RUS is Planning to Revise its Contract Forms

| RUS is planning to update, consolidate, and streamline    the standard forms of contracts used for construction and procurement. The forms included    in this effort are:
- Form 172, Certificate of Inspection, Contract Construction.
- Form 173, Materials Contract.
- Form 180, Construction Contract Amendment.
- Form 181, Certificate of Completion, Contract Construction for Buildings.
- Form 187, Certificate of Completion, Contract Construction.
- Form 198, Equipment Contract.
- Form 200, Construction Contract - Generating.
- Form 201, Right-of-Way Clearing Contract.
- Form 203, Transmission System Right-of-Way Clearing Contract.
- Form 238, Construction or Equipment Contract Amendment.
- Form 257, Contract to Construct Buildings.
- Form 274, Bidder’s Qualifications.
- Form 282, Subcontract.
- Form 458, Materials Contract.
- Form 764, Substation and Switching Station Erection Contract.
- Form 786, Electric System Communications and Control Equipment Contract.
- Form 790, Distribution Line Extension Construction Contract (Labor and Materials).
- Form 792, Distribution Line Extension Construction Contract (Labor Only).
- Form 830, Electric System Construction Contract (Labor and Materials).
- Form 831, Electric Transmission Construction Contract (Labor and Materials).

Our plans for revising and updating these forms include:

1. Eliminate unneeded forms. This would include merging the        Form 181 into the Form 187, merging the Form 180 into the Form 238,        merging the Form 201, 203, and 764 into the Form 830, and eliminating        Forms 181, 180, 201, 203, and 764. We are also considering eliminating infrequently        used guidance forms (Forms 172, 173, 274, 282, and 458).

2. Make forms suitable for "subject to" or "not subject        to" RUS approval. This would include merging the Form 831 into the Form 830        and eliminating Form 831.

3. Make construction contract forms suitable for "labor only"        or "labor and material." This would include merging the Form 792 into the        Form 790 and eliminating Form 792.

4. Standardize tables and information pages and incorporate them as        separate attachments. We are planning to publish the "Construction Units" pages        as a separate bulletin. This would allow the borrower to include in the bid package only        those construction unit pages that are relevant to a particular project.

5. Maximize consistency among forms. This would include standardizing        common provisions and terminology, and adding a "Notice and Instructions to        Bidders" to forms not having one.

6. Include an estimated or base quantity provision in unit price        contract forms.

7. Add a provision regarding assignment of the contract to RUS.

8. Update and clarify contract provisions as necessary. This would        include:

a. Clarifying that the contractor (not the owner or engineer) is solely          responsible for the means and methods of construction and for the supervision of the          contractor's employees.

b. Deleting the reference to a "Supervisor" appointed by RUS.

c. Delete the reference to the loan contract and owner's access to          funding.

d. Deleting the option for eliminating retainage after the contract is          50% complete.

e. Updating the "Buy American" requirement.

f. Eliminating gender specific terms (him, his, materialmen, etc.)

RUS welcomes comments from the users of these forms about our plans to    update, consolidate, and streamline the standard forms of contracts. We are specifically    interested in comments on the following questions:
- Are the guidance forms used often or should they be eliminated?
- Are there provisions in the contract forms that should be updated (in addition to the        provisions indicated above)?
- Does the proposed revision/consolidation plan meet the needs of most borrowers?

If you have comments, please send them to: Fred J. Gatchell,    Deputy Director, Electric Staff Division, Rural Utilities Service, U.S. Department of    Agriculture, Stop 1569, 1400 Independence Ave., SW., Washington, DC    20250-1569. If you would like more information or have any questions, please call Fred    Gatchell, Deputy Director, ESD, at (202) 720-1398.
 

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