RD 1924-6 Construction Contract

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Position 6
USDA - RD
Form RD 1924-6
(Rev. 8-93)

FORM APPROVED
OMB NO. 0575-0042

CONSTRUCTION CONTRACT

State
County

This Contract, made this

,

day of

20

,

of

by
(hereinafter called the ''Owner''), and

of
(hereinafter called the "Contractor").

WITNESSETH that the parties hereto agree as follows:
(A)

The Contractor will furnish materials and perform the work for:

dollars ($
for the consideration of
in accordance with the "General Conditions'' shown in this contract and the specifications and the drawings as follows:

(B)

,

The Contractor will start work by
,

the work by
(C) The Owner will make payments as follows. (Check
not applicable.)

20

20

),

, and will complete

(See paragraph III of General Conditions).

proper payment clause and effectively xxxxxxxx out all of the clauses

1. ONE LUMP SUM will be made for the whole contract, upon acceptance by the owner and Rural Development of all work
required hereunder and compliance by contractor with all the terms and conditions of this contract.
2. PARTIAL PAYMENTS NOT TO EXCEED 60 PERCENT of the value of the work in place (less the aggregate of
previous payments) will be made at intervals of
. The value of work in place shall be as estimated
by the contractor and approved by Rural Development. Prior to receiving any partial payment, the contractor must
furnish the owner with a statement showing the total amount owed to date for materials and labor
procured under this contract and, if required by the owner or Rural Development, must also submit
evidence showing that previous partial payments were properly applied and that the current payment will be properly
applied. Upon completion of the whole contract and acceptance of the work as required hereunder, by the owner
and Rural Development, and compliance by the contractor with all terms and conditions of this contract, the amount
due the contractor will be paid.
3. PARTIAL PAYMENTS IN THE AMOUNT OF 90 PERCENT of the value of the work in place and of the value of
the materials suitably stored at the site (less the aggregate of previous payments) will be made at intervals of
. The value of the work and materials in place or on site shall be as estimated by the contractor
and approved by the owner and Rural Development. Upon acceptance by the owner and Rural Development of all
work required hereunder and compliance by the contractor with all terms and conditions of this contract, the amount
due the contractor will be paid. The contractor shall, before the owner signs the contract, deliver to the owner a surety
bond in the amount of the contract.
(D) The items described below (the Notice of Requirement for Affirmative Action to Ensure Equal Employment
Opportunity required by Executive Order 11246, the Equal Opportunity Clause published at 41 CFR 60-1.4 (a) and (b), and
the Standard Federal Equal Employment Opportunity Construction Contract Specifications required by Executive Order
11246) apply, during the performance of this contract, if the contract exceeds $10,000 (This also includes subsequent loans
and grants, or contract change orders made during the construction period of the original contract, which will cause the total
to exceed $10,000.) to the following: (1) All contractors or subcontractors who hold any Federal or federally assisted
construction contract, (2) All grants, contracts and loans (direct, insured, or guaranteed) let by Rural Development, and (3)
All construction work performed by construction contractors and subcontractors for Federal nonconstruction contractors and
subcontractors if the construction work is necessary in whole or in part to the performance of a nonconstruction contract or
subcontract. The items are applicable to all of a contractor's or subcontractor's employees who are engaged in "on site"
construction including those construction employees who work on a non-Federal or non-federally assisted construction site.
The items, however, will not preempt state or local government regulations of the construction industry, and will not relieve
contractors and subcontractors of the obligations they may have under other affirmative action or equal opportunity
programs.
Public reporting for this collection of information is estimated to average 15 minutes 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. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Agriculture, Clearance Officer, OIRM, AG Box 7630, Washing ton, D.C. 20250; and to the Office of Management and Budget,
Paper work Reduction Project (OMB No. 0575-0042), Washington, D.C. 20503. Please DO NOT RETURN this form to either of these address. Forward to Rural Development only.

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2
NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO ENSURE EQUAL EMPLOYMENT
OPPORTUNITY (Executive Order 11246)
Date

DOL Region

City

Goals and Timetables for WOMEN (Exhibit D, RD Instruction 1901-E)
Trade
All trades
All trades
All trades

Timetable
From 4 -1-78 until 3-31-79
From 4 -1-79 until 3-31-80
From 4 -1-80 until 3-31-81

Goal (%)
3.1
5.1
6.9

Goals and Timetables for ALL MINORITIES (Exhibit D, RD Instruction 1901-E)

EQUAL OPPORTUNITY CLAUSE (41 CFR 60-1.4 (a) AND (b))
(1)

The contractor will not discriminate against any employee or applicant for employment because of race, color, religion,
sex or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that
employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action
shall include, but not be limited, to the following: employment, upgrading, demotion or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment,
notices to be provided by Rural Development setting forth the provisions of this nondiscrimination clause.

(2)

The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state
that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or
national origin.
The contractor will send to each labor union or representative of workers with which contractor has a collective
bargaining agreement or other contract or understanding, a notice, to be provided by Rural Development, advising the
said labor union or workers' representative of the contractor's commitments under this agreement as required pursuant to
Section 301 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice
in conspicuous places available to employees and applicants for employment.
The contractor will comply with all provisions of such Executive Order and of all relevant rules, regulations, and
orders of the Secretary of Labor and of any prior authority which remain in effect.
The contractor will furnish all information and reports required by such Executive Order, rules, regulations, and orders,
or pursuant thereto, and will permit access to books, records, and accounts by Rural Development and the Secretary of
Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
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 contracts in accordance with procedures authorized in such Executive
Order and such other sanctions may be imposed and remedies invoked as provided in the Executive Order or by any such
rules, regulations, or order, or as otherwise provided by law.
The contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order, unless
exempted by such rules, regulations, or orders, so that such provisions will be binding upon each such subcontractor or
vendor. The contractor will take such action as Rural Development may direct as a means of enforcing such provisions,
including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor as a result of such direction by Rural Development, the
contractor may request the United States to enter into such litigation to protect the interest of the United States.

(3)

(4)
(5)

(6)

(7)

RD 1924-6

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STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY CONSTRUCTION CONTRACT
SPECIFICATIONS (EX. O. 11246)

5. Neither the provisions of any collective
bargaining agreement, nor the failure by a union with
whom the Contractor has a collective bargaining
1. As used in these specifications:
agreement, to refer either minorities or women shall
a. "Covered area" means the geographical area
excuse the Con-tractor's obligations under these
described in the solicitation from which this contract
specifications, Executive Order 11246, or the
resulted;
regulations promulgated pursuant thereto.
b. "Director" means Director, Office of Federal
6. In order for the nonworking training hours of
Contract Compliance Programs, United States
apprentices and trainees to be counted in meeting the
Department of Labor, or any person to whom the
goals, such apprentices and trainees must be employed
Director delegates authority;
by the Contractor during the training period, and the
c. "Employer identification number" means the
Contractor must have made a commitment to employ
Federal Social Security number used on the Employer's
the apprentices and trainees at the completion of their
Quarterly Federal Tax Return, U.S. Treasury
training, subject to the availability of employment
Department Form 941.
opportunities. Trainees must be trained pursuant to
d. "Minority" includes:
training programs approved by the U.S. Department
(i) Black (all persons having origins in any of the
of Labor.
Black African racial groups not of Hispanic origin);
7. The Contractor shall take specific affirmative
(ii) Hispanic ( all persons of Mexican, Puerto Rican,
actions to ensure equal employment opportunity. The
Cuban, Central or South American or other Spanish
evaluation of the Contractors compliance with these
Culture or origin, regardless of race);
specifications shall be based upon its effort to achieve
(iii) Asian and Pacific Islander ( all persons having
maximum results from its actions. The Contractor shall
origins in any of the original peoples of the Far East,
document these efforts fully, and shall implement
Southeast Asia, the Indian Subcontinent, or the Pacific
affirmative action steps at least as extensive as the
Islands); and
following:
(iv) American Indian or Alaskan Native
a. Ensure and maintain a working environment free
(all persons having origins in any of the original peoples of harassment, intimidation, and coercion at all sites,
of North American and maintaining identifiable and
and in all facilities at which the Contractor's employees
participation or community identification).
are assigned to work. The Contractor, where possible,
2. Whenever the Contractor, or any Subcontractor at
will assign two or more women to each construction
any tier, subcontracts a portion of the work involving any projects. The Contractor shall specifically ensure that
construction trade, it shall physically include in each
all foremen, superintendents, and other on-site supersubcontract in excess of $10,000 the provisions of these
visory personnel are aware of and carry out the Conspecifications and the Notice which contains the
tractor's obligation to maintain such a working environapplicable goals for minority and female participation
ment with specific attention to minority or female
and which is set forth in the solicitations from which
individuals working at such sites or in such facilities.
this contract resulted.
b. Establish and maintain a current list of minority
3. If the Contractor is participating (pursuant to 41
and female recruitment sources, provide written
CFR 60-4.5) in a Hometown Plan approved by the U.S. notification to minority and female recruitment sources
Department of Labor in the covered area either
and to community organizations when the Contractor
individually or through an association, its affirmative
or its unions have employment opportunities available,
action obligations on all work in the Plan area
and maintain a record of the organization's responses.
(including goals and timetables) shall be in accordance
c. Maintain a current file of the names, addresses and
with that Plan for those trades which have unions
telephone numbers of each minority and female
participating in the Plan. Contractors must be able to
off-the-street applicant and minority or female referral
demonstrate their participation in and compliance with
from a union, a recruitment source of community
the provisions of any such Hometown Plan. Each
organization and of what action was taken- with respect
Contractor or Subcontractor participating in an approved to each such individual. If such individual was sent to
Plan is individually required to comply with its
the union hiring hall for referral and was not referred
obligations under the EEO clause, and to make a good
back to the Contractor by the union or, if referred, not
faith effort to achieve each goal under the Plan in each
employed by the Contractor, this shall be documented
trade in which it has employees. The overall good faith in the file with the reason therefor, along with whatever
performance by other Contractors or Subcontractors
additional actions the Contractor may have taken.
toward a goal in an approved Plan does not excuse any
d. Provide immediate written notification to the
covered Contractor's or Subcontractors failure to take Director when the union or unions with which the
good faith efforts to achieve the Plan goals and
Contractor has a collective bargaining agreement has
timetables.
not referred to the Contractor a minority person or
4. The Contractor shall implement the specific
woman sent by the Con tractor, or when the
affirmative action standards provided in paragraphs 7a
Contractor has other information that the union referral
through p of these specifications. The goals set forth in process has impeded the Contractor's efforts to meet
the solicitation from which this contract resulted are
its obligations.
expressed as percentages of the total hours of
e. Develop on-the-job training opportunities and/or
employment and training of minority and female
participate in training programs for the area which
utilization the Contractor should reasonably be able to
expressly include minorities and women, including
achieve in each construction trade in which it has
upgrading programs and apprenticeship and trainee
employees in the covered area. The Contractor is
programs relevant to the Contractor's employment
expected to make substantially uniform progress toward
needs, especially those programs funded or approved
its goals in each craft during the period specified.
by the Department of Labor. The Contractor shall

3

provide notice of these programs to the sources
complied under 7b above.
f. Disseminate the Contractor's EEO policy by
providing notice of the policy to unions and training
programs and requesting their cooperation in
assisting the Contractor in meeting its EEO obligations;
by including it in any policy manual and collective
bargaining agreement; by publicizing it in the
company newspaper, annual report, etc., by specific
review of the policy with all management personnel
and with all minority and female employees at least
once a year; and by posting the company EEO policy
on bulletin boards accessible to all employees at each
location where construction work is performed.
g. Review, at least annually, the company's EEO
policy and affirmative action obligations under these
specifications with all employees having any
responsibility for hiring, assignment, layoff,
termination or other employment decisions including
specific review of these items with onsite supervisory personnel such as Superintendents,
General Foremen, etc., prior to the initiation of
construction work at any job site. A written record shall
be made and maintained identifying the time and place
of these meetings, persons attending, subject matter
discussed, and disposition of the subject matter.
h. Disseminate the Contractor's EEO policy
externally by including it in any advertising in the
news media, specifically including minority and
female news media, and providing the Contractor's EEO policy with other Contractors and
Subcontractors with whom the Contractor does or
anticipates doing business.
i. Direct its recruitment efforts, both oral and written,
to minority, female and community organizations, to
schools with minority and female students and to
minority and recruitment and training organizations
serving the Contractor's recruitment area and
environment needs. Not later than one month prior to
the date for the acceptance of applications for
apprenticeship or other training by any recruitment
source, the Contractor shall send written notification
to the organizations such as above, describing the
openings, screening procedures, and tests to be used in
the selection process.
j. Encourage present minority and female
employees to recruit other minority persons and
women and, where reasonable, provide after school,
summer and vacation employment to minority and
female youth both on the site and in other areas of a
Contractor's work force.
k. Validate all tests and other selection
requirements where there is an obligation to
do so under 41 CFR Part 60-3.
l. Conduct, at least annually, an inventory and
evaluation at least of all minority and female
personnel for promotional opportunities and
encourage these employees to seek or prepare for,
through appropriate training, etc., such opportunities.
m. Ensure that seniority practices, job classifications, work assignments and other personnel
practices, do not have a discriminatory effect by
continually monitoring all personnel and employment related activities to ensure that the EEO policy
and the Contractor's obligations under these
specifications are being carried out.
n. Ensure that all facilities and company
activities are non-segregated except that separate or
single-user toilet and necessary changing facilities
shall be provided to assure privacy between the sexes.

RD 1924-6

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4
o. Document and maintain a record of all
solicitations of offers for subcontracts from
minority and female construction contractors
and suppliers, including circulation of
solicitations to minority and female contractor
associations and other business associations.
p. Conduct a review, at least annually, of
all supervisors' adherence to and performance
under the Contractor's EEO policies and
affirmative action obligations.
8. Contractors are encouraged to participate
in voluntary associations which assist in
fulfilling one or more of their affirmative action
obligations (7a through p). The effort of a
contractor association, joint contractor-union,
contractor-community, or other similar group
of which the contractor is a member and
participant, may be asserted as fulfilling any
one or more of its obligations under 7a through
p of these Specifications provided that the
contractor actively participates in the group,
makes every effort to assure that the group has
a positive impact on the employment of
minorities and women in the industry, ensures
that the concrete benefits of the program are
reflected in the Contractor's minority and
female work force participation, makes a good
faith effort to meet its individual goals and
timetables, and can provide access to
documentation which demonstrates the
effectiveness of actions taken on behalf of the
Contractor. The obligation to comply, however, is the Contractor's and failure of such a
group to fulfill an obligation shall not be a
defense for the Contractor's noncompliance.
9. A single goal for minorities and a
separate single goal for women have been

(E)

established. The Contractor, however, is
required to provide equal employment
opportunity and to take affirmative action for all
minority groups, both male and female, and all women,
both minority and non-minority. Consequently, the
Contractor may be in violation of the Executive

Order if a particular group is employed in a
substantially disparate manner (for example,
even through the Contractor has achieved its
goals for women generally, the Contractor may
be in violation of the Executive Order if a
specific minority group of women is
underutilized).
10. The Contractor shall not use the goals
and timetables or affirmative action standards to
discriminate against any person because of race,
color, religion, sex, or national origin.
11. The Contractor shall not enter into any
Subcontract with any person or firm debarred
from Government contracts pursuant to
Executive Order 11246.
12. The Contractor shall carry out such
sanctions and penalties for violation of these
specifications and of the Equal Opportunity
Clause, including suspension, termination and
cancellation of existing subcontracts as may be
imposed or ordered pursuant to Executive Order
11246, as amended, and its implementing
regulations, by the Office of Federal Contract
Compliance Pro- grams. Any Contractor who
fails to carry out such sanctions and penalties
shall be in violation of these specifications and
Executive Order 11246, as amended.
13. The Contractor, in fulfilling its obligations under these specifications, shall implement
specific affirmative action steps, at

least as extensive as those standards prescribed in
paragraph 7 of these specifications, so as to achieve
maximum results from its efforts to ensure equal
employment opportunity. If the Contractor fails to
comply with the requirements of the Executive
Order, the implementing regulations, or these
specifications, the Director shall proceed in
accordance with 41 CFR 60-4.8.
14. The Contractor shall designate a responsible
official to monitor all employment related activity
to ensure that the company EEO policy is being
carried out, to submit reports relating to the
provisions hereof as may be required by the
Government and to keep records. Records shall at
least include for each employee the name, address,
telephone numbers, construction trade, union
affiliation if any, employee identification number
when assigned, social security number, race, sex,
status (e.g., mechanic, apprentice, trainee, helper, or
laborer), dates of changes in status, hours worked
per week in the indicated trade, rate of pay, and
locations at which the work will be performed.
Records shall be maintained in an easily understandable and retrievable form; however, to the
degree that existing records satisfy this requirement,
contractors shall not be required to maintain
separate records.
15. Nothing herein provided shall be construed
as a limitation upon the application of other laws
which establish different standards of compliance or
upon the application of requirements for the hiring
of local or other area residents (E.G., those under
the Public Works Employment Act of 1977 and the
Community Development Block Grant Program).

if contract
The contractor will determine if this contract is subject to a Hometown Plan. Check this block
is subject to a Hometown Plan. Effectively xxxxx out this provision if it is not. This contract is subject to the
Plan. The applicable conditions are attached hereto and made a part hereof.

RD 1924-6

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IN WITNESS WHEREOF, the parties hereto have executed this contract as of the date first above written.

(Contractor)

(Owner)

GENERAL CONDITIONS
I.
CHANGES IN WORK.- The Owner may at any time, with the approval of the official designated by Rural Development
(hereinafter called the Representative), make changes in the drawings and specifications, within the general scope thereof. If such
changes cause an increase or decrease in the amount due under this contract or in the time required for its performance, an equitable
adjustment will be made, and this contract will be modified accordingly by a ''Contract Change Order''. No charge for any extra work
or material will be allowed unless the same has been ordered on such contract change order by the Owner with the approval of the
Representative, and the price therefore stated in the order.
II.
INSPECTION OF WORK.- All materials and workmanship will be subject to inspection, examination, and test, by the
Representative, who will have the right to reject defective material and workmanship or require its correction.
III. COMPLETION OF WORK. -If the Contractor refuses or fails to complete the work within the time specified in paragraph B
of this contract, or any extension thereof, the Owner may, with the approval of the Representative, terminate the Contractor's right,
to proceed. In such event the Owner may take over the work and prosecute the same to completion by contract or otherwise and the
Contractor will be liable for any excess cost occasioned the Owner thereby; and the Owner may take possession of and utilize in
completing the work such materials and equipment as may be on the site of the work and necessary therefore. If the Owner does not
terminate the right of the Contract to proceed, the Contractor will continue the work, in which event, actual damages for delay will
be impossible to determine, and in lieu thereof, the Contractor may be required to pay to the Owner the sum of
$
as liquidated damages for each calendar day of delay, and the Contractor the will be liable for the
amount thereof: Provided, however, that the right of the contractor to proceed will not be terminated because of delays in the
completion of the completion of the work due to unforeseeable causes beyond the Contractor's control and without Contractor's
fault or negligence.
IV. RELEASES. -Prior to final payment, the Contractor will submit evidence that all payrolls, material bills, and other indebtedness
connected with the work have been paid as required by the Owner or the Representative.
V. OBLIGATION TO DISCHARGE LIENS. -Acceptance by the Owner and the Representative of the completed work
performed by the Contractor and payment therefore by the Owner will not relieve the Contractor of obligation to the Owner (which
obligation is hereby acknowledged) to discharge any and all liens for the benefit of subcontractors, laborers, material- person, or
any other persons performing labor upon the work or furnishing material or machinery for the work covered by this contract, which
have attached to or may subsequently attach to the property, or interest of the Owner.
VI. NOTICES AND APPROVAL IN WRITING.- Any notice, consent, or other act to be given or done hereunder will be
valid only if in writing.
VII. ADDITIONAL REQUIREMENTS.- The Contractor, in the performance of this contract, will comply with all applicable
Equal Opportunity requirements. The provisions of RD Instruction 1901-F concerning the protection of historical and
archaeological properties and the provisions of RD Instruction 1940-G concerning environmental requirements apply. The
contractor understands that should any archaeological resources be discovered during the construction process, the contractor will
notify the owner and cease further construction activity that could affect the resource until the Owner has consulted with
Representative and the Contractor is informed of any steps to be taken or told to proceed with construction.
VIII. CLEANING UP.- The contractor shall keep the premises free from accumulation of waste material and rubbish and at the
completion of the work shall remove from the premises all rubbish, implements and surplus materials and leave the building
broom-clean.
IX. BUILDERS WARRANTY.- Upon completion of the work the contractor will; (Check
effectively xxxxxxxx out the inapplicable clause.)

proper warranty clause and

execute Form RD 1924-19, ''Builders Warranty''
provide an RD - approved 10-year home warranty policy in accordance with Section 1924.9 and Exhibit L of
RD Instruction 1924-A.
RD 1924-6

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