Guidance for the Use of EJCDC Standard Documents on

**Water and Waste Projects with RUS Financial Assistance**

**Rural Utilities Service**

**December 1997**

The United States Department of Agriculture, Rural Utilities Service
(RUS) and the Engineers Joint Contract Documents Committee (EJCDC) have
developed a Funding Agency Edition of the following selected standard
documents:

1.  Standard Form of Agreement between Owner and Engineer for
    Professional Services (EJCDC No. 1910-1-FA, including Exhibits A
    through I, 1997 Edition),

2.  Standard Form of Agreement between Owner and Contractor on the Basis
    of Stipulated Price, (EJCDC No. 1910-8-A-1-FA, 1997 Edition), and

3.  Standard General Conditions of the Construction Contract (EJCDC No.
    1910-8-FA, 1997 Edition).

When these documents are properly coordinated with other standard
documents in the EJCDC set of Construction Related Documents, the
documents are acceptable for use by RUS applicants and borrowers in the
procurement of engineering professional services and utility
construction services for projects with financial assistance under the
Water and Waste Disposal programs.

The EJCDC documents are available from the National Society of
Professional Engineers (http://www.nspe.org or 1‑800‑417‑0348). RUS
offices will not distribute EJCDC for any purpose other than training or
to illustrate the appropriate use of the integrated set of documents on
RUS financially assisted projects.

This bulletin on the use of the EJCDC documents is provided by RUS to
assist Rural Development staff in providing information and guidance to
applicants and professional consultants in the development of agreements
that are legally sufficient, ensure appropriate services are provided
for a reasonable fee, and expedite the achievement of the applicant's
goals. Many of the EJCDC standard forms must be used with the Funding
Agency Editions of the agreements to develop a complete set of
construction contract documents. This guidance package consists of
attachments that can assist with the integration of those standard
documents with the Funding Agency Edition documents. However, the
guidance or model documents in these attachments are not to be used as a
substitute for the careful evaluation of the requirements for a specific
project. The owner, their engineer and legal counsel, with Rural
Development consultation, must determine the best approach for a
successful outcome.

Rural Development State Offices may modify this guidance when
appropriate to comply with State statutes. The State Office will submit
any modifications with a justification for changes to the Assistant
Administrator for Water and Environmental Programs. Before an applicant
or consultant proceeds with the development of an agreement or a set of
contract documents, they should contact the Rural Development State
Office to verify they have the most current information specific to the
type of project and State where the project is located.

The Owner is responsible for the settlement of all contractual and
administrative issues arising out of procurement entered into in support
of a loan or grant. These include, but are not limited to: source
evaluation, protests, disputes, and claims. Matters concerning
violations of laws are to be referred to the applicable local, State, or
Federal authority.

Attachments:

  --------- ---------- -----------------------------------------------------------------
  **No.**   **Date**   **Title**

  1         10/97      Owner-Engineer Document List

  2         10/97      Owner's Instructions Regarding Bidding Procedures and
                       Construction Contract Documents

  3         10/97      Owner-Contractor Document List

  4         10/97      Advertisement for Bids

  5         10/97      Preparation of Instructions to Bidders

  6         10/97      Preparation of Supplementary Conditions

  7         10/97      Preparation of Bid Form

  8         10/97      Payment Application

  9         10/97      Change Order
  --------- ---------- -----------------------------------------------------------------

This bulletin and all the attachments are available at any Rural
Development State Office. The State Office staff is familiar with the
use of the documents in their States and can answer specific questions
on Agency requirements.

Any Rural Development or RUS instructions, regulations, or forms
referenced in this bulletin are available from any Rural Development
State Office. Examples of forms to be used are:

> A. Compliance Statement (RD 400-6).
>
> B. Certification Regarding Debarment, Suspension, Ineligibility and
> Voluntary Exclusion - Lower Tier Covered Transactions (AD-1048).
>
> C. RD Instruction 1940-Q, Exhibit A-1, Certification for Contracts,
> Grants, and Loans.

The RUS National Office maintains a web site for Water and Environmental
Programs at http://www.usda.gov/rus/water. In addition to other valuable
information, this site provides a listing of all the Rural Development
State Offices and the capability to download a copy of Bulletin 1780-26
and the Attachments in a MS Word for Windows 6.0 format and copies of
most Rural Development and RUS forms (all regulations and forms are
under the link PROGRAMS/RELATED ISSUES). The bulletin and the
attachments are formatted for copying as a doubled sided document to
reduce paper usage after the first computer printing. Consultants may
use the electronic files as the starting point in preparing a set of
construction contract documents for a specific project. However, before
an applicant or consultant proceeds with the development of an agreement
or set of documents, they should contact the Rural Development State
Office to verify any additions necessary to comply with State Laws in
the specific State where the project is located.

The EJCDC documents and this bulletin contain references to the U.S.
Code (USC), the Code of Federal Regulations (CFR), Executive Orders
(E.O.), and Public Laws (P.L.). The current versions of the referenced
documents are available over the Internet.

  ----------------------- -----------------------------------------------
  **Type of Document**    **Web Site URL**

  USC                     http://law.house.gov/usc.htm#search

  CFR                     http://www.access.gpo.gov/nara/cfr/index.html

  E.O.                    http://www.whitehouse.gov (Only partial list,
                          others being added periodically)

  P.L.                    http://thomas.loc.gov/bss/bdquery.html#laws
  ----------------------- -----------------------------------------------

**Owner-Engineer Document List**

The Rural Utilities Service (RUS) and the Engineers Joint Contract
Documents Committee (EJCDC) have developed a Funding Agency Edition of
the Owner-Engineer Agreement that when properly assembled is acceptable
for use on Water and Waste Disposal projects funded by RUS. These
documents are 1997 edition and should be used in coordination with the
EJCDC construction related documents, Funding Agency Editions. The
Exhibits referenced here were specifically drafted to be used with the
Owner-Engineer Agreement, Funding Agency Edition and should not be mixed
with Exhibits from the Standard Edition.

Because the EJCDC documents are fully integrated, when making a
modification in one document you should ensure that appropriate
modifications are made in all effected documents. It is RUS policy that
the applicants use the EJCDC documents with minimal modification.
However, RUS recognizes each project is unique and that modifications
may be required to satisfy specific project requirements or State
statutes.

Before an applicant or consultant proceeds with the development of an
agreement, they should contact the Rural Development State Office to
verify they have the most current information specific to the type of
project and State where the project is located.

This table provides a list of the component parts of a complete
Owner-Engineer Agreement and RUS Notes on their use.

+------------------+----------+----------------------------------------+
| **Title**        | **Form** | **RUS Notes: Necessary actions,        |
|                  |          | important points**                     |
+==================+==========+========================================+
|                  |          |                                        |
+------------------+----------+----------------------------------------+
| Standard Form of | 1        | -   Page 1 of 13, before an "Effective |
| Agreement        | 910-1-FA |     Date" is entered the Owner should  |
| Between Owner    |          |     consult with a Rural Development   |
| and Engineer for |          |     representative.                    |
| Professional     |          |                                        |
| Services Funding |          | -   Page 13 of 13, RUS funding can be  |
| Agency Edition   |          |     used for payment of engineering    |
|                  |          |     services only after RUS has        |
|                  |          |     concurred in this document.        |
|                  |          |                                        |
|                  |          | -   In addition to copies customarily  |
|                  |          |     provided for Owner, Engineer, and  |
|                  |          |     others, two executed copies with   |
|                  |          |     all attachments will be provided   |
|                  |          |     for Rural Development use.         |
+------------------+----------+----------------------------------------+
| -   Engineer's   | Exhibit  | -   A.1.01.A.3, A list of alternatives |
|     Services     | A        |     to be evaluated must be entered,   |
|                  |          |     but leave option to add any        |
|                  | (R       |     required by funding agencies.      |
|                  | equired) |                                        |
|                  |          | -   Any unique tasks or deliverables   |
|                  |          |     not covered in the standard        |
|                  |          |     language must be added in the      |
|                  |          |     appropriate phase.                 |
|                  |          |                                        |
|                  |          | -   A.1.06.B., The Engineer should     |
|                  |          |     provide a number of hours          |
|                  |          |     commensurate with the size and     |
|                  |          |     complexity of the project.         |
+------------------+----------+----------------------------------------+
| -   Owner's      | Exhibit  | -   Any of the listed responsibilities |
|                  | B        |     that have been moved to Exhibit A  |
| Responsibilities |          |     or are included in Additional      |
|                  | (R       |     Engineer's Services should be      |
|                  | equired) |     deleted here.                      |
+------------------+----------+----------------------------------------+
| -   Payments to  | Exhibit  | -   Must select either Lump Sum or     |
|     Engineer for | C        |     Percentage of Construction Cost    |
|     Services and |          |     method of payment.                 |
|     Reimbursable | (Must    |                                        |
|     Expenses     | Select   | -   Each State Office must develop an  |
|                  | One      |     Exhibit C, Attachment 1 to outline |
|                  | Option)  |     payment methods and amounts.       |
|                  |          |                                        |
|                  |          | -   Reimbursable expenses are included |
|                  |          |     in the amount stated in C.4.02.    |
+------------------+----------+----------------------------------------+
| -                |          |                                        |
+------------------+----------+----------------------------------------+
| Standard Hourly  | Exhibit  | -   This must be replaced by State     |
| Rates and        | C,       |     developed Exhibit C, Attachment 1. |
| Reimbursable     | At       |                                        |
| Expenses         | tachment | -   The EJCDC Attachment 1 does not    |
| Schedule         | 1        |     address all the references in      |
|                  |          |     Exhibit C.                         |
|                  | (Su      |                                        |
|                  | bstitute | -   Be specific about calculating fees |
|                  | R        |     regarding multiple construction    |
|                  | equired) |     contracts and change order         |
|                  |          |     adjustments of contract amount and |
|                  |          |     time.                              |
|                  |          |                                        |
|                  |          | -   Be specific about calculating fees |
|                  |          |     for PER and environmental part of  |
|                  |          |     PER.                               |
+------------------+----------+----------------------------------------+
| -   Resident     | Exhibit  | -   Required if Engineer provides this |
|     Project      | D        |     service                            |
|                  |          |                                        |
|   Representative | (R       | -   A similar document must be used if |
|                  | equired) |     service is provided by others.     |
+------------------+----------+----------------------------------------+
| -   Notice of    | Exhibit  | -   Executed copy will be provided to  |
|                  | E        |     the agency                         |
|    Acceptability |          |                                        |
|     of Work      | (R       |                                        |
|                  | equired) |                                        |
+------------------+----------+----------------------------------------+
| -   Construction | Exhibit  |                                        |
|     Cost Limit   | F        |                                        |
|                  |          |                                        |
|                  | (O       |                                        |
|                  | ptional) |                                        |
+------------------+----------+----------------------------------------+
| Insurance        | Exhibit  | -   Owner should review and update     |
|                  | G        |     insurance coverage where necessary |
|                  |          |     to maintain adequate protection    |
|                  | (R       |     during construction period.        |
|                  | equired) |                                        |
|                  |          | -   Should consider Engineer carrying  |
|                  |          |     comparable types of coverage and   |
|                  |          |     limits Owner is carrying.          |
|                  |          |                                        |
|                  |          | -   Owner should consider carrying     |
|                  |          |     "All Risk" Builder's Risk, if the  |
|                  |          |     Work is modifying existing         |
|                  |          |     facilities.                        |
+------------------+----------+----------------------------------------+
| -   Dispute      | Exhibit  | -   Use only if it is desirable to     |
|     Resolution   | H        |     settle disputes using a process    |
|                  |          |     other than the court system.       |
|                  | (O       |                                        |
|                  | ptional) | -   Entries in blanks:                 |
|                  |          |                                        |
|                  |          |     A. Name a specific service/agency  |
|                  |          |     i.e. American Arbitration          |
|                  |          |     Association.                       |
|                  |          |                                        |
|                  |          |     B. Construction Industry Rules of  |
|                  |          |     American Arbitration Association.  |
|                  |          |                                        |
|                  |          |     C. Same as entry in A.             |
+------------------+----------+----------------------------------------+
| -   Special      | Exhibit  | -   Use only if specific modifications |
|     Provisions   | I        |     are required by State statute or   |
|                  |          |     unique project requirements.       |
|                  | (O       |                                        |
|                  | ptional) | -   Follow document format.            |
+------------------+----------+----------------------------------------+

**Owner\'s Instructions Regarding Bidding Procedures And**

**Construction Contract Documents**

The Rural Utilities Service (RUS) and the Engineers Joint Contract
Documents Committee (EJCDC) have developed Funding Agency Editions of
specific documents that are acceptable for use as the foundation of the
Construction Contract Documents on Water and Waste Disposal projects
funded by RUS. This guidance is provided to indicate RUS preferences in
preparation of the Construction Contract Documents and expedite the
entire process of preparing for the project construction. RUS recognizes
each project is unique and that modifications may be required to satisfy
specific project requirements or State statutes.

This document is a model letter that the Owner and Engineer can use to
delineate the issues and conclusions reached by the Owner and Engineer
before preparing documents. The Owner and their Engineer should
collaborate in the development of this or a similar document in
consultation with the Owner's legal counsel before the Engineer begins
development of the Construction Contract Documents.

*Text enclosed in {} indicates a choice is necessary or information
should be inserted.*

PROJECT: *{}*

OWNER: *{}*

TO: *{ENGINEER}*

CC: USDA, Rural Development

You are hereby instructed to proceed with preparation of necessary
Bidding Requirements and Contract Documents on the basis of the
information given below or provided in attachments. This letter is to
confirm decisions made and does not change any relationships or
assignment of responsibilities established in the Owner-Engineer
Agreement.

1\. Project name to be used (if other than above): *{}*

2\. Legal name and address of the Owner for construction contract
purposes: *{}*

3\. Form of business of Owner: \_\_\_Not-for-Profit Corporation
\_\_\_Municipality \_\_\_Utility District.

4\. Detailed description of property, including designation of property
owner if different from the Owner identified above: *{}*

5\. During the Construction Phase, Owner\'s Representative (point of
contact) will be: *{}*

6\. The Project will be constructed utilizing: *{Single/Multiple}*
contract{s}, stipulated sum *{, Portions of construction by Owner\'s own
forces, Other (specify)}*.

7\. The form of Agreement between Owner and Contractor(s) shall be EJCDC
No. 1910-8-A-1-FA (1997 Edition)

8\. The method of selecting the Contractor(s) shall be open and
competitive.

9\. If multiple contracts are to be utilized on the same site, the
activities of the Contractors will be coordinated by a designated prime
contractor.

10\. General Conditions of the Contract shall be EJCDC No. 1910-8-FA
(1997 Edition)

11\. Development of Supplementary Conditions of the Contract prior to
bidding will be discussed and reviewed with Owner\'s Representative, who
is: *{}*

12\. Contractor\'s applications for payment will be paid by the
*{20^th^}* day of each month. The Application for Payment will be based
on EJCDC No. 1910-8-E (1996 edition) and RUS Bulletin 1780-26,
Attachment 26-8.

13\. Interest on late payments will be paid at the rate of *{8}*% per
annum.

14\. For Item 12 above to apply, applications for payment must be
received by Owner 10 days before payment is due.

15\. Retainage will be as stated in Owner-Contractor Agreement (EJCDC
No. 1910-8-A-1-FA).

16\. Liquidated Damages are required. Liquidated Damages shall be
assessed in the amount of \$ *{\_\_\_\_\_\_\_}* per day for each
calendar day required to achieve Substantial Completion. *{Customary
practice on projects funded in part by RUS is not to have a liquidated
damages provision for failure to complete the Work by a designated
period of time after Substantial Completion. If this custom is not
followed because of special circumstances, the Owner should establish an
amount for liquidated damages, \$ \_\_\_\_\_\_\_\_\_\_ per day for each
day required for readiness for final payment.}*

Calculation of liquidated damages amount:

Substantial Completion Final Payment (Optional)

Interest \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_

Inspection \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_

Administration \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_

Engineering \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_

Other \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_

TOTAL \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_

17\. Instructions to Bidders shall be based on EJCDC No. 1910-12 (1996
edition) and RUS Bulletin 1780-26, Attachment 26-5.

18\. Special Instructions to Bidders regarding Site visits are as
follows: *{}*

19\. Bid Form shall be prepared by Engineer.

20\. Bids shall be solicited by Public Advertisement, Arranged by
*{Owner/Engineer}*.

Publications to include: local and regional newspapers, builders
exchange, etc. *{Add places where construction is normally advertised in
specific States.}*

21\. Instructions, if any, on the method of selection and/or
qualification of Bidders: *{}*

22\. Bid Security is required, in the amount of 5% of the total Bid in
the form of a Bid Bond using EJCDC No. 1910-28-C or Certified Check.

23\. Copies of the Bidding Documents may be made available in plan
rooms: Selected by Engineer.

24\. Date and time for receipt of Bids will be determined later by Owner
and Engineer, with Rural Development concurrence.

25\. Place of receipt of Bids will be determined later by Owner and
Engineer.

26\. Detailed bid tabulation forms will be prepared by Engineer.

27\. Bids shall be publicly opened and read aloud.

28\. In addition to the usual original signed Bid, the Owner requires
the following (See RUS Bulletin 1780-26, Attachment 26-7): *{}*

29\. Bids shall not be withdrawn by Bidders for *{60}* days after the
receipt of Bids.

30\. If a Contract is awarded, all Funding Agencies must concur prior to
announcement. Construction at the site by the Contractor may commence
upon, but not before, receipt of a Notice to Proceed.

31\. Work shall be substantially complete *{\_\_\_\_\_\_}* calendar days
after Contract Times commence to run.

32\. The Change Order will be based on EJCDC No. 1910-8-B (1996 edition)
and RUS Bulletin 1780-26, Attachment 26-9.

33\. Special instructions are attached for the following items:

*{Equal opportunity requirements*

*Extensions of time*

*Lien waivers*

*Limited access during bidding*

*Limited access during construction*

*Monthly affidavits*

*Phased occupancy*

*Separate contracts*

*Special time periods during which Contractor cannot perform
construction*

*Tax exemptions*

*Wage standards or determinations, to which Contractor must conform
(check with Rural Development)*

*Work by Owner\'s own forces*

*Other (specify)}*

Owner:

By Date

Phone: Fax:

**Owner-Contractor Document List**

The Rural Utilities Service (RUS) and the Engineers Joint Contract
Documents Committee (EJCDC) have developed Funding Agency Editions of
the Owner-Contractor Agreement and the General Conditions that when
properly assembled with other Standard Edition construction related
documents is acceptable for use as the foundation of the Construction
Contract Documents on Water and Waste Disposal projects funded by RUS.
These documents are 1997 edition. The other forms referenced here are
part of the EJCDC set of Construction Related Documents, Standard
Edition. Therefore, these forms may require minor modifications before
use with the Funding Agency Editions.

Because the EJCDC documents are fully integrated, when making a
modification in one document you should ensure that appropriate
modifications are made in all effected documents. It is the Rural
Utilities Service (RUS) policy that the applicants use the EJCDC
documents with minimal modification. However, RUS recognizes each
project is unique and that modifications may be required to satisfy
specific project requirements or State statutes.

Before an applicant or consultant proceeds with the development of a set
of contract documents, they should contact the Rural Development State
Office to verify they have the most current information specific to the
type of project and State where the project is located.

It is customary that project signs identifying the Owner, Contractor,
Engineer, and Funding Agencies be erected during project construction.
The sign requirements are not included in the Supplementary Conditions,
but should be a part of the specifications prepared by the Engineer.
These sign requirements vary by State. Therefore, the Engineer should
contact the Rural Development State Staff Engineer for the specific
requirements in the State where the project will be constructed.

This table provides a list of the component parts of a complete
Owner-Contractor Agreement and RUS Notes on their use.

+------------------+----------+----------------------------------------+
| **Title**        | **Form** | **RUS Notes: Necessary actions,        |
|                  |          | important points**                     |
+==================+==========+========================================+
|                  |          |                                        |
+------------------+----------+----------------------------------------+
| Standard Form of | 1910-    | -   Read Notes to User in Introduction |
| Agreement        | 8-A-1-FA |     and make appropriate               |
| Between Owner    | (97)     |     modifications.                     |
| and Contractor   |          |                                        |
| on the Basis of  |          | -   4.03, The amount entered for       |
| Stipulated Price |          |     liquidated damages should cover    |
| Funding Agency   |          |     all the Owner's additional costs   |
| Edition          |          |     for the project not being          |
|                  |          |     operational: interest,             |
|                  |          |     professional fees, administrative  |
|                  |          |     costs, etc.                        |
|                  |          |                                        |
|                  |          | -   7.01, Enter an interest rate       |
|                  |          |     comparable to short term lending   |
|                  |          |     rate or State law.                 |
|                  |          |                                        |
|                  |          | -   In addition to copies customarily  |
|                  |          |     provided for Owner, Contractor,    |
|                  |          |     Engineer, and others, two executed |
|                  |          |     copies will be provided for Rural  |
|                  |          |     Development use.                   |
+------------------+----------+----------------------------------------+
| -   Standard     | 1        | Includes:                              |
|     General      | 910-8-FA |                                        |
|     Conditions   | (97)     | -   Federal Requirements -- Article    |
|     of the       |          |     18.                                |
|     Construction |          |                                        |
|     Contract     |          | -   Certificate of Owner's Attorney -  |
|     Funding      |          |     Exhibit GC-A.                      |
|     Agency       |          |                                        |
|     Edition      |          |                                        |
+------------------+----------+----------------------------------------+
| -                |          |                                        |
+------------------+----------+----------------------------------------+
| Change Order     | 1910-8-B | -   Must add signature block for       |
|                  | (96)     |     Agency Concurrence.                |
|                  |          |                                        |
|                  |          | -   In addition to copies customarily  |
|                  |          |     provided for Owner, Contractor,    |
|                  |          |     Engineer, others, two executed     |
|                  |          |     copies will be provided for Rural  |
|                  |          |     Development use.                   |
+------------------+----------+----------------------------------------+
| -   Certificate  | 1910-8-D | -   Executed copy will be provided to  |
|     of           | (96)     |     Agency.                            |
|     Substantial  |          |                                        |
|     Completion   |          |                                        |
+------------------+----------+----------------------------------------+
| -   Application  | 1910-8-E | -   Must add signature blocks for      |
|     for Payment  | (96)     |     Owner's Approval and Agency        |
|                  |          |     Concurrence.                       |
|                  |          |                                        |
|                  |          | -   Work added by Change Order will    |
|                  |          |     not be considered for payment      |
|                  |          |     until Change Order has Agency      |
|                  |          |     Concurrence.                       |
|                  |          |                                        |
|                  |          | -   Quantity Completed on Final        |
|                  |          |     Application for Payment must equal |
|                  |          |     final adjusted contract quantities |
|                  |          |     on unit price contracts.           |
|                  |          |                                        |
|                  |          | -   In addition to copies customarily  |
|                  |          |     provided for Owner, Contractor,    |
|                  |          |     Engineer, others, an executed copy |
|                  |          |     with all attachments will be       |
|                  |          |     provided for Rural Development     |
|                  |          |     use.                               |
+------------------+----------+----------------------------------------+
| -   Guide to the | 1910-12  | -   See Attachment 26-5, Preparation   |
|     Preparation  | (96)     |     of Instructions to Bidders.        |
|     of           |          |                                        |
|     Instructions |          |                                        |
|     to Bidders   |          |                                        |
+------------------+----------+----------------------------------------+
| -   Guide to the | 1910-17  | -   See Attachment 26-6, Supplementary |
|     Preparation  | (96)     |     Conditions.                        |
|     of           |          |                                        |
|                  |          |                                        |
|    Supplementary |          |                                        |
|     Conditions   |          |                                        |
+------------------+----------+----------------------------------------+
| -   Guide to     | 1910-18  | -   See Attachment 26-7, Preparation   |
|     Preparation  | (96)     |     of Bid Form.                       |
|     of Bid Form  |          |                                        |
+------------------+----------+----------------------------------------+
| -   Notice of    | 1910-22  | -   Owner will not announce award of   |
|     Award        | (96)     |     contract without consultation with |
|                  |          |     Agency.                            |
+------------------+----------+----------------------------------------+
| -   Notice to    | 1910-23  | -   Executed copy will be provided for |
|     Proceed      | (96)     |     Rural Development use.             |
+------------------+----------+----------------------------------------+
| -   Performance  | 1        | -   Must be full amount of Contract.   |
|     Bond         | 910-28-A |                                        |
|                  | (96)     | -   Surety must have adequate bonding  |
|                  |          |     capacity, as published in TC-570,  |
|                  |          |     and be licensed to do business in  |
|                  |          |     the State where project is         |
|                  |          |     located.                           |
+------------------+----------+----------------------------------------+
| -   Payment Bond | 1        | -   Must be full amount of Contract.   |
|                  | 910-28-B |                                        |
|                  | (96)     | -   Surety must have adequate bonding  |
|                  |          |     capacity, as published in TC-570,  |
|                  |          |     and be licensed to do business in  |
|                  |          |     the State where project is         |
|                  |          |     located.                           |
+------------------+----------+----------------------------------------+
| -   Bid Bond     | 1        | -   Must be at least 5% of Bid amount. |
|                  | 910-28-C |                                        |
|                  | (96)     |                                        |
+------------------+----------+----------------------------------------+

**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 \_\_\_\_\_\_\_\_\_, (Local Time) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
\_\_\_\_\_\_\_(year), 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.

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

Date

**Preparation of Instructions to Bidders**

**Rural Utilities Service**

**Water and Waste Programs**

**December 1997**

PART I: USE OF THIS DOCUMENT

This guidance is to be used in association with the following Engineers
Joint Contract Documents Committee documents:

1.  Guide to Preparation of Instructions to Bidders (No. 1910-12, 1996
    Edition),

2.  Standard Form of Agreement Between Owner and Contractor on the Basis
    of Stipulated Price, Funding Agency Edition (No. 1910-8-1-FA, 1997
    Edition), and

3.  Standard General Conditions of the Construction Contract Funding
    Agency Edition (No. 1910-8-FA, 1997 Edition).

The Engineers Joint Contract Documents Committee (EJCDC) standard
documents form the foundation for preparation of a integrated set of
construction documents. Refer to the EJCDC documents for basic
information. The EJCDC document Owner's Instructions Regarding Bidding
Procedures and Construction Contract Documents, 1910-29 (1996 Edition)
and Attachment 26-2 of this Bulletin 1780-26, can assist the Owner,
Engineer, and Agency in determining the procedures to be used on a
specific project.

Because the EJCDC documents are fully integrated, when making a
modification in one document you should ensure that appropriate
modifications are made in all effected documents. It is the Rural
Utilities Service (RUS) policy that the applicants use the EJCDC
documents with minimal modification. However, RUS recognizes each
project is unique and that modifications may be required to satisfy
specific project requirements or State statutes.

Part II of this document is a model set of Instructions to Bidders that
can be used as the starting point for preparing the actual Instructions
to Bidders for RUS water and waste projects. Any additions should follow
the same format as the base document.

*Text enclosed in {} indicates a choice is necessary or information must
be inserted. This information must be provided and the {} eliminated
prior to submittal to Rural Development for review.* One critical area
that requires additional information is Article 14 - Basis of Bid,
Evaluation of Bids. This information will vary whether bid is Lump Sum
or Unit Price. If the Evaluation of Bids involves anything other than
checking the contractor's qualifications and calculation of unit prices,
such as additive alternates, life-cycle costs, etc., the evaluation
process must be clearly stated (given the bid documents, a third party
would identify the same Successful Bidder as the Engineer) in the
Instructions to Bidders.

PART II: SUGGESTED LANGUAGE FOR INSTRUCTIONS TO BIDDERS

**Instructions to Bidders**

ARTICLE 1 - DEFINED TERMS

1.01 Terms used in these Instructions to Bidders will have the meanings
indicated in the General Conditions and Supplementary Conditions.
Additional terms used in these Instructions to Bidders have the meanings
indicated below which are applicable to both the singular and plural
thereof:

A. Bidder\--The individual or entity who submits a Bid directly to
OWNER.

B. Issuing Office\--The office from which the Bidding Documents are to
be issued and where the bidding procedures are to be administered.

C. Successful Bidder\--The lowest responsible Bidder submitting a
responsive Bid to whom OWNER (on the basis of OWNER's evaluations as
hereinafter provided) makes an award.

ARTICLE 2 - COPIES OF BIDDING DOCUMENTS

2.01 Complete sets of the Bidding Documents in the number and for the
deposit sum, if any, stated in the Advertisement or Invitation to Bid
may be obtained from the Issuing Office. The deposit will be refunded to
each document holder of record who returns a complete set of Bidding
Documents in good condition within 30 days after opening of Bids.

2.02 Complete sets of Bidding Documents must be used in preparing Bids;
neither OWNER nor ENGINEER assumes any responsibility for errors or
misinterpretations resulting from the use of incomplete sets of Bidding
Documents.

2.03 OWNER and ENGINEER in making copies of Bidding Documents available
on the above terms do so only for the purpose of obtaining Bids for the
Work and do not confer a license or grant for any other use.

ARTICLE 3 - QUALIFICATIONS OF BIDDERS

3.01 To demonstrate Bidder's qualifications to perform the Work prior to
award, within five days of OWNER's request, Bidder shall submit written
evidence such as financial data, previous experience, present
commitments, and such other data as may be called for below.

> *{A. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_}*
>
> *{B. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_}*

ARTICLE 4 - EXAMINATION OF BIDDING DOCUMENTS, OTHER RELATED DATA, AND
SITE

4.01 Subsurface and Physical Conditions

> A. The Supplementary Conditions identify:
>
> 1\. Those reports of explorations and tests of subsurface conditions
> at or contiguous to the Site that Engineer has used in preparing the
> Bidding Documents.
>
> 2\. Those drawings of physical conditions in or relating to existing
> surface and subsurface structures at or contiguous to the Site (except
> Underground Facilities) that ENGINEER has used in preparing the
> Bidding Documents.

B. Copies of reports and drawings referenced in paragraph 4.01.A will be
made available by OWNER to any Bidder on request. Those reports and
drawings are not part of the Contract Documents, but the "technical
data" contained therein upon which Bidder is entitled to rely as
provided in paragraph 4.02 of the General Conditions has been identified
and established in paragraph 4.02 of the Supplementary Conditions.
Bidder is responsible for any interpretation or conclusion Bidder draws
from any "technical data" or any other data, interpretations, opinions,
or information contained in such reports or shown or indicated in such
drawings.

4.02 Underground Facilities

A. Information and data shown or indicated in the Bidding Documents with
respect to existing Underground Facilities at or contiguous to the Site
is based upon information and data furnished to OWNER and ENGINEER by
owners of such Underground Facilities, including OWNER, or other.

4.03 Hazardous Environmental Condition

A. The Supplementary Conditions identify those reports and drawings
relating to a Hazardous Environmental Condition identified at the Site,
if any, that ENGINEER has used in preparing the Bidding Documents.

B. Copies of reports and drawings referenced in paragraph 4.03.A will be
made available by OWNER to any Bidder on request. Those reports and
drawings are not part of the Contract Documents, but the "technical
data" contained therein upon which Bidder is entitled to rely as
provided in paragraph 4.06 of the General Conditions has been identified
and established in paragraph 4.06 of the Supplementary Conditions.
Bidder is responsible for any interpretation or conclusion Bidder draws
from any "technical data" or any other data, interpretations, opinions,
or information contained in such reports or shown or indicated in such
drawings.

4.04 Provisions concerning responsibilities for the adequacy of data
furnished to prospective Bidders with respect to subsurface conditions,
other physical conditions and Underground Facilities, and possible
changes in the Bidding Documents due to differing or unanticipated
conditions appear in paragraphs 4.02, 4.03, and 4.04 of the General
Conditions. Provisions concerning responsibilities for the adequacy of
data furnished to prospective Bidders with respect to a Hazardous
Environmental Condition at the Site, if any, and possible changes in the
Contract Documents due to any Hazardous Environmental Condition
uncovered or revealed at the Site which was not shown or indicated in
the Drawings or Specifications or identified in the Contract Documents
to be within the scope of the Work appear in paragraph 4.06 of the
General Conditions.

4.05 On request, OWNER will provide Bidder access to the Site to conduct
such examinations, investigations, explorations, tests, and studies as
Bidder deems necessary for submission of a Bid. Bidder shall fill all
holes and clean up and restore the Site to its former condition upon
completion of such explorations, investigations, tests, and studies.

4.06 Reference is made to Article 7 of the Supplementary Conditions for
the identification of the general nature of other work that is to be
performed at the Site by OWNER or others (such as utilities and other
prime contractors) that relates to the Work for which a Bid is to be
submitted. On request, OWNER will provide to each Bidder for examination
access to or copies of Contract Documents (other than portions thereof
related to price) for such other work.

4.07 It is responsibility of each Bidder before submitting a Bid to:

A. Examine and carefully study the Bidding Documents, including any
Addenda and the other related data identified in the Bidding Documents;

B. Visit the Site and become familiar with and satisfy Bidder as to the
general, local, and Site conditions that may affect cost, progress, and
performance of the Work;

C. Become familiar with and satisfy Bidder as to all Federal, State, and
local Laws and Regulations that may affect cost, progress, or
performance of the Work;

D. Carefully study all reports of explorations and tests of subsurface
conditions at or contiguous to the Site and all drawings of physical
conditions in or relating to existing surface or subsurface structures
at or contiguous to the Site (except Underground Facilities) which have
been identified in the Supplementary Conditions as provided in paragraph
4.02 of the General Conditions, and carefully study all reports and
drawings of a Hazardous Environmental Condition, if any, at the Site
which have been identified in the Supplementary Conditions as provided
in paragraph 4.06 of the General Conditions;

E. Obtain and carefully study (or assume responsibility for doing so)
all additional or supplementary examinations, investigations,
explorations, tests, studies, and data concerning conditions (surface,
subsurface, and Underground Facilities) at or contiguous to the Site
which may affect cost, progress, or performance of the Work or which
relate to any aspect of the means, methods, techniques, sequences, and
procedures of construction to be employed by Bidder, including any
specific means, methods, techniques, sequences, and procedures of
construction expressly required by the Bidding Documents, and safety
precautions and programs incident thereto;

F. Agree at the time of submitting its Bid that no further examinations,
investigations, explorations, tests, studies, or data are necessary for
the determination of its Bid for performance of the Work at the price
bid and within the times and in accordance with the other terms and
conditions of the Bidding Documents;

G. Become aware of the general nature of the work to be performed by
OWNER and others at the Site that relates to the Work as indicated in
the Bidding Documents;

H. Correlate the information known to Bidder, information and
observations obtained from visits to the Site, reports and drawings
identified in the Bidding Documents, and all additional examinations,
investigations, explorations, tests, studies, and data with the Bidding
Documents;

I. Promptly give ENGINEER written notice of all conflicts, errors,
ambiguities, or discrepancies that Bidder discovers in the Bidding
Documents and confirm that the written resolution thereof by ENGINEER is
acceptable to Bidder; and

J. Determine that the Bidding Documents are generally sufficient to
indicate and convey understanding of all terms and conditions for the
performance of the Work.

4.08 The submission of a Bid will constitute an incontrovertible
representation by Bidder that Bidder has complied with every requirement
of this Article 4, that without exception the Bid is premised upon
performing and furnishing the Work required by the Bidding Documents and
applying any specific means, methods, techniques, sequences, and
procedures of construction that may be shown or indicated or expressly
required by the Bidding Documents, that Bidder has given ENGINEER
written notice of all conflicts, errors, ambiguities, and discrepancies
that Bidder has discovered in Bidding Documents and the written
resolutions thereof by ENGINEER are acceptable to Bidder, and that the
Bidding Documents are generally sufficient to indicate and convey
understanding of all terms and conditions for performing and furnishing
the Work.

ARTICLE 5 - PRE-BID CONFERENCE

5.01 A pre-Bid conference will be held at *{\_\_\_\_\_\_\_} {a.m.}{p.m.}
on {\_\_\_\_\_\_\_\_} at {\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_}*.
Representatives of OWNER and ENGINEER will be present to discuss the
Project. Bidders are encouraged to attend and participate in the
conference. ENGINEER will transmit to all prospective Bidders of record
such Addenda as ENGINEER considers necessary in response to questions
arising at the conference. Oral statements may not be relied upon and
will not be binding or legally effective.

ARTICLE 6 - SITE AND OTHER AREAS

6.01 The Site is identified in the Bidding Documents. All additional
lands and access thereto required for temporary construction facilities,
construction equipment, or storage of materials and equipment to be
incorporated in the Work are to be obtained and paid for by CONTRACTOR.
Easement for permanent structures or permanent changes in existing
facilities are to be obtained and paid for by OWNER unless otherwise
provided in the Bidding Documents.

ARTICLE 7 - INTERPRETATIONS AND ADDENDA

7.01 All questions about the meaning or intent of the Bidding Documents
are to be submitted to ENGINEER in writing. Interpretations or
clarifications considered necessary by ENGINEER in response to such
questions will be issued by Addenda mailed or delivered to all parties
recorded by ENGINEER as having received the Bidding Documents. Questions
received less than ten days prior to the date for opening of Bids may
not be answered. Only questions answered by Addenda will be binding.
Oral and other interpretations or clarifications will be without legal
effect.

7.02 Addenda may be issued to clarify, correct, or change the Bidding
Documents as deemed advisable by OWNER or ENGINEER.

ARTICLE 8 - BID SECURITY

8.01 A Bid must be accompanied by Bid security made payable to OWNER in
an amount of 5 % of Bidder's *{maximum}* Bid price and in the form of a
certified or bank check or a Bid Bond (EJCDC No. 1910-28-C, 1996
Edition) issued by a surety meeting the requirements of paragraphs 5.01
and 5.02 of the General Conditions.

8.02 The Bid security of the Successful Bidder will be retained until
such Bidder has executed the Contract Documents, furnished the required
contract security and met the other conditions of the Notice of Award,
whereupon the Bid security will be returned. If the Successful Bidder
fails to execute and deliver the Contract Documents and furnish the
required contract security within 15 days after the Notice of Award,
OWNER may annul the Notice of Award and the Bid security of that Bidder
will be Forfeited. The Bid security of other Bidders whom OWNER believes
to have a reasonable chance of receiving the award may be retained by
OWNER until the earlier of *{seven}* days after the Effective Date of
the Agreement or *{61}* days after the Bid opening, whereupon Bid
security furnished by such Bidders will be returned.

8.03 Bid security of other Bidders whom OWNER believes do not have a
reasonable chance of receiving the award will be returned within
*{seven}* days after the Bid opening.

ARTICLE 9 - CONTRACT TIMES

9.01 The number of days within which, or the dates by which, the Work is
to be (a) Substantially Completed and (b) also completed and ready for
final payment are set forth in the Agreement.

ARTICLE 10 -LIQUIDATED DAMAGES

10.01 Provisions for liquidated damages, if any, are set forth in the
Agreement.

ARTICLE 11 - SUBSTITUTE AND "OR-EQUAL" ITEMS

11.01 The Contract, if awarded, will be on the basis of materials and
equipment specified or described in the Bidding Documents, or "or-equal"
materials and equipment as defined in paragraph 6.05 of the General
Conditions, or those substitute or materials and equipment approved by
the ENGINEER and identified by Addendum. The materials and equipment
described in the Bidding Documents establish a standard of required
type, function and quality to be met by any proposed substitute or
"or-equal" item. Request for ENGINEER's clarification of materials and
equipment considered "or-equal" prior to the Effective Date of the
Agreement must be received by the ENGINEER at least 5 days prior to the
date for receipt of Bids. No item of material or equipment will be
considered by ENGINEER as a substitute unless written request for
approval has been submitted by Bidder and has been received by ENGINEER
at least 15 days prior to the date for receipt of Bids. Each request
shall conform to the requirements of paragraph 6.05 of the General
Conditions. The burden of proof of the merit of the proposed item is
upon the Bidder. ENGINEER's decision of approval or disapproval of a
proposed item will be final. If ENGINEER approves any proposed
substitute item, such approval will be set forth in an Addendum issued
to all prospective Bidders. Bidders shall not rely upon approvals made
in any other manner.

ARTICLE 12 - SUBCONTRACTORS, SUPPLIERS, AND OTHERS

12.01 If the Supplementary Conditions require the identity of certain
Subcontractors, Suppliers, individuals, or entities to be submitted to
OWNER in advance of a specified date prior to the Effective Date of the
Agreement, the apparent Successful Bidder, and any other Bidder so
requested, shall within five days after Bid opening, submit to OWNER a
list of all such Subcontractors, Suppliers, individuals, or entities
proposed for those portions of the Work for which such identification is
required. Such list shall be accompanied by an experience statement with
pertinent information regarding similar projects and other evidence of
qualification for each such Subcontractor, Supplier, individual, or
entity if requested by OWNER. IF OWNER or ENGINEER, after due
investigation, has reasonable objection to any proposed Subcontractor,
Supplier, individual, or entity, OWNER may, before the Notice of Award
is given, request apparent Successful Bidder to submit a substitute,
without an increase in the Bid.

12.02 If apparent Successful Bidder declines to make any such
substitution, OWNER may determine such Bidder to be nonresponsive and
reject the Bid. Declining to make requested substitutions will not
constitute grounds for forfeiture of the Bid security of any Bidder. Any
Subcontractor, Supplier, individual, or entity so listed and against
which OWNER and ENGINEER makes no written objection prior to the giving
of the Notice of Award will be deemed acceptable to OWNER and ENGINEER
subject to revocation of such acceptance after the Effective Date of the
Agreement as provided in paragraph 6.06 of the General Conditions.

12.03 CONTRACTOR shall not be required to employ any Subcontractor,
Supplier, individual, or entity against whom CONTRACTOR has reasonable
objection.

ARTICLE 13 - PREPARATION OF BID

13.01 The Bid form is included with the Bidding Documents. Additional
copies may be obtained from ENGINEER.

13.02 All blanks on the Bid form shall be completed by printing in ink
or by typewriter and the Bid signed. A Bid price shall be indicated for
each *{section, Bid item, alternative, adjustment unit price item, and
unit price item}* listed therein, or the words "No Bid," "No Change," or
"Not Applicable" entered.

13.03 A Bid by a corporation shall be executed in the corporate name by
the president or a vice-president or other corporate officer accompanied
by evidence of authority to sign. If required by State where work is to
be performed, the corporate seal shall be affixed and attested by the
secretary or an assistant secretary. The corporate address and state of
incorporation shall be shown below the signature.

13.04 A Bid by a partnership shall be executed in the partnership name
and signed by a partner (whose title must appear under the signature),
accompanied by evidence of authority to sign. The official address of
the partnership shall be shown below the signature.

13.05 A Bid by a limited liability company shall be executed in the name
of the firm by a member and accompanied by evidence of authority to
sign. The state of formation of the firm and the official address of the
firm must be shown below the signature.

13.06 A Bid by an individual shall show the Bidder's name and official
address.

13.07 A Bid by a joint venture shall be executed by each joint venturer
in the manner indicated on the Bid form. The official address of the
joint venture must be shown below the signature.

13.08 All names shall be typed or printed in ink below the signatures.

13.09 The Bid shall contain an acknowledgment of receipt of all Addenda,
the numbers of which shall be filled in on the Bid form.

13.10 The address and telephone number for communication regarding the
Bid shall be shown.

13.11 The Bid shall contain evidence of Bidder's authority and
qualification to do business in the state where the Project is located
or covenant to obtain such qualification prior to award of the Contract.
Bidder's state contractor license number for the state of the Project,
if any, shall also be shown on the Bid form.

ARTICLE 14 - BASIS OF BID; EVALUATION OF BIDS

{Owner and Engineer must choose the applicable items under this article
and delete the remaining paragraphs}

14.01 Lump Sum

A. Bidders shall submit a Bid on lump sum basis as set forth in the Bid
form.

*{or}*

A. Bidders shall submit a Bid on a lump sum basis for the base Bid *{and
include a separate price for each alternate described in the Bidding
Documents as provided for in the Bid form. The price for each alternate
will be the amount added to the base Bid if OWNER selects the alternate.
In the evaluation of Bids, alternates will be applied in the same order
as listed in the Bid form}*.

*{or}*

14.01 Unit Price

A. Bidders shall submit a Bid on a unit price basis for each item of
Work listed in the Bid schedule.

B. The total of all estimated prices will be determined as the sum of
the products of the estimated quantity of each item and the unit price
Bid for the item. The final quantities and Contract Price will be
determined in accordance with paragraph 11.03 of the General Conditions.

C. Discrepancies between the multiplication of units of Work and unit
prices will be resolved in favor of the unit prices. Discrepancies
between the indicated sum of any column of figures and the correct sum
thereof will be resolved in favor of the correct sum. Discrepancies
between words and figures will be resolved in favor of the words.

ARTICLE 15 - SUBMITTAL OF BID

15.01 Each prospective Bidder is furnished one copy of the Bidding
Documents with one separate unbound copy each of the Bid form, and the
Bid Bond form. The unbound copy of the Bid form is to be completed and
submitted with the Bid security and the following data:

A. If Bid amount exceeds \$10,000, signed Compliance Statement (RD
400-6). Refer to specific equal opportunity requirements set forth in
paragraph 18.10 of the General Conditions.

B. If Bid amount exceeds \$25,000, signed Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower
Tier Covered Transactions (AD-1048)

C. If Bid amount exceeds \$100,000, signed RD Instruction 1940-Q,
Exhibit A-1, Certification for Contracts, Grants, and Loans. Refer to
paragraph 18.11 of the General Conditions.

*{D.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_}*

15.02 A Bid shall be submitted no later than the date and time
prescribed and at the place indicated in the advertisement or invitation
to Bid and shall be enclosed in an opaque sealed envelope plainly marked
with the Project title (and, if applicable, the designated portion of
the Project for which the Bid is submitted), the name and address of
Bidder, and shall be accompanied by the Bid security and other required
documents. If a Bid is sent by mail or other delivery system, the sealed
envelope containing the Bid shall be enclosed in a separate envelope
plainly marked on the outside with the notation "BID ENCLOSED." A mailed
Bid shall be addressed
to*{\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_}.*

ARTICLE 16 - MODIFICATION AND WITHDRAWAL OF BID

16.01 A Bid may be modified or withdrawn by an appropriate document duly
executed in the manner that a Bid must be executed and delivered to the
place where Bids are to be submitted prior to the date and time for the
opening of Bids.

16.02 If within 24 hours after Bids are opened any Bidder files a duly
signed written notice with OWNER and promptly thereafter demonstrates to
the reasonable satisfaction of OWNER that there was a material and
substantial mistake in the preparation of its Bid, that Bidder may
withdraw its Bid, and the Bid security will be returned. Thereafter, if
the Work is rebid or negotiated, that Bidder will be disqualified from
further bidding on the Work.

ARTICLE 17 - OPENING OF BIDS

17.01 Bids will be opened at the time and place indicated in the
Advertisement for Bids and, unless obviously non-responsive, read aloud
publicly. An abstract of the amounts of the base Bids and major
alternates, if any, will be made available to Bidders after the opening
of Bids.

ARTICLE 18 - BIDS TO REMAIN SUBJECT TO ACCEPTANCE

18.01 All Bids will remain subject to acceptance for the period of time
stated in the Bid form, but OWNER may, in its sole discretion, release
any Bid and return the Bid security prior to the end of this period.

ARTICLE 19 - AWARD OF CONTRACT

19.01 OWNER reserves the right to reject any or all Bids, including
without limitation, nonconforming, nonresponsive, unbalanced, or
conditional Bids. OWNER further reserves the right to reject the Bid of
any Bidder whom it finds, after reasonable inquiry and evaluation, to be
non-responsible. OWNER also reserves the right to waive all
informalities not involving price, time, or changes in the Work and to
negotiate contract terms with the Successful Bidder.

19.02 More than one Bid for the same Work from an individual or entity
under the same or different names will not be considered. Reasonable
grounds for believing that any Bidder has an interest in more than one
Bid for the Work may be cause for disqualification of that Bidder and
the rejection of all Bids in which that Bidder has an interest.

19.03 In evaluating Bids, OWNER will consider whether or not the Bids
comply with the prescribed requirements, and such alternates, unit
prices and other data, as may be requested in the Bid Form or prior to
the Notice of Award.

19.04 In evaluating Bidders, OWNER will consider the qualifications of
Bidders and may consider the qualifications and experience of
Subcontractors, Suppliers, and other individuals or entities proposed
for those portions of the Work for which the identity of Subcontractors,
Suppliers, and other individuals or entities must be submitted as
provided in the Supplementary Conditions.

19.05 OWNER may conduct such investigations as OWNER deems necessary to
establish the responsibility, qualifications, and financial ability of
Bidders, proposed Subcontractors, Suppliers, individuals, or entities to
perform the Work in accordance with the contract Documents.

19.06 If the Contract is to be awarded, OWNER will award the Contract to
the responsible Bidder whose Bid, conforming with all the material terms
and conditions of the Advertisement for Bids, is lowest, price and other
factors considered.

ARTICLE 20 - CONTRACT SECURITY AND INSURANCE

20.01 Article 5 of the General Conditions, as may be modified by the
Supplementary Conditions, sets forth OWNER's requirements as to
performance Bond, payment Bond, and insurance. When the Successful
Bidder delivers the executed Agreement to OWNER, it must be accompanied
by such Bonds.

ARTICLE 21 - SIGNING OF AGREEMENT

21.01 When OWNER gives a Notice of Award to the Successful Bidder, it
shall be accompanied by the required number of unsigned counterparts of
the Agreement with the other contract Documents which are identified in
the Agreement as attached thereto. Within 15 days thereafter, Successful
Bidder shall sign and deliver the required number of counterparts of the
Agreement and attached documents to OWNER. Within *{ten}* days
thereafter, OWNER shall deliver one fully signed counterpart to
Successful Bidder with a complete set of the Drawings with appropriate
identification.

21.02 This Contract is expected to be funded in part with funds provided
by the United States Department of Agriculture, Rural Utilities Service
(RUS). Refer to Article 18 of the General Conditions for information on
the Federal Requirements.

21.03 Concurrence by RUS in the award of the Contract is required before
the Contract is effective.

*{ARTICLE 22 - SALES AND USE TAXES*

*22.01 OWNER is exempt from \_\_\_\_\_\_\_\_\_\_ State sales and use
taxes on materials and equipment to be incorporated in the Work.
Exemption No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. Said taxes shall not be
included in the Bid. Refer to paragraph 6.10 of the Supplementary
Conditions for additional information.}*

*{ARTICLE 23 - DAVIS-BACON AND RELATED ACTS*

*23.01 The Work under this contract is subject to the provisions of the
Davis-Bacon and Related Acts, as published in the U.S. Department of
Labor regulations (29 CFR Parts 1, 3, and 5). Refer to paragraph 18 of
the Supplementary Conditions for the Labor Standards Provisions clauses
that are part of this Contract.}*

### Preparation of Supplementary Conditions

**Rural Utilities Service**

**December 1997**

PART I: USE OF THIS DOCUMENT

This guidance is to be used only in association with the following
Engineers Joint Contract Documents Committee (EJCDC) documents:

1.  Guide to Preparation of Supplementary Conditions (No. 1910-17, 1996
    Edition),

2.  Standard Form of Agreement Between Owner and Contractor on the Basis
    of Stipulated Price, Funding Agency Edition (No. 1910-8-1-FA, 1997
    Edition), and

3.  Standard General Conditions of the Construction Contract Funding
    Agency Edition (No. 1910-8-FA, 1997 Edition).

The EJCDC Guide to Preparation of Supplementary Conditions is
coordinated with the Standard Edition documents. Therefore, you must
make certain the paragraph references to the General Conditions, Funding
Agency Edition, are accurate. Refer to the EJCDC documents for basic
information. The EJCDC document Owner's Instructions Regarding Bidding
Procedures and Construction Contract Documents, 1910-29 (1996 Edition)
and Attachment 26-2 of this Bulletin 1780-26, can assist the Owner,
Engineer, and Agency in determining the procedures to be used on a
specific project.

Because the EJCDC documents are fully integrated, when making a
modification in one document you should ensure that appropriate
modifications are made in all effected documents. It is the Rural
Utilities Service (RUS) policy that the applicants use the EJCDC
documents with minimal modification. However, RUS recognizes each
project is unique and that modifications may be required to satisfy
specific project requirements or State statutes.

Part II of this document is a model set of Supplementary Conditions that
can be used as the starting point for preparing the actual Supplementary
Conditions for RUS water and waste projects. Any additions or
modifications should follow the same format as the base document.

Special attention should be focused on the types and amounts of
insurance, and those to listed as additional insureds under paragraph
5.04. These should be reviewed for each project in terms of the specific
conditions associated with that project and the risks involved, and then
the paragraphs in the Supplementary Conditions drafted accordingly. RUS
does not support unfair allocation of risk or the burden of excessive
insurance coverage.

*Text enclosed in {} indicates a choice is necessary or information must
be inserted. This information must be provided and the {} eliminated
prior to submittal to Rural Development for review.*

PART II: SUGGESTED LANGUAGE FOR SUPPLEMENTARY CONDITIONS

**Supplementary Conditions**

These Supplementary Conditions amend or supplement the Standard General
Conditions of the Construction Contract Funding Agency Edition (No.
1910-8-FA, 1997 Edition) and other provisions of the Contract Documents
as indicated below. All provisions which are not so amended or
supplemented remain in full force and effect.

The terms used in these Supplementary Conditions will have the meanings
indicated in the General

Conditions. Additional terms used in these Supplementary Conditions have
the meanings indicated below, which are applicable to both the singular
and plural thereof.

SC-1.01.A.4. Add the following language to the end of paragraph
1.01.A.4:

The Application for Payment form to be used on this Project is *{include
copy of blank form}*.

SC-1.01.A.10. Add the following language to the end of paragraph
1.01.A.10:

The Change Order form to be used on this Project is *{include copy of
blank form}*.

SC-1.01.A.21. Add the following language to the end of paragraph
1.01.A.21:

The ENGINEER's Consultants on this project are: *{list all
consultants}*.

SC-2.03.A. Delete paragraph 2.03.A in its entirety and insert the
following in its place:

A. The Contract Times will commence to run on the day indicated in the
Notice to Proceed. A Notice to Proceed may be given at any time within
*{30}* days after the Effective Date of the Agreement.

*{SC-4.02. Add the following new paragraphs immediately after paragraph
4.02.B:*

*C. In the preparation of Drawings and Specifications, ENGINEER or
ENGINEER's Consultants relied upon the following reports of exploration
and tests of subsurface conditions at the Site:*

> *1. See EJCDC No. 1910-17 for examples.*

*D. In the preparation of Drawings and Specifications, ENGINEER or
ENGINEER's Consultants relied upon the following drawings of physical
conditions in or relating to existing surface and subsurface structures
(except Underground Facilitates) which are at or contiguous to the
Site:*

> *1. See EJCDC No. 1910-17 for examples.*

*E. Copies of reports and drawings itemized in SC-4.02.C and SC-4.02.D
that are not included with Bidding Documents may be examined at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
during regular business hours. These reports and drawings are not part
of the Contract Documents, but the "technical data" contained therein
upon which the CONTRACTOR may rely as identified and established above
are incorporated therein by reference. CONTRACTOR is not entitled to
rely upon other information and data utilized by ENGINEER and ENGINEER's
Consultants in the preparation of the Drawings and Specifications.}*

*{SC-4.06. Add the following new paragraphs immediately after paragraph
4.06.A:*

> *1. In the preparation of Drawings and Specifications, ENGINEER or
> ENGINEER's Consultants relied upon the following reports of Hazardous
> Environmental Conditions at the Site:*
>
> *a. See EJCDC No. 1910-17 for examples.*
>
> *2. In the preparation of Drawings and Specifications, ENGINEER or
> ENGINEER's Consultants relied upon the following drawings of Hazardous
> Environmental Conditions which are at or contiguous to the Site:*
>
> *a. See EJCDC No. 1910-17 for examples.*
>
> *3. Copies of reports and drawings itemized in SC-4.06.A.1 and
> SC-4.06.A.2 that are not included with Bidding Documents may be
> examined at
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
> during regular business hours. These reports and drawings are not part
> of the Contract Documents, but the "technical data" contained therein
> upon which the CONTRACTOR may rely as identified and established above
> are incorporated therein by reference. CONTRACTOR is not entitled to
> rely upon other information and data utilized by ENGINEER and
> ENGINEER's Consultants in the preparation of the Drawings and
> Specifications.}*

{The amounts of coverage for each type of insurance under paragraph 5.04
are considered to be the minimum amounts that should be used to provide
the OWNER adequate protection. These amounts should be reviewed in the
context of the specific project and adjusted accordingly.}

SC-5.04. Add the following new paragraph immediately after paragraph
5.04.B:

C. The limits of liability for insurance required by paragraph 5.04 of
the General Conditions shall provide coverage for not less than the
following amounts or greater where required by Laws and Regulations:

> 1\. Workers' Compensation, and related coverages under paragraphs
> 5.04.A.1 and A.2 of the General Conditions:
>
> a\. State: Statutory
>
> b\. Applicable Federal
>
> (e.g., Longshoremen's) Statutory
>
> c\. Employer's Liability *{\$ 500,000}*
>
> 2\. Contractor's General Liability under paragraphs 5.04.A.3 and A.6
> of the General Conditions which shall include completed operations and
> product liability coverages and eliminate the exclusion with respect
> to property under the care, custody, and control of the Contractor:
>
> a\. General Aggregate *{\$ 2,000,000}*
>
> b\. Products - Completed
>
> Operations Aggregate *{\$ 1,000,000}*
>
> c\. Personal and Advertising
>
> Injury *{\$ 1,000,000}*
>
> d\. Each Occurrence
>
> (Bodily Injury and
>
> Property Damage) *{\$ 1,000,000}*

e\. Property Damage liability insurance will provide Explosion,
Collapse, and Underground coverages where applicable.

> f\. Excess or Umbrella Liability
>
> 1\) General Aggregate *{\$ 5,000,000}*
>
> 2\) Each Occurrence *{\$ 5,000,000}*

3\. Automobile Liability under paragraph 5.40.A.6 of the General
Conditions:

> a\. Combined Single
>
> Limit of *{\$ 1,000,000}*
>
> 4\. The Contractual Liability coverage required by paragraph 5.04.B.4
> of the General Conditions shall be provided by the CONTRACTOR as part
> of the CONTRACTOR'S General Liability coverage.
>
> *{5. List additional types and amounts of insurance that may be
> required by OWNER.}*
>
> *{6. List by name other persons or entities to be included on policy
> as additional insureds.}*

*{SC-5.06.A. In the case of multiple prime contractors on a single Site
(multiple prime contractors for the Project may each need to provide
property insurance), it is necessary to define the Contractor
responsible for providing the Property Insurance. If there is only one
contractor on the site, do not modify paragraph 5.06.A of the General
Conditions.}*

*{SC-5.06.A.1. List by name other persons or entities to be included on
policy as additional insureds.}*

SC-6.05.C. Amend the paragraph by making two subparagraphs under the
title C. Engineer's Evaluation. The paragraph text is retitled, 6.05.C.2
After Effective Date of Agreement. A new paragraph is added before this
paragraph to read as follows:

> 1\. During Bidding. The Contract, if awarded, will be on the basis of
> materials and equipment specified or described in the Bidding
> Documents, or "or-equal" materials and equipment as defined in
> paragraph 6.05 of the General Conditions, or those substitute or
> materials and equipment approved by the ENGINEER and identified by
> Addendum. The materials and equipment described in the Bidding
> Documents establish a standard of required type, function, and quality
> to be met by any proposed substitute or "or-equal" item. Request for
> ENGINEER's clarification of materials and equipment considered
> "or-equal" prior to the Effective Date of the Agreement must be
> received by the ENGINEER at least 5 days prior to the date for receipt
> of Bids. No item of material or equipment will be considered by
> ENGINEER as a substitute unless written request for approval has been
> submitted by Bidder and has been received by ENGINEER at least 15 days
> prior to the date for receipt of Bids. Each request shall conform to
> the requirements of paragraph 6.05 of the General Conditions. The
> burden of proof of the merit of the proposed item is upon the Bidder.
> ENGINEER's decision of approval or disapproval of a proposed item will
> be final. If ENGINEER approves any proposed substitute item, such
> approval will be set forth in an Addendum issued to all prospective
> Bidders. Bidders shall not rely upon approvals made in any other
> manner.

*{SC-6.10. If OWNER qualifies for sales or use tax exemptions, the
language should be inserted here and coordinated with the language of
Article 22 of the Instructions to Bidders.}*

*{SC-7.01.A. If the OWNER is planning to have Work performed by more
than one prime contractor, by OWNER, or others, it should be
specifically stated here.}*

*{When multiple prime contractors are working on a single Site, the
following modification should be made.*

*SC-7.02.A.1. Delete paragraphs 7.02.A.1-3 in their entirety and insert
the following:*

> *1. The \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ CONTRACTOR shall have
> the authority and* be *responsible for coordination of the activities
> among the other prime contractors and subcontractors on the Site to
> ensure a safe, efficient working environment. This authority covers
> scheduling delivery of materials, storage of materials, sequencing of
> construction involving different crafts, resolving interface issues
> between crafts, scheduling testing, and all other aspects of the Work
> that do not impact the design or function of the Work.}*

SC-9.03.A. Add the following language at the end of paragraph 9.03:

The Duties, Responsibilities, and Limitations of Authority of the
Resident Project Representative will be as stated in Exhibit D of the
OWNER-ENGINEER Agreement, 1910-1-FA, 1997 Edition, as amended and
executed for this specific Project. *{If anyone other than the Engineer
is providing the Resident Project Representative, this should be stated
here.}*

SC-18.08 Delete paragraph 18.08.A in its entirety and insert the
following in its place:

A. Where this Contract exceeds \$100,000 CONTRACTOR shall comply with
all the requirements of the Clean Air Act (42 U.S.C. §7414 ) and Section
308 of the Water Pollution Control Act (33 U.S.C. §1318) relating to
inspection, monitoring, entry, reports, and information, as well as all
other requirements specified in Section 114 of the Clean Air Act and
Section 308 of the Water Pollution Control Act and all regulations and
guidelines issued thereunder after the award of the contract. In so
doing the Contractor further agrees:

1\. As a condition for the award of contract, to notify the Owner of the
receipt of any communication from the Environmental Protection Agency
(EPA) indicating that a facility to be utilized in the performance of
the contract is under consideration to be listed on the EPA list of
Violating Facilities. Prompt notification is required prior to contract
award.

2\. To certify that any facility to be utilized in the performance of
any nonexempt contractor subcontract is not listed on the EPA list of
Violating Facilities pursuant to 40 CFR Part 32 as of the date of
contract award.

3\. To include or cause to be included the above criteria and the
requirements in every nonexempt subcontract and that the Contractor will
take such action as the Government may direct as a means of enforcing
such provisions.

*{SC-18. This does not apply to RUS financed projects, but when another
funding source requires the OWNER comply with the Davis-Bacon Act, add a
new paragraph 18.13 immediately after paragraph 18.12 and coordinate the
language with Article 23 of the Instructions to Bidders.*

*18.13. Davis-Bacon and Related Acts*

*A. During the performance of the Work under this Contract the
CONTRACTOR must abide by the Labor Standards Provisions of the
Davis-Bacon and Related Acts.*

> *1. Wage Determination. Insert wage determination.*
>
> *2. Labor Standards Provisions. The Labor Standards Provisions as
> stated in RD Instruction 1940-C, Exhibit A are hereby incorporated
> into this Contract. The CONTRACTOR will be responsible for complying
> with these provisions and the OWNER and Agency will monitor
> compliance. Suggest copy of Exhibit A be included in documents.}*

**Preparation of Bid Form**

**Rural Utilities Service**

**December 1997**

PART I: USE OF THIS DOCUMENT

This guidance is to be used only in association with the following
Engineers Joint Contract Documents Committee (EJCDC) documents:

1.  Guide to Preparation of Bid Form (No. 1910-18, 1996 Edition),

2.  Standard Form of Agreement Between Owner and Contractor on the Basis
    of Stipulated Price, Funding Agency Edition (No. 1910-8-1-FA, 1997
    Edition), and

3.  Standard General Conditions of the Construction Contract Funding
    Agency Edition (No. 1910-8-FA, 1997 Edition).

The EJCDC Guide to Preparation of Bid Form is coordinated with the
Standard Edition documents. Therefore, you must make certain the
paragraph references to the Owner-Contractor Agreement and General
Conditions, Funding Agency Editions, are accurate. Refer to the EJCDC
documents for basic information. The EJCDC document Owner's Instructions
Regarding Bidding Procedures and Construction Contract Documents,
1910-29 (1996 Edition) and Attachments 26-2 and 26-5 of this Bulletin
1780-26, can assist the Owner, Engineer, and Agency in determining the
procedures to be used on a specific project.

Because the EJCDC documents are fully integrated, when making a
modification in one document you should ensure that appropriate
modifications are made in all effected documents. It is the Rural
Utilities Service (RUS) policy that the applicants use the EJCDC
documents with minimal modification. However, RUS recognizes each
project is unique and that modifications may be required to satisfy
specific project requirements or State statutes.

All procurement transactions, regardless of whether by sealed bids or by
negotiation and without regard to dollar value, shall be conducted in a
manner that provides maximum open and free competition. Procurement
procedures shall not restrict or eliminate competition. Examples of what
are considered to be restrictive of competition include, but are not
limited to: placing unreasonable requirements on firms in order for them
to qualify to do business; noncompetitive practices between firms;
organizational conflicts of interest; specifying only a brand name
product instead of either allowing an equal product to be offered, or
describing the performance of the relevant requirements of the
procurement; and unnecessary experience and bonding requirements.

Part II of this document is a model Bid Form that can be used as the
starting point for preparing the actual Bid Form for RUS Water and Waste
Disposal program projects. Any additions or modifications should follow
the same format as the base document.

*Text enclosed in {} indicates a choice is necessary or information must
be inserted. This information must be provided and the {} eliminated
prior to submittal to Rural Development for review.*

PART II: SUGGESTED LANGUAGE FOR BID FORM

**Bid Form**

Project Identification: *{Project or portion of Project to which Bid
applies}*

Contract Identification and Number: *{Title, Number, etc. that appears
elsewhere in Bidding Documents}*

This Bid Is Submitted To: *{Name and Address of OWNER}*

1.01 The undersigned Bidder proposes and agrees, if this Bid is
accepted, to enter into an Agreement with OWNER in the form included in
the Bidding Documents to perform all Work as specified or indicated in
the Bidding Documents for the prices and within the times indicated in
the Bid and in accordance with the other terms and conditions of the
Bidding Documents.

2.01 Bidder accepts all of the terms and conditions of the Advertisement
and Instructions to Bidders, including without limitations those dealing
with the dispositions of Bid security. The Bid will remain subject to
acceptance for *{60}* days after the Bid opening, or for such longer
period of time that Bidder may agree to in writing upon request of
OWNER.

3.01 In submitting this Bid, Bidder represents, as set forth in the
Agreement, that:

A. Bidder has examined and carefully studied the Bidding Documents, the
other related data identified in the Bidding Documents, and the
following Addenda, receipt of all which is hereby acknowledged.

> Addendum No. Addendum Date
>
> \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_

B. Bidder has visited the Site and become familiar with and is satisfied
as to the general, local, and Site conditions that may affect cost,
progress, and performance of the Work.

C. Bidder is familiar with and is satisfied as to all Federal, State,
and local Laws and Regulations that may affect cost, progress, and
performance of the Work.

D. Bidder has carefully studied all: (1) reports of explorations and
tests of subsurface conditions at or contiguous to the Site and all
drawings of physical conditions in or relating to existing surface or
subsurface structures at or contiguous to the Site (except Underground
Facilities) which have been identified in the Supplementary Conditions
as provided in paragraph 4.02 of the General Conditions, and (2) reports
and drawings of a Hazard Environmental Condition, if any, which has been
identified in the Supplementary Conditions as provided in paragraph 4.06
of the General Conditions.

E. Bidder has obtained and carefully studied (or assumes responsibility
for having done so) all additional or supplementary examinations,
investigations, explorations, tests, studies, and data concerning
conditions (surface, subsurface and Underground Facilities) at or
contiguous to the Site which may affect cost, progress, or performance
of the Work or which relate to any aspect of the means, methods,
techniques, sequences, and procedures of construction to be employed by
the Bidder, including applying the specific means, methods, techniques,
sequences, and procedures of construction expressly required by the
Bidding Documents to be employed by Bidder, and safety precautions and
programs incident thereto.

F. Bidder does not consider that any further examinations,
investigations, explorations, tests, studies, or data are necessary for
the determination of this Bid for performance of the Work at the
price(s) bid and within the times and in accordance with the other terms
and conditions of the Bidding Documents.

G. Bidder is aware of the general nature of the Work to be performed by
OWNER and others at the Site that relates to the Work as indicated in
the Bidding Documents.

H. Bidder has correlated the information known to Bidder, information
and observations obtained from visits to the Site, reports and drawings
identified in the Bidding Documents, and all additional examinations,
investigations, explorations, tests, studies, and data with the Bidding
Documents.

I. Bidder has given ENGINEER written notice of all conflicts, errors,
ambiguities, or discrepancies that Bidder has discovered in the Bidding
Documents, and the written resolution thereof by ENGINEER is acceptable
to Bidder.

J. The Bidding Documents are generally sufficient to indicate and convey
understanding of all terms and conditions for the performance of the
Work for which this Bid is submitted.

4.01 Bidder further represents that this Bid is genuine and not made in
the interest of or on the behalf of any undisclosed individual or entity
and is not submitted in conformity with any agreement or rules of any
group, association, organization, or corporation; Bidder has not
directly or indirectly induced or solicited any other Bidder to submit a
false or sham Bid; Bidder has not solicited or induced any individual or
entity to refrain from bidding; and Bidder has not sought by collusion
to obtain for itself any advantage over any other Bidder or over OWNER.

5.01 Bidder will complete the Work in accordance with the Contract
Documents for the following price(s):

LUMP SUM BID PRICE
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\$ \_\_\_\_\_\_\_\_\_\_\_)

(use words) (figures)

*{OR}*

Attached Itemized Unit Price Sheets

*{Using a format similar to the following layout:*

##  *ESTIMATED TOTAL ESTI-*

## *NO. ITEM UNIT QUANTITY UNIT PRICE MATED PRICE}*

TOTAL OF ALL ESTIMATED PRICES (\$ \_\_\_\_\_\_\_\_\_\_\_)

A. Unit Prices have been computed in accordance with paragraph 11.03.B
of the General Conditions.

B. Bidder acknowledges that estimated quantities are not guaranteed, and
are solely for the purpose of comparison of Bids, and final payment for
all Unit Price Bid items will be based on actual quantities provided,
determined as provided in the contract Documents.

6.01 Bidder agrees that the Work will be substantially completed and
ready for final payment in accordance with paragraph 14.07.B of the
General Conditions on or before the dates or within the number of
calendar days indicated in the Agreement.

6.02 Bidder accepts the provisions of the Agreement as to liquidated
damages in the event of failure to complete the work within the times
specified above, which shall be stated in the Agreement.

7.01 The following documents are attached to and made a condition of the
Bid:

A. Required Bid security in the form of Bid Bond - Certified Check
(circle type of security provided);

B. If Bid amount exceeds \$10,000, signed Compliance Statement (RD
400-6). Refer to specific equal opportunity requirements set forth in
paragraph 18.10 of the General Conditions;

C. If Bid amount exceeds \$25,000, signed Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower
Tier Covered Transactions (AD-1048);

D. If Bid amount exceeds \$100,000, signed RD Instruction 1940-Q,
Exhibit A-1, Certification for Contracts, Grants, and Loans. Refer to
paragraph 18.11 of the General Conditions;

*{D. A tabulation of Subcontractors, Suppliers \[and others\]
individuals and entities required to be identified in this Bid;}*

*{E. Required bidder qualifications statement with supporting data;
and}*

*{F. List other documents as pertinent.}*

8.01 The terms used in this Bid with the initial capitol letters have
the meanings indicated in the Instructions to Bidders, the General
Conditions, and the Supplementary Conditions.

SUBMITTED on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_

State Contractor License No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
(If applicable)

Employer's Tax ID No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

If Bidder is:

# An Individual

> Name (typed or printed):
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> By:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> *(Individual's signature)*
>
> Doing business as:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Business address:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Phone No. (\_\_\_)\_\_\_\_\_\_\_\_\_ FAX No.
> (\_\_\_)\_\_\_\_\_\_\_\_\_ E-Mail Address
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# A Partnership

> Partnership Name:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> By:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> *(Signature of general partner \-- attach evidence of authority to
> sign)*
>
> Name (typed or printed):
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Business address:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Phone No. (\_\_\_)\_\_\_\_\_\_\_\_\_ FAX No.
> (\_\_\_)\_\_\_\_\_\_\_\_\_ E-Mail Address
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

# A Corporation

> Corporation Name:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> State of Incorporation:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Type (General Business, Profession, Service, Limited Liability):
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> By:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> *(Signature \-- attach evidence of authority to sign)*
>
> Name (typed or printed):
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Title:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Attest
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> *(Signature of Corporate Secretary)*
>
> Business address:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Phone No. (\_\_\_)\_\_\_\_\_\_\_\_\_ FAX No.
> (\_\_\_)\_\_\_\_\_\_\_\_\_ E-Mail Address
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Date of Qualification to do business is
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**[A Joint Venture]{.underline}**

> Joint Venture Name:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> By:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> *(Signature of joint venture partner \-- attach evidence of authority
> to sign)*
>
> Name (typed or printed):
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Title:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Business address:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Phone No. (\_\_\_)\_\_\_\_\_\_\_\_\_ FAX No.
> (\_\_\_)\_\_\_\_\_\_\_\_\_ E-Mail Address
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Joint Venture Name:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> By:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> *(Signature of joint venture partner \-- attach evidence of authority
> to sign)*
>
> Name (typed or printed):
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Title:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Business address:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Phone No. (\_\_\_)\_\_\_\_\_\_\_\_\_ FAX No.
> (\_\_\_)\_\_\_\_\_\_\_\_\_ E-Mail Address
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Phone and FAX Number, and Address for receipt of official
> communications:
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> (Each joint venturer must sign. The manner of signing for each
> individual, partnership, and corporation that is party to the venture
> should be in the manner indicated above.)

**Application for Payment**

**Rural Utilities Service**

**Water and Waste Programs**

**December 1997**

This guidance is to be used in association with the following Engineers
Joint Contract Documents Committee documents:

1.  Guide to Preparation of Instructions to Bidders (No. 1910-12, 1996
    Edition),

2.  Standard Form of Agreement Between Owner and Contractor on the Basis
    of Stipulated Price, Funding Agency Edition (No. 1910-8-1-FA, 1997
    Edition), and

3.  Standard General Conditions of the Construction Contract Funding
    Agency Edition (No. 1910-8-FA, 1997 Edition).

The Engineers Joint Contract Documents Committee (EJCDC) standard
documents form the foundation for preparation of a integrated set of
construction documents. Refer to the EJCDC documents for basic
information. The EJCDC document Application for Payment, 1910-8-E (1996
Edition), Partial Payment Estimate, Form RD 1924-18, Rev. 6/97, and this
Attachment can assist the Owner, Engineer, and Agency in developing an
Application for Payment to be used on a specific project.

Because the EJCDC documents are fully integrated, when making a
modification in one document you should ensure that appropriate
modifications are made in all effected documents. It is the Rural
Utilities Service (RUS) policy that the applicants use the EJCDC
documents with minimal modification. However, RUS recognizes each
project is unique and that modifications may be required to satisfy
specific project requirements or State statutes.

It is anticipated that an attachment to the Application for Payment for
the detailed tracking of quantities, materials stored, etc. will be
developed by the Engineer and Contractor. 7 CFR 1780.76 (e) states Form
RD 1924-18 (Available at http://rdinit.usda.gov/regs/formlist.html) or
other similar form may be used for contractor payments. If Form RD
1924-18 is not used, prior concurrence by the State Staff Engineer must
be obtained. In addition to the language on the EJCDC form, any form
used for Application for Payment must include language similar to the
following:

Approved by OWNER: *{with signature and date blocks}*

Accepted by Agency: The review and acceptance of this application for
payment does not attest to the correctness of the quantities shown or
that the work has been performed in accordance with the Contract
Documents. *{with signature and date blocks}*

**Change Order**

**Rural Utilities Service**

**Water and Waste Programs**

**December 1997**

This guidance is to be used in association with the following Engineers
Joint Contract Documents Committee documents:

1.  Guide to Preparation of Instructions to Bidders (No. 1910-12, 1996
    Edition),

2.  Standard Form of Agreement Between Owner and Contractor on the Basis
    of Stipulated Price, Funding Agency Edition (No. 1910-8-1-FA, 1997
    Edition), and

3.  Standard General Conditions of the Construction Contract Funding
    Agency Edition (No. 1910-8-FA, 1997 Edition).

The Engineers Joint Contract Documents Committee (EJCDC) standard
documents form the foundation for preparation of a integrated set of
construction documents. Refer to the EJCDC documents for basic
information. The EJCDC document Change Order, 1910-8-B (1996 Edition),
Contract Change Order, Form RD 1924-7, and this Attachment can assist
the Owner, Engineer, and Agency in developing an Change Order to be used
on a specific project.

Because the EJCDC documents are fully integrated, when making a
modification in one document you should ensure that appropriate
modifications are made in all effected documents. It is the Rural
Utilities Service (RUS) policy that the applicants use the EJCDC
documents with minimal modification. However, RUS recognizes each
project is unique and that modifications may be required to satisfy
specific project requirements or State statutes.

7 CFR 1780.76 (h) (2) states changes will be recorded on Form RD 1924-7,
\"Contract Change Order\" (Available at
http://rdinit.usda.gov/regs/formlist.html), or similar form if approved
by the State program official or designee. In addition to the language
on the EJCDC form, any form used for Change Order must include language
similar to the following:

Concurrence by Agency: Changes are not effective until signed by Agency.
*{with signature and date blocks}*