RD Instruction 1942-A

(Guide 19)

## AGREEMENT

THIS AGREEMENT, made this \_\_\_\_\_\_\_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_, 19 \_\_\_\_, by

and between \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
, hereinafter called \"OWNER\"

(name of Owner), (an Individual)

and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
doing business as (an individual,) or

(a partnership,) or (a corporation) hereinafter called \"CONTRACTOR\".

WITNESSETH: That for and in consideration of the payments and agreements

herein after mentioned:

1\. The CONTRACTOR will commence and complete the construction of

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

2\. The CONTRACTOR will furnish all of the materials, supplies, tools,
equipment, labor, and other services necessary for the construction and
completion of the PROJECT described herein.

3\. The CONTRACTOR will commence the work required by the CONTRACT
DOCUMENTS within \_\_\_\_\_\_\_\_\_ calendar days after the date of the
NOTICE TO PROCEED and will complete the same within
\_\_\_\_\_\_\_\_\_\_\_\_\_\_ calendar days unless the period for
completion is extended otherwise by the CONTRACT DOCUMENTS.

4\. The CONTRACTOR agrees to perform all of the WORK described in the
CONTRACT DOCUMENTS and comply with the terms therein for the sum of
\$\_\_\_\_\_\_\_\_\_\_\_\_\_ or as shown in the BID schedule.

5\. The term \"CONTRACT DOCUMENTS\" MEANS and includes the following:

(1-15-79) SPECIAL PN

RD Instruction 1942-A

(Guide 19) (Page 2)

\(A\) Advertisement For BIDS

\(B\) Information For BIDDERS

\(C\) BID

\(D\) BID BOND

\(E\) Agreement

\(F\) General Conditions

\(G\) SUPPLEMENTAL GENERAL CONDITIONS

\(H\) Payment BOND

\(I\) Performance BOND

\(J\) NOTICE OF AWARD

\(K\) NOTICE TO PROCEED

\(1\) CHANGE ORDER

\(M\) DRAWINGS prepared by
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

numbered \_\_\_\_\_\_\_\_ through \_\_\_\_\_\_\_\_, and dated
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

\(N\) SPECIFICATIONS prepared or issued by
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

dated \_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(O\) ADDENDA:

No.\_\_\_\_\_\_\_\_\_\_\_\_, dated \_\_\_\_\_\_\_\_\_\_, 19
\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_\_

RD Instruction 1942-A

(Guide 19) (Page 3)

(Revision 1)

6\. The OWNER will pay to the CONTRACTOR in the manner and at such times
as set forth in the General Conditions such amounts as required by the
CONTRACT DOCUMENTS.

7\. This Agreement shall be binding upon all parties hereto and their
respective heirs, executors, administrators, successors, and assigns.

IN WITNESS WHEREOF, the parties hereto have executed or caused to be
executed by their duly authorized official, this Agreement in

(\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_) copies each of which shall be
deemed an original on the (Number of Copies) date first above written.

OWNER:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

BY\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Please Type)

Title\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(SEAL)

ATTEST:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Please Type)

Title \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(1-15-79) SPECIAL PN

(Guide 19) (Page 4) RD Instruction 1942-A

(Revision 1)

CONTRACTOR:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

BY\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Please Type)

Address\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Employer Identification

(SEAL) Number \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ATTEST:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Please Type)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

RD Instruction 1942-A

(Guide 19) (Attachment 1)

ADVERTISEMENT FOR BIDS

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Owner

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Separate sealed BIDS for the construction of (briefly describe nature,

scope, and major elements of the
work)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

will be received by
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

at the office of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

until \_\_\_\_\_\_\_, (Standard Time - Daylight Savings
Time)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

19\_\_\_\_\_\_\_, and then at said office publicly opened and read
aloud.

The CONTRACT DOCUMENTS may be examined at the following locations:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Copies of the CONTRACT DOCUMENTS may be obtained at the office of

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ located at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

upon payment of \$\_\_\_\_\_\_\_ for each set.

(1-15-79) SPECIAL PN

RD Instruction 1942-A

(Guide 19) (Attachment 1) (Page 2)

Any BIDDER, upon returning the CONTRACT DOCUMENTS promptly and in

good condition, will be refunded the payment, and any non-bidder upon

so returning the CONTRACT DOCUMENTS will be refunded
\$\_\_\_\_\_\_\_\_\_\_\_\_\_.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DATE

RD Instruction 1942-A

(Guide 19 - Attachment 2)

## INFORMATION FOR BIDDERS

BIDS will be received by
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(herein called the \"OWNER\"), at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

until\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_\_, and then at
said office publicly

opened and read aloud.

Each BID must be submitted in a sealed envelope, addressed to
\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
at \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Each sealed envelope containing a BID must be plainly marked on the
outside as BID for
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_and
the envelope should bear on the outside the BIDDER\'S name, address, and
license number if applicable, and the name of the project for which the
BID is submitted. If forwarded by mail, the sealed envelope containing
the BID must be enclosed in another envelope addressed to the OWNER at
\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

All BIDS must be made on the required BID form. All blank spaces for BID
prices must be filled in, in ink or typewritten, and the BID form must
be fully completed and executed when submitted. Only one copy of the BID
form is required.

The OWNER may waive any informalities or minor defects or reject any and
all BIDS. Any BID may be withdrawn prior to the above scheduled time for
the opening of BIDS or authorized postponement thereof. Any BID received
after the time and date specified shall not be considered. No BIDDER may
withdraw a BID within 60 days after the actual date of the opening
thereof. Should there be reasons why the contract cannot be awarded
within the specified period, the time may be extended by mutual
agreement between the OWNER and the BIDDER.

BIDDERS must satisfy themselves of the accuracy of the estimated
quantities in the BID Schedule by examination of the site and a review
of the drawings and specifications including ADDENDA. After BIDS have
been submitted, the BIDDER shall not assert that there was a
misunderstanding concerning the quantities of WORK or of the nature of
the WORK to be done.

The OWNER shall provide to BIDDERS prior to BIDDING, all information
which is pertinent to, and delineates and describes, the land owned and
rights-of-way acquired or to be acquired.

(1-15-79) SPECIAL PN

RD Instruction 1942-A

(Guide 19 - Attachment 2) (Page 2)

The CONTRACT DOCUMENTS contain the provisions required for the
construction of the PROJECT. Information obtained from an officer,
agent, or employee of the OWNER or any other person shall not affect the
risks or obligations assumed by the CONTRACTOR or relieve the contractor
from fulfilling any of the conditions of the contract.

Each BID must be accompanied by a BID bond payable to the OWNER for five
percent of the total amount of the BID. As soon as the BID prices have
been compared, the OWNER will return the BONDS of all except the three
lowest responsible BIDDERS. When the Agreement is executed the bonds of
the two remaining unsuccessful BIDDERS will be returned. The BID BOND of
the successful BIDDER will be retained until the payment BOND and
performance BOND have been executed and approved, after which it will be
returned. A certified check may be used in lieu of a BID BOND.

A performance BOND and a payment BOND each in the amount of 100 percent
of the CONTRACT PRICE, with a corporate surety approved by the OWNER,
will be required for the faithful performance of the contract.

Attorneys-in-fact who sign BID BONDS or payment BONDS and performance
BONDS must file with each BOND a certified and effective dated copy of
their power of attorney.

The party to whom the contract is awarded will be required to execute
the Agreement and obtain the performance BOND and payment BOND within
ten (10) calendar days from the date when NOTICE OF AWARD is delivered
to the BIDDER. The NOTICE OF AWARD shall be accompanied by the necessary
Agreement and BOND forms. In case of failure of the BIDDER to execute
the Agreement, the OWNER may consider the BIDDER in default, in which
case the BID BOND accompanying the proposal shall become the Property of
the OWNER.

The OWNER within ten (10) days of receipt of acceptable performance
BOND, payment BOND and Agreement signed by the party to whom the
Agreement was awarded shall sign the Agreement and return to such party
an executed duplicate of the Agreement. Should the OWNER not execute the
Agreement within such period, the BIDDER may by WRITTEN NOTICE withdraw
the signed Agreement. Such notice of withdrawal shall be effective upon
receipt of the notice by the OWNER.

The NOTICE TO PROCEED shall be issued within ten (10) days of the
execution of the Agreement by the OWNER. Should there be reasons why the
NOTICE TO PROCEED cannot be issued within such period, the time may be
extended by mutual agreement between the OWNER AND CONTRACTOR. If the
NOTICE TO PROCEED has not been issued within the ten (10) day period or
within the period mutually agreed upon, the CONTRACTOR may terminate the
Agreement without further liability on the part of either party.

The OWNER may make such investigations as deemed necessary to determine
the ability of the BIDDER to perform the WORK, and the BIDDER shall
furnish to the OWNER all such information and data for this purpose as
the OWNER

RD Instruction 1942-A

(Guide 19 - Attachment 2) (Page 3)

may request. The OWNER reserves the right to reject any BID if the
evidence submitted by, or investigation of, such BIDDER fails to satisfy
the OWNER that such BIDDER is properly qualified to carry out the
obligations of the Agreement and to complete the WORK contemplated
therein.

A conditional or qualified BID will not be accepted.

Award will be made to the lowest responsible BIDDER.

All applicable laws, ordinances, and the rules and regulations of all
authorities having jurisdiction over construction of the PROJECT shall
apply to the contract throughout.

Each BIDDER is responsible for inspecting the site and for reading and
being thoroughly familiar with the CONTRACT DOCUMENTS. The failure or
omission of any BIDDER to do any of the foregoing shall in no way
relieve any BIDDER from any obligation in respect to its BID.

Further, the BIDDER agrees to abide by the requirements under Executive
Order No. 11246, as amended, including specifically the provisions of
the equal opportunity clause set forth in the SUPPLEMENTAL GENERAL
CONDITIONS.

The low BIDDER shall supply the names and addresses of major material
SUPPLIERS and SUBCONTRACTORS when required to do so by the OWNER.

Inspection trips for prospective BIDDERS will leave from the office of
the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

The ENGINEER IS
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
The ENGINEER\'S

address is
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

(1-15-79) SPECIAL PN

(Guide 19 - Attachment 3) RD Instruction 1942-A

## BID

Proposal of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(hereinafter called \"BIDDER\"), organized and existing under the laws
of the State of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ doing business as
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\*.
To the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(hereinafter called \"OWNER\").

In compliance with your Advertisement for Bids, BIDDER hereby proposes
to perform all WORK for the construction of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
in strict accordance with the CONTRACT DOCUMENTS, within the time set
forth therein, and at the prices stated below.

By submission of this BID, each BIDDER certifies, and in the case of a
joint BID each party thereto certifies as to its own organization, that
this BID has been arrived at independently, without consultation,
communication, or agreement as to any matter relating to this BID with
any other BIDDER or with any competitor.

BIDDER hereby agrees to commence WORK under this contract on or before a
date to be specified in the NOTICE TO PROCEED and to fully complete the
PROJECT within \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ consecutive
calendar days thereafter. BIDDER further agrees to pay as liquidated
damages, the sum of \$\_\_\_\_\_\_\_\_ for each consecutive calendar day
thereafter as provided in Section 15 of the General Conditions.

(1-15-79) SPECIAL PN

RD Instruction 1942-A

(Guide 19 - Attachment 3) (Page 2)

BIDDER acknowledges receipt of the following ADDENDUM:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\* Insert \"a corporation\", \"a partnership\", or \"an individual\" as
applicable.

BIDDER agrees to perform all the work described in the CONTRACT
DOCUMENTS for the following unit prices or lump sum:

BID SCHEDULE

NOTE: BIDS shall include sales tax and all other applicable taxes and

fees.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[NO.\_\_\_\_\_\_\_ITEM\_\_\_\_\_\_\_\_\_\_\_UNIT\_\_\_\_\_UNIT
PRICE\_\_\_\_\_\_\_AMOUNT\_\_\_\_\_\_TOTAL PRICE]{.underline}

(Guide 19 - Attachment 3) (Page 3) RD Instruction 1942-A

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[NO.\_\_\_\_\_\_ITEM\_\_\_\_\_\_\_\_\_\_\_UNIT\_\_\_\_\_\_\_\_\_UNIT
PRICE\_\_\_\_\_AMOUNT\_\_\_\_\_TOTAL PRICE]{.underline}

TOTAL OF BID . . . . . . . . . . . . . . . . . . . . . . . . .
\$\_\_\_\_\_\_\_\_\_

LUMP SUM PRICE (if applicable) . . . . . . . . . . . . . . . .
\$\_\_\_\_\_\_\_\_\_

Respectfully submitted:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature Address

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title Date

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

License number (if applicable)

SEAL - (if BID is by a corporation)

(1-15-79) SPECIAL PN

RD Instruction 1942-A

(Guide 19 - Attachment 4) BID BOND

KNOW ALL MEN BY THESE PRESENTS, that we, the
undersigned,\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
as Principal, and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
as Surety, are hereby held and firmly bound unto
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ as OWNER in the
penal sum of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
for the payment of which, well and truly to be made, we hereby jointly
and severally bind ourselves, successors and assigns.

Signed, this \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_\_\_\_\_\_. The
Condition of the above obligation is such that whereas the Principal has
submitted to
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
a certain BID, attached hereto and hereby made a part hereof to enter
into a contract in writing, for the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

NOW, THEREFORE,

\(a\) If said BID shall be rejected, or

\(b\) If said BID shall be accepted and the Principal shall execute

> and deliver a contract in the Form of Contract attachment hereto
> (Properly completed in accordance with said BID) and shall furnish a
> BOND for faithful performance of said contract, and for the payment of
> all persons performing labor furnishing materials in connection
> therewith, and shall in all other respects perform the agreement
> created by the acceptance of said BID, then this obligation shall be
> void, otherwise the same shall remain in force and effect; it being
> expressly understood and agreed that the liability of the Surety for
> any and all claims hereunder shall, in no event, exceed the penal
> amount of this obligation as herein stated.

(1-15-79) SPECIAL PN

(Guide 19 - Attachment 4) (Page 2) RD Instruction 1942-A

The Surety, for value received, hereby stipulates and agrees that the
obligations of said Surety and its BOND shall be in no way impaired or
affected by any extension of the time within which the OWNER may accept
such BID; and said Surety does hereby waive notice of any such
extension.

IN WITNESS WHEREOF, the Principal and the Surety have hereunto set their
hands and seals, and such of them as are corporations have caused their
corporate seals to be hereto affixed and these presents to be signed by
their proper officers, the day and year first set forth above.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(L.S.)

Principal

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Surety

By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

IMPORTANT - Surety companies executing BONDS must appear on the Treasury
Department\'s most current list (Circular 570 as amended) and be
authorized to transact business in the state where the project is
located.

## oOo 

RD Instruction 1942-A

(Guide 19 - Attachment 5)

## PERFORMANCE BOND

KNOW ALL PERSONS BY THESE PRESENTS: that

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Name of Contractor)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address of Contractor)

a
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
hereinafter called Principal, and

(Corporation, Partnership, or Individual)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Name of Surety)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address of Surety)

hereinafter called Surety, are held and firmly bound unto
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Name of Owner)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address of Owner)

hereinafter called OWNER, and the United States of America acting
through Rural Development hereinafter referred to as the Government in
the total aggregate penal sum of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Dollars (\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_)

in lawful money of the United States, for the payment of which sum well
and truly to be made, we bind ourselves, our heirs, executors,
administrators, successors, and assigns, jointly and severally, firmly
by these presents.

THE CONDITION OF THIS OBLIGATION is such that whereas, the Principal
entered into a certain contract with the OWNER, dated the
\_\_\_\_\_\_\_\_\_\_ day of \_\_\_\_\_ 19\_\_\_, a copy of which is
hereto attached and made a part hereof for the construction of:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(5-23-79) PN 675

RD Instruction 1942-A

(Guide 19 - Attachment 5) (Page 2)

NOW, THEREFORE, if the Principal shall well, truly and faithfully
perform its duties, all the undertakings, covenants, terms, conditions,
and agreements of said contract during the original term thereof, and
any extensions thereof which may be granted by the OWNER, or GOVERNMENT,
with or without notice to the SURETY and during the one year guaranty
period and if the PRINCIPAL shall satisfy all claims and demands
incurred under such contract, and shall fully indemnify and save
harmless the OWNER and GOVERNMENT from all costs and damages which it
may suffer by reason of failure to do so, and shall reimburse and repay
the OWNER and GOVERNMENT all outlay and expense which the OWNER and
GOVERNMENT may incur in making good any default, then this obligation
shall be void, otherwise to remain in full force and effect.

PROVIDED, FURTHER, 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.

PROVIDED, FURTHER, that the said SURETY, for value received hereby
stipulates and agrees that no change, extension of time, alteration or
addition to the terms of the contract or to WORK to be performed
thereunder or the SPECIFICATIONS accompanying same shall in any way
affect its obligation on this BOND, and it does hereby waive notice of
any such change, extension of time, alteration or addition to the terms
of the contract or to the WORK or to the SPECIFICATIONS.

PROVIDED, FURTHER, that it is expressly agreed that the BOND shall be
deemed amended automatically and immediately, without formal and
separate amendments hereto, upon amendment to the Contract not
increasing the contract price more than 20 percent, so as to bind the
PRINCIPAL and the SURETY to the full and faithful performance of the
CONTRACT as so amended. The term \"Amendment\", wherever used in this
BOND, and whether referring to this BOND, the Contract or the Loan
Documents shall include any alteration, addition, extension, or
modification of any character whatsoever.

PROVIDED, FURTHER, that no final settlement between the OWNER or
GOVERNMENT and the PRINCIPAL shall abridge the right of the other
beneficiary hereunder, whose claim may be unsatisfied. The OWNER and
GOVERNMENT are the only beneficiaries hereunder.

RD Instruction 1942-A

(Guide 19 Attachment 5) (Page 3)

IN WITNESS WHEREOF, this instrument is executed in \_\_\_\_\_\_\_\_
counterparts, each

Number

one of which shall be deemed an original, this the \_\_\_\_\_\_\_\_\_\_
day of \_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ .

ATTEST:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Principal

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Principal) Secretary

(SEAL)

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(s)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Witness as to Principal) (Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Surety

ATTEST:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
BY\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Witness to Surety Attorney-in-Fact

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address) (Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

NOTE: Date of BOND must not be prior to date of Contract.

If CONTRACTOR is partnership, all partners should execute BOND.
IMPORTANT: Surety companies executing BONDS must appear on the Treasury
Department\'s most current list (Circular 570 as amended) and be
authorized to transact business in the state where the Project is
located.

## oOo

(5-23-79) PN 675

RD Instruction 1942-A

(Guide 19 - Attachment 6)

## PAYMENT BOND

KNOW ALL PERSONS BY THESE PRESENTS: that

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Name of Contractor)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address of Contractor)

a
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
hereinafter called PRINCIPAL and

(Corporation, Partnership or Individual)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Name of Surety)

hereinafter called SURETY, are held and firmly bound unto
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Name of Owner)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address of Owner)

hereinafter called OWNER and the United States of America acting through
Rural Development hereinafter referred to as GOVERNMENT, and unto all
persons, firms, and corporations who or which may furnish labor, or who
furnish materials to perform as described under the contract and to
their successors and assigns in the total aggregate penal sum of
\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Dollars (\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_)

in lawful money of the United States, for the payment of which sum well
and truly to be made, we bind ourselves, our heirs, executors,
administrators, successors, and assigns, jointly and severally, firmly
by these presents.

THE CONDITION OF THIS OBLIGATION is such that whereas, the PRINCIPAL
entered into a certain contract with the OWNER, dated the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ day of \_\_\_\_\_\_\_19\_\_\_, a copy
of which is hereto attached and made a part hereof for the construction
of:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

NOW, THEREFORE, if the PRINCIPAL shall promptly make payment to all
persons, firms, and corporations furnishing materials for or performing
labor in the prosecution of the WORK provided for in such contract, and
any authorized extensions or modification thereof, including all amounts
due for materials, lubricants, oil, gasoline, coal and coke, repairs on
machinery, equipment and tools, consumed or used in connection with the
construction of such WORK, and for all labor cost incurred in such WORK
including that by a SUBCONTRACTOR, and to any mechanic or materialman
lienholder whether it acquires its lien by operation of State or Federal
law; then this obligation shall be void, otherwise to remain in full
force and effect.

(1-15-79) SPECIAL PN

RD Instruction 1942-A

(Guide 19 - Attachment 6) (Page 2)

PROVIDED, that beneficiaries or claimants hereunder shall be limited to
the SUBCONTRACTORS, and persons, firms, and corporations having a direct
contract with the PRINCIPAL or its SUBCONTRACTORS.

PROVIDED, FURTHER, that the said SURETY for value received hereby
stipulates and agrees that no change, extension of time, alteration or
addition to the terms of the contract or to the WORK to be performed
thereunder or the SPECIFICATIONS accompanying the same shall in any way
affect its obligation on this BOND, and it does hereby waive notice of
any such change, extension of time, alteration or addition to the terms
of this contract or to the WORK or to the SPECIFICATIONS.

PROVIDE, FURTHER, that no suit or action shall be commenced hereunder by
any claimant: (a) Unless claimant, other than one having a direct
contract with the PRINCIPAL (or with the GOVERNMENT in the event the
GOVERNMENT Is performing the obligations of the OWNER), shall have given
written notice to any two of the following: The PRINCIPAL, the OWNER, or
the SURETY above named within ninety (90) days after such claimant did
or performed the last of the work or labor, or furnished the last of the
materials for which said claim is made, stating with substantial
accuracy the amount claimed and the name of the party to whom the
materials were furnished, or for whom the work or labor was done or
performed. Such notice shall be served by mailing the same by registered
mail or certified mail, postage prepaid, in an envelope addressed to the
PRINCIPAL, OWNER, or SURETY, at any place where an office is regularly
maintained for the transaction of business, or served in any manner in
which legal process may be served in the state in which the aforesaid
project is located, save that such service need not be made by a public
officer. (b) After the expiration of one (1) year following the date of
which PRINCIPAL ceased work on said CONTRACT, is 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 be equal to the minimum period of
limitation permitted by such law.

PROVIDED, FURTHER, that it is expressly agreed that this BOND shall be
deemed amended automatically and immediately, without formal and
separate amendments hereto, upon amendment to the Contract not
increasing the contract price more than 20 percent, so as to bind the
PRINCIPAL and the SURETY to the full and faithful performance of the
Contract as so amended. The term \"Amendment\", wherever used in this
BOND and whether referring to this BOND, the contract or the loan
Documents shall include any alteration, addition, extension or
modification of any character whatsoever.

PROVIDED, FURTHER, that no final settlement between the OWNER or
GOVERNMENT and the CONTRACTOR shall abridge the right of any beneficiary
hereunder, whose claim may be unsatisfied.

RD Instruction 1942-A

(Guide 19 - Attachment 6) (Page 3)

WITNESS WHEREOF, this instrument is executed in \_\_\_\_ counterparts,
each of

Number

which shall be deemed an original, this the \_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

ATTEST:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Principal

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Principal) Secretary

(SEAL)

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(s)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Witness as to Principal

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Surety

ATTEST:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Witness as to Surety Attorney-in-Fact

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Address) (Address

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

NOTE: Date of BOND must not be prior to date of Contract.

If CONTRACTOR Is partnership, all partners should execute BOND.

IMPORTANT: Surety companies executing BONDS must appear on the Treasury
Department\'s most current list (Circular 570 as amended) and be
authorized to transact business in the State where the Project is
located.

## oOo

(1-15-79) SPECIAL PN

RD Instruction 1942-A

(Guide 19 - Attachment 7)

NOTICE OF AWARD

TO:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

PROJECT
Description:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

The OWNER has considered the BID submitted by you for the above
described WORK in response to its Advertisement for Bids dated
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_\_, and Information for
Bidders.

You are hereby notified that your BID has been accepted for items in the
amount of \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

You are required by the Information for Bidders to execute the Agreement
and furnish the required CONTRACTOR\'S Performance BOND, Payment BOND
and certificates of insurance within ten (10) calendar days from the
date of this Notice to you.

If you fail to execute said Agreement and to furnish said BONDS within
ten (10) days from the date of this Notice, said OWNER will be entitled
to consider all your rights arising out of the OWNER\'s acceptance of
your BID as abandoned and as a forfeiture of your BID BOND. The OWNER
will be entitled to such other rights as may be granted by law.

You are required to return an acknowledged copy of this NOTICE OF AWARD
to the OWNER.

Dated this\_\_\_\_\_\_\_\_\_\_\_\_ day of\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
19\_\_\_\_.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Owner

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ACCEPTANCE OF NOTICE

Receipt of the above NOTICE OF AWARD is hereby acknowledged

by\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
this the\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ day
of\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_\_\_\_\_\_\_\_.
By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(1-15-79) SPECIAL PN

(Guide 19 - Attachment 8) RD Instruction 1942-A

## NOTICE TO PROCEED

TO: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ DATE:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Project:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

You are hereby notified to commence WORK in accordance with the
Agreement dated \_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_, on or before
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_, and you are to complete the
WORK within \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ consecutive calendar
days thereafter. The date of completion of all WORK is therefore
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Owner

By \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ACCEPTANCE OF NOTICE

Receipt of the above NOTICE TO PROCEED is hereby acknowledged by
\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

this the\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Employer Identification

Number\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## oOo

(1-28-81) PN 763

RD Instruction 1942-A

(Guide 19 - Attachment 9)

## GENERAL CONDITIONS

1\. Definitions 17. Subsurface Conditions

2\. Additional Instructions and Detail 18. Suspension of Work,

Drawings Termination, and Delay

3\. Schedules, Reports, and Records 19. Payments to Contractor

4\. Drawings and Specifications 20. Acceptance of Final

5\. Shop Drawings Payment as Release

6\. Materials, Services, and Facilities 21. Insurance

7\. Inspection and Testing 22. Contract Security

8\. Substitutions 23. Assignments

9\. Patents 24. Indemnification

10\. Surveys, Permits, Regulations 25. Separate Contracts

11\. Protection of Work, Property, Persons 26. Subcontracting

12\. Supervision by Contractor 27. Engineer\'s Authority

13\. Changes in the Work 28. land and Rights-of-Way

14\. Changes in Contract Price 29. Guaranty

15\. Time for Completion and Liquidated 30. Arbitration

Damages 31. Taxes

16\. Correction of Work

1\. DEFINITIONS

1.1 Wherever used in the CONTRACT DOCUMENTS, the following terms shall
have the meanings indicated and shall be applicable to both the singular
and plural thereof:

1.2 ADDENDA - Written or graphic instruments issued prior to the
execution of the Agreement which modify or interpret the CONTRACT
DOCUMENTS, DRAWINGS and SPECIFICATIONS, by additions, deletions,
clarifications, or corrections.

1.3 BID - The offer or proposal of the BIDDER submitted on the
prescribed form setting forth the prices for the WORK to be performed.

1.4 BIDDER - Any person, firm, or corporation submitting a BID for the
WORK.

1.5 BONDS - Bid, Performance, and Payment Bonds and other instruments of
surety, furnished by the CONTRACTOR and the CONTRACTOR\'S surety in
accordance with the CONTRACT DOCUMENTS.

1.6 CHANGE ORDER - A written order to the CONTRACTOR authorizing an
addition, deletion, or revision in the WORK within the general scope of
the CONTRACT DOCUMENTS, or authorizing an adjustment in the CONTRACT
PRICE or CONTRACT TIME.

1.7 CONTRACT DOCUMENTS - The contract, including Advertisement For BIDS,
Information For BIDDERS, BID, BID BOND, Agreement, Payment BOND,
Performance BOND, NOTICE OF AWARD, NOTICE TO PROCEED, CHANGE ORDER,
DRAWINGS, SPECIFICATIONS, and ADDENDA.

(1-15-79) SPECIAL PN

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 2)

1.8 CONTRACT PRICE - The total monies payable to the CONTRACTOR under
the terms and conditions of the CONTRACT DOCUMENTS.

1.9 CONTRACT TIME - The number of calendar days stated in the CONTRACT
DOCUMENTS for the completion of the WORK.

1.10 CONTRACTOR - The person, firm, or corporation with whom the OWNER
has executed the Agreement.

1.11 DRAWINGS - The parts of the CONTRACT DOCUMENTS which show the
characteristics and scope of the WORK to be performed and which have
been prepared or approved by the ENGINEER.

1.12 ENGINEER - The person, firm, or corporation named as such in the
CONTRACT DOCUMENTS.

1.13 FIELD ORDER - A written order effecting a change in the WORK not
involving an adjustment in the CONTRACT PRICE or an extension of the
CONTRACT TIME, issued by the ENGINEER to the CONTRACTOR during
construction.

1.14 NOTICE OF AWARD - The written notice of the acceptance of the BID
from the OWNER to the successful BIDDER.

1.15 NOTICE TO PROCEED - Written communication issued by the OWNER to
the CONTRACTOR authorizing him/her to proceed with the WORK and
establishing the date for commencement of the WORK.

1.16 OWNER - A public or quasi-public body or authority, corporation,
association, partnership, or an individual for whom the WORK is to be
performed.

1.17 PROJECT - The undertaking to be performed as provided in the
CONTRACT DOCUMENTS.

1.18 RESIDENT PROJECT REPRESENTATIVE - The authorized representative of
the OWNER who is assigned to the PROJECT site or any part thereof.

1.19 SHOP DRAWINGS - All drawings, diagrams, illustrations, brochures,
schedules and other data which are prepared by the CONTRACTOR, a
SUBCONTRACTOR, manufacturer, SUPPLIER or distributor, which illustrate
how specific portions of the WORK shall be fabricated or installed.

1.20 SPECIFICATIONS - A part of the CONTRACT DOCUMENTS consisting of
written descriptions of a technical nature of materials, equipment,
construction systems, standards and workmanship.

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 3)

1.21 SUBCONTRACTOR - An individual, firm, or corporation having a direct
contract with CONTRACTOR or with any other SUBCONTRACTOR for the
performance of a part of the WORK at the site.

1.22 SUBSTANTIAL COMPLETION - That date certified by the ENGINEER when
the construction of the PROJECT or a specified part thereof is
sufficiently completed, in accordance with the CONTRACT DOCUMENTS, so
that the PROJECT or specified part can be utilized for the purposes for
which it is intended.

1.23 SUPPLEMENTAL GENERAL CONDITIONS - Modifications to General
Conditions required by a Federal agency for participation in the PROJECT
and approved by the agency in writing prior to inclusion in the CONTRACT
DOCUMENTS, or such requirements that may be imposed by applicable state
laws.

1.24 SUPPLIER - Any person or organization who supplies materials or
equipment for the WORK, including that fabricated to a special design,
but who does not perform labor at the site.

1.25 WORK - All labor necessary to produce the construction required by
the CONTRACT DOCUMENTS, and all materials and equipment incorporated or
to be incorporated in the PROJECT.

1.26 WRITTEN NOTICE - Any notice to any party of the Agreement relative
to any 1 part of this Agreement in writing and considered delivered and
the service thereof completed, when posted by certified or registered
mail to the said party at their last given address, or delivered in
person to said party or their authorized representative on the WORK.

2\. ADDITIONAL INSTRUCTIONS AND DETAIL DRAWINGS

2.1 The CONTRACTOR may be furnished additional instructions and detail
drawings, by the ENGINEER, as necessary to carry out the WORK required
by the CONTRACT DOCUMENTS.

2.2 The additional drawings and instructions thus supplied will become a
part of the CONTRACT DOCUMENTS. The CONTRACTOR shall carry out the WORK
in accordance with the additional detail drawings and instructions.

3\. SCHEDULES, REPORTS AND RECORDS

3.1 The CONTRACTOR shall submit to the OWNER such schedule of quantities
and costs, progress schedules, payrolls, reports, estimates, records and
other data where applicable as are required by the CONTRACT DOCUMENTS
for the WORK to be performed.

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RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 4)

3.2 Prior to the first partial payment estimate the CONTRACTOR shall
submit construction progress schedules showing the order in which the
CONTRACTOR proposes to carry on the WORK, including dates at which the
various parts of the WORK will be started, estimated date of completion
of each part and, as applicable:

3.2.1 The dates at which special detail drawings will be required; and

3.2.2 Respective dates for submission of SHOP DRAWINGS, the beginning of
manufacture, the testing and the installation of materials, supplies and
equipment.

3.3 The CONTRACTOR shall also submit a schedule of payments that the
CONTRACTOR anticipates will be earned during the course of the WORK.

4\. DRAWINGS AND SPECIFICATIONS

4.1 The intent of the DRAWINGS and SPECIFICATIONS is that the CONTRACTOR
shall furnish all labor, materials, tools, equipment, and transportation
necessary for the proper execution of the WORK in accordance with the
CONTRACT DOCUMENTS and all incidental work necessary to complete the
PROJECT in an acceptable manner, ready for use, occupancy or operation
by the OWNER.

4.2 In case of conflict between the DRAWINGS and SPECIFICATIONS, the
SPECIFICATIONS shall govern. Figure dimensions on DRAWINGS shall govern
over general DRAWINGS.

4.3 Any discrepancies found between the DRAWINGS and SPECIFICATIONS and
site conditions or any inconsistencies or ambiguities in the DRAWINGS or
SPECIFICATIONS shall be immediately reported to the ENGINEER, in
writing, who shall promptly correct such inconsistencies or ambiguities
in writing. WORK done by the CONTRACTOR after discovery of such
discrepancies, inconsistencies or ambiguities shall be done at the
CONTRACTOR\'S risk.

5\. SHOP DRAWINGS

5.1 The CONTRACTOR shall provide SHOP DRAWINGS as may be necessary for
the prosecution of the WORK as required by the CONTRACT DOCUMENTS. The
ENGINEER shall promptly review all SHOP DRAWINGS. The ENGINEER\'S
approval of any SHOP DRAWING shall not release the CONTRACTOR from
responsibility for deviations from the CONTRACT DOCUMENTS. The approval
of any SHOP DRAWING which substantially deviates from the requirement of
the CONTRACT DOCUMENTS shall be evidenced by a CHANGE ORDER.

5.2 When submitted for the ENGINEER\'S review, SHOP DRAWINGS shall bear
the CONTRACTOR\'S certification that he has reviewed, checked and
approved the SHOP DRAWINGS and that they are in conformance with the
requirements of the CONTRACT DOCUMENTS.

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 5)

5.3 Portions of the WORK requiring a SHOP DRAWING or sample submission
shall not begin until the SHOP DRAWING or submission has been approved
by the ENGINEER. A copy of each approved SHOP DRAWING and each approved
sample shall be kept in good order by the CONTRACTOR at the site and
shall be available to the ENGINEER.

6\. MATERIALS, SERVICES AND FACILITIES

6.1 It is understood that, except as otherwise specifically stated in
the CONTRACT DOCUMENTS, the CONTRACTOR shall provide and pay for all
materials, labor, tools, equipment, water, light, power, transportation,
supervision, temporary construction of any nature, and all other
services and facilities of any nature whatsoever necessary to execute,
complete, and deliver the WORK within the specified time.

6.2 Materials and equipment shall be so stored as to insure the
preservation of their quality and fitness for the WORK. Stored materials
and equipment to be incorporated in the WORK shall be located so as to
facilitate prompt inspection.

6.3 Manufactured articles, materials, and equipment shall be applied,
installed, connected, erected, used, cleaned and conditioned as directed
by the manufacturer.

6.4 Materials, supplies, and equipment shall be in accordance with
samples submitted by the CONTRACTOR and approved by the ENGINEER.

6.5 Materials, supplies, or equipment to be incorporated into the WORK
shall not be purchased by the CONTRACTOR or the SUBCONTRACTOR subject to
a chattel mortgage or under a conditional sale contract or other
agreement by which an interest is retained by the seller.

7\. INSPECTION AND TESTING

7.1 All materials and equipment used in the construction of the PROJECT
shall be subject to adequate inspection and testing in accordance with
generally accepted standards, as required and defined in the CONTRACT
DOCUMENTS.

7.2 The OWNER shall provide all inspection and testing services not
required by the CONTRACT DOCUMENTS.

7.3 The CONTRACTOR shall provide at the CONTRACTOR\'S expense the
testing and inspection services required by the CONTRACT DOCUMENTS.

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RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 6)

7.4 If the CONTRACT DOCUMENTS, laws, ordinances, rules, regulations or
orders of any public authority having jurisdiction require any WORK to
specifically be inspected, tested, or approved by someone other than the
CONTRACTOR, the CONTRACTOR will give the ENGINEER timely notice of
readiness. The CONTRACTOR will then furnish the ENGINEER the required
certificates of inspection, testing or approval.

7.5 Inspections, tests, or approvals by the engineer or others shall not
relieve the CONTRACTOR from the obligations to perform the WORK in
accordance with the requirements of the CONTRACT DOCUMENTS.

7.6 The ENGINEER and the ENGINEER\'S representatives will at all times
have access to the WORK. In addition, authorized representatives and
agents of any participating Federal or State agency shall be permitted
to inspect all work, materials, payrolls, records or personnel, invoices
of materials, and other relevant data and records. The CONTRACTOR will
provide proper facilities for such access and observation of the WORK
and also for any inspection or testing thereof.

7.7 If any WORK is covered contrary to the written instructions of the
ENGINEER it must, if requested by the ENGINEER, be uncovered for the
ENGINEER\'S observation and replaced at the CONTRACTOR\'S expense.

7.8 If the ENGINEER considers it necessary or advisable that covered
WORK be inspected or tested by others, the CONTRACTOR, at the
ENGINEER\'S request, will uncover, expose or otherwise make available
for observation, inspection or testing as the ENGINEER may require, that
portion of the WORK in question, furnishing all necessary labor,
materials, tools, and equipment. If it is found that such WORK is
defective, the CONTRACTOR will bear all the expenses of such uncovering,
exposure, observation, inspection and testing and of satisfactory
reconstruction, if, however, such WORK is not found to be defective, the
CONTRACTOR will be allowed an increase in the CONTRACT PRICE or an
extension of the CONTRACT TIME, or both, directly attributable to such
uncovering, exposure, observation, inspection, testing and
reconstruction and an appropriate CHANGE ORDER shall be issued.

8\. SUBSTITUTIONS

8.1 Whenever a material, article, or piece of equipment is identified on
the DRAWINGS or SPECIFICATIONS by reference to brand name or catalogue
numbers, it shall be understood that this is referenced for the purpose
of defining the performance or other salient requirements and that other
products of equal capacities, quality and function shall be considered.
The CONTRACTOR may recommend the substitution of a material, article, or
piece of equipment of equal substance and function for those referred to
in the CONTRACT DOCUMENTS

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 7)

by reference to brand name or catalogue number, and if, in the opinion
of the ENGINEER, such material, article, or piece of equipment is of
equal substance and function to that specified, the ENGINEER may approve
its substitution and use by the CONTRACTOR. Any cost differential shall
be deductible from the CONTRACT PRICE and the CONTRACT DOCUMENTS shall
be appropriately modified by CHANGE ORDER. The CONTRACTOR warrants that
if substitutes are approved, no major changes in the function or general
design of the PROJECT will result. Incidental changes or extra component
parts required to accommodate the substitute will be made by the
CONTRACTOR without a change in the CONTRACT PRICE or CONTRACT TIME.

9\. PATENTS

9.1 The CONTRACTOR shall pay all applicable royalties and license fees,
and shall defend all suits or claims for infringement of any patent
rights and save the OWNER harmless from loss on account thereof, except
that the OWNER shall be responsible for any such loss when a particular
process, design, or product of a particular manufacturer or
manufacturers is specified, however, if the CONTRACTOR has reason to
believe that the design, process or product specified is an infringement
of a patent, the CONTRACTOR shall be responsible for such loss unless
the CONTRACTOR promptly gives such information to the ENGINEER.

10\. SURVEYS, PERMITS, REGULATIONS

10.1 The OWNER shall furnish all boundary surveys and establish all base
lines for locating the principal component parts of the WORK together
with a suitable number of bench marks adjacent to the WORK as shown in
the CONTRACT DOCUMENTS. From the information provided by the OWNER,
unless otherwise specified in the CONTRACT DOCUMENTS, the CONTRACTOR
shall develop and make all detail surveys needed for construction such
as slope stakes, batter boards, stakes for pipe locations and other
working points, lines, elevations and cut sheets.

10.2 The CONTRACTOR shall carefully preserve bench marks, reference
points and stakes and, in case of willful or careless destruction, shall
be charged with the resulting expense and shall be responsible for any
mistake that may be caused by their unnecessary loss or disturbance.

10.3 Permits and licenses of a temporary nature necessary for the
prosecution of the WORK shall be secured and paid for by the CONTRACTOR
unless otherwise stated in the SUPPLEMENTAL GENERAL CONDITIONS. Permits,
licenses and easements for permanent structures or permanent changes in
existing facilities shall be secured and paid for by the OWNER, unless
otherwise specified. The

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RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 8)

CONTRACTOR shall give all notices and comply with all laws, ordinances,
rules and regulations bearing on the conduct of the WORK as drawn and
specified. If the CONTRACTOR observes that the CONTRACT DOCUMENTS are at
variance therewith, the CONTRACTOR shall promptly notify the ENGINEER in
writing, and any necessary changes shall be adjusted as provided in
Section 13, CHANGES IN THE WORK.

11\. PROTECTION OF WORK, PROPERTY, AND PERSONS

11.1 The CONTRACTOR will be responsible for initiating, maintaining and
supervising all safety precautions and programs in connection with the
WORK. The CONTRACTOR will take all necessary precautions for the safety
of, will provide the necessary precautions for the safety of, and will
provide the necessary protection to prevent damage, injury or loss to
all employees on the WORK and other persons who may be affected thereby,
all the WORK and all materials or equipment to be incorporated therein,
whether in storage on or off the site, and other property at the site or
adjacent thereto, including trees, shrubs, lawns, walks, pavements,
roadways, structures and utilities not designated for removal,
relocation or replacement in the course of construction.

11.2 The CONTRACTOR will comply with all applicable laws, ordinances,
rules, regulations and orders of any public body having jurisdiction.
The CONTRACTOR will erect and maintain, as required by the conditions
and progress of the WORK, all necessary safeguards for safety and
protection. The CONTRACTOR will notify owners of adjacent utilities when
prosecution of the WORK may affect them. The CONTRACTOR will remedy all
damage, injury or loss to any property caused, directly or indirectly,
in whole or part, by the CONTRACTOR, any SUBCONTRACTOR or anyone
directly or indirectly employed by any of them or anyone directly or
indirectly employed by any of them or anyone of whose acts any of them
be liable, except damage or loss attributable to the fault of the
CONTRACT DOCUMENTS or to the acts or omissions of the OWNER, of the
ENGINEER or anyone employed by either of them or anyone for whose acts
either of them may be liable, and not attributable, directly or
indirectly, in whole or in part, to the fault or negligence of the
CONTRACTOR.

11.3 In emergencies affecting the safety of persons or the WORK or
property at the site or adjacent thereto, the CONTRACTOR, without
special instructions or authorization from the ENGINEER or OWNER, shall
act to prevent threatened damage, injury or loss. The CONTRACTOR will
give the ENGINEER prompt WRITTEN NOTICE of any significant changes in
the WORK or deviations from the CONTRACT DOCUMENTS caused thereby, and a
CHANGE ORDER shall thereupon be issued covering the changes and
deviations involved.

12\. SUPERVISION BY CONTRACTOR

12.1 The CONTRACTOR will supervise and direct the WORK. He will be
solely responsible for the means, methods, techniques, sequences and
procedures of

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 9)

construction. The CONTRACTOR will employ and maintain on the WORK a
qualified supervisor or superintendent who shall have been designated in
writing by the CONTRACTOR as the CONTRACTOR\'S representative at the
site. The supervisor shall have full authority to act on behalf of the
CONTRACTOR and all communications given to the supervisor shall be as
binding as if given to the CONTRACTOR. The supervisor shall be present
on the site at all times as required to perform adequate supervision and
coordination of the WORK.

13\. CHANGES IN THE WORK

13.1 The OWNER may at any time, as the need arises, order changes within
the scope of the WORK without invalidating the Agreement. If such
changes increase or decrease the amount due under the CONTRACT
DOCUMENTS, or in the time required for performance of the WORK, an
equitable adjustment shall be authorized by CHANGE ORDER.

13.2 The ENGINEER, also, may at any time, by issuing a FIELD ORDER, make
changes in the details of the WORK. The CONTRACTOR shall proceed with
the performance of any changes in the WORK so ordered by the ENGINEER
unless the CONTRACTOR believes that such FIELD ORDER entitles the
CONTRACTOR to a change in CONTRACT PRICE or TIME, or both, in which
event the CONTRACTOR shall give the ENGINEER WRITTEN NOTICE thereof
within seven (7) days after the receipt of the ordered change.
Thereafter the CONTRACTOR shall document the basis for the change in
CONTRACT PRICE or TIME within thirty (30) days. The CONTRACTOR shall not
execute such changes pending the receipt of an executed CHANGE ORDER or
further instruction from the OWNER.

14\. CHANGES IN CONTRACT PRICE

14.1 The CONTRACT PRICE may be changed only by a CHANGE ORDER. The value
of any WORK covered by a CHANGE ORDER or of any claim for increase or
decrease in the CONTRACT PRICE shall be determined by one or more of the
following methods in the order of precedence listed below:

a\. Unit prices previously approved.

b\. An agreed lump sum.

15\. TIME FOR COMPLETION AND LIQUIDATED DAMAGES

15.1 The date of beginning and the time for completion of the WORK are
essential conditions of the CONTRACT DOCUMENTS and the WORK embraced
shall be commenced

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RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 10)

on a date specified in the NOTICE TO PROCEED.

15.2 The CONTRACTOR will proceed with the WORK at such rate of progress
to insure full completion within the CONTRACT TIME. It is expressly
understood and agreed, by and between the CONTRACTOR and the OWNER, that
the CONTRACT TIME for the completion of the WORK described herein is a
reasonable time, taking into consideration the average climatic and
economic conditions and other factors prevailing in the locality of the
WORK.

15.3 If the CONTRACTOR shall fail to complete the WORK within the
CONTRACT TIME, or extension of time granted by the OWNER, then the
CONTRACTOR will pay to the OWNER the amount for liquidated damages as
specified in the BID for each calendar day that the CONTRACTOR shall be
in default after the time stipulated in the CONTRACT DOCUMENTS.

15.4 The CONTRACTOR shall not be charged with liquidated damages or any
excess cost when the delay in completion of the WORK is due to the
following and the CONTRACTOR has promptly given WRITTEN NOTICE of such
delay to the OWNER or ENGINEER.

15.4.1 To any preference, priority or allocation order duly issued by
the OWNER.

15.4.2 To unforeseeable causes beyond the control and without the fault
or negligence of the CONTRACTOR, including but not restricted to, acts
of God, or of the public enemy, acts of the OWNER, acts of another
CONTRACTOR in the performance of a contract with the OWNER, fires,
floods, epidemics, quarantine restrictions, strikes, freight embargoes,
and abnormal and unforeseeable weather; and

15.4.3 To any delays of SUBCONTRACTORS occasioned by any of the causes
specified in paragraphs 15.4.1 and 15.4.2 of this article.

16\. CORRECTION OF WORK

16.1 The CONTRACTOR shall promptly remove from the premises all WORK
rejected by the ENGINEER for failure to comply with the CONTRACT
DOCUMENTS, whether incorporated in the construction or not, and the
CONTRACTOR shall promptly replace and reexecute the WORK in accordance
with the CONTRACT DOCUMENTS and without expense to the OWNER and shall
bear the expense of making good all WORK of other CONTRACTORS destroyed
or damaged by such removal or replacement.

16.2 All removal and replacement WORK shall be done at the CONTRACTOR\'S
expense. If the CONTRACTOR does not take action to remove such rejected
WORK within ten (10) days after receipt of WRITTEN NOTICE, the OWNER may
remove such

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 11)

WORK and store the materials at the expense of the CONTRACTOR.

17\. SUBSURFACE CONDITIONS

17.1 The CONTRACTOR shall promptly, and before such conditions are
disturbed, except in the event of an emergency, notify the OWNER by
WRITTEN NOTICE of:

17.1.1 Subsurface or latent physical conditions at the site differing
materially from those indicated in the CONTRACT DOCUMENTS; or

17.1.2 Unknown physical conditions at the site, of an unusual nature,
differing materially from those ordinarily encountered and generally
recognized as inherent in WORK of the character provided for in the
CONTRACT DOCUMENTS.

17.2 The OWNER shall promptly investigate the conditions, and if it is
found that such conditions do so materially differ and cause an increase
or decrease in the cost of, or in the time required for, performance of
the WORK, an equitable adjustment shall be made and the CONTRACT
DOCUMENTS shall be modified by a CHANGE ORDER. Any claim of the
CONTRACTOR for adjustment hereunder shall not be allowed unless the
required WRITTEN NOTICE has been given; provided that the OWNER may, if
the OWNER determines the facts so justify, consider and adjust any such
claims asserted before the date of final payment.

18\. SUSPENSION OF WORK, TERMINATION, AND DELAY

18.1 The OWNER may suspend the WORK or any portion thereof for a period
of not more than ninety days or such further time as agreed upon by the
CONTRACTOR, by WRITTEN NOTICE to the CONTRACTOR and the ENGINEER which
shall fix the date on which WORK shall be resumed. The CONTRACTOR will
resume that WORK on the date so fixed. The CONTRACTOR will be allowed an
increase in the CONTRACT PRICE or an extension of the CONTRACT TIME, or
both, directly attributable to any suspension.

18.2 If the CONTRACTOR is adjudged a bankrupt or insolvent, or makes a
general assignment for the benefit of its creditors, or if a trustee or
receiver is appointed for the CONTRACTOR or for any of its property, or
if CONTRACTOR files a petition to take advantage of any debtor\'s act,
or to reorganize under the bankruptcy or applicable laws, or repeatedly
fails to supply sufficient skilled workmen or suitable materials or
equipment, or repeatedly fails to make prompt payments to SUBCONTRACTORS
or for labor, materials or equipment or disregards laws, ordinances,
rules, regulations or orders of any public body having jurisdiction of
the WORK or disregards the authority of the ENGINEER, or otherwise
violates any provision of the CONTRACT DOCUMENTS, then the OWNER may,
without prejudice to any other right or remedy and after giving the

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(Guide 19 - Attachment 9) (Page 12)

CONTRACTOR and its surety a minimum of ten (10) days from delivery of a
WRITTEN NOTICE, terminate the services of the CONTRACTOR and take
possession of the PROJECT and of all materials, equipment, tools,
construction equipment and machinery thereon owned by the CONTRACTOR,
and finish the WORK by whatever method the OWNER may deem expedient. In
such case the CONTRACTOR shall not be entitled to receive any further
payment until the WORK is finished. If the unpaid balance of the
CONTRACT PRICE exceeds the direct and indirect costs of completing the
PROJECT, including compensation for additional professional services,
such excess SHALL BE PAID TO THE CONTRACTOR. If such costs exceed such
unpaid balance, the CONTRACTOR will pay the difference to the OWNER.
Such costs incurred by the OWNER will be determined by the ENGINEER and
incorporated in a CHANGE ORDER.

18.3 Where the CONTRACTOR\'S services have been so terminated by the
OWNER, said termination shall not affect any right of the OWNER against
the CONTRACTOR then existing or which may thereafter accrue. Any
retention or payment of monies by the OWNER due the CONTRACTOR will not
release the CONTRACTOR from compliance with the CONTRACT DOCUMENTS.

18.4 After ten (10) days from delivery of a WRITTEN NOTICE to the
CONTRACTOR and the ENGINEER, the OWNER may, without cause and without
prejudice to any other right or remedy, elect to abandon the PROJECT and
terminate the CONTRACT. In such case the CONTRACTOR shall be paid for
all WORK executed and any expense sustained plus reasonable profit.

18.5 If, through no act or fault of the CONTRACTOR, the WORK is
suspended for a period of more than ninety (90) days by the OWNER or
under an order of court or other public authority, or the ENGINEER fails
to act on any request for payment within thirty (30) days after it is
submitted, or the OWNER fails to pay the CONTRACTOR substantially the
sum approved by the ENGINEER or awarded by arbitrators within thirty
(30) days of its approval and presentation, then the CONTRACTOR may,
after ten (10) days from delivery of a WRITTEN NOTICE to the OWNER and
the ENGINEER terminate the CONTRACT and recover from the OWNER payment
for all WORK executed and all expenses sustained. In addition and in
lieu of terminating the CONTRACT, if the ENGINEER has failed to act on a
request for payment or if the OWNER has failed to make any payment as
aforesaid, the CONTRACTOR may upon ten (10) days written notice to the
OWNER and the ENGINEER stop the WORK until paid all amounts then due, in
which event and upon resumption of the WORK CHANGE ORDERS shall be
issued for adjusting the CONTRACT PRICE or extending the CONTRACT TIME
or both to compensate for the costs and delays attributable to the
stoppage of the WORK.

18.6 If the performance of all or any portion of the WORK is suspended,

delayed, or interrupted as a result of a failure of the OWNER or
ENGINEER to act within the time specified in the CONTRACT DOCUMENTS, or
if no time is specified, within a reasonable time, an adjustment in the
CONTRACT PRICE or

RD Instruction 1933-A

§1933.20 (a) (Guide 19 - Attachment 9) (Page 13)

an extension of the CONTRACT TIME, or both, shall be made by CHANGE
ORDER to compensate the CONTRACTOR for the costs and delays necessarily
caused by the failure of the OWNER or ENGINEER.

19\. PAYMENT TO CONTRACTOR

19.1 At least ten (10) days before each progress payment falls due (but
not more often than once a month), the CONTRACTOR will submit to the
ENGINEER a partial payment estimate filled out and signed by the
CONTRACTOR covering the WORK performed during the period covered by the
partial payment estimate and supported by such data as the ENGINEER may
reasonably require. If payment is requested on the basis of materials
and equipment not incorporated in the WORK but delivered and suitably
stored at or near the site, the partial payment estimate shall also be
accompanied by such supporting data, satisfactory to the OWNER, as will
establish the OWNER\'S title to the material and equipment and protect
the OWNER\'S interest therein, including applicable insurance. The
ENGINEER will, within ten (10) days after receipt of each partial
payment estimate, either indicate in writing approval of payment, and
present the partial payment estimate to the OWNER, or return the partial
payment estimate to the CONTRACTOR indicating in writing the reasons for
refusing to approve payment. In the latter case, the CONTRACTOR may make
the necessary corrections and resubmit the partial payment estimate. The
OWNER will, within ten (10) days of presentation of an approved partial
payment estimate, pay the CONTRACTOR a progress payment on the basis of
the approved partial payment estimate less the retainage. The retainage
shall be an amount equal to 10% of said estimate until 50% of the work
has been completed. At 50% completion, further partial payments shall be
made in full to the CONTRACTOR and no additional amounts may be retained
unless the ENGINEER certifies that the job is not proceeding
satisfactorily, but amounts previously retained shall not be paid to the
CONTRACTOR. At 50% completion or any time thereafter when the progress
of the WORK is not satisfactory, additional amounts may be retained but
in no event shall the total retainage be more than 10% of the value of
the work completed. Upon substantial completion of the work, any amount
retained may be paid to the CONTRACTOR. When the WORK has been
substantially completed except for WORK which cannot be completed
because of weather conditions, lack of materials or other reasons which
in the judgment of the OWNER are valid reasons for noncompletion, the
OWNER may make additional payments, retaining at all times an amount
sufficient to cover the estimated cost of the WORK still to be
completed.

19.2 The request for payment may also include an allowance for the cost
of such major materials and equipment which are suitably stored either
at or near the site.

19.3 Prior to SUBSTANTIAL COMPLETION, the OWNER, with the approval of
the ENGINEER and with the concurrence of the CONTRACTOR, may use any
completed or substantially completed portions of the WORK. Such use
shall not constitute an acceptance of such portions of the WORK.

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(Guide 19 - Attachment 9) (Page 14)

19.4 The OWNER shall have the right to enter the premises for the
purpose of doing work not covered by the CONTRACT DOCUMENTS. This
provision shall not be construed as relieving the CONTRACTOR of the sole
responsibility for the care and protection of the WORK, or the
restoration of any damaged WORK except such as may be caused by agents
or employees of the OWNER.

19.5 Upon completion and acceptance of the WORK, the ENGINEER shall
issue a certificate attached to the final payment request that the WORK
has been accepted under the conditions of the CONTRACT DOCUMENTS. The
entire balance found to be due the CONTRACTOR, including the retained
percentages, but except such sums as may be lawfully retained by the
OWNER, shall be paid to the CONTRACTOR within thirty (30) days of
completion and acceptance of the WORK.

19.6 The CONTRACTOR will indemnify and save the OWNER or the OWNER\'S
agents harmless from all claims growing out of the lawful demand of
SUBCONTRACTORS, laborers, workmen, mechanics, materialmen, and
furnishers of machinery and parts thereof, equipment, tools, and all
supplies, incurred in the furtherance of the performance of the WORK.
The CONTRACTOR shall, at the OWNER\'S request, furnish satisfactory
evidence that all obligations of the nature designated above have been
paid, discharged, or waived. If the CONTRACTOR fails to do so the OWNER
may, after having notified the CONTRACTOR, either pay unpaid bills or
withhold from the CONTRACTOR\'S unpaid compensation a sum of money
deemed reasonably sufficient to pay any and all such lawful claims until
satisfactory evidence is furnished that all liabilities have been fully
discharged whereupon payment to the CONTRACTOR shall be resumed in
accordance with the terms of the CONTRACT DOCUMENTS, but in no event
shall the provisions of this sentence be construed to impose any
obligations upon the OWNER to either the CONTRACTOR, the CONTRACTOR\'S
Surety, or any third party. In paying any unpaid bills of the
CONTRACTOR, any payment so made by the OWNER shall be considered as a
payment made under the CONTRACT DOCUMENTS by the OWNER to the CONTRACTOR
and the OWNER shall not be liable to the CONTRACTOR for any such
payments made in good faith.

19.7 If the OWNER fails to make payment thirty (30) days after approval
by the ENGINEER, in addition to other remedies available to the
CONTRACTOR, there shall be added to each such payment interest at the
maximum legal rate commencing on the first day after said payment is due
and continuing until the payment is received by the CONTRACTOR.

20\. ACCEPTANCE OF FINAL PAYMENT AS RELEASE

20.1 The acceptance by the CONTRACTOR of final payment shall be and
shall operate as a release to the OWNER of all claims and all liability
to the CONTRACTOR other than claims in stated amounts as may be
specifically excepted by the CONTRACTOR for all things done or furnished
in connection with

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 15)

this WORK and for every act and neglect of the OWNER and others relating
to or arising out of this WORK. Any payment, however, final or
otherwise, shall not release the CONTRACTOR or its sureties from any
obligations under the CONTRACT DOCUMENTS or the Performance and Payment
BONDS.

21\. INSURANCE

21.1 The CONTRACTOR shall purchase and maintain such insurance as will
protect it from claims set forth below which may arise out of, or result
from, the CONTRACTOR\'S execution of the WORK, whether such execution be
by the CONTRACTOR, any SUBCONTRACTOR, or by anyone directly or
indirectly employed by any of them, or by anyone for whose acts any of
them may be liable:

21.1.1 Claims under workmen\'s compensation, disability benefit and
other similar employee benefit acts;

21.1.2 Claims for damages because of bodily injury, occupational
sickness or disease, or death of employees;

21.1.3 Claims for damages because of bodily injury, sickness or disease,
or death of any person other than employees;

21.1.4 Claims for damages insured by usual personal injury liability
coverage which are sustained (1) by any person as a result of an offense
directly or indirectly related to the employment of such person by the
CONTRACTOR, or (2) by any other person; and

21.1.5 Claims for damages because of injury to or destruction of
tangible property, including loss of use resulting therefrom.

21.2 Certificates of Insurance acceptable to the OWNER shall be filed
with the OWNER prior to commencement of the WORK. These Certificates
shall contain a provision that coverages afforded under the policies
will not be canceled unless at least fifteen (15) days prior WRITTEN
NOTICE has been given to the OWNER.

21.3 The CONTRACTOR shall procure and maintain, at the CONTRACTOR\'S own
expense, during the CONTRACT TIME, Liability insurance as hereinafter
specified:

21.3.1 CONTRACTOR\'S General Public Liability and Property Damage
Insurance including vehicle coverage issued to the CONTRACTOR and
protecting the CONTRACTOR from all claims for personal injury, including
death, and all claims for destruction of or damage to property, arising
out of or in connection with any operations under the CONTRACT
DOCUMENTS, whether such operations be by the CONTRACTOR or by any
SUBCONTRACTOR employed by the CONTRACTOR or anyone directly

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RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 16)

or indirectly employed by the CONTRACTOR or by a SUBCONTRACTOR employed
by the CONTRACTOR. Insurance shall be written with a limit of liability
of not less than \$500,000 for all damages arising out of bodily injury,
including death, at any time resulting therefrom, sustained by any one
person in any one accident; and a limit of liability of not less than
\$500,000 aggregate for any such damages sustained by two or more
persons in any one accident. Insurance shall be written with a limit of
liability of not less than \$200,000 for all property damage sustained
by any one person in any one accident; and a limit of liability of not
less than \$200,000 aggregate for any such damage sustained by two or
more persons in any one accident.

21.3.2 The CONTRACTOR shall acquire and maintain, if applicable, Fire
and Extended Coverage insurance upon the PROJECT to the full insurable
value thereof for the benefit of the OWNER, the CONTRACTOR, and
SUBCONTRACTORS as their interest may appear. This provision shall in no
way release the CONTRACTOR or CONTRACTOR\'S surety from obligations
under the CONTRACT DOCUMENTS to fully complete the PROJECT.

21.4 The CONTRACTOR shall procure and maintain, at the CONTRACTOR\'S own
expense, during the CONTRACT TIME, in accordance with the provisions of
the laws of the state in which the WORK is performed, Workmen\'s
Compensation Insurance, including occupational disease provisions, for
all of the CONTRACTOR\'S employees at the site of the PROJECT and in
case any WORK is sublet, the CONTRACTOR shall require such SUBCONTRACTOR
similarly to provide Workmen\'s Compensation Insurance, including
occupational disease provisions for all of the latter\'s employees
unless such employees are covered by the protection afforded by the
CONTRACTOR. In case any class of employees engaged in hazardous work
under this contract at the site of the PROJECT is not protected under
Workmen\'s Compensation statue, the CONTRACTOR shall provide, and shall
cause each SUBCONTRACTOR to provide, adequate and suitable insurance for
the protection of its employees not otherwise protected.

21.5 The CONTRACTOR shall secure, if applicable, \"All Risk\" type
Builder\'s Risk Insurance for WORK to be performed. Unless specifically
authorized by the OWNER, the amount of such insurance shall not be less
than the CONTRACT PRICE totaled in the BID. The policy shall cover not
less than the losses due to fire, explosion, hail, lightning, vandalism,
malicious mischief, wind, collapse, riot, aircraft, and smoke during the
CONTRACT TIME, and until the WORK is accepted by the OWNER. The policy
shall name as the insured the CONTRACTOR, and the OWNER.

22\. CONTRACT SECURITY

22.1 The CONTRACTOR shall within ten (10) days after the receipt of the
NOTICE OF AWARD furnish the OWNER with a Performance BOND and a Payment
BOND in penal sums equal to the amount of the CONTRACT PRICE,
conditioned upon the performance

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 17)

by the CONTRACTOR of all undertakings, covenants, terms, conditions and
agreements of the CONTRACT DOCUMENTS, and upon the prompt payment by the
CONTRACTOR to all persons supplying labor and materials in the
prosecution of the WORK provided by the CONTRACT DOCUMENTS. Such BONDS
shall be executed by the CONTRACTOR and a corporate bonding company
licensed to transact such business in the state in which the WORK is to
be performed and named on the current list of \"Surety Companies
Acceptable on Federal Bonds\" as published in the Treasury Department
Circular Number 570. The expense of these BONDS shall be borne by the
CONTRACTOR. If at any time a surety on any such BOND is declared a
bankrupt or loses its right to do business in the state in which the
WORK is to be performed or is removed from the list of Surety Companies
accepted on Federal Bonds, CONTRACTOR shall within ten (10) days after
notice from the OWNER to do so, substitute an acceptable BOND (or BONDS)
in such form and sum and signed by such other surety or sureties as may
be satisfactory to the OWNER. The premiums on such BOND shall be paid by
the CONTRACTOR. No further payment shall be deemed due nor shall be made
until the new surety or sureties shall have furnished an acceptable BOND
to the OWNER.

23\. ASSIGNMENTS

23.1 Neither the CONTRACTOR nor the OWNER shall sell, transfer, assign,
or otherwise dispose of the Contract or any portion thereof, or of any
right, title or interest therein, or any obligations thereunder, without
written consent of the other party.

24\. INDEMNIFICATION

24.1 The CONTRACTOR will indemnify and hold harmless the OWNER and the
ENGINEER and their agents and employees from and against all claims,
damages, losses and expenses including attorney\'s fees arising out of
or resulting from the performance of the WORK, provided that any such
claims, damage, loss or expense is attributable to bodily injury,
sickness, disease or death, or to injury to or destruction of tangible
property including the loss of use resulting therefrom; and is caused in
whole or in part by any negligent or willful act or omission of the
CONTRACTOR, and SUBCONTRACTOR, anyone directly or indirectly employed by
any of them or anyone for whose acts any of them may be liable.

24.2 In any and all claims against the OWNER or the ENGINEER, or any of
their agents or employees, by any employee of the CONTRACTOR, any
SUBCONTRACTOR, anyone directly or indirectly employed by any of them, or
anyone for whose acts any of them may be liable, the indemnification
obligation shall not be limited in any way by any limitation on the
amount or type of damages, compensation or benefits payable by or for
the CONTRACTOR or any SUBCONTRACTOR under workmen\'s compensation acts,
disability benefit acts or other employee benefits acts.

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RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 18)

24.3 The obligation of the CONTRACTOR under this paragraph shall not
extend to the liability of the ENGINEER, its agents or employees arising
out of the preparation or approval of maps, DRAWINGS, opinions, reports,
surveys, CHANGE ORDERS, designs or SPECIFICATIONS.

25\. SEPARATE CONTRACTS

25.1 The OWNER reserves the right to let other contracts in connection
with this PROJECT. The CONTRACTOR shall afford other CONTRACTORS
reasonable opportunity for the introduction and storage of their
materials and the execution of their WORK, and shall poorly connect and
coordinate the WORK with theirs. If the proper execution or results of
any part of the CONTRACTOR\'S WORK depends upon the WORK of any other
CONTRACTOR, the CONTRACTOR shall inspect and promptly report to the
ENGINEER any defects in such WORK that render it unsuitable for such
proper execution and results.

25.2 The OWNER may perform additional WORK related to the PROJECT or the
OWNER may let other contracts containing provisions similar to these.
The CONTRACTOR will afford the other CONTRACTORS who are parties to such
Contracts (or the OWNER, if the OWNER is performing the additional WORK)
reasonable opportunity for the introduction and storage of materials and
equipment and the execution of WORK, and shall properly connect and
coordinate the WORK with theirs.

25.3 If the performance of additional WORK by other CONTRACTORS or the
OWNER is not noted in the CONTRACT DOCUMENTS prior to the execution of
the CONTRACT, written notice thereof shall be given to the CONTRACTOR
prior to starting any such additional WORK. If the CONTRACTOR believes
that the performance of such additional WORK by the OWNER or others
involves it in additional expense or entitles it to an extension of the
CONTRACT TIME, the CONTRACTOR may make a claim thereof as provided in
Sections 14 and 15.

26\. SUBCONTRACTING

26.1 The CONTRACTOR may utilize the services of specialty SUBCONTRACTS
on those parts of the WORK which, under normal contracting practices,
are performed by specialty SUBCONTRACTORS.

26.2 The CONTRACTOR shall not award WORK to SUBCONTRACTOR(s), in excess
of fifty (50%) percent of the CONTRACT PRICE, without prior written
approval of the OWNER.

RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 19)

(Revision 1)

26.3 The CONTRACTOR shall be fully responsible to the OWNER for the acts
and omissions of its SUBCONTRACTORS, and of persons either directly or
indirectly employed by them, as the CONTRACTOR is for the acts and
omissions of persons directly employed by the CONTRACTOR.

26.4 The CONTRACTOR shall cause appropriate provisions to be inserted in
all subcontracts relative to the WORK to bind SUBCONTRACTORS to the
CONTRACTOR by the terms of the CONTRACT DOCUMENTS insofar as applicable
to the WORK of SUBCONTRACTORS and to give the CONTRACTOR the same power
as regards terminating any subcontract that the OWNER may exercise over
the CONTRACTOR under any provision of the CONTRACT DOCUMENTS.

26.5 Nothing contained in this CONTRACT shall create any contractual
relationship between any SUBCONTRACTOR and the OWNER. (Revised 2-16-83,
PN 869.)

27\. ENGINEER\'S AUTHORITY

27.1 The ENGINEER shall act as the OWNER\'S representative during the
construction period, shall decide questions which may arise as to
quality and acceptability of materials furnished and WORK performed, and
shall interpret the intent of the CONTRACT DOCUMENTS in a fair and
unbiased manner. The ENGINEER will make visits to the site and determine
if the WORK is proceeding in accordance with the CONTRACT DOCUMENTS.

27.2 The CONTRACTOR will be held strictly to the intent of the CONTRACT
DOCUMENTS in regard to the quality of materials, workmanship, and
execution of the WORK. Inspections may be made at the factory or
fabrication plant of the source of material supply.

27.3 The ENGINEER will not be responsible for the construction means,
controls, techniques, sequences, procedures, or construction safety.

27.4 The ENGINEER shall promptly make decisions relative to
interpretation of the CONTRACT DOCUMENTS.

28\. LAND AND RIGHTS-OF-WAY

28.1 Prior to issuance of NOTICE TO PROCEED, the OWNER shall obtain all
land and rights-of-way necessary for carrying out and for the completion
of the WORK to be performed pursuant to the CONTRACT DOCUMENTS, unless
otherwise mutually agreed.

28.2 The OWNER shall provide to the CONTRACTOR information which
delineates and describes the lands owned and rights-of-way acquired.

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RD Instruction 1942-A

(Guide 19 - Attachment 9) (Page 20)

(Revision 1)

28.3 The CONTRACTOR shall provide at its own expense and without
liability to the OWNER any additional land and access thereto that the
CONTRACTOR may desire for temporary construction facilities, or for
storage of materials.

29\. GUARANTEE

29.1 The CONTRACTOR shall guarantee all materials and equipment
furnished and WORK performed for a period of one (1) year from the date
of SUBSTANTIAL COMPLETION. The CONTRACTOR warrants and guarantees for a
period of one (1) year from the date of SUBSTANTIAL COMPLETION of the
system that the completed system is free from all defects due to faulty
materials or workmanship and the CONTRACTOR shall promptly make such
corrections as may be necessary by reason of such defects including the
repairs of any damage to other parts of the system resulting from such
defects. The OWNER will give notice of observed defects with reasonable
promptness. In the event that the CONTRACTOR should fail to make such
repairs, adjustments, or other WORK that may be made necessary by such
defects, the OWNER may do so and charge the CONTRACTOR the cost thereby
incurred. The Performance BOND shall remain in full force and effect
through the guarantee period.

30\. ARBITRATION BY MUTUAL AGREEMENT (Revised 2-16-83, PN 869.)

30.1 All claims, disputes, and other matters in question arising out of,
or relating to, the CONTRACT DOCUMENTS or the breach thereof, except for
claims which have been waived by making an acceptance of final payment
as provided by Section 20, may be decided by arbitration if the parties
mutually agree. Any agreement to arbitrate shall be specifically
enforceable under the prevailing arbitration law. The award rendered by
the arbitrators shall be final, and judgment may be entered upon it in
any court having jurisdiction thereof. (Revised 2-16-83, PN 869.)

30.2 Notice of the request for arbitration shall be filed in writing
with the other party to the CONTRACT DOCUMENTS and a copy shall be filed
with the ENGINEER. Request for arbitration shall in no event be made on
any claim, dispute, or other matter in question which would be barred by
the applicable statute of limitations. (Revised 2-16-83, PN 869.)

30.3 The CONTRACTOR will carry on the WORK and maintain the progress
schedule during any arbitration proceedings, unless otherwise mutually
agreed in writing.

31\. TAXES

31.1 The CONTRACTOR will pay all sales, consumer, use, and other similar
taxes required by the laws of the place where the WORK is performed.

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(Guide 19 - Attachment 9) (Page 21)

(Added 09-16-92, PN 191)

32\. ENVIRONMENTAL REQUIREMENTS (Added 09-16-92, PN 191.)

The CONTRACTOR, when constructing a project involving trenching and/or
other related earth excavation, shall comply with the following
environmental constraints.

32.1 WETLANDS - The CONTRACTOR, when disposing of excess, spoil, or
other construction materials on public or private property, WILL NOT
FILL IN or otherwise CONVERT WETLANDS.

32.2 FLOODPLAINS - The CONTRACTOR, when disposing of excess, spoil, or
other construction materials on public or private property, WILL NOT
FILL IN or otherwise CONVERT 100 YEAR FLOODPLAIN areas delineated on the
latest FEMA Floodplain Maps.

32.3 HISTORIC PRESERVATION - Any excavation by the Contractor that
uncovers an historical or archaeological artifact shall be immediately
reported to the PROJECT ENGINEER and a representative of Rural
Development. Construction shall be temporarily halted pending the
notification process and further directions issued by Rural Development
after consultation with the State Historic Preservation Officer (SHPO).

32.4 ENDANGERED SPECIES - The CONTRACTOR shall comply with the
Endangered Species Act, which provides for the protection of endangered
and/or threatened species and critical habitat. Should any evidence of
the presence of endangered and/or threatened species or their critical
habitat be brought to the attention of the CONTRACTOR, the CONTRACTOR
will immediately report this evidence to the PROJECT ENGINEER and a
representative of Rural Development. Construction shall be temporarily
halted pending the notification process and further directions issued by
Rural Development after consultation with the U.S. Fish and Wildlife
Service.

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(1-15-79) SPECIAL PN