractor would be for its own acts and
omissions and those of persons directly employed by it.
Section 4.

Equal Opportunity Clause.

During the performance of this contract, the Contractor
agrees as follows:
(a) 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
142

conspicuous places, available to employees and applicants for
employment, notices to be provided setting forth the
provisions of this nondiscrimination clause.
(b) 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.
(c) 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 workers'
representative 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.
(d) The Contractor will comply with all provisions of
Executive Order 11246 of September 24, 1965, and by rules,
regulations, and relevant orders of the Secretary of Labor.
(e) 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.
(f) In the event of the Contractor's noncompliance with
the nondiscrimination clauses 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
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 otherwise provided by law.
(g)
The Contractor will include the portion of the
sentence immediately preceding paragraph (a) and the
provisions of paragraphs (a) through (g) 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
143

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 of America to enter into such
litigation to protect the interest of the United States.
Section 5.

Anti-Kickback Acts.

The Contractor acknowledges that it is familiar with the
Rural Electrification Act of 1936, as amended, the AntiKickback Acts, as amended (40 USC 276c; 41 USC 51 et seq.),
and regulations issued pursuant thereto, and 18 USC Sections
287, 874, 1001, as amended. The Contractor understands that
the obligations of the parties hereunder are subject to the
applicable regulations and orders of the Governmental agencies
having jurisdiction in the premises.
Section 6.

Franchises and Rights-of-Way.

The Contractor 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 any other matter incident to the
construction and operation of the Project.
Section 7.

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.

144

Section 8.

Approval of This Contract by the Administrator

This Contract shall become effective only upon the approval in
writing of the Administrator: Provided, however, that no
obligations shall arise hereinunder unless such approval is
given within ninety (90) days from the date of execution by
the parties as indicated herein.
Where Contractor is a Corporation, this section to be used.
IN 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.
Attest:
__________________________
(Owner)

_____________________

By________________________

(Secretary)

(President)

Attest:

__________________________
(Contractor)

___________

__________________________

(Secretary)

(President)

Where Contractor is an individual or a partnership this
section to be used. If partnership, all parties shall sign.
IN WITNESS WHEREOF, the Owner 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 Contractor(s) has (have) hereunto set his
(their) hand(s), all as of the day and year first above
written.
Attest:
__________________________
(Owner)

_____________________

By________________________

(Secretary)

(President)

__________________________
(Contractor)

__________________________
(Owner or Partners)

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146

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB
control number. The valid OMB control number for this information collection is 0572–0107. The time required to complete this information collection is estimated to average .05 hour per
response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information

U.S. Department of Agriculture
Rural Utilities Service

CERTIFICATE OF CONTRACTOR
____________________________________________________________________ certifies that he or she is the
____________________________________________ of ____________________________________________ ,
TITLE OF OFFICE

NAME OF CONTRACTOR

the Contractor, in a Construction Contract No. _____________________________________________________ ,
dated ___________________________________________ , 20______ , entered into between the Contractor and
_______________________________________________________________ , the Owner, for the construction of
NAME OF BORROWER

a Project, which bears the Rural Utilities Service Project Designation ___________________________________
and that he or she 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, material suppliers, 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 OR SERVICES

___________________________________________

____________________________________________

___________________________________________

____________________________________________

___________________________________________

____________________________________________

___________________________________________

____________________________________________

___________________________________________

____________________________________________

___________________________________________

____________________________________________

___________________________________________

____________________________________________

___________________________________________

____________________________________________

___________________________________________

____________________________________________

___________________________________________

____________________________________________

and that the releases of liens executed by all such manufacturers, material suppliers, and subcontractors have been
furnished the Owner.
_____________________________________
Date

__________________________________________________
Signature

147

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148

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB
control number. The valid OMB control number for this information collection is 0572–0107. The time required to complete this information collection is estimated to average .05 hour per
response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information

U.S. Department of Agriculture
Rural Utilities Service

WAIVER AND RELEASE OF LIEN
WHEREAS the undersigned, ____________________________________________________________________
NAME OF MANUFACTURER, MATERIAL SUPPLIER, OR SUBCONTRACTOR

has furnished to __________________________________________________________________ the following:
NAME OF CONTRACTOR

_________________________________________________________________________________________ for
KIND OF MATERIAL AND SERVICES FURNISHED

use in the construction of a project belonging to _____________________________________________________
NAME OF BORROWER

and designated by the Rural Utilities Service as _____________________________________________________
RUS DESIGNATION

NOW, THEREFORE, the undersigned, _____________________________________________________________
NAME OF MANUFACTURER, MATERIAL SUPPLIER, 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 __________________________________________________________________________ for said project.
NAME OF CONTRACTOR

Given under my(our) hand(s) and seal(s) this __________________ day of ____________________, 20_______.

__________________________________________________
Name of Manufacturer, Material Supplier, or Subcontractor

By __________________________________________________
President, Vice President, Partner or Owner
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 applicable designation.)

149

RUS FORM 224 (Rev. 02-00)

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150

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB
control number. The valid OMB control number for this information collection is 0572–0107. The time required to complete this information collection is estimated to average .05 hour per
response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

U.S. Department of Agriculture
Rural Utilities Service

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 _______________________________________________________
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 _______________________,
20_____, 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.
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

4.

151

RUS FORM 168b (Rev. 02-00)

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 ________________________________ , 20______ .

(Seal)
Principle

ATTEST:

By

Secretary

(Seal)
Surety

ATTEST:

By

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.

152

RUS FORM 168b (Rev. 02-00)

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.

153

RUS FORM 168b (Rev. 02-00)

This page intentionally left blank.

154

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB
control number. The valid OMB control number for this information collection is 0572–0107. The time required to complete this information collection is estimated to average .05 hour per
response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

U.S. Department of Agriculture
Rural Utilities Service

CONTRACTOR'S BOND
(Use only when contract is less than $1 million and Surety has accepted an SBA* 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 _______________________________________________________
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 _______________________, 20_____,
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.

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

* Small Business Administration

155

RUS FORM 168c (Rev. 02-00)

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, 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.

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 ________________________________ , 20______ .

(Seal)
Principle

ATTEST:

RUS FORM 168c (Rev. 02-00)

By

156

Secretary

(Seal)
Surety

ATTEST:

By

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.

RUS FORM 168c (Rev. 02-00)

157

This page intentionally left blank.

158

U.S. Department of Agriculture
Rural Utilities Service

SUBCONTRACT
(Under Construction or Equipment Contracts)
AGREEMENT made this

day of

Between

,

by and

a (partnership, individual,

Corporation), (hereinafter called the “Contractor”) and
of
(hereinafter called the “Subcontractor”).
WHEREAS, the Contractor has entered into a Construction Contract or Equipment Contract (hereinafter
called the “Contract”) dated

,

, with

; and
WHEREAS, the Contractor and the Subcontractor desire that all of the Contractor's obligations with
regard to certain work under the Contract be performed by the Subcontractor;
NOW, THEREFORE, in consideration of the mutual undertakings herein contained, the parties hereto
agree as follows:
SECTION 1. The Subcontractor agrees to perform the Contractor's obligations under the Contract which,
by this reference, is made a part hereof as though set out in its entirety with respect to:

SECTION 2. The Subcontractor agrees that all of the work to be done hereunder shall be carried out as
directed by the Engineer of the Owner in full accordance with the terms and provisions of the Contract.

159

RUS FORM 282

Rev. 11-53

SECTION 3. The Subcontractor shall maintain all insurance required under the Contract and shall hold
the Contractor and the Owner harmless from any and all claims for injuries to persons or for damage to property
happening by reason of any negligence, default or misconduct on the part of the Subcontractor, his agents or
employees during the performance of this Agreement.
SECTION 4. The Contractor agrees to pay the Subcontractor for the performance of the work
Hereunder the sum of
,$

Payable as follows:

SECTION 5. The work to be performed hereunder shall be completed to the satisfaction of the Contractor
and the Owner within the time specified in the Contract. In the event additions to or alterations in the work to be
performed hereunder are made necessary by changes in the Contract, the Subcontractor agrees to perform such
additional or alternative work in the same manner and under the same terms and conditions as the Contractor
would be required so to perform.
SECTION 6. Upon approval of this Agreement by the Owner, the surety company, if any (hereinafter called
the “Surety”) furnishing the Performance Bond required by the Contract, and the Administrator of the Rural
Utilities Service (hereinafter called the “Administrator”), the Subcontractor shall, if required by Contractor,
furnish to the Contractor a Performance Bond in form and substance satisfactory to the Contractor.

160

RUS FORM 282

Rev. 11-53

SECTION 7. This agreement shall not become effective until consented to and approved in writing by the Owner,
the Surety if any, and the Administrator; provided, however, that consent to and approval hereof by the Owner and
the Administrator shall in no way operate to release the Contractor from the Contractor's duties and obligations to
the Owner under the Contract or operate to release the Surety if any, from its obligations under the Performance
Bond required by and relating to the Contract.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above
written.

CONTRACTOR

SUBCONTRACTOR

By

By
TITLE

TITLE

CONSENTED TO AND APPROVED:
SEAL
OWNER

By
DATE

PRESIDENT

CONSENTED TO AND APPROVED:
SEAL
SURETY COMPANY1

By
DATE

1

Attach power of attorney in favor of person signing for Surety.

161

RUS FORM 282

Rev. 11-53

This page intentionally left blank.

162

DATE
DEPARTMENT OF AGRICULTURE
RURAL UTILITIES SERVICE

CONSTRUCTION CHANGE ORDER
PROJECT

LINE

SHEET NO.

ORDER NO.

POLES NO.

REFER TO ITEM NO.

CHANGE

REASON FOR CHANGE

CHANGE AUTHORIZED BY:

SYSTEM MANAGER

BORROWER'S ENGINEER

ITEMIZED COST OF ABOVE ORDER

CONTRACTOR
RUS FORM 216

REV 7- 55

163

This page intentionally left blank.

164

RUS FORM 526
REV. 8-66
U. S. DEPARTMENT OF AGRICULTURE
RURAL UTILITIES SERVICE

1. PROJECT DESIGNATION

CONSTRUCTION CONTRACT AMENDMENT

2. AMENDMENT NO.

INSTRUCTIONS – Submit three (3) copies of this form
And three (3) copies of all attachments.
To: THE ADMINISTRATOR
RURAL UTILITIES SERVICE
U. S. DEPT. OF AGRICULTURE , WASHINGTON, D.C. 20250

3. DATE

4.
DETAILS OF CHANGES ARE TABULATED ON SHEET 2
T0
ATTACHED AND ARE PART OF THIS AMENDMENT.

5.
THE FOLLOWING CHANGES IN CONSTRUCTION CONTRACT NUMBER

,

DATED

ARE HEREBY MERELY 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).

ROUTE
MILES

SUBSCRIBERS
SIGNED

PRICE

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. FOR ADDITIONAL DATA REFER TO STATEMENT OF CONSTRUCTION, RUS FORM 527 DATED

,

,

WHICH

ARE ATTACH ED HEREBY AND MADE A PART HEREOF.
8. BOND EXTENSION ATTACHED
YES

9. THE CONSTRUCTION PERIOD WILL BE CHANGE TO

DAYS.

NO

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

By

By
CONTRACTOR

BORROWER

By
PRESIDENT – OWNER –PARTNER*

By
PRESIDENT

APPROVED

DATE

ENGINEER FOR THE BORROWER

*Strike out inapplicable tittle. If signed by other than above, power of attorney should be attached or on file with RUS.
RUS Form 526

Rev. 8-66

165

SHEET
RUS FORM 526
REV 8-66
ATTACHMENT

ITEM
NO.

**---

166

--1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

ASSEMBLY
UNIT
DESIGNATION

U.S. DEPARTMENT OF AGRICULTURE
RURAL UTILITIES SERVICE

PROJECT DESIGNATION

CONSTRUCTION CONTRACT
AMENDMENT
D E T A I LS O F C O N T R A C T A M E N D M E N T
*CONTRACT AMENDED TO READ
QUANTITY
NET CHANGE

---------------------

PREVIOUSLY
APPROVED

NUMBER
OF UNITS

NUMBER
OF UNITS

UNIT PRICE

LABOR

-------------------- -------------------- --------------------- ---------------

MATERIAL

TOTAL
TOTAL

PRICE

--------------- ---------------

TOTALS F
NET TOTAL

* Show quantities and prices as revised by this amendment.

OF

AMENDMENT NUMBER

**Carried forward from previous page.

TOTAL
INCREASE
PRICE

TOTAL
DECREASE
PRICE

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB control
number. The valid OMB control number for this information collection is 0572–0107. The time required to complete this information collection is estimated to average .05 of an hour per response,
including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

U.S. Department of Agriculture
Rural Utilities Service

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
1

The undersigned, being, the
in a certain contract No.

dated

,

,

between the undersigned
2

,

and

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 3or in any eligible country
and no manufactured articles, materials or supplies which have not been manufactured in the United States or in any
eligible country substantially all from articles, materials or supplies mined, produced or manufactured, as the case may
be, in the United States or in any eligible country, except to the extent that 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) has been waived by the Administrator of the Rural Utilities
Service. For purposes of this certificate, an “eligible country” is any country that applies with respect to the United
States an agreement ensuring reciprocal access for United States products and services and suppliers to the markets of
that country, as determined by the Unites States Trade Representative.4

By
Date

,

1

Insert "Contractor," "Subcontractor," "Seller," Or "Material Supplier," as the case may be.
Insert the name of the RUS Borrower.
3
United States means United States, its territories and possessions.
4
A current list of eligible countries may be obtained by contacting RUS.
2

167

RUS FORM 213 (Rev. 11-99)


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