[Federal Register Volume 59, Number 106 (Friday, June 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11541]


[[Page Unknown]]

[Federal Register: June 3, 1994]


_______________________________________________________________________

Part II





Department of Agriculture





_______________________________________________________________________



Rural Electrification Administration



_______________________________________________________________________



7 CFR Part 1726




Electric System Construction Policies and Procedures; Proposed Rule
DEPARTMENT OF AGRICULTURE

Rural Electrification Administration

7 CFR Part 1726

RIN 0572-AA47

 
Electric System Construction Policies and Procedures

AGENCY: Rural Electrification Administration, USDA.

ACTION: Proposed rule.

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SUMMARY: The Rural Electrification Administration (REA) proposes to 
amend its regulation on Electric System Construction Policies and 
Procedures. This action will contain the policies and the procedures 
applicable to REA electric borrowers when purchasing materials and 
equipment, and when constructing system facilities by contract or force 
account. These policies and procedures are currently contained in seven 
REA bulletins. The changes that are being proposed pertain to REA 
approval of contracts, subcontracts and amendments to contracts; 
documentation of contracting activity by REA borrowers; procurement 
procedures to be used by REA borrowers; and closeout procedures for 
construction contracts.

DATES: Written comments must be received by REA, or bear a postmark or 
equivalent, no later than August 2, 1994.

ADDRESSES: Submit written comments to Archie W. Cain, Director, 
Electric Staff Division, Rural Electrification Administration, room 
1246-S, U.S. Department of Agriculture, Washington, DC 20250-1500. REA 
requires a signed original and 3 copies of all comments 
(Sec. 1700.30(e)). Comments will be made available for public 
inspection at room 2234 South Building between 8:30 a.m. and 5 p.m. on 
official work days (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: Mr. Fred J. Gatchell, Deputy Director, 
Electric Staff Division, Rural Electrification Administration, U.S. 
Department of Agriculture, Washington, DC 20250-1500, telephone (202) 
720-1398.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule has been determined to be not significant for 
the purposes of Executive Order 12866 and therefore has not been 
reviewed by OMB.

Regulatory Flexibility Act Certification

    This action does not fall within the scope of the Regulatory 
Flexibility Act.

Information Collection and Recordkeeping Requirements

    In compliance with the Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) which implement the Paperwork Reduction 
Act of 1980 (Pub. L. 96-511) and section 3504 of the Act, the 
information collection and recordkeeping requirements contained in this 
proposed rule have been submitted to OMB for review. Comments 
concerning these requirements should be directed to the Office of 
Information and Regulatory Affairs of OMB, Attention: Desk Officer for 
USDA, room 3201, New Executive Office Building, Washington, DC 20503.

National Environmental Policy Act Certification

    The Administrator has determined that this proposed rule will not 
significantly affect the quality of the human environment as defined by 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
Therefore, this action does not require an environmental impact 
statement or assessment.

Catalog of Federal Domestic Assistance

    The program described by this proposed rule is listed in the 
Catalog of Federal Domestic Assistance programs under No. 10.850, Rural 
Electrification Loans and Loan Guarantees. This catalog is available on 
a subscription basis from the Superintendent of Documents, the United 
States Government Printing Office, Washington, DC 20402. Telephone 
(202) 720-3238.

Executive Order 12372

    This proposed rule is excluded from the scope of Executive Order 
12372, Intergovernmental Consultation, which may require consultation 
with State and local officials. A Notice of Final Rule entitled 
Department Programs and Activities Excluded from Executive Order 12372 
(50 FR 47034) exempts REA loans and loan guarantees from coverage under 
this order.

Executive Order 12778

    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. If adopted, this proposed rule will not: (1) 
Preempt any State or local laws, regulations or policies; (2) Have any 
retroactive effect; and (3) Require administrative proceedings before 
parties may file suit challenging the provisions of this rule.

Background

    Pursuant to the Rural Electrification Act of 1936, as amended (the 
RE Act) (7 U.S.C. 901 et seq.), the Rural Electrification 
Administration (REA) proposes to amend 7 CFR chapter XVII, by revising 
part 1726, Electric System Construction Policies and Procedures. This 
revised part will contain the policies and the procedures applicable to 
REA borrowers and contractors when purchasing materials and equipment 
and constructing electric system facilities by contract or force 
account (the REA borrower's own construction crews).
    These policies and the procedures implement certain provisions of 
the REA standard form of loan documents regarding the borrower's 
purchase of materials and equipment and the construction of its 
electric system by contract or force account. In order to facilitate 
the programmatic interests of the RE Act, and, in order to assure that 
loans made or guaranteed by REA are adequately secured, REA, as a 
secured lender, has established certain standards and specifications 
for materials, equipment, and the construction of electric systems. The 
use of standard forms and procurement procedures helps assure REA that: 
(1) appropriate standards and specifications are maintained; (2) REA's 
loan security is not adversely affected; and (3) loan and loan 
guarantee funds are used effectively and for the intended purposes.
    The current policies and procedures that will be affected are set 
forth in REA Bulletin 40-6, Construction Methods and Purchase of 
Materials and Equipment; REA Bulletin 40-8, Construction 
Specifications, Drawings and Contract Forms for Distribution, 
Transmission and Generation Facilities; REA Bulletin 81-6, Closeout 
Procedures and Documents for Contract Construction of Distribution and 
Transmission Facilities; REA Bulletin 85-1, Closeout Procedures and 
Documents for the Contract Construction of Generating Facilities and 
Associated Buildings; REA Bulletin 86-1, Closeout Procedures and 
Documents for the Construction of Buildings Other than Generating 
Plants; and REA Bulletin 86-3, Headquarters Facilities for Electric 
Borrowers. The current policies and procedures will be changed and 
updated by this proposal.
    The major substantive proposed changes are as follows:
    (a) This proposal applies to procurement and construction for all 
projects which will or may be financed, in whole or in part, with loans 
made or guaranteed by REA. REA Bulletin 40-6 currently contains the 
requirements for all procurement and construction, regardless of the 
source of funds.
    (b) This proposal would eliminate the current requirement that REA 
approve subcontracts. (Subcontracts for generating projects are already 
exempt from REA approval.)
    (c) This proposal would change the dollar thresholds that determine 
which procurement procedure is to be used for a project.
    (d) This proposal would raise the dollar thresholds that determine 
whether REA approval of a contract is required and eliminate the 
requirement of REA approval of certain contract amendments.
    (e) This proposal would eliminate the requirement of REA approval 
of borrowers' contracts for headquarters facilities.
    (f) This proposal would add procedures for procurement of 
communication and control facilities.
    (g) This proposal would simplify the procedures for the closeout of 
construction contracts by reducing the number of forms to be submitted 
to REA.
    (h) This proposal would revise the REA standard contract forms. The 
major changes in the contract forms would be as follows:
    (1) Change the forms to reflect the changes listed above.
    (2) Change the insurance and bonding dollar limits as outlined in 7 
CFR part 1788.
    (3) Change the forms to require prequalification of all bidders.
    (4) Change the interest rate on overdue accounts.
    (5) Change the ``Buy American'' provision to include Mexico and 
Canada in accordance with the North American Free Trade Agreement 
Implementation Act of December 8, 1993, Public Law 103-182.
    (6) Change the indemnification clause (also called ``hold harmless 
clause'') to reflect REA's current policy.
    (7) Incorporate certain technical changes relating to wood treating 
and right-of-way clearing chemicals.
    In order to reduce printing cost and volume, the forms to be 
included in this part are condensed, especially the tables. Also, 
several forms refer to guide drawings, which do not contain 
requirements, and, hence, will not be included. It is intended that 
once the forms are finalized, REA will reformat these forms similar to 
their current configuration (including the tables and drawings) and 
make them available in that format either from REA or for purchase from 
the Government Printing Office. See proposed Sec. 1726.300 for a list 
of the standard forms of electric contracts and where each may be 
obtained.

List of Subjects in 7 CFR Part 1726

    Electric power, Loan programs--energy, Reporting and recordkeeping 
requirements, Rural areas.

    In view of the above, REA proposes to amend 7 CFR chapter XVII by 
revising part 1726 to read as follows:

PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES

Subpart A--General

Sec.
1726.1-1726.9  [Reserved]
1726.10  Introduction.
1726.11  Purpose.
1726.12  Applicability.
1726.13  Waivers.
1726.14  Definitions.
1726.15  ``Buy American''.
1726.16  Debarment and suspension.
1726.17  Restrictions on lobbying.
1726.18  Preloan contracting.
1726.19  Use of competitive procurement.
1726.20  Standards and specifications.
1726.21  New materials.
1726.22  Methods of construction.
1726.23  Qualification of bidders.
1726.24  Written contracts.
1726.25  Subcontracts.
1726.26  Payment to contractor for material delivered.
1726.27-1726.34  [Reserved]
1726.35  Submission of documents to REA.
1726.36  Documents subject to REA approval.
1726.37-1726.49  [Reserved]

Subpart B--Distribution Facilities

1726.50  Distribution line materials and equipment.
1726.51  Distribution line construction.
1726.52-1726.74  [Reserved]

Subpart C--Substation and Transmission Facilities

1726.75  General.
1726.76  Substation and transmission line materials and equipment.
1726.77  Substation and transmission line construction.
1726.78-1726.124  [Reserved]

Subpart D--Generation Facilities

1726.125  Generating plant facilities.
1726.126-1726.149  [Reserved]

Subpart E--Buildings

1726.150  Headquarters buildings.
1726.151-1726.174  [Reserved]

Subpart F--General Plant

1726.175  General plant materials.
1726.176  Communications and control facilities.
1726.176-1726.199  [Reserved]

Subpart G--Procurement Procedures

1726.200  General requirements.
1726.201  Formal competitive bidding.
1726.202  Informal competitive bidding.
1726.203  Multiparty negotiation.
1726.204  Multiparty unit price quotations.
1726.205  Multiparty lump sum quotations.
1726.206-1726.249  [Reserved]

Subpart H--Modifications to REA Standard Contract Forms

1726.250  General.
1726.251  Prior approved contract modification related to price 
escalation on generation contracts.
1726.252  Prior approved contract modification related to liability 
for special and consequential damages.
1726.253  Prior approved contract modification related to 
alternative bid provision for payment to contractor for bulk 
purchase of materials.
1726.254  Prior approved contract modifications related to REA 
approval of contracts and amendments.
1726.255-1726.299  [Reserved]

Subpart I--REA Standard Forms

1726.300  List of REA standard contracting forms for electric 
systems.
1726.301  Use of printed forms.
1726.302  REA approved forms of contract.
1726.303  Interest on overdue accounts.
1726.304-1726.309  [Reserved]
1726.310  Contractor's bond, REA Form 168b.
1726.311  Contractor's bond, REA Form 168c.
1726.312  Construction contract amendment, REA Form 180.
1726.313  Certificate of completion, contract construction for 
buildings, REA Form 181.
1726.314  Certificate of completion, contract construction, REA Form 
187.
1726.315  Equipment contract, REA Form 198.
1726.316-1726.319  [Reserved]
1726.320  Construction contract, generating, REA Form 200.
1726.321  Right-of-way clearing contract, REA Form 201.
1726.322  Transmission system right-of-way clearing contract, REA 
Form 203.
1726.323  Certificate (Buy America), REA Form 213.
1726.324  Waiver and release of lien, REA Form 224.
1726.325  Certificate of contractor, REA Form 231.
1726.326  Construction or equipment contract amendment, REA Form 
238.
1726.327  Material receipt, REA Form 251.
1726.328  Construction inventory (for labor and material contract), 
REA Form 254.
1726.329  Contract to construction buildings, REA Form 257.
1726.330  [Reserved]
1726.331  Bid bond, REA Form 307.
1726.332-1726.339  [Reserved]
1726.340  Substation and switching station erection contract, REA 
Form 764.
1726.341  Electric system communications and control equipment 
contract, REA Form 786.
1726.342  Distribution line extension construction contract (labor 
and materials), REA Form 790.
1726.343  Distribution line extension construction contract (labor 
only), REA Form 792.
1726.344  [Reserved]
1726.345  Certificate of constructor and indemnity agreement (line 
extensions), REA Form 792b.
1726.346  Supplemental contract for additional project, REA Form 
792c.
1726.347-1726.349  [Reserved]
1726.350  Construction contract amendment for payment, REA Form 800.
1726.351  Electric system construction contract (labor and 
materials), REA Form 830.
1726.352  Electric transmission construction contract (labor and 
materials), REA Form 831.
1726.353-1726.399  [Reserved]

Subpart J--Contract Closeout

1726.400  Final contract amendment.
1726.401  Material contract closeout.
1726.402  Equipment contract closeout.
1726.403  Project construction contract closeout.
1726.404  Non-project construction contract closeout.
1726.405  Inventory of work orders (REA Form 219).

    Authority: 7 U.S.C. 901 et seq., 1921 et seq.

Subpart A--General


Secs. 1726.1-1726.9  [Reserved]


Sec. 1726.10  Introduction.

    The policies, procedures and requirements included in this part are 
intended to implement provisions of the standard form of loan documents 
between the Rural Electrification Administration (REA) and its electric 
borrowers. Unless prior written approval is received from REA, 
borrowers are required to comply with REA's policies and procedures as 
a condition to REA providing financial assistance for the construction 
and improvement of electric facilities. Requirements for REA approval 
of plans and specifications are contained in part 1724 of this chapter.


Sec. 1726.11  Purpose.

    Each borrower is responsible for the planning, design, 
construction, operation and maintenance of its electric system. REA, as 
a secured lender, has a legitimate interest in accomplishing REA's 
programmatic objectives, and in assuring that the costs of 
construction, materials, and equipment are reasonable and economical 
and that the property securing the loans is constructed adequately to 
serve the purposes for which it is intended.


Sec. 1726.12  Applicability.

    The requirements of this part apply to the procurement of materials 
and equipment for use by electric borrowers in their electric systems 
and to the construction of their electric systems if such materials, 
equipment, and construction will or may be financed, in whole or in 
part, with loans made or guaranteed by REA. In order for general fund 
expenditures for procurement or construction to be eligible for 
reimbursement from loan funds, in addition to other requirements of 
this chapter, the borrower must demonstrate to the satisfaction of REA 
that the procedures required by this part were followed.


Sec. 1726.13  Waivers.

    The Administrator may waive, for good cause on a case by case 
basis, certain requirements and procedures of this part. REA reserves 
the right, as a condition of providing financial assistance, to require 
any borrower to make any specification, contract, or contract amendment 
subject to the approval of the Administrator. The Administrator may, on 
a case by case basis, waive certain requirements of this part for major 
storm damage repair work.


Sec. 1726.14  Definitions.

    Terms used in this part have the meanings set forth in 7 CFR 
1710.2. References to specific REA forms and other REA documents, and 
to specific sections or lines of such forms and documents, shall 
include the corresponding forms, documents, sections and lines in any 
subsequent revisions of these forms and documents. In addition to the 
terms defined in 7 CFR 1710.2, the following terms have the following 
meanings for the purposes of this part:
    Approval of proposed construction means REA approval of a 
construction work plan or other appropriate engineering study and REA 
approval, for purposes of system financing, of the completion of all 
appropriate requirements of part 1794 of this chapter.
    Architect means a registered or licensed person employed by the 
borrower to provide architectural services for a project and duly 
authorized assistants and representatives.
    Bona fide bid means a bid which is submitted by a contractor on the 
borrower's list of qualified bidders for the specific contract, prior 
to bid opening.
    ``Buy American'' certificate means a certification that the 
contractor has complied with the ``Buy American'' requirement (see 
Sec. 1726.15).
    Competitive procurement means procurement of goods or services 
based on the lowest evaluated bid for similar products or services when 
three or more bids are received.
    Construction unit means a specifically defined portion of a 
construction project containing materials, labor, or both, for purposes 
of bidding and payment.
    Contracting committee means the committee consisting of three to 
five members representing the borrower's management and board of 
directors and the engineer. The contracting committee represents the 
borrower during contract clarification discussions or negotiations.
    Engineer means a registered or licensed person employed by the 
borrower to provide engineering services for a project and duly 
authorized assistants and representatives.
    Equipment means a major component of an electric system, e.g., a 
substation transformer, heat exchanger or a transmission structure.
    Financial assistance means loans or grants made or guaranteed by 
REA, or lien accommodations or lien subordinations granted and approved 
by REA.
    Force account construction means construction performed by the 
borrower's employees.
    Formal competitive bidding means the competitive procurement 
procedure wherein bidders submit sealed proposals for furnishing the 
goods or services stipulated in the specification. Bids are publicly 
opened and read at a predetermined time and place. If a contract is 
awarded, it must be to the lowest evaluated responsive bidder (see 
Sec. 1726.201).
    Goods or services means materials, equipment, or construction, or 
any combination thereof.
    Informal competitive bidding means the competitive procurement 
procedure which provides for private opening of bids and allows 
clarifying discussions between the contracting committee and the 
bidders. During the clarifying discussions any exceptions to the bid 
documents must be eliminated, or the bid rejected, so that the contract 
is awarded to the lowest evaluated responsive bidder (see 
Sec. 1726.202).
    Material means miscellaneous hardware which is combined with 
equipment to form an electric system, e.g., poles, insulators, or 
conductors.
    Minor error or irregularity means a defect or variation in a bid 
that is a matter of form and not of substance. Errors or irregularities 
are ``minor'' if they can be corrected or waived without being 
prejudicial to other bidders and when they do not affect the price, 
quantity, quality, or timeliness of construction.
    Minor modification or improvement means a project where the 
construction contract is less than $50,000, exclusive of the cost of 
owner furnished materials.
    Multiparty lump sum quotations means the procurement of goods or 
services on a lump sum basis, based on the lowest evaluated offering, 
when three or more offers are received (see Sec. 1726.205).
    Multiparty negotiation means the procurement procedure where three 
or more bids are received and provides for negotiations between the 
contracting committee and each bidder to determine the bid which is in 
the borrower's best interest (see Sec. 1726.203).
    Multiparty unit price quotations means the procurement of goods or 
services on a unit price basis, based on the lowest evaluated offering, 
when three or more offers are received (see Sec. 1726.204).
    Net Utility Plant (NUP) means part C, Line 5 of REA Form 7 for 
distribution borrowers or section B, Line 5 of REA Form 12a for power 
supply borrowers.
    Owner furnished materials means materials or equipment or both 
supplied by the borrower for installation by the contractor.
    REA approval means written approval by the Administrator or a 
representative with delegated authority. REA approval must be in 
writing, except in emergency situations where REA approval may be given 
over the telephone followed by a confirming letter.
    Responsive bid means a bid with no exceptions or non-minor errors 
or irregularities on any technical requirement or in the contract terms 
and conditions.
    Unit prices means individual prices for specific construction units 
defined in accordance with REA approved units specified in REA standard 
contract forms.


Sec. 1726.15  ``Buy American''.

    The borrower must ensure that all materials and equipment financed 
with loans made or guaranteed by REA complies with the ``Buy American'' 
provisions of the Rural Electrification Act of 1938 (7 U.S.C. 901 et 
seq.). When a ``Buy American'' certificate is required by this part, 
this must be on REA Form 213.


Sec. 1726.16  Debarment and suspension.

    Borrowers are required to comply with certain requirements on 
debarment and suspension in connection with procurement activities as 
set forth in part 3017 of this title, particularly with respect to 
lower tier transactions, e.g., procurement contracts for goods or 
services.


Sec. 1726.17  Restrictions on lobbying.

    Borrowers are required to comply with certain restrictions and 
requirements in connection with procurement activities as set forth in 
part 3018 of this title.


Sec. 1726.18  Preloan contracting.

    Borrowers must consult with REA prior to entering into any contract 
for material, equipment or construction if a construction work plan, 
loan or loan guarantee for the proposed work has not been approved. 
While the REA staff will work with the borrower in such circumstances, 
nothing contained in this part is to be construed as authorizing 
borrowers to enter into any contract before the availability of funds 
has been ascertained by the borrower and all the requirements of part 
1794 of this chapter, Environmental Policies and Procedures for 
Electric and Telephone Borrowers, have been fulfilled.


Sec. 1726.19  Use of competitive procurement.

    REA borrowers' procurement is not subject to the provisions of the 
Federal Aquisition Regulation (48 CFR chapter 1); however, since 
borrowers receive the benefit of Federal financial assistance, 
borrowers must use competitive procurement to the greatest extent 
practical. The borrower must use competitive procurement for obtaining 
all goods or services when a REA loan or loan guarantee is involved 
except:
    (a) As specifically provided for in subparts B through F of this 
part; or
    (b) A waiver is granted.


Sec. 1726.20  Standards and specifications.

    All materials and equipment must meet the minimum requirements of 
all applicable REA standards and specifications. (See part 1728, 
Electric Standards and Specifications for Materials and Construction, 
of this chapter.)


Sec. 1726.21  New materials.

    The borrower shall purchase only new materials and equipment unless 
otherwise approved by REA, on a case by case basis, prior to the 
purchase.


Sec. 1726.22  Methods of construction.

    The borrower is responsible for determining whether construction 
will be by contract or force account. If construction is by contract, 
the borrower must determine whether materials will be supplied by the 
contractor or will be furnished by the borrower. REA reserves the right 
to require contract construction in lieu of force account construction 
on a case by case basis.


Sec. 1726.23  Qualification of bidders.

    (a) Qualified bidder list (QBL). The borrower shall, with the 
advice of its engineer, review the qualifications of prospective 
bidders for contract construction and for material and equipment 
procurement, and select those firms qualified for inclusion on the 
borrower's list of qualified bidders for each contract. (See also 
Sec. 1726.16 and Sec. 1726.17.) A bid may not be solicited from a 
prospective bidder or opened by the borrower unless that bidder has 
been determined to be a qualified bidder for the contract. When 
preparing the QBL, in addition to the actual experience of the 
borrower, if any, in dealing with a prospective bidder, the borrower 
may solicit information from that bidder or from other parties with 
firsthand experience regarding the firm's capabilities and experience.
    (b) Conflict of interest. If there is a relationship between the 
borrower or engineer and a prospective bidder which might cause the 
borrower or engineer to have or appear to have a conflict of interest, 
that prospective bidder shall not be included on the QBL unless the 
engineer discloses the nature of the relationship to the borrower. In 
the case of the borrower, if its employees or directors have a 
relationship with a prospective bidder, the prospective bidder shall 
not be included on the qualified bidders list unless the nature of the 
relationship is disclosed to the board of directors, and the board of 
directors specifically approves the inclusion of that bidder in light 
of the potential for a conflict of interest.


Sec. 1726.24  Written contracts.

    (a) General. Procurement of goods or services must be by written 
contract or purchase orders. The borrower shall use an REA Approved 
Form of Contract for such contracts where required by subparts B 
through F of this part.
    (b) Amendments to contracts.--(1) Contract forms. The borrower must 
use REA Form 180, Construction Contract Amendment, for any change or 
addition in a distribution line construction contract. The borrower 
must use REA Form 238, Construction or Equipment Contract Amendment, 
for any change or addition in any other contract for construction, or 
for materials or equipment.
    (2) Special considerations. Each time an amendment to a 
construction contract is executed, the borrower must ensure that 
contractor's bond is adequate, that all necessary licenses and permits 
have been obtained, and that any environmental requirements associated 
with the proposed construction have been met.
    (3) Amendment approval requirements. The borrower must make a 
contract amendment subject to REA approval if either of the following 
exist:
    (i) The amendment alters the terms and conditions of the REA 
Approved Form of Contract; or
    (ii) The underlying contract was made subject to REA approval and 
the total amended contract price exceeds 120 percent of the original 
contract price (excluding any escalation provision contained in the 
contract).
    (4) If neither of the above two conditions exist, the contract 
amendment is not subject to REA approval and need not be submitted to 
REA unless specifically requested by REA on a case by case basis.


Sec. 1726.25  Subcontracts.

    The contractor or supplier may use REA Form 282, Subcontract, for 
subcontracts on construction, material or equipment contracts. 
Subcontracts are not subject to REA approval and need not be submitted 
to REA unless specifically requested by REA on a case by case basis.


Sec. 1726.26  Payment to contractor for material delivered.

    When construction is performed under a labor and materials 
contract, the contractor is responsible for ensuring that sufficient 
equipment and materials are on hand at the construction site to allow 
construction to continue to completion in an orderly and expeditious 
manner. However, under certain circumstances beyond the control of the 
contractor, it may be necessary to halt construction for an extended 
period.
    (a) Conditions. When for reasons which are beyond the control and 
not the fault of the contractor it becomes necessary to suspend 
construction for such an extended period (usually over 30 days), the 
owner may, at the request of the contractor, consider an amendment to a 
construction contract providing for the payment to the contractor of 90 
percent of the invoice cost to the contractor of the equipment or 
materials delivered to the project site but not installed, provided the 
contractor warrants that such materials or equipment are:
    (1) Actually on the site of the project and will remain there until 
installed in the project.
    (2) In conformance with the contract specifications and not in 
excess of the quantity required for the project.
    (3) Properly stored and protected from weather, theft, and hazards.
    (4) Capable of being easily inventoried as to the original quantity 
and each month as to the remaining quantity.
    (b) Form of request. Requests by contractors for this type of 
amendment to construction contracts must be submitted by the contractor 
to the borrower on REA Form 800, Construction Contract Amendment for 
Payment. The requests must be prepared in triplicate, and each copy 
signed by an authorized agent of the surety.
    (c) Approval of request. If the borrower agrees to the request, the 
borrower will sign all three copies in the space provided, and, if the 
underlying contract was made subject to REA approval, the borrower will 
forward all copies to REA for approval.
    (d) Payments. Payments made under this section are to be made 
within thirty days after the final approval of the REA Form 800, 
Construction Contract Amendment for Payment, provided that the 
contractor has submitted the proper releases of liens from the supplier 
covering such equipment and materials. After construction has resumed, 
as the contractor is paid for monthly estimates of assembly units 
installed, a deduction must be made equal to the invoice cost of 
equipment and materials included in such estimates of assembly units 
installed and for which payment has been made to the contractor 
pursuant to the REA Form 800.


Secs. 1726.27-1726.34  [Reserved]


Sec. 1726.35  Submission of documents to REA.

    (a) Where to send documents. Documents required to be submitted to 
REA under this part are to be sent to the office of the borrower's 
respective REA Regional Director, the Power Supply Division Director, 
or such other office of REA as designated by REA (see part 1700 of this 
chapter.)
    (b) Borrower certification. When a borrower certification is 
required by this part, it must made be by the borrower's manager unless 
the board of directors specifically authorizes another person to make 
the required certification. In such case, a certified copy of the 
specific authorizing resolution must accompany the document or be on 
file with REA.
    (c) Contracts requiring REA approval. The borrower shall submit to 
REA three copies of each contract that is subject to REA approval under 
subparts B through F of this part. At least one copy of each contract 
must be an original signed in ink (i.e., no facsimile signature). Each 
contract submittal must be accompanied by:
    (1) A bid tabulation and evaluation and, if applicable, a written 
recommendation of the architect or engineer.
    (2) For awards made under the informal competitive bidding 
procedure or the multiparty negotiation procedure, a written 
recommendation and certification of the contracting committee (See 
Secs. 1726.202 and 1726.203).
    (3) Three copies of an executed contractor's bond on REA approved 
bond forms as required in the contract form (at least one copy of which 
must be an original signed in ink), proof of insurance coverage where 
required in the contract form, and one copy of the bid bond or 
facsimile of the certified check.
    (4) A certification by the borrower or chairperson of the 
contracting committee, as applicable, that the appropriate bidding 
procedures were followed as required by this part.
    (5) A certified copy of the board resolution awarding the contract.
    (6) Evidence of clear title to the site for substations and 
headquarters construction contracts, if not previously submitted.
    (d) Contract amendments requiring REA approval. The borrower must 
submit to REA three copies of each contract amendment (at least one 
copy of which must be an original signed in ink) which is subject to 
REA approval under Sec. 1726.24(b). Each contract amendment submittal 
to REA must be accompanied by:
    (1) A certified copy of the board resolution approving the 
amendment; and
    (2) A bond extension, where necessary.
    (e) Encumbrance of loan or loan guarantee funds. (1) For contracts 
subject to REA approval, the submittals required under Sec. 1726.35(c) 
will initiate REA action to encumber loan or loan guarantee funds for 
such contracts.
    (2) For contracts not subject to REA approval (except for 
generation projects), loan or loan guarantee funds will normally be 
encumbered using REA Form 219, Inventory of Work Orders, after closeout 
of the contracts. In cases where the borrower can show good cause for a 
need for immediate cash, the borrower may request encumbrance of loan 
or loan guarantee funds based on submittal of a copy of the executed 
contract, providing it meets all applicable REA requirements.
    (3) For generation project contracts not subject to REA approval, 
the borrower must submit to REA the following documentation:
    (i) A brief description of the scope of the contract, including 
contract identification (name, number, etc.);
    (ii) Contract date;
    (iii) Contractor's name;
    (iv) Contract amount;
    (v) Bidding procedure used;
    (vi) Borrower certification that:
    (A) The board of directors approved the contract;
    (B) The bidding procedures and contract award for each contract 
were in conformance with the requirements of Part 1726, Electric System 
Construction Policies and Procedures;
    (C) The terms and conditions of the REA approved form of contract 
have not been altered;
    (D) If REA has approved plans and specifications for the contract, 
the contract was awarded on the basis of those plans and 
specifications; and
    (E) No restriction has been placed on the borrower's right to 
assign the contract to REA or its successors.
    (4) Contract amendments. (i) For amendments subject to REA 
approval, the submittals required under Sec. 1726.35(c) will initiate 
REA action to encumber loan or loan guarantee funds for contract 
amendments requiring REA approval.
    (ii) For amendments not subject to REA approval (except generation 
projects), loan or loan guarantee funds will normally be encumbered 
using REA Form 219, Inventory of Work Orders, after closeout of the 
contracts. In cases where the borrower can justify a need for immediate 
cash, the borrower may request encumbrance of loan or loan guarantee 
funds based on submittal of a copy of the executed amendment, providing 
it meets all applicable REA requirements.
    (iii) For each generation project contract amendment not subject to 
REA approval, the borrower must submit to REA the following information 
and documentation:
    (A) The contract name and number;
    (B) The amendment number;
    (C) The amendment date;
    (D) The dollar amount of the increase or the decrease of the 
amendment;
    (E) Borrower certification that:
    (1) The amendment was approved in accordance with the policy of the 
board of directors (the borrower must ensure that REA has a certified 
copy of the board resolution establishing such policy);
    (2) The terms and conditions of the REA approved form of contract 
has not been altered;
    (3) No restriction has been placed on the borrower's right to 
assign the contract to REA or its successors.


Sec. 1726.36  Documents subject to REA approval.

    Unless otherwise indicated, the borrower shall make all contracts 
and amendments that are subject to REA approval effective only upon REA 
approval.


Secs. 1726.37-1726.49  [Reserved]

Subpart B--Distribution Facilities


Sec. 1726.50  Distribution line materials and equipment.

    (a) Contract forms. (1) The borrower shall use REA Form 198, 
Equipment Contract, for purchases of equipment where the total cost of 
the contract is in excess of $500,000.
    (2) The borrower may, in its discretion, use REA Form 173, 
Materials Contract, REA Form 198, Equipment Contract, or a purchase 
order for purchases of equipment of less than $500,000 and for all 
materials.
    (b) Standards and specifications. Distribution line materials and 
equipment must meet the minimum requirements of REA standards as 
determined in accordance with the provisions of part 1728 of this 
chapter, Electric Standards and Specifications for Materials and 
Construction. The borrower must obtain REA approval prior to purchasing 
any unlisted distribution line material or equipment of the types 
listed in accordance with the provisions of part 1728 of this chapter.
    (c) Procurement procedures. It is the responsibility of each 
borrower to determine the procurement method that best meets its needs 
for the purchase of material and equipment to be used in distribution 
line construction.
    (d) Contract approval. Contracts for purchases of distribution line 
materials and equipment are not subject to REA approval and need not be 
submitted to REA unless specifically requested by REA on a case by case 
basis.


Sec. 1726.51  Distribution line construction.

    (a) Contract forms. The borrower must use REA Form 201, 790, 792, 
or 830, as outlined in this paragraph (a), for distribution line 
construction, except for minor modifications or improvements.
    (1) The borrower may use REA Form 790, Distribution Line Extension 
Construction Contract (Labor and Materials), or REA Form 792, 
Distribution Line Extension Construction Contract (Labor only) under 
the following circumstances:
    (i) For contracts for which the borrower supplies all materials and 
equipment; or
    (ii) For non-site specific construction contracts accounted for 
under the work order procedure; or
    (iii) If neither paragraph (a)(1)(i) or (a)(1)(ii) of this section 
are applicable, the borrower may use REA Form 790 or 792 for contracts, 
up to a cumulative total of $250,000 or one percent of Net Utility 
Plant, whichever is greater, per calendar year of distribution line 
construction, exclusive of the cost of owner furnished materials and 
equipment.
    (2) The borrower must use REA Form 830, Electric System 
Construction Contract (Labor and Materials), for all other distribution 
line construction. Where distribution lines are being constructed 
incidental to transmission line construction, the borrower must use REA 
Form 831, Electric Transmission Construction Contract.
    (3) The borrower must use REA Form 201, Right-of-Way Clearing 
Contract, for new distribution line construction right-of-way clearing 
when done separately from work performed under REA Form 830.
    (b) Procurement procedures. It is the responsibility of each 
borrower to determine the procurement method that best meets its needs 
to award contracts for up to a cumulative total of $250,000 or one 
percent of NUP, whichever is greater, per calendar year of distribution 
line construction, exclusive of the cost of owner furnished materials 
and equipment. In addition, a borrower may use Multiparty Unit Price 
Quotations to award contracts for up to a cumulative total of $350,000 
or 1.5 percent of NUP, whichever is greater, per calendar year of 
distribution line construction, exclusive of the cost of owner 
furnished materials and equipment. The borrower shall use formal 
competitive bidding for all other distribution line contract 
construction.
    (c) Contract approval. Contracts for distribution line construction 
are not subject to REA approval and need not be submitted to REA unless 
specifically requested by REA on a case by case basis.


Secs. 1726.52-1726.74  [Reserved]

Subpart C--Substation and Transmission Facilities


Sec. 1726.75  General.

    As used in this part, ``substations'' includes substations, 
switching stations, metering points, and similar facilities.


Sec. 1726.76  Substation and transmission line materials and equipment.

    (a) Contract forms. (1) The borrower must use REA Form 198, 
Equipment Contract, for purchases of equipment where the total cost of 
the contract is in excess of $500,000.
    (2) The borrower may, in its discretion, use REA Form 173, 
Materials Contract, REA Form 198, Equipment Contract, or a purchase 
order for purchases of equipment of less than $500,000 and for all 
materials.
    (b) Standards and specifications. Substation and transmission line 
materials and equipment must meet the minimum requirements of REA 
standards as determined in accordance with the provisions of part 1728 
of this chapter, Electric Standards and Specifications for Materials 
and Construction. The borrower must obtain REA approval prior to the 
purchasing of any unlisted substation or transmission line material or 
equipment of the types listed in accordance with the provisions of part 
1728 of this chapter.
    (c) Procurement procedures. It is the responsibility of each 
borrower to determine the procurement method that best meets its needs 
for purchase of material and equipment to be used in substation and 
transmission line construction.
    (d) Contract approval. Contracts for purchases of substation and 
transmission line materials and equipment are not subject to REA 
approval and need not be submitted to REA unless specifically requested 
by REA on a case by case basis.


Sec. 1726.77  Substation and transmission line construction.

    (a) Contract forms. (1) The borrower must use REA Form 764, 
Substation Erection Contract, for construction of substations, except 
for minor modifications or improvements. The borrower must use REA Form 
831, Electric Transmission Construction Contract for projects where 
substations are incidental to transmission line construction and are to 
be constructed under the same contract.
    (2) The borrower must use REA Form 831, Electric Transmission 
Construction Contract, for construction of transmission lines (except 
for minor modifications or improvements).
    (b) Procurement procedures. It is the responsibility of each 
borrower to determine the procurement method that best meets its needs 
to award contracts not requiring REA approval for up to a cumulative 
total of $250,000 or one percent of NUP (not to exceed $2,000,000), 
whichever is greater, per calendar year of substation and transmission 
line construction, exclusive of the cost of owner furnished materials 
and equipment. The borrower shall use formal competitive bidding for 
all other contract construction, including all contracts requiring REA 
approval.
    (c) Contract approval. Individual contracts in excess of $250,000 
or one percent of NUP (not to exceed $500,000), whichever is greater, 
exclusive of the cost of owner furnished materials and equipment, are 
subject to REA approval.


Secs. 1726.78-1726.124  [Reserved] `

Subpart D--Generation Facilities


Sec. 1726.125  Generating plant facilities.

    This section covers the construction of all portions of a 
generating plant, including plant buildings and the generator step-up 
transformer. Generally, the transmission switchyard will be covered 
under this section during initial construction of the plant. Subpart C 
of this part covers subsequent modifications to transmission 
switchyards. Office buildings, warehouses, and equipment service type 
buildings are covered under subpart E of this part.
    (a) Contract forms. (1) The borrower must use REA Form 198, 
Equipment Contract, for the purchase of generating plant equipment in 
excess of $1,500,000 and for any generating plant equipment contract 
requiring REA approval.
    (2) The borrower must use REA Form 200, Construction Contract--
Generating, for construction of generating projects estimated to cost 
in excess of $1,500,000 and for any generating project construction 
contract requiring REA approval.
    (3) The borrower may, in its discretion, use other contract or 
purchase order forms for those contracts estimated to cost less than 
$1,500,000 and do not require REA approval.
    (b) Plans and specifications. The borrower shall obtain REA 
approval of the plans and specifications for generating plant equipment 
prior to issuing invitations to bid for a contract subject to REA 
approval as determined under this subpart, and for any contract for 
generating plant equipment or construction which the project engineer 
estimates will cost in excess of $1,500,000 or requires REA approval. 
Plans and specifications for other equipment and construction contracts 
do not require REA approval and need not be submitted to REA unless 
specifically requested by REA on a case by case basis.
    (c) Procurement procedures. If the estimated cost of the contract 
exceeds $1,500,000 or if the contract requires REA approval, the 
borrower must use formal or informal competitive bidding to award the 
contract. Where formal or informal competitive bidding is not 
applicable, or does not result in a responsive bid, multiparty 
negotiation may be used only after REA approval is obtained.
    (d) Contract approval. During the early stages of generating plant 
design or project design, REA will, in consultation with the borrower 
and its consulting engineer, identify the specific contracts which 
require REA approval based on information supplied in the plant design 
manual. The following are typical contracts for each type of generating 
project which will require REA approval. Although engineering services 
are not covered by this part, they are listed in this paragraph (d) to 
emphasize that REA approval is required for all generating station 
engineering service contracts. For types of projects not shown, such as 
nuclear and alternate energy projects, REA will identify the specific 
contracts which will require REA approval on a case by case basis.
    (1) Fossil generating stations. Engineering services, steam 
generator, turbine generator, flue gas desulfurization system, 
particulate removal system, electric wiring and control systems, 
mechanical equipment installation (including turbine installation and 
plant piping), power plant building (foundation and superstructure), 
site preparation, coal unloading and handling facilities, main step-up 
substation, cooling towers, and dams or reservoirs.
    (2) Diesel and combustion turbine plants. Engineering services, 
prime mover and generator, building (foundation and superstructure), 
and electrical control systems.
    (3) Hydro installations. Engineering services, turbine/generator, 
civil works and powerhouse construction, electrical control system, and 
mechanical installation.


Secs. 1726.126-1726.149  [Reserved]

Subpart E--Buildings


Sec. 1726.150  Headquarters buildings.

    This section includes office buildings, warehouses, and equipment 
service type buildings. Generating plant buildings are covered under 
subpart D of this part.
    (a) Contract forms. The borrower must use REA Form 257, Contract to 
Construct Buildings, for all contracts for construction of new 
headquarters facilities, and additions to, or modifications of existing 
headquarters facilities (except for minor modifications or 
improvements). Nonstandard forms or REA Form 257 with substantial 
alterations must be submitted to REA for approval of the form prior to 
issuing invitations to bids on that form.
    (b) Procurement procedures. A borrower may use Multiparty Lump Sum 
Quotations to award contracts for up to a cumulative total of $250,000 
or one percent of NUP (not to exceed $1,000,000), whichever is greater, 
per calendar year of headquarters construction. The borrower must use 
formal competitive bidding for all other headquarters contract 
construction.
    (c) Contract approval. Contracts for headquarters construction are 
not subject to REA approval and need not be submitted to REA unless 
specifically requested by REA on a case by case basis.


Secs. 1726.151-1726.174  [Reserved]

Subpart F--General Plant


Sec. 1726.175  General plant materials.

    This section covers items such as office furniture and equipment; 
transportation equipment and accessories, including mobile radio 
systems, stores and shop equipment, laboratory equipment, tools and 
test equipment.
    (a) Contract forms. The borrower may, in its discretion, use REA 
Form 173, Material Contract, REA Form 198, Equipment Contract, or a 
purchase order.
    (b) Procurement procedures. It is the responsibility of each 
borrower to determine the procurement method that best meets its needs 
for purchase of general plant material and equipment.
    (c) Contract approval. Contracts for the purchase of general plant 
items are not subject to REA approval and need not be submitted to REA 
unless specifically requested by REA on a case by case basis.


Sec. 1726.176  Communications and control facilities.

    This section covers the purchase of microwave and power line 
carrier communications systems, load control, and supervisory control 
and data acquisition (SCADA) systems. Mobile radio systems are covered 
as general plant materials in Sec. 1726.175.
    (a) Power line carrier systems. Power line carrier equipment will 
frequently be purchased as part of a substation and will be included in 
the complete substation plans and specifications.
    When purchased in this manner, the requirements of subpart C of 
this part, Substation and Transmission Facilities, will apply. If 
obtained under a contract for only a power line carrier system, the 
requirements of paragraph (b) of this section apply.
    (b) Load control systems, communications systems, and SCADA 
systems.--(1) Contract forms. The borrower must use REA Form 786, 
Electric System Communication and Control Equipment Contract.
    (2) Procurement procedures. It is the responsibility of each 
borrower to determine the procurement method that best meets its needs 
to award contracts not requiring REA approval for up to a cumulative 
total of $250,000 or one percent of NUP (not to exceed $2,000,000), 
whichever is greater, per calendar year of communications and control 
facilities construction, exclusive of the cost of owner furnished 
materials and equipment. The borrower must use multiparty negotiation 
for all other communications and control facilities contract 
construction, including all contracts requiring REA approval.
    (3) Contract approval. Individual contracts in excess of $250,000 
or one percent of NUP (not to exceed $500,000), whichever is greater, 
are subject to REA approval.


Secs. 1726.176-1726.199  [Reserved]

Subpart G--Procurement Procedures


Sec. 1726.200  General requirements.

    The borrower must use the procedures described in this subpart 
where such procedures are required under subparts B through F of this 
part. The borrower must ensure that arrangements prior to announcement 
of the award of the contract are such that all bidders are treated 
fairly and no bidder is given an unfair advantage over other bidders.


Sec. 1726.201  Formal competitive bidding.

    The borrower must use the following procedure for Formal 
Competitive Bidding:
    (a) Selection of qualified bidders. The borrower, on advice of the 
engineer, will compile a list of qualified bidders for each proposed 
contract. The borrower will send invitations to bid only to persons or 
organizations on its QBL for the specific project (see Sec. 1726.23).
    (b) Invitations to bid. The borrower, acting through its engineer, 
is responsible for sending out invitations to prospective bidders, 
informing them of scheduled bid openings and taking any other action 
necessary to procure full, free and competitive bidding. The borrower 
should send out a sufficient number of invitations in order to assure 
adequate competition and so that at least three bids will be received. 
Subject to the foregoing criteria, the determination of how many and 
which bidders will be permitted to bid will be the responsibility of 
the borrower.
    (c) Evaluation basis. Any factors, other than lowest dollar amount 
of the bid, which are to be considered in evaluating the proposals of 
qualified bidders (e.g., power consumption, losses, etc.) must be 
stated in the ``Notice and Instructions to Bidders.'' The borrower 
will, if applicable, include the relative weight assigned to each such 
factor and the way in which each factor will be applied.
    (d) Handling of bids received. The borrower or the engineer, as 
applicable, will indicate, in writing, the date and time of receipt by 
the borrower or the engineer on the outside envelope of each bid and 
all letters and other transmittals amending or modifying the bids. Any 
bid received at the designated location after the time specified must 
be returned to the bidder unopened.
    (e) Bid openings. Bid openings are generally conducted by the 
engineer in the presence of bidders and a representative of the 
borrower and the borrower's attorney. Each bona fide bid must be opened 
publicly and reviewed for any irregularities, errors, or exceptions. It 
must be verified that any addendum or supplement to the specification 
has been acknowledged by the bidder. The adequacy of bid bonds or 
certified checks must be verified at this time.
    (f) Conditions affecting acceptability of bids. The borrower must 
take the following specified action if any of the following exist:
    (1) Fewer than three bona fide bids received. If fewer than three 
bona fide bids are received for the contract project, the borrower must 
obtain REA concurrence prior to awarding the contract. The borrower 
may, however, elect to return all bids unopened, make changes in the 
specification or the qualified bidders list or both and invite new 
bids.
    (2) Significant error or ambiguity in the specification. If a 
significant error or ambiguity in the specification is found which 
could result in the bidders having varying interpretations of the 
requirements of the bid, the borrower must either issue an addendum to 
each prospective bidder correcting the error or ambiguity before bids 
are received, or reject all bids and correct the specification. If a 
significant error or ambiguity in the specification is discovered after 
the bids are opened, the borrower must reject all bids, correct the 
specification and invite new bids.
    (3) Minor errors or omissions in the specification. If minor errors 
or omissions in the specification are found, the borrower must issue an 
addendum to each prospective bidder correcting the error or omission 
prior to opening any bids. After bid opening, the error or omission 
must be corrected following the award of the contract.
    (4) Minor errors or irregularities in bid. The borrower may waive 
minor errors or irregularities in any bid, if the borrower determines 
that such minor errors or irregularities were made through 
inadvertence. Any such minor errors or irregularities so waived must be 
corrected on the bid in which they occur prior to the acceptance 
thereof by the borrower.
    (5) Non-minor error or irregularity in bid. If a bid contains a 
non-minor error or irregularity, the bid must be rejected and the bid 
price must not be disclosed.
    (6) Unbalanced bid. If a bid contains disproportionate prices 
between labor and materials or between various construction units, the 
borrower may reject the bid.
    (7) No acceptable price quoted. If none of the bidders quote an 
acceptable price, the borrower may reject all bids.
    (g) Evaluating bids. The borrower, acting through the engineer, 
must conduct the evaluation of bids on the basis of the criteria set 
out in the ``Notice and Instructions to Bidders.'' The contract, if 
awarded, must be awarded to the bidder with the lowest evaluated 
responsive bid.
    (h) Announcement of bids. If possible, the borrower will announce 
bids at the bid opening. However, where extensive evaluation is 
required, the borrower may elect to adjourn and make formal written 
announcement to all bidders at a later time. Any discrepancy in a 
rejected bid must be indicated in the bid announcement.
    (i) Award of contract. Upon completion of the bid evaluations and 
based upon the findings and recommendations of the borrower's 
management and engineer, the borrower's board of directors will either:
    (1) Resolve to award the contract to the lowest evaluated 
responsive bidder; or
    (2) Reject all bids.
    (j) Certification by the borrower and its engineer. The borrower 
shall certify and the engineer shall certify as follows: ``The 
procedures for formal competitive bidding, as described in 7 CFR 
1726.201, were followed in awarding this contract.'' The certification 
executed by and on behalf of the borrower and its engineer shall be 
submitted to REA in writing where required by subpart A of this part.


Sec. 1726.202  Informal competitive bidding.

    Informal competitive bidding is limited to major equipment 
purchases and generation facilities. The borrower must use the 
following procedure for informal competitive bidding:
    (a) Selection of qualified bidders. The borrower, on advice of its 
engineer, will compile a list of qualified bidders for each proposed 
contract. The borrower will send invitations to bid only to persons or 
organizations on its qualified bidder list for the specific project 
(see Sec. 1726.23).
    (b) Invitations to bid. The borrower, acting through the engineer, 
is responsible for sending out invitations to prospective bidders, 
informing them of scheduled bid openings and any other action necessary 
to procure full, free and competitive bidding. In any event, however, 
sufficient invitations need to be sent out to assure adequate 
competition and that at least three bids will be received. Subject to 
the criteria in the preceding sentence, the determination of how many 
and which bidders will be permitted to bid will be the responsibility 
of the borrower.
    (c) Notice and instructions to bidders. The borrower must indicate 
in the ``Notice and Instructions to Bidders'' section of the bid 
documents that bids will be opened privately. The borrower may elect to 
conduct clarifying discussions with the bidders. If such clarifying 
discussions are held, at least the three apparent low evaluated bidders 
must be given an equal opportunity to resolve any questions related to 
the substance of the bidder's proposal and to arrive at a final price 
for a responsive bid.
    (d) Evaluation basis. Any factors, other than lowest dollar amount 
of the bid, which are to be considered in evaluating the proposals of 
qualified bidders (e.g., power consumption, losses, etc.) must be 
stated in the ``Notice and Instructions to Bidders.'' The borrower 
will, if applicable, include the relative weight assigned to each such 
factor and the way in which each factor will be applied.
    (e) Handling of bids received. The borrower or the engineer, as 
applicable, will indicate, in writing, the date and time of receipt by 
the borrower or the engineer on the outside envelope of each bid and 
all letters and other transmittals amending or modifying the bids. Any 
bid received at the designated location after the time specified must 
be returned to the bidder unopened.
    (f) Bid opening. The contracting committee will conduct the bid 
opening in private. The contracting committee will open each bona fide 
bid which has been received prior to the deadline, and review it for 
any irregularities, errors, or exceptions. It must be verified that any 
addendum to the specification has been acknowledged by each bidder. The 
adequacy of bid bonds or certified checks must also be verified.
    (g) Conditions affecting acceptability of bids. The borrower must 
take the following specified action if any of the following exist:
    (1) Fewer than three bona fide bids received. If fewer than three 
bona fide bids are received for the contract project, the borrower must 
obtain REA concurrence prior to awarding the contract. The borrower 
may, however, elect to return all bids unopened, make changes in the 
specification or the qualified bidders list or both and invite new 
bids.
    (2) Significant error or ambiguity in the specification. If a 
significant error or ambiguity in the specification is found which 
could result in the bidders having varying interpretations of the 
requirements of the bid, the borrower must either issue an addendum to 
each prospective bidder correcting the error or ambiguity before bids 
are received, or reject all bids and correct the specification. If a 
significant error or ambiguity in the specification is discovered after 
the bids are opened, the borrower must reject all bids, correct the 
specification and invite new bids.
    (h) Clarification of proposals. The contracting committee may elect 
not to hold any clarifying discussions and recommend awarding the 
contract to the low responsive bidder. Otherwise, the contracting 
committee must give at least each of the three apparent lowest 
evaluated bidders an equal opportunity to attend discussions for the 
purpose of resolving questions regarding the specification and contract 
terms and to arrive at a final price. Neither prices of other bids nor 
relative ranking of any bidder are to be revealed under any 
circumstances. Upon completion of the clarifying discussions, the 
contracting committee will determine the lowest evaluated responsive 
bid. If no bids are responsive after the contracting committee has 
completed clarifying discussions, no contract award can be made under 
the informal bidding procedure.
    (i) Award of the contract. Upon completion of the bid evaluations, 
the contracting committee will promptly report all findings and 
recommendations to the borrower's board of directors. The board will 
either:
    (1) Resolve to award the contract to the lowest evaluated 
responsive bidder; or
    (2) Reject all bids.
    (j) Certifications by the contracting committee. The chairperson of 
the contracting committee shall certify as follows: ``The procedures 
for informal competitive bidding as described in 7 CFR 1726.202 were 
followed in awarding this contract.'' The certification executed by the 
chairperson of the contracting committee shall be submitted to REA in 
writing where required by subpart A of this part.


Sec. 1726.203  Multiparty negotiation.

    Multiparty negotiation may only be used where permitted under 
subpart F of this part or where prior REA approval has been obtained. 
The borrower must use the following procedure for multiparty 
negotiation:
    (a) Selection of qualified bidders. The borrower, on advice of its 
engineer, will compile a list of qualified bidders for each proposed 
contract. The borrower will send invitations to bid only to persons or 
organizations on its qualified bidder list for the specific project 
(see Sec. 1726.23).
    (b) Invitations to bid. The borrower, acting through the engineer, 
is responsible for sending out invitations to prospective bidders, 
informing them of scheduled bid openings and any other action necessary 
to procure full, free and competitive bidding. In any event, however, 
sufficient invitations need to be sent out to assure adequate 
competition and so that at least three bids will be received. Subject 
to the criteria in the preceding sentence, the determination of how 
many and which bidders will be permitted to bid will be the 
responsibility of the borrower.
    (c) Notice and instructions to bidders. The borrower must indicate 
in the ``Notice and Instructions to Bidders'' section of the bid 
documents that bids will be opened privately. The borrower may elect to 
conduct clarifying discussions with the bidders. If such clarifying 
discussions are held, at least the three apparent low evaluated bidders 
must be given an equal opportunity to resolve any questions related to 
the substance of the bidder's proposal and to arrive at a final price.
    (d) Evaluation basis. Any factors, other than lowest dollar amount 
of the bid, which are to be considered in evaluating the proposals of 
qualified bidders (e.g., power consumption, losses, etc.) must be 
stated in the ``Notice and Instructions to Bidders.'' The borrower 
will, if applicable, include the relative weight assigned to each such 
factor and the way in which each factor will be applied.
    (e) Handling of bids received. The borrower or the engineer, as 
applicable, will indicate, in writing, the date and time of receipt by 
the borrower or the engineer on the outside envelope of each bid and 
all letters and other transmittals amending or modifying the bids. Any 
bid received at the designated location after the time specified must 
be returned to the bidder unopened.
    (f) Bid opening. The contracting committee will conduct the bid 
opening in private. The contracting committee will open each bona fide 
bid which has been received prior to the deadline, and review it for 
any irregularities, errors, or exceptions. It must be verified that any 
addendum to the specification has been acknowledged by each bidder. The 
adequacy of bid bonds or certified checks must also be verified.
    (g) Conditions affecting acceptability of bids. The borrower must 
take the following specified action if any of the following exist:
    (1) Fewer than three bona fide bids received. If fewer than three 
bona fide bids are received for the contract project, the borrower must 
obtain REA concurrence prior to awarding the contract. The borrower 
may, however, elect to return all bids unopened, make changes in the 
specification or the qualified bidders list or both and invite new 
bids.
    (2) Significant error or ambiguity in the specification. If a 
significant error or ambiguity in the specification is found which 
could result in the bidders having varying interpretations of the 
requirements of the bid, the borrower must either issue an addendum to 
each prospective bidder correcting the error or ambiguity before bids 
are received, or reject all bids and correct the specification. If a 
significant error or ambiguity in the specification is discovered after 
the bids are opened, the borrower must reject all bids, correct the 
specification and invite new bids.
    (h) Negotiations. The contracting committee may elect not to hold 
any negotiations and recommend award of the contract. Otherwise, the 
contracting committee must give at least each of the three apparent 
lowest evaluated bidders an equal opportunity to attend negotiations 
for the purpose of resolving questions regarding the specification and 
contract terms and to arrive at a final price. Neither prices of other 
bids nor relative ranking of any bidder are to be revealed under any 
circumstances. Upon completion of the negotiations, the contracting 
committee will determine the bid that is in the borrower's best 
interest.
    (i) Award of the contract. Upon completion of the bid evaluations, 
the contracting committee will promptly report all findings and 
recommendations to the borrower's board of directors. The board will 
either:
    (1) Resolve to award the contract to the lowest evaluated 
responsive bidder; or
    (2) Reject all bids.
    (j) Certifications by the contracting committee. The chairperson of 
the contracting committee shall certify as follows: ``The procedures 
for informal competitive bidding as described in 7 CFR 1726.203 were 
followed in awarding this contract.'' The certification executed by the 
chairperson of the contracting committee shall be submitted to REA in 
writing where required by subpart A of this part.


Sec. 1726.204  Multiparty unit price quotations.

    The borrower or its engineer must contact at least three suppliers 
or contractors and, on the basis of written unit price quotations, 
select the supplier or contractor based on the lowest evaluated cost.


Sec. 1726.205  Multiparty lump sum quotations.

    The borrower or its engineer must contact at least three suppliers 
or contractors and, on the basis of written lump sum quotations, select 
the supplier or contractor based on the lowest evaluated cost.


Secs. 1726.206-1726.249  [Reserved]

Subpart H--Modifications to REA Standard Contract Forms


Sec. 1726.250  General.

    REA provides standard contract forms for procurement of materials, 
equipment, and construction, for contract amendments and subcontracts, 
and various related forms for use by REA borrowers. See Sec. 1726.300 
for a listing of these forms and how to obtain them. The standard 
contract forms shall be used by the borrowers in accordance with the 
provisions of this part. REA will give prior approval to certain 
modifications to these forms without changing the applicable 
requirements for REA approval. Such approved modifications are set 
forth in this subpart. These are the only modifications given prior REA 
approval.


Sec. 1726.251  Prior approved contract modification related to price 
escalation on generation contracts.

    (a) General. Where the borrower encounters reluctance among 
manufacturers, suppliers, and contractors to bid a firm price on 
equipment, materials or construction of generation facilities, 
modifications may be made in the REA standard form of contracts. These 
modifications if applicable, may include, as an alternative to the 
standard form, provisions for adjusting a base price either upward or 
downward as determined by changes in specified indexes between the time 
of the bid and the time the work is performed or materials are procured 
by the contractor for such work. A large number of labor and materials 
indexes are published monthly by the Bureau of Labor Statistics (BLS). 
The borrower, on the advice of its engineer, will select the indexes 
for the particular item to be used in the price adjustment clause. 
Suppliers' corporate indexes may not be used. Labor and materials 
indexes are reported in the BLS's monthly publications entitled 
``Employment and Earnings'' and ``Producer Prices and Price Indexes.'' 
These publications may be ordered through the Superintendent of 
Documents, U.S. Government Printing Office, Washington, DC 20402, 
telephone (202) 720-3238, or any of the BLS regional offices.
    (b) Material and equipment contracts. The approved provisions 
needed to reflect the modifications to provide for price escalation in 
the material or equipment contract forms for generation facilities are 
as follows:
    (1) Insert new paragraphs in the Notice and Instructions to Bidders 
as follows:

    ``Proposals are invited on the basis of firm prices (or prices 
with a stated maximum percentage escalation) or on the basis of 
nonfirm prices to be adjusted as provided for below or on both 
bases. The owner may award the contract on either basis.
    Nonfirm prices. The prices are subject to adjustment upward or 
downward based on change in the Bureau of Labor Statistics labor and 
material indexes.
    A proportion of ______ percent [the borrower will enter the 
appropriate percentage amount] of the contract price shall be deemed 
to represent labor cost and shall be adjusted based on changes in 
the Bureau of Labor Statistics, Average Hourly Earnings Rate--______ 
[the borrower will enter the appropriate BLS index] from the month 
in which the bids are opened to the month in which the labor is 
incorporated in the equipment or materials. The adjustment for labor 
costs shall be obtained by applying the percentage of increase or 
decrease in such index, calculated to the nearest one-tenth of one 
percent, to the percentage of the contract prices deemed to 
represent labor costs. A portion of ______ percent [the borrower 
will enter the appropriate percentage amount] of the contract price 
shall be deemed to represent material costs and shall be adjusted 
based on changes in the Bureau of Labor Statistics, material index 
______ [the borrower will enter the appropriate BLS index] for the 
period and in a manner similar to the labor cost adjustment.''

    (2) Insert the following in the contract documents under the 
``Proposal'' section:

``Firm Price $________
Nonfirm Price $________''

    (3) For generating plant equipment that uses a large quantity of 
insulating oil, the borrower may insert the following in the contract 
documents under the ``Proposal'' section:

    ``The price for insulating oil shall be adjusted upward or 
downward based on the change in the Bureau of Labor Statistics 
Refined Petroleum Rate (057) from the month in which the bids are 
opened to the month in which the oil is purchased by the equipment 
supplier. Contracts shall be evaluated based on an estimated cost of 
________ cents per gallon [the borrower will enter the appropriate 
cost] for oil. Such adjustment, if any, shall not change the 
contract amount for purpose of applying any other adjustments to the 
contract prices.''

    (c) Construction contracts. The approved provisions needed to 
reflect the modifications to provide for price escalation in the 
construction contract forms for generation facilities are as follows:
    (1) Insert new paragraphs in the ``Notice and Instructions'' to 
Bidders as follows:

    ``Proposals are invited on the basis of firm prices (or prices 
with a stated maximum percentage escalation) or on the basis of 
nonfirm prices to be adjusted as provided for below or on both 
bases. The owner may award the contract on either basis.''
    Nonfirm Prices--The prices are subject to adjustment upward or 
downward based on changes in the Bureau of Labor Statistics labor 
and material indexes.
    A proportion of ______ percent [the borrower will enter the 
appropriate percentage amount] of the contract price shall be deemed 
to represent shop labor costs and shall be adjusted based on changes 
in the Bureau of Labor Statistics, Average Hourly Earnings Rate 
______ [the borrower will enter the appropriate BLS index] from the 
month in which bids are opened to the month in which the work is 
accomplished. The adjustment for shop labor costs shall be obtained 
by applying the percentage increase or decrease in such index, to 
the percentage of each partial payment deemed to represent shop 
labor costs. A portion of ______ percent [the borrower will enter 
the appropriate percentage amount] of the contract prices shall be 
deemed to represent material costs and shall be adjusted based on 
changes in the Bureau of Labor Statistics, Producer Price Index, 
______ [the borrower will enter the appropriate BLS index] for the 
period and in a manner similar to the shop labor costs adjustment. A 
portion of ______ percent [the borrower will enter the appropriate 
percentage amount] of the contract price shall be deemed to 
represent field labor costs and shall be adjusted based on changes 
in the Bureau of Labor Statistics, Average Hourly Earnings Rate 
______ [the borrower will enter the appropriate BLS index], for the 
period and in a manner similar to the shop labor costs adjustment.''

    (2) Insert the following in the contract documents under the 
``Proposal'' section:

``Firm Price $________
Nonfirm Price $________''


Sec. 1726.252  Prior approved contract modification related to 
liability for special and consequential damages.

    This section applies only to major equipment purchases and 
generation contracts. Where the borrower anticipates difficulty in 
obtaining responsive bids on REA standard contract forms due to a lack 
of limitation with respect to special and consequential damages, and 
where the borrower believes that such a modification will encourage 
competition through the receipt of an alternative bid which limits the 
bidder's liability for special and consequential damages, the borrower 
may make the following approved phrase modifications in the REA 
standard contract form on which the borrower solicits bids:
    (a) Insert new paragraphs in the ``Notice and Instructions to 
Bidders'' as follows:

    ``Proposals are invited on the basis of alternative Liability 
Clauses Numbers 1 and 2. The owner will determine on which Liability 
Clause basis the award will be made. Any other liability clauses in 
the proposal or any other modifications will be considered not 
responsive and unacceptable. These Liability Clauses are defined as 
follows:
    Liability Clause Number 1. This will include unmodified all of 
the standard terms and conditions of the form of contract furnished 
by the owner and attached hereto.
    Liability Clause Number 2. This will include the following 
paragraph, in addition to all of the standard terms and conditions, 
otherwise unmodified, of the form of contract furnished by the owner 
and attached hereto:
    Except for the seller's willful delay or refusal to perform the 
contract in accordance with its terms, the seller's liability for 
special or consequential damages on account of breach of this 
contract shall not exceed in total an amount equal to ______ percent 
[the borrower will insert an appropriate percentage between 0 and 
100 percent, inclusive] of the contract price.'''

    (b) Insert the following in the contract documents under the 
``Proposal'' section:

``Price $ (Based on Liability Clause 1) ________
Price $(Based on Liability Clause 2) ________''

    (c) Insert the following in the acceptance section of the standard 
contract form:

    ``This contract is based on Liability Clause Number ______.''


Sec. 1726.253  Prior approved contract modification related to 
alternative bid provision for payment to contractor for bulk purchase 
of materials.

    When construction is to be performed over an extended period of 
time, but large quantities of material are to be purchased by the 
contractor at the beginning of the project (e.g., cable for URD 
installations), the borrower may allow alternative bids providing for 
payment to the contractor of 90 percent of the cost of such materials 
within 30 days of delivery of those materials at the job site. The 
borrower will retain the right to award the contract with or without 
the alternative payment provision , however, but the contract still 
must be awarded on the basis of the lowest evaluated responsive bid for 
the alternative accepted. REA Form 800, Construction Contract Amendment 
for Payment, must be used by the contractor to obtain payment from the 
borrower if this alternative is accepted, and the conditions of 
Sec. 1726.27 (a)(1) through (a)(4) and the payment terms of 
Sec. 1726.27(d) will also apply to this section.


Sec. 1726.254  Prior approved contract modifications related to REA 
approval of contracts and amendments.

    It will be necessary for borrowers to make certain modifications to 
various REA contract forms to implement the provisions of this part. 
These modifications indicate that certain provisions related to REA 
approval are not applicable under specified circumstances. The 
modifications are as follows:
    (a) REA Form 173 Materials Contract. No modifications.
    (b) REA Form 180 Construction Contract Amendment. No modifications.
    (c) REA Form 198 Equipment Contract. For contracts NOT requiring 
approval of the Administrator (in accordance with subparts B through F 
of this part) the applicable modifications are as follows:
    (1) Change section 5(e) of the ``Equipment Contract'' to read as 
follows:

    ``(e) Each and all of the covenants and agreements herein 
contained shall extend to and be binding upon the successors and 
assigns of the parties hereto provided, however, the Seller shall 
not assign this contract or any part hereof without approval in 
writing of the Purchaser, and further the Seller shall not enter 
into any contract with any person, firm or corporation for the 
performance of the Seller's obligations hereunder, or any part 
thereof, without the approval in writing of the Purchaser.''

    (2) Delete Section 5(f) of the ``Equipment Contract.''
    (d) REA Form 200 Construction Contract--Generating. For contracts 
NOT requiring approval of the Administrator (in accordance with 
subparts B through F of this part) the applicable modifications are as 
follows:
    (1) Contractor's Proposal, Article II, Section 3(a), Sentence 2. 
Delete the words ``and the Administrator.''
    (2) Contractor's Proposal, Article II, Section 3(d), Sentence 2. 
Delete the words ``and approved by the Administrator\1\'' and the 
associated footnote.
    (3) Contractor's Proposal, Article VI, Section 7. Change to read as 
follows:

    ``Nonassignment of Contract. Except as provided in Section 8 of 
this Article, the Bidder will not assign this Contract, or any 
interest in any funds that may become due hereunder, or enter into 
any contract with any person, firm or corporation, for the 
performance of the Bidder's obligations hereunder, or any part 
hereof without the approval in writing of the Owner and the Surety 
or Sureties, if any.''

    (4) Contractor's Proposal, Article VI. Delete Section 10.
    (5) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''
    (e) REA Form 201 Right-of-Way Clearing Contract. No modifications.
    (f) REA Form 203 Transmission System Right-of-Way Clearing 
Contract. For contracts NOT requiring approval of the Administrator (in 
accordance with subparts B through F of this part) the applicable 
modifications are as follows.
    (1) Notice and Instructions to Bidders, Section 8. Delete the words 
``and such acceptance has been approved by the Administrator.''
    (2) Contractor's Proposal, Article II, Section 1(a). Replace the 
word ``Administrator'' with the word ``Owner'' in two places in the 
referenced section.
    (3) Contractor's Proposal, Article II, Section 3(d), Sentence 1. 
Delete the words ``and with the approval of the Administrator\1\'' and 
the associated footnote.
    (4) Contractor's Proposal, Article II, Section 3(d), Sentence 3. 
Delete the words ``and approved by the Administrator\2\'' and the 
associated footnote.
    (5) Contractor's Proposal, Article III, Section 1. Delete the words 
``and the Administrator'' in five places in the referenced section.
    (6) Contractor's Proposal, Article III, Section 1(b). Replace the 
word ``Administrator'' with the word ``Owner.''
    (7) Contractor's Proposal, Article III, Section 1(e). Replace the 
word ``Administrator'' with the word ``Owner.''
    (8) Contractor's Proposal, Article VI, Section 1(d). Delete the 
words ``and the Administrator.''
    (9) Contractor's Proposal, Article VI. Delete Section 10.
    (10) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''
    (g) REA Form 238 Construction or Equipment Contract Amendment. If 
the contract amendment does not require REA approval, in accordance 
with Sec. 1726.24(b), the borrower may delete from REA Form 238 the 
following sentence:

    ``(The Administrator of REA is hereby authorized to approve this 
amendment either in whole or in part and to delete such items as do 
not meet his approval.)''

    (h) REA Form 257 Contract to Construct Buildings. No modifications.
    (i) REA Form 282 Subcontracts. The applicable modifications are as 
follows:
    (1) Section 6, line 3. Delete the words ``and the Administrator of 
the Rural Electrification Administration (hereinafter called the 
Administrator).''
    (2) Section 7, line 2. Change Section 7, line 2 to read as follows:

``approved in writing by the Owner and the Surety, if any; provided, 
* * *''

    (3) Section 7, line 3. Delete the words ``and the Administrator.''
    (j) REA Form 764 Substation and Switching Station Erection 
Contract. For contracts NOT requiring approval of the Administrator (in 
accordance with subparts B through F of this part) the applicable 
modifications are as follows:
    (1) Notice and Instructions to Bidders, Section 10. Delete the 
words ``and such acceptance has been approved by the Administrator.''
    (2) Contractor's Proposal, Article II, Section 1.a. Replace the 
word ``Administrator'' with the word ``Owner'' in two places in the 
referenced section.
    (3) Contractor's Proposal, Article II, Section 1.d, Sentence 1. 
Delete the words ``and with the approval of the Administrator\1\'' and 
the associated footnote.
    (4) Contractor's Proposal, Article II, Section 1.d, Sentence 2. 
Delete the words ``and approved by the Administrator\2\'' and the 
associated footnote.
    (5) Contractor's Proposal, Article III, Section 1. Delete the words 
``and the Administrator'' in five places in the referenced section.
    (6) Contractor's Proposal, Article III, Section 1.b. Replace the 
word ``Administrator'' with the word ``Owner.''
    (7) Contractor's Proposal, Article III, Section 1.e. Replace the 
word ``Administrator'' with the word ``Owner.''
    (8) Contractor's Proposal, Article VI, Section 1.e. Delete the 
words ``and the Administrator.''
    (9) Contractor's Proposal, Article VI. Delete Section 10.
    (10) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''
    (k) REA Form 786 Electric System Communications and Control 
Equipment Contract (including installation). For contracts NOT 
requiring approval of the Administrator (in accordance with subparts B 
through F of this part) the applicable modifications are as follows:
    (1) Article I, Section 2. Delete the words ``subject to the 
approval of the Administrator\1\'' and ``and approved by the 
Administrator\2\'' and the associated footnotes.
    (2) Article II, Section 1, Sentence 2. Replace the word 
``Administrator'' with ``Purchaser.''
    (3) Article II, Section 5. Delete the words ``subject to the 
approval of the Administrator\3\'' and ``subject to the approval of the 
Administrator\4\'' and the associated footnotes.
    (4) Article III, Section 2, Sentence 3. Replace the words ``if the 
Administrator shall so approve'' with the words ``if the Purchaser 
shall so approve.''
    (5) Article VI. Delete Section 7.
    (6) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''
    (l) REA Form 790 Distribution Line Extension Construction Contract 
(Labor and Materials). No modifications.
    (m) REA Form 792 Distribution Line Extension Construction Contract 
(Labor Only). No modifications.
    (n) REA Form 800 Construction Contract Amendment for Payment. No 
modifications.
    (o) REA Form 830 Electric System Construction Contract. No 
modifications.
    (p) REA Form 831 Electric Transmission Construction Contract. For 
contracts NOT requiring approval of the Administrator (in accordance 
with subparts B through F of this part) the applicable modifications 
are as follows:
    (1) Notice and Instructions to Bidders, Section 10. Delete the 
words ``and such acceptance has been approved by the Administrator.''
    (2) Contractor's Proposal, Article II, Section 1.d. Delete the 
words ``with the approval of the Administrator\1\'' and ``and approved 
by the Administrator\2\'' and the associated footnotes.
    (3) Contractor's Proposal, Article II, Section 4.a. Delete the 
words ``and approved by the Administrator\3\'' and the associated 
footnote.
    (4) Contractor's Proposal, Article III, Section 1.a, Sentence 4. 
Delete the words ``and the Administrator.''
    (5) Contractor's Proposal, Article III, Section 1.b. Replace the 
word ``Administrator'' with the word ``Owner.''
    (6) Contractor's Proposal, Article III, Section 1.c. Delete the 
words ``and the Administrator'' in four places in the referenced 
section.
    (7) Contractor's Proposal, Article III, Section 1.e. Replace the 
word ``Administrator'' with the word ``Owner.''
    (8) Contractor's Proposal, Article VI, Section 1.e. Delete the 
words ``and the Administrator.''
    (9) Contractor's Proposal, Article VI. Delete Section 11.
    (10) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''


Secs. 1726.255--1726.299  [Reserved]

Subpart I--REA Standard Forms


Sec. 1726.300  List of REA standard contracting forms for electric 
systems.

    The following is a list of the current REA standard contracting 
forms that REA has prepared for use by electric borrowers when 
purchasing materials and equipment and constructing facilities with an 
REA loan or loan guarantee. Copies of the contract forms are available 
from the sources indicated in the listing. A notice of any change in 
these contract forms will be published in the Federal Register.

                                  REA Electric Program Standard Contract Forms                                  
----------------------------------------------------------------------------------------------------------------
                    Issue                                                                                       
  REA Form No.       date          Title                Purpose                    Source of copies\1\          
----------------------------------------------------------------------------------------------------------------
168b............       3-62  Contractor's bond  Used in REA Forms 200,  In respective contract form.            
                                                 203, 764, 790, 830 &                                           
                                                 831.                                                           
168c............       4-79  Contractor's bond  In lieu of REA Form     REA.                                    
                              (less than $1      168b, used when                                                
                              million).          contractor's surety                                            
                                                 has accepted a small                                           
                                                 business                                                       
                                                 administration                                                 
                                                 guarantee.                                                     
172.............       9-58  Certificate of     Used to notify REA      REA.                                    
                              Inspection         that construction is                                           
                              Contract           ready for inspection.                                          
                              Construction.                                                                     
173.............       3-55  Materials          Used for distribution,  REA.                                    
                              contract.          transmission, and                                              
                                                 general plant                                                  
                                                 material purchases.                                            
180.............       8-66  Construction       Used to amend           REA.                                    
                              Contract           distribution line                                              
                              Amendment.         construction                                                   
                                                 contracts.                                                     
181.............       4-72  Certificate of     Used for the closeout   REA.                                    
                              Completion         of REA Form 257.                                               
                              Contract                                                                          
                              Construction for                                                                  
                              Buildings.                                                                        
187.............       3-66  Certificate of     Used in REA Forms 200,  In respective contract form.            
                              Completion         830, and 831.                                                  
                              Contract                                                                          
                              Construction.                                                                     
198.............       3-73  Equipment          Used for equipment      REA.                                    
                              Contract.          purchases..                                                    
200.............       9-72  Construction       Used for generating     REA.                                    
                              Contract-          plant construction or                                          
                              Generating.        for the furnishing                                             
                                                 and installation of                                            
                                                 major items of                                                 
                                                 equipment.                                                     
201.............       7-72  Right-of-Way       Used for distribution   REA.                                    
                              Clearing           right-of-way clearing                                          
                              Contract.          work which is to be                                            
                                                 performed separate                                             
                                                 from line                                                      
                                                 construction.                                                  
203.............       3-72  Transmission       Used for transmission   REA.                                    
                              System Right-of-   line right-of-way                                              
                              Way Clearing       clearing work which                                            
                              Contract.          is to be performed                                             
                                                 separate from line                                             
                                                 construction.                                                  
213.............       8-52  Certificate        Used to document        REA.                                    
                              (``Buy             compliance with the                                            
                              American'').       ``Buy American''                                               
                                                 requirement.                                                   
219.............      10-88  Inventory of Work  Used to encumber funds  REA.                                    
                              Orders.                                                                           
224.............       3-55  Waiver and         Used in REA Forms 200,  In respective contract form.            
                              Release of Lien.   203, 764, 830, and                                             
                                                 831.                                                           
231.............       4-72  Certificate of     Used in REA Forms 200,  In respective contract form.            
                              Contractor..       203, 764, 830, and                                             
                                                 831.                                                           
238.............       4-72  Construction or    Used to amend           REA.                                    
                              Equipment          contracts except for                                           
                              Contract           distribution line                                              
                              Amendment.         construction                                                   
                                                 contracts.                                                     
251.............       5-53  Material Receipt.  Used in REA Forms 764,  In respective contract form.            
                                                 830, and 831.                                                  
254.............       3-67  Construction       Used with the closeout  REA.                                    
                              Inventory.         of REA Forms 203,                                              
                                                 764, 830, and 831.                                             
257.............       3-73  Contract to        Used to construct       GPO.\2\                                 
                              Construct          headquarter                                                    
                              Buildings.         buildings, generating                                          
                                                 plant buildings and                                            
                                                 other structure                                                
                                                 construction.                                                  
257a............      10-69  Contractor's bond  Used in REA Form 257..  In contract form.                       
270.............       7-70  Equal Opportunity  Addendum to contracts   REA.                                    
                              Addendum.          not having current                                             
                                                 equal opportunity                                              
                                                 provisions.                                                    
274.............       6-81  Bidder's           Used to document        REA.                                    
                              Qualifications.    Bidder's                                                       
                                                 Qualifications.                                                
282.............      11-53  Subcontract......  Used for                REA.                                    
                                                 subcontracting.                                                
307.............       4-60  Bid Bond.........  Used In REA Forms 200,  In respective contract form.            
                                                 203, 257, 764, 830                                             
                                                 and 831.                                                       
458.............       3-55  Material Contract  Used to obtain          REA.                                    
                                                 generating plant                                               
                                                 material and                                                   
                                                 equipment purchases                                            
                                                 over $10,000, not                                              
                                                 requiring acceptance                                           
                                                 tests at the project                                           
                                                 site.                                                          
764.............       8-72  Substation and     Used to construct       REA.                                    
                              Switching          substations and                                                
                              Station Erection   switching stations.                                            
                              Contract.                                                                         
786.............       3-72  Electric System    Used for delivery and   REA.                                    
                              Communications     installation of                                                
                              and Control        equipment for system                                           
                              Equipment          communications.                                                
                              Contract.                                                                         
790.............       5-70  Distribution Line  Used for limited        GPO.\2\                                 
                              Extension          distribution                                                   
                              Construction       construction                                                   
                              Contract (labor    accounted for under                                            
                              & materials).      work order procedure.                                          
792.............       5-70  Distribution Line  Used for limited        GPO.\2\                                 
                              Extension          distribution                                                   
                              Construction       construction                                                   
                              Contract (labor    accounted for under                                            
                              only).             work order procedure.                                          
792a............      10-62  Contractor's Bond  Used in REA Forms 201   In respective contract form.            
                                                 and 792.                                                       
792b............       2-72  Certificate of     Used in REA Forms 201,  In respective contract form.            
                              Construction and   790, and 792.                                                  
                              Indemnity                                                                         
                              Agreement.                                                                        
792c............       5-70  Supplemental       Used in REA Forms 201,  In respective contract form.            
                              Contract for       790, and 792.                                                  
                              Additional                                                                        
                              Project.                                                                          
800.............       6-81  Construction       Used for payment for    REA.                                    
                              Contract           materials delivered.                                           
                              Amendment for                                                                     
                              Payment.                                                                          
830.............       8-72  Electric System    Used for distribution   GPO.\2\                                 
                              Construction       and/or transmission                                            
                              Contract (labor    project construction.                                          
                              & material).                                                                      
831.............       2-73  Electric           Used for transmission   GPO.\2\                                 
                              Transmission       project construction.                                          
                              Construction                                                                      
                              Contract (labor                                                                   
                              & material).                                                                      
----------------------------------------------------------------------------------------------------------------
Notes: 1. A single copy of the form will be furnished by REA upon request. Additional copies may be duplicated  
  or reproduced. Requests for copies should be sent to: Director, Administrative Services Division, U.S.        
  Department of Agriculture, Rural Electrification Administration, Washington, DC 20250.                        
2. Requests for copies should be submitted to the Superintendent of Documents, U.S. Government Printing Office, 
  Washington, DC 20402. Telephone orders may also be placed, using Mastercard or Visa, by calling (202) 783-    
  3238.                                                                                                         

Sec. 1726.301  Use of printed forms.

    If a REA contract form is required by this part, the borrower shall 
use the form in the format available from REA or GPO (photocopying or 
other exact reproduction is acceptable.) The contract forms are not to 
be retyped, changed, modified or altered in any manner not specifically 
authorized in this part or approved by REA in writing. Any 
modifications approved by REA must be clearly shown so to indicate that 
such are different from the standard form.


Sec. 1726.302  REA approved forms of contract.

    If a specific REA contract form is required by a particular section 
of this part, the borrower shall use that form without changes or 
modifications or alterations unless, prior to issuing the bid package 
to bidders, REA has specifically approved any such changes to that form 
for that borrower. Any proposed changes shall not relieve the 
contractor or the borrower of the basic responsibilities required by 
the standard REA contract form, and, shall not alter any terms and 
conditions required by law. Changes permitted or required by subpart H 
of this part or by part 1788, REA Fidelity and Insurance Requirements 
for Electric and Telephone Borrowers, of this chapter are approved by 
REA under the circumstances indicated.


Sec. 1726.303  Interest on overdue accounts.

    Certain REA contract forms contain a provision concerning payment 
of interest on overdue accounts. Prior to issuing the invitation to 
bidders, the borrower must insert an interest rate equal to the lowest 
``Prime Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued. If no prime rate 
is published on that date, the last such rate published prior to that 
date must be used. The rate must not, however, exceed the maximum rate 
allowed by any applicable state law.


Secs. 1726.304--1726.309  [Reserved]


Sec. 1726.310  Contractor's bond, REA Form 168b.

    The bond form in this section shall be used when a Contractor's 
Bond is required by REA Forms 200, 201, 203, 257, 764, 786, 790, 792, 
830, or 831 unless the contractor's surety has accepted a Small 
Business Administration guarantee and the contract is for one million 
dollars or less.

Contractor's Bond

    1. Know all men that we, ________, as Principal, and ________, 
as Surety, are held and firmly bound unto ________ (hereinafter 
called the ``Owner'') and unto the United States of America 
(hereinafter called the ``Government'') and unto all persons, firms 
and corporations who or which may furnish materials for or perform 
labor on a Rural Electrification Administration Project known as 
Project ________ and to their successors and assigns, in the penal 
sum of ________ dollars ($________), as hereinafter set forth and 
for the payment of which sum well and truly to be made we bind 
ourselves, our executors, administrators, successors and assigns 
jointly and severally by these presents. Said Project is described 
in a certain construction contract (hereinafter called the 
``Construction Contract'') between the Owner and the Principal, 
dated ________, 19____, pursuant and subject to a certain loan 
contract (hereinafter called the ``Loan Contract'') between the 
Owner and the Government, acting through the Administrator of the 
Rural Electrification Administration (hereinafter called the 
``Administrator'').
    2. The condition of this obligation is such that if the 
Principal shall well and truly perform and fulfill all the 
undertakings, covenants, terms, conditions and agreements of the 
Construction Contract and any amendments thereto, whether such 
amendments are for additions, decreases, or changes in materials, 
their quantity, kind or price, labor costs, mileage, routing or any 
other purpose whatsoever, and whether such amendments are made with 
or without notice to the Surety, and shall fully indemnify and save 
harmless the Owner and the Government from all costs and damages 
which they, or either of them, shall suffer or incur by reason of 
any failure so to do, and shall fully reimburse and repay the Owner 
and the Government for all outlay and expense which they, or either 
of them shall incur in making good any such failure of performance 
on the part of the Principal, and shall promptly make payment to all 
persons working on or supplying labor or materials for use in the 
construction of the Project contemplated in the Construction 
Contract and any amendments thereto, in respect of such labor or 
materials furnished and used therein, to the full extent thereof, 
and in respect of such labor or materials furnished but not so used, 
to the extent of the quantities estimated in the Construction 
Contract and any amendments thereto to be required for the 
construction of the Project, and shall well and truly reimburse the 
Owner and the Government, as their respective interests may appear, 
for any excess in cost of construction of said Project over the cost 
of such construction as provided in the Construction Contract and 
any amendments thereto, occasioned by any default of the Principal 
under the Construction Contract and any amendments thereto, then 
this obligation shall be null and void, but otherwise shall remain 
in full force and effect.
    3. It is expressly agreed that this bond shall be deemed amended 
automatically and immediately, without formal and separate 
amendments hereto, upon any amendment to the Construction Contract, 
so as to bind the Principal and the Surety to the full and faithful 
performance of the Construction Contract as so amended, provided 
only that the total amount of all increases in the cost of 
construction shall not exceed 20 percent of the amount of the 
maximum price set forth in the Construction Contract. The term 
``Amendment,'' wherever used in this bond, and whether referring to 
this bond, the Construction Contract or the Loan Contract shall 
include any alteration, addition, extension, modification, 
amendment, rescission, waiver, release or annulment, of any 
character whatsoever.
    4. It is expressly agreed that any amendment which may be made 
by agreement or otherwise between the Principal and the Owner in the 
terms, provisions, covenants and conditions of the Construction 
Contract, or in the terms, provisions, covenants and conditions of 
the Loan Contract (including, without limitation, the granting by 
the Administrator to the Owner of any extension of time for the 
performance of the obligations of the Owner under the Loan Contract 
or the granting by the Administrator or the Owner to the Principal 
of any extension of time for the performance of the obligations of 
the Principal under the Construction Contract, or the failure or 
refusal of the Administrator or the Owner to take any action, 
proceeding or step to enforce any remedy or exercise any right under 
either the Construction Contract or the Loan Contract, or the taking 
of any action, proceeding or step by the Administrator or the Owner, 
acting in good faith upon the belief that the same is permitted by 
the provisions of the Construction Contract or the Loan Contract) 
shall not in any way release the Principal and the Surety, or either 
of them or their respective executors, administrators, successors or 
assigns, from liability hereunder. The Surety hereby acknowledges 
receipt of notice of any amendment, indulgence or forbearance, made, 
granted or permitted.
    5. This bond is made for the benefit of all persons, firms and 
corporations who or which may furnish any materials or perform any 
labor for or on account of the construction to be performed under 
the Construction Contract and any amendments thereto, and they, and 
each of them, are hereby made obligees hereunder with the same force 
and effect as if their names were written herein as such, and they 
and each of them may sue hereon.
    In witness whereof, the undersigned have caused this instrument 
to be executed and their respective corporate seals to be affixed 
and attested by their duly authorized representatives this ________ 
day of ________, 19____.

Principal ________ (Seal)
By ________
Attest: ________ Secretary
Surety ________ (Seal)
By ________
Attest: ________ Secretary
________Address of Surety's Home Office
By ________ Resident Agent of Surety

    Signatures: The Contractor's Bond must be signed with the full 
name of the Contractor. If the Contractor is a partnership the 
Contractor's Bond must be signed in the partnership name by a 
partner. If the Contractor is a corporation the Contractor's Bond 
must be signed in the corporate name by a duly authorized officer 
and the corporate seal affixed and attested by the Secretary of the 
corporation. A typewritten copy of all such names and signatures 
shall be appended.
    Power of Attorney: The Contractor's Bond must be accompanied by 
a power of attorney authorizing execution on behalf of the Surety 
and, in jurisdictions so requiring should be countersigned by a duly 
authorized resident agent of the Surety.

[End of clause]


Sec. 1726.311  Contractor's bond, REA Form 168c.

    The bond form in this section shall be used when a Contractor's 
Bond is required by REA Form 200, 201, 203, 257, 764, 786, 790, 792, 
830, or 831 and the contractor's surety has accepted a Small Business 
Administration guarantee and the contract is for one million dollars or 
less.

Contractor's Bond

    (Use only when contract is less than $1 million and Surety has 
accepted an SBA (Small Business Administration) Guarantee)
    1. Know all men that we, ________, as Principal, and ________, 
as Surety, are held and firmly bound unto ________ (hereinafter 
called the ``Owner'') and unto the United States of America 
(hereinafter called the ``Government'') and unto all persons, firms 
and corporations who or which may furnish materials for or perform 
labor on a Rural Electrification Administration Project known as 
Project ________ and to their successors and assigns, in the penal 
sum of ________ dollars ($________), as hereinafter set forth and 
for the payment of which sum well and truly to be made we bind 
ourselves, our executors, administrators, successors and assigns 
jointly and severally by these presents. Said Project is described 
in a certain construction contract (hereinafter called the 
``Construction Contract'') between the Owner and the Principal, 
dated ________, 19____, pursuant and subject to a certain loan 
contract (hereinafter called the ``Loan Contract'') between the 
Owner and the Government, acting through the Administrator of the 
Rural Electrification Administration (hereinafter called the 
``Administrator'').
    2. The condition of this obligation is such that if the 
Principal shall well and truly perform and fulfill all the 
undertakings, covenants, terms, conditions and agreements of the 
Construction Contract and any amendments thereto, whether such 
amendments are for additions, decreases, or changes in materials, 
their quantity, kind or price, labor costs, mileage, routing or any 
other purpose whatsoever, and whether such amendments are made with 
or without notice to the Surety, and shall fully indemnify and save 
harmless the Owner and the Government from all costs and damages 
which they, or either of them, shall suffer or incur by reason of 
any failure so to do, and shall fully reimburse and repay the Owner 
and the Government for all outlay and expense which they, or either 
of them shall incur in making good any such failure of performance 
on the part of the Principal, and shall promptly make payment to all 
persons working on or supplying labor or materials for use in the 
construction of the Project contemplated in the Construction 
Contract and any amendments thereto, in respect of such labor or 
materials furnished and used therein, to the full extent thereof, 
and in respect of such labor or materials furnished but not so used, 
to the extent of the quantities estimated in the Construction 
Contract and any amendments thereto to be required for the 
construction of the Project, and shall well and truly reimburse the 
Owner and the Government, as their respective interests may appear, 
for any excess in cost of construction of said Project over the cost 
of such construction as provided in the Construction Contract and 
any amendments thereto, occasioned by any default of the Principal 
under the Construction Contract and any amendments thereto, then 
this obligation shall be null and void, but otherwise shall remain 
in full force and effect.
    3. Provided, that the liability of the Principal and Surety 
hereunder to the Government shall be subject to the same limitations 
and defenses as may be available to them against a claim hereunder 
by the Owner, provided, however, that the Government may, at its 
option, perform any obligations of the Owner required by the 
contract.
    4. It is expressly agreed that this bond shall be deemed amended 
automatically and immediately, without formal and separate 
amendments hereto, upon any amendment to the Construction Contract, 
so as to bind the Principal and the Surety to the full and faithful 
performance of the Construction Contract as so amended, provided 
only that the total amount of all increases in the cost of 
construction shall not exceed 20 percent of the amount of the 
maximum price set forth in the Construction Contract. The term 
``Amendment,'' wherever used in this bond, and whether referring to 
this bond, the Construction Contract or the Loan Contract shall 
include any alteration, addition, extension, modification, 
amendment, rescission, waiver, release or annulment, of any 
character whatsoever.
    5. It is expressly agreed that any amendment which may be made 
by agreement or otherwise between the Principal and the Owner in the 
terms, provisions, covenants and conditions of the Construction 
Contract, or in the terms, provisions, covenants and conditions of 
the Loan Contract (including, without limitation, the granting by 
the Administrator to the Owner of any extension of time for the 
performance of the obligations of the Owner under the Loan Contract 
or the granting by the Administrator or the Owner to the Principal 
of any extension of time for the performance of the obligations of 
the Principal under the Construction Contract, or the failure or 
refusal of the Administrator or the Owner to take any action, 
proceeding or step to enforce any remedy or exercise any right under 
either the Construction Contract or the Loan Contract, or the taking 
of any action, proceeding or step by the Administrator or the Owner, 
acting in good faith upon the belief that the same is permitted by 
the provisions of the Construction Contract or the Loan Contract) 
shall not in any way release the Principal and the Surety, or either 
of them or their respective executors, administrators, successors or 
assigns, from liability hereunder. The Surety hereby acknowledges 
receipt of notice of any amendment, indulgence or forbearance, made, 
granted or permitted.
    6. This bond is made for the benefit of all persons, firms and 
corporations who or which may furnish any materials or perform any 
labor for or on account of the construction to be performed under 
the Construction Contract and any amendments thereto. Provided, that 
beneficiaries or claimants hereunder shall be limited to the 
subcontractors, and persons, firms and corporations having a direct 
contract with the Principal or its subcontractors.
    7. Provided, further, that no suit or action shall be commenced 
hereunder by any person, firm, or corporation who performed work or 
labor or who furnished materials for the project: (a) Unless such 
person, firm, or corporation, other one having a direct contract 
with the Principal (or with the Government in the event the 
Government is performing the obligation of the Owner), shall have 
given detailed written notice of claim to: The Principal, and the 
Owner, within ninety (90) days after such person, firm, or 
corporation did or performed the last of the work or labor, or 
furnished the last of the materials for which such claim is made. 
(b) After the expiration of one (1) year following the date on which 
Principal ceased work on said contract, it being understood, 
however, that if any limitation embodied in the Bond is prohibited 
by any law controlling the construction hereof, such limitation 
shall be deemed to be amended so as to equal to the minimum period 
of limitation permitted by such law.
    In witness whereof, the undersigned have caused this instrument 
to be executed and their respective corporate seals to be affixed 
and attested by their duly authorized representatives this ________ 
day of ________, 19________.

Principal ________ (Seal)
By ________
Attest: ________ Secretary
Surety ________ (Seal)
By ________
Attest: ________ Secretary
________ Address of Surety's Home Office
By ________ Resident Agent of Surety

    Signatures: The Contractor's Bond must be signed with the full 
name of the Contractor. If the Contractor is a partnership the 
Contractor's Bond must be signed in the partnership name by a 
partner. If the Contractor is a corporation the Contractor's Bond 
must be signed in the corporate name by a duly authorized officer 
and the corporate seal affixed and attested by the Secretary of the 
corporation. A typewritten copy of all such names and signatures 
shall be appended.
    Power of Attorney: The Contractor's Bond must be accompanied by 
a power of attorney authorizing execution on behalf of the Surety 
and, in jurisdictions so requiring should be countersigned by a duly 
authorized resident agent of the Surety.

[End of clause]


Sec. 1726.312  Construction contract amendment, REA Form 180.

    The amendment form in this section shall be used when required by 
this part.

Construction Contract Amendment

    Instructions--Submit 3 copies of this form & 3 copies of all 
attachments.
    To: Administrator Rural Electrification Administration, U.S. 
Department of Agriculture, Washington, DC 20250.

    1. Project Designation ________
    2. Amendment No. ________
    3. Date ________
    4. Details of changes are tabulated on sheet ________ to 
________ attached and are part of this amendment.
    5. The following changes in Construction Contract Number 
________ dated ________, 19________ are hereby submitted for your 
approval.
    6. Data pertinent to the original contract and amendments 
including this amendment are as follows (decrease to be preceded by 
(-) minus sign): 

------------------------------------------------------------------------
     Consumers           Miles       Signed      Potential      Price   
------------------------------------------------------------------------
Original Contract:                                                      
    Amendment No. 1.                                                    
    Amendment No. 2.                                                    
    Amendment No. 3.                                                    
    Amendment No. 4.                                                    
    Amendment No. 5.                                                    
    Amendment No. 6.                                                    
        Total With                                                      
         This                                                           
         Amendment .                                                    
------------------------------------------------------------------------

    7. Changes in materials furnished by Owner: This amendment 
provides for an increase/decrease of $______ in the amount of 
materials furnished by Owner. The details of changes in items, 
quantities, or prices are tabulated on sheet ______ to ______ 
attached and made a part hereof.
    8. Bond extension attached ____ Yes ____ No
    9. The construction period will be changed ______ days.
    10. New counties (if any) ______
    11. Description and reason for change: ______
    This amendment providing for an increase/decrease of $______ in 
the amount of said construction contract is submitted pursuant to 
the provisions thereof and pursuant to the loan contract between the 
United States of America and the undersigned borrower. You are 
hereby authorized to approve this amendment either in whole or in 
part and to delete such items as do not meet with your approval. To 
the extent the items hereof are approved by you the construction 
contract shall be amended.

Accepted

________ Contractor

    By ________ President-Owner-Partner (Strike out inapplicable 
title. If signed by other than above, power of attorney should be 
attached or on file with REA.)

________ Date
________ Owner

    By ________ President-Board of Directors

________ Date

Approved

________ Date
________ Engineer for the Borrower

Details of Contract Amendment

Item No. ________
Assembly Unit Designation ________
Quantity Previously Approved ________
Net Change Number Of Units ________

    Contract Amended To Read (Show quantities and prices as revised 
by this amendment):

Number of Units ________

    Unit Price:

Labor ________
Material ________
Total ________
Total Price ________
Total Increase Price ________
Total Decrease ________
Totals ________
Net Total ________

[End of Clause]


Sec. 1726.313  Certificate of completion, contract construction for 
buildings, REA Form 181.

    The closeout form in this section shall be used when required by 
this part.

Certificate Of Completion; Contract Construction For Buildings

________ (Project Designation)

    I, the undersigned Architect of the above-designated Rural 
Electrification Administration Project, hereby certify that:
    1. The construction provided for pursuant to Construction 
Contract No. ________ dated ________ 19____, including all approved 
amendments (hereinafter called the ``Project''), between ________ 
(``Owner'') and ________ (``Contractor'') has been completed as of 
________ 19____, and is in all respects in strict compliance with 
the provisions of the Loan Contract and the Construction Contract, 
including the Plans and Specifications and all modifications 
thereto.
    2. To the best of my knowledge, payment in full has been made to 
all persons who have furnished labor for the Project.
    3. The Contractor has, to the best of my knowledge, obtained 
valid releases of lien from all Manufacturers, materialmen, and 
subcontractors that furnished materials or services or both which 
were employed by the Contractor in the performance of the 
Construction Contract, and that such releases have been delivered to 
the Owner.
    4. All defects in workmanship and materials reported during the 
period of construction of the Project have been corrected.
    5. The final Contract Price of the Project as completed is 
________ dollars ($________).

________ Date
________ Representative of Architect
________ Title

ACCEPTANCE

________ Date
________ Representative of Contractor
________ Title
________ Date
________ Name of Owner
________ President, Board of Directors

[End of Clause]


Sec. 1726.314  Certificate of completion, contract construction, REA 
Form 187.

    The closeout form in this section shall be used when required by 
this part.

Certificate Of Completion; Contract Construction

To: Administrator
Rural Electrification Administration
U.S. Department of Agriculture, Washington, DC 20250
________ (Project Designation)

    I, the undersigned Engineer of the above-designated Rural 
Electrification Administration Project do hereby certify that:
    1. The construction provided for pursuant to Construction 
Contract No. ________ dated ________ 19____, including all approved 
amendments (hereinafter called the ``Project''), between ________ 
(``Owner'') and ________ (``Contractor'') has been completed as of 
________ 19____, and is in all respects in strict compliance with 
the provisions of the Loan Contract and the Construction Contract, 
including all Plans, specifications, maps, and drawings and all 
modifications thereof.
    2. Payment in full has been made to all persons who have 
furnished labor for the Project.
    3. The Contractor has obtained valid releases of lien from all 
persons, firms and/or corporations furnishing materials, supplies, 
and appliances which were employed by the Contractor in the 
performance of the Construction Contract, and that such releases 
have been delivered by the Contractor to the Owner.
    4. The Final Inventory attached hereto and made a part hereof is 
a complete and accurate summary of all units of construction in the 
Project and of all work performed in accordance with the 
Construction Contract.
    5. The staking sheets and tabulation of staking sheets upon 
which the Final Inventory is based show the accurate location, 
number, and kind of all units of construction of the project and 
show all work performed in accordance with the Construction 
Contract.
    6. All defects in workmanship and materials reported during the 
period of construction of the Project have been corrected.
    7. The total cost of the Project as completed is ________ 
dollars ($________). The Project consists of facilities shown on the 
Statement of Construction which is true and correct and which is 
attached hereto and made a part hereof.

Dated this ________ day of ________, 19____.
________ Name of Engineer
By ________
________ Title
________ Date

    Approved as to Items 1 and 6 above:

________ REA Field Engineer

    We, the undersigned Owner and Contractor, do hereby certify 
that:
    1. The Project has been completed in accordance with the 
provisions of the Construction Contract, dated ________ 19____, 
provided, however, that acceptance of the Project by the Owner shall 
not be deemed to relieve the Contractor of its obligations contained 
in the Construction Contract with respect to defective workmanship 
or, materials discovered within one year after the date of 
completion.
    2. The Final Inventory attached hereto and made a part hereof is 
a complete and accurate summary of all units of construction in the 
Project and of work performed in accordance with the Construction 
Contract.

________ Owner
By ________ President
________ Date
________ Name of Contractor
By ________
________ Title
________ Date

[End of Clause]


Sec. 1726.315  Equipment contract, REA Form 198.

    The contract form in this section shall be used when required by 
this part.

Equipment Contract

Notice and Instructions to Bidders

    1. Sealed proposals for the furnishing and delivery f.o.b. 
________ of equipment for the ________ (hereinafter called the 
``Owner'') which is to be part of the project known as ________ will 
be received by the Owner on or before ________ o'clock, ________ M., 
________ 19________, at ________ at which time and place the 
proposals will be publicly opened and read. Any proposal received 
subsequent to the time specified will be promptly returned to the 
Bidder unopened.
    2. The Plans and Specifications, together with all necessary 
forms and other documents for bidders may be obtained from the Owner 
or from the Engineer, ________ at the latter's office at ________. 
The Plans and Specifications may be examined at the office of the 
Owner or at the office of the Engineer. A copy of the loan contract 
(if the Project is to be financed in whole or in part, pursuant to a 
loan contract) between the Owner and the United States of America 
acting through the Administrator of the Rural Electrification 
Administration (hereinafter called the ``Administrator'') and of the 
loan contract between the Owner and any other lender, may be 
examined at the office of the Owner.
    3. Proposals and all supporting instruments must be submitted on 
the forms furnished by the Owner and must be delivered in a sealed 
envelope addressed to the Owner. The name and address of the Bidder 
and the date and hour of the opening of bids must appear on the 
envelope in which the Proposal is submitted. Proposals must be 
filled in in ink or typewriter. No alterations or interlineations 
will be permitted, unless made before submission and initialed and 
dated.
    4. Prior to the submission of the Proposal, the Bidder shall 
make and shall be deemed to have made a careful examination of the 
Plans and Specifications and forms of Equipment Contract on file 
with the Secretary of the Owner and with the Engineer, and all other 
matters, including transportation facilities, that may affect the 
cost and the time of completion of the work.
    5. Proposals will be accepted only from those prequalified 
bidders invited by the Owner to submit a proposal.
    6. In estimating the lowest cost to the Owner as one of the 
factors in deciding the award of the Contract, the Owner will 
consider, in addition to the price quoted in the Proposals, the 
following: ________.
    7. The Contract, when executed, shall be deemed to include the 
entire agreement between the parties thereto, and the Bidder shall 
not claim any modification thereof resulting from any representation 
or promise made at any time by any officer, agent, or employee of 
the Owner or by any other person.
    8. The Owner reserves the right to waive minor irregularities or 
minor errors in any Proposal if it appears to the Owner that such 
irregularities or errors were made through inadvertence. Any such 
irregularities or errors so waived must be corrected on the Proposal 
in which they occur prior to the execution of any contract which may 
be awarded thereon.
    9. The Owner reserves the right to reject any or all Proposals.

________ Owner
By ________
________ Date

Proposal

    To: ________ (hereinafter called the ``Owner''.)
    1. The undersigned (hereinafter called the ``Bidder'') hereby 
proposes to furnish and deliver the equipment (hereinafter called 
the ``Equipment'') described in the Plans and Specifications 
attached hereto and made a part hereof for the following prices: 
Item ________.
    2. The prices of Equipment set forth herein shall include the 
cost of delivery to ________. Such delivery shall be made within 
________ days after the receipt of the written order of the Owner.
    3. This Proposal is made pursuant to the provisions of the 
Notice and Instructions to Bidders, if any shall be attached hereto, 
and the Bidder agrees to the terms and conditions thereof.
    4. The Bidder warrants the accuracy of all statements contained 
in the Bidder's Qualifications, if any shall be submitted, and 
agrees that the Owner shall rely upon such accuracy as a condition 
of the Contract in the event that this Proposal is accepted.
    5. The Bidder warrants that this Proposal is made in good faith 
and without collusion or connection with any other person or persons 
bidding for the same work.
    6. The Bidder agrees that, in the event this Proposal is 
accepted, it will execute a Contract in the form attached hereto.
    7. The Bidder warrants that the Equipment will conform to the 
performance data and guarantees which are attached hereto and by 
this reference made a part hereof.
    8. If, in submitting this Proposal, the Bidder has made any 
change in the form of Proposal or Contract furnished by the Owner, 
the Bidder understands that the Owner and the Administrator may 
evaluate the effect of such change as they see fit or they may 
exclude the Proposal from consideration in determining the award of 
the Contract.
    9. The Bidder represents that:
    It has ________, does not have ________, 100 or more employees, 
and if it has, that it has ________, has not ________, furnished the 
Equal Employment Opportunity-Employers Information Report EEO-1, 
Standard Form 100, required of employers with 100 or more employees 
pursuant to Executive Order 11246 and Title VII of the Civil Rights 
Act of 1964.
    The Bidder agrees that it will obtain, prior to the award of any 
subcontract for more than $10,000 hereunder to a subcontractor with 
100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100.
    The Bidder agrees that if it has 100 or more employees and has 
not submitted a report on Standard Form 100 for the current 
reporting year and that if this contract will amount to more than 
$10,000, the Bidder will file such report, as required by law, and 
notify the Owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    10. The Bidder certifies that it does not maintain or provide 
for its employees any segregated facilities at any of its 
establishments, and that it does not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Bidder certifies further that it will 
not maintain or provide for its employees any segregated facilities 
at any of its establishments, and that it will not permit its 
employees to perform their services at any location, under its 
control, where segregated facilities are maintained. The Bidder 
agrees that a breach of this certification is a violation of the 
Equal Opportunity Clause in this contract. As used in this 
certification, the term ``segregated facilities'' means any waiting 
rooms, work areas, restrooms and washrooms, restaurants and other 
eating areas, timeclocks, locker rooms and other storage or dressing 
areas, parking lots, drinking fountains, recreation or entertainment 
areas, transportation, and housing facilities provided for employees 
which are segregated by explicit directive or are in fact segregated 
on the basis of race, color, religion, or national origin, because 
of habit, local custom, or otherwise.
    The Bidder agrees that (except where it has obtained identical 
certifications from proposed subcontractors for specific time 
periods) it will obtain identical certifications from proposed 
subcontractors prior to the award of subcontracts exceeding $10,000 
which are not exempt from the provisions of the Equal Opportunity 
Clause, and that it will retain such certifications in its files.

________ Name of Bidder
________ Address of Bidder
By ________
________ Title of Officer
________ Date

Equipment Contract

    AGREEMENT made ________ 19________, between ________ 
(hereinafter called the ``Purchaser'') and ________ (hereinafter 
called the ``Seller''), a corporation organized and existing under 
the laws of the State of ________.
    Whereas, the Purchaser desires to purchase and the Seller 
desires to sell the equipment described herein for the project 
financed in part or whole by a loan to the Purchaser from the United 
States of America, acting through the Administrator of the Rural 
Electrification Administration (hereinafter called the 
``Administrator'') which project is designated ________.
    Now Therefore, in consideration of the mutual undertakings 
herein contained, the parties hereto agree as follows:

Section 1--Acceptance of Proposal

    (a) The Purchaser accepts the Proposal which is attached hereto 
and by this reference made a part hereof, and the parties hereto 
agree that the Seller shall sell and deliver to the Purchaser and 
the Purchaser shall purchase and receive from the Seller the 
equipment (hereinafter called the ``Equipment'') described in the 
Proposal upon the terms and conditions herein stated.
    (b) The prices set forth in the Proposal include the cost of 
delivery to ________.
    (c) The prices set forth in the Proposal do not include any sums 
which are or may be payable by the Seller on account of taxes 
imposed by any taxing authority upon the sale, purchase or use of 
the Equipment. If any such tax is applicable to the sale, purchase 
or use of the Equipment hereunder, the amount thereof shall be added 
to the purchase price and paid by the Purchaser.

Section 2--Delivery

    The Seller shall deliver the Equipment within ________ days 
after receipt of the written order or orders of the Purchaser. The 
time for delivery shall be extended for the period of any reasonable 
delay due exclusively to causes beyond the control and without the 
fault of the Seller, including, but not limited to, acts of God, 
fires, strikes, and floods.

Section 3--Payment

    Upon the shipment of any Equipment hereunder, the Seller shall 
submit to the Purchaser a detailed statement of the Equipment 
shipped. The Purchaser shall, upon receipt of the Equipment, pay the 
Seller ninety percent (90%) of the contract price of the Equipment. 
When the Equipment has been installed, placed in satisfactory 
operation, tested and accepted by the Purchaser, the Purchaser shall 
make final payments therefor to the Seller; provided, however, such 
final payment shall be made not later than one-hundred eighty (180) 
days after delivery of the Equipment, unless such acceptance by the 
Purchaser shall be withheld because of the fault of the Seller.

Section 4--Defective Material and Workmanship

    (a) All Equipment furnished hereunder shall be subject to the 
inspection, tests, and approval of the Purchaser and the 
Administrator and the Seller shall furnish all information required 
concerning the nature or source of any Equipment and provide 
adequate facilities for testing and inspecting the Equipment at the 
plant of the Seller.
    (b) The Equipment furnished hereunder shall become the property 
of the Purchaser upon delivery, provided, however, that the 
Purchaser or the Administrator, within one year after delivery or 
within the period for which the Equipment is guaranteed, whichever 
is longer, may reject any Equipment which does not comply with the 
Specifications attached hereto and made a part hereof or with the 
guarantees, if any, of the Seller and the manufacturer. Upon any 
such rejection, the Seller shall repair or replace such defective 
Equipment within a reasonable time after notice in writing from the 
Purchaser and in the event of failure by the Seller so to do, the 
Purchaser may make such replacement and the cost and expense thereof 
shall be paid by and recoverable from the Seller.

Section 5--Miscellaneous

    (a) All manufacturers' guarantees of Equipment, if any, shall be 
transferred and assigned to the Purchaser upon delivery of any 
Equipment and before final payment is made for such Equipment. Such 
guarantees shall be in addition to those required of the Seller by 
other provisions of this Contract.
    (b) The Seller shall hold harmless and indemnify the Purchaser 
from any and all claims, suits, and proceedings for infringement of 
any patent or patents covering Equipment purchased hereunder.
    (c) In the performance of this contract there shall be furnished 
only such unmanufactured articles, materials, and supplies as have 
been mined or produced in the United States, Mexico, or Canada, and 
only such manufactured articles, materials, and supplies as have 
been manufactured in the United States substantially all from 
articles, materials, or supplies mined, produced or manufactured, as 
the case may be, in the United States, Mexico, or Canada; provided 
that other articles, materials, or supplies may be used in the event 
and to the extent that the Administrator shall expressly in writing 
authorize such use pursuant to the provisions of the Rural 
Electrification Act of 1938, being Title IV of Public Resolution No. 
122, 75th Congress, approved June 21, 1938. The Seller agrees to 
submit to the Purchaser such certificates with respect to compliance 
with the foregoing provision as the Administrator from time to time 
may require.
    (d) During the performance of this contract, the Seller agrees 
as follows:
    (1) The Seller will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex, or 
national origin. The Seller will take affirmative action to ensure 
that applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex, or 
national origin. Such action shall include, but not be limited to, 
the following: Employment, upgrading, demotion or transfer; 
recruitment or recruitment advertising; layoff or termination; rates 
of pay or other forms of compensation; and selection for training, 
including apprenticeship. The Seller agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided setting forth the provisions of this 
nondiscrimination clause.
    (2) The Seller will, in all solicitations or advertisements for 
employees placed by or on behalf of the Seller, state that all 
qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex, or national origin.
    (3) The Seller will send to each labor union or representative 
of workers with which it has a collective bargaining agreement or 
other contract or understanding, a notice to be provided advising 
the said labor union or workers' representative of the Seller's 
commitments under this section, and shall post copies of the notice 
in conspicuous places available to employees and applicants for 
employment.
    (4) The Seller will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and of the rules, regulations and 
relevant orders of the Secretary of Labor.
    (5) The Seller will furnish all information and reports required 
by Executive Order 11246 of September 24, 1965, and by rules, 
regulations and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations and orders.
    (6) In the event of the Seller's noncompliance with the 
nondiscrimination clauses of this contract or with any of the said 
rules, regulations or orders, this contract may be cancelled, 
terminated or suspended in whole or in part and the Seller may be 
declared ineligible for further Government contracts or federally 
assisted construction contracts in accordance with procedures 
authorized in Executive Order 11246 of September 24, 1965, and such 
other sanctions may be imposed and remedies invoked as provided in 
the said Executive Order or by rule, regulation or order of the 
Secretary of Labor, or as otherwise provided by law.
    (7) The Seller will include the portion of the sentence 
immediately preceding paragraph (1) and the provisions of paragraphs 
(1) through (7) in every subcontract or purchase order unless 
exempted by rules, regulations or orders of the Secretary of Labor 
issued pursuant to Section 204 of Executive Order 11246 of September 
24, 1965, so that such provisions will be binding upon each 
subcontractor or vendor. The Seller will take such action with 
respect to any subcontract or purchase order as the administering 
agency may direct as a means of enforcing such provisions, including 
sanctions for noncompliance: Provided, however, that in the event a 
Seller becomes involved in, or is threatened with, litigation with a 
subcontractor or vendor as a result of such direction by the 
administering agency, the Seller may request the United States to 
enter into such litigation to protect the interest of the United 
States.
    (e) Each and all of the covenants and agreements herein 
contained shall extend to and be binding upon the successors and 
assigns of the parties hereto provided, however, that the Seller 
shall not assign this contract or any part hereof without approval 
in writing of the Purchaser and the Administrator, and further that 
the Seller shall not enter into any contract with any person, firm 
or corporation for the performance of the Seller's obligations 
hereunder, or any part thereof, without the approval in writing of 
the Purchaser.
    (f) This contract shall become effective only upon approval by 
the Administrator. Neither this contract nor any provision thereof 
shall be modified, amended, rescinded, waived, or terminated without 
the approval in writing of the Administrator. Amendments executed on 
REA Form 238 are not subject to approval of the Administrator, 
except that when a contract amendment along with all previous 
amendments to this contract cause the total amended contract price 
to exceed 120 percent of the original contract price, as stated in 
the Seller's proposal and accepted by the Owner, that amendment and 
all subsequent amendments to this contract shall be made subject to 
the approval of the Administrator.
    In Witness Whereof,\1\ the parties hereto have caused this 
contract to be signed in their respective corporate names by their 
presidents and their corporate seals to be hereunto affixed and 
attested by their secretaries, all as of the day and year first 
above written.

________ Purchaser
By ________ President
Attest: ________ Secretary
________ Seller
By ________ President
Attest: ________ Secretary

    \1\When Seller is a corporation this section of agreement to be 
used.)
    In Witness Whereof,\2\ the Purchaser has caused this contract to 
be signed in its corporate name by its President and its corporate 
seal to be hereunto affixed and attested by its Secretary, and the 
Seller has (have) set his (their) hand(s), all as of the day and 
year first above written.

________ Purchaser
By ________ President
Attest: ________ Secretary
________ Seller
________ Name
________ Title
________
    \2\When Seller is an individual or partnership this section of 
agreement to be used. If a partnership--all partners shall sign.

[End of clause]


Secs. 1726.316--1726.319  [Reserved]


Sec. 1726.320  Construction contract, generating, REA Form 200.

    The contract form in this section shall be used when required by 
this part.

Construction Contract--Generating

Notice and Instructions to Bidders

    1. Sealed proposals for the furnishing, delivery and 
installation of equipment and materials for the electric generating 
plant of ________ (hereinafter called the ``Owner'') which is to be 
part of the system known as ________ will be received by the Owner 
on or before ________ o'clock ____ M., ________, 19____, at 
________, at which time and place the proposals will be publicly 
opened and read. Any proposal received subsequent to the time 
specified will be promptly returned to the Bidder unopened.
    2. Obtaining and Transferring Documents. The Plans and 
Specifications together with all necessary forms and other documents 
for bidders may be obtained from the Owner or from the Engineer, 
________, at the latter's office at ________ upon the payment of 
$________, all of which will be refunded to each bona fide bidder 
within ten days after the bid opening. The Plans and Specifications 
may be examined at the office of the Owner or at the office of the 
Engineer. A copy of the Loan Contract (if the Project is to be 
financed, in whole or in part, pursuant to a loan contract) between 
the Owner and the United States of America acting through The 
Administrator of the Rural Electrification Administration 
(hereinafter called the ``Administrator''), and of the Loan Contract 
between the Owner and any other lender may be examined at the office 
of the Owner. Each set of documents will have a serial number, given 
by the Engineer, and the number of each set with the name of the 
purchaser will be recorded by the Engineer. Bids will be accepted 
only from the original purchasers.
    3. Manner of Submitting Proposals. Proposals and all supporting 
instruments must be submitted on the forms furnished by the Owner 
and must be delivered in a sealed envelope addressed to the Owner. 
The name and address of the Bidder, its license number, if a license 
is required by the State, and the date and hour of the opening of 
bids must appear on the envelope in which the Proposal is submitted. 
Proposals must be filled in in ink or typewritten. No alterations or 
interlineations will be permitted, unless made before submission and 
initialed and dated.
    4. Familiarity with Conditions. Prior to the submission of the 
Proposal, the Bidder shall make and shall be deemed to have made a 
careful examination of the site of the Project and of the Plans and 
Specifications, Construction Drawings and forms of Contractor's 
Proposal and Acceptance, and Contractor's Bond on file with the 
Owner and with the Engineer, and shall become informed as to the 
location and nature of the proposed construction, the ecological and 
environmental criteria to be followed, the transportation 
facilities, the kind and character of soil and terrain to be 
encountered, the kind of facilities required before and during the 
construction of the Project, general local conditions and all other 
matters that may affect the cost and the time of completion of the 
Project. Bidders will be required to comply with all applicable 
statutes, regulations, etc., including those pertaining to the 
licensing of contractors, and the so-called ``Kick-Back'' Statute 
(48 Stat. 948) and regulations issued pursuant thereto.
    5. Proposals will be accepted only from those prequalified 
bidders invited by the Owner to submit a proposal.
    6. The Time for Completion of the Project shall be as specified 
by the Engineer in the Proposal.
    7. Bid Bond. Each Proposal must be accompanied by a Bid Bond in 
the form attached or a certified check on a bank that is a member of 
the Federal Deposit Insurance Corporation, payable to the order of 
the Owner, in an amount equal to ten percent (10%) of the maximum 
bid price. Each Bidder agrees, provided its Proposal is one of the 
three low Proposals, that, by filing its Proposal together with such 
Bid Bond or check in consideration of the Owner's receiving and 
considering such Proposal, said Proposal shall be firm and binding 
upon each such Bidder and such Bid Bond or check shall be held by 
the Owner until a Proposal is accepted and a satisfactory 
Contractor's Bond is furnished (where required) by the successful 
Bidder and such acceptance has been approved by the Administrator, 
or for a period not to exceed sixty (60) days from the date 
hereinbefore set for the opening of Proposals, whichever period 
shall be the shorter. If such Proposal is not one of the three low 
Proposals, the Bid Bond or check will be returned in each instance 
within a period of ten (10) days to the Bidder furnishing same.
    8. Contractor's Bond. The successful Bidder will be required to 
execute two additional counterparts of the Proposal and, for a 
Contract in excess of $100,000, to furnish a Contractor's Bond in 
triplicate in the form attached hereto with sureties listed by the 
United States Treasury Department as Acceptable Sureties in a penal 
sum not less than the Contract price.
    9. Failure to Furnish Contractor's Bond. Should the successful 
Bidder fail or refuse to execute such counterparts of the Proposal 
or to furnish a Contractor's Bond (where required) within ten (10) 
days after written notification of the acceptance of the Proposal by 
the Owner, the Bidder will be considered to have abandoned the 
Proposal. In such event, the Owner shall be entitled (a) to enforce 
the Bid Bond in accordance with its terms, or (b) if a certified 
check has been delivered with the Proposal, to retain from the 
proceeds of the certified check the difference (not exceeding the 
amount of the certified check) between the amount of the Proposal 
and such larger amount for which the Owner may in good faith 
contract with another party to construct the Project. The term 
``successful Bidder'' shall be deemed to include any Bidder whose 
proposal is accepted after another Bidder has previously refused or 
has been unable to execute the counterparts of the proposal or to 
furnish a satisfactory Contractor's Bond (where required.)
    10. Factors in Deciding the Award of the Contract. In estimating 
the lowest cost to the Owner as one of the factors in deciding the 
award of the Contract, the Owner will consider, in addition to the 
prices quoted in the Proposals, the following: ________.
    11. Contract is Entire Agreement. The Contract to be effected by 
the acceptance of the Proposal shall be deemed to include the entire 
agreement between the parties thereto, and the Bidder shall not 
claim any modification thereof resulting from any representation or 
promise made at any time by any officer, agent or employee of the 
Owner or by any other person.
    12. Minor Irregularities. The Owner reserves the right to waive 
minor irregularities or minor errors in any Proposal, if it appears 
to the Owner that such irregularities or errors were made through 
inadvertence. Any such irregularities or errors so waived must be 
corrected on the Proposal prior to the acceptance thereof by the 
Owner.
    13. Bid Rejection. The Owner reserves the right to reject any or 
all Proposals.
    14. Definition of Terms. The terms ``Administrator'', 
``Engineer'', ``Supervisor'', ``Project'', ``Completion of 
Construction'' and ``Completion of the Project,'' as used throughout 
this Contract, shall be as defined in Article VI, Section 1 of the 
Contractor's Proposal.
    15. The Owner Represents:
    (a) If by provisions of the Contractor's Proposal the Owner 
shall have undertaken to furnish any materials for the construction 
of the Project, such materials are on hand at locations specified or 
if such materials are not on hand they will be made available to the 
successful Bidder at the locations specified before the time such 
materials are required for construction.
    (b) All funds necessary for prompt payment for the construction 
of the Project will be available. If the Owner shall fail to comply 
with any of the undertakings contained in the foregoing 
representations or if any of such representations shall be 
incorrect, the Bidder will be entitled to an extension of time of 
completion for a period equal to the delay, if any, caused by the 
failure of the Owner to comply with such undertakings or by any such 
incorrect representations, provided the Bidder shall have promptly 
notified the Owner in writing of its desire to extend the time of 
completion, and provided, further, that such extension, if any, of 
the time of the completion shall be the sole remedy of the Bidder 
for the Owner's failure, because of conditions beyond the control 
and without the fault of the Owner, to furnish materials in 
accordance with subparagraph a, hereof.

________ Owner
By ________
________, 19____

Contractor's Proposal

    To Furnish, Deliver and Install Equipment and Materials TO: 
________ (hereinafter called the ``Owner'')

ARTICLE I--GENERAL

    Section 1. Offer to Furnish, Deliver and Install. The 
undersigned (hereinafter called the ``Bidder'') hereby proposes to 
furnish, deliver and install the materials, supplies and equipment 
(hereinafter called the ``Project'') described in the plans, 
specifications and drawings (hereinafter called the 
``Specifications'') attached hereto and made a part hereof, financed 
in part or whole by a loan to the Owner by the United States of 
America, acting through the Administrator of the Rural 
Electrification Administration (hereinafter called the 
``Administrator'') and designated ________.
    Section 2. Familiarity with Conditions. The Bidder has made a 
careful examination of the site of the Project and of the Plans and 
Specifications, Construction Drawings, and form of Contractor's Bond 
attached hereto, and has become informed as to the location and 
nature of the proposed construction, the transportation facilities 
and the kind of facilities required before and during the 
construction of the Project, and has become acquainted with the 
labor conditions, the ecological and environmental criteria to be 
followed, state and local laws and regulations which would affect 
work on the proposed construction.
    Section 3. License. The Bidder warrants that a Contractor's 
License is ______, is not ______, required, and if required, it 
possesses Contractor's License No. ______ of the State of ______, in 
which the Project is located and said license expires on ______, 
19____.
    Section 4. The Bidder warrants that this Proposal is made in 
good faith and without collusion or connection with any person or 
persons bidding for the same work.
    Section 5. The Bidder warrants that it possesses adequate 
financial resources and agrees that in the event this Proposal is 
accepted and a Contractor's Bond is required, it will furnish a 
Contractor's Bond in the form attached hereto, in a penal sum not 
less than the maximum Contract Price, with a surety or sureties 
listed by the United States Treasury Department as Acceptable 
Sureties.
    In the event that the surety or sureties on the performance bond 
delivered to the Owner contemporaneously with the execution of the 
Contract or on any bond or bonds delivered in substitution thereof 
or in addition thereto shall at any time become unsatisfactory to 
the Owner or the Administrator, the Bidder agrees to deliver to the 
Owner another or an additional bond. The Bidder understands, that, 
if in submitting this Proposal, the Bidder has made any change in 
the form of Proposal furnished by the Owner, that the Owner and the 
Administrator may evaluate the effect of such change as they see fit 
or they may exclude the Proposal from consideration in determining 
the award of the contract.

ARTICLE II--CONSTRUCTION

    Section 1. Bid Price. The Bidder will construct the Project for 
the following sum:

    Base Bid ______ Dollars ($ ______ )
    Alternate No. 1 ______ Dollars ($ ______ )
    Alternate No. 2 ______ Dollars ($ ______ )

    Section 2. Taxes. The price quoted herein includes all amounts 
which the Bidder estimates will be payable by the Bidder or the 
Owner on account of taxes imposed by any taxing authority upon the 
sale, purchase or use of materials, supplies or equipment or 
services or labor of installation to be incorporated in the Project. 
The Bidder will pay all such taxes and will furnish to appropriate 
taxing authorities any required information and reports pertaining 
thereto.
    Section 3. Time and Manner of Construction.
    (a) The time of Completion of Construction of the Project is of 
the essence of this Contract. The Bidder will commence the work 
within ______ calendar days after the Owner shall have given the 
Bidder written notice to commence construction, will prosecute 
diligently and complete such construction to the satisfaction of the 
Owner and the Administrator within ______ calendar days after giving 
of such notice.
    (b) The time of Completion of Construction shall be extended for 
the period of any reasonable delay due exclusively to causes beyond 
the control and without fault of the Bidder, including Acts of God, 
fires, strikes, floods, inability to obtain materials, changes in 
the Specifications as herein provided and acts or omissions of the 
Owner with respect to matters for which the Owner is solely 
responsible: Provided, however, that no such extension of time for 
completion shall be granted the Bidder unless within ten (10) days 
after the happening of any event relied upon by the Bidder for such 
an extension of time the Bidder shall have made a request therefor 
in writing to the Owner, and provided further that no delay in such 
time of completion or in the progress of the work which results from 
any of the above causes except acts or omissions of the Owner, shall 
result in any liability on the part of the Owner.
    (c) In the sequence of construction, the Owner, acting through 
the Engineer, shall have the right to direct the Bidder to perform 
any part or parts of the work which is to be performed at the site 
of the Project before any other part or parts, of such work and the 
Bidder agrees to comply with all such directions. The Bidder shall 
comply with all other reasonable directions of the Owner.
    (d) The Owner, acting through the Engineer, may from time to 
time during the progress of the construction of the Project make 
such changes, additions to or subtractions from the Plans and 
Specifications and sequence of construction provided for in the 
previous paragraph which are part of the Contractor's Proposal as 
conditions may warrant: Provided, however, that if any change in the 
construction to be done shall require an extension of time, a 
reasonable extension will be granted if the Bidder shall make a 
written request therefor to the Owner within ten (10) days after any 
such change is made. If the cost of the Project to the Bidder to 
make the change shall be increased or decreased, the contract price 
shall be amended by an amount equal to the reasonable cost hereof in 
accordance with a construction amendment signed by the Owner and the 
Bidder and approved by the Administrator,1 but no claim for 
additional compensation for any such change or addition will be 
considered unless the Bidder shall have made a written request 
therefor to the Owner prior to the commencement of work in 
connection with such change or addition. The reasonable cost of any 
increase or decrease in the contract price covered by contract 
amendment as outlined above, in the absence of other mutual 
agreement, shall be computed on the basis of the direct cost of 
materials, f.o.b. the site of the Project, plus the direct cost of 
labor necessary to incorporate such materials into the Project 
(including actual cost of payroll taxes and insurance, not to exceed 
ten percent of payroll cost of labor), plus ______ percent of the 
direct cost of materials and labor. Labor costs shall be limited to 
the direct costs for workmen and foremen. Costs for profit and 
overhead for subcontractors, if any, Bidder's main office overhead, 
job office overhead and superintendence shall not be included.
---------------------------------------------------------------------------

    \1\As long as the total price of this contract including all 
amendments is less than 120 percent of the original contract price 
as stated in the acceptance hereto, amendments executed on REA Form 
238 are not subject to the approval of the Administrator. Whenever 
an amendment to this contract causes the total amended contract to 
exceed 120 percent of the original contract price, that amendment 
and all subsequent amendments to this contract shall be made subject 
to the approval of the Administrator.
---------------------------------------------------------------------------

    Section 4. The Bidder agrees that in the event this Proposal is 
accepted it will make available for use in connection with the 
proposed construction all necessary tools and equipment and 
qualified superintendents and foremen.
    Section 5. Supervision and Inspection.
    a. The Bidder will give sufficient supervision to the work, 
using its best skill and attention. The Bidder will carefully study 
and compare all drawings, specifications and other instructions and 
will at once report to the Owner any error, inconsistency or 
omission which it may discover. The Bidder shall cause the 
construction work on the Project to receive constant supervision by 
a competent superintendent (hereinafter called the 
``Superintendent'') who shall be present at all times during working 
hours where construction is being carried on. The Bidder shall also 
employ, in connection with the construction of the Project, capable, 
experienced and reliable foremen and such skilled workmen as may be 
required for the various classes of work to be performed. Directions 
and instructions given to the Superintendent shall be binding upon 
the Bidder.
    b. The Owner reserves the right to require the removal from the 
Project of any employee of the Bidder if in the judgment of the 
Owner such removal shall be necessary in order to protect the 
interest of the Owner. The Owner or the Supervisor, if any, shall 
have the right to require the Bidder to increase the number of its 
employees and to increase or change the amount or kinds of tools and 
equipment if at any time the progress of the work shall be 
unsatisfactory to the Owner or Supervisor; but the failure of the 
Owner or Supervisor to give any such directions shall not relieve 
the Bidder of its obligations to complete the work within the time 
and in the manner specified in this Proposal.
    c. The manner of construction of the Project, and all materials 
and equipment used therein, shall be subject to the inspection, 
tests and approval of the Owner and the Administrator, and the 
Bidder shall furnish all information required by the Owner or by the 
Administrator concerning the nature or source of any materials 
incorporated or to be incorporated in the Project. The Owner and the 
Administrator shall have the right to inspect all payrolls, invoices 
of materials, and other data and records of the Bidder and of any 
subcontractor, relevant to the construction of the Project. The 
Bidder shall provide all reasonable facilities necessary for such 
inspection and tests and shall maintain an office at the site of the 
Project, with telephone service where obtainable and at least one 
office employee to whom directions and instructions of the Owner may 
be delivered.
    Delivery of such directions or instructions in writing to the 
employee of the Bidder at such office shall constitute delivery to 
the Bidder. The Bidder shall have an authorized agent accompany the 
Engineer when final inspection is made and, if requested by the 
Owner, when any other inspection is made.
    d. In the event that the Owner through its Engineer, or the 
Administrator, shall determine that the construction contains or may 
contain numerous defects, it shall be the duty of the Bidder and the 
Bidder's Surety or Sureties, if any, to have an inspection made by 
an engineer approved by the Owner and the Administrator for the 
purpose of determining the exact nature, extent and location of such 
defects.
    e. The Engineer may recommend to the Owner that the Bidder 
suspend the work wholly or in part for such period or periods as the 
Engineer may deem necessary due to unsuitable weather or such other 
conditions as are considered unfavorable for the satisfactory 
prosecution of the work or because of the failure of the Bidder to 
comply with any of the provisions of the Contract: Provided, 
however, that the Bidder shall not suspend work pursuant to this 
provision without written authority from the Owner so to do. The 
time of completion hereinabove set forth shall be increased by the 
number of days of any such suspension, except when such suspension 
is due to the failure of the Bidder to comply with any of the 
provisions of this Contract. In the event that work is suspended by 
the Bidder with the consent of the Owner, the Bidder before resuming 
work shall give the Owner at least twenty-four (24) hours notice 
thereof in writing.
    Section 6. Defective Materials and Workmanship.
    a. The acceptance of any materials, equipment or any workmanship 
by the Owner or the Engineer shall not preclude the subsequent 
rejection thereof if such materials, equipment, or workmanship shall 
be found to be defective after delivery or installation, and any 
such materials, equipment or workmanship found defective before 
final acceptance of the construction shall be replaced or remedied, 
as the case may be, including the installation and removal thereof, 
by and at the expense of the Bidder. Any such condemned material or 
equipment shall be immediately removed from the site of the Project 
by the Bidder at the Bidder's expense. The Bidder shall not be 
entitled to any payment hereunder so long as any defective 
materials, equipment, or workmanship in respect to the Project, of 
which the Bidder shall have had notice, shall not have been replaced 
or remedied, as the case may be.
    b. Notwithstanding the acceptance of workmanship, materials, 
supplies or equipment, or the giving of any certificate with respect 
to the completion of the work, if during the construction or within 
one year after such completion, or within such longer period as the 
Project or any part thereof may be guaranteed by other provisions of 
the Contract or the Specifications, the workmanship, materials, 
supplies or equipment shall be found to be defective or not in 
conformity with the requirements of the Specifications, the Bidder 
shall replace such defective materials or equipment or remedy any 
such defective workmanship within thirty (30) days after notice of 
the existence thereof shall have been given to the Bidder by the 
Owner. In event of failure by the Bidder so to do, the Owner may 
replace such defective materials or equipment or remedy such 
defective workmanship, as the case may be, and in such event the 
Bidder shall pay to the Owner the cost and expense thereof.

ARTICLE III--PAYMENTS AND RELEASE OF LIENS

    Section 1. Payments to Bidder.
    a. Within the first fifteen (15) days of each calendar month, 
the Owner shall make partial payment to the Bidder for construction 
accomplished during the preceding calendar month on the basis of 
estimates thereof certified to by the Bidder, and approved by the 
Engineer and by the Owner solely for the purpose of payment: 
Provided, however, that such approval shall not be deemed approval 
of the workmanship or materials; and provided further, that in 
estimating the amount of construction accomplished, consideration 
shall be given only to equipment and materials incorporated into the 
Project and equipment and materials delivered to the site in 
accordance with approved shipping schedule. Only ninety percent 
(90%) of each such estimate approved during the construction of the 
Project shall be paid by the Owner to the Bidder prior to Completion 
of the Project. Upon completion by the Bidder of the construction of 
the Project, the Engineer shall inspect the work performed hereunder 
and if he shall find the work acceptable and all provisions 
hereunder fully performed, he shall so certify to the Owner and 
shall certify the balance found to be due the Bidder.
    The Certificate of Completion, Contract Construction, REA Form 
187, a copy of which is attached hereto, after it has been signed by 
the Engineer and certified to by the Owner and the Bidder shall 
thereupon be submitted to the Administrator for his approval and 
when such approval has been given, the Owner shall make payment to 
the Bidder of all unpaid amounts to which the Bidder shall be 
entitled hereunder unless withheld because of the fault of the 
Bidder.
    b. Interest at the rate of ______ percent\2\ (____%) per annum 
shall be paid by the Owner to the Bidder on all unpaid balances due 
the Bidder commencing fifteen (15) days after the due date: Provided 
that the delay in payment beyond the due date is not caused by any 
condition within the control of the Bidder. The due date for 
purposes of such monthly payment shall be the fifteenth day of each 
calendar month provided (1) the Bidder on or before the fifth day of 
such month shall have submitted its certification of construction 
completed during the preceding month, and (2) the Owner on or before 
the fifteenth day of such month shall have approved such 
certification. If, for any reasons not due to the Bidder's fault, 
such approval shall not have been given on or before the fifteenth 
day of such month, the due date for purposes of this subsection 
``b'' shall be the fifteenth day of such month notwithstanding the 
absence of the approval of the certification.
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    \2\The Owner shall insert a rate equal to the lowest ``Prime 
Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued.
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    c. No payments shall be due while the Bidder is in default in 
respect of any of the provisions of this Proposal and the Owner may 
withhold from the Bidder the amount of any claim by a third party 
against either the Bidder or the Owner based upon an alleged failure 
of the Bidder to perform the work hereunder in accordance with the 
provisions of this Proposal.
    Section 2. Release of Liens and Certificate of Contractor. (See 
Sample REA Form 224, Waiver and Release of Lien, and sample REA Form 
231, Certificate of Contractor.) Upon the completion by the Bidder 
of the construction of the Project but prior to the payment to the 
Bidder of any amount in excess of ninety percent (90%) of the total 
cost of construction, the Bidder shall deliver to the Owner, in 
duplicate, releases of all liens and of rights to claim any lien, in 
the form attached hereto, from all manufacturers, materialmen, and 
subcontractors furnishing services or materials for the Project and 
a certificate in the form attached hereto to the effect that all 
labor used on or for the project has been paid and that all such 
releases have been submitted to the Owner for approval.
    Section 3. Payments to Materialmen and Subcontractors. The 
Bidder shall pay each materialman, and each subcontractor, if any, 
within five (5) days after receipt of any payment from the Owner, 
the amount thereof allowed the Bidder for and on account of 
materials furnished or construction performed by each materialman or 
each subcontractor.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE BIDDER

    Section 1. Protection to Persons and Property. The Bidder shall 
at all times exercise reasonable precautions for the safety of 
employees on the work and of the public, and shall comply with all 
applicable provisions of Federal, State and Municipal safety laws 
and building and construction codes. All machinery and equipment and 
other physical hazards shall be guarded in accordance with the 
``Manual of Accident Prevention in Construction'' of the Associated 
General Contractors of America, unless such instructions are 
incompatible with Federal, State or Municipal laws or regulations.
    The following provisions shall not limit the generality of the 
above requirements:
    (a) The Bidder shall at all times keep the premises free from 
accumulations of waste materials or rubbish caused by his employees 
or work, and at the completion of the work he shall remove all 
rubbish from and about the Project and all his tools, scaffolding 
and surplus materials and shall leave his work ``broom clean''. The 
Bidder shall dispose of waste material by burying it on the work 
site or in a manner approved by local authorities, but shall not 
dispose of any waste materials or rubbish by open burning. The 
Bidder shall provide chemical sanitary facilities which may be 
required in compliance with applicable local, State and Federal laws 
or regulations.
    (b) The Bidder will perform the work in such a manner as to 
maximize preservation of aesthetics and conservation of natural 
resources, and minimize marring and scarring of the landscape, 
erosion of soils and oil spillage. There will be no depositing of 
trash in streams or waterways. Herbicides, other chemicals or their 
containers will not be deposited in or near streams or waterways.
    (c) The Project, from the commencement of work to completion, or 
to such earlier date or dates when the Owner may take possession and 
control, in whole or in part as hereinafter provided, shall be under 
the charge and control of the Bidder and during such period of 
control by the Bidder all risks in connection therewith and the 
materials, supplies and equipment to be used therein shall be borne 
by the Bidder, except risk of loss or of damage to materials or 
equipment furnished for or used in connection with the Project by 
the Owner, Bidder or any subcontractor, caused by fire, lightning, 
wind damage, explosion, riot or civil commotion, aircraft and other 
vehicles, and smoke damage (against which perils the Owner will 
maintain insurance, hereinafter called ``Builder's Risk 
Insurance''). The Bidder will make good and fully repair all 
injuries and damages to the Project, or any portion thereof under 
the control of the Bidder by reason of any act of God, or any other 
casualty or cause whether or not the same shall have occurred by 
reason of the Bidder's negligence, except damage covered by the 
Owner's Builder's Risk Insurance.
    (i) To the maximum extent permitted by law, Bidder shall defend, 
indemnify, and hold harmless Owner and Owner's directors, officers, 
and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Bidder's employees) and loss, damage to or destruction of 
Owner's property or the property of any other person or entity 
(including but not limited to Bidder's property) in any manner 
arising out of or connected with the Contract, or the materials or 
equipment supplied or services performed by Bidder, its 
subcontractors and suppliers of any tier. But nothing herein shall 
be construed as making Bidder liable for any injury, death, loss, 
damage, or destruction caused by the sole negligence of Owner.
    (ii) To the maximum extent permitted by law, Bidder shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Bidder, its subcontractors and suppliers of 
any tier, and from all losses, demands, and causes of action arising 
out of any such lien or claim. Bidder shall promptly discharge or 
remove any such lien or claim by bonding, payment, or otherwise and 
shall notify Owner promptly when it has done so. If Bidder does not 
cause such lien or claim to be discharged or released by payment, 
bonding, or otherwise, Owner shall have the right (but shall not be 
obligated) to pay all sums necessary to obtain any such discharge or 
release and to deduct all amounts so paid from the amount due 
Bidder.
    (iii) Bidder shall provide to Owner's satisfaction evidence of 
Bidder's ability to comply with the indemnification provisions of 
subparagraphs i and ii above, which evidence may include but may not 
be limited to a bond or liability insurance policy obtained for this 
purpose through a licensed surety or insurance company.
    (d) The Bidder shall submit to the Owner monthly reports in 
duplicate of all accidents giving such data as may be prescribed by 
the Engineer.
    (e) Upon violation by the Bidder of any of the provisions of 
this section, after written notice of such violation given to the 
Bidder by the Engineer or the Owner, the Bidder shall immediately 
correct such violation. Upon failure of the Bidder so to do, the 
Owner may correct such violation at the Bidder's expense: Provided, 
however, that the Owner may, if it deems it necessary or advisable, 
correct such violation at the Bidder's expense without such prior 
notice to the Bidder.
    Section 2. Insurance. The Bidder shall take out and maintain 
throughout the contract period insurance of the following types and 
minimum amounts:
    (a) Workers' compensation and employers' liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to the workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    (b) Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    (c) Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million per person and $1 million per occurrence, and property 
damage limits of $1 million for each occurrence. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form. The Owner shall 
have the right at any time to require public liability insurance and 
property damage liability insurance greater than those required in 
subsection ``b'' and ``c'' of this Section. In any such event, the 
additional premium or premiums payable solely as the result of such 
additional insurance shall be added to the Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 3. Assignment of Guarantees. All guarantees of materials 
and workmanship running in favor of the Bidder shall be transferred 
and assigned to the Owner prior to the time the Bidder receives 
final payment.
    Section 4. Delivery of Possession and Control to Owner. Upon 
written request of the Owner, the Bidder shall deliver to the Owner 
full possession and control of any portion of the Project provided 
the Bidder shall have been paid at least ninety percent (90%) of the 
cost of construction of such portion. Upon such delivery of the 
possession and control of any portion of the Project to the Owner, 
the risks and obligations of the Bidder as set forth in Article IV, 
Section 1c hereof with respect to such portion so delivered to the 
Owner shall be terminated; Provided, however, that nothing herein 
contained shall relieve the Bidder of any liability with respect to 
defective materials and workmanship as contained in Article II, 
Section 6 hereof.

ARTICLE V--REMEDIES

    Section 1. Completion on Bidder's Default. If default shall be 
made by the Bidder or by any subcontractor in the performance of any 
of the terms of this Proposal, the Owner, without in any manner 
limiting its legal and equitable remedies in the circumstances, may 
serve upon the Bidder and the Surety or Sureties, if any, upon the 
Contractor's Bond or Bonds a written notice requiring the Bidder to 
cause such default to be corrected forthwith. Unless within twenty 
(20) days after the service of such notice upon the Bidder such 
default shall be corrected or arrangements for the correction 
thereof satisfactory to both the Owner and the Administrator shall 
be made by the Bidder or its Surety or Sureties, if any, the Owner 
may take over the construction of the Project and prosecute the same 
to completion by Contract or otherwise for the account and at the 
expense of the Bidder, and the Bidder and its Surety or Sureties, if 
any, shall be liable to the Owner for any cost or expense in excess 
of the Contract price occasioned thereby. In such event the Owner 
may take possession of and utilize, in completing the construction 
of the Project, any materials, tools, supplies, equipment, 
appliances, and plant belonging to the Bidder or any of its 
subcontractors, which may be situated at the site of the Project. 
The Owner in such contingency may exercise any rights, claims or 
demands which the Bidder may have against third parties in 
connection with this Contract and for such purpose the Bidder does 
hereby assign, transfer and set over unto the Owner all such rights, 
claims and demands.
    Section 2. Enforcement of Remedies by Administrator. The 
Administrator may on behalf of the Owner exercise any right or 
enforce any remedy which the Owner may exercise hereunder.
    Section 3. Cumulative Remedies. Every right or remedy herein 
conferred upon or reserved to the Owner or the Administrator shall 
be cumulative and shall be in addition to every right and remedy now 
or hereafter existing at law or in equity or by statute and the 
pursuit of any right or remedy shall not be construed as an 
election.

ARTICLE VI--MISCELLANEOUS

    Section 1. Definitions.
    a. The term Administrator shall mean the Administrator of the 
Rural Electrification Administration of the United States of America 
and his duly authorized representatives or any other person in whom 
or authority in which may be vested the duties and functions which 
the Administrator is now authorized by law to perform.
    b. The term Engineer shall mean the engineer employed by the 
Owner, with the approval of the Administrator, to provide 
engineering services for the Project, and said Engineer's duly 
authorized assistants and representatives.
    c. The term Supervisor shall mean the person, if any, appointed 
by the Administrator as the representative of the Government under 
the provisions of the Loan Contract providing for such appointment 
in special cases. The term is limited to such special representative 
of the Government, if any, who is responsible exclusively to the 
Administrator and does not refer to the Manager or any other person 
employed by the Owner and responsible to it.
    d. The term Completion of Construction shall mean full 
performance by the Bidder of the Bidder's obligations under the 
Contract and all amendments and revisions thereof except the 
Bidder's obligations in respect of Releases of Liens and Certificate 
of Contractor under Article III, Section 2 hereof. The term 
``Completion of the Project'' shall mean full performance by the 
Bidder of the Bidder's obligations under the Contract and all 
amendments and revisions thereof. The Certificate of Completion, 
signed by the Engineer and approved in writing by the Owner and the 
Administrator, shall be the sole and conclusive evidence as to the 
date of Completion of Construction and as to the fact of Completion 
of the Project.
    Section 2. Purchase of Materials. The Bidder shall purchase all 
materials, supplies, and equipment outright and not subject to any 
conditional sales agreements, bailment lease or other agreement 
reserving unto the seller any right, title or interest therein. All 
materials, supplies and equipment shall be new and shall become the 
property of the Owner when erected in place, or when the Owner shall 
have made any payment to the Bidder in respect of such materials; 
whichever shall occur first.
    Section 3. Materials and Supplies. In the performance of this 
contract there shall be furnished only such unmanufactured articles, 
materials, and supplies as have been mined or produced in the United 
States, Mexico, or Canada, and only such manufactured articles, 
materials, and supplies as have been manufactured in the United 
States substantially all from articles, materials, or supplies 
mined, produced or manufactured, as the case may be, in the United 
States, Mexico, or Canada; provided that other articles, materials, 
or supplies may be used in the event and to the extent that the 
Administrator shall expressly in writing authorize such use pursuant 
to the provisions of the Rural Electrification Act of 1938, being 
Title IV of Public Resolution No. 122, 75th Congress, approved June 
21, 1938. The Bidder agrees to submit to the Purchaser such 
certificates with respect to compliance with the foregoing provision 
as the Administrator from time to time may require.
    Section 4. Patent Infringement. The Bidder shall save harmless 
and indemnify the Owner from any and all claims, suits and 
proceedings for the infringement of any patent or patents covering 
any materials or equipment used in construction of the Project.
    Section 5. Compliance with Statutes and Regulations. The Bidder 
shall comply with all applicable statutes, ordinances, rules, and 
regulations pertaining to the work. The Bidder acknowledges that it 
is familiar with the Rural Electrification Act of 1936, as amended, 
the so-called ``Kick-Back'' Statute (48 Stat. 948), and regulations 
issued pursuant thereto, and 18 USC Section 287 and 1001, as 
amended. The Bidder understands that the obligations of the parties 
hereunder are subject to the applicable regulations and orders of 
Governmental Agencies having jurisdiction in the premises.
    Section 6. Equal Opportunity Provisions.
    (a) Bidder's Representations.
    The Bidder represents that:
    It has ____, does not have ____, 100 or more employees, and if 
it has, that it has ____, has not ____ furnished the Equal 
Employment Opportunity-Employers Information Report EEO-1, Standard 
Form 100, required of employers with 100 or more employees pursuant 
to Executive Order 11246 and title VII of the Civil Rights Act of 
1964.
    The Bidder agrees that it will obtain, prior to the award of any 
subcontract for more than $10,000 hereunder to a subcontractor with 
100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100.
    The Bidder agrees that if it has 100 or more employees and has 
not submitted a report on Standard Form 100 for the current 
reporting year and that if this Contract will amount to more than 
$10,000, the Bidder will file such report, as required by law, and 
notify the owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    (b) Equal Opportunity Clause. During the performance of this 
Contract, the Bidder agrees as follows:
    (1) The Bidder will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex or 
national origin. The Bidder will take affirmative action to ensure 
that applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex or 
national origin. Such action shall include, but not be limited to, 
the following: Employment, upgrading, demotions or transfer; 
recruitment or recruitment advertising; layoff or termination; rates 
of pay or other forms of compensation; and selection of training, 
including apprenticeship. The Bidder agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided setting forth the provisions of this Equal 
Opportunity Clause.
    (2) The Bidder will, in all solicitations or advertisements for 
employees placed by or on behalf of the Bidder, state that all 
qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex or national origin.
    (3) The Bidder will send to each labor union or representative 
of workers, with which it has a collective bargaining agreement or 
other contract or understanding, a notice to be provided advising 
the said labor union or workers' representative of the Bidder's 
commitments under this section, and shall post copies of the notice 
in conspicuous places available to employees and applicants for 
employment.
    (4) The Bidder will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and the rules, regulations and 
relevant orders of the Secretary of Labor.
    (5) The Bidder will furnish all information and reports required 
by Executive Order 11246 of September 24, 1965, and by rules, 
regulations, and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records, and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations, and orders.
    (6) In the event of the Bidder's noncompliance with the Equal 
Opportunity Clause of this Contract or with any of the said rules, 
regulations, or orders, this Contract may be canceled, terminated, 
or suspended in whole or in part, and the Bidder may be declared 
ineligible for further Government contracts or federally assisted 
construction contracts in accordance with procedures authorized in 
Executive Order 11246 of September 24, 1965, and such other 
sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24, 1965, or by rule, regulation, 
or order of the Secretary of Labor, or as provided by law.
    (7) The Bidder will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations, or order of the Secretary of Labor issued pursuant to 
Section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Bidder will take such action with respect to any subcontract or 
purchase order as the administering agency may direct as a means of 
enforcing such provisions, including sanctions for noncompliance; 
Provided, however, that in the event Bidder becomes involved in, or 
is threatened with, litigation with a subcontractor or vendor as a 
result of such direction by the administering agency, the Bidder may 
request the United States to enter into such litigation to protect 
the interests of the United States.
    (c) Certificate of Nonsegregated Facilities. The Bidder 
certifies that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Bidder certifies further that it will not maintain or provide for 
its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Bidder agrees that a breach of this 
certification is a violation of the Equal Opportunity Clause in this 
Contract. As used in this certification, the term ``segregated 
facilities'' means any waiting rooms, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Bidder agrees that (except where it has obtained 
identical certifications from proposed subcontractors for specific 
time periods) it will obtain identical certifications from proposed 
subcontractors prior to the award of subcontracts exceeding $10,000 
which are not exempt from the provisions of the Equal Opportunity 
Clause, and that it will retain such certifications in its files.
    Section 7. Nonassignment of Contract. Except as provided in 
Section 8 of this Article, the Bidder will not assign this Contract, 
or any interest in any funds that may become due hereunder, or enter 
into any contract with any person, firm or corporation, for the 
performance of the Bidder's obligations hereunder, or any part 
hereof without the approval in writing of the Owner, the Surety or 
Sureties, if any, and the Administrator.
    Section 8. Subcontracts. The Bidder shall not enter into any 
subcontract or subcontracts with any person, firm or corporation for 
the performance of the Bidder's obligation hereunder in any 
aggregate amount in excess of 40% of the Bidder's obligations (to be 
calculated on the basis of the total contract price) nor shall the 
Bidder enter into any subcontract in excess of $20,000, without the 
approval in writing of the Owner and of the Surety or Sureties, if 
any, on any bond furnished by the Bidder for the faithful 
performance of the Bidder's obligations hereunder. If the Bidder 
shall enter into a subcontract with any subcontractor for the 
performance of any part of this Contract, the Bidder shall be as 
fully responsible to the Owner and the Administrator for the acts 
and omissions of such subcontractor and of persons employed by such 
subcontractor as the Bidder would be for its own acts and omissions 
and those of persons directly employed by it.
    Section 9. Contractor. Upon acceptance of this Proposal, the 
successful Bidder shall be the Contractor and all references in the 
Proposal to the Bidder shall apply to the Contractor.
    Section 10. Approval of the Administrator. The acceptance of 
this Proposal by the Owner shall not create a contract unless such 
acceptance shall be approved in writing by the Administrator within 
sixty (60) days after the date set for the opening of proposals.

________ (Bidder)
By ________ (President)
________ (Title)
________ (Address)
    Attest:
________ (Secretary)
Date ________

    The Proposal must be signed with the full name of the Bidder. If 
the Bidder is a partnership, the Proposal must be signed in the 
partnership name by a partner. If the Bidder is a corporation, the 
Proposal must be signed in the corporate name by a duly authorized 
officer and the corporate seal affixed and attested by the Secretary 
of the Corporation.

Acceptance

    Subject to the approval of the Administrator, the Owner, 
________, hereby accepts the Proposal of the above-named Bidder for 
the construction of the Project therein described for the Base Bid 
of

$________ and
Alternate No. 1 $________
Alternate No. 2 $________
The total contract price is $________
________ (Owner)
By ________ President
    Attest:
________ (Secretary)
________ Date of Contract

[End of clause]


Sec. 1726.321  Right-of-way clearing contract, REA Form 201.

    The contract form in this section shall be used when required by 
this part. This form refers to guide drawings, which do not contain 
requirements, and, hence, are not included in this part. The guide 
drawings are included in the printed form available from REA (See 
Sec. 1726.300.).

Right-of-Way Clearing Contract

Contractor's Proposal

(Proposal shall be submitted in ink or typewritten)
To: ________ (Hereinafter called the ``Owner'')

ARTICLE I--GENERAL

    Section 1. Offer to Clear. The undersigned (hereinafter called 
the ``Contractor'') hereby proposes to furnish all materials, 
equipment, machinery, tools, labor, transportation and other means 
required to clear rights-of-way for the rural electric system 
bearing the REA Designation ________ in strict accordance with the 
Specifications and Drawings therefor, attached hereto and made a 
part hereof, for the prices hereinafter stated.
    Section 2. Description of Project. The Project will consist of 
approximately ________ miles of right-of-way clearing. The Project 
is located in ________ counties in the State of ________.
    Section 3. Description of Contract. The Description of Units, 
Specifications, Drawings and Plans attached hereto and made a part 
hereof, together with the Proposal and Acceptance constitute the 
Contract. The Plans consisting of maps and plan and profile sheets 
if transmission clearing is included, showing the number and types 
of right-of-way units that are to be cleared, along with other 
special drawings are identified as follows:
    Section 4. Familiarity with Conditions. The Contractor warrants 
that it has made careful examination of the site of the Project and 
of the Specifications, Drawings, and form of Contractors' Bond 
attached hereto, and has become informed as to the location and 
nature of the proposed work, the transportation facilities, the kind 
and character of soil and terrain to be encountered, and the kind of 
facilities required for undertaking and completing the Project, and 
has become acquainted with the labor conditions, state and local 
laws and regulations which would affect the proposed work.
    Section 5. License. The Contractor warrants that a Contractor's 
License is ____, is not ____, required, and if required, it 
possesses Contractor's license number ________ for the State of 
________ in which the Project is located and said license expires on 
________, 19____.
    Section 6. Contractor's Bond. If the estimated cost of the 
clearing of a Section shall exceed $100,000, the Contractor agrees 
to furnish, prior to the commencement of work on such Section, a 
bond in the penal sum of not less than the estimated cost of the 
Section in the form attached hereto with a Surety or Sureties listed 
by the United States Treasury Department as acceptable sureties. In 
the event that the Surety or Sureties on the performance bond 
delivered to the Owner shall at any time become unsatisfactory to 
the Owner, the Contractor agrees to deliver to the Owner another or 
an additional bond.
    Section 7. Taxes. The unit prices for Right-of-Way Clearing 
Units in this Proposal include any sums which are or may be payable 
by the Contractor on account of taxes imposed by any taxing 
authority on payments for materials furnished or services performed 
by the Contractor under the terms of this Contract.

ARTICLE II--CONSTRUCTION

    Section 1. Time and Manner of Work.
    (a) The Contractor agrees to commence work on the Project on a 
date (hereinafter called the ``Commencement Date'') which shall be 
determined by the Owner after its acceptance of this Proposal, but 
in no event will the Commencement Date be later than ________ 
calendar days after date of acceptance of this Proposal. The 
Contractor further agrees to prosecute diligently and to complete 
clearing in strict accordance with the Specifications and Drawings 
within ________ (________) calendar days (excluding Sundays) after 
Commencement Date.
    (b) The time for Completion of Clearing shall be extended for 
the period of any reasonable delay which is due exclusively to 
causes beyond the control and without the fault of the Contractor, 
including acts of God, fires, floods, inability to obtain materials 
and acts or omissions of the Owner with respect to matters for which 
the Owner is solely responsible: Provided, however, that no such 
extension of time for completion shall be granted the Contractor 
unless within ten (10) days after the happening of any event relied 
upon by the Contractor for such an extension of time the Contractor 
shall have made a request therefor in writing to the Owner, and 
provided further that no delay in such time of completion or in the 
progress of the work which results from any of the above causes 
except acts or omissions of the Owner, shall result in any liability 
on the part of the Owner.
    (c) The sequence of construction shall be as set forth below, 
the numbers or names being the designations of extensions or areas 
(hereinafter called the ``Sections'') corresponding to the numbers 
or names shown on the maps attached hereto, or if no Sections are 
set forth below, the sequence of construction shall be as determined 
by the Contractor subject to the approval of the Owner.
    (d) The Owner may from time to time during the progress of the 
work on the Project make such changes in, additions to or 
subtractions from the Specifications, Drawings and sequence of work 
provided for in the previous paragraph which are part of the 
Contractor's Proposal as conditions may warrant: Provided, however, 
that if any change in the work to be done shall require an extension 
of time, a reasonable extension will be granted if the Contractor 
shall make a written request therefor to the Owner within ten (10) 
days after any such change is made. And provided further, that if 
the cost to the Contractor of completion of the Project shall be 
materially increased by any such change or addition, the Owner shall 
pay the Contractor for the reasonable cost thereof in accordance 
with a Contract Amendment signed by the Owner and the Contractor, 
but no claim for additional compensation for any such change or 
addition will be considered unless the Contractor shall have made a 
written request therefor to the Owner prior to the commencement of 
work in connection with such change or addition.
    (e) The Contractor will not perform any work hereunder on 
Sundays unless there is urgent need for such Sunday work and the 
Owner consents thereto in writing. The time for completion specified 
in subsection (a) of this Section 1 shall not be affected in any way 
by inclusion of this subsection by the Owner's consent or lack of 
consent to Sunday work hereunder.
    Section 2. Environmental Protection. The Contractor shall 
perform work in such a manner as to maximize preservation of beauty, 
conservation of natural resources, and minimize marring and scarring 
of the landscape and silting of streams. The Contractor shall not 
deposit trash in streams or waterways, and shall not deposit 
herbicides or other chemicals or their containers in or near 
streams, waterways or pastures. The Contractor shall follow, under 
the general direction of the Engineer, the criteria relating to 
environmental protection as specified herein by the Engineer.
    Section 3. Supervision and Inspection.
    (a) The Contractor shall cause the work on the Project to 
receive constant supervision by a competent superintendent 
(hereinafter called the ``Superintendent'') who shall be present at 
all times during working hours where work is being carried on. The 
Contractor shall also employ in connection with the Project, 
capable, experienced and reliable foremen and such skilled workmen 
as may be required for the various classes of work to be performed. 
Directions and instructions given to the Superintendent shall be 
binding upon the Contractor.
    (b) The Owner reserves the right to require the removal from the 
Project of any employee of the Contractor if in the judgment of the 
Owner such removal shall be necessary in order to protect the 
interest of the Owner. The Owner shall have the right to require the 
Contractor to increase the number of its employees and to increase 
or change the amount or kind of tools and equipment if at any time 
the progress of the work shall be unsatisfactory to the Owner; but 
the failure of the Owner to give any such directions shall not 
relieve the Contractor of its obligations to complete the work 
within the time and in the manner specified in this Proposal.
    (c) The manner of performance of the work, and all equipment 
used therein, shall be subject to the inspection and approval of the 
Owner. The Owner shall have the right to inspect all payrolls and 
other data and records of the Contractor relevant to the work. The 
Contractor will provide all reasonable facilities necessary for such 
inspection. The Contractor shall have an authorized agent accompany 
the inspector when final inspection is made and, if requested by the 
Owner, when any other inspection is made.
    (d) In the event that the Owner shall determine that the work 
contains or may contain numerous defects, it shall be the duty of 
the Contractor and the Contractor's Surety or Sureties to have an 
inspection made by an engineer approved by the Owner for the purpose 
of determining the exact nature, extent and location of such 
defects.
    (e) The Engineer may recommend to the Owner that the Contractor 
suspend the work wholly or in part for such period or periods as the 
Engineer may deem necessary due to unsuitable weather or such other 
conditions as are considered unfavorable for the satisfactory 
prosecution of the work or because of the failure of the Contractor 
to comply with any of the provisions of the Contract: Provided, 
however, that the Contractor shall not suspend work pursuant to this 
provision without written authority from the Owner so to do. The 
time of completion hereinabove set forth shall be increased by the 
number of days of any such suspension, except when such suspension 
is due to the failure of the Contractor to comply with any of the 
provisions of this Contract. In the event that work is suspended by 
the Contractor with the consent of the Owner, the Contractor before 
resuming work shall give the Owner at least twenty-four (24) hours' 
notice thereof in writing.
    Section 4. Unsuitable Workmanship. The acceptance of any 
workmanship by the Owner or the Engineer shall not preclude the 
subsequent rejection thereof if such workmanship shall be found to 
be unsuitable. Workmanship found unsuitable before final acceptance 
of the work shall be remedied, by and at the expense of the 
Contractor. The Contractor shall not be entitled to any payment 
hereunder so long as any unsuitable workmanship in respect to the 
Project, of which the Contractor shall have had notice, shall not 
have been remedied.

ARTICLE III--PAYMENT

    Section 1. Payments to Contractor.
    (a) Within the first fifteen (15) days of each calendar month, 
the Owner shall make partial payment to the Contractor for work 
accomplished during the preceding calendar month on the basis of a 
statement of completed clearing units furnished and certified to by 
the Contractor and approved by the Owner solely for the purposes of 
payment: Provided, however, that such approval by the Owner shall 
not be deemed approval of the workmanship or materials. Only ninety 
percent (90%) of each such statement approved during the clearing of 
a Section shall be paid by the Owner to the Contractor prior to 
completion of the Section. Upon completion by the Contractor of the 
clearing of a Section, the Contractor shall prepare a Final 
Inventory of the Section showing the total number and character of 
clearing units and shall deliver to the Owner a Certificate of 
Contractor and Indemnity Agreement in the form attached hereto, 
showing the total cost of the work performed and stating (1) that 
all persons who have furnished labor in connection with the Project 
and subcontractors who have furnished services for the Project have 
been paid in full and (2) that the Contractor shall hold the Owner 
harmless against any liens arising out of the Contractor's 
performance hereunder which may have been or may be filed against 
the Owner. Upon the approval of such certificate, the Owner shall 
make payment to the Contractor of all amounts to which the 
Contractor shall be entitled thereunder which shall not have been 
paid.
    (b) The Contractor shall be paid on the basis of the number of 
clearing units actually completed at the direction of the Owner 
shown by the Final Inventory: Provided, however, that the total cost 
shall not exceed the total contract price for the Project as set 
forth in the Acceptance, unless such excess shall have been approved 
in writing by the Owner.
    (c) No payment shall be due while the Contractor is in default 
in respect of any of the provisions of this Contract and the Owner 
may withhold from the Contractor the amount of any claim by a third 
party against either the Contractor or the Owner based upon an 
alleged failure of the Contractor to perform the work hereunder in 
accordance with the provisions of the Contract.
    (d) If no Sections are designated in Article II, Section 1 (c) 
the term ``Section'' shall mean for purposes of this subsection (a) 
and Article IV, Section 3 (b) only, a part of the Project as 
designated by the Owner which represents at least twenty-five 
percent (25%) of the total contract price as stated in the 
Acceptance.
    (e) Interest at the rate of ______ percent1 (______%) per 
annum shall be paid by the Owner to the Contractor on all unpaid 
balances due on monthly statements, commencing fifteen (15) days 
after the due date; provided the delay in payment beyond the due 
date is not caused by any condition within the control of the 
Contractor. The due date for purposes of such monthly payment shall 
be the fifteenth day of each calendar month provided (1) the 
Contractor on or before the fifth day of such month shall have 
submitted its certification of right-of-way clearing units completed 
during the preceding month and (2) the Owner on or before the 
fifteenth day of such month shall have approved such certification. 
If for reasons not due to the Contractor's fault, such approval 
shall not have been given on or before the fifteenth day of such 
month, the due date for purposes of this subsection (e) shall be the 
fifteenth day of such month notwithstanding the absence of the 
approval of the certification.
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    \1\ The Owner shall insert a rate equal to the lowest ``Prime 
Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued.
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    (f) Interest at the rate of ________ percent2 (________%) 
per annum shall be paid by the Owner to the Contractor on the final 
payment for the Project or any completed Section thereof, commencing 
fifteen (15) days after the due date. The due date for purposes of 
such final payment shall be the date of approval by the Owner of the 
Final Inventory and receipt of the Certificate of Contractor and 
Indemnity Agreement as conditions precedent to the making of final 
payment.
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    \2\See Footnote 1.
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    Section 2. Payments to Subcontractors. The Contractor shall pay 
each subcontractor, if any, within five (5) days after receipt of 
any payment from the Owner, the amount thereof allowed the 
Contractor for and on account of services performed by each 
subcontractor.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE CONTRACTOR

    Section 1. Protection to Persons and Property. The Contractor 
shall at all times take all reasonable precautions for the safety of 
employees on the work and of the public, and shall comply with all 
applicable provisions of Federal, state, and municipal safety laws 
and building and construction codes, as well as the safety rules and 
regulations of the Owner. All machinery and equipment and other 
physical hazards shall be guarded in accordance with the ``Manual of 
Accident Prevention in Construction'' of the Associated General 
Contractors of America unless such instructions are incompatible 
with Federal, state, or municipal laws or regulations.
    The following provisions shall not limit the generality of the 
above requirements:
    (a) The Contractor shall so conduct work on the Project as to 
cause the least possible obstruction of public highways.
    (b) The Contractor shall provide and maintain all such guard 
lights and other protection for the public as may be required by 
applicable statutes, ordinances, and regulations or by local 
conditions.
    (c) The Contractor shall do all things necessary or expedient to 
properly protect any and all parallel, converging, and intersecting 
lines, joint line poles, highways, and any and all property of 
others from damage, and in the event that any such parallel, 
converging and intersecting lines, joint line poles, highways, or 
other property are damaged in the course of work on the Project the 
Contractor shall at its own expense restore any or all of such 
damaged property immediately to as good a state as before such 
damage occurred.
    (d) Where the right-of-way of the Project traverses cultivated 
lands, the Contractor shall limit the movement of his crews and 
equipment so as to cause as little damage as possible to crops, 
orchards, or property and shall endeavor to avoid marring the lands. 
All fences which are necessarily opened or moved during work on the 
project shall be replaced in as good condition as they were found 
and precautions shall be taken to prevent the escape of livestock. 
The Contractor shall not be responsible for loss of or damage to 
crops, orchards, or property (other than livestock) on the right-of-
way necessarily incident to work on the Project and not caused by 
negligence or inefficient operation of the Contractor. The 
Contractor shall be responsible for all other loss of or damage to 
crops, orchards, or property, whether on or off the right-of-way, 
and for all loss of or damage to livestock caused by work on the 
Project. The right-of-way for purposes of this said section shall 
consist of an area extending ________ feet on both sides of the 
center line of the poles along the route of the Project lines, plus 
such area reasonably required by the Contractor for access to the 
route of the Project lines from public roads to carry on the work.
    (e) The Project, from the commencement of work to completion, or 
to such earlier date or dates when the Owner may take possession and 
control in whole or in part as hereinafter provided, shall be under 
the charge and control of the Contractor and during such period of 
control by the Contractor all risks in connection with the work on 
the Project and the materials to be used therein shall be borne by 
the Contractor. The Contractor shall make good and fully repair all 
injuries and damages to the Project or any portion thereof under the 
control of the Contractor by reason of an act of God or other 
casualty or cause whether or not the same shall have occurred by 
reason of the Contractor's negligence.
    (i) To the maximum extent permitted by law, Contractor shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Contractor's employees) and loss, damage to or 
destruction of Owner's property or the property of any other person 
or entity (including but not limited to Contractor's property) in 
any manner arising out of or connected with the Contract, or the 
materials or equipment supplied or services performed by Contractor, 
its subcontractors and suppliers of any tier. But nothing herein 
shall be construed as making Contractor liable for any injury, 
death, loss, damage, or destruction caused by the sole negligence of 
Owner.
    (ii) To the maximum extent permitted by law, Contractor shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Contractor, its subcontractors and suppliers 
of any tier, and from all losses, demands, and causes of action 
arising out of any such lien or claim. Contractor shall promptly 
discharge or remove any such lien or claim by bonding, payment, or 
otherwise and shall notify Owner promptly when it has done so. If 
Contractor does not cause such lien or claim to be discharged or 
released by payment, bonding, or otherwise, Owner shall have the 
right (but shall not be obligated) to pay all sums necessary to 
obtain any such discharge or release and to deduct all amounts so 
paid from the amount due Contractor.
    (iii) Contractor shall provide to Owner's satisfaction evidence 
of Contractor's ability to comply with the indemnification 
provisions of subparagraphs i and ii above, which evidence may 
include but may not be limited to a bond or liability insurance 
policy obtained for this purpose through a licensed surety or 
insurance company.
    (f) Any and all excess earth, rock, debris, underbrush, and 
other useless material shall be removed by the Contractor from the 
site of the Project as rapidly as practicable as the work 
progresses. The Contractor shall not deposit trash in streams or 
waterways, and shall not deposit herbicides or other chemicals or 
their containers in or near streams, waterways or pastures.
    (g) Upon violation by the Contractor of any provisions of this 
section, after written notice of such violation given to the 
Contractor by the Owner, the Contractor shall immediately correct 
such violation. Upon failure of the Contractor so to do the Owner 
may correct such violation at the Contractor's expense.
    (h) The Contractor shall submit to the Owner monthly reports in 
duplicate of all accidents, giving such data as may be prescribed by 
the Owner.
    (i) The Contractor shall not proceed with the cutting of trees 
or clearing of right-of-way without written notification from the 
Owner that proper authorization has been received from the owner of 
the property and the Contractor shall promptly notify the Owner 
whenever any landowner objects to the trimming or felling of any 
trees or the performance of any other work on his land in connection 
with the Project and shall obtain the consent in writing of the 
Owner before proceeding in any such case.
    Section 2. Insurance. The Contractor shall take out and maintain 
throughout the period of this Agreement the following minimum 
amounts of insurance:
    (a) Worker's compensation and employer's liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    (b) Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    (c) Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million per person and $1 million each occurrence, and property 
damage limits of $1 million for each occurrence. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    The Owner shall have the right at any time to require public 
liability insurance and property damage liability insurance greater 
than those required in subsection ``b'' and ``c'' of this Section. 
In any such event, the additional premium or premiums payable solely 
as the result of such additional insurance shall be added to the 
Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 3. Delivery of Possession and Control to the Owner.
    (a) Upon written request of the Owner, the Contractor shall 
deliver to the Owner full possession and control of any portion of 
the Project provided the Contractor shall have been paid at least 
ninety percent (90%) of the cost of the work of such portion. Upon 
such delivery of possession and control to the Owner, the risks and 
obligations of the Contractor as set forth in Section 1(e) of this 
Article IV with respect to such portion so delivered to the Owner, 
shall be terminated: Provided, however, that nothing herein 
contained shall relieve the Contractor of any liability with respect 
to unsuitable workmanship as specified in Article II, Section 4.
    (b) Where the construction of a Section as hereinbefore defined 
in Article II, Section 1(c) and Article III, Section 1(d) shall have 
been completed by the Contractor, the Owner agrees, after receipt of 
a written request from the Contractor, to accept delivery of 
possession and control of such Section upon having inspected the 
Section and having found the work acceptable. Upon such delivery of 
the possession and control of any such Section to the Owner, the 
risk and obligations of the Contractor as set forth in Article IV, 
Section 1(e) hereof with respect to such Section so delivered to the 
Owner shall be terminated: Provided, however, that nothing herein 
contained shall relieve the Contractor of any liability with respect 
to unsuitable workmanship as specified in Article II, Section 4 
hereof.
    Section 4. Assignment of Guarantees. All guarantees of materials 
and workmanship running in favor of the Contractor shall be 
transferred and assigned to the Owner prior to the time the 
Contractor receives final payment for any Section.

ARTICLE V--REMEDIES

    Section 1. Completion on Contractor's Default. If default shall 
be made by the Contractor or by any subcontractor in the performance 
of any of the terms of this Proposal, the Owner, without in any 
manner limiting its legal and equitable remedies in the 
circumstances, may serve upon the Contractor and the Surety, if any, 
a written notice requiring the Contractor to cause such default to 
be corrected forthwith. Unless within twenty (20) days after the 
service of such notice upon the Contractor and the Surety, if any, 
such default shall be corrected or arrangements for the correction 
thereof satisfactory to the Owner shall be made, the Owner may take 
over the work on the Project and prosecute the same to completion by 
contract or otherwise for the account and at the expense of the 
Contractor, and the Contractor shall be liable to the Owner for any 
cost or expense in excess of the contract price occasioned thereby. 
In such event the Owner may take possession of and utilize, in 
completing the Project, any materials, tools, supplies, equipment, 
appliance, and plant belonging to the Contractor or any of its 
subcontractors, which may be situated at the site of the Project. 
The Owner in such contingency may exercise any rights, claims, or 
demands which the Contractor may have against third persons in 
connection with this Proposal and for such purpose the Contractor 
does hereby assign, transfer, and set over unto the Owner all such 
rights, claims, and demands.
    Section 2. Liquidated Damages. The time of the Completion of 
Clearing is of the essence of the Contract. Should the Contractor 
neglect, refuse or fail to complete the clearing within the time 
herein agreed upon, after giving effect to extensions of time, if 
any, herein provided, then, in that event and in view of the 
difficulty of estimating with exactness damages caused by such 
delay, the Owner shall have the right to deduct from and retain out 
of such monies which may be then due, or which may become due and 
payable to the Contractor the sum of ________ dollars (________) per 
day for each and every day that such work is delayed in its 
completion beyond the specified time, as liquidated damages and not 
as a penalty; if the amount due and to become due from the Owner to 
the Contractor is insufficient to pay in full any such liquidated 
damages, the Contractor shall pay to the Owner the amount necessary 
to effect such payment in full: Provided, however, that the Owner 
shall promptly notify the Contractor in writing of the manner in 
which the amount retained, deducted or claimed as liquidated damages 
was computed.
    Section 3. Cumulative Remedies. Every right or remedy herein 
conferred upon or reserved to the Owner shall be cumulative, shall 
be in addition to every right and remedy now or hereafter existing 
at law or in equity or by statute and the pursuit of any right or 
remedy shall not be construed as an election: Provided, however, 
that the provision of Section 2 of this Article shall be the 
exclusive measure of damages for failure by the Contractor to 
complete the clearing within the time herein agreed upon.

ARTICLE VI--MISCELLANEOUS

    Section 1. Definitions.
    (a) The term Engineer shall mean the engineer employed by the 
Owner to provide engineering services for the Project and said 
Engineer's duly authorized assistants and representatives. The term 
``Engineer'' will mean ``Owner'' if no engineer is employed by the 
Owner to provide engineering services.
    (b) The term Completion of Clearing shall mean full performance 
by the Contractor of the Contractor's obligations under the Contract 
and all amendments and revisions thereof except the Contractor's 
obligations in respect of furnishing (1) the ``Certificate of 
Contractor and Indemnity Agreement'' and (2) the Final Inventory 
both referred to in Article III, Section 1 hereof.
    (c) The term Completion shall mean full performance by the 
Contractor of the Contractor's obligations under the Contract and 
all amendments and revisions thereof relating to any Section of the 
Project or to the Project.
    Section 2. Patent Infringement. The Contractor shall save 
harmless and indemnify the owner from any and all claims, suits and 
proceedings for the infringement of any patent or patents covering 
any materials or equipment used in construction of the Project.
    Section 3. Permits for Explosives. All permits necessary for the 
handling or use of dynamite or other explosives in connection with 
the construction of the Project shall be obtained by and at the 
expense of the Contractor.
    Section 4. Compliance with Statutes and Regulations. The 
Contractor will comply with all applicable statutes, ordinances, 
rules, and regulations pertaining to the work. The Contractor 
acknowledges that it is familiar with the Rural Electrification Act 
of 1936, as amended, the so-called ``Kick-Back'' Statute (48 Stat. 
948), and regulations issued pursuant thereto, and 18 U.S.C. 286, 
287, 1001, as amended. The Contractor understands that the 
obligations of the parties hereunder are subject to the applicable 
regulations and orders of governmental agencies having jurisdiction 
in the premises.
    Section 5. Equal Opportunity Provisions.
    (a) Contractor's Representations.
    The Contractor represents that:
    It has ____, does not have____, 100 or more employees, and if it 
has, that it has ____, has not____, furnished the Equal Employment 
Opportunity--Employers Information Report EEO-1, Standard Form 100, 
required of employers with 100 or more employees pursuant to 
Executive Order 11246 and Title VII of the Civil Rights Act of 1964.
    The Contractor agrees that it will obtain, prior to the award of 
any subcontractor for more than $10,000 hereunder to a subcontractor 
with 100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100. The Contractor agrees that if it has 
100 or more employees and has not submitted a report on Standard 
Form 100 for the current reporting year and that if this Contract 
will amount to more than $10,000, the Contractor will file such 
report, as required by law, and notify, the Owner in writing of such 
filing prior to the Owner's acceptance of this Proposal.
    (b) Equal Opportunity Clause. During the performance of this 
Contract, the Contractor agrees as follows:
    (1) The Contractor will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex, or 
national origin. The Contractor will take affirmative action to 
ensure that applicants are employed, and that employees are treated 
during employment without regard to their race, color, religion, 
sex, or national origin. Such action shall include, but not be 
limited to the following: Employment, upgrading, demotion or 
transfer; recruitment or recruitment advertising; layoff or 
termination; rates of pay or other forms of compensation; and 
selection for training, including apprenticeship. The Contractor 
agrees to post in conspicuous places, available to employees and 
applicants for employment, notices to be provided setting forth the 
provisions of this Equal Opportunity Clause.
    (2) The Contractor will, in all solicitations or advertisements 
for employees placed by or on behalf of the Contractor, state that 
all qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex, or national origin.
    (3) The Contractor will send to each labor union or 
representative of workers with which it has a collective bargaining 
agreement or other contract or understanding, a notice to be 
provided advising the said labor union or worker's representatives 
of the Contractor's commitments under this section, and shall post 
copies of the notice in conspicuous places available to employees 
and applicants for employment.
    (4) The Contractor will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and of the rules, regulations and 
relevant orders of the Secretary of Labor.
    (5) The Contractor will furnish all information and reports 
required by Executive Order 11246 of September 24, 1965, and by 
rules, regulations and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations and orders.
    (6) In the event of the Contractor's noncompliance with the 
Equal Opportunity Clause of this Contract or with any of the said 
rules, regulations or orders, this Contract may be cancelled, 
terminated or suspended in whole or in part and the Contractor may 
be declared ineligible for further Government contracts or 
federally-assisted construction contracts in accordance with 
procedures authorized in Executive Order 11246 of September 24, 
1965, and such other sanctions may be imposed and remedies invoked 
as provided in the said Executive Order or by rule, regulation or 
order of the Secretary of Labor, or as otherwise provided by law.
    (7) The Contractor will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by rules, 
regulations or orders of the Secretary of Labor issued pursuant to 
Section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Contractor will take such action with respect to any subcontract 
or purchase order as the administering agency may direct as a means 
of enforcing such provisions, including sanctions for noncompliance: 
Provided, however, that in the event a Contractor becomes involved 
in, or is threatened with, litigation with a subcontractor or vendor 
as a result of such direction by the administering agency, the 
Contractor may request the United States to enter into such 
litigation to protect the interests of the United States.
    (c) Certificate of Nonsegregated Facilities. The Contractor 
certifies that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Contractor certifies further that it will not maintain or provide 
for its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Contractor agrees that a breach of 
this certification is a violation of the Equal Opportunity Clause in 
this Contract. As used in this certification, the term ``segregated 
facilities'' means any waiting rooms, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Contractor agrees that (except where it has 
obtained identical certifications from proposed subcontractors for 
specific time periods) it will obtain identical certifications from 
proposed subcontractors prior to the award of subcontracts exceeding 
$10,000 which are not exempt from the provisions of the Equal 
Opportunity Clause, and that it will retain such certifications in 
its files.
    Section 6. Franchises and Rights-of-way. The Contractor will be 
under no obligation to obtain or assist in obtaining any franchises, 
authorizations, permits, or approvals required to be obtained by the 
Owner from Federal, state, county, municipal or other authority; any 
rights-of-way over private lands; or any agreements between the 
Owner and third parties with respect to the construction and 
operation of the Project.
    Section 7. Nonassignment of Contract. The Contractor shall not 
assign the Contract effected by an acceptance of this Proposal or 
any part thereof or enter into any contract with any person, firm or 
corporation for the performance of the Contractor's obligations 
thereunder, or any part thereof, without the approval in writing of 
the Owner.
    Section 8. Extension to Successors and Assigns. Each and all of 
the covenants and agreements contained in the Contract effected by 
the acceptance of the Proposal shall extend to and be binding upon 
the successors and assigns of the parties thereto.

________ (Contractor)
By ________ (President)
________ (Address)
ATTEST: ________ (Secretary)
Date of Proposal ________

    This Proposal must be signed with the full name of the 
Contractor. If the Contractor is a partnership, the Proposal must be 
signed in the partnership name by a partner. If the Contractor is a 
corporation, the Proposal must be signed in the corporate name by a 
duly authorized officer and the corporate seal affixed and attested 
by the Secretary of the Corporation.

Description of Units

    Right-of-Way Clearing Units:
    R1-10. The unit is 1,000 feet in length and 10 feet in width (to 
be measured on one side of the pole line) of actual clearing of 
right-of-way. This includes clearing of underbrush, tree removal, 
and such tree trimming as is required so that the right-of-way, 
except for tree stumps which shall not exceed ________ in height, 
shall be clear from the ground up of the width specified on one side 
of the line of poles carrying primary conductors. This unit does not 
include clearing or trimming associated with secondaries or services 
which is included with conductor units. The length of actual 
clearing shall be measured in a straight line parallel to the 
horizontal line between stakes and across the maximum dimension of 
foliage cleared projected to the ground line. All trees and 
underbrush across the width of the right-of-way, as designated by 
the Engineer shall be considered to be grouped together as a single 
length in measuring the total length of clearing. Spaces along the 
right-of-way in which no trees are to be removed or trimmed or 
underbrush cleared shall be omitted from the total measurement. All 
length thus arrived at, added together and divided by 1,000, shall 
give the number of 1,000-foot R1-10 units of clearing. This unit 
includes the removal or topping, at the option of the Contractor; of 
danger trees outside of the right-of-way when so designated by the 
Engineer. (Danger trees are defined as dead or leaning trees which, 
in falling, will affect the operation of the line.) The Contractor 
shall not remove or trim shade, fruit or ornamental trees unless so 
directed by the Engineer.
    R1-20. This unit is identical with R1-10 except that width is 20 
feet (to be measured 10 feet on each side of the pole line).
    R1-30. This unit is identical with R1-10 except that width is 30 
feet (to be measured 15 feet on each side of the pole line).
    R1-40. This unit is identical with R1-10 except that width is 40 
feet (to be measured 20 feet on each side of the pole line).
    RC1-10, RC1-20, RC1-30, RC1-40. These units are identical to the 
respective R1 units except that chemical treatment of stumps is 
required in addition to the clearing of underbrush, tree removal and 
tree trimming.
    TM-12. The unit is 1,000 feet in length and ________ (________) 
feet in width (to be measured ________ (________) feet on one side 
of pole line or centerline of structures) of actual clearing of 
right-of-way. This includes clearing of underbrush, tree removal, 
and such tree trimming as is required so that the right-of-way, 
except for tree stumps which shall not exceed ________ in height, 
shall be clear from the ground up on one side of the line poles 
carrying conductors. (See Detail A, Drawing TM-12-2A). The length of 
actual clearing shall be measured in a straight line parallel to the 
horizontal line between poles or centerline of structures and across 
the maximum dimension of foliage cleared projected to the ground 
line (See Detail B, Drawing TM-12-2A). All trees and underbrush 
across the width of the right-of-way shall be considered to be 
grouped together as a single length in measuring the total length of 
clearing (See Detail C, Drawing TM-12-2A). Spaces along the right-
of-way in which no trees are to be removed or trimmed or underbrush 
cleared shall be omitted from the total measurement. All length thus 
arrived at, added together and divided by 1,000 shall give the 
number of TM-12 units of clearing. The Contractor shall not remove 
or trim shade, fruit or ornamental trees unless so directed by the 
Engineer in writing.
    TM-12 (1). This unit is identical with TM-12, except the full 
width of the right-of-way to be cleared shall be ________ (________) 
feet wide (to be measured ________ (________) feet on each side of 
the pole line or centerline of structures) (See Detail D, Drawing 
TM-12-2A.)
    TMC-12, TMC-12 (1). These units are identical to the respective 
TM units except that chemical treatment of stumps is required in 
addition to the clearing of underbrush, tree removal and tree 
trimming.
    TM-13. The unit, for purpose of quoting, is 1,000 feet in length 
of clearing off the right-of-way. The Engineer will select those 
trees of the right-of-way that he deems to be a hazard to the line 
and will designate them to the Contractor in writing as danger 
trees. When so designated, the Contractor shall remove or top such 
trees at his option except that the Contractor shall trim and not 
remove shade, fruit or ornamental trees unless otherwise directed by 
the Engineer in writing (See Drawings TM-12-2A and TM-13 for 
examples of danger trees).
    The measurement of length of right-of-way to be cleared shall be 
considered as a straight line parallel to the horizontal line 
between poles or centerline of structures, such measurement of 
length to be based on maximum dimension of foliage (not trunk) 
projected to the ground line (See Details E, F, G, and H, Drawing 
TM-12-2A). Dead trees having no foliage shall be measured across the 
maximum dimension and multiplied by two. (See Detail F, Drawing TM-
12-2A). Each tree so removed shall be added together to determine 
the total length of clearing. All length thus arrived at, added 
together and divided by 1,000 shall give the number of TM-13 units 
(Example: Details E, F, G, and H, Drawing TM-12-2A, total .1 of a 
TM-13 unit).
    TM-14. The unit is 1,000 feet in length and ________ (________) 
feet in width (to be measured ________ (________) feet on one side 
of right-of-way center line) of actual clearing of right-of-way. 
Trees and underbrush should be cleared from the ground up within 10 
feet of any structure location. The Engineer will mark the trees and 
brush to be cleared to provide ``undulating'' boundaries. Low 
growing trees and brush are to be left in the right-of-way to the 
extent it will not be hazardous to the line or will not interfere 
with the access road.
    The length of actual clearing shall be measured in a straight 
line parallel to the horizontal line between poles or center line of 
structures and across the maximum dimension of foliage cleared 
projected to the ground line (See Detail B, Drawing TM-12-2A). All 
trees and underbrush cleared across the right-of-way shall be 
considered to be grouped together as a single length in measuring 
the total length of clearing (See Detail C, Drawing TM-12-2A). 
Spaces along the right-of-way in which no trees are to be removed or 
trimmed or underbrush cleared shall be omitted from the total 
measurement.
    TM-14 (1). This unit is identical with TM-14 except the full 
width of the right-of-way to be cleared shall be ________ (________) 
feet wide (See Detail D, Drawing TM-12-2A).
    TM-15. The unit is 1,000 feet in length and ________ (________) 
feet in width (to be measured ________ (________) feet on one side 
of the right-of-way center line) of actual clearing of the right-of-
way. Trees and underbrush should be cleared from ground up within 10 
feet of any structure location. The Engineer will mark the trees and 
brush to be cleared to provide a ``feathered'' appearance in the 
right-of-way. Low growing trees and brush are to be left in the 
right-of-way to the extent it will not be hazardous to the line or 
will not interfere with the access road.
    The length of actual clearing shall be measured in a straight 
line parallel to the horizontal line between poles or center line of 
structures and across the maximum dimension of foliage cleared 
projected to ground line. (See Detail B, Drawing TM-12-2A). All 
trees and underbrush cleared across the right-of-way shall be 
considered to be grouped together as a single length in measuring 
the total length of clearing (See Detail C, Drawing TM-12-2A). 
Spaces along the right-of-way, in which no trees are to be removed 
or trimmed or underbrush cleared shall be omitted from the total 
measurement.
    TM-15 (1). This unit is identical to TM-15 except the full width 
of the right-of-way to be cleared shall be ________ (________) feet 
wide (See Detail D, Drawing TM-12-2A).
    Additional Requirements. (When specifying units denote type of 
disposal A or B).
    A. Trees, brush, branches and refuse shall, without delay be 
disposed of by such of the following methods as the Engineer will 
direct (Engineer to strike out methods not to be used).

1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (Describe)

    B. Trees that are felled shall be cut to commercial wood 
lengths, stacked neatly, and left on the right-of-way for the 
landowner. Commercial wood length means the length designated by the 
Engineer but in no case shall it be required to be less than 
________ (________) feet. Brush, branches and refuse shall, without 
delay, be disposed of by such of the following methods as the 
Engineer will direct (Engineer to strike out methods not to be 
used).

1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (Describe)

Specifications

    In preparing the right-of-way, trees shall be removed, 
underbrush cleared, and trees trimmed so that the right-of-way shall 
be clear from the ground up or as specified. Trees fronting each 
side of the right-of-way shall be trimmed symmetrically unless 
otherwise directed by the Engineer. Dead trees beyond the right of-
way which would strike the line in falling shall be removed. Leaning 
trees beyond the right-of-way which would strike the line in falling 
and which would require topping if not removed may be removed or 
topped at the direction of the Engineer.
    Where RC or TMC units are specified, the right-of-way shall be 
cleared in accordance with the instructions in the preceding 
paragraph and in addition, all stumps one-half inch in diameter and 
larger shall be sprayed as specified by the Engineer.

Right-of-Way Units 

                       Distribution Clearing Units                      
------------------------------------------------------------------------
    Unit No.        No. of Units       Unit Price       Extended Price  
------------------------------------------------------------------------
                  ................  ................  ..................
------------------------------------------------------------------------

Total------------------------------------------------------------------

                       Transmission Clearing Units                      
------------------------------------------------------------------------
    Unit No.        No. of Units       Unit Price       Extended Price  
------------------------------------------------------------------------
                  ................  ................  ..................
------------------------------------------------------------------------

Total------------------------------------------------------------------
Total Distribution and Transmission------------------------------------

Acceptance

    The Owner hereby accepts the foregoing Proposal of the 
Contractor, ________ for the following:

Total Distribution Clearing: $________
Total Transmission Clearing: $________
The total contract price is $________
________ Owner
By ________ President
________ Secretary
________ Date of Contract

[End of clause]


Sec. 1726.322  Transmission system right-of-way clearing contract, REA 
Form 203.

    The contract form in this section shall be used when required by 
this part. This form refers to guide drawings, which do not contain 
requirements, and, hence, are not included in this part. The guide 
drawings are included in the printed form available from REA (See 
Sec. 1726.300.)

Transmission System Right-of-Way Clearing Contract

Notice and Instructions to Bidders

    1. Sealed proposals for the clearing of underbrush and trees 
from right-of-way, including the supply of necessary labor and 
equipment, of a rural electric system of ________ (hereinafter 
called the ``Owner'') bearing the REA Designation ________ will be 
received by the Owner on or before ________ o'clock ____ M., 
________ 19________, at its office at ________ at which time and 
place the proposals will be publicly opened and read. Any proposal 
received subsequent to the time specified will be promptly returned 
to the Bidder unopened.
    2. Description of Project. The Project will consist of 
approximately: ________ miles of right-of-way clearing. The Project 
is located in ________ Counties in the State of ________.
    3. Obtaining and Transferring Documents. All necessary forms and 
other documents for bidders may be obtained from the Owner, or from 
the Engineer ________ at the latter's office at ________. A copy of 
the Loan Contract (if the Project is to be financed in whole or in 
part, pursuant to a Loan Contract) between the Owner and the United 
States of America acting through the Administrator of the Rural 
Electrification Administration (hereinafter called the 
Administrator), and any other lender's contract may be examined at 
the office of the Owner. Each set of documents will have a serial 
number, given by the Engineer, and the number of each set with the 
name of the recipient will be recorded by the Engineer. Bids will be 
accepted only from the original recipient.
    4. Manner of Submitting Proposals. Proposals and all supporting 
instruments must be submitted on the forms furnished by the Owner 
and must be delivered in a sealed envelope addressed to the Owner. 
The name and address of the Bidder, its license number if a license 
is required by the State, and the date and hour of the opening of 
bids must appear on the envelope in which the Proposal is submitted. 
Proposals must be filled in in ink or typewritten. No alterations or 
interlineations will be permitted, unless made before submission, 
and initialed and dated.
    5. Familiarity with Conditions. Prior to the submission of the 
Proposal the Bidder shall make and shall be deemed to have made a 
careful examination of the site of the Project and of the 
Specifications, Drawings, and forms of Contractor's Proposal and 
Contractor's Bond on file with the Secretary of the Owner and with 
the Engineer, and shall become informed as to the location and 
nature of the proposed work, the transportation facilities, the kind 
and character of soil and terrain to be encountered, the kind of 
facilities required before and during the construction of the 
Project. Bidders will be required to comply with all applicable 
statutes, regulations, etc., including those pertaining to the 
licensing of contractors, and the so-called ``Kick-back Statute'' 
(48 Stat. 948) and regulations issued pursuant thereto.
    6. Proposals will be accepted only from those prequalified 
bidders invited by the Owner to submit a proposal.
    7. The time for Completion of the Project shall be as specified 
by the Engineer in the Proposal.
    8. Bid Bond. Each Proposal must be accompanied by a bid bond in 
the form attached or a certified check on a bank that is a member of 
the Federal Deposit Insurance Corporation, payable to the order of 
the Owner, in an amount equal to ten percent (10%) of the maximum 
bid price. Each Bidder agrees, provided its Proposal is one of the 
three low Proposals, that, by filing its Proposal together with such 
bid bond or check in consideration of the Owner's receiving and 
considering such Proposals, said Proposal shall be firm and binding 
upon each such Bidder and such bid bond or check shall be held by 
the Owner until a Proposal is accepted and a satisfactory 
Contractor's Bond is furnished (where required) by the successful 
Bidder and such acceptance has been approved by the Administrator, 
or for a period not to exceed sixty (60) days from the date 
hereinbefore set for the opening of Proposals, whichever period 
shall be the shorter. If such Proposals is not one of the three low 
Proposals, the bid bond or check will be returned in each instance 
within a period of ten (10) days to the Bidder furnishing same.
    9. Contractor's Bond. The successful Bidder will be required to 
execute two additional counterparts of the Proposal and, for a 
Contract in excess of $100,000, to furnish a Contractor's Bond in 
triplicate in the form attached hereto with sureties listed by the 
United States Treasury Department as Acceptable Sureties, in a penal 
sum not less than the contract price.
    10. Failure to Furnish Contractor's Bond. Should the successful 
Bidder fail or refuse to execute such counterparts or to furnish a 
Contractor's Bond (where required) within ten (10) days after 
written notification of the acceptance of the Proposal by the Owner, 
the Bidder will be considered to have abandoned the Proposal. In 
such event, the Owner shall be entitled (a) to enforce the bid bond 
in accordance with its terms, or (b) if a certified check has been 
delivered with the Proposal, to retain from the proceeds of the 
certified check, the difference (not exceeding the amount of the 
certified check) between the amount of the Proposal and such larger 
amount for which the Owner may in good faith contract with another 
party to construct the Project. The term ``successful Bidder'' shall 
be deemed to include any Bidder whose Proposal is accepted after 
another Bidder has previously refused or has been unable to execute 
the counterparts or to furnish a satisfactory Contractor's Bond 
(where required.)
    11. Contract is Entire Agreement. The Contract to be effected by 
the acceptance of the Proposal shall be deemed to include the entire 
agreement between the parties thereto, and the Bidder shall not 
claim any modification thereof resulting from any representation or 
promise made at any time by any officer, agent or employee of the 
Owner or by any other person.
    12. Minor Irregularities. The Owner reserves the right to waive 
minor irregularities or minor errors in any Proposal, if it appears 
to the Owner that such irregularities or errors were made through 
inadvertence. Any such irregularities or errors so waived must be 
corrected on the Proposal in which they occur prior to the 
acceptance thereof by the Owner.
    13. Bid Rejection. The Owner reserves the right to reject any or 
all Proposals.
    14. Definition of Terms. The terms ``Administrator,'' 
``Engineer,'' ``Supervisor,'' ``Project,'' ``Completion of 
Construction'' and ``Completion of the Project'' as used throughout 
this Contract shall be as defined in Article VI, Section 1, of the 
Contractor's Proposal.
    15. The Owner represents:
    a. All easements and rights-of-way, except as shown on maps 
included in the Specifications, have been obtained from the Owners 
of the properties across which the project is to be carried out 
(including tenants who may reasonably be expected to object to such 
clearing). The remaining easements and rights-of-way, if any, will 
be obtained as required to avoid delay in construction.
    b. Prompt payment for the work to be done will be made with 
funds pursuant to the Loan Contract, or with funds otherwise 
available to the Owner.
    If the Owner shall fail to comply with any of the undertakings 
contained in the foregoing representations or if any such 
representations shall be incorrect, the Bidder will be entitled to 
extension of time of completion for a period equal to the delay, if 
any, caused by the failure of the Owner to comply with such 
undertakings or by any such incorrect representation; provided the 
Bidder shall have promptly notified the Owner in writing of its 
desire to extend the time of completion in accordance with the 
foregoing.

________ Owner
By ________
________, 19________

Contractor's Proposal

    (Proposal shall be submitted in ink or typewritten).
    To: ________ (Hereinafter called the ``Owner'').

ARTICLE I--GENERAL

    Section 1. Offer to Clear. The undersigned (hereinafter called 
the ``Bidder'') hereby proposes to furnish all materials, equipment, 
machinery, tools, labor, transportation and other means required to 
clear rights-of-way for rural electric system bearing the REA 
Designation ________ in strict accordance with the Specifications 
and Drawings therefor, attached hereto and made a part hereof, for 
the prices hereinafter stated.
    Section 2. Description of Contract. The Notice and Instructions 
to Bidders and Specifications attached hereto and made a part 
hereof, together with the Proposal and Acceptance constitute the 
contract. The Specifications consisting of maps, plan and profile 
sheets showing the number and types of right-of-way units that are 
to be cleared for each parcel, along with other special drawings are 
identified as follows: ________.
    Section 3. Familiarity with Conditions. The Bidder has made a 
careful examination of the site of the Project and of the 
Specifications, Drawings, and form of Contractor's Bond attached 
hereto, and has become informed as to the location and nature of the 
proposed work, the transportation facilities, the kind and character 
of soil and terrain to be encountered, and the kind of facilities 
required for undertaking and completing the Project, and has become 
acquainted with the labor conditions, state and local laws and 
regulations which would affect the proposed work.
    Section 4. License. The Bidder warrants that a Contractor's 
License is ________, is not ________, required, and if required, it 
possesses Contractor's license number ________ for the State of 
________ in which the Project is located and said license expires on 
________, 19________.
    Section 5. The Bidder warrants that this Proposal is made in 
good faith and without collusion or connection with any person or 
persons bidding for the same work.
    Section 6. The Bidder warrants that it possesses adequate 
financial resources and agrees that in the event this Proposal is 
accepted and a Contractor's Bond is required, it will furnish a 
Contractor's Bond in the form attached hereto, in a penal sum not 
less than the maximum Contractor price, with a surety or sureties 
listed by the United States Treasury Department as Acceptable 
Sureties.
    In the event that the surety or sureties on the performance bond 
delivered to the Owner contemporaneously with the execution of the 
Contract or on any bond or bonds delivered in substitution therefor 
or in addition thereto shall at any time become unsatisfactory to 
the Owner or the Administrator, the Bidder agrees to deliver to the 
Owner another or an additional bond.

ARTICLE II--CONSTRUCTION

Section 1.--Time and Manner of Work

    (a) Bidder agrees to commence work on the Project on a date 
(hereinafter called the ``Commencement Date'') which shall be 
determined by the Engineer after notice in writing of approval of 
the Contract by the Administrator, but in no event will the 
Commencement Date be later than ________ calendar days after date of 
approval of the Contract by the Administrator. The Bidder further 
agrees to prosecute diligently and to complete construction in 
strict accordance with the Specifications and Drawings within 
________ (________) calendar days (excluding Sundays) after 
Commencement Date.
    (b) The time for Completion of Clearing shall be extended for 
the period of any reasonable delay which is due exclusively to 
causes beyond the control and without the fault of the Bidder, 
including Acts of God, fires, floods, inability to obtain materials 
and acts or omissions of the Owner with respect to matters for which 
the Owner is solely responsible: Provided however, that no such 
extension of time for completion shall be granted the Bidder unless 
within ten (10) days after the happening of any event relied upon by 
the Bidder for such an extension of time the Bidder shall have made 
a request therefor in writing to the Owner, and provided further 
that no delay in such time of completion or in the progress of the 
work which results from any of the above causes except acts or 
omission of the Owner, shall result in any liability on the part of 
the Owner.
    (c) The sequence of construction shall be as set forth below, 
the numbers or names being the designations of extensions or areas 
(hereinafter called the ``Sections'') corresponding to the numbers 
or names shown on the maps attached hereto, or if no Sections are 
set forth below, the sequence of construction shall be as determined 
by the Bidder, subject to the approval of the Engineer. ________
    (d) The Owner, acting through the Engineer and with the approval 
of the Administrator1, may from time to time during the 
progress of the work on the Project make such changes in additions 
to or subtractions from the Specifications, Drawings, and sequence 
of construction provided for in the previous paragraph which are 
part of the Contractor's Proposal as conditions may warrant: 
Provided, however, that if any change in the construction to be done 
shall require an extension of time, a reasonable extension will be 
granted if the Bidder shall make a written request therefor to the 
Owner within ten (10) days after any such change is made. And 
provided further, that if the cost to the Bidder of construction of 
the Project shall be materially increased by any such change or 
addition, the Owner shall pay the Bidder for the reasonable cost 
thereof in accordance with a Contract Amendment signed by the Owner 
and the Bidder and approved by the Administrator2, but no claim 
for additional compensation for any such change or addition will be 
considered unless the Bidder shall have made a written request 
therefor to the Owner prior to the commencement of work in 
connection with such change or addition.
---------------------------------------------------------------------------

    \1\As long as the total price of this contract including all 
amendments is less than 120 percent of the original contract price 
as stated in the acceptance hereto, amendments executed on REA Form 
238 are not subject to the approval of the Administrator. Whenever 
an amendment to this contract causes the total amended contract to 
exceed 120 percent of the original contract price, that amendment 
and all subsequent amendments to this contract shall be made subject 
to the approval of the Administrator.
    \2\See Footnote 1.
---------------------------------------------------------------------------

    (e) The Bidder will not perform any work hereunder on Sundays 
unless there is urgent need for such Sunday work and the Owner 
consents thereto in writing. The time for completion specified in 
subsection (a) of this Section 1 shall not be affected in any way by 
inclusion of this subsection nor by the Owner's consent or lack of 
consent to Sunday work hereunder.

Section 2.--Environmental Protection

    The Bidder shall perform work in such a manner as to maximize 
preservation of beauty, conservation of natural resources, and 
minimize marring and scarring of the landscape and silting of 
streams. There should be no deposition of trash in streams or 
waterways. Herbicides, other chemicals or their containers should 
not be deposited in or near streams, waterways or pastures. The 
Bidder will be required to follow, under the general direction of 
the engineer, the criteria relating to environmental protection as 
specified herein by the engineer.

Section 3.--Supervision and Inspection

    (a) The Bidder shall cause the work on the Project to receive 
constant supervision by a competent superintendent (hereinafter 
called the ``Superintendent'') who shall be present at all times 
during working hours where work is being carried on. The Bidder 
shall also employ in connection with the Project, capable, 
experienced and reliable foremen and such skilled workmen as may be 
required for the various classes of work to be performed. Directions 
and instructions given to the Superintendent shall be binding upon 
the Bidder.
    (b) The Owner reserves the right to require the removal from the 
Project of any employee of the Bidder if in the judgment of the 
Owner such removal shall be necessary in order to protect the 
interest of the Owner. The Owner or the Supervisor, if any, shall 
have the right to require the Bidder to increase the number of its 
employees and to increase or change the amount or kind of tools and 
equipment if at any time the progress of the work shall be 
unsatisfactory to the Owner or Supervisor; but the failure of the 
Owner or Supervisor to give any such directions shall not relieve 
the Bidder of its obligations to complete the work within the time 
and in the manner specified in this proposal.
    (c) The manner of carrying out the Project, and all materials 
and equipment used therein, shall be subject to the inspection, 
tests and approval of the Owner and the Administrator, and the 
Bidder shall furnish all information required by the Owner or by the 
Administrator concerning the nature or source of any materials 
incorporated or to be incorporated in the Project. The Owner and the 
Administrator shall have the right to inspect all payrolls, invoices 
of materials, and other data and records of the Bidder and of any 
subcontractor, relevant to the Project. The Bidder shall provide all 
reasonable facilities necessary for such inspection and tests and 
shall maintain an office at the site of the Project, with telephone 
service where obtainable and at least one office employee to whom 
directions and instructions of the Owner may be delivered. Delivery 
of such directions or instructions in writing to the employee of the 
Bidder at such office shall constitute delivery to the Bidder. The 
Bidder shall have an authorized agent accompany the Engineer when 
final inspection is made and, if requested by the Owner, when any 
other inspection is made.
    (d) In the event that the Owner, or the Administrator, shall 
determine that the work contains or may contain numerous defects, it 
shall be the duty of the Bidder and the Bidder's Surety or Sureties, 
if any, to have an inspection made by an engineer approved by the 
Owner and the Administrator for the purpose of determining the exact 
nature, extent and location of such defects.
    (e) The Engineer may recommend to the Owner that the Bidder 
suspend the work wholly or in part for such period or periods as the 
Engineer may deem necessary due to unsuitable weather or such other 
conditions as are considered unfavorable for the satisfactory 
prosecution of the work or because of the failure of the Bidder to 
comply with any of the provisions of the Contract: Provided, 
however, that the Bidder shall not suspend work pursuant to this 
provision without written authority from the Owner to do so. The 
time of completion hereinabove set forth shall be increased by the 
number of days of any such suspension, except when such suspension 
is due to the failure of the Bidder to comply with any of the 
provisions of this Contract. In the event that work is suspended by 
the Bidder with the consent of the Owner, the Bidder before resuming 
work shall give the Owner at least twenty-four (24) hours notice 
thereof in writing.

Section 4.--Unsuitable Workmanship

    The acceptance of any workmanship by the Owner or the Engineer 
shall not preclude the subsequent rejection thereof if such 
workmanship shall be found to be unsuitable. Workmanship found 
unsuitable before final acceptance of the work shall be remedied, by 
and at the expense of the Bidder. The Bidder shall not be entitled 
to any payment hereunder so long as any unsuitable workmanship in 
respect to the Project, of which the Bidder shall have had notice, 
shall not have been remedied.

ARTICLE III--PAYMENTS AND RELEASE OF LIENS

Section 1.--Payments to Bidder

    (a) Within the first fifteen (15) days of each calendar month, 
the Owner shall make partial payment to the Bidder for work 
accomplished during the preceding calendar month on the basis of 
completed rights-of-way clearing units furnished and certified to by 
the Bidder, recommended by the Engineer and approved by the Owner 
solely for the purposes of payment: Provided, however, that such 
approval shall not be deemed approval of the workmanship or 
materials. Only ninety percent (90%) of each such estimate shall be 
paid by the Owner to the Bidder prior to Completion of the Project: 
Provided, however, that at any time after work, which, in the sole 
determination of the Engineer, amounts to fifty percent (50%) of the 
maximum contract price has been completed, the Owner may elect, in 
lieu of paying ninety percent (90%) of each such subsequent 
estimate, to pay each such subsequent estimate in full. Upon 
completion by the Bidder of the Project, the Engineer will prepare a 
Final Inventory of the Project showing the total number and 
character of rights-of-way clearing units and, after checking such 
inventory with the Bidder, will certify it to the Owner, together 
with a certificate of the total cost of the construction performed. 
Upon the approval of such certificates by the Owner and the 
Administrator, the Owner shall make payment to the Bidder of all 
amounts to which the Bidder shall be entitled thereunder which shall 
not have been paid: Provided, however, that such final payments 
shall be made not later than ninety (90) days after the date of 
Completion of Construction of the Project, as specified in the 
Certificate of Completion, unless withheld because of the fault of 
the Bidder.
    (b) The Bidder shall be paid on the basis of the number of 
rights-of-way clearing units actually completed at the direction of 
the Owner shown by the inventory based on the staking sheets or 
structure lists; Provided, however, that the total cost shall not 
exceed the maximum contract price for the construction of the 
Project as set forth in the Acceptance, unless such excess shall 
have been approved in writing by the Administrator.
    (c) Notwithstanding the provisions of Section 1(a) above, the 
Bidder may, by giving written notice thereof to the Owner elect to 
receive payment in full for any Section of the Project upon:
    (1) Completion of such Section as certified by the Engineer and 
approved by the Owner and the Administrator;
    (2) Submission to the Owner and the Administrator of the 
releases of lien and the certificate referred to in Section 2 
hereof;
    (3) Approval by the Owner and the Administrator of the inventory 
in respect of such Section; and
    (4) Submission to the Owner and the Administrator of the consent 
in writing by the Surety or Sureties, if any, on the Contractor's 
Bond to payment in full for such Section prior to Completion of 
Project.
    If no Sections are designated in Article II, Section 1(c), the 
term ``Section'' shall mean for purposes of this subsection (a) and 
Article IV, Section 3(b) only, a part of the Project as designated 
by the Owner which represents at least twenty-five percent (25%) of 
the maximum Contract price as stated in Article III, Section 1.
    (d) Interest at the rate of ________ percent3 (________%) 
per annum shall be paid by the Owner to the Bidder on all unpaid 
balances due on monthly estimates, commencing fifteen (15) days 
after the due date; provided the delay in payment beyond the due 
date is not caused by any condition within the control of the 
Bidder. The due date for purposes of such monthly payment shall be 
the fifteenth day of each calendar month provided: (1) The Bidder on 
or before the fifth day of such month shall have submitted its 
certification of rights-of-way clearing units completed during the 
preceding month and (2) the Owner on or before the fifteenth day of 
such month shall have approved such certification. If, for reasons 
not due to the Bidder's fault, such approval shall not have been 
given on or before the fifteenth day of such month, the due date for 
purposes of this subsection (d) shall be the fifteenth day of such 
month notwithstanding the absence of the approval of the 
certification.
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    \3\The Owner shall insert a rate equal to the lowest ``Prime 
Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued.
---------------------------------------------------------------------------

    (e) Interest at the rate of ________ percent4 (________%) 
per annum shall be paid by the Owner to the Bidder on the final 
payment for the Project or any completed Section thereof, commencing 
fifteen (15) days after the due date. The due date for purposes of 
such final payment shall be the date of approval by the 
Administrator of all of the documents requiring such approval, as a 
condition precedent to the making of final payment, or ninety (90) 
days after the date of Completion of Construction of the Project, as 
specified in the Certificate of Completion, whichever date is 
earlier.
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    \4\See Footnote 3.
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    (f) No payment shall be due while the Bidder is in default in 
respect of any of the provisions of this Contract and the Owner may 
withhold from the Bidder the amount of any claim by a third party 
against either the Bidder or the Owner based upon an alleged failure 
of the Bidder to perform the work hereunder in accordance with the 
provisions of this Contract.

Section 2.--Release of Liens and Certificate of Contractor

    (See sample REA Form 224, Waiver and Release of Lien and sample 
REA Form 231, Certificate of Contractor.) Upon the Completion of 
Clearing by the Bidder (or any Section thereof if the Bidder shall 
elect to receive payment in full for any section when completed as 
provided above) but prior to final payment to the Bidder the Bidder 
shall deliver to the Owner, in duplicate, releases of all liens and 
of rights to claim any lien, in the form attached hereto from all 
manufacturers, materialmen, and subcontractors furnishing services 
or materials for the Project or such Section and a certificate in 
the form attached hereto to the effect that all labor used on or for 
the Project or such Section has been paid and that all such releases 
have been submitted to the Owner for approval.

Section 3.--Payments to Subcontractors

    The Bidder shall pay each subcontractor, if any, within five (5) 
days after receipt of any payment from the Owner, the amount thereof 
allowed the Bidder for and on account of work performed by each 
subcontractor.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE BIDDER

Section 1.--Protection to Persons and Property

    The Bidder shall at all times take all reasonable precautions 
for the safety of employees on the work and of the public, and shall 
comply with all applicable provisions of Federal, State, and 
Municipal safety laws and building and construction codes, as well 
as the safety rules and regulations of the Owner. All machinery and 
equipment and other physical hazards shall be guarded in accordance 
with the ``Manual of Accident Prevention in Construction'' of the 
Associated General Contractors of America unless such instructions 
are incompatible with Federal, State, or Municipal laws or 
regulations.
    The following provisions shall not limit the generality of the 
above requirements:
    (a) The Bidder shall at no time and under no circumstances cause 
or permit any employee of the Bidder to perform any work upon 
energized lines, or upon poles carrying energized lines, unless 
otherwise specified in the Notice and Instructions to Bidders.
    (b) The Bidder shall so conduct the construction of the Project 
as to cause the least possible obstruction of Public highways.
    (c) The Bidder shall provide and maintain all such guard lights 
and other protection for the public as may be required by applicable 
statutes, ordinances and regulations or by local conditions.
    (d) The Bidder shall do all things necessary or expedient to 
properly protect any and all parallel, converging and intersecting 
lines, joint line poles, highways and any and all property of others 
from damage, and in the event that any such parallel, converging and 
intersecting lines, joint line poles, highways or other property are 
damaged in the course of the construction of the Project, the Bidder 
shall at its own expense restore any or all of such damaged property 
immediately to as good a state as before such damage occurred.
    (e) Where the right-of-way of the Project traverses cultivated 
lands, the Bidder shall limit the movement of its crews and 
equipment so as to cause as little damage as possible to crops, 
orchards or property and shall endeavor to avoid marring the lands. 
All fences which are necessarily opened or moved during the 
construction of the Project shall be replaced in as good condition 
as they were found and precautions shall be taken to prevent the 
escape of livestock. The Bidder shall not be responsible for loss of 
or damage to crops, orchards or property (other than livestock) on 
the right-of-way necessarily incident to the construction of the 
Project and not caused by negligence or inefficient operation of the 
Bidder. The Bidder shall be responsible for all other loss of or 
damage to crops, orchards, or property, whether on or off the right-
of-way, and for all loss of or damage to livestock caused by the 
construction of the Project. The right-of-way for purposes of this 
said section shall consist of area extending ________ feet on both 
sides of the center line of the poles along the route of the Project 
lines, plus such area reasonably required by the Bidder for access 
to the route of the Project lines from Public roads to carry on 
construction activities.
    (f) The Project, from the commencement of work to completion, or 
to such earlier date or dates when the Owner may take possession and 
control in whole or in part as hereinafter provided shall be under 
the charge and control in whole or in part as hereinafter provided 
shall be under the charge and control of the Bidder and during such 
period of control by the Bidder all risks in connection with the 
construction of the Project and the materials to be used therein 
shall be borne by the Bidder. The Bidder shall make good and fully 
repair all injuries and damages to the Project or any portion 
thereof under the control of the Bidder by reason of any Act of God 
or other casualty or cause whether or not the same shall have 
occurred by reason of the Bidder's negligence.
    (i) To the maximum extent permitted by law, Bidder shall defend, 
indemnify, and hold harmless Owner and Owner's directors, officers, 
and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Bidder's employees) and loss, damage to or destruction of 
Owner's property or the property of any other person or entity 
(including but not limited to Bidder's property) in any manner 
arising out of or connected with the Contract, or the materials or 
equipment supplied or services performed by Bidder, its 
subcontractors and suppliers of any tier. But nothing herein shall 
be construed as making Bidder liable for any injury, death, loss, 
damage, or destruction caused by the sole negligence of Owner.
    (ii) To the maximum extent permitted by law, Bidder shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Bidder, its subcontractors and suppliers of 
any tier, and from all losses, demands, and causes of action arising 
out of any such lien or claim. Bidder shall promptly discharge or 
remove any such lien or claim by bonding, payment, or otherwise and 
shall notify Owner promptly when it has done so. If Bidder does not 
cause such lien or claim to be discharged or released by payment, 
bonding, or otherwise, Owner shall have the right (but shall not be 
obligated) to pay all sums necessary to obtain any such discharge or 
release and to deduct all amounts so paid from the amount due 
Bidder.
    (iii) Bidder shall provide to Owner's satisfaction evidence of 
Bidder's ability to comply with the indemnification provisions of 
subparagraphs i and ii above, which evidence may include but may not 
be limited to a bond or liability insurance policy obtained for this 
purpose through a licensed surety or insurance company.
    (g) Any and all excess earth, rock, debris, underbrush and other 
useless material shall be removed by the Bidder from the site of the 
Project as rapidly as practicable as the work progresses. There 
should be no disposition of trash in streams or waterways. 
Herbicides, other chemicals or their containers should not be 
deposited in or near streams, waterways or pastures.
    (h) Upon violation by the Bidder of any of the provisions of 
this section, after written notice of such violation given to the 
Bidder by the Engineer or the Owner, the Bidder shall immediately 
correct such violation. Upon failure of the Bidder so to do the 
Owner may correct such violation at the Bidder's expense: Provided, 
however, that the Owner may, if it deems it necessary or advisable, 
correct such violation at the Bidder's expense without such prior 
notice to the Bidder.
    (i) The Bidder shall submit to the Owner monthly reports in 
duplicate of all accidents, giving such data as may be prescribed by 
the Owner.
    (j) The Bidder shall not proceed with the cutting of trees or 
clearing of right-of-way without written notification from the Owner 
that proper authorization has been received from the owner of the 
property, and the Bidder shall promptly notify the Owner whenever 
any landowner objects to the trimming or felling of any trees or the 
performance of any other work on its land in connection with the 
Project and shall obtain the consent in writing of the Owner before 
proceeding in any such case.

Section 2. Insurance

    The Bidder shall take out and maintain throughout the contract 
period insurance of the following types and minimum amounts:
    (a) Workers' compensation and employers' liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to the workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    (b) Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    (c) Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million per person and $1 million per occurrence, and property 
damage limits of $1 million for each occurrence. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    The Owner shall have the right at any time to require public 
liability insurance and property damage liability insurance greater 
than those required in subsection ``b'' and ``c'' of this Section. 
In any such event, the additional premium or premiums payable solely 
as the result of such additional insurance shall be added to the 
Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.

Section 3.--Delivery of Possession and Control to Owner

    (a) Upon written request of the Owner the Bidder shall deliver 
to the Owner full possession and control of any portion of the 
Project provided the Bidder shall have been paid at least ninety 
percent (90%) of the cost of construction of such portion. Upon such 
delivery of the possession and control of any portion of the Project 
to the Owner, the risk and obligations of the Bidder as set forth in 
Article IV, Section 1 (f) hereof with respect to such portion of the 
Project so delivered to the Owner shall be terminated: Provided, 
however, that nothing herein contained shall relieve the Bidder of 
any liability with respect to defective materials and workmanship as 
contained in Article II, Section 4 hereof.
    (b) Where the construction of a Section as hereinbefore defined 
in Article II, Section 1 (c) and Article III, Section 1 (c) shall 
have been completed by the Bidder, the Owner agrees, after receipt 
of a written request from the Bidder, to accept delivery of 
possession and control of such Section upon the issuance by the 
Engineer of a written statement that the Section has been inspected 
and found acceptable by the Engineer. Upon such delivery of the 
possession and control of any such Section to the Owner, the risk 
and obligations of the Bidder as set forth in Article IV, Section 1 
(f) hereof with respect to such Section so delivered to the Owner 
shall be terminated; Provided, however, that nothing herein 
contained shall relieve the Bidder of any liability with respect to 
defective materials or workmanship as contained in Article II, 
Section 4 hereof.
    Section 4. Assignment of Guarantees. All guarantees of materials 
and workmanship running in favor of the Bidder shall be transferred 
and assigned to the Owner prior to the time the Bidder receives 
final payment.

ARTICLE V--REMEDIES

    Section 1. Completion of Bidder's Default. If default shall be 
made by the Bidder or by any subcontractor in the performance of any 
of the terms of this Proposal, the Owner, without in any manner 
limiting its legal and equitable remedies in the circumstances, may 
serve upon the Bidder and the Surety or Sureties, if any, upon the 
Contractor's Bond or Bonds a written notice requiring the Bidder to 
cause such default to be corrected forthwith. Unless within twenty 
(20) days after the service of such notice upon the Bidder such 
default shall be corrected or arrangements for the correction 
thereof satisfactory to both the Owner and the Administrator shall 
be made by the Bidder or its Surety or Sureties if any, the Owner 
may take over the Project and prosecute the same to completion by 
contract or otherwise for the account and at the expense of the 
Bidder, and the Bidder and its Surety or Sureties if any, shall be 
liable to the Owner for any cost or expense in excess of the 
contract price occasioned thereby. In such event the Owner may take 
possession, of and utilize, in completing the construction of the 
Project, any materials, tools, supplies, equipment, appliances, and 
plant belonging to the Bidder or any of its subcontractors, which 
may be situated at the site of the Project. The Owner in such 
contingency may exercise any rights, claims or demands which the 
Bidder may have against third persons in connection with this 
contract and for such purpose the Bidder does hereby assign, 
transfer and set over unto the Owner all such rights, claims and 
demands.
    Section 2. Liquidated Damages. The time of the Completion of the 
Project is of the essence of the Contract. Should the Bidder 
neglect, refuse or fail to complete the Project within the time 
herein agreed upon, after giving effect to extensions of time, if 
any, herein provided, then, in that event and in view of the 
difficulty of estimating with exactness damages caused by such 
delay, the Owner shall have the right to deduct from and retain out 
of such moneys which may be then due, or which may become due and 
payable to the Bidder the sum of ________ dollars (________) per day 
for each and every day that such construction is delayed in its 
completion beyond the specified time, as liquidated damages and not 
as a penalty; if the amount due and to become due from the Owner to 
the Bidder is insufficient to pay in full any such liquidated 
damages, the Bidder shall pay to the Owner the amount necessary to 
effect such payment in full; Provided, however, that the Owner shall 
promptly notify the Bidder in writing of the manner in which the 
amount retained, deducted or claimed as liquidated damages was 
computed.
    Section 3. Cumulative Remedies. Every right or remedy herein 
conferred upon or reserved to the Owner or the Government or the 
Administrator shall be cumulative, shall be in addition to every 
right and remedy now or hereafter existing at law or in equity or by 
statute and the pursuit of any right or remedy shall not be 
construed as an election: Provided, however, that the provision of 
Section 2 of this Article shall be the exclusive measure of damages 
for failure by the Bidder to complete the Project within the time 
herein agreed upon.

ARTICLE VI--MISCELLANEOUS

    Section 1. Definitions.
    (a) The term Administrator shall mean the Administrator of the 
Rural Electrification Administration of the United States of America 
and his duly authorized representatives or any other person in whom 
or authority in which may be vested the duties and functions which 
the Administrator is now authorized by law to perform.
    (b) The term Engineer shall mean the engineer employed by the 
Owner with the approval of the Administrator, to provide engineering 
services for the Project and said Engineer's duly authorized 
assistants and representatives.
    (c) The term Supervisor shall mean the person, if any, appointed 
by the Administrator as the representative of the Government under 
the provisions of the Loan Contract providing for such appointment 
in special cases. The term is limited to such special representative 
of the Government, if any, who is responsible exclusively to the 
Administrator and does not refer to the Manager or any other person 
employed by the Owner and responsible to it.
    (d) The term Completion of Clearing shall mean full performance 
by the Bidder of the Bidder's obligations under the Contract and all 
amendments and revisions thereof except the Bidder's obligations in 
respect of (1) Releases of liens and Certificate of Contractor under 
Article III, Section 2 hereof, (2) the inventory referred to in 
Article III, Section 1 hereof, and (3) other final documents. The 
term ``Completion of the Project'' shall mean full performance by 
the Bidder of the Bidder's obligations under the Contract and all 
amendments and revisions thereof. The Certificate of Completion 
signed by the Engineer and approved in writing by the Owner and the 
Administrator, shall be the sole and conclusive evidence as to the 
date of Completion of Clearing.
    Section 2. Patent Infringement. The Bidder shall save harmless 
and indemnity the Owner from any and all claims, suits and 
proceedings for the infringement of any patent or patents covering 
any materials or equipment used in construction of the Project.
    Section 3. Permits for Explosives. All permits necessary for the 
handling or use of dynamite or other explosives in connection with 
the construction of the Project shall be obtained by and at the 
expense of the Bidder.
    Section 4. Compliance with Statutes and Regulations. The Bidder 
shall comply with all applicable statutes, ordinances, rules, and 
regulations pertaining to the work. The Bidder acknowledges that it 
is familiar with the Rural Electrification Act of 1936, as amended, 
the so-called ``Kick-Back'' Statute (48 Stat. 948), and regulations 
issued pursuant thereto, and 18 U.S.C. Sections 286, 287 and 1001 as 
amended. The Bidder understands that the obligations of the parties 
hereunder are subject to the applicable regulations and orders of 
Governmental Agencies leaving jurisdiction in the premises.
    Section 5. Equal Opportunity Provisions.
    (a) Bidder's Representations.
    The Bidder represents that:
    It has ____, does not have ____, 100 or more employees, and if 
it has, that it has ____, has not ____, furnished the Equal 
Employment Opportunity-Employers Information Report EEO-1, Standard 
Form 100, required of employers with 100 or more employees pursuant 
to Executive Order 11246 and title VII of the Civil Rights Act of 
1964.
    The Bidder agrees that it will obtain, prior to the award of any 
subcontract for more than $10,000 hereunder to a subcontractor with 
100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Form 100.
    The Bidder agrees that if it has 100 or more employees and has 
not submitted a report on Standard Form 100 for the current 
reporting year and that if this contract will amount to more than 
$10,000, the Bidder will file such report, as required by law, and 
notify the Owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    (b) Equal Opportunity Clause. During the performance of this 
contract, the Bidder agrees as follows:
    (1) The Bidder will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex, or 
national origin. The Bidder will take affirmative action to ensure 
that applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex, or 
national origin. Such action shall include, but not be limited to, 
the following: Employment, upgrading, demotions or transfer; 
recruitment or recruitment advertising; layoff or termination; rates 
of pay or other forms of compensation; and selection for training, 
including apprenticeship. The Bidder agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided setting forth the provisions of this Equal 
Opportunity Clause.
    (2) The Bidder will, in all solicitations or advertisements for 
employees placed by or on behalf of the Bidder, state that all 
qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex, or national origin.
    (3) The Bidder will send to each labor union or representative 
of workers, with which it has a collective bargaining agreement or 
other contract or understanding, a notice to be provided advising 
the said labor union or worker's representatives of the Bidder's 
commitments under this section, and shall post copies of the notice 
in conspicuous places available to employees and applicants for 
employment.
    (4) The Bidder will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and of the rules, regulations, 
and relevant orders of the Secretary of Labor.
    (5) The Bidder will furnish all information and reports required 
by Executive Order 11246 of September 24, 1965, and by rules, 
regulations, and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records, and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations, and orders.
    (6) In the event of the Bidder's noncompliance with the Equal 
Opportunity Clause of this Contract or with any of the said rules, 
regulations, or orders, this Contract may be cancelled, terminated, 
or suspended in whole or in part, and the Bidder may be declared 
ineligible for further Government contracts of federally assisted 
construction contracts in accordance with procedures authorized in 
Executive Order 11246 of September 24, 1965, and such other 
sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24, 1965, or by rule, regulation, 
or order of the Secretary of Labor, or as provided by law.
    (7) The Bidder will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations, or order of the Secretary of Labor issued pursuant to 
Section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Bidder will take such action with respect to any subcontract or 
purchase order as the administering agency may direct as a means of 
enforcing such provisions including sanctions for noncompliance: 
Provided, however, that in the event a Bidder becomes involved in, 
or is threatened with, litigation with a subcontractor or vendor as 
a result of such direction by the administering agency, the Bidder 
may request the United States to enter into such litigation to 
protect the interests of the United States.
    (c) Certificate of Nonsegregated Facilities. The Bidder 
certifies that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Bidder certifies further that it will not maintain or provide for 
its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Bidder agrees that a breach of this 
certification is a violation of the Equal Opportunity Clause in this 
contract. As used in this certification, the term ``segregated 
facilities'' means any waiting rooms, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Bidder agrees that (except where it has obtained 
identical certifications from proposed subcontractors for specific 
time periods) it will obtain identical certifications from proposed 
subcontractors prior to the award of subcontracts exceeding $10,000 
which are not exempt from the provisions of the Equal Opportunity 
Clause, and that it will retain such certifications in its files.
    Section 6. Franchises and Rights-of-Way. The Bidder shall be 
under no obligation to obtain or assist in obtaining: Any 
franchises, authorizations, permits or approvals required to be 
obtained by the Owner from Federal, State, County, Municipal or 
other authorities; any rights-of-way over private lands; or any 
agreements between the Owner and third parties with respect to the 
construction and operation of the Project.
    Section 7. Nonassignment of Contract. The Bidder shall perform 
directly and without subcontracting not less than twenty-five per 
centum (25%) of the construction of the Project, to be calculated on 
the basis of the total contract price. The Bidder shall not assign 
the contract effected by an acceptance of this proposal or any 
interest in any funds that may be due or become due hereunder or 
enter into contract with any person, firm or corporation for the 
performance of the Bidder's obligations hereunder or any part 
thereof, without the approval in writing of the Owner and of the 
Surety or Sureties, if any, on any bond furnished by the Bidder for 
the faithful performance of the Bidder's obligation hereunder. If 
the Bidder, with the consent of the Owner and any Surety or 
Sureties, if any, on the Contractor's Bond or Bonds, shall enter 
into a subcontract with any subcontractor for the performance of any 
part of this contract, the Bidder shall be as fully responsible to 
the Owner and the Government for the acts and omissions of such 
subcontractor and of persons employed by such subcontractor as the 
Bidder would be for its own acts and omissions and those of persons 
directly employed by it.
    Section 8. Extension to Successors and Assigns. Each and all of 
the covenants and Agreements herein contained shall extend to and be 
binding upon the successors and assigns of the parties hereto.
    Section 9. Contractor. Upon acceptance of this Proposal, the 
successful Bidder shall be the Contractor and all references in the 
Proposal to the Bidder shall apply to the Contractor.
    Section 10. Approval by the Administrator. No acceptance of this 
Proposal shall become effective until approval in writing of the 
Administrator; Provided, however that no obligations shall arise 
hereunder unless such approval is given within sixty (60) days from 
the date of acceptance by the Owner.

________ (Bidder)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
Date ______

    The Proposal must be signed with the full name of the Bidder. If 
the Bidder is a partnership, the Proposal must be signed in the 
partnership name by a partner. If the Bidder is a corporation, the 
Proposal must be signed in the Corporate name by a duly authorized 
officer and the corporate seal affixed and attested by the Secretary 
of the Corporation.

Description of Units

    TM-12. The unit is 1,000 feet in length and ______ (______) feet 
in width (to be measured ______ (______) feet on one side of pole 
line or centerline of structures) of actual clearing of right-of-
way. This includes clearing of underbrush, tree removal, and such 
tree trimming as is required so that the right-of-way, except for 
tree stumps which shall not exceed ______ in height, shall be clear 
from the ground up on one side of the line of poles carrying 
conductors (See Detail A, Drawing TM-12-2A.) The length of actual 
clearing shall be measured in a straight line parallel to the 
horizontal line between poles or centerline of structures and across 
the maximum dimension of foliage cleared projected to the ground 
line (See Detail B, Drawing TM-12-2A.) All trees and underbrush 
across the width of the right-of-way shall be considered to be 
grouped together as a single length in measuring the total length of 
clearing (See Detail C, Drawing TM-12-2A.) Spaces along the right-
of-way in which no trees are to be removed or trimmed or underbrush 
cleared shall be omitted from the total measurement. All lengths 
thus arrived at, added together and divided by 1,000 shall give the 
number of TM-12 units of clearing. The Bidder shall not remove or 
trim shade, fruit, or ornamental trees unless so directed by the 
Engineer in writing.
    TM-12 (1). This unit is identical with TM-12, except the full 
width of the right-of-way to be cleared shall be ______ feet wide 
(to be measured ______ (______) feet on each side of the pole line 
or centerline of structures) (See Detail D, Drawing TM-12-2A.)
    TM-13. The unit, for purpose of quoting, is 1,000 feet in length 
of clearing off the right-of-way. The Engineer will select those 
trees off the right-of-way that he deems to be a hazard to the line 
and will designate them to the Bidder in writing as danger trees. 
When so designated, the Bidder shall remove or top such trees at his 
option except that the Bidder shall trim and not remove shade, fruit 
or ornamental trees unless otherwise directed by the Engineer in 
writing (See Drawings TM-12-2A and TM-13 for examples of danger 
trees.)
    The measurement of length of right-of-way to be cleared shall be 
considered as a straight line parallel to the horizontal line 
between poles or centerline of structures, such measurement of 
length to be based on maximum dimension of foliage (not trunk) 
projected to the ground line (See Details E, F, G and H, Drawing TM-
12-2A.) Dead trees having no foliage shall be measured across the 
maximum dimension and multiplied by two. (See Detail F, Drawing TM-
12-2A.) Each tree so removed shall be added together to determine 
the total length of clearing. All lengths thus arrived at, added 
together and divided by 1,000 shall give the number of TM-13 units 
(Example: Details E, F, G and H, Drawing TM-12-2A, total 0.10 of a 
TM-13 unit.)
    TMC-12, TMC-12 (1). These units are identical to the respective 
TM units except that chemical treatment of stumps is required in 
addition to the clearing of underbrush, tree removal and tree 
trimming.
    TM-14. The unit is 1,000 feet in length and ______ (______) feet 
in width (to be measured ______ (______) feet on one side of right-
of-way center line) of actual clearing of right-of-way. Trees and 
underbrush should be cleared from the ground up within 10 feet of 
any structure location. The Engineer will mark the trees and brush 
to be cleared to provide ``undulating'' boundaries. Low growing 
trees and brush are to be left in the right-of-way to the extent it 
will not be hazardous to the line or will not interfere with the 
service road.
    The length of actual clearing shall be measured in a straight 
line parallel to the horizontal line between poles or center line of 
structures and across the maximum dimension of foliage cleared 
projected to the ground line (See Detail B, Drawing TM-12-2A.)
    All trees and underbrush cleared across the right-of-way shall 
be considered to be grouped together as a single length in measuring 
the total length of clearing (See Detail C, Drawing TM-12-2A.) 
Spaces along the right-of-way in which no trees are to be removed or 
trimmed or underbrush cleared shall be omitted from the total 
measurement.
    TM-14 (1). This unit is identical with TM-14 except the full 
width of the right-of-way to be cleared shall be ______ (______) 
feet wide (See Detail D, Drawing TM-12-2A.)
    TM-15. The unit is 1,000 feet in length and ______ (______) feet 
in width (to be measured ______ (______) feet on one side of the 
right-of way center line) of actual clearing of the right-of-way.
    Trees and underbrush should be cleared from ground up within 10 
feet of any structure location. The Engineer will mark the trees and 
brush to be cleared to provide a ``feathered'' appearance in the 
right-of-way. Low growing trees and brush are to be left in the 
right-of-way to the extent it will not be hazardous to the line or 
will not interfere with the service road.
    The length of actual clearing shall be measured in a straight 
line parallel to the horizontal line between poles or center line of 
structures and across the maximum dimension of foliage cleared 
projected to ground line (See Detail B, Drawing TM-12-2A). All trees 
and underbrush cleared across the right-of-way shall be considered 
to be grouped together as a single length in measuring the total 
length of clearing (See Detail C, Drawing TM-12-2A).
    Spaces along the right-of-way in which no trees are to be 
removed or trimmed or underbrush cleared shall be omitted from the 
total measurement.
    TM-15 (1). This unit is identical to TM-15 except the full width 
of the right-of-way to be cleared shall be ______ (______) feet wide 
(See Detail D, Drawing TM-12-2A).
    Additional Requirements. (When Specifying TM units denote type 
of disposal A or B).
    A. Trees, brush, branches and refuse shall, without delay, be 
disposed of by such of the following methods as an Engineer will 
direct (Engineer to strike out methods not to be used).
    1. Burned.
    2. Piled on one side of right-of-way.
    3. Roller chopped and left on right-of-way in such a manner as 
not to obstruct roads, ditches, drains, etc.
    4. Other (Describe) ______.
    B. Trees that are felled shall be cut to commercial wood 
lengths, stacked neatly, and left on the right-of-way for the 
landowner. Commercial wood length means the length designated by the 
Engineer but in no case shall it be required to be less than ______ 
(______) feet. Brush, branches and refuse shall, without delay, be 
disposed of by such of the following methods as the Engineer will 
direct (Engineer to strike out methods not to be used).
    1. Burned.
    2. Piled on one side of right-of-way.
    3. Roller chopped and left on right-of-way in such a manner as 
not to obstruct roads, ditches, drains, etc.
    4. Other (Describe) ______. 

                    Transmission Right-of-Way Units                     
------------------------------------------------------------------------
     Unit No.        No. of units        Unit price      Extended price 
------------------------------------------------------------------------
                                                                        
                  ------------------------------------------------------
Total                                                                   
------------------------------------------------------------------------

Acceptance

    Subject to the approval of the Administrator, the Owner hereby 
accepts the foregoing Proposal of the Bidder, ______ for the 
construction of the following:
    The total contract price is $ ______

______ Owner
By ______ President
______ Secretary
______ Date of Contract

Specifications

    In preparing the right-of-way, trees shall be removed, 
underbrush cleared, and trees trimmed so that the right-of-way shall 
be clear from the ground up as specified in the Proposal. Trees 
fronting each side of the right-of-way shall be trimmed 
symmetrically unless otherwise directed by the Engineer. Dead trees 
beyond the right-of-way which would strike the line in falling shall 
be removed. Leaning trees beyond the right-of-way which would strike 
the line in falling and which would require topping if not removed 
may be removed or topped at the direction of the Engineer.
    Where TMC-12, TMC-12-(1) units are specified, the right-of-way 
shall be cleared in accordance with the instructions in the 
preceding paragraph and in addition, all stumps one-half inch in 
diameter and larger shall be sprayed as specified by the Engineer.

[End of clause]


Sec. 1726.323  Certificate (Buy America), REA Form 213.

    The closeout form in this section shall be used when required by 
this part.

Certificate

    With respect to compliance with the second paragraph of the 
Rural Electrification Act of 1938, being Title IV of the Work Relief 
and Public Works Appropriation Act of 1938 (Public Resolution No. 
122, 75th Congress, approved June 21, 1938).

Rural Electrification Administration
    Project ______.

    The undersigned, being the ______\1\, in a certain contract No. 
______ dated ______, 19______, between the undersigned and 
______\2\, does hereby certify that in the performance of the said 
contract there have been used or furnished no unmanufactured 
articles, materials or supplies which have not been mined or 
produced in the United States, Mexico, or Canada and no manufactured 
articles, materials or supplies which have not been manufactured in 
the United States, Mexico, or Canada substantially all from 
articles, materials or supplies mined, produced or manufactured, as 
the case may be in the United States, Mexico, or Canada, except to 
the extent that compliance with the second paragraph of the Rural 
Electrification Act of 1938, being Title IV of the Work Relief and 
Public Works Appropriation Act of 1938 (Public Resolution No. 122, 
75th Congress, approved June 22, 1938) has been waived by the 
Administrator of the Rural Electrification Administration.

    \1\Insert ``Contractor,'' ``Subcontractor,'' ``Seller'' or 
``Materialman,'' as the case may be.
    \\Insert the name of the REA Borrower.
---------------------------------------------------------------------------

----------------------------------------------------------------------
By ______
Date ______, 19 ______

[End of clause]


Sec. 1726.324  Waiver and release of lien, REA Form 224.

    The closeout form in this section shall be used when required by 
this part.

Waiver and Release of Lien

    Whereas the undersigned, ______ (name of manufacturer, 
materialman or subcontractor) has furnished to ______ (name of 
contractor) the following: ______ (kind of material and services 
furnished) for use in the construction of a Project belonging to 
______ (name of borrower) and designated by the Rural 
Electrification Administration as ______ (REA project designation).
    Now, Therefore, the undersigned, ______ (name of manufacturer, 
materialman or subcontractor) for and in consideration of $______ 
and other good and valuable consideration, the receipt whereof is 
hereby acknowledged, do(es) hereby waive and release any and all 
liens, or right to or claim of lien, on the above described project 
and premises, under any law, common or statutory, on account of 
labor or materials, or both, heretofore or hereafter furnished by 
the undersigned to or for the account of said ______ (name of 
contractor) for said project.
    Given under my(our) hand(s) and seal(s) this ______ day of 
______, 19______.
    ______ Name of manufacturer, materialman or subcontractor
    By ______ President, vice president, partner or owner, or, if 
signed by other than one of the foregoing, accompanied by power of 
attorney signed by one of the foregoing in favor of the signer. (Use 
designation applicable.)

[End of clause]


Sec. 1726.325  Certificate of contractor, REA Form 231.

    The closeout form in this section shall be used when required by 
this part.

Certificate of Contractor

    ______ certifies that he is the ______ (Title of Office) of 
______ (Name of Contractor), the Contractor, in a Construction 
Contract No. ______ dated ______, 19______, entered into between the 
Contractor and ______ (Name of Borrower) the Owner, for the 
construction of a Project, which bears the Rural Electrification 
Administration Project Designation ______ and that he is authorized 
to and does make this certification on behalf of said Contractor in 
order to induce the Owner to make payment to the Contractor, in 
accordance with the provisions of said Construction Contract.
    Undersigned further says that all persons who have furnished 
labor in connection with said construction have been paid in full, 
that the names of manufacturers, materialmen and subcontractors that 
furnished material or services or both in connection with such 
construction and the kind or kinds of material or services or both 
so furnished are:

Name ______
Kind of Material and Service ______
and that the releases of liens executed by all such manufacturers, 
materialmen and subcontractors have been furnished the Owner.

Date ______
Signature ______

[End of clause]


Sec. 1726.326  Construction or equipment contract amendment, REA Form 
238.

    The amendment form in this section shall be used when required by 
this part.

Construction or Equipment Contract Amendment

Project Designation ______
Date ______
Amendment No. ______
Contract No. ______
Bond extension attached ____ Yes ____ No
Delivery or Completion Date: Original ______ As Amended ______

    Instructions: 1. The Architect-Engineer shall submit three (3) 
copies of this form for each contract which has been approved by 
REA, to the Owner. 2. The Owner will submit the three (3) copies of 
this form to REA for approval.
    Reasons for, and details and description of the amendment ______ 
(If additional space is needed, use reverse or separate sheet)
    A summary of the original contract price and amendments thereto, 
including this amendment, follows: (Amendments which decreased the 
price are preceded by a (-) minus sign).

Original Contract Price, $______
Amendment Number 1, $______
Amendment Number 2, $______
Amendment Number 3, $______
Amendment Number 4, $______
Amendment Number 5, $______
Amendment Number 6, $______
Amendment Number 7, $______
Amendment Number 8, $______
Amended Contract Price, $______

    This amendment, providing for an increase of $______ / decrease 
of $______ in the contract price is submitted pursuant to the 
provisions of said contract. (The Administrator of REA is hereby 
authorized to approve this amendment either in whole or in part and 
to delete such items as do not meet his approval). To the extent the 
items hereof are approved the contract shall be amended.

Accepted
______ Contractor

    By ______ President-Owner-Partner (Strike out inapplicable 
title. If signed by other than above, power of attorney should be 
attached or on file with REA.)

______ Date
______ Owner
By ______ President-Board of Directors
______ Date
Approved
______ Architect-engineer
______ Date 

------------------------------------------------------------------------
             Reasons for and                                            
 Item    Description of Contract       Labor or      Material or   Total
  No.      Amendment No. ______    Installation\1\  Equipment\1\        
------------------------------------------------------------------------
                                                                        
                                  --------------------------------------
        Net Total................                                       
------------------------------------------------------------------------
\1\Changes in Cost (decrease preceded by (-) minus sign.) To be filled  
  in when applicable.                                                   

[End of clause]


Sec. 1726.327  Material receipt, REA Form 251.

    The receipt form in this section shall be used when a Material 
Receipt is required by REA Form 764, 830, or 831.

Materials Receipt

    Instructions: Prepare three (3) copies. Forward original to 
Owner, one copy to Contractor and one copy to Engineer.

Date ______

----------------------------------------------------------------------------------------------------------------
                                        Description of    Manufacturer and                                      
     Item\1\            Quantity             Item          Catalog Number       Unit Price       Extended Price 
----------------------------------------------------------------------------------------------------------------
                                                                                                                
                  ----------------------------------------------------------------------------------------------
Total                                                                                                           
----------------------------------------------------------------------------------------------------------------
Notes: 1. Item corresponds with item in list of materials in construction drawings.                             

Received by ______
For:
______Contractor
______Owner

[End of clause]


Sec. 1726.328  Construction inventory (for labor and material 
contract), REA Form 254.

    The closeout form in this section shall be used when required by 
this part.

Construction Inventory (For Labor and Material Contract)

Date ______
Project Designation ______
Borrower ______
Engineer ______
Contractor ______

Amount Payable to Contractor

    A. Total Cost of Standard, New And Conversion Assembly Units 
Installed (Total No. 6, REA Form 254a) $______
    B. Cost To Remove ``I'' Units (Total No. 7, REA Form 254a) 
$______
    C. Amount To Be Credited To Contractor For Materials Removed 
From Existing Facilities And Returned (Total No. 14, REA Form 254b) 
$______

Subtotal $______
Deduct:

    D. Amount Chargeable To Contractor For Materials In Assembly 
Units Removed (Total No. 9, REA Form 254a) $______
    E. Net Amount Of Owner-furnished Materials (Total No. 24 REA 
Form 254c) $______
    F. Net Amount Due Contractor (In making final payment to 
Contractor, the net amount due the Contractor, as shown by this 
Certification, will be reduced by the sums, if any, due the Owner 
for liquidated damages, payment made to date, or other sums which 
the Owner has the right to retain under the terms of the Contract, 
and signature by all parties does not preclude the retention by the 
Owner of such amounts.) $______

Certificate of Engineer

    I certify that to the best of my knowledge and belief the 
attached final inventory correctly shows the total number and 
character of assembly units installed and removed by the Contractor 
and that the net amount of $______due the Contractor, as shown 
above, is true and correct.

Engineer______
By______
Date______

Acceptance by Owner

Owner______
By______ President
Date______

Acceptance by Contractor

Firm______
By______
Date______

Instructions

    (See REA Bulletin 1767B-3, Preparation and Use of REA Form 254, 
for additional instructions.)
    The Engineer will prepare 5 copies of REA Form 254 and 254a, 
also 5 copies of Forms 254b and 254c when applicable. Original and 1 
copy to be forwarded to REA, 1 copy to Contractor, 1 copy to Owner, 
and 1 copy to be retained by Engineer.
    Calculation of amount payable to Contractor will employ data 
taken from Nos. 1 through 25, REA Forms 254, 254a, 254b, 254c. The 
amounts to be inserted opposite Items A, B, C, D, and E on REA Form 
254 are indicated in the texts of those items. Nos. 1 through 17, 
Forms 254a and 254b: (Form 254b is required only when ``I'' removal 
units are included in the Contract.)

No.--Source of Information

1 and 2--From tabulation of staking sheets.1
---------------------------------------------------------------------------

    \1\Standard units will be listed first, followed by new units 
and conversion units , in that order, with all ``I'' removal units 
being listed last.
---------------------------------------------------------------------------

3 and 4--From Contract.
5--No. 3 plus No. 4.
6--No. 1 multiplied by No. 5.
7--No. 1 multiplied by No. 3 (for ``I'' units only).
8--From Table C of Contract.
9--No. 1 multiplied by No. 8 for ``I'' removal units only. (Table C 
relates solely to ``I'' units.)
10, 11, and 12--From Engineer's and Owner's records.
13--From Table D in Contract.
14--No. 12 multiplied by No. 13.
15--From Engineer's records. (Quantities shall be listed opposite 
the appropriate material items described in No. 11.)
16--From individual stock record card for each material item listed.
17--No. 15 multiplied by No. 16.
    Data shown on Form 254c to be presented under the following 
headings, as appropriate:
PART I--MATERIAL ITEMS INCLUDED IN LISTS SET FORTH IN CONSTRUCTION 
CONTRACT
PART II--OTHER MATERIAL ITEMS FURNISHED BY OWNER
Nos. 18 through 25: (Form 254c is required only when there are 
owner-furnished materials.)

No.--Source of Information

18 and 19--From Contract and Material Receipts.
20--From charge-out and credit tickets covering materials issued to 
and returned by the Contractor.2
---------------------------------------------------------------------------

    \2\The quantities shown in No. 20 should agree with Materials 
Receipts (REA Form 251) prepared in connection with the contact. The 
types of items of material and the quantity of any item of material 
listed under Part I of the tabulation should be limited to the type 
of items and should not exceed the quantity of any item of material 
specified in the construction contract in the ``List of Owner's 
Materials on Hand'' or the ``List of Materials Ordered by Owner But 
Not Delivered.'' Any additional items of material or excess 
quantities over the items specified in such lists are to be shown 
under Part II of the tabulation.
---------------------------------------------------------------------------

21--From average unit costs on charge-out and credit tickets 
relating to this construction, such costs in turn being taken from 
the average unit costs reflected by the stock record cards for the 
applicable period.
22--No. 20 multiplied by No. 21.
23--For Part I, from the unit prices specified in the Contract in 
the ``List of Owner's Materials on Hand'' or the ``List of Materials 
Ordered by Owner But Not Delivered.''
For Part II, from the actual unit costs to Owner--the same as used 
in No. 21.
24--No. 20 multiplied by No. 23.
25--No. 24 minus No. 22. (if a minus quantity, enter in 
parentheses.)
    See 7 CFR 1726, Electric System Construction Policies and 
Procedures, for instructions regarding distribution of the completed 
form.
    Reference should be made to REA Bulletin 1767B-3, Preparation 
and Use of REA Form 254, for instruction in accounting for all 
contract costs, including the retirement of units removed by the 
Contractor and the unitization by record units of costs of 
construction assemblies installed by the Contractor.

REA Form 254a
Assembly Units:
1. Quantity ______
2. Standard (N--New, H--Conversion, I--Removal) ______ Due to 
Contractor for Units Installed, Converted, and Removed
3. Labor (Unit Price) ______
4. Material Unit Price (Except I Units) ______
5. Total Unit Price (No. 3 + No. 4) (Except I Units) ______
6. Cost of Construction (No. 1 x No. 5) (Except I Units) ______
7. Cost to Remove ``I'' Units (No. 1 x No. 3) ______
    Amount Chargeable to Contractor for Materials in Assemblies 
Removed.
8. Unit Values (Table C in Contract) ______
9. Total (No. 1 x No. 8) ______
Total (No. 6) ______
Total (No. 7) ______
Total (No. 9) ______
REA Form 254b

    Summary and Classification Of Materials Returned to Owner by 
Contractor from ``I'' Removal Units.
    Amounts to be Credited to Contractor for Materials Returned.
10. Item Designation ______
11. Description of Material ______
12. Quantity ______
13. Item Value--Table D in Contract ______
14 Total Credit to Contractor (No. 12 x No. 13) ______
    Returned Materials Declared Reusable by Engineer.

15. Quantity of Items ______
16. Stock Card Item Price ______
17 Salvage Value (No. 15 x No. 16) ______
Total (No. 14) ______
Total (No. 17) ______
REA Form 254c

    Tabulation of Net Amount of Materials Furnished by Owner.
18. Item Designation ______
19. Description of Material ______
20. Quantity ______
    Actual Cost to Owner.

21. Unit Cost ______
22. Extended Cost (No. 20 x No. 21) ______
    Amount Chargeable to Contractor at Contract Price.

23. Unit Cost______
24. Extended Cost (No. 20 x No. 23) ______
25. Excess of No. 24 over No. 22 ______
Total (No. 22) ______
Total (No. 24) ______
Total (No. 25) ______

[End of clause]


Sec. 1726.329 Contract to construction buildings, REA Form 257.

    The contract form in this section shall be used when required by 
this part.

Contract to Construct Buildings

Notice and Instructions to Bidders

    1. Proposals: Sealed proposals for the construction, including 
the furnishing of all materials, machinery, labor and equipment, 
water, heat, utilities, transportation, and other means necessary 
for construction of the building(s) listed below (hereinafter called 
the ``Project'') to be financed ______ not to be financed ______ 
pursuant to a loan contract between ______ (hereinafter called the 
``Owner'') and the United States of America, by the Administrator of 
the Rural Electrification Administration (hereinafter called the 
``Administrator'') and designated as Project ______ will be received 
by the Owner on or before ______ o'clock ______ M ______ Time, 
______, 19____, at its office located at ______ at which time and 
place the proposals will be publicly opened and read. The Rural 
Telephone Bank may also be a party to the loan contract.

Name or Kind of Building ______
Location ______
    2. Obtaining Documents: The Plans and Specifications together 
with all other necessary forms and documents for bidders may be 
secured from ______ at ______ upon payment of ______ Dollars 
($______) which payment will be refunded to each bona fide bidder 
within ten (10) days after the bid opening. Additional sets of Plans 
and Specifications may be obtained upon payment of ______ Dollars 
($______) which payment will not be subject to refund. The Plans and 
Specifications may be examined at the office of ______. A copy of 
the loan contract may also be examined at the office of the Owner.
    3. Manner of Submitting Proposals: Proposals and all supporting 
documents required to be attached thereto must be submitted on the 
forms furnished by the Owner and must be delivered in a sealed 
envelope, addressed to the Owner. The name and address of the 
Bidder, its license number, if a license is required by the State, 
and the date and hour of the opening of bids must appear on the 
envelope in which the proposal is submitted. Proposals must be 
filled in ink or typewritten. No alterations or interlineations will 
be permitted, unless made before submission, and initialed and 
dated.
    4. Familiarity With Conditions: Prior to the submission of the 
Proposal, the Bidder shall make and shall be deemed to have made a 
careful examination of the site of the Project and of the Plans and 
Specifications, forms of Construction Proposal and Acceptance, and 
Contractor's Bond on file with the Secretary of the Owner and shall 
become informed as to the location and nature of the proposed 
construction, the transportation facilities, the kind and character 
of the soil and terrain to be encountered, the kind of facilities 
required before and during the construction of the Project, general 
local conditions, and all other matters that may affect the cost and 
the time of completion of the Project. Bidders will be required to 
comply with all applicable statutes, regulations, etc., including 
those pertaining to the licensing of contractors and the so-called 
``Kick-Back'' Statute (48 Stat. 948) and regulations issued pursuant 
thereto.
    5. Proposals will be accepted only from those prequalified 
bidders invited by the Owner to submit a proposal.
    6. Time of Completion of Construction: The time of completion of 
construction of the Project shall be as specified by the Architect 
in the Proposal.
    7. Bid Bond: Each proposal must be accompanied by a bid bond in 
the form attached or a certified check on a bank that is a member of 
the Federal Deposit Insurance Corporation, payable to the order of 
the Owner, in an amount equal to ten percent (10%) of the maximum 
bid price. Each Bidder shall agree, provided its proposal is one of 
the three low proposals, that by filing its proposal together with 
such bid bond or check in consideration of the Owner's receiving and 
considering such proposal, said proposal shall be firm and binding 
upon each such Bidder and such bid bond or check shall be held by 
the Owner until a Proposal is accepted and a satisfactory 
Contractor's Bond (or Builder's Risk Policy) is furnished by the 
successful Bidder and such acceptance has been approved by the 
Administrator, or for a period not to exceed sixty (60) days from 
the date hereinbefore set for the opening of proposals, whichever 
period shall be the shorter. If such proposal is not one of the 
three low proposals, the bid bond or check will be returned in each 
instance within a period of ten (10) days to the respective Bidder.
    8. Contractor's Bond or Builder's Risk Policy: The successful 
Bidder will be required to execute two additional counterparts of 
the Proposal and to furnish:
    (a) For contracts in amounts in excess of $100,000, a 
Contractor's Bond in the form attached to the Proposal with sureties 
listed by the United States Treasury Department as Acceptable 
Sureties, in a penal sum not less than the contract price.
    (b) For contracts in amounts of $100,000 or less, either a 
Contractor's Bond or a Builder's Risk Policy, whichever the Owner 
has specified below: (Check One)

______ Contractor's Bond
______ Builder's Risk Policy

    9. Failure to Furnish Contractor's Bond or Builder's Risk 
Policy: Should the successful Bidder fail or refuse to furnish a 
Contractor's Bond (or Builder's Risk Policy) satisfactory to the 
Owner within fifteen (15) days after written notification of the 
acceptance of the Proposal by the Owner, the Bidder will be 
considered to have abandoned the Proposal. In such event, the Owner 
shall be entitled (a) to enforce the Bid Bond in accordance with its 
terms, or (b) if a certified check has been delivered with the 
Proposal, to retain from the proceeds of the certified check the 
difference between the amount of the Proposal and such larger 
amounts for which the Owner may in good faith contract with another 
party to construct the Project. The term ``successful Bidder'' shall 
be deemed to include any Bidder whose proposal is accepted after 
another Bidder has previously refused or has failed to furnish a 
satisfactory Contractor's Bond (or Builder's Risk Policy).
    10. Contract Is Entire Agreement: The contract, effected by 
acceptance of the Proposal, shall be deemed to include the entire 
agreement between the parties thereto, and the Bidder shall not 
claim any modification thereof resulting from any representation or 
promise made at any time by any officer, agent or employee of the 
Owner or by any other person.
    11. Minor Irregularities: The Owner reserves the right to waive 
minor irregularities or minor errors in the Proposal, if it appears 
to the Owner that such irregularities or errors were made through 
inadvertence. Any such irregularities or errors so waived must be 
corrected on the Proposal prior to its acceptance by the Owner.
    12. Rejection of Proposals: The Owner reserves the right to 
reject any or all proposals.
    13. Discrepancies: Where a discrepancy appears between the sum 
of the Base Bids of each building and the Total Base Bid, the 
correct addition of the Base Bid price for each building shall 
control.
    14. The Owner Represents:
    (a) If by provisions of the Proposal, the Owner shall have 
undertaken to furnish any materials for the construction of the 
Project, such materials are on hand at locations which may be 
determined by the bidders' inquiry of the Architect, or if such 
materials are not on hand, they will be made available by the Owner 
to the successful Bidder before the time such materials are required 
for incorporation into the Project.
    (b) Title to the property on which the Project is to be 
constructed has been obtained.
    (c) All funds necessary for prompt payment of the construction 
of the Project will be available.
    If the Owner should fail to comply with any of the undertakings 
contained in the foregoing representations or if any such 
representations shall be incorrect, the Bidder will be entitled to 
an extension of the time of completion of Construction for a period 
equal to the delay, if any, caused by the failure of the Owner to 
comply with such undertakings or by any such incorrect 
representations; provided the Bidder shall have promptly notified 
the Owner in writing of its desire to extend the time of completion 
in accordance with the foregoing, and provided further that such 
extension, if any, of the time of completion shall be the sole 
remedy of the Bidder for the Owner's failure to comply with any of 
the foregoing representations.

______ Owner
By ______
Dated ______

Proposal

    To: ______ (hereinafter called the ``Owner''). The undersigned 
(hereinafter called the ``Bidder'') proposes to construct the 
building(s) listed in Section 1 of Article I (hereinafter called the 
``Project''), financed ______, not to be financed ______, in whole 
or in part by a loan to the Owner by the United States of America, 
by the Administrator of the Rural Electrification Administration 
(hereinafter called the ``Administrator''), or by loans to the Owner 
by the United States of America and by the Rural Telephone Bank, 
designated ______ and to receive and install such materials and 
equipment as may hereinafter be specified to be furnished by the 
Owner, and to furnish all other materials, machinery, and equipment, 
water, heat, utilities, transportation and other means required to 
construct the Project in accordance with the plans and 
specifications (hereinafter called the ``Plans and 
Specifications''), prepared by ______ (hereinafter called the 
``Architect'') and dated ______, 19______, and approved by the Rural 
Electrification Administration on ______, 19______, and by this 
reference made a part hereof. The Bidder has made a careful 
examination of the site(s) on which the Project is to be 
constructed, has become informed as to the kind of facilities 
required before and during the construction of the Project and has 
become acquainted with the labor conditions which would affect the 
work.
    The Bidder agrees that if his bid is accepted, the following 
terms shall govern.

ARTICLE I--AMOUNT OF PROPOSAL

    Section 1. Bid Price: The Bidder will construct the Project for 
the following sum:

Name or Kind and Location of
Building ______
Base Bid ______
Total of Bid $______
Alternate Bid No. 1 (add) (deduct) $______
Alternate Bid No. 2 (add) (deduct) $______
Alternate Bid No. 3 (add) (deduct) $______
Alternate Bid No. 4 (add) (deduct) $______

    Section 2. Taxes: The price quoted herein includes all amounts 
which the Bidder estimates will be payable by the Bidder or the 
Owner on account of taxes imposed by any taxing authority upon the 
sale, purchase or use of materials, supplies or equipment or 
services or labor of installation to be incorporated in the Project. 
The Bidder will pay all such taxes and will furnish to appropriate 
taxing authorities any required information and reports pertaining 
thereto.

ARTICLE II--CONSTRUCTION

    Section 1. Time of Construction:
    (a) The Bidder, after notification in writing of approval of the 
Construction Contract by the Administrator, if approval of the 
Administrator is required, will commence construction of the Project 
within ______ (______) calendar days after the Owner shall have 
given the Bidder written notice to commence construction which 
notice shall be given:
    (1) Not later than ______ (______) calendar days after approval 
of the Construction Contract by the Administrator, if approval of 
the Administrator is required.
    (2) On a date to be determined by the Owner. (The Architect will 
cross out the inapplicable statement (1) or (2) above before 
requesting bids.)
    (b) The Bidder will prosecute diligently and complete 
construction of the Project in strict accordance with the Plans and 
Specifications and directions of the Architect within ______ 
(______) calendar days after the expiration of the time specified to 
commence construction.
    (c) The time for Completion of Construction herein set forth 
shall be extended for the period of any reasonable delay which is 
due exclusively to causes beyond the control and without the fault 
of the Bidder, including acts of God, fires, floods, direction by 
the Architect to cease construction during periods when in the 
judgment of the Architect it is impractical to perform any operation 
of construction and acts or omissions of the Owner with respect to 
matters for which the Owner is solely responsible, provided, 
however, that no such extension of time for completion shall be 
granted the Bidder unless within ten (10) days after the happening 
of any event relied upon by the Bidder for such an extension of time 
the Bidder shall have made a request therefor in writing to the 
Owner and provided further, that no delay in such time of completion 
or in the progress of the work which results from any of the above 
causes or from any changes in construction which may be made 
pursuant to Subsection (d) of this Section shall result in any 
liability on the part of the Owner.
    (d) The Owner, acting through the Architect and with the 
approval of the Administrator, if approval of the Administrator is 
required, may from time to time during the progress of construction 
make revisions in the Project. If the revision is such as to require 
an extension in the time of construction, a reasonable extension 
shall be granted if the Bidder shall make a written request therefor 
to the Owner prior to the commencement of work in connection with 
such revision. If the cost of the Project to the Bidder to make 
revision shall be increased or decreased, the contract price shall 
be amended by an amount equivalent to the reasonable cost thereof by 
a Construction Contract Amendment signed by the Owner and the 
Bidder, and approved by the Administrator, if approval of the 
Administrator is required; but no claim for additional compensation 
for any revision will be considered unless the Bidder shall have 
made a written request therefore to the Owner prior to the 
commencement of work in connection with such revision. The 
reasonable cost of any increase or decrease in the contract 
amendment as outlined above, in the absence of any other mutual 
agreement, shall be computed on the basis of the direct cost of 
materials, F.O.B. the site of the Project, plus the direct cost of 
labor necessary to incorporate such materials into the Project 
(including actual cost of payroll taxes and insurance) plus twenty-
five percent (25%) of the direct cost of materials and labor. Labor 
cost shall be limited to the direct costs for workmen and foremen. 
Costs for Bidder's main office overhead, job office overhead and 
superintendence shall not be included.
    Section 2. Supervision: The Bidder will give sufficient 
supervision to the work, using his best skill and attention. He will 
carefully study and compare all drawings, specifications and other 
instructions, and report at once to the architect any error, 
inconsistency or omission which he may discover. The Bidder will 
make available during construction a competent superintendent and 
any necessary assistants, all satisfactory to the architect. The 
superintendent shall not be changed except with the consent of the 
Architect unless the superintendent proves to be unsatisfactory to 
the Bidder and ceases to be his employ. The superintendent shall 
represent the Bidder in his absence and all directions given to him 
shall be as binding as if given to the Bidder. When requested, such 
directions shall be confirmed in writing.
    Section 3. Shop Drawings: The Bidder, after reviewing, will 
submit to the Architect, with such promptness as to cause no delay 
in the work two copies of all shop or setting drawings and schedules 
required for the work of the various trades, and the Architect shall 
pass on them with reasonable promptness, requesting corrections 
required thereto to be made. The Bidder will make any corrections 
required and file with the Architect three corrected copies and 
furnish such other copies as may be needed. The Architect's approval 
of such drawings or schedules shall not relieve the Bidder of 
responsibility for deviations from the Plans and Specifications. The 
Bidder will keep one copy of the contract documents on the site, in 
good order, available to the Architect. All drawings and 
specifications will be returned to the Architect upon completion of 
construction.
    Section 4. Samples: The Bidder will furnish for approval, all 
samples as directed by the Architect, and will perform the work in 
accordance with such approved samples.
    Section 5. Inspection and Tests: The manner of construction of 
the Project and all materials and equipment used or to be used 
therein shall be subject to the inspection, tests and approval of 
the Architect and the Administrator, and the Bidder will furnish all 
information required by the Architect or the Administrator 
concerning the nature or source of materials. The Owner and the 
Administrator shall have the right to inspect all records of the 
Bidder and of any subcontractor relevant to the work. The Bidder 
will make available at the site of the Project, telephone service 
where obtainable, the payroll, invoices of material and other data 
and records of the Bidder relevant to the work. The Bidder will 
provide all reasonable facilities necessary for such inspection and 
tests. If the specifications, the Architect's instructions, laws, 
ordinances or any public authorities require any work to be 
specially tested or approved, the Bidder will give the Architect 
timely notice of its readiness for observation by the Architect or 
inspection by an authority other than the Architect, and if the 
inspection is by such other authority, of the date fixed for such 
inspection, testing or approval. The Bidder will bear all costs of 
such inspections, tests and approvals unless otherwise provided, 
obtain required certificates and deliver them to the Architect. 
Observations by the Architect shall be promptly made, and where 
practicable at the source of supply. If any work should be covered 
without approval or consent of the Architect, it must, if required 
by the Architect, be uncovered for examination at the Bidder's 
expense. Re-examination of questioned work may be ordered by the 
Architect and if so ordered the work must be uncovered by the 
Bidder. If such work be found in accordance with the contract 
documents the Owner shall pay the cost of re-examination and 
replacement. If such work be found not in accordance with the 
contract documents the Bidder will pay such cost.
    Section 6. Employees: The Bidder will at all times enforce 
strict discipline and good order among his employees and shall not 
employ any unfit person or anyone not skilled in the task assigned 
him. The Architect and the Owner shall have the right to require the 
removal from the Project of any employee of the Bidder or 
subcontractor if in their judgment such removal shall be necessary 
to protect the interest of the Owner.
    Section 7. Defective Workmanship and Materials: Notwithstanding 
the acceptance of workmanship, materials (except owner-furnished 
materials) or equipment or the giving of any certificate with 
respect to the Completion of Construction, if during the 
construction or within one year after such completion, or within 
such longer period as the Project or any part thereof may be 
guaranteed by other provisions of this Proposal, the workmanship, 
materials or equipment shall be found to be defective or not in 
conformity with the requirements of the Plans and Specifications, 
the Bidder will remedy or replace such workmanship, materials or 
equipment within thirty (30) days after written notice of the 
failure of the Bidder to conform with the applicable provisions of 
the contract documents shall have been given to the Bidder by the 
Owner.

ARTICLE III--PAYMENT AND RELEASES OF LIENS

    Section 1. Payments to Bidder:
    (a) On or before the fifth (5) day of each Calendar Month, the 
Bidder will make application for payment, and the Owner, on or 
before the fifteenth (15) day of such month, shall make partial 
payment to the Bidder for construction accomplished during the 
preceding Calendar Month and partial payment for materials not 
incorporated in the Project. The payment shall be made on the basis 
of a schedule of values and receipts or other vouchers, submitted by 
the Bidder to, and approved by, the Architect, showing payments for 
labor and materials, payments to subcontractors, and such other 
evidence of the Bidder's right to payment for construction 
accomplished, and bills of sale or such other procedure as will 
establish the Owner's title to materials not incorporated in the 
Project but delivered and suitably stored on the site or at any 
other location agreed upon in writing by the Owner. Approval by the 
Architect of the application for payment is solely for the purposes 
of payment and shall not be deemed approval of the workmanship or 
materials. Only ninety percent (90%) of each such estimate of the 
cost for construction accomplished and approved and fifty percent 
(50%) of the cost of materials not incorporated in the Project shall 
be paid by the Owner to the Bidder prior to Completion of 
Construction. The Bidder will, before the first application, submit 
to the Architect, a schedule of values of the various parts of the 
work, including quantities, aggregating the total contract price, 
divided so as to assist in determining the accuracy of payments to 
subcontractors and of the applications for payment.
    (b) Upon Completion of Construction, the Architect shall inspect 
the Project, and if he shall find the work acceptable and all 
provisions hereunder fully performed, he shall furnish the Owner two 
copies of a Certificate of Completion, on forms satisfactory to the 
Administrator, and shall certify thereon the final Contract Price. 
The Certificate of Completion shall show thereon the Acceptance of 
the Contractor. Upon acceptance of the Certificate of Completion by 
the Owner, the Owner shall make final payment to the Bidder of all 
unpaid amounts to which the Bidder shall be entitled hereunder, 
except that, for contracts requiring approval of the Administrator, 
the Owner shall submit one copy of the Certificate of Completion to 
the Administrator for approval. Upon notice of approval by the 
Administrator, the Owner shall make final payment to the Bidder.
    (c) Interest at the rate of ____ percent1 (____ %) per 
annum shall be paid by the Owner to the Bidder on all unpaid 
balances due on monthly estimates, commencing fifteen (15) days 
after the due date, provided the delay in payment beyond the due 
date is not caused by any condition within control of the Bidder. 
The due date for purposes of such monthly payment shall be the 
fifteenth (15th) day of each Calendar Month provided (1) the Bidder 
on or before the fifth (5th) day of such month shall have submitted 
its certified estimate of construction completed during the 
preceding month and (2) the Architect on or before the fifteenth 
(15th) day of such month shall have approved such certification. If, 
for reasons not due to the Bidder's fault, such approval of the 
Architect shall not have been given on or before the fifteenth 
(15th) day of such month, the due date for purposes of this 
Subsection shall be the fifteenth (15th) day of such month 
notwithstanding the absence of the Architect's approval of the 
certification.
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    \1\1 The Owner shall insert a rate equal to the lowest ``Prime 
Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued.
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    (d) Interest at the rate of ____ percent2 (____%) shall be 
paid by the Owner to the Bidder on the final payment commencing 
fifteen (15) days after the due date. The due date for the purposes 
of such final payment shall be sixty (60) days after the date of 
certification by the Architect in the Certificate of Completion or 
the date of approval by the Administrator of the Certificate of 
Completion when approval thereof is required by the Administrator.
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    \2\See Footnote 1.
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    (e) No payments shall be due while the Bidder is in default in 
respect of any of the provisions of this Proposal, and the Owner may 
withhold from the Bidder the amount of any claim by a third party 
against either the Bidder or the Owner based upon an alleged failure 
of the Bidder to perform the work hereunder in accordance with the 
provisions of this Proposal.
    Section 2. Release of Liens: Upon Completion of Construction of 
the Project, but prior to the payment to the Bidder of any amount 
withheld in accordance with Section 1, (a) of Article III, the 
Bidder shall furnish the Owner, on forms satisfactory to the 
Administrator releases of all liens, and of all rights to claim any 
lien from manufacturers, materialmen and subcontractors who have 
furnished materials or services for the construction of the Project, 
and a Certificate of Contractor on a form satisfactory to the 
Administrator, to the effect that all labor used on or for the 
Project has been paid and that all such releases have been submitted 
to the Owner.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE BIDDER

    Section 1. Protection to Persons and Property: The Bidder will, 
at all times, take all reasonable precautions for the safety of 
employees on the Project, and of the public and all other persons 
who may be affected thereby, and will comply with all applicable 
provisions of Federal, State and Municipal safety laws and building 
and construction codes.
    The Bidder will protect from loss or damage all materials and 
equipment to be incorporated in the Project, whether in storage on 
or off the site, and other property at the site or adjacent thereto, 
including trees, shrubs, lawns, walks, paved surfaces, structures 
and utilities not designated for removal, relocation or replacement 
in the course of construction. The Bidder will provide and maintain 
guard lights, watchman or other protection for persons and property, 
and physical hazards shall be guarded in accordance with the 
``Manual of Accident Prevention in Construction'' of the Associated 
General Contractors of America, unless such instructions are 
incompatible with or less strict than those of any public authority 
having jurisdiction thereon, or instructions of the Architect.
    The following provisions shall not limit the generality of the 
above requirements:
    (a) The Bidder will at all times, keep the premises free from 
accumulation of waste material or rubbish caused by his employees or 
work, and at the completion of construction he will remove all 
rubbish from and about the Project, and all his tools, scaffolding 
and surplus materials and will leave his work ``broom clean.''
    (b) The Project from its commencement to completion, or to such 
earlier date or dates when the Owner may take possession and control 
in whole or in part as hereinafter provided, will be under the 
charge and control of the Bidder and during such period of control 
by the Bidder all risks in connection therewith and the materials to 
be used therein will be borne by the Bidder. The Bidder will make 
good and fully repair all injuries and damages to the Project or any 
portion thereof under the control of the Bidder, by reason of any 
act of God or other casualty or cause, whether or not the same shall 
have occurred by reason of the Bidder's negligence.
    (i) To the maximum extent permitted by law, Bidder shall defend, 
indemnify, and hold harmless Owner and Owner's directors, officers, 
and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Bidder's employees) and loss, damage to or destruction of 
Owner's property or the property of any other person or entity 
(including but not limited to Bidder's property) in any manner 
arising out of or connected with the Contract, or the materials or 
equipment supplied or services performed by Bidder, its 
subcontractors and suppliers of any tier. But nothing herein shall 
be construed as making Bidder liable for any injury, death, loss, 
damage, or destruction caused by the sole negligence of Owner.
    (ii) To the maximum extent permitted by law, Bidder shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Bidder, its subcontractors and suppliers of 
any tier, and from all losses, demands, and causes of action arising 
out of any such lien or claim. Bidder shall promptly discharge or 
remove any such lien or claim by bonding, payment, or otherwise and 
shall notify Owner promptly when it has done so. If Bidder does not 
cause such lien or claim to be discharged or released by payment, 
bonding, or otherwise, Owner shall have the right (but shall not be 
obligated) to pay all sums necessary to obtain any such discharge or 
release and to deduct all amounts so paid from the amount due 
Bidder.
    (iii) Bidder shall provide to Owner's satisfaction evidence of 
Bidder's ability to comply with the indemnification provisions of 
subparagraphs i and ii above, which evidence may include but may not 
be limited to a bond or liability insurance policy obtained for this 
purpose through a licensed surety or insurance company.
    (c) The Bidder will confine his apparatus, the storage of 
materials and the operations of his workmen to limits indicated by 
law, ordinances, permits, or directions of the Architect, and shall 
not unreasonably encumber the premises with his materials.
    (d) The Bidder will not load or permit any of the structure to 
be loaded with a weight that will endanger its safety.
    (e) The Bidder will submit to the Owner, monthly reports in 
duplicate of all accidents giving such data as may be prescribed by 
the Architect.
    (f) Upon violation by the Bidder of any of the provisions of 
this section, the Bidder will, after written notice of such 
violation given to the Bidder by the Architect or the Owner, 
immediately correct such violation. Upon failure of the Bidder so to 
do, the Owner may correct such violation at the Bidder's expense; 
provided, however, that the Owner may, if it deems necessary or 
advisable, correct such violation at the Bidder's expense without 
such prior notices to the Bidder.
    (g) The Bidder will be responsible for all construction means, 
methods, techniques, sequences, and procedures and for coordinating 
all portions of the construction of the Project.
    Section 2. Insurance. The Bidder shall take out and maintain 
throughout the contract period insurance of the following types and 
minimum amounts:
    (a) Workers' compensation and employers' liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to the workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    (b) Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    (c) Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million per person and $1 million per occurrence, and property 
damage limits of $1 million for each occurrence. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    The Owner shall have the right at any time to require public 
liability insurance and property damage liability insurance greater 
than those required in subsection ``b'' and ``c'' of this Section. 
In any such event, the additional premium or premiums payable solely 
as the result of such additional insurance shall be added to the 
Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 3. Purchase of Materials: The Bidder will purchase all 
materials (except owner-furnished materials) and supplies outright 
and not subject to any conditional sales agreements, bailment lease 
or other agreement reserving unto the seller any right, title or 
interest therein. All materials and supplies shall become the 
property of the Owner when erected in place or at such earlier time 
as the parties may agree pursuant to Section 1(a) of Article III. 
Unless otherwise specified, all materials shall be new.
    Section 4. Assignment of Guarantees: The Bidder will obtain from 
manufacturers, materialmen, and subcontractors and furnish to the 
Owner all guarantees and will transfer or assign to the Owner such 
guarantees as run in favor of the Bidder, prior to the time the 
Bidder receives final payment. The guarantees shall be in addition 
to and not limited by any other provisions of the contract 
documents, guarantee or remedy required by law.
    Section 5. Royalties and Patent Infringement: The Bidder will 
pay all royalties and license fees, and will hold harmless and 
indemnify the Owner from any and all claims, suits, and proceedings 
for the infringement of any patent or patents covering any 
equipment, materials, supplies or construction methods used in the 
work.
    Section 6. Compliance with Statutes and Regulations: The Bidder 
will comply with all applicable statutes, ordinances, rules and 
regulations pertaining to the work. The Bidder acknowledges that it 
is familiar with The Rural Electrification Act of 1936, as amended, 
the so-called ``Kick-Back'' Statute (48 Stat. 948), and all 
regulations issued pursuant thereto, and 18 U.S.C. Secs. 287, 1001 
as amended. The Bidder understands that the obligations of the 
parties hereunder are subject to the applicable regulations and 
orders of Governmental agencies having jurisdiction in the premises.
    Section 7. Delivery of Possession and Control to Owner: Upon 
written request of the Owner, the Bidder shall deliver to the Owner 
full possession and control of any portion of the Project provided 
the Bidder shall have been paid at least 90 percent (90%) of the 
cost of construction of such portion. Upon such delivery of the 
possession and control of such portion of the Project to the Owner, 
the risks and obligations of the Bidder as set forth in Section 
1(b), Article IV hereof with respect to such portion so delivered to 
the Owner shall be terminated; provided, however, that nothing 
herein contained shall relieve the Bidder of any liability with 
respect to defective workmanship or materials as provided in Section 
7, Article II.
    Section 8. Occupancy Before Completion: Exception as provided in 
Section 7, the Owner shall not occupy any portion of the Project 
prior to the time of completion without the written approval of the 
Bidder. It is agreed that such occupancy of any such portion of the 
Project will not constitute acceptance of workmanship or materials 
used in construction of the Project as provided in Section 7, 
Article II, and that such occupancy will not relieve the Bidder from 
his obligation to complete any part of the Project in compliance 
with the contract. The Owner agrees to permit the Bidder to fulfill 
the requirements of the contract in accordance with instructions 
issued to the Bidder by the Architect upon occupancy by the Owner.

ARTICLE V--REMEDIES

    Section 1. Liquidated Damages: The time of Completion of 
Construction of the Project is of the essence of this Contract. 
Should the Bidder neglect, refuse or fail to complete construction 
within the time herein agreed upon, after giving effect to 
extensions of time, if any herein provided for, then, in that event 
and in view of the difficulty of estimating with exactness damages 
caused by such delay, the Owner shall have the right to deduct from 
and retain out of such moneys which may be then due or which may 
become due and payable to the Bidder, the sum of ________ Dollars 
($________) per day of each and every day that such construction is 
delayed in its completion beyond the specified time, as liquidated 
damages and not as a penalty. If the amount due and to become due 
from the Owner to the Bidder is insufficient to pay in full any such 
liquidated damages, the Bidder shall pay to the Owner the amount 
necessary to effect such payment in full; provided, however, that 
the Owner shall promptly notify the Bidder in writing of the manner 
in which the amount retained, deduced or claimed as liquidated 
damages was computed.
    Section 2. Completion on Bidder's Default: If default shall be 
made by the Bidder or by any subcontractor in the performance of any 
of the terms of this Proposal, the Owner, without in any manner 
limiting its legal and equitable remedies in the circumstances, may 
serve upon the Bidder and the surety or sureties upon the 
Contractor's Bond or Bonds a written notice requiring the Bidder to 
cause such default to be corrected forthwith. Unless within twenty 
(20) days after the service of such notice upon the Bidder, such 
default shall be corrected or arrangements for the correction 
thereof, satisfactory to both the Owner and the Administrator, shall 
be made by the Bidder or its Surety or Sureties, the Owner may take 
over the construction of the Project and prosecute the same to 
completion by contract or otherwise for the account and at the 
expense of the Bidder and the Bidder and its Surety or Sureties 
shall be liable to the Owner for any cost or expense in excess of 
the contract price occasioned thereby. Sureties shall be liable to 
the Owner for any cost or expense in excess of the contract price 
occasioned thereby. In such event the Owner may take possession of 
and utilize, in completing the construction of the Project, any 
materials, tools, supplies, equipment, appliances, and plant 
belonging to the Bidder or any of its subcontractors, which may be 
situated at the site of the Project. The Owner in such contingency 
may exercise any rights, claims or demands which the Bidder may have 
against third persons in connection with this Proposal and for such 
purpose the Bidder does hereby assign, transfer and set over unto 
the Owner all such rights, claims and demands.
    Section 3. Cumulative Remedies: Every right or remedy herein 
conferred upon or reserved to the Owner or the Government or the 
Administrator shall be cumulative, shall be in addition to every 
right and remedy now or hereafter existing at law or in equity or by 
statute and the pursuit of any right or remedy shall not be 
construed as an election; provided, however, that the provisions of 
Section 1 of this Article V shall be the exclusive measure of 
damages for failure by the Bidder to complete the construction of 
the Project within the time herein agreed upon.

ARTICLE VI--MISCELLANEOUS

    Section 1. Definitions:
    (a) The term Administrator shall mean the Administrator of the 
Rural Electrification Administration of the United States of America 
and his duly authorized representatives or any other person in whom 
or authority in which may be vested in the duties and functions 
which the Administrator is now authorized by law to perform.
    (b) The term Architect shall mean the person or organization 
employed by the Owner to provide architectural services for the 
Project, and the Architect's duly authorized assistants and 
representatives. If an Architect is not employed, the term shall 
apply to the duly authorized agent of the Owner.
    (c) The term Completion of Construction shall mean full 
performance by the Bidder of the Bidder's obligations under the 
Contract and all amendments and revisions thereof except the 
Bidder's obligations in respect of (1) Releases of Liens and 
Certificate of Contractor under Article III, Section 2 hereof, and 
(2) other final documents. The term ``Completion of the Project'' 
shall mean full performance by the Bidder of the Bidder's 
obligations under the Contract and all amendments and revisions 
thereof. The date of signature by the Architect of the Certificate 
of Completion shall be the sole and conclusive evidence as to the 
date of Completion of Construction and as to the fact of Completion 
of the Project.
    Section 2. Materials and Supplies. In the performance of this 
contract there shall be furnished only such unmanufactured articles, 
materials, and supplies as have been mined or produced in the United 
States, Mexico, or Canada, and only such manufactured articles, 
materials, and supplies as have been manufactured in the United 
States substantially all from articles, materials, or supplies 
mined, produced or manufactured, as the case may be, in the United 
States, Mexico, or Canada; provided that other articles, materials, 
or supplies may be used in the event and to the extent that the 
Administrator shall expressly in writing authorize such use pursuant 
to the provisions of the Rural Electrification Act of 1938, being 
Title IV of Public Resolution No. 122, 75th Congress, approved June 
21, 1938. The Bidder agrees to submit to the Purchaser such 
certificates with respect to compliance with the foregoing provision 
as the Administrator from time to time may require.
    Section 3. Bond or Builder's Risk Policy:
    (a) The Bidder will furnish to the Owner, for a contract in an 
amount in excess of $100,000, a bond in a penal sum not less than 
the Total Contract Price and in the form attached hereto and with a 
Surety or Sureties listed by the United States Treasury Department 
as Acceptable Sureties.
    (b) The Bidder will furnish to the Owner for a contract in an 
amount of $100,000 or less, a Builder's Risk Policy or a bond like 
that required in the preceding paragraph, whichever the Owner has 
specified under Paragraph 8 of the Notice and Instructions to 
Bidders. The Builder's Risk Policy shall be on a completed value 
form, effective from the date equipment or materials is first 
delivered to the building site, and shall name both the Owner and 
the Contractor as insureds. The policy shall insure against loss by 
fire or lightning and the named perils in the extended coverage 
endorsement. The amount of coverage shall not be less than the 
replacement value of the property constructed, including all 
materials to be used in the construction and stored at the site or 
at any other location whether furnished by the Owner or the 
Contractor. When directed, the Bidder shall furnish evidence of 
compliance with these requirements. The evidence shall be in the 
form of a certificate of insurance by the insurance company and 
shall include a provision that no change in or cancellation of the 
policy shall be made without prior written notice to the Owner and 
the Administrator.
    Section 4. Subcontracts and Nonassignment:
    (a) Within ten (10) days after acceptance of the Proposal by the 
Owner and before awarding any subcontracts, the Bidder will notify 
the Architect, Owner and Surety in writing, of the names of the 
subcontractors proposed for the principal parts of the work, and 
will not enter into any subcontract for such work if written 
objection thereto is received from the Architect, Owner, Surety or 
Sureties within fifteen (15) days after receipt of such notice. The 
Bidder will be as fully responsible to the Owner and the 
Administrator for the acts and omissions of each subcontractor and 
of persons employed by such subcontractor as the Bidder would be for 
its own acts and omissions and those of persons directly employed by 
it. The Bidder will not subcontract on aggregate amount in excess of 
sixty-five percent (65%) of its obligations, (to be calculated on 
the basis of the Total Contract Price) without approval of the 
Architect, Owner, and Surety or Sureties on any bond furnished by 
the Bidder for the faithful performance of the Bidder's obligations 
hereunder. Nothing contained in the Construction Contract shall 
create any contractual relation between any subcontractor and the 
Owner.
    (b) The Bidder will not assign the contract effected by the 
acceptance of this Proposal or any part thereof without approval in 
writing of the Owner, Surety or Sureties, and the Administrator if 
the Construction Contract was approved by the Administrator.
    Section 5. Equal Opportunity Provisions:
    (a) Bidder's Representations.
    The Bidder represents that:
    It has ____, does not have ____, 100 or more employees, and if 
it has, that it has ____, has not ____, furnished the Equal 
Employment Opportunity-Employers Information Report EEO-1, Standard 
Form 100, required of employers with 100 or more employees pursuant 
to Executive Order 11246 and Title VII of the Civil Rights Act of 
1964.
    The Bidder agrees that it will obtain, prior to the award of any 
subcontract for more than $10,000 hereunder to a subcontractor with 
100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100.
    The Bidder agrees that if it has 100 or more employees and has 
not submitted a report on Standard Form 100 for the current 
reporting year and that if this Contract will amount to more than 
$10,000, the Bidder will file such report, as required by law, and 
notify the Owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    (b) Equal Opportunity Clause. During the performance of this 
Contract, the Bidder agrees as follows:
    (1) The Bidder will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex or 
national origin. The Bidder will take affirmative action to ensue 
that applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex or 
national origin. Such actions shall include, but not be limited to, 
the following: Employment, upgrading, demotions or transfer; 
recruitment or recruitment advertising, layoff or termination; rates 
of pay or other forms of compensation; and selection of training, 
including apprenticeship. The Bidder agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided setting forth the provisions of this Equal 
Opportunity Clause.
    (2) The Bidder will, in all solicitations or advertisements for 
employees placed by or on behalf of the Bidder, state that all 
qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex or national origin.
    (3) The Bidder will send to each labor union or representative 
of workers, with which it has a collective bargaining agreement or 
other contract or understanding, a notice to be provided advising 
the said labor union or worker's representative of the Bidder's 
commitments under this section, and shall post copies of the notice 
in conspicuous places available to employees and applicants for 
employment.
    (4) The Bidder will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and rules, regulations, and 
relevant orders of the Secretary of Labor.
    (5) The Bidder will furnish all information and reports required 
by Executive Order 11246 of September 24, 1965, and by rules, 
regulations, and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations, and orders.
    (6) In the event of the Bidder's noncompliance with the Equal 
Opportunity Clause of this Contract or with any of the said rules, 
regulations, or orders, this Contract may be cancelled, terminated, 
or suspended in whole or in part, and the Bidder may be declared 
ineligible for further Government contracts or federally assisted 
construction contracts in accordance with procedures authorized in 
Executive Order 11246 of September 24, 1965, and such other 
sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24, 1965, or by rule, 
regulations, or order of the Secretary of Labor, or as provided by 
law.
    (7) The Bidder will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations, or order of the Secretary of Labor issued pursuant to 
Section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontract or vendor. The 
Bidder will take such action with respect to any subcontract or 
purchase order as the administering agency may direct as a means of 
enforcing such provisions, including sanctions for noncompliance. 
Provided, however, that in the event Bidder becomes involved in, or 
is threatened with, litigation with a subcontractor or vendor as a 
result of such direction by the administering agency, the Bidder may 
request the United States to enter into such litigation to protect 
the interests of the United States.
    (c) Certificate of Nonsegregated Facilities. The Bidder 
certifies that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Bidder agrees that a breach of this 
certification is a violation of the Equal Opportunity Clause in this 
Contract. As use in this certification, the term ``segregated 
facilities'' means any waiting rooms, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms, and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Bidder agrees that (except where it has obtained 
identical certifications from proposed subcontractors for specific 
time periods) it will obtain identical certifications from proposed 
subcontractors prior to the award of subcontracts exceeding $10,000 
which are not exempt from the provisions of the Equal Opportunity 
Clause, and that it will retain such certifications in its files.
    Section 6. License: The Bidder warrants that a Contractor's 
License is ____, is not ____, required, and if required, it 
possesses Contractor's License No. ________ for the State of 
________ in which the Project is located, and said license expires 
on ________, 19____.
    Section 7. Extension to Successors and Assigns: Each and all of 
the covenants and agreements contained in the contract effected by 
the Acceptance of this Proposal shall extend to and be binding upon 
the successors and assigns of the parties thereto.
    Section 8. Description of Contract: The Notice and Instructions 
to Bidders, the Proposal, the Acceptance, the Contractor's Bond or 
Builder's Risk Policy, the Plans and Specifications and all 
amendments or revisions thereto constitute the Construction 
Contract.
    Section 9. Contractor: Upon acceptance of this Proposal the 
successful Bidder shall be the Contractor and all references in the 
Proposal to the Bidder shall apply to the Contractor.
    Section 10. Approval by the Administrator: No acceptance of a 
Proposal for a contract upon which approval of the Administrator is 
required shall become effective until the contract has been approved 
by the Administrator; provided that no obligation shall arise 
hereunder unless such approval is given within sixty (60) days after 
the date set for the opening of the proposals. The acceptance of a 
Proposal for a contract upon which approval of the Administrator is 
not required shall become effective the date of acceptance by the 
Owner.

________ Bidder
By ________ President
________ Address
Attest: ________ Secretary
Date ________

    The Proposal must be signed with the full name of the Bidder. If 
the Bidder is a partnership, the Proposal must be signed in 
partnership name by a partner. If the Bidder is a corporation, the 
Proposal must be signed in the corporate name by a duly authorized 
officer and the corporate seal affixed and attested by the Secretary 
of the Corporation.

Acceptance

    Subject to the approval of the Administrator, if approval of the 
Administrator is required, the Owner hereby accepts the Proposal of 
________ for the construction of the Project therein described for 
the:

Base Bid of ________ and alternate bids as follows (Show plus or 
minus):
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
Alternate bid No. ________, $________.
The Total Contract Price is $________

________ Owner
By ________ President
Attest: ________ Secretary
Dated ____

[End of clause]


Sec. 1726.330  [Reserved]


Sec. 1726.331  Bid bond, REA Form 307.

    The bond form in this section shall be used when a Bid Bond is 
required by REA Form 200, 203, 257, 764, 830, or 831.

Bid Bond

    1. Know all men that we, ________, as Principal, and ________, 
as Surety, are held and firmly bound unto ________ (hereafter called 
the ``Owner'') in the penal sum of ten percent (10%) of the amount 
of the bid referred to in paragraph 2 below, but not to exceed 
________ dollars ($________), as hereinafter set forth and for the 
payment of which sum well and truly to be made we bind ourselves, 
our executors, administrators, successors and assigns, jointly and 
severally, by these presents;
    2. Whereas, the Principal has submitted a bid to the Owner for 
the construction of the Rural Electrification Administration Project 
known as Project ________.
    3. Now, therefore, the condition of this obligation is such that 
if the Owner shall accept the bid of the Principal, and
    (a) the Principal shall execute such contract documents, if any, 
as may be required by the terms of the bid and give such 
Contractor's Bond or Bonds for the performance of the contract and 
for the prompt payment of labor and material furnished for the 
Project as may be specified in the bid, or
    (b) in the event of the failure of the Principal to execute such 
contract documents, if any, and give such Contractor's Bond or 
Bonds, if the Principal shall pay to the Owner the difference, not 
to exceed the penal sum hereof, between the amount specified in the 
bid and such larger amount for which the Owner may in good faith 
contract with another party to construct the Project, then this 
obligation shall be void, otherwise to remain in full force and 
effect.
    In witness whereof, the undersigned have caused this instrument 
to be executed and their respective corporate seals to be affixed 
and attested by their duly authorized representatives this ____ day 
of ________, 19____.

Principal ________ (Seal)
By ________
Title ________
Attest: ________ (Secretary)
Surety ________ (Seal)
By ________
Title ________
Attest: ________ (Secretary)

[End of clause]


Secs. 1726.332-1726.339  [Reserved]


Sec. 1726.340  Substation and switching station erection contract, REA 
Form 764.

    The contract form in this section shall be used when required by 
this part.

Substation and Switching Station Erection Contract

Notice and Instructions to Bidders

    1. Sealed proposals for the construction, including the supply 
of necessary labor, materials and equipment, of a rural electric 
project of ________ (hereinafter called the ``Owner'') to be known 
as Project ________ will be received by the Owner on or before ____ 
o'clock ____ M., 19____, at its office at ________ at which time and 
place the proposals will be publicly opened and read. Any proposal 
received subsequent to the time specified will be promptly returned 
to the Bidder unopened.
    2. Description of Project: The Project will consist of the 
following Substations and other Major Facilities:

Name ________ KVA ________
Voltage ________
Name ________ KVA ________
Voltage ________
Name ________ KVA ________
Voltage ________

    The Project is located in ____ Counties, in the State of 
________ all as more fully described in the Plans, Specifications 
for Construction, Construction Drawings and Contractor's Proposal 
therefore hereinafter referred to.
    3. Owner Furnished Materials. The unit prices in the 
Contractor's Proposal should include provisions for Owner Furnished 
Materials since as stated in Article I, Section 3 of the 
Contractor's Proposal, the value of the Owner Furnished Materials, 
if any, will be deducted from payments to the Bidder for completed 
Construction Units.
    4. Obtaining and Transferring Documents. The Plans, 
Specifications for Construction and Construction Drawings together 
with all necessary forms and other documents for bidders may be 
obtained from the Owner, or from the Engineer ________ at the 
latter's office at ________ upon payment of ten dollars ($10), which 
payment will not be subject to refund. The Plans, Specifications for 
Construction and Construction Drawings may be examined at the office 
of the Owner or at the office of the Engineer. A copy of the Loan 
Contract (if the Project is to be financed in whole or in part, 
pursuant to a Loan Contract) between the Owner and the United States 
of America acting through the Administrator of the Rural 
Electrification Administration (hereinafter called the 
``Administrator'') and of the loan contract between the Owner and 
any other lender may be examined at the office of the Owner. Each 
set of Plans, Specifications for Construction and Construction 
Drawings will have a serial number, given by the Engineer, and the 
number of each set with the name of the Purchaser will be recorded 
by the Engineer. Bids will be accepted only from the original 
purchasers.
    5. Manner of Submitting Proposals. Proposals and all supporting 
instruments must be submitted on the forms furnished by the Owner 
and must be delivered in a sealed envelope addressed to the Owner. 
The name and address of the Bidder, its license number if a license 
is required by the State, and the date and hour of the opening of 
bids must appear on the envelope in which the Proposal is submitted, 
Proposals must be filled in, in ink or typewritten. No alterations 
or interlineations will be permitted, unless made before submission, 
and initialed and dated.
    6. Familiarity with Conditions. Prior to the submission of the 
Proposal the Bidder shall make and shall be deemed to have made a 
careful examination of the site of the Project and of the Plans, 
Specifications for Construction, Construction Drawings, and forms of 
Contractor's Proposal and Contractor's Bond on file with the 
Secretary of the Owner and with the Engineer, and shall become 
informed as to the location and nature of the proposed construction, 
the transportation facilities, the kind and character of soil and 
terrain to be encountered, the kind of facilities required before 
and during the construction of the Project, general local conditions 
and all other matters that may affect the cost and the time of 
completion of the Project. Bidders will be required to comply with 
all applicable statutes, regulations, etc., including those 
pertaining to the licensing of contractors, and the so-called 
``Kickback Statute'' (48 Stat. 948) and regulations issued pursuant 
thereto.
    7. Proposals will be accepted only from those prequalified 
bidders invited by the Owner to submit a proposal.
    8. Alternate Designs. The Owner reserves the right to confine 
its consideration of the several bids to one type of design 
regardless of alternate types of design which may be specified in 
the Plans and Specifications for Construction and offered in the 
Proposals.
    9. The time for Completion of Construction of the Project shall 
be as specified by the Engineer in the Proposal.
    10. Bid Bond. Each Proposal must be accompanied by a Bid Bond in 
the form attached or a certified check on a bank that is a member of 
the Federal Deposit Insurance Corporation, payable to the order of 
the Owner, in an amount equal to ten percent (10%) of the maximum 
bid price. Each Bidder agrees, provided its Proposal is one of the 
three low Proposals, that, by filing its Proposal together with such 
Bid Bond or check in consideration of the Owner's receiving and 
considering such Proposal, said Proposal shall be firm and binding 
upon each such Bidder and such Bid Bond or check shall be held by 
the Owner until a Proposal is accepted and a satisfactory 
Contractor's Bond is furnished (where required) by the successful 
Bidder and such acceptance has been approved by the Administrator, 
or for a period not to exceed sixty (60) days from the date 
hereinbefore set for the opening of Proposals, whichever period 
shall be the shorter. If such Proposal is not one of the three low 
Proposals, the Bid Bond or check will be returned in each instance 
within a period of ten (10) days to the Bidder furnishing same.
    11. Contractor's Bond. The successful Bidder will be required to 
execute two additional counterparts of the Proposal and, for a 
Contract in excess of $100,000, to furnish a Contractor's Bond in 
triplicate in the form attached hereto with sureties listed by the 
United States Treasury Department as Acceptable Sureties, in a penal 
sum not less than the contract price.
    12. Failure to Furnish Contractor's Bond. Should the successful 
Bidder fail or refuse to execute such counterparts or to furnish a 
Contractor's Bond (where required) within ten (10) days after 
written notification of the acceptance of the Proposal by the Owner, 
the Bidder will be considered to have abandoned the Proposal. In 
such event, the Owner shall be entitled (a) to enforce the bid bond 
in accordance with its terms, or (b) if a certified check has been 
delivered with the Proposal, to retain from the proceeds of the 
certified check the difference (not exceeding the amount of the 
certified check) between the amount of the Proposal and such larger 
amount for which the Owner may in good faith contract with another 
party to construct the Project. The term ``successful Bidder'' shall 
be deemed to include any Bidder whose Proposal is accepted after 
another Bidder has previously refused or has been unable to execute 
the counterparts or to furnish a satisfactory Contractor's Bond 
(where required.)
    13. Contract is Entire Agreement. The Contract to be effected by 
the acceptance of the Proposal shall be deemed to include the entire 
agreement between the parties thereto, and the Bidder shall not 
claim any modification thereof resulting from any representation or 
promise made at any time by any officer, agent or employee of the 
Owner or by any other person.
    14. Minor Irregularities. The Owner reserves the right to waive 
minor irregularities or minor errors in any Propose, if it appears 
to the Owner that such irregularities or errors were made through 
inadvertence. Any such irregularities or errors so waived must be 
corrected on the Proposal in which they occur prior to the 
acceptance thereof by the Owner.
    15. Rejection of Bids. The Owner reserves the right to reject 
any or all Proposals. The attention of Bidders is specially called 
to the desirability of a proper balance between prices for labor and 
materials and between the total prices for the respective 
Construction Units. Lack of such balance may be considered as a 
reason for rejecting a Proposal.
    16. Discrepancy in Unit Prices. Where the unit prices in the 
Contractor's Proposal are separated into three columns designated as 
``Labor,'' ``Materials'' and ``Labor and Materials,'' and where a 
discrepancy appears between the sum shown in the ``Labor and 
Materials'' column and the correct addition of the sums appearing in 
the ``Labor'' column and the ``Materials'' column, the correct 
addition of the sums appearing in the ``Labor'' column and the 
``Materials'' column shall control.
    17. Bidding and Acceptance. If the Project includes more than 
one substation, bidders may bid on one or more substations. The 
Owner may award (1) a contract for all of the substations on the 
basis of the low total bid or, (2) separate contracts for one or 
more substations based on the low bids for the respective 
substations.
    18. Definition of Terms. The terms ``Administrator,'' 
``Engineer,'' ``Supervisor,'' ``Project,'' ``Completion of 
Construction'' and ``Completion of the Project'' as used throughout 
this Contract shall be as defined in Article VI, Section 1, of the 
Contractor's Proposal.
    19. The Owner represents:
    a. If by provisions of the Contractor's Proposal the Owner shall 
have undertaken to furnish any materials for the construction of the 
Project, such materials are on hand at locations specified or if 
such materials are not on hand they will be made available by the 
Owner to the successful Bidder at the locations specified before the 
time such materials are required for construction.
    b. Title to the property on which the Project is to be 
constructed has been obtained.
    c. All funds necessary for prompt payment for the construction 
of the Project will be available.
    If the Owner shall fail to comply with any of the undertakings 
contained in the foregoing representations or if any of such 
representations shall be incorrect, the Bidder will be entitled to 
an extension of time of completion for a period equal to the delay, 
if any, caused by the failure of the Owner to comply with such 
undertakings or by any such incorrect representation; provided the 
Bidder shall have promptly notified the Owner in writing of its 
desire to extend the time of completion in accordance with the 
foregoing, and provided further that such extension, if any, of the 
time of completion shall be the sole remedy of the Bidder for the 
Owner's failure, because of conditions beyond the control and 
without the fault of the Owner, to furnish materials in accordance 
with subparagraph a. hereof.

________ Owner
By ________
________, 19____

Contractor's Proposal

(Proposal shall be submitted in ink or typewritten)
To: ________ (Hereinafter called the ``Owner'')

ARTICLE I--GENERAL

    Section 1. Offer to Construct. The undersigned (hereinafter 
called the ``Bidder'') hereby proposes to receive and install such 
materials and equipment as may hereinafter be specified to be 
furnished by the Owner, and to furnish all other materials and 
equipment, all machinery, tools, labor transportation and other 
means required to construct the rural electric project ________ in 
strict accordance with the Plans, Specifications for Construction 
and Construction Drawings for the prices hereinafter stated.
    Section 2. Materials and Equipment. The Bidder agrees to furnish 
and use in the construction of the Project under this Proposal, in 
the event the Proposal is accepted, only such materials and 
equipment as are included in the current ``List of Materials 
Acceptable for Use on Systems of REA Electrification Borrowers,'' 
including revisions adopted prior to the Bid Opening.
    Section 3. Owner-Furnished Materials. The Bidder understands and 
agrees that, if this Proposal is accepted, the Owner will furnish to 
the Bidder the material set forth in the attached ``List of Owner's 
Materials on Hand'' (see page 10) and the Bidder will give a receipt 
(see page 12) therefore in writing to the Owner. The Bidder, 
further, will on behalf of the Owner accept delivery of such of the 
materials set forth in the attached ``List of Materials Ordered by 
Owner but Not Delivered'' (see page 11) as may be subsequently 
delivered and will promptly forward to the Owner for payment the 
supplier's invoice, together with the Bidder's receipt in writing 
for such materials. The materials referred to are on hand at, or 
will be delivered to, the locations specified in the Lists and the 
Bidder will use such materials in constructing the Project.
    The value of the completed Construction Units certified by the 
Bidder each month pursuant to Article III, Section 1.a of this 
Proposal shall be reduced by an amount equal to the value of the 
materials installed by the Bidder during the preceding month which 
have been furnished by the Owner or the delivery of which has been 
accepted by the Bidder on behalf of the Owner. Only ninety percent 
(90%) of the remainder shall be paid prior to the Completion of the 
Project. The value of such materials shall be computed on the basis 
of the unit prices stated in the Lists. Materials, if any, not 
required for the Project, which have been furnished to the Bidder by 
the Owner or delivery of which has been accepted by the Bidder on 
behalf of the Owner, shall be returned to the Owner by the Bidder 
upon Completion of Construction of the Project. The value of all 
materials not installed in the Project nor returned to the Owner 
shall be deducted from the final payment to the Bidder.
    The Owner shall not be obligated to furnish materials in excess 
of the quantities, size, kind and type set forth in the attached 
Lists. If the Owner furnishes, and the Bidder accepts, materials in 
excess thereof, the values of such excess materials shall be their 
actual cost as stated by the Owner.
    Information on the shipping schedules of materials on the ``List 
of Materials Ordered by Owner But Not Delivered'' will be furnished 
to the Bidder as necessary during progress of the work. Upon 
delivery the Bidder shall promptly receive, unload, transport and 
handle all materials and equipment on the ``List of Materials 
Ordered by Owner But Not Delivered'' at its expense and shall be 
responsible for demurrage, if any.
    Section 4. Purchase of Materials Not Furnished by Owner. The 
Bidder will purchase all materials and equipment (other than owner-
furnished materials) outright and not subject to any conditional 
sales agreements, bailment, lease or other agreement reserving unto 
the seller any right, title or interest therein. All such materials 
and equipment shall become the property of the Owner when erected in 
place.
    Section 5. Proposal on Unit Basis. The Bidder understands and 
agrees that the various Construction Units on which bids are made 
are defined by symbols and descriptions in this Proposal, that all 
said bids are on a unit basis, and that the Owner may specify any 
number or combination of Construction Units that the Owner may deem 
necessary for the construction of the Project. Separate Construction 
Units are designated for each different arrangement which may be 
used in the construction of the Project. This Proposal is based on a 
consideration of each unit in place and includes only the materials 
listed on the corresponding Construction Drawings or description of 
unit where no drawing exists.
    Section 6. Familiarity with Conditions. The Bidder has made a 
careful examination of the site of the Project to be constructed and 
of the Plans, Specifications for Construction, Construction 
Drawings, and form of Contractor's Bond attached hereto, and has 
become informed as to the location and nature of the proposed 
construction, the transportation facilities, the kind and character 
of soil and terrain to be encountered, and the kind of facilities 
required before and during the construction of the Project, and has 
become acquainted with the labor conditions, state and local laws 
and regulations which would affect work on the proposed 
construction.
    Section 7. License. The Bidder warrants that a Contractor's 
License is ______, is not ______, required, and if required, it 
possesses Contractor's License No. ______ for the State of ______ in 
which the Project is located and said license expires on ______, 
19____.
    Section 8. The Bidder warrants that this Proposal is made in 
good faith and without collusion or connection with any person or 
persons bidding for the same work.
    Section 9. The Bidder warrants that it possesses adequate 
financial resources and agrees that in the event this Proposal is 
accepted and a Contractor's Bond is required, it will furnish a 
Contractor's Bond in the form attached hereto, in a penal sum not 
less than the maximum Contract price, with a surety or sureties 
listed by the United States Treasury Department as Acceptable 
Sureties.
    In the event that the surety or sureties on the performance bond 
delivered to the Owner contemporaneously with the execution of the 
Contractor on any bond or bonds delivered in substitution therefor 
or in addition thereto shall at any time become unsatisfactory to 
the Owner or the Administrator, the Bidder agrees to deliver to the 
Owner another or an additional bond.
    Section 10. Taxes. The unit prices for Construction Units in 
this Proposal include provisions for the payment of all monies which 
will be payable by the Bidder or the Owner in connection with the 
construction of the Project on account of taxes imposed by any 
taxing authority upon the sale, purchase or use of materials, 
supplies and equipment, or services or labor of installation 
thereof, to be incorporated in the Project as part of such 
Construction Units. The Bidder agrees to pay all such taxes, except 
taxes upon the sale, purchase or use of owner-furnished materials 
and it is understood that, as to owner-furnished materials, the 
values stated in the attached ``List of Owner's Materials on Hand'' 
and ``List of Materials Ordered by Owner But Not Delivered'' include 
taxes upon the sale, purchase or use of owner-furnished materials, 
if applicable. The Bidder will furnish to the appropriate taxing 
authorities all required information and reports pertaining to the 
Project, except as to the owner-furnished materials.
    Section 11. Changes in Quantities. The Bidder understands and 
agrees that the quantities called for in this Proposal are 
approximate, and that the total number of units upon which payment 
shall be made shall be as set forth in the inventory. If the Owner 
changes the quantity of any unit or units specified in this Proposal 
by more than 15%, and the materials cost to the Bidder is increased 
thereby to an extent which would not be adequately compensated by 
application of the unit prices in this Proposal to the revised 
quantity of such unit or units, such change, to the extent of the 
quantities of such units in excess of such 15%, shall be regarded as 
a change in the construction within the meaning of Article II, 
Section 1(d) of this Proposal. 

                                       List of Owner's Materials on hand                                        
----------------------------------------------------------------------------------------------------------------
                                                                       Catalog                 Unit     Extended
        Item\1\                    Description of material               No.     Quantity     price      price  
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Above Materials are Located at:                                                                                 
----------------------------------------------------------------------------------------------------------------
\1\Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3, the    
  value of these materials will be deducted from payments to the Bidder for completed Construction Units.       


                                                  List of Materials Ordered by Owner but Not Delivered                                                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Scheduled                                                                                  
          Item\1\              Supplier name and address      delivery     Description of material    Catalog No.   Quantity    Unit price     Extended 
                                                               date                                                                             price   
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Above Material to be Delivered to:                                                                                                                      
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\1\Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3, the value of these materials will be deducted  
  from payments to the Bidder for completed Construction Units.                                                                                         

ARTICLE II--CONSTRUCTION

    Section 1. Time and Manner of Construction.
    a. The Bidder agrees to commence construction of the Project on 
a date (hereinafter called the ``Commencement Date'') which shall be 
determined by the Engineer after notice in writing of approval of 
the Contract by the Administrator and notice in writing from the 
Bidder that the Bidder has sufficient materials to warrant 
commencement and continuation of construction, but in no event will 
the Commencement Date be later than ________ calendar days after 
date of approval of the Contract by the Administrator. The Bidder 
further agrees to prosecute diligently and to complete construction 
in strict accordance with the Plans, Specifications for Construction 
and Construction Drawings within ________ (________) calendar days 
(excluding Sundays) after Commencement Date: Provided, however, that 
the Bidder will not be required to perform any construction on such 
days when in the judgment of the Engineer snow, rain, or wind, or 
the results of snow, rain, or frost make it impracticable to perform 
any operation of construction and to the extent of the time lost due 
to the conditions described herein and approved in writing by the 
Engineer, the time of completion set out above will be extended if 
the Bidder makes a written request therefor to the Owner as provided 
in subsection b of this Section 1.
    b. The time for Completion of Construction shall be extended for 
the period of any reasonable delay which is due exclusively to 
causes beyond the control and without the fault of the Bidder, 
including acts of God, fires, floods, inability to obtain materials 
and acts or omissions of the Owner with respect to matters for which 
the Owner is solely responsible: Provided, however, that no such 
extension of time for completion shall be granted the Bidder unless 
within ten (10) days after the happening of any event relied upon by 
the Bidder for such an extension of time the Bidder shall have made 
a request therefore in writing to the Owner, and provided further 
that no delay in such time of completion or in the progress of the 
work which results from any of the above causes, except acts or 
omissions of the Owner, shall result in any liability on the part of 
the Owner.
    c. The sequence of construction shall be as set forth below, the 
numbers or names being the designations of substations or other 
major facilities (hereinafter called the ``Stations'') corresponding 
to the numbers or names shown on the maps attached hereto, or if no 
Stations are set forth below, the sequence of construction shall be 
as determined by the Bidder, subject to the approval of the 
Engineer. ________
    d. The Owner, acting through the Engineer and with the approval 
of the Administrator,1 may from time to time during the 
progress of the construction of the Project make such changes, 
additions to or subtractions from the Plans, Specifications for 
Construction, Construction Drawings, List of Materials and sequence 
of construction provided for in the previous paragraph which are 
part of the Contractor's Proposal as conditions may warrant: 
Provided, however, that if any change in the construction to be done 
shall require an extension of time, a reasonable extension will be 
granted if the Bidder shall make a written request therefor to the 
Owner within ten (10) days after any such change is made. And 
provided further, that if the cost to the Bidder of construction of 
the Project shall be materially increased by any such change or 
addition, the Owner shall pay the Bidder for the reasonable cost 
thereof in accordance with a Construction Contract Amendment signed 
by the Owner and the Bidder and approved by the Administrator,2 
but no claim for additional compensation for any such change or 
addition will be considered unless the Bidder shall have made a 
written request therefor to the Owner prior to the commencement of 
work in connection with such change or addition.
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    \1\As long as the total price of this contract including all 
amendments is less than 120 percent of the original contract price 
as stated in the acceptance hereto, amendments executed on REA Form 
238 are not subject to the approval of the Administrator. Whenever 
an amendment to this contract causes the total amended contract to 
exceed 120 percent of the original contract price, that amendment 
and all subsequent amendments to this contract shall be made subject 
to the approval of the Administrator.
    \2\See Footnote 1.
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    e. The Bidder will not perform any work hereunder on Sundays 
unless there is urgent need for such Sunday work and the Owner 
consents thereto in writing. The time for completion specified in 
subsection a of this Section 1 shall not be affected in any way by 
inclusion of this subsection nor by the Owner's consent or lack of 
consent to Sunday work hereunder.
    Section 2. Environmental Protection. The Bidder shall perform 
work in such a manner as to maximize preservation beauty, 
conservation of natural resources and minimize marring and scarring 
of the landscape and silting of streams. The Bidder shall not 
deposit trash in streams or waterways, and shall not deposit 
herbicides or other chemicals or their containers in or near 
streams, waterways or pastures. The Bidder shall follow, under the 
general direction of the Engineer, the criteria relating to 
environmental protection as specified herein by the Engineer.
    Section 3. The Bidder agrees that in the event this Proposal is 
accepted it will make available for use in connection with the 
proposed construction all necessary tools and equipment and 
qualified superintendents and foremen.
    Section 4. Changes in Construction. The Bidder agrees to make 
changes in construction previously installed in the Project by the 
Bidder as required by the Owner. The compensation for such changes 
shall be as agreed upon in writing by the Bidder and the Owner prior 
to commencement of work in connection with such changes.
    No payment shall be made to the Bidder for materials or labor 
involved in correcting errors or omissions on the part of the Bidder 
which result in construction not in accordance with the Plans and 
Specifications for Construction.
    Section 5. Construction Not in Proposal. The Bidder also agrees 
that when it is necessary to construct units not shown in the 
Proposal it will construct such units for a price arrived at as 
follows:
    a. The cost of materials shall be determined by the invoices.
    b. The cost of labor shall be the reasonable cost thereof, as 
agreed upon by the Owner and Bidder prior to the commencement of 
work.
    Section 6. Supervision and Inspection.
    a. The Bidder shall cause the construction work on the Project 
to receive constant supervision by a competent superintendent 
(hereinafter called the ``Superintendent'') who shall be present at 
all times during working hours where construction is being carried 
on. The Bidder shall also employ, in connection with the 
construction of the Project, capable, experienced and reliable 
foremen and such skilled workmen as may be required for the various 
classes of work to be performed. Directions and instructions given 
to the Superintendent shall be binding upon the Bidder.
    b. The Owner reserves the right to require the removal from the 
Project of any employee of the Bidder if in the judgment of the 
Owner such removal shall be necessary in order to protect the 
interest of the Owner. The Owner or the Supervisor, if any, shall 
have the right to require the Bidder to increase the number of its 
employees and to increase or change the amount or kind of tools and 
equipment if at any time the progress of the work shall be 
unsatisfactory to the Owner or Supervisor; but the failure of the 
Owner or Supervisor to give any such directions shall not relieve 
the Bidder of its obligations to complete the work within the time 
and in the manner specified in this Proposal.
    c. The manner of construction of the Project, and all materials 
and equipment used therein, shall be subject to the inspection, 
tests and approval of the Owner and the Administrator, and the 
Bidder shall furnish all information required by the Owner or by the 
Administrator concerning the nature or source of any materials 
incorporated or to be incorporated in the Project. The Owner and the 
Administrator shall have the right to inspect all payrolls, invoices 
of materials, and other data and records of the Bidder and of any 
subcontractor, relevant to the construction of the Project. The 
Bidder shall provide all reasonable facilities necessary for such 
inspection and tests. The Bidder shall have an authorized agent 
accompany the Engineer when final inspection is made and, if 
requested by the owner, when any other inspection is made.
    d. In the event that the Owner, or the Administrator, shall 
determine that the construction contains or may contain numerous 
defects, it shall be the duty of the Bidder and the Bidder's Surety 
or Sureties, if any, to have an inspection made by an engineer 
approved by the Owner and the Administrator for the purpose of 
determining the exact nature, extent and location of such defects.
    e. The Engineer may recommend to the Owner that the Bidder 
suspend the work wholly or in part for such period or periods as the 
Engineer may deem necessary due to unsuitable weather or such other 
conditions as are considered unfavorable for the satisfactory 
prosecution of the work or because of the failure of the Bidder to 
comply with any of the provisions of the Contract: Provided, 
however, that the Bidder shall not suspend work pursuant to this 
provision without written authority from the Owner so to do. The 
time of completion hereinabove set forth shall be increased by the 
number of days of any such suspension, except when such suspension 
is due to the failure of the Bidder to comply with any of the 
provisions of this Contract. In the event that work is suspended by 
the Bidder with the consent of the Owner, the Bidder before resuming 
work shall give the Owner at least twenty-four (24) hours notice 
thereof in writing.
    Section 7. Defective Materials and Workmanship.
    a. The acceptance of any materials, equipment (except owner-
furnished materials) or any workmanship by the Owner or the Engineer 
shall not preclude the subsequent rejection thereof if such 
materials, equipment, or workmanship shall be found to be defective 
after delivery or installation, and any such materials, equipment or 
workmanship found defective before final acceptance of the 
construction shall be replaced or remedied, as the case may be, by 
and at the expense of the Bidder. Any such condemned material or 
equipment shall be immediately removed from the site of the Project 
by the Bidder at the Bidder's expense. The Bidder shall not be 
entitled to any payment hereunder so long as any defective 
materials, equipment or workmanship in respect to the Project, of 
which the Bidder shall have had notice, shall not have been replaced 
or remedied, as the case may be.
    b. Notwithstanding any certificate which may have been given by 
the Owner or the Engineer, if any materials, equipment (except 
owner-furnished materials) or any workmanship which does not comply 
with the requirements of this Contract shall be discovered within 
one (1) year after Completion of Construction of the Project, the 
Bidder shall replace such defective materials or equipment or remedy 
any such defective workmanship within thirty (30) days after notice 
in writing of the existence thereof shall have been given by the 
Owner. If the Bidder shall be called upon to replace any defective 
materials or equipment or to remedy defective workmanship as herein 
provided, the Owner, if so requested by the Bidder shall deenergize 
that portion of the Project involved in such work. In the event of 
failure by the Bidder so to do, the Owner may replace such defective 
materials or equipment or remedy such defective workmanship, as the 
case maybe, and in such event the Bidder shall pay to the Owner the 
cost and expense thereof.

ARTICLE III--PAYMENTS AND RELEASE OF LIENS

    Section 1. Payments to Bidder.
    a. Within the first fifteen (15) days of each calendar month, 
the Owner shall make partial payment to the Bidder for construction 
accomplished during the preceding calendar month on the basis of 
completed Construction Units furnished and certified to by the 
Bidder, recommended by the Engineer, and approved by the Owner 
solely for the purposes of payment: Provided, however, that such 
approval shall not be deemed approval of the workmanship or 
materials. Only ninety percent (90%) of each such estimate approved 
during the construction of the Project shall be paid by the Owner to 
the Bidder prior to Completion of the Project: Provided, however, 
that at any time after work, which, in the sole determination of the 
Engineer, amounts to fifty percent (50%) of the maximum Contract 
price has been completed, the Owner may elect, in lieu of paying 
ninety percent (90%) of each such subsequent estimate, to pay each 
such subsequent estimate in full. Upon completion by the Bidder of 
the construction of the Project, the Engineer will prepare an 
inventory of the Project showing the total number and character of 
Construction Units and, after checking such inventory with the 
Bidder, will certify it to the Owner together with a certificate of 
the total cost of the construction performed. Upon the approval of 
such certificates by the Owner and the Administrator, the Owner 
shall make payment to the Bidder of all amounts to which the Bidder 
shall be entitled thereunder which shall not have been paid, 
provided, however, that such final payment shall be made not later 
than ninety (90) days after the date of Completion of Construction 
of the Project as specified in the Certificate of Completion, unless 
withheld because of the fault of the Bidder.
    b. The Bidder shall be paid on the basis of the number of 
Construction Units actually installed at the direction of the Owner 
shown by the inventory: Provided, however, that the total cost shall 
not exceed the maximum Contract price for the construction of the 
Project as set forth in the Acceptance, unless such excess shall 
have been approved in writing by the Administrator.
    c. Notwithstanding the provisions of Section 1a above, the 
Bidder may, by giving written notice thereof to the Owner, elect to 
receive payment in full for any Station of the Project upon:
    (1) Completion of construction of such Station as certified by 
the Engineer and approved by the Owner and the Administrator;
    (2) Submission to the Owner and the Administrator of the 
releases of lien and the certificate referred to in Section 2 
hereof;
    (3) Approval by the Owner and the Administrator of the inventory 
in respect of such Station; and
    (4) Submission to the Owner and the Administrator of the consent 
in writing by the Surety or Sureties, if any, on the Contractor's 
Bond to payment in full for such Station prior to Completion of the 
Project.
    d. Interest at the rate of ____ percent\3\ (____%) per annum 
shall be paid by the Owner to the Bidder on all unpaid balances due 
on monthly estimates, commencing fifteen (15) days after the due 
date; provided the delay in payment beyond the due date is not 
caused by any condition within the control of the Bidder. The due 
date for purposes of such monthly payment shall be the fifteenth day 
of each calendar month provided (1) the Bidder on or before the 
fifth day of such month shall have submitted its certification of 
Construction Units completed during the preceding month and (2) the 
Owner on or before the fifteenth day of such month shall have 
approved such certification. If, for reasons not due to the Bidder's 
fault, such approval shall not have been given on or before the 
fifteenth day of such month, the due date for purposes of this 
subsection d shall be the fifteenth day of such month 
notwithstanding the absence of the approval of the certification.
---------------------------------------------------------------------------

    \3\The Owner shall insert a rate equal to the lowest ``Prime 
Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued.
---------------------------------------------------------------------------

    e. Interest at the rate of ____ percent4 (____%) per annum 
shall be paid by the Owner to the Bidder on the final payment for 
the Project or any completed Station thereof, commencing fifteen 
(15) days after the due date. The due date for purposes of such 
final payment shall be the date of approval by the Administrator of 
all of the documents requiring such approval, as a condition 
precedent to the making of final payment, or ninety (90) days after 
the date of Completion of Construction of the Project, as specified 
in the Certificate of Completion, whichever date is earlier.
---------------------------------------------------------------------------

    \4\See Footnote 3.
---------------------------------------------------------------------------

    f. No payment shall be due while the Bidder is in default in 
respect of any of the provisions of this Contract and the Owner may 
withhold from the Bidder the amount of any claim by a third party 
against either the Bidder or the Owner based upon an alleged failure 
of the Bidder to perform the work hereunder in accordance with the 
provisions of this Contract.
    Section 2. Release of Liens and Certificate of Contractor. (See 
sample REA Form 224, Waiver and Release of Lien and sample REA Form 
231, Certificate of Contractor.) Upon the completion by the Bidder 
of the construction of the Project (or any Station thereof if the 
Bidder shall elect to receive payment in full for any Station when 
completed as provided above) but prior to final payment to the 
Bidder, the Bidder shall deliver to the Owner, in duplicate, 
releases of all liens and of rights to claim any lien, in the form 
attached hereto from all manufacturers, materialmen, and 
subcontractors furnishing services or materials for the Project or 
such Station and a certificate in the form attached hereto to the 
effect that all labor used on or for the Project or such Station has 
been paid and that all such releases have been submitted to the 
Owner for approval.
    Section 3. Payments to Materialmen and Subcontractors. The 
Bidder shall pay each materialman and each subcontractor, if any, 
within five (5) days after receipt of any payment from the Owner, 
the amount thereof allowed the Bidder for and on account of 
materials furnished or construction performed by each materialman or 
each subcontractor.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE BIDDER

    Section 1. Protection to Persons and Property. The Bidder shall 
at all times take all reasonable precautions for the safety of 
employees on the work and of the public, and shall comply with all 
applicable provisions of Federal, State, and Municipal safety laws 
and building and construction codes, as well as the safety rules and 
regulations of the Owner. All machinery and equipment and other 
physical hazards shall be guarded in accordance with the ``Manual of 
Accident Prevention in Construction'' of the Associated General 
Contractors of America unless such instructions are incompatible 
with Federal, State, or Municipal laws or regulations.
    The following provisions shall not limit the generality of the 
above requirements:
    a. The Bidder shall at no time and under no circumstances cause 
or permit any employee of the Bidder to perform any work upon 
energized lines, or upon poles carrying energized lines, unless 
otherwise specified in the Notice and Instructions to Bidders.
    b. The Bidder shall so conduct the construction of the Project 
as to cause the least possible obstruction of public highways.
    c. The Bidder shall provide and maintain all such guard lights 
and other protection for the public as may be required by applicable 
statutes, ordinances and regulations or by local conditions.
    d. Temporary water, light, power and other utility service shall 
be arranged for by the Bidder for construction purposes at its own 
expense.
    e. The Bidder shall do all things necessary or expedient to 
properly protect any and all adjacent lines, highways and any and 
all property of others from damage, and in the event that any such 
lines, highways or other property are damaged in the course of 
construction of the Project, the Bidder shall at its own expense 
restore any or all of such damaged property immediately to as good a 
state as before such damage occurred.
    f. The Project, from the commencement of work to completion, or 
to such earlier date or dates when the Owner may take possession and 
control in whole or in part as hereinafter provided shall be under 
the charge and control of the Bidder and during such period of 
control by the Bidder all risks in connection with the construction 
of the Project and the materials to be used therein shall be borne 
by the Bidder. The Bidder shall make good and fully repair all 
injuries and damages to the Project or any portion thereof under the 
control of the Bidder by reason of any act of God or other casualty 
or cause whether or not the same shall have occurred by reason of 
the Bidder's negligence.
    (i) To the maximum extent permitted by law, Bidder shall defend, 
indemnify, and hold harmless Owner and Owner's directors, officers, 
and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Bidder's employees) and loss, damage to or destruction of 
Owner's property or the property of any other person or entity 
(including but not limited to Bidder's property) in any manner 
arising out of or connected with the Contract, or the materials or 
equipment supplied or services performed by Bidder, its 
subcontractors and suppliers of any tier. But nothing herein shall 
be construed as making Bidder liable for any injury, death, loss, 
damage, or destruction caused by the sole negligence of Owner.
    (ii) To the maximum extent permitted by law, Bidder shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Bidder, its subcontractors and suppliers of 
any tier, and from all losses, demands, and causes of action arising 
out of any such lien or claim. Bidder shall promptly discharge or 
remove any such lien or claim by bonding, payment, or otherwise and 
shall notify Owner promptly when it has done so. If Bidder does not 
cause such lien or claim to be discharged or released by payment, 
bonding, or otherwise, Owner shall have the right (but shall not be 
obligated) to pay all sums necessary to obtain any such discharge or 
release and to deduct all amounts so paid from the amount due 
Bidder.
    (iii) Bidder shall provide to Owner's satisfaction evidence of 
Bidder's ability to comply with the indemnification provisions of 
subparagraphs i and ii above, which evidence may include but may not 
be limited to a bond or liability insurance policy obtained for this 
purpose through a licensed surety or insurance company.
    g. Any and all excess earth, rock, debris, underbrush and other 
useless material shall be removed by the Bidder from the site of the 
Project as rapidly as practicable as the work progresses.
    h. Upon violation by the Bidder of any of the provisions of this 
Section, after written notice of such violation given to the Bidder 
by the Engineer or the Owner, the Bidder shall immediately correct 
such violation. Upon failure of the Bidder so to do the Owner may 
correct such violation at the Bidder's expense: Provided, however, 
that the Owner may, if it deems it necessary or advisable, correct 
such violation at the Bidder's expense without such prior notice to 
the Bidder.
    i. The Bidder shall submit to the Owner monthly reports in 
duplicate of all accidents, giving such data as may be prescribed by 
the Owner.
    Section 2. Insurance. The Bidder shall take out and maintain 
throughout the contract period insurance of the following types and 
minimum amounts:
    (a) Workers' compensation and employers' liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to the workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    (b) Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    (c) Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million per person and $1 million per occurrence, and property 
damage limits of $1 million for each occurrence. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    The Owner shall have the right at any time to require public 
liability insurance and property damage liability insurance greater 
than those required in subsection ``b'' and ``c'' of this Section. 
In any such event, the additional premium or premiums payable solely 
as the result of such additional insurance shall be added to the 
Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 3. Delivery of Possession and Control to Owner.
    a. Upon written request of the Owner the Bidder shall deliver to 
the Owner full possession and control of any portion of the Project 
provided the Bidder shall have been paid at least ninety percent 
(90%) of the cost of construction of such portion. Upon such 
delivery of the possession and control of any portion of the Project 
to the Owner, the risk and obligations of the Bidder as set forth in 
Article IV, Section 1f hereof with respect to such portion of the 
Project so delivered to the Owner shall be terminated: Provided, 
however, that nothing herein contained shall relieve the Bidder of 
any liability with respect to defective materials and workmanship as 
contained in Article II, Section 6 hereof.
    b. Where the construction of a Station as hereinbefore defined 
in Article II, Section lc and Article III, Section lc shall have 
been completed by the Bidder, the Owner agrees, after receipt of a 
written request from the Bidder, to accept delivery of possession 
and control of such Station upon the issuance by the Engineer of a 
written statement that the Station has been inspected and found 
acceptable by the Engineer. Upon such delivery of the possession and 
control of any such Station to the Owner, the risk and obligations 
of the Bidder as set forth in Article IV, Section If hereof with 
respect to such Station so delivered to the Owner shall be 
terminated: Provided, however, that nothing herein contained shall 
relieve the Bidder of any liability with respect to defective 
materials or workmanship as contained in Article II, Section 6 
hereof.
    Section 4. Assignment of Guarantees. All guarantees of materials 
and workmanship running in favor of the Bidder shall be transferred 
and assigned to the Owner prior to the time the Bidder receives 
final payment.

ARTICLE V--REMEDIES

    Section 1. Completion on Bidder's Default. If default shall be 
made by the Bidder or by any subcontractor in the performance of any 
of the terms of this Proposal, the Owner, without in any manner 
limiting its legal and equitable remedies in the circumstances, may 
serve upon the Bidder and the Surety or Sureties, if any, upon the 
Contractor's Bond or Bonds a written notice requiring the Bidder to 
cause such default to be corrected forthwith. Unless within twenty 
(20) days after the service of such notice upon the Bidder such 
default shall be corrected or arrangements for the correction 
thereof satisfactory, to both the Owner and the Administrator shall 
be made by the Bidder or its Surety or Sureties, if any, the Owner 
may take over the construction of the Project and prosecute the same 
to completion by Contract or otherwise for the account and at the 
expense of the Bidder, and the Bidder and its Surety or Sureties, if 
any, shall be liable to the Owner for any cost or expense in excess 
of the Contract price occasioned thereby. In such event the Owner 
may take possession of and utilize, in completing the construction 
of the Project, any materials, tools, supplies, equipment, 
appliances, and plant belonging to the Bidder or any of its 
subcontractors, which may be situated at the site of the Project. 
The Owner in such contingency may exercise any rights, claims or 
demands which the Bidder may have against third persons in 
connection with this Contract and for such purpose the Bidder does 
hereby assign, transfer and set over unto the Owner all such rights, 
claims and demands.
    Section 2. Liquidated Damages. The time of the Completion of 
Construction of the Project is of the essence of the Contract. 
Should the bidder neglect, refuse or fail to complete the 
construction within the time herein agreed upon, after giving effect 
to extensions of time, if any, herein provided, then, in that event 
and in view of the difficulty of estimating with exactness damages 
caused by such delay, the Owner shall have the right to deduct from 
and retain out of such moneys which may be then due, or which may 
become due and payable to the Bidder the sum of ________ dollars 
(________) per day for each and every day that such construction is 
delayed on its completion beyond the specified time, as liquidated 
damages and not as a penalty; if the amount due and to become due 
from the Owner to the Bidder is insufficient to pay in full any such 
liquidated damages, the Bidder, shall pay to the Owner the amount 
necessary to effect such payment in full: Provided, however, that 
the owner shall promptly notify the Bidder in writing of the manner 
in which the amount retained, deducted or claimed as liquidated 
damages was computed.
    Section 3. Cumulative Remedies. Every right or remedy herein 
conferred upon or reserved to the Owner or the Government or the 
Administrator shall be cumulative, shall be in addition to every 
right and remedy now or hereafter existing at law or in equity or by 
statute and the pursuit of any right or remedy shall not be 
construed as an election: Provided, however, that the provisions of 
Section 2 of this Article shall be the exclusive measure of damages 
for failure by the Bidder to complete the construction of the 
Project within the time herein agreed upon.

ARTICLE VI--MISCELLANEOUS

    Section 1. Definitions.
    a. The term Administrator shall mean the Administrator of the 
Rural Electrification Administration of the United States of America 
and his duly authorized representatives or any other person in whom 
or authority in which may be vested the duties and functions which 
the Administrator is now authorized by law to perform.
    b. The term Engineer shall mean the engineer employed by the 
Owner, with the approval of the Administrator, to provide 
engineering services for the Project, and said Engineer's duly 
authorized assistants and representatives.
    c. The term Supervisor shall mean the person, if any, appointed 
by the Administrator as the representative of the Government under 
the provisions of the Loan Contract providing for such appointment 
in special cases. The term is limited to such special representative 
of the Government, if any, who is responsible exclusively to the 
Administrator and does not refer to the Manager or any other person 
employed by the Owner and responsible to it.
    d. The term Project shall mean the substations or other major 
facilities described in the Plans, Specifications for Construction, 
and Construction Drawings.
    e. The term Completion of Construction shall mean full 
performance by the Bidder of the Bidder's obligations under the 
Contract and all amendments and revisions thereof except the 
Bidder's obligations in respect of (1) Releases of Liens and 
Certificate of Contractor under Article III, Section 2 hereof, (2) 
the inventory referred to in Article III, Section I hereof, and (3) 
other final documents. The term ``Completion of the Project'' shall 
mean full performance by the Bidder of the Bidder's obligations 
under the Contract and all amendments and revisions thereof. The 
Certificate of Completion, signed by the Engineer and approved in 
writing by the Owner and the Administrator, shall be the sole and 
conclusive evidence as to the date of Completion of Construction and 
as to the fact of Completion of the Project.
    Section 2. Materials and Supplies. In the performance of this 
contract there shall be furnished only such unmanufactured articles, 
materials, and supplies as have been mined or produced in the United 
States, Mexico, or Canada, and only such manufactured articles, 
materials, and supplies as have been manufactured in the United 
States substantially all from articles, materials, or supplies 
mined, produced or manufactured, as the case may be, in the United 
States, Mexico, or Canada; provided that other articles, materials, 
or supplies may be used in the event and to the extent that the 
Administrator shall expressly in writing authorize such use pursuant 
to the provisions of the Rural Electrification Act of 1938, being 
Title IV of Public Resolution No. 122, 75th Congress, approved June 
21, 1938. The Seller agrees to submit to the Purchaser such 
certificates with respect to compliance with the foregoing provision 
as the Administrator from time to time may require.
    Section 3. Patent Infringement. The Bidder shall save harmless 
and indemnify the Owner from any and all claims, suits and 
proceedings for the infringement of any patent or patents covering 
any materials or equipment used in construction of the Project.
    Section 4. Permits for Explosives. All permits necessary for the 
handling or use of dynamite or other explosives in connection with 
the construction of the Project shall be obtained by and at the 
expense of the Bidder.
    Section 5. Compliance with Statutes and Regulations. The Bidder 
shall comply with all applicable statutes, ordinances, rules, and 
regulations pertaining to the work. The Bidder acknowledges that it 
is familiar with the Rural Electrification Act of 1936, as amended, 
the so-called ``Kick-Back'' Statute (48 Stat. 948), and regulations 
issued pursuant thereto, and 18 U.S.C. Secs. 287, 1001, as amended. 
The Bidder understands that the obligations of the parties hereunder 
are subject to the applicable regulations and orders of Governmental 
Agencies having jurisdiction in the premises.
    Section 6. Equal Opportunity Provisions.
    a. Bidder's Representations.
    The Bidder represents that:
    It has ______, does not have ______, 100 or more employees, and 
if it has, that it has ______, has not ______, furnished the Equal 
Employment Opportunity-Employers Information Report EEO-1, Standard 
Form 100, required of employers with 100 or more employees pursuant 
to Executive Order 11246 and Title VII of the Civil Rights Act of 
1964.
    The Bidder agrees that it will obtain, prior to the award of any 
subcontract for more than $10,000 hereunder to a subcontractor with 
100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100.
    The Bidder agrees that if it has 100 or more employees and has 
not submitted a report on Standard Form 100 for the current 
reporting year and that if this Contract will amount to more than 
$10,000, the Bidder will file such report, as required by law, and 
notify the Owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    b. Equal Opportunity Clause. During the performance of this 
Contract, the Bidder agrees as follows:
    (1) The Bidder will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex or 
national origin. The Bidder will take affirmative action to ensure 
that applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex or 
national origin. Such action shall include, but not be limited to, 
the following: Employment, upgrading, demotion or transfer; 
recruitment or recruitment advertising; layoff or termination; rates 
of pay or other forms of compensation; and selection for training, 
including apprenticeship. The Bidder agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided setting forth the provisions of this Equal 
Opportunity Clause.
    (2) The Bidder will, in all solicitations or advertisements for 
employees placed by or on behalf of the Bidder, state that all 
qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex or national origin.
    (3) The Bidder will send to each labor union or representative 
of workers with which it has a collective bargaining agreement or 
other contract or understanding, a notice to be provided advising 
the said labor union or workers' representatives of the Bidder's 
commitments under this section, and shall post copies of the notice 
in conspicuous places available to employees and applicants for 
employment.
    (4) The Bidder will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and of the rules, regulations and 
relevant orders of the Secretary of Labor.
    (5) The Bidder will furnish all information and reports required 
by Executive Order 11246 of September 24, 1965, and by rules, 
regulations and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations and orders.
    (6) In the event of the Bidder's noncompliance with the Equal 
Opportunity Clause of this Contract or with any of the said rules, 
regulations or orders, this Contract may be cancelled, terminated or 
suspended in whole or in part and the Bidder may be declared 
ineligible for further Government contracts or federally assisted 
construction contracts in accordance with procedures authorized in 
Executive Order 11246 of September 24, 1965, and such other 
sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24, 1965, or by rule, regulation 
or order of the Secretary of Labor, or as otherwise provided by law.
    (7) The Bidder will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations or orders of the Secretary of Labor issued pursuant to 
Section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Bidder will take such action with respect to any subcontractor 
purchase order as the administering agency may direct as a means of 
enforcing such provisions, including sanctions for noncompliance: 
Provided, however, That in the event a Bidder becomes involved in, 
or is threatened with, litigation with a subcontractor or vendor as 
a result of such direction by the administering agency, the Bidder 
may request the United States to enter into such litigation to 
protect the interests of the United States.
    c. Certificate of Nonsegregated Facilities. The Bidder certifies 
that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Bidder certifies further that it will not maintain or provide for 
its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Bidder agrees that a breach of this 
certification is a violation of the Equal Opportunity Clause in this 
Contract. As used in this certification, the term ``segregated 
facilities'' means any waiting room, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Bidder agrees that (except where it has obtained 
identical certifications from proposed subcontractors for specific 
time periods) it will obtain identical certifications from proposed 
subcontractors prior to the award of subcontracts exceeding $10,000 
which are not exempt from the provisions of the Equal Opportunity 
Clause, and that it will retain such certifications in its files.
    Section 7. Franchises. The Bidder shall be under no obligation 
to obtain or assist in obtaining: Any franchises, authorizations, 
permits or approvals required to be obtained by the Owner from 
Federal, State, County, Municipal or other authorities; or any 
agreements between the Owner and third parties with respect to any 
matters incident to the construction and operation of the Project.
    Section 8. Nonassignment of Contract. The Bidder shall perform 
directly and without subcontracting not less than twenty-five per 
centum (25%) of the construction of the Project, to be calculated on 
the basis of the total Contract price. The Bidder shall not assign 
the Contract effected by an acceptance of this Proposal or any 
interest in any funds that may be due or become due hereunder or 
enter into any contract with any person, firm or corporation for the 
performance of the Bidder's obligations hereunder or any part 
thereof, without the approval in writing of the Owner and of the 
Surety and Sureties, if any, on any bond furnished by the Bidder for 
the faithful performance of the Bidder's obligations hereunder. If 
the Bidder, with the consent of the Owner and any Surety or Sureties 
on the Contractor's Bond or Bonds, shall enter into a subcontract 
with any subcontractor for the performance of any part of this 
Contract, the Bidder shall be as fully responsible to the Owner and 
the Government for the acts and omissions of such subcontractor and 
of persons employed by such subcontractor as the Bidder would be for 
its own acts and omissions and those of persons directly employed by 
it.
    Section 9. Extension to Successors and Assigns. Each and all of 
the covenants and agreements herein contained shall extend to and be 
binding upon the successors and assigns of the parties hereto.
    Section 10. Contractor. Upon acceptance of this Proposal, the 
successful Bidder shall be the Contractor and all references in the 
Proposal to the Bidder shall apply to the Contractor.
    Section 11. Approval by the Administrator. No acceptance of this 
Proposal shall become effective until approved in writing by the 
Administrator: Provided, however, that no obligations shall arise 
hereunder unless such approval is given within forty-five (45) days 
from the date of acceptance by the Owner.

______ (Bidder)
By ______ (President)
______ (Address)
ATTEST: ______ (Secretary)
Date ______

    The Proposal must be signed with the full name of the Bidder. If 
the Bidder is a partnership, the Proposal must be signed in the 
partnership name by a partner. If the Bidder is a corporation, the 
Proposal must be signed in the corporate name by a duly authorized 
officer and the corporate seal affixed and attested by the Secretary 
of the Corporation.

Specifications for Construction

    Section 1. Scope of Work. The work covered by this Proposal 
embraces the complete construction of one or more substations or 
other major facilities as specified in the Acceptance, any omissions 
or discrepancies notwithstanding. All material furnished by the 
Bidder shall be new and in conformance with the Specifications for 
Construction. All construction work shall be done in a thorough and 
workmanlike manner in accordance with the Plans, Specifications for 
Construction and Construction Drawings. Deviations from the Plans, 
Specifications for Construction, and Construction Drawings shall not 
be permitted except upon the written permission of the Owner given 
with the approval of the Administrator.
    This contract does not include ______ which is to be done by 
others.
    Section 2. Materials. It is the intent of these specifications 
that insofar as materials required are included in the Rural 
Electrification Administration ``List of Materials Acceptable for 
use on Systems of REA Electrification Borrowers,'' such materials 
only shall be used. In the event that any materials are required 
beyond the scope of the ``List of Materials Acceptable for use on 
Systems of REA Electrification Borrowers,'' specifications for such 
materials will be included on the drawings or in a supplement to 
these specifications.
    Section 3. Drawings. The Drawings and Specifications 
collectively, show the specifications of the material and equipment 
shown thereon, and include schedules of conduit, cable and other 
items not readily ascertained from the picture drawings. Such 
schedules show the quantities, sizes, types and other pertinent 
information; method of installation, and construction details are 
indicated clearly. The drawings and specifications in the attached 
List of Drawings are made a part of these contract Specifications.
    Section 4. Description of Construction Units. Each Construction 
Unit consists of a complete installation of the designated portion 
of a substation or switching station as specified on the drawings, 
together with connections to associated equipment. Each Construction 
Unit represents all labor and material including necessary 
accessories completely installed and tested in satisfactory 
operation. Full identification of each Construction Unit and all 
necessary specifications of the installation shall be shown on the 
drawings.
    Items of material in each Construction Unit shall be of the 
designated size, rating, type, voltage, or other specification in 
accordance with the drawings. The bill of material drawing for each 
station should contain adequate identification of the Construction 
Units under which the material is to be installed and should show 
what items of material may be partly or entirely found in the lists 
of owner-furnished materials.
    All items of equipment, unless otherwise specified, are mounted 
on a structure which shall be a Construction Unit of Group A. Each 
Construction Unit shall be designated by the letter of the Group to 
which it belongs and an identifying number. The same item of 
equipment shall carry the same Construction Unit designation in all 
the stations. Items of equipment designated by the same Construction 
Unit in one station shall be of only one kind as to voltage, type 
and other specifications. The bid sheet for each station shall be 
prepared separately from other stations and shall contain all unit 
prices for Construction Units contained in the station. It is 
intended that in all cases the ``Name and Description of 
Construction Unit'' column of the Bid Sheets shall contain 
sufficient information to identify the Construction Unit.
    Additional description to one or more of the Groups may be 
provided by the Engineer if deemed necessary to clarify the intent 
of these Specifications for Construction.
    Group A. Structures. A Construction Unit consists of a 
structure, or structures, with bus supports including insulators and 
fittings, buses, conductors and overhead ground wires to adjacent 
structures within the station, grounding material to connect 
equipment with the ground bus, and associated material including 
mounting brackets, supports for equipment, clamps and connectors, 
all as specified in the drawings.
    Group B. Three-Pole Group Operated Air Break Switches. A 
Construction Unit consists of one 3-pole group operated air break 
switch with all accessories and operating mechanisms as specified in 
the drawings.
    Group C. Lightning Arresters. A Construction Unit consists of 
one single-phase lightning arrester.
    Group D. Single Pole Disconnecting Switches. A Construction Unit 
consists of one single pole disconnecting or by-pass switch as 
specified in the drawings. If a fuse disconnect switch is specified, 
the fuse is included with the switch.
    Group E. Oil Circuit Breakers. A Construction Unit consists of 
one complete three-phase power circuit breaker complete with 
supporting frame and control cabinet, unless shown otherwise in the 
drawings, mounted as specified in the drawings.
    Group F. Oil Circuit Reclosers. A Construction Unit consists of 
a complete single-phase or three-phase oil circuit recloser as 
specified in the drawings.
    Group G. Meters, Relays and Instrument Transformers. A 
Construction Unit consists of one meter, relay, potential 
transformer or current transformer.
    Group H. Transformers. A Construction Unit consists of one power 
transformer or one station service transformer either single-phase 
or three-phase as specified in the drawings.
    Group I. Voltage Regulators. A Construction Unit consists of one 
single-phase or three-phase voltage regulator as specified in the 
drawings.
    Group J. Communications and Supervisory Control Equipment. A 
Construction Unit consists of carrier current equipment, microwave, 
or other types of communications and supervisory control equipment 
as specified in the drawings.
    Group K. Conduit and Cable. A Construction Unit consists of the 
wire, cable, conduit and accessories necessary to complete the 
installation of equipment in accordance with the specifications and 
drawings, where such installation has not been included in other 
Groups.
    Group L. Foundations. A Construction Unit consists of concrete 
footings and foundations except for the fence, as specified in the 
drawings.
    Group M. Site Preparation. A Construction Unit consists of 
clearing, grading, drainage work, and surfacing, as specified in the 
drawings.
    Group N. Fence. A Construction Unit consists of the complete 
installation of the fence, gates, etc., as specified in the 
drawings.
    Group O. Station Grounding. A Construction Unit consists of the 
complete ground bus including ground rods, grounding mats or 
platforms, except as otherwise provided in other Groups, with 
connections to structures, equipment, and fence as specified in the 
drawings.
    Group P. Building. A Construction Unit consists of a control 
building or cabinet, on a foundation of Group L and the facilities 
and equipment installed therein as specified in the drawings, except 
as otherwise provided in other Groups. Other Groups. The Engineer 
shall specify such additional Groups as may be necessary for the 
completion of the Project. Description of these Groups shall be 
provided by an addition to this Section of the Specifications for 
Construction.

________ STATION CONSTRUCTION UNITS
Unit No. ________
Name and Description of Construction Unit ________
No. of Units ________
Unit Prices
Labor ________
Materials ________
Labor and Materials ________
Extended Price--Labor and Materials ________
Total Price ________

Acceptance

    Subject to the approval of the Administrator, the Owner hereby 
accepts the foregoing Proposal of the Bidder, ________ for the 
construction of the following substations or other major facilities:

________ Substation, $________
________ $________
The total contract price is $________
________ Owner
By ________ President
________ Secretary
________ Date of Contract

[End of clause]


Sec. 1726.341  Electric system communications and control equipment 
contract, REA Form 786.

    The contract form in this section shall be used when required by 
this part.

Electric System Communications and Control Equipment Contract 
(Including Installation)

Proposal to Furnish, Deliver, and Install Equipment and Materials

    To: ________ (hereinafter called the ``Purchaser'')
    The undersigned (hereinafter called the ``Seller'') hereby 
proposes to furnish, deliver, install, align and test the equipment 
and materials, (hereinafter called the ``Equipment'') described in 
the plans, specifications and drawings (hereinafter called the 
``Specifications'') attached hereto identified as ________ and made 
a part hereof, and other Attachments identified as ________ and made 
a part hereof, for the electric system designated ________, financed 
in whole or in part by a loan to the Purchaser by the United States 
of America, acting through the Administrator of the Rural 
Electrification Administration (hereinafter called the 
``Administrator'').
    The Seller has become informed as to the location and 
characteristics of the proposed Equipment and the facilities over 
which the Equipment is to perform, has become informed as to the 
kind of facilities required before and during the delivery and 
installation of the Equipment and has become acquainted with the 
labor conditions which would affect the work as well as the 
ecological and environmental criteria to be followed.
    The Seller agrees that if its Proposal is accepted the following 
terms and conditions shall govern.
    If, in submitting this Proposal, the Seller has made any change 
in the form of Proposal furnished by the Purchaser, the Seller 
understands that the Purchaser and the Administrator may evaluate 
the effect of such change as they see fit or they may exclude the 
Proposal from consideration.

ARTICLE I

    Section 1. Proposal Price. The Seller will furnish, deliver, 
install, align and test the Equipment described in the 
Specifications for the following sum:

Total Contract Price $______
Delivery time is ______ calendar days.
Completion time is ______ calendar days.

    A detailed price breakdown by locations, showing equipment 
pricing and installation pricing, is given in the Attachment 
identified as ______ and made a part hereof.
    Section 2. Changes. The Purchaser, subject to the approval of 
the Administrator,1 may from time to time during the 
performance of the work make such changes, additions to or 
subtractions from the Specification's which are part of the Proposal 
as conditions may warrant; provided, however, that, if any change in 
the work shall require an extension of time, a reasonable extension 
will be granted if the Seller shall make a written request therefor 
to the purchaser within ten (10) days after any such change is made 
and, provided further, that, if the cost to the Seller shall be 
increased or decreased by any such change or addition, the contract 
price shall be increased or decreased by the reasonable cost 
thereof, in accordance with a contract amendment signed by the 
Purchaser and the Seller and approved by the Administrator,2 
but no claim for additional compensation for any such change or 
addition will be considered unless the Seller shall have made a 
written request therefor to the Purchaser prior to the commencement 
of work in connection with such change or addition.
---------------------------------------------------------------------------

    \1\ As long as the total price of this contract including all 
amendments is less than 120 percent of the original contract price 
as stated in the acceptance hereto, amendments executed on REA Form 
238 are not subject to the approval of the Administrator. Whenever 
an amendment to this contract causes the total amended contract to 
exceed 120 percent of the original contract price, that amendment 
and all subsequent amendments to this contract shall be made subject 
to the approval of the Administrator.
    \2\See Footnote 1.
---------------------------------------------------------------------------

    Section 3. Taxes. The prices herein set forth do not include any 
sums which are or may be payable by the Seller or the Purchaser on 
account of taxes imposed by any taxing authority upon the sale, 
purchase or use of the Equipment or labor of installation. If any 
such tax is applicable, the amount thereof shall be stated 
separately and added to the Proposal price and paid by the 
Purchaser.

ARTICLE II--DELIVERY AND INSTALLATION

    Section 1. Time of Completion. The time of delivery of the 
Equipment and of completion of the work is of the essence of this 
Contract. The seller will deliver the Equipment within the number of 
calendar days specified in Article I, Section 1, after the 
Administrator shall have approved this contract in writing and will 
prosecute diligently and complete the work within the number of 
calendar days specified in Article I, Section 1, after such 
approval. The time for such delivery and completion shall be 
extended for the period of any reasonable delay due exclusively to 
causes beyond the control and without the fault of the Seller, 
including, but not limited to, acts of God, fires, strikes, floods, 
changes in the Specifications as herein provided, and acts or 
omissions of the Purchaser with respect to matters for which the 
Purchaser is solely responsible; provided, however, that no delay in 
such time for delivery or completion of the work or in the progress 
of the work shall result in any liability on the part of the 
Purchaser, and provided further that any claim for extension of time 
shall be adjusted at the time any such delay occurs or any such 
change is made.
    Section 2. Supervision and Inspection. The Seller will give 
adequate supervision to the work. He will carefully study and 
compare all drawings, specifications, and other instructions and 
will at once report to the Purchaser any error, inconsistency or 
omission which he may discover. The Seller will keep on his work 
during its progress a competent superintendent and any necessary 
assistants, all satisfactory to the Purchaser. The Superintendent 
shall represent the Seller in his absence and all directions given 
to him shall be as binding as if given to the Seller. When 
requested, such directions shall be confirmed in writing.
    Section 3. The Purchaser will make available during installation 
a competent representative to coordinate installation activities 
with the Seller.
    Section 4. Alignment, Inspection and Tests. The Seller shall 
adjust and align the Equipment to perform in accordance with the 
Specifications and furnish in writing to the Purchaser data to show 
the state of adjustment of the Equipment. Immediately upon 
completion of the installation and alignment of the Equipment the 
Seller shall provide the necessary test equipment and perform the 
inspections and tests specified in the Specifications under the 
direct supervision of the Purchaser or its Engineer. A competent 
representative of the Purchaser or his Engineer will be available to 
supervise and witness these tests immediately upon completion of 
installation and alignment by the Seller and to determine for the 
purchaser that the performance of the equipment meets the 
Specifications. Such determination, however, shall not preclude 
subsequent rejection pursuant to Section 7 of this Article II. The 
Seller shall furnish in writing to the Purchaser the results of all 
tests. All Equipment furnished hereunder shall be subject to the 
inspection, tests, and approval of the Purchaser and the 
Administrator. The Purchaser and the Administrator shall have the 
right to inspect all records of the Seller and of any subcontractor 
relevant to the installation work. The Seller shall provide all 
reasonable facilities necessary for such inspection and tests.
    Section 5. If as a result of the tests and measurements set 
forth in Section 4 above, the Performance Specifications of the 
Equipment cannot be met due to inaccuracies, or inadequacies in the 
system data provided in the Specifications, the Purchaser and Seller 
shall determine what corrective measures are necessary and whether 
these corrections shall be made by the Purchaser or the Seller.
    If it is determined that the Seller shall make the corrections, 
the Purchaser will reimburse the Seller pursuant to a contract 
amendment, subject to the approval of the Administrator3, for 
such reasonable additional expenses for the corrections, realignment 
and retesting the Seller is required to perform pursuant to this 
amendment.
---------------------------------------------------------------------------

    \3\See Footnote 1.
---------------------------------------------------------------------------

    Where it is determined that the Purchaser will make the 
corrections, the Purchaser will reimburse the Seller pursuant to a 
contract amendment, subject to the approval of the 
Administrator4, for such reasonable additional expenses for 
realignment and retesting the Seller is required to perform pursuant 
to this amendment, including, if necessary, the added expense of 
returning to the project, where necessary, for reperforming 
alignment and testing.
---------------------------------------------------------------------------

    \4\See Footnote 1.
---------------------------------------------------------------------------

    Section 6. Employees. The Purchaser shall have the right to 
require the removal from the work of any employee of the Seller if 
in the judgment of the Purchaser such removal shall be necessary in 
order to protect the interest of the Purchaser.
    Section 7. Defective Workmanship and Materials. Notwithstanding 
the acceptance of workmanship, materials or equipment or the giving 
of any certificate with respect to the Completion of the Work, if 
during performance hereunder or within one year after completion or 
within such longer period as the Equipment or any part thereof may 
be guaranteed by the Seller and Manufacturer, the workmanship, 
materials or equipment, except as may be otherwise provided in the 
Specifications, shall be found to be defective or not in conformity 
with the Specifications, the Seller shall remedy or replace at its 
expense such workmanship, materials or equipment within thirty (30) 
days after notice of the existence thereof shall have been given to 
the Seller by the Purchaser.

ARTICLE III--PAYMENTS AND RELEASES OF LIENS

    Section 1. Payment to Seller.
    (a) The Purchaser shall pay the Seller upon the basis of 
estimates by the Seller recommended by the supervising engineer, if 
any, and approved by the Purchaser of the work completed, the 
following percentages of the price of the equipment for each 
location set forth in Article I, Section 1, as and if revised: 45% 
when 50% of the equipment for each location has been delivered at 
the site of the Project; 90% when all the equipment for each 
location has been delivered at the site of the Project.
    (b) Upon completion of installation of the equipment for each 
location, the Purchaser shall pay the Seller 90% of the Total price 
for such location.
    (c) Upon Completion of the Installation of the Equipment, but 
prior to the payment to the Seller of any amount in excess of ninety 
percent (90%) of the Total Contract Price, the supervising engineer, 
if any, of the Purchaser or the Purchaser shall inspect the work 
performed hereunder and if the work shall be found acceptable and 
all provisions hereunder fully performed, the supervising engineer, 
if any, of the Purchaser shall certify as to that fact and as to the 
amount of the balance found to be due to the Seller. Upon acceptance 
by the Purchaser, the Purchaser shall pay to the Seller all unpaid 
amounts to which the Seller shall be entitled hereunder; provided, 
however, such final payments shall be made not later than 120 days 
after completion of the work, unless such acceptance by the 
Purchaser shall be withheld because of the fault of the Seller.
    Section 2. Release of Liens. Upon the Completion of the 
Installation of the Equipment by the Seller, but prior to the 
payment to the Seller of any amount in excess of ninety percent 
(90%) of the Total Contract Price, the Seller will deliver to the 
Purchaser, in duplicate, releases of all liens and of rights to 
claim any lien from manufacturers, materialmen and subcontractors 
who have furnished materials or services for the work and a 
certificate by the Seller in a form approved by the Administrator, 
to the effect that all labor has been paid and that all such 
releases have been submitted to the Purchaser for approval.
    In lieu of releases of liens, and if the Administrator shall so 
approve, the Seller may deliver to the Purchaser, in duplicate, (1) 
a certificate, in a form approved by the Administrator, that all 
manufacturers, materialmen and subcontractors who have furnished 
materials or services for the Project have been paid in full, and 
(2) an agreement to hold the Purchaser harmless against any liens 
arising out of the Seller's performance hereunder which may have 
been or may, be filed against the Purchaser.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE SELLER

    Section 1. Protection to Persons and Property. At all times when 
Equipment is being delivered and installed the Seller will exercise 
reasonable precautions for the safety of employees on the work and 
of the public, and will comply with all applicable provisions of 
Federal, State and Municipal safety laws and building and 
construction codes. All machine and equipment and other physical 
hazards shall be guarded in accordance with the ``Manual of Accident 
Prevention in Construction'' of the Associated General Contractors 
of America, unless such instructions are incompatible with Federal, 
State, or Municipal laws or regulations.
    The following provisions shall not limit the generality of the 
above requirements:
    (a) The Seller will at all times keep the premises free from 
accumulations of waste material or rubbish caused by his employees 
or work, and at the completion of the work he will remove all 
rubbish and all his tools, scaffolding and surplus materials and 
will leave his work ``broom clean.''
    (b) The Seller will perform work in such manner as to maximize 
preservation of aesthetics and conservation of natural resources, 
and minimize marring and scarring of the landscape and silting of 
streams. There will be no depositing of trash in streams or 
waterways. Herbicides, other chemicals or their containers will not 
be deposited in or near streams, waterways or pastures. The Seller 
will follow, under the general direction of the Purchaser, the 
criteria relating to environmental protection as specified herein by 
the Purchaser.
    (c) The work, from its commencement to completion, or to such 
earlier date or dates when the Purchaser may take possession and 
control, shall be under the charge and control of the Seller and 
during such period of control by the Seller all risks in connection 
therewith and the materials to be used therein, whether owned by the 
Seller or Purchaser, shall be borne by the Seller. The Seller will 
make good and fully repair all injuries and damages to the work or 
any portion thereof under the control of the Seller by reasons of 
any act of God, or any other casualty or cause whether or not the 
same shall have occurred by reason of the Seller's negligence.
    (i) To the maximum extent permitted by law, Seller shall defend, 
indemnify, and hold harmless Purchaser and Purchaser's directors, 
officers, and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Seller's employees) and loss, damage to or destruction of 
Purchaser's property or the property of any other person or entity 
(including but not limited to Seller's property) in any manner 
arising out of or connected with the Contract, or the materials or 
equipment supplied or services performed by Seller, its 
subcontractors and suppliers of any tier. But nothing herein shall 
be construed as making Seller liable for any injury, death, loss, 
damage, or destruction caused by the sole negligence of Purchaser.
    (ii) To the maximum extent permitted by law, Seller shall 
defend, indemnify, and hold harmless Purchaser and Purchaser's 
directors, officers, and employees from all liens and claims filed 
or asserted against Purchaser, its directors, officers, and 
employees, or Purchaser's property or facilities, for services 
performed or materials or equipment furnished by Seller, its 
subcontractors and suppliers of any tier, and from all losses, 
demands, and causes of action arising out of any such lien or claim. 
Seller shall promptly discharge or remove any such lien or claim by 
bonding, payment, or otherwise and shall notify Purchaser promptly 
when it has done so. If Seller does not cause such lien or claim to 
be discharged or released by payment, bonding, or otherwise, 
Purchaser shall have the right (but shall not be obligated) to pay 
all sums necessary to obtain any such discharge or release and to 
deduct all amounts so paid from the amount due Seller.
    (iii) Seller shall provide to Purchaser's satisfaction evidence 
of Seller's ability to comply with the indemnification provisions of 
subparagraphs i and ii above, which evidence may include but may not 
be limited to a bond or liability insurance policy obtained for this 
purpose through a licensed surety or insurance company.
    (d) Monthly reports of all accidents will be promptly submitted 
by the Seller, giving such data as may be prescribed by the 
Purchaser.
    Section 2. Delivery of Possession and Control to Purchaser. Upon 
written request of the Purchaser, the Seller shall deliver to the 
Purchaser full possession and control of any completed location 
included in the work, provided the Seller shall have been paid at 
least 90% of such Total Location Price. Upon such delivery of the 
possession and control of any such location to the Purchaser, the 
risks and obligations of the Seller, as set forth in Article IV, 
Section 1(b) hereof, with respect to such location shall be 
terminated; provided however, that nothing herein contained shall 
relieve the Seller of any liability with respect to defective 
workmanship or materials as specified in Article II, Section 7, 
hereof.
    Section 3. Insurance. The Seller shall take out and maintain 
throughout the contract period insurance of the following types and 
minimum amounts:
    (a) Workers' compensation and employers' liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to the workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    (b) Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    (c) Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million per person and $1 million per occurrence, and property 
damage limits of $1 million for each occurrence. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    The Owner shall have the right at any time to require public 
liability insurance and property damage liability insurance greater 
than those required in subsections ``b'' and ``c'' of this Section. 
In any such event, the additional premium or premiums payable solely 
as the result of such additional insurance shall be added to the 
Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Seller shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 4. Purchase of Materials. The Seller shall purchase all 
materials and supplies outright and not subject to any conditional 
sales agreements, bailment lease or other agreement reserving unto 
the Seller any right, title or interest therein. Materials and 
Supplies shall become the property of the Purchaser as the Purchaser 
makes payments therefor to the Seller in accordance with Article 
III, Section 1(a). Unless otherwise specified, all materials shall 
be new.
    Section 5. Assignment of Guarantees. All guaranties of materials 
and workmanship running in favor of the Seller shall be transferred 
and assigned to the Purchaser on completion of the work and at such 
time as the Seller receives final payment.
    Section 6. Patent Infringement. The Seller shall hold harmless 
and indemnify the Purchaser from any and all claims, suits, and 
proceedings for the infringement of any patent or patents covering 
any equipment, materials, supplies, or installation methods used in 
the work. The Seller shall, at its own cost (and Purchaser agrees to 
permit Seller to do so) defend any suits which may be instituted by 
any party against the Seller for alleged infringement of patents 
relating to the Seller's performance hereunder.
    Section 7. Compliance with Statutes and Regulations. The Seller 
shall comply with all applicable statutes, ordinances, rules and 
regulations pertaining to the work. The Seller acknowledges that it 
is familiar with the Rural Electrification Act of 1936, as amended, 
the so-called ``Kick-Back'' Statutes (48 Stat. 948), and all 
regulations issued pursuant thereto, and 18 U.S.C. Secs. 287,1001 as 
amended and the Seller agrees to comply with the provisions of all 
of such statutes and regulations.

ARTICLE V--REMEDIES

    Section 1. Completion on Seller's Default. If default shall be 
made by the Seller or by any subcontractor in the performance of any 
of the work hereunder, the Purchaser, without in any manner limiting 
its legal and equitable remedies in the circumstances, may serve 
upon the Seller and the Surety or sureties upon the Seller's Bond or 
Bonds, if any, a written notice requiring the Seller to cause such 
default to be corrected forthwith. Unless within twenty (20) days 
after the service of such notice upon the Seller such default shall 
be corrected or arrangements for the correction thereof, 
satisfactory to both the Purchaser and the Administrator, shall be 
made by the Seller or its surety or sureties, the Purchaser may take 
over the performance of the Seller's obligations hereunder and 
prosecute the same to completion by contract or otherwise for the 
account and at the expense of the Seller, and the Seller and its 
surety or sureties shall be liable to the Purchaser for any cost or 
expense in excess of the contract price occasioned thereby. In such 
event, the purchaser may take possession of and utilize, in 
completing the work, any tools, supplies, equipment, appliances and 
plant belonging to the Seller which may be situated at the site of 
the installation work. The Purchaser, in such contingency, may 
exercise any rights, claims or demands which the Seller may have 
against third persons in connection herewith and for such purpose 
the Seller does hereby assign, transfer and set over unto the 
Purchaser all such rights, claims and demands.
    Section 2. Enforcement of Remedies by Administrator. The 
Administrator may on behalf of the Purchaser exercise any right or 
enforce any remedy which the Purchaser may exercise or enforce 
hereunder.
    Section 3. Cumulative Remedies. Every right or remedy herein 
conferred upon or reserved to the Purchaser or the Administrator 
shall be cumulative and shall be in addition to every right and 
remedy now or hereafter existing at law or in equity or by statute 
and the pursuit of any right or remedy shall not be construed as an 
election.

ARTICLE VI--MISCELLANEOUS

    Section 1. Definitions.
    (a) The contract documents shall consist of the Proposal and 
Acceptance, the Contractor's Bond and the Specifications.
    (b) The term ``Completion of Installation'' shall mean full 
performance by the Seller of the Seller's obligations under the 
Contract and all amendments and revisions thereof, except that it 
shall not include the final acceptance tests nor performance of the 
Seller's obligations in respect of (i) releases of liens and 
Certificate of Seller under Article III, Section 2 hereof, (ii) 
other final documents. The term ``Completion of the Work'' shall 
mean full performance by the Seller of the Seller's obligations 
under the Contract and all amendments and revisions thereof. The 
Certificate of Completion signed by the supervising engineer and 
approved by the Purchaser or signed by the Purchaser, if the 
Purchaser shall not employ an Engineer, and approved in writing by 
the Administrator within a reasonable time after completion shall be 
conclusive evidence as to the fact of completion and the date 
thereof.
    Section 2. Materials and Supplies. In the performance of this 
contract there shall be furnished only such unmanufactured articles, 
materials, and supplies as have been mined or produced in the United 
States, Mexico, or Canada, and only such manufactured articles, 
materials, and supplies as have been manufactured in the United 
States substantially all from articles, materials, or supplies 
mined, produced or manufactured, as the case may be, in the United 
States, Mexico, or Canada; provided that other articles, materials, 
or supplies may be used in the event and to the extent that the 
Administrator shall expressly in writing authorize such use pursuant 
to the provisions of the Rural Electrification Act of 1938, being 
Title IV of Public Resolution No. 122, 75th Congress, approved June 
21, 1938. The Seller agrees to submit to the Purchaser such 
certificates with respect to compliance with the foregoing provision 
as the Administrator from time to time may require.
    Section 3. Equal Opportunity Provisions. (a) Seller's 
Representations.
    The Seller represents that: It has ____, does not have ____, 100 
or more employees, and if it has, that it has ____, has not ____, 
furnished the Equal Employment Opportunity--Employers Information 
Report EEO-1, Standard Form 100, required of employers with 100 or 
more employees pursuant to Executive Order 11246 and Title VII of 
the Civil Rights Act of 1964.
    The Seller agrees that it will obtain, prior to the award of any 
subcontract for more than $10,000 hereunder to a subcontractor with 
100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100.
    The Seller agrees that if it has 100 or more employees and has 
not submitted a report on Standard Form 100 for the current 
reporting year and that if this Contract will amount to more than 
$10,000 the Seller will file such report, as required by law, and 
notify the Purchaser in writing of such filing prior to the 
Purchaser's acceptance of this Proposal.
    (b) Equal Opportunity Clause. During the performance of this 
Contract, the Seller agrees as follows:
    (1) The Seller will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex or 
national origin. The Seller will take affirmative action to ensure 
that applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex or 
national origin. Such action shall include, but not be limited, to 
the following: Employment, upgrading, demotion or transfer; 
recruitment or recruitment advertising; layoff or termination, rates 
of pay or other forms of compensation; and selection for training, 
including apprenticeship. The Seller agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided setting forth the provisions of this Equal 
Opportunity Clause.
    (2) The Seller will, in all solicitations or advertisements for 
employees placed by or on behalf of the Seller, state that all 
qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex or national origin.
    (3) The Seller will send to each labor union or representative 
of workers, with which it has a collective bargaining agreement or 
other contract or understanding, a notice to be provided advising 
the said labor union or workers' representative of the Seller's 
commitments under this section, and shall post copies of the notice 
in conspicuous places available to employees and applicants for 
employment.
    (4) The Seller will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and of the rules, regulations, 
and relevant orders of the Secretary of Labor.
    (5) The Seller will furnish all information and reports required 
by Executive Order 11246 of September 21, 1965, and by rules, 
regulations, and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records, and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations, and orders.
    (6) In the event of the Seller's noncompliance with the Equal 
Opportunity Clause of this Contract or with any of the said rules, 
regulations or orders, this Contract may be cancelled, terminated or 
suspended in whole or in part, and the Seller may be declared 
ineligible for further Government contracts or federally-assisted 
construction contracts in accordance with procedures authorized in 
Executive Order 11246 of September 24, 1965, and such other 
sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24, 1965, or by rule, regulation 
or order of the Secretary of Labor, or as otherwise provided by law.
    (7) The Seller will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations, or orders of the Secretary of Labor issued pursuant to 
Section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Seller will take such action with respect to any subcontract or 
purchase order as the administering agency may direct as a means of 
enforcing such provisions, including sanctions for noncompliance: 
Provided, however, That in the event a Seller becomes involved in, 
or is threatened with, litigation with a subcontractor or vendor as 
a result of such direction by the administering agency, the Seller 
may request the United States to enter into such litigation to 
protect the interests of the United States.
    (c) Certificate of Nonsegregated Facilities. The Seller 
certifies that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Seller certifies further that it will not maintain or provide for 
its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Seller agrees that a breach of this 
certification is a violation of the Equal Opportunity Clause in this 
Contract. As used in this certification, the term ``segregated 
facilities'' means any waiting room, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Seller agrees that (except where it has obtained 
identical certificates from proposed subcontractors for specific 
time periods) it will obtain identical certifications from proposed 
subcontractors prior to the award of subcontracts exceeding $10,000 
which are not exempt from the provisions of the Equal Opportunity 
Clause, and that it will retain such certifications in its files.
    Section 4. Bond. The Seller will furnish to the Purchaser, for a 
contract in excess of $100,000 a bond in a penal sum not less than 
the Proposal price and in the form attached hereto and with a Surety 
or Sureties listed by the United States Treasury Department as 
acceptable Sureties.
    Section 5. License. The Seller shall comply with all applicable 
construction codes.
    (a) The Seller warrants that he possesses contractor's license 
number ________ issued to him by the State of ________ in which the 
work is located, and said license expires on ________, 19____.
    (b) The Seller warrants that no license is required in the State 
in which the work is located.
    (Cross out that subsection which does not apply.)
    Section 6. Nonassignment of Contract. The Seller will not assign 
the Contract effected by acceptance of this Proposal, or any part 
thereof, or enter into any contract with any person, firm or 
corporation, for the performance of the Seller's obligations 
hereunder or any part hereof, without the approval in writing of the 
Purchaser and the Surety or Sureties on the Contractor's Bond or 
Bonds, if any; provided, however, the Seller may subcontract the 
whole or any part of the installation work to be performed at the 
installation site (as distinguished from furnishing and delivery of 
equipment and materials). If the Seller, with the consent of the 
Purchaser and the Surety or Sureties on the Contractor's Bond or 
Bonds, if any, shall enter into any subcontract with any 
subcontractor for the Performance of any part of the installation 
work to be performed at the installation site, the Seller shall be 
as fully responsible to the Purchaser and the United States of 
America for the acts and omissions of such subcontractor and of 
persons employed by such subcontractor as the Seller would be for 
its own acts and omissions and those of persons directly employed by 
it.
    Section 7. Approval of the Administrator. The acceptance of this 
Proposal by the Purchaser shall not create a contract unless such 
acceptance shall be approved in writing by the Administrator within 
ninety (90) days after the date of the Proposal.

________ Seller
By ________
________ Title
Date of Proposal ________

    (If executed by one other than President, Vice-President, a 
partner or the individual owner, a power of attorney authorizing 
execution should accompany this proposal.)

Acceptance

    Subject to the approval of the Administrator, the Purchaser 
hereby accepts the Proposal of ________ (Dated ________) for the 
Equipment herein described for the Total Base Price of $________ and 
the following options for:

Spare Parts $________
Maintenance Tools $________
Test Equipment $________
Other Options: (Describe) $________
TOTAL CONTRACT PRICE $________
________ Purchaser
By ________ President
ATTEST ________ Secretary
Date of Acceptance ________

[End of clause]


Sec. 1726.342  Distribution line extension construction contract (labor 
and materials), REA Form 790.

    The contract form in this section shall be used when required by 
this part.

Distribution Line Extension Construction Contract (Labor and Materials)

Proposal

    To: ________ (hereinafter called the ``Owner'').

ARTICLE I--GENERAL

    Section 1--Offer to Construct. The undersigned (hereinafter 
called the ``Contractor'') hereby proposes to furnish labor, 
materials, and equipment for, and construct for the prices 
hereinafter stated, the rural electric project ________, 19________ 
Line Extensions (hereinafter called ``Project'') in strict 
accordance with the Plans, Specifications, and Construction Drawings 
hereinafter referred to. The Contractor understands and agrees that 
the Project will consist of line extensions and additions and line 
changes or similar work usually associated with overhead or 
underground distribution system improvement or extension work all 
located within the area served or ultimately to be served by the 
Owner and that the exact location and scope of individual sections 
of the Project (hereinafter called ``Sections'') will be made known 
to the Contractor from time to time as provided in Article II, 
Section 1 hereof; and provided, however, that the Contractor shall 
not be obligated to start construction of any Section unless the 
cost of construction of the Section computed on the unit prices of 
this Proposal shall amount to at least ________ dollars ($ ________ 
) and provided further that the Owner shall be obligated to release 
to the Contractor for construction at least one Section pursuant to 
the provisions of this Proposal.
    Section 2--Additional Projects. From time to time the owner and 
the Contractor may enter into negotiations for the performance of 
work at prices which may differ from those in the Proposal (such 
work being hereinafter called ``Additional Projects''). Except as 
may otherwise be agreed upon in writing by the Owner and the 
Contractor at the time the supplemental contract for the Additional 
Project is negotiated, the provisions of the Contract for the 
Project shall apply.
    Section 3--Proposal on Unit Basis. The Contractor understands 
and agrees that the various Construction Units considered in this 
Proposal are defined by symbols and descriptions in this Proposal, 
that the Proposal is made on a unit basis, and that the Owner may 
specify, as provided in Article II, Section 1 hereof, any number or 
combination of Construction Units which the Owner may deem necessary 
for the construction of the Project. If kinds of Construction Units 
for which prices are not established in this Proposal are necessary 
for the construction of the Project, the prices of such additional 
Units shall be as agreed upon in writing by the Owner and the 
Contractor prior to the time of installation.
    The unit labor prices herein set forth are applicable to work 
performed on unenergized lines. Such unit labor prices shall be 
increased by ________ (________) percent for all units installed on 
energized lines in accordance with instructions of the Owner, as 
provided in Article II, Section 1g.
    Section 4--Description of Contract. The Specifications and 
Construction Drawings set forth in:
    REA Form 804, Specifications and Drawings for 7.2/12.5 kV Line 
Construction;
    REA Form 803, Specifications and Drawings for 14.4/24.9 kV Line 
Construction;
    REA Form 806, Specifications and Drawings for Underground 
Electric Distribution;

as applicable, which by this reference are incorporated herein, 
together with the Plans, Proposal and Acceptance constitute the 
Contract. The Plans, consisting of maps and special drawings, and 
approved modifications in standard specifications are attached 
hereto and identified as follows: ________
    Section 5--Familiarity with Conditions. The Contractor 
acknowledges that it has made a careful examination of the site of 
the Project and of the Plans, Specifications and Construction 
Drawings, and has become informed as to the location and nature of 
the proposed construction, the transportation facilities, the kind 
and character of soil and terrain to be encountered, the kind of 
equipment, tools, and other facilities required before and during 
the construction of the Project and has become acquainted with the 
availability status of materials and with the labor conditions which 
would affect work on the Project.
    Section 6--License. The Contractor warrants that a Contractor's 
license is ________ is not ________ required, and if required, it 
possesses Contractor's License No. ________ for the State of 
________ in which the Project is located, and said license expires 
on ________, 19________.
    Section 7--Contractor's Resources. The Contractor warrants that 
it possesses adequate financial resources for the performance of the 
work covered by this Proposal and that it will provide necessary 
tools and equipment and a qualified superintendent and other 
employees.
    Section 8--Changes in Construction. The Contractor agrees to 
make such changes in construction previously installed in the 
Project by the Contractor as required by the Owner on the following 
basis:
    The cost of labor shall be the reasonable cost thereof as agreed 
upon by the Contractor and the Owner but in no event shall it exceed 
two (2) times the labor price quoted in the Proposal for the 
installation of the unit to be changed. Such compensation shall be 
in lieu of any other payment for the installation and removal of the 
original unit but shall not include the cost of the installation, if 
any, of a new or replacing unit, payment for which shall be made at 
the unit price as quoted in the Proposal. No payment shall be made 
to the contractor for correcting errors or omissions on the part of 
the Contractor which result in construction not in accordance with 
the Plans and Specifications.
    Section 9--Materials and Equipment. The Contractor agrees to 
furnish and use in the construction of the Project under this 
Proposal, only such materials and equipment as are included on the 
current ``List of Materials Acceptable for Use on Systems of REA 
Electrification Borrowers,'' including revisions adopted prior to 
construction.
    The Contractor further agrees to furnish and use guy wire with 
ASTM Class ________ (Owner to insert A or B) zinc coating.
    All leads on equipment such as transformers, reclosers, etc., 
shall be of #6 minimum copper conductivity using ________ (Owner to 
insert stranded soft drawn copper or aluminum alloy) conductor.
    All conductor ties on insulators shall be of the materials and 
methods shown in the following Type Guide Drawings: ________ (Owner 
to insert appropriate drawing numbers.)
    Ground rods and butt-type grounding plates shall be ________. 
(Owner to insert galvanized steel or copper.)
    Underground primary cables shall have ________ coated copper 
neutral (Owner to insert round or flat.)
    The Contractor further agrees to furnish poles, crossarms, and 
other timber products, of which the physical characteristics, method 
of treatment, type of preservative, instructions on inspection and 
general procedure shall be in accordance with REA standards and 
requirements.
    Crossarms shall be ________ (Owner to insert Douglas Fir or 
Southern Yellow Pine), treated with ________ (Owner to insert type 
of preservative.)
    The Contractor agrees that the prices for poles, crossarms, and 
other timber products set forth herein shall include the cost of 
preservative treatment and inspection or insured warranty. The 
Contractor further agrees to obtain from the supplier inspection and 
treatment reports or insured warranties, for checking against the 
delivery timber, and to submit such reports or warranties to the 
Owner as one of the prerequisites to monthly and final payments.
    Section 10--Owner-Furnished Materials.
    a. The Contractor understands and agrees that the Owner may, 
with approval of the Contractor, furnish to the Contractor some of 
the materials and equipment required for construction of the 
Project, (hereinafter called ``Owner-Furnished Materials''). The 
quantity, type, and value of Owner-Furnished Materials for each 
Section shall be as agreed upon by the Contractor and Owner prior to 
the start of construction of each Section of the Project. The Owner 
shall make such materials and equipment available to the Contractor 
as provided in Article II, Section 1, b, and the Contractor will 
give to the Owner a receipt in such form as the Owner shall approve.
    b. The value of the completed Construction Units certified to by 
the Contractor each month pursuant to Article III, Section 1, a, of 
this Proposal shall be reduced by an amount equal to the value of 
the Owner-Furnished Materials installed by the Contractor during the 
preceding month. Only ninety percent (90%) of the remainder shall be 
paid prior to the Completion of the Section. Owner-Furnished 
Materials, if any, not required for the Section, shall be returned 
to the Owner by the Contractor upon Completion of Construction of 
the Section. The value of all Owner-Furnished Materials not 
installed in the Section of the Project or returned to the Owner 
shall be deducted from the final payment to the Contractor for the 
Section.
    Section 11--References to Materials. The references in this 
Proposal to ``Materials'', except in Article IV, Section 1.f, shall 
be understood to mean only materials to be furnished by the 
Contractor.
    Section 12--Taxes. The unit prices for Construction Units in 
this Proposal include provisions for the payment of all monies which 
will be payable by the Contractor or the Owner in connection with 
construction of the Project on account of taxes imposed by any 
taxing authority upon the sale, purchase or use of materials, 
supplies or equipment to be incorporated in the Project as part of 
such Construction Units. The Contractor agrees to pay all such taxes 
except on Owner-Furnished Materials and it is understood that, as to 
Owner-Furnished Materials, the values as agreed to by the Owner and 
Contractor for such materials include such taxes, if applicable. The 
Contractor will furnish to the appropriate taxing authorities all 
required information and reports pertaining to materials used on 
construction of the Project except as to Owner-Furnished Materials.

ARTICLE II--CONSTRUCTION

    Section 1--Time and Manner of Work. The Contractor agrees to be 
prepared to commence the construction of the Project within fifteen 
(15) calendar days after written notice by the Owner of the 
acceptance of the Proposal. The Contractor agrees to commence 
construction of a Section within ______ (______) days after receipt 
in writing from the Owner of the following:
    a. Location and number of the various Construction Units 
required for construction of the Section (hereinafter called the 
``Staking Sheets'').
    b. Itemized list including appropriate Unit prices, of the 
Owner-Furnished Materials to be used in the construction of the 
Section and an authorization by the Owner for the Contractor to 
obtain such materials from the Owner's warehouse located at ______.
    c. A schedule showing the rate at which construction of the 
Section shall proceed and the total number of calendar days 
(excluding Sundays) to be allowed for completion; provided, however, 
that the required completion time for any Section shall not be less 
than ______ (______) days or ______ (______) days per mile of line, 
whichever is the greater, which days shall be calendar days 
(excluding Sundays). The time of the completion of the Section is of 
the essence of the contract to be effected by acceptance of this 
Proposal.
    d. A statement that all required easements and rights-of-way 
have been obtained from the owners of the properties across which 
the Section is to be constructed (including tenants who may 
reasonably be expected to object to such construction).
    e. A statement that all necessary staking has been completed.
    f. A statement that all necessary funds for prompt payment for 
the construction of the Section will be available.
    g. Specific instruction as to location and extent of work to be 
performed on energized lines, if any.
    The Contractor will not be required to dig holes, set poles, 
install anchors, install underground conduit, perform any plowing 
for the installation of underground cable, or dig trenches if there 
are more than six (6) inches of frost in the ground nor to perform 
any construction on such days when in the judgement of the Owner 
snow, rain, or wind, or the results of snow, rain, or frost make it 
impracticable to perform any operation of construction; provided 
further that the Contractor will not perform any plowing for the 
installation of underground cable on public roads or highways if 
there are more than two (2) inches of frost in the ground. To the 
extent of the time lost due to the conditions described herein and 
approved in writing by the Owner, the time of completion set out 
above will be extended. The time for completion shall be extended 
for a period of any reasonable delay (other than a delay resulting 
from the failure of the Contractor to secure sufficient labor) which 
is due exclusively to causes beyond the control and without the 
fault of the Contractor including acts of God, fires, floods, 
inability to obtain materials, direction of the Owner to cease 
construction as herein provided, and acts or omissions of the Owner 
with respect to matters for which the Owner is solely responsible: 
Provided, however, that no such extension of time for completion 
shall be granted the Contractor unless within ten (10) days after 
the happening of any event relied upon by the Contractor for such an 
extension of time the Contractor shall have made a request therefor 
in writing to the Owner, and provided further that no delay in such 
time of completion or in the progress of the work which results from 
any of the above causes except acts or omissions of the Owner, shall 
result in any liability on the part of the Owner.
    Section 2--Changes in Plans, Specifications and Drawings. The 
Owner may, from time to time during the progress of the construction 
of the Project, make such changes in, additions to, or subtractions 
from the Plans, Specifications, and Construction Drawings as 
conditions may warrant: Provided, however, that if the cost to the 
Contractor shall be materially increased by any such change or 
addition, the Owner shall pay the Contractor for the reasonable cost 
thereof in accordance with a construction contract amendment signed 
by the Owner and the Contractor, but no claim for additional 
compensation for any such change or addition will be considered 
unless the Contractor shall have made a written request therefor to 
the Owner prior to the commencement of work in connection with such 
change or addition.
    Section 3--Supervision and Inspection.
    a. The Contractor shall cause the construction work on the 
Project to receive constant supervision by a competent 
superintendent (hereinafter called the ``Superintendent'') who shall 
be present at all times during working hours where construction is 
being carried on. The Contractor shall also employ, in connection 
with the construction of the Project, capable, experienced, and 
reliable foremen and such skilled workmen as may be required for the 
various classes of work to be performed. Directions and instructions 
given to the Superintendent by the Owner shall be binding upon the 
Contractor.
    b. The Owner reserves the right to require the removal from the 
Project of any employee of the Contractor if in the judgement of the 
Owner such removal shall be necessary in order to protect the 
interest of the Owner. The Owner shall have the right to require the 
Contractor to increase the number of his employees and to increase 
or change the amount or kind of tools and equipment if at any time 
the progress of the work shall be unsatisfactory to the Owner; but 
the failure of the Owner to give any such directions shall not 
relieve the Contractor of his obligations to complete the work 
within the time and in the manner specified in this Proposal.
    c. The manner of construction of the Project and all materials 
and equipment used therein, shall be subject to the inspection, 
tests, and approval of the Owner. The Owner shall have the right to 
inspect all payrolls and other data and records of the Contractor 
relevant to the work. The Contractor will provide all reasonable 
facilities necessary for such inspection and tests. The Contractor 
shall have an authorized agent accompany the inspector when final 
inspection is made and, if requested by the Owner, when any other 
inspection is made.
    d. In the event that the Owner shall determine that the 
construction contains or may contain numerous defects, it shall be 
the duty of the Contractor, if requested by the Owner, to have an 
inspection made by an engineer approved by the Owner for the purpose 
of determining the exact nature, extent, and location of such 
defects.
    Section 4--Defective Materials and Workmanship.
    a. The acceptance of any materials, equipment (except owner-
furnished materials) or any workmanship by the Owner shall not 
preclude the subsequent rejection thereof if such materials, 
equipment, or workmanship shall be found to be defective after 
delivery or installation, and any such materials, equipment or 
workmanship found defective before final acceptance of the 
construction shall be replaced or remedied, as the case may be, by 
and at the expense of the Contractor. Any such condemned material or 
equipment shall be immediately removed from the site of the Project 
by the Contractor at the Contractor's expense. The Contractor shall 
not be entitled to any payment hereunder so long as any defective 
materials, equipment or workmanship in respect to the Project, of 
which the Contractor shall have had notice, shall not have been 
replaced or remedied, as the case may be.
    b. Notwithstanding any certificate which may have been given by 
the Owner, if any materials, equipment (except owner-furnished 
materials) or any workmanship which does not comply with the 
requirements of this Contract shall be discovered within one (1) 
year after Completion of Construction of the Project, the Contractor 
shall replace such defective materials or equipment or remedy any 
such defective workmanship within thirty (30) days after notice in 
writing of the existence thereof shall have been given by the Owner. 
If the Contractor shall be called upon to replace any defective 
materials or equipment or to remedy defective workmanship as herein 
provided, the Owner, if so requested by the Contractor shall 
deenergize that section of the Project involved in such work. In the 
event of failure by the Contractor to do so, the Owner may replace 
such defective materials or equipment or remedy such defective 
workmanship, as the case may be, and in such event the Contractor 
shall pay to the Owner the cost and expense thereof.
    Section 5--Materials Removed. The Contractor will return to the 
Owner or reuse in the construction of other assembly units all 
materials removed from the lines under Section H--Conversion 
Assembly Units and Section I--Removal Assembly Units. Upon 
completion of each Section of the Project the Contractor will return 
to the Owner all materials, including usable materials as well as 
scrap, furnished by the Owner in excess of those required for the 
construction of the Section as determined from the Final Inventory 
approved by the Owner. The Contractor will reimburse the Owner at 
the current invoice cost to the Owner for loss and for breakage 
through Contractor's negligence of materials furnished by the Owner 
to the Contractor and for materials removed from the lines by the 
Contractor.
    Section 6--Term of Contract. It is understood and agreed that, 
notwithstanding any other provisions of this Contract, the 
Contractor will not be required to commence any construction after 
the expiration of one year following acceptance of this Proposal by 
the Owner.

ARTICLE III--PAYMENT

    Section 1--Payments to Contractor.
    a. Within the first fifteen (15), days of each calendar month, 
the Owner shall make partial payment to the Contractor for 
construction accomplished during the preceding calendar month on the 
basis of completed Construction Units furnished and certified to by 
the Contractor and approved by the Owner solely for the purpose of 
payment: Provided, however, that such approval by the Owner shall 
not be deemed approval of the workmanship or materials. Only ninety 
percent (90%) of each such estimate approved during the construction 
of a Section shall be paid by the Owner to the Contractor prior to 
completion of the Section. Upon completion by the Contractor of the 
construction of a Section, the Contractor will prepare a Final 
Inventory of the Section showing the total number and character of 
Construction Units and, will certify it to the Owner together with a 
certificate of the total cost of the construction performed. Upon 
the approval of such certificates, the Owner shall make payment to 
the Contractor of all amounts to which the Contractor shall be 
entitled thereunder which shall not have been paid.
    b. The Contractor shall be paid on the basis of the number of 
Construction Units actually installed at the direction of the Owner, 
as shown by the Inventory based on the Staking Sheets: Provided, 
however, that the total cost shall not exceed the maximum Contract 
price for the construction of the Project, unless such excess shall 
have been approved in writing by the Owner. It is understood and 
agreed that this maximum Contract price is ________ dollars 
($________). It is also agreed that the Contractor shall not be 
entitled to any claim for damages on account of any reasonable 
additions to or subtractions from the Project, or of any delay 
occasioned thereby, or of any changes in the routing of the lines.
    c. No payment shall be due while the Contractor is in default in 
respect of any of the provisions of this Contract and the Owner may 
withhold from the Contractor the amount of any claim by a third 
party against either the Contractor the Owner based upon an alleged 
failure of the Contractor to perform the work hereunder in 
accordance with the provisions of this Contract.
    Section 2--Certificate of Contractor and Indemnity Agreement--
Line Extensions. Upon the completion of Construction of any Section 
of the Project but prior to payment to the Contractor of any amount 
in excess of 90 percent (90%) of the total cost of all Construction 
Units comprising the completed Section, the Contractor shall deliver 
to the Owner in the form attached hereto, (1) a certificate that all 
persons who have furnished labor in connection with the Project and 
all manufacturers, materialmen, and subcontractors who have 
furnished materials or services for the Project have been paid in 
full, and (2) an agreement to hold the Owner harmless against any 
liens arising out of the Contractor's performance hereunder which 
may have been or may be filed against the Owner.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE CONTRACTOR

    Section 1--Protection to Persons and Property. The Contractor 
shall at all times take all reasonable precautions for the safety of 
employees on the work and of the public, and shall comply with all 
applicable provisions of Federal, State, and Municipal safety laws 
and building and construction codes, as well as the safety rules and 
regulations of the Owner. All machinery and equipment and other 
physical hazards shall be guarded in accordance with the ``Manual of 
Accident Prevention in Construction'' of the Associated General 
Contractors of America unless such instructions are incompatible 
with Federal, State, or Municipal laws or regulations.
    The following provisions shall not limit the generality of the 
above requirements:
    a. The Contractor shall at no time and under no circumstances 
cause or permit any employee of the Contractor to perform any work 
upon energized lines, or upon poles carrying energized lines, unless 
otherwise specified in accordance with Article II, Section 1, 
subsection g.
    b. The Contractor shall so conduct the construction of the 
Project as to cause the least possible obstruction of public 
highways.
    c. The Contractor shall provide and maintain all such guard 
lights and other protection for the public as may be required by 
applicable statutes, ordinances, and regulations or by local 
conditions.
    d. The Contractor shall do all things necessary or expedient to 
protect properly any and all parallel, converging, and intersecting 
lines, joint line poles, highways, and any and all property of 
others from damage, and in the event that any such parallel, 
converging and intersecting lines, joint line poles, highways, or 
other property are damaged in the course of the construction of the 
Project, the Contractor shall at its own expense restore any or all 
of such damaged property immediately to as good a state as before 
such damage occurred.
    e. Where the right-of-way of the Project traverses cultivated 
lands, the Contractor shall limit the movement of his crews and 
equipment so as to cause as little damage as possible to crops, 
orchards, or property and shall endeavor to avoid marring the lands. 
All fences which are necessarily opened or moved during the 
construction of the Project shall be replaced in as good condition 
as they were found and precautions shall be taken to prevent the 
escape of livestock. Except as otherwise provided in the 
descriptions of underground plowing and trenching assembly units, 
the Contractor shall not be responsible for loss of or damage to 
crops, orchards, or property (other than livestock) on the right-of-
way necessarily incident to the construction of the Project and not 
caused by negligence or inefficient operation of the Contractor. The 
Contractor shall be responsible for all other loss of or damage to 
crops, orchards, or property, whether on or off the right-of-way, 
and for all loss of or damage to livestock caused by the 
construction of the Project.
    f. The Project, from the commencement of work to completion, or 
to such earlier date or dates when the Owner may take possession and 
control in whole or in part as hereinafter provided shall be under 
the charge and control of the Contractor and during such period of 
control by the Contractor all risks in connection with the 
construction of the Project and the materials to be used therein 
shall be borne by the Contractor. The Contractor shall make good and 
fully repair all injuries and damages to the Project or any portion 
thereof under the control of the Contractor by reason of any Act of 
God or other casualty or cause whether or not the same shall have 
occurred by reason of the Contractor's negligence.
    (i) To the maximum extent permitted by law, Contractor shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Contractor's employees) and loss, damage to or 
destruction of Owner's property or the property of any other person 
or entity (including but not limited to Contractor's property) in 
any manner arising out of or connected with the Contract, or the 
materials or equipment supplied or services performed by Contractor, 
its subcontractors and suppliers of any tier. But nothing herein 
shall be construed as making Contractor liable for any injury, 
death, loss, damage, or destruction caused by the sole negligence of 
Owner.
    (ii) To the maximum extent permitted by law, Contractor shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Contractor, its subcontractors and suppliers 
of any tier, and from all losses, demands, and causes of action 
arising out of any such lien or claim. Contractor shall promptly 
discharge or remove any such lien or claim by bonding, payment, or 
otherwise and shall notify Owner promptly when it has done so. If 
Contractor does not cause such lien or claim to be discharged or 
released by payment, bonding, or otherwise, Owner shall have the 
right (but shall not be obligated) to pay all sums necessary to 
obtain any such discharge or release and to deduct all amounts so 
paid from the amount due Contractor.
    (iii) Contractor shall provide to Owner's satisfaction evidence 
of Contractor's ability to comply with the indemnification 
provisions of subparagraphs i and ii above, which evidence may 
include but may not be limited to a bond or liability insurance 
policy obtained for this purpose through a licensed surety or 
insurance company.
    g. Any and all excess earth, rock, debris, underbrush, and other 
useless material shall be removed by the Contractor from the site of 
the Project as rapidly as practicable as the work progresses.
    h. Upon violation by the Contractor of any provisions of this 
section, after written notice of such violation given to the 
Contractor by the Owner, the Contractor shall immediately correct 
such violation. Upon failure of the Contractor to do so the Owner 
may correct such violation at the Contractor's expense.
    i. The Contractor shall submit to the Owner monthly reports in 
duplicate of all accidents, giving such data as may be prescribed by 
the Owner.
    j. The Contractor shall not proceed with the cutting of trees or 
clearing of right-of-way without written notification from the Owner 
that proper authorization has been received from the owner of the 
property, and the Contractor shall promptly notify the Owner 
whenever any landowner objects to the trimming or felling of any 
trees or the performance of any other work on his land in connection 
with the Project and shall obtain the consent in writing of the 
Owner before proceeding in any such case.
    Section 2--Insurance. The Bidder shall take out and maintain 
throughout the period of this Agreement the following types and 
minimum amounts of insurance:
    a. Workers' compensation and employer's liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    b. Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    c. Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million each occurrence, and property damage limits of $1 million 
for each occurrence. This required insurance may be in a policy of 
policies of insurance, primary and excess including the umbrella or 
catastrophe form.
    The Owner shall have the right at any time to require public 
liability insurance and property damage liability insurance greater 
than those required in subsection ``b'' and ``c'' of this Section. 
In any such event, the additional premium or premiums payable solely 
as the result of such additional insurance shall be added to the 
Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 3--Bond. If the estimated cost of the construction of a 
Section shall exceed $100,000, the Contractor agrees to furnish 
prior to the commencement of such construction, a bond in the penal 
sum not less than the estimated cost of such section in the form 
attached hereto with a Surety or Sureties listed by the United 
States Treasury Department as acceptable sureties. In the event that 
the Surety or Sureties on the performance bond delivered to the 
Owner shall at any time become unsatisfactory to the Owner, the 
Contractor agrees to deliver to the Owner another or an additional 
bond.
    Section 4--Delivery of Possession and Control to the Owner. Upon 
written request of the Owner, the Contractor will deliver to the 
Owner full possession and control of any portion of the Project 
provided the Contractor shall have been paid at least ninety percent 
(90%) of the cost of construction of such portion. Upon such 
delivery of possession and control to the Owner, the risks and 
obligations of the Contractor as set forth in Section 1f of this 
Article IV with respect to such portion so delivered to the Owner, 
shall be terminated; Provided, however, that nothing herein 
contained shall relieve the Contractor of any liability with respect 
to defective workmanship as specified in Article II, Section 4.
    Section 5--Purchase of Materials. The Contractor shall purchase 
all materials and supplies outright and not subject to any 
conditional sales agreement, bailment lease, or other agreement 
reserving to the seller any right, title, or interest therein. All 
materials and supplies shall become the property of the Owner when 
erected in place.
    Section 6--Assignment of Guarantees. All guarantees of materials 
and workmanship running in favor of the Contractor shall be 
transferred and assigned to the Owner on Completion of Construction 
and at such times as the Contractor receives final payment.

ARTICLE V--REMEDIES

    Section 1--Completion on Contractor's Default. If default shall 
be made by the Contractor or by any subcontractor in the performance 
of any of the terms of this Proposal, the Owner, without in any 
manner limiting its legal and equitable remedies in the 
circumstances, may serve upon the Contractor and the Surety, if any, 
a written notice requiring the Contractor to cause such default to 
be corrected forthwith. Unless within twenty (20) days after the 
service of such notice upon the Contractor and the Surety, if any, 
such default shall be corrected or arrangements for the correction 
thereof satisfactory to the Owner shall be made, the Owner may take 
over the construction of the Project and prosecute the same to 
completion by contract or otherwise for the account and at the 
expense of the Contractor, and the Contractor shall be liable to the 
Owner for any cost or expense in excess of the Contract price 
occasioned thereby. In such event the Owner may take possession of 
and utilize, in completing the construction of the Project, any 
materials, tools, supplies, equipment, appliance, and plant 
belonging to the Contractor or any of its subcontractors, which may 
be situated at the site of the Project. The Owner in such 
contingency may exercise any rights, claims, or demands which the 
Contractor may have against third persons in connection with this 
Proposal and for such purpose the Contractor does hereby assign, 
transfer, and set over unto the Owner all such rights, claims, and 
demands.

ARTICLE VI--MISCELLANEOUS

    Section 1--Patent Infringement. The Contractor will save 
harmless and indemnify the Owner from any and all claims, suits, and 
proceedings for the infringement of any patent or patents covering 
any equipment used in the work.
    Section 2. Materials and Supplies. In the performance of this 
contract there shall be furnished only such unmanufactured articles, 
materials, and supplies as have been mined or produced in the United 
States, Mexico, or Canada, and only such manufactured articles, 
materials, and supplies as have been manufactured in the United 
States substantially all from articles, materials, or supplies 
mined, produced or manufactured, as the case may be, in the United 
States, Mexico, or Canada; provided that other articles, materials, 
or supplies may be used in the event and to the extent that the 
Administrator shall expressly in writing authorize such use pursuant 
to the provisions of the Rural Electrification Act of 1938, being 
Title IV of Public Resolution No. 122, 75th Congress, approved June 
21, 1938. The Contractor agrees to submit to the Purchaser such 
certificates with respect to compliance with the foregoing provision 
as the Administrator from time to time may require.
    Section 3--Permits for Explosives. All permits necessary for the 
handling or use of dynamite or other explosives in connection with 
the construction of the Project shall be obtained by and at the 
expense of the Contractor.
    Section 4--Compliance with Statutes and Regulations. The 
Contractor will comply with all applicable statutes, ordinances, 
rules, and regulations pertaining to the work. The Contractor 
acknowledges that it is familiar with the Rural Electrification Act 
of 1936, as amended, the so-called ``Kick-Back'' Statute (48 Stat. 
948), and regulations issued pursuant thereto, and 18 U.S.C. 
287,1001, as amended. The Contractor understands that the 
obligations of the parties hereunder are subject to the applicable 
regulations and orders of Governmental agencies having jurisdiction 
in the premises.
    Section 5. Equal Opportunity Provisions.
    a. Contractor's Representations.
    The Contractor represents that:
    It has ____, does not have ____, 100 or more employees, and if 
it has, that it has ____, has not ____, furnished the Equal 
Employment Opportunity--Employers Information Report EEO-1, Standard 
Form 100, required of employers with 100 or more employees pursuant 
to Executive Order 11246 and Title VII of the Civil Rights Act of 
1964. The Contractor agrees that it will obtain, prior to the award 
of any subcontract for more than $10,000 hereunder to a 
subcontractor with 100 or more employees, a statement, signed by the 
proposed subcontractor, that the proposed subcontractor has filed a 
current report on Standard Form 100.
    The Contractor agrees that if it has 100 or more employees and 
has not submitted a report on Standard Form 100 for the current 
reporting year and that if this Contract will amount to more than 
$10,000, the Contractor will file such report, as required by law, 
and notify the Owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    b. Equal Opportunity Clause. During the performance of this 
Contract, the Contractor agrees as follows:
    (1) The Contractor will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex, or 
national origin. The Contractor will take affirmative action to 
ensure that applicants are employed, and that employees are treated 
during employment without regard to their race, color, religion, 
sex, or national origin. Such action shall include, but not be 
limited to, the following: Employment, upgrading, demotion or 
transfer; recruitment or recruitment advertising; layoff or 
termination; rates of pay or other forms of compensation; and 
selection for training, including apprenticeship. The Contractor 
agrees to post in conspicuous places, available to employees and 
applicants for employment, notices to be provided setting forth the 
provisions of this Equal Opportunity Clause.
    (2) The Contractor will, in all solicitations or advertisements 
for employees placed by or on behalf of the Contractor, state that 
all qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex, or national origin.
    (3) The Contractor will send to each labor union or 
representative of workers, with which it has a collective bargaining 
agreement or other contract or understanding, a notice to be 
provided advising the said labor union or workers' representatives 
of the Contractor's commitments under this section, and shall post 
copies of the notice in conspicuous places available to employees 
and applicants for employment.
    (4) The Contractor will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and of the rules, regulations, 
and relevant orders of the Secretary of Labor.
    (5) The Contractor will furnish all information and reports 
required by Executive Order 11246 of September 24, 1965, and by 
rules, regulations, and orders of the Secretary of Labor, or 
pursuant thereto, and will permit access to its books, records, and 
accounts by the administering agency and the Secretary of Labor for 
purposes of investigation to ascertain compliance with such rules, 
regulations, and orders.
    (6) In the event of the Contractor's noncompliance with the 
Equal Opportunity Clause of this Contract or with any of the said 
rules, regulations, or orders, this Contract may be cancelled, 
terminated, or suspended in whole or in part, and the Contractor may 
be declared ineligible for further Government contracts or federally 
assisted construction contracts in accordance with procedures 
authorized in Executive Order 11246 of September 24, 1965, and such 
other sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24, 1965, or by rule, regulation, 
or order of the Secretary of Labor, or as provided by law.
    (7) The Contractor will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations, or order of the Secretary of Labor issued pursuant to 
Section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Contractor will take such action with respect to any subcontract 
or purchase order as the administering agency may direct as a means 
of enforcing such provisions, including sanctions for noncompliance: 
Provided, however, that in the event a Contractor becomes involved 
in, or is threatened with, litigation with a subcontractor or vendor 
as a result of such direction by the administering agency, the 
Contractor may request the United States to enter into such 
litigation to protect the interests of the United States.
    c. Certificate of Nonsegregated Facilities. The Contractor 
certifies that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Contractor certifies further that it will not maintain or provide 
for its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Contractor agrees that a breach of 
this certification is a violation of the Equal Opportunity Clause in 
this Contract. As used in this certification, the term ``segregated 
facilities'' means any waiting rooms, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion. or national origin, because of habit, local custom, 
or otherwise. The Contractor agrees that (except where it has 
obtained identical certifications from proposed subcontractors for 
specific time periods) it will obtain identical certifications from 
proposed subcontractors prior to the award of subcontracts exceeding 
$10,000 which are not exempt from the provisions of the Equal 
Opportunity Clause, and that it will retain such certifications in 
its files.
    Section 6--Franchises and Rights-of-way. The Contractor will be 
under no obligation to obtain or assist in obtaining any franchises, 
authorizations, permits, or approvals required to be obtained by the 
Owner from Federal, State, County, municipal or other authority; any 
rights-of-way over private lands or any agreements between the Owner 
and third parties with respect to the joint use of poles, crossings 
or any other matter incident to the construction and operation of 
the Project.
    Section 7--Nonassignment of Contract. The Contractor will not 
assign the Contract effected by an acceptance of this Proposal or 
any part thereof or enter into any contract with any person, firm or 
corporation for the performance of the Contractor's obligations 
thereunder, or any part thereof, without the approval in writing of 
the Owner.
    Section 8--Definitions.
    a. The term Owner shall also include an engineer employed by the 
Owner, or a firm or engineer retained by the Owner, and designated 
by the Owner to act in that capacity. The Contractor will be 
notified in writing by the Owner of those designated to act for the 
Owner at the time of acceptance of this Proposal.
    b. The term Completion of Construction shall mean full 
performance by the Contractor of the Contractor's obligations under 
the contract and all amendments and revisions thereof relating to 
any Section of the Project or to the Project except the Contractor's 
obligations in respect of (i) Certificate of Contractor and 
Indemnity Agreement--Line Extensions under Article III, Section 2 
hereof and (ii) the Final Inventory referred to in Article III, 
Section 1a hereof.
    c. The term Completion shall mean full performance by the 
Contractor of the Contractor's obligations under the Contract and 
all amendments and revisions thereof relating to any Section of the 
Project or to the Project.
    Section 9--Extension to Successors and Assigns. Each and all of 
the covenants and agreements contained in the Contract effected by 
the acceptance of the Proposal shall extend to and be binding upon 
the successors and assigns of the parties thereto.

________ (Contractor)
By ________ (President)
________ (Address)
Attest: ________ (Secretary)
________ Date of Proposal

    This Proposal must be signed with the full name of the 
Contractor. If the Contractor is a partnership, the Proposal must be 
signed in the partnership name by a partner. If the Contractor is a 
corporation, the Proposal must be signed in the corporate name by a 
duly authorized officer and the corporate seal affixed and attested 
by the Secretary of the Corporation.

Construction Units--New Construction

Section 1--Pole Units

    A pole unit consists of one pole in place. It does not include 
pole-top assembly unit or other parts attached to the pole. The 
first two digits indicate the length of the pole; the third digit 
shows the classification per A.S.A. (Example: 25-6 means a pole 25 
feet long, class 6.)

Species of Timber: ________

Kind of Preservative: (Check one)

1. Creosote ____; 2. Pentachlorophenol ____; 3. Copper Naphthenate 
____;
    4. Waterborne preservative--CCA ____ ACZA ____

Method of Treatment: (Check one)

1. Pressure ____; 2. Thermal process: ____

Pole Plan Under Which the Poles are to be Furnished: (Check one)

1. Insured Warranted ____; 2. Independently Inspected ____; 3. 
Quality Assured ____; 4. Either Insured Warranted, Independently 
Inspected, or Quality Assured ____
(Owner to complete above) 

------------------------------------------------------------------------
                                        Unit price                      
                 -------------------------------------------------------
    Unit no.                                               Labor and    
                       Labor            Materials          materials    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

Section A--Single Phase Pole Top Assembly Units

Section B--V Phase Pole Top Assembly Units

    A pole top assembly unit consists of the hardware, crossarms, 
and their appurtenances, insulators, etc., except tie wire, required 
to support the primary conductors. It does not include the pole. 
Crossarm pins include 2x2x1/8 inch washer, nut, and locknut.

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
A                                                                       
                                                                        
B                                                                       
------------------------------------------------------------------------

Section C--Three Phase Pole Top Assembly Units

    A pole top assembly unit consists of the hardware, crossarms, 
and their appurtenances, insulators, etc., except tie wire, required 
to support the primary conductors. It does not include the pole. 
Crossarm pins include 2x2x\1/8\ inch washer, nut, and locknut. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
C                                                                       
                                                                        
------------------------------------------------------------------------

Section D--Conductor Assembly Units

    A conductor assembly unit consists of 1,000 feet of conductor or 
cable for primaries, secondaries or services, and includes tie 
wires, sleeves for splicing, connectors, and armor rods with clips 
or armor wire where necessary. Tree trimming necessary for 
installing services and secondaries on poles not carrying primary 
line is included with the conductor assembly unit and shall be 
performed in accordance with the directions of the Owner. The 
service shall be connected to the secondary or transformer and 2 
feet of conductor or cable shall be left for connecting to the 
consumer's service entrance. In computing the compensation to the 
Contractor for conductor assembly units only the horizontal distance 
between conductor supports or pole stakes shall be used. The 
conductor or cable sizes and types listed are the manufacturer's 
designation. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
D                                                                       
                                                                        
------------------------------------------------------------------------

Section E--Guy Assembly Units

    A guy assembly unit consists of the hardware and wire, and guy 
insulator where necessary. An overhead guy assembly consists of an 
overhead guy, a pole, and a down guy, each of which is listed 
separately. Guy guards are designated separately. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
E                                                                       
                                                                        
------------------------------------------------------------------------

Section F--Anchor Assembly Units

    An anchor assembly unit consists of the anchor with rod 
complete, ready for attaching the guy wire. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
F                                                                       
                                                                        
------------------------------------------------------------------------

Section G--Transformer Assembly Units

    A transformer assembly unit consists of the transformer, its 
protective equipment, and its hardware and leads with their 
connectors and supporting insulators and pins. This unit does not 
include the pole top, secondary, service, or grounding assemblies. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
G                                                                       
                                                                        
------------------------------------------------------------------------

Section J--Secondary Assembly Units

    A secondary assembly unit consists of the hardware, insulators, 
etc., to support the secondary conductors or cable. It does not 
include the secondary conductor or cable, or any hardware, 
insulators, etc., required to support service conductors or cable. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
J                                                                       
                                                                        
------------------------------------------------------------------------

Section K--Service Assembly Units

    A service assembly unit consists of the hardware, insulators, 
etc., required to support the service conductors or cable. It does 
not include the service conductor or cable, or any hardware, 
insulators, etc., required to support secondary conductors or cable. 


------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
K                                                                       
                                                                        
------------------------------------------------------------------------

Section M--Miscellaneous Assembly Units

    A miscellaneous assembly unit consists of an additional unit 
needed in the Project for new line construction but not otherwise 
listed in the Proposal. This section includes grounding assemblies 
consisting of the conductor, ground rod, grounding plate, connectors 
and clamps as shown on the respective drawings for the various 
types. It also includes fuse cutouts, reclosers, sectionalizers, 
switches, capacitors, regulators, metering and other assembly units. 


------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
M                                                                       
                                                                        
------------------------------------------------------------------------

Section R--Right-of-Way Clearing Units

    R1-10. The unit is 1,000 feet in length and 10 feet in width (to 
be measured on one side of the pole line) of actual clearing of 
right-of-way. This includes clearing of underbrush, tree removal, 
and such tree trimming as is required so that the right-of-way, 
except for tree stumps which shall not exceed ________ in height, 
shall be clear from the ground up on one side of the line of poles 
carrying primary conductors of the width specified. This unit does 
not include clearing or trimming associated with secondaries or 
services which is included with conductor units. The length of 
actual clearing shall be measured in a straight line parallel to the 
horizontal line between stakes and across the maximum dimension of 
foliage cleared projected to the ground line. All trees and 
underbrush across the width of the right-of-way, as designated by 
the Owner, shall be considered to be grouped together as a single 
length in measuring the total length of clearing. Spaces along the 
right-of-way in which no trees are to be removed or trimmed or 
underbrush cleared shall be omitted from the total measurement. All 
length thus arrived at, added together and divided by 1,000, shall 
give the number of 1,000-foot R1-10 units of clearing. This unit 
includes the removal or topping, at the option of the Contractor, of 
danger trees outside of the right-of-way when so designated by the 
Owner. (Danger trees are defined as dead or leaning trees which, in 
falling, will affect the operation of the line.) The Contractor 
shall not remove or trim shade, fruit, or ornamental trees unless so 
directed by the Owner.
    R1-20. This unit is identical with R1-10 except that width is 20 
feet (to be measured 10 feet on each side of the pole line).
    R1-30. This unit is identical with R1-10 except that width is 30 
feet (to be measured 15 feet on each side of the pole line).
    R1-40. This unit is identical with R1-10 except that width is 40 
feet (to be measured 20 feet on each side of the pole line).
    RC1-10, RC1-20, RC1-30, RC1-40. These units are identical to the 
respective R1 units except that chemical treatment of stumps is 
required in addition to the clearing of underbrush, tree removal and 
tree trimming.
    Additional Requirements (When specifying R1 units denote type of 
disposal (A or B).)
    A. Trees, brush, branches and refuse shall, without delay, be 
disposed of by such of the following methods as the Owner will 
direct (Owner to strike out methods not to be used):
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (describe) ________
    B. Trees that are felled shall be cut to commercial wood 
lengths, stacked neatly, and left on the right-of-way for the 
landowner. Commercial wood length means the length designated by the 
Owner but in no case shall it be required to be less than ________ 
(________) feet. Brush, branches, and refuse shall, without delay, 
be disposed of by such of the following methods as the Owner will 
direct (Owner to strike out methods not to be used):
1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (describe) ________

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
R           ..................                                          
------------------------------------------------------------------------

Section S--Substation Assembly Units

    A substation assembly unit consists of the complete substation 
ready for connection of the line conductors, as shown on the 
substation drawings attached. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
S                                                                       
                                                                        
------------------------------------------------------------------------

Section UD--Underground Cable Assembly Units

    An underground cable assembly unit consists of 1,000 feet of 
cable for underground primaries, secondaries or services. It does 
not include the conduit, plowing, trenching and backfilling, or the 
termination of the primary cable which are provided for in other 
assembly units. It includes the termination, connection and sealing 
of secondary and service cables and conductors as shown in the 
specifications and construction drawings, and all primary, secondary 
and service cable splices (buried cable may be spliced only when and 
where permitted by the Owner.1,2) In computing the compensation 
to the Contractor for underground cable assembly units, only the 
distance between stakes, paralleling the cable shall be used. The 
number of units so computed will include all cable installed in 
place in all specified trenches, risers, conduits, crossings, 
manholes, transformers, terminal housings and meter boxes.\3\) The 
conductor or cables listed are the manufacturer's designation of 
types, size, voltage rating and material. The Contractor and the 
Owner shall jointly perform cable acceptance tests on installed 
cable in accordance with the specifications using test equipment 
furnished by the ________. (Owner to insert Owner or Contractor).
---------------------------------------------------------------------------

    \1\________Owner check here if primary splices are permitted;
    \2\________Owner check here if secondary and service splices are 
permitted.
    \3\________Owner check here if 12 feet of service conductor is 
to be left as a coil three feet from the building with ends capped 
instead of connection to meter box. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
UD                                                                      
                                                                        
------------------------------------------------------------------------

Section UG--Underground Transformer Assembly Units

    An underground transformer assembly unit consists of the 
transformer, its housing, warning sign, switches, over-current 
protective devices, grounding loop, and hardware and leads with 
their connectors and supporting insulators installed in place. This 
unit includes the cable terminations but does not include lightning 
arresters, fault indicators, ground rods or trenching. For 
submersible transformers, it includes the cable terminations, the 
enclosure and cover, drainable material (when specified\4\), and the 
excavation when required. For pad-mount transformers, it does not 
include the pad, site preparation, drainable material, backfilling 
or compaction which are included in the pad assembly units.
---------------------------------------------------------------------------

    \4\________Owner check here if drainable material is specified. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
UG                                                                      
                                                                        
------------------------------------------------------------------------

Section UK--Underground Secondary and Service Assembly Units

    An underground secondary and service assembly unit consists of 
secondary or service cable terminal housing mounted in place. It 
includes the power pedestal, stake (when required), mounting 
hardware, warning sign, directional marker, housing identification 
marking, and the cable identification tags. It does not include the 
cable terminations, ground rod, or pad, when required. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
UK                                                                      
                                                                        
------------------------------------------------------------------------

Section UM--Miscellaneous Underground Assembly Units

    A miscellaneous underground assembly unit consists of an 
additional unit needed in the Project for new construction but not 
otherwise listed in the Proposal. This section includes the 
miscellaneous assembly units as shown on the respective underground 
construction drawings. Where miscellaneous units consist of or 
include a primary cable termination, the unit includes the 
preparation of the cable to accommodate the termination, the stress 
cone and the connection of the cable to the terminal equipment. Pad 
assembly units are in this section and include the site preparation, 
bedding, drainable material when specified, cable slot, backfilling, 
tamping and the pad in place. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
UM                                                                      
                                                                        
------------------------------------------------------------------------

Section UR--Underground Excavation Assembly Units

    UR1-S (D) Plowing Assembly Unit, Soil--Consists of one (1) 
lineal foot of plowing in soil, measured parallel to the surface of 
the ground, to a specified depth (D), in inches, including the 
compacting, except as specifically provided for in other units. This 
unit includes all material and labor required in the repair and/or 
replacement of streets, roads, drives, fences, lawns, shrubbery, 
watermains, pipes, pipelines and contents, underground power and 
telephone facilities, buried sewerage and drainage facilities, and 
any other property damaged during the plowing of the cable, except 
as specifically provided for in other units. This unit does not 
include underground cable facilities installed in the slot. Note: 
Where in the judgment of the Owner greater than normal difficulty 
will be involved in plowing because of the presence of underground 
facilities of other utilities, this unit will be suffixed by the 
letter ``T''. This will be applicable only in those areas 
predesignated by the Owner on the detail maps herein. All plowing 
outside of the predesignated area on the map, regardless of the 
difficulty in placement actually experienced, will be inventoried as 
the regular UR1-S (D) units. If field conditions show the existence 
of rock to prevent the placing of the cable in soil to the depth 
required in the specifications the Owner may specify UR2-R units. 
Where more than one cable is to be installed in the slot, the UR1-S 
unit designation should be modified by a suffix corresponding to the 
number of cables installed. For example, UR1-S (D)3c for 3 cables 
plowed at one time.
    UR2-S (D&W) Trenching Assembly Unit, Soil--Consists of one (1) 
lineal foot of trenching in soil, measure parallel to the surface of 
the ground, to a specified depth (D) and width (W), in inches, 
including the excavation, and backfilling and compacting. This unit 
includes all material and labor required in the repair and/or 
replacement of streets, roads, drives, fences, lawns, shrubbery, 
watermains, pipes, pipelines and contents, underground power and 
telephone facilities, buried sewerage and drainage facilities, and 
any other property damaged by the trenching, except as specifically 
provided for in other units. This unit does not include underground 
cable facilities installed in the trench or cable bedding assembly 
units, when required. Note: Where in the judgement of the Owner 
greater than normal difficulty will be involved in trenching because 
of the presence of underground facilities of other utilities, this 
unit will be suffixed by the letter ``T''. This will be applicable 
only in those areas predesignated by the Owner on the detail maps 
herein. Where more than one cable is to be installed in the trench, 
the regular UR2-S unit designation should be modified by a suffix 
corresponding to the construction drawing for the type of cable 
placement desired.
    UR2-R (D&W) Trenching Assembly Unit, Rock--Consists of one (1) 
lineal foot of trenching in rock, measured parallel to the surface 
of the ground, to specified depth (D) and width (W), in inches, 
including the excavation, and backfilling and compacting to place 
cable to the depth specified in the Specifications. This unit will 
be specified by the Owner only when field conditions at the site 
show the existence of rock at a depth preventing the placing of the 
cable in soil to the depths required in the Specifications. This 
unit includes all material and labor required in the repair and/or 
replacement of streets, roads, drives fences, lawns, shrubbery, 
watermains, pipes, pipelines and contents, underground power and 
telephone facilities, buried sewerage and drainage facilities, and 
any other property damaged by the trenching, except as specifically 
provided for in other units. This unit does not include underground 
cable facilities installed in the trench or cable bedding assembly 
units, when required.
    UR-3 Cable Bedding Assembly Unit--Consists of one (1) lineal 
foot of a two-inch bed of clean and or soil placed in the trench 
under the cable and a four-inch layer of clean sand or soil backfill 
over the cable to the width of the trench.

    Note: The exact location and number of units shall be determined 
by the Owner after the trenches are open in those areas where rock 
or other conditions make special bedding necessary.
    UR-4a Pavement Assembly Unit, Asphalt--Consists of the labor and 
material necessary to remove and restore one (1) lineal foot of 
asphalt pavement, measured along the route of the cable, including 
any trenching necessary to place the cable at the required depth. 
All work shall be performed in accordance with the requirements of 
state or local authorities.
    UR-4c Pavement Assembly Unit, Concrete--Consists of the labor 
and material necessary to remove and restore one (1) lineal foot of 
concrete pavement, measured along the route of the cable, including 
any trenching necessary to place the cable at the required depth. 
All work shall be performed in accordance with the requirements of 
state or local authorities.
    UR-5 (  ) Underground Pipe Crossing Assembly Unit--Consists of 
one (1) lineal foot of steel pipe, of the inside diameter, in 
inches, specified in the last digit of the assembly unit 
designation, installed in place. This unit includes the pushing of 
pipe and any excavation, backfilling and tamping necessary for the 
installation of the pipe. The pipe will be installed at the depth 
specified by the Owner. Underground cable installed in the pipe is 
not included in this unit.
    UR-6 Underground Nonpipe Crossing Assembly Unit--Consists of the 
labor in providing a hole in soil one (1) foot in length of a 
diameter sufficient to accommodate the cable to be installed 
therein. The depth of the hole below the surface of the ground shall 
be specified by the Owner. This unit includes any excavation, 
backfilling and tamping necessary for the installation. This unit 
may be used where the permanent installation of a steel pipe under 
the UR-5 unit is not required. Underground cable installed in the 
hole is not included in this unit. 

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
UR                                                                      
                                                                        
------------------------------------------------------------------------

Construction Units--Line Changes

    The general heading of Line Changes applies to the changing of 
existing lines or portions thereof from their existing phasing, wire 
size, and type to new phasing, wire size, and type and the removal 
of existing lines or portions thereof and replacing with new lines 
in close proximity thereto. In general line changes involve three 
types of assembly units as follows:

Section H--Conversion assembly units;
Section I--Removal assembly units;
Section N--New construction assembly units on existing lines or in 
replacing lines.

    The assembly units that are included in Sections H, I, and N are 
defined by symbols and descriptions which follow together with the 
applicable descriptions included under New Construction. Where the 
descriptions are not correct or sufficiently explicit, or when 
special units are not covered by Construction Drawings, descriptions 
have been provided by the Owner in the respective sections.
    Work included in these sections shall be performed under a 
schedule of deenergization and operating procedures as set forth by 
the Owner at the time of release of any Section involving work on 
existing lines. The Contractor will so plan and perform its work 
that it will be possible to safely reenergize all lines involved at 
the expiration of the time limits set up in the schedule to resume 
service to all consumers being served prior to deenergization. Prior 
to commencement of work each day on lines to be deenergized, and 
upon completion of work each day on such lines, the Contractor will 
notify the Owner thereof in writing or in such other manner as the 
circumstances permit.

Section H--Conversion Assembly Units

    Conversion assembly units are pole-top assemblies and cover the 
furnishing of all labor and additional materials for changing an 
existing assembly unit to a new assembly unit, utilizing certain 
items of materials of the existing assembly unit on poles to be left 
in place. Any materials removed from the existing assembly units 
which are not required in the construction of the conversion 
assembly unit are to be reused by the Contractor in the construction 
of other assembly units, or returned to Owner's warehouse, as 
directed by the Owner.
    Conversion assembly units are specified by the prefix H with the 
new construction assembly unit designation shown first and the 
existing assembly unit designation shown last. For example, an H B1-
A1 signifies the conversion of an existing A1 assembly unit to a B1 
assembly unit (as was defined in the description of construction 
assembly units). In this instance the Contractor utilizes the 
existing pintype insulator, single upset bolt and neutral spool and 
furnishes the additional crossarm, crossarm pins, braces, machine 
bolt, carriage bolts, lag screw, and insulator required for the new 
unit. The Contractor transports the pole-top pin and two machine 
bolts to the warehouse or uses them on the Project as directed by 
the Owner.
    The Conversion assembly units also include the furnishing of all 
labor and materials in the transferring, resagging and retying of 
conductors from one position on the pole to a different position on 
the pole where such transfers are required. Where replacement of 
conductor is required, the existing conductor will be removed under 
Section I and the new conductor installed under Section N. Where 
replacement of a pole is required, the existing pole and pole-top 
assembly will be removed under Section I and the new pole and pole-
top assembly will be installed according to Section N and no H units 
will be involved.
    Conversion assemblies are listed in three subsections for 
converting pole-top assemblies from single to V phase, single to 
three phase, and V to three phase. The following descriptions apply 
to only those conversion units not sufficiently explicit: 

------------------------------------------------------------------------
   Unit                              Description                        
------------------------------------------------------------------------
                                                                        
                                                                        
------------------------------------------------------------------------

Subsection H (B-A)  1 Phase to V Phase

------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
H                                                                       
                                                                        
------------------------------------------------------------------------


                  Subsection H (C-A)1 Phase to 3 Phase                  
------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
H                                                                       
                                                                        
------------------------------------------------------------------------


                  Subsection H (C-B)V Phase to 3 Phase                  
------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
H                                                                       
                                                                        
------------------------------------------------------------------------

Section I--Removal Assembly Units

    Removal assembly units cover the furnishing of all labor for the 
removal of existing units of construction from existing lines, 
disassembling into material items, and all labor and transportation 
for the returning of all materials to the warehouse of the Owner in 
an orderly manner or transporting elsewhere to the site of the 
Project for reuse in the prosecution of this Contract as directed by 
the Owner. All materials removed remain the property of the Owner. 
The provisions for Owner-Furnished materials in the Proposal shall 
apply if such materials are reused for construction of the Project.
    The unit removal prices shall include all materials and labor 
required to reinstall in accordance with specifications any 
conductors temporarily detached. The Contractor will reinstall at 
his own expense any other units removed by him for his own 
convenience.
    The removal units are specified by the prefix I and followed by 
the assembly unit designation of existing assembly unit to be 
removed. For example, an I-A1 signifies the removal of an A1 
assembly unit. The following special notes apply to specific removal 
units:
    a. Poles. All poles of the same height, regardless of pole 
class, are designated by the same unit. Thus an I-30-foot pole 
signifies the removal of a 30-foot pole of any class. The Contractor 
is not required under this unit to remove from the pole any ground 
wire or pole numbering attached to the pole. This unit includes the 
refilling and tamping of holes in a workmanlike manner unless they 
are to be reused.
    b. Pole-top Assemblies. The unit of removal of pole-top 
assemblies includes, in addition to the removal of the assembly 
itself, any necessary handling, resagging, and retying of conductors 
in those cases where an existing pole-top assembly will be removed 
and replaced by a new pole-top assembly and where any existing 
conductor is to be reused.
    The unit of removal of pole-top assemblies also includes any 
holding or handling of mainline or tap conductors at tap lines, 
angles, and deadends where such is involved, and the reinstalling of 
such conductor in accordance with the specifications; for example, 
an I-A5-4 will include the disconnection of the tap conductors, 
snubbing off the tap line at the nearest practical point and the 
reconnection and resagging of these tap conductors if necessary to 
the new tap assembly when installed. The new unit of construction, 
however, will be specified separately in Section N.
    c. Conductor. The conductor removal unit covers the removal of 
1,000 feet of conductor or cable and reeling or coiling it in a 
workmanlike manner in such a way that it can be reused by the 
Contractor or the Owner. The Owner will furnish to the Contractor 
reels if it is to be returned to the Owner's warehouse on reels. The 
removal unit for each size of conductor or cable is shown by the 
prefix I followed by D and the conductor or cable type; thus an I-D 
6ACWC signifies the removal unit for 1,000 feet of 6 A Copperweld-
copper conductor.
    d. Guys. All guys regardless of length, type of attachment, or 
size of guy strand are specified by the same unit; thus an I-E 
signifies the removal of any guy.
    e. Anchors. Only anchor rods are to be removed by the Contractor 
in anchor removal units. The anchors will be left in the ground; 
thus an I-F signifies the removal of any anchor rod. If the rod 
cannot be unscrewed, the end of the rod shall either be cut off or 
bent down so that the rod will be at least 18 inches below ground.
    f. Transformers. The unit for removal of transformer assembly 
units is divided into two sections, (1) Conventional Transformer 
Assembly, and (2) Self-protected Transformer Assembly. Only one unit 
is specified for each type, and all sizes of transformers from 1 to 
15 kVA within each group will be covered by the same unit. ``Self-
protected'' refers to transformers where all protective equipment is 
mounted on or within the transformer. ``Conventional'' refers to 
transformers where protective equipment is mounted separately from 
the transformer. The unit is designated by the prefix I followed by 
the description of the unit to be removed; thus I-G Conventional 
signifies the removal of a conventional transformer assembly for any 
size transformer from 1 to 15 kVA.
    g. Secondary Units. The unit for removal of secondary assemblies 
includes, in addition to the removal of the assembly itself, all 
necessary handling such as untying, resagging, and retying of 
secondary conductor or cables where existing secondary conductor or 
cable is to be reused.
    In addition, the unit for removal of the secondary assembly 
includes the handling or holding of any conductor at tap lines where 
such is involved, and the reinstalling of such tap conductor in 
accordance with the specifications.
    h. Service Unit. The unit for removal of service assemblies 
includes, in addition to the removal of the assembly itself, all 
necessary handling such as untying, resagging, and retying of 
service conductor or cable where existing service conductor or cable 
is to be reused.
    The following descriptions apply only to those removal units not 
sufficiently explicit:

------------------------------------------------------------------------
   Unit                              Description                        
------------------------------------------------------------------------
                                                                        
                                                                        
------------------------------------------------------------------------


------------------------------------------------------------------------
 Unit No.                         Unit labor price                      
------------------------------------------------------------------------
I                                                                       
                                                                        
------------------------------------------------------------------------

Section N--New Assembly Units

    The purpose of this section is to list complete new units of 
construction where such units are to be added to existing lines or 
installed in replacing lines.
    The units as covered by this section are the same as the units 
described in Construction Units--New Construction, except that these 
units are prefixed by the letter N.
    For example, an N40-6 unit covers the furnishing of all material 
and labor for the installation of a 40-6 pole either in an existing 
distribution line being operated by the Owner or in a new line being 
constructed to replace an existing distribution line being operated 
by the Owner.
    The following descriptions apply only to those new units not 
sufficiently explicit:

------------------------------------------------------------------------
   Unit                              Description                        
------------------------------------------------------------------------
                                                                        
                                                                        
------------------------------------------------------------------------


------------------------------------------------------------------------
                                     Unit price                         
 Unit No.  -------------------------------------------------------------
                  Labor              Materials       Labor and materials
------------------------------------------------------------------------
N                                                                       
                                                                        
------------------------------------------------------------------------

Acceptance

    The undersigned hereby accepts the foregoing Proposal of 
________, dated ________, to construct the rural electric Project 
________ 19____ Line Extensions.

________ (Owner)
By
________ (President)
________ Secretary
________ Date of Contract

[End of clause]


Sec. 1726.343  Distribution line extension construction contract (labor 
only), REA Form 792.

    The contract form in this section shall be used when required by 
this part.

Distribution Line Extension Construction Contract (Labor Only)

Proposal

    To: ________ (hereinafter called the ``Owner'').

Article I--General

    Section 1--Offer to Construct. The undersigned (hereinafter 
called the ``Contractor'') hereby proposes to construct for the 
prices hereinafter stated, with materials furnished by the Owner, 
the rural electric project ________ 19 ____ Line Extensions 
(hereinafter called ``Project'') in strict accordance with the 
Plans, Specifications, and Construction Drawings hereinafter 
referred to. The Contractor understands and agrees that the Project 
will consist of line extensions and additions and line changes or 
similar work usually associated with overhead or underground 
distribution system improvement or extension work all located within 
the area served or ultimately to be served by the Owner and that the 
exact location and scope of individual sections of the Project 
(hereinafter called ``Sections'') will be made known to the 
Contractor from time to time as provided in Article II, Section 1 
hereof; and provided, however, that the Contractor shall not be 
obligated to start construction of any Section unless the cost of 
construction of the Section computed on the unit prices of this 
Proposal shall amount to at least ________ dollars ($ ________) and 
provided further that the Owner shall be obligated to release to the 
Contractor for construction at least one Section pursuant to the 
provisions of this Proposal.
    Section 2--Additional Projects. From time to time the Owner and 
the Contractor may enter into negotiations for the performance of 
work at labor prices which may differ from those in the Proposal 
(such work being hereinafter called ``Additional Projects''). Except 
as may otherwise be agreed upon in writing by the Owner and the 
Contractor at the time the supplemental contract for the Additional 
Project is negotiated, the provisions of the Contract for the 
Project shall apply.
    Section 3--Proposal on Unit Basis. The Contractor understands 
and agrees that the various Construction Units considered in this 
Proposal are defined by symbols and descriptions in this Proposal, 
that the Proposal is made on a unit basis, and that the Owner may 
specify, as provided in Article II, Section 1 hereof, any number or 
combination of Construction Units which the Owner, may deem 
necessary for the construction of the Project. If kinds of 
Construction Units for which prices are not established in this 
Proposal are necessary for the construction of the Project, the 
prices of such additional Units shall be as agreed upon in writing 
by the Owner and the Contractor prior to the time of installation. 
The unit prices herein set forth are applicable to work performed on 
unenergized lines. Such unit prices shall be increased by ________ 
(________) percent for all units installed on energized lines in 
accordance with instructions of the Owner, as provided in Article 
II, Section 1g.
    Section 4--Description of Contract. The Specifications and 
Construction Drawings set forth in:
    REA Form 804, Specifications and Drawings for 7.2/12.5 kV Line 
Construction;
    REA Form 803, Specifications and Drawings for 14.4/24.9 kV Line 
Construction;
    REA Form 806, Specifications and Drawings for Underground 
Electric Distribution;

as applicable, which by this reference are incorporated herein, 
together with the Plans, Proposal and Acceptance constitute the 
Contract. The Plans, consisting of maps and special drawings, and 
approved modifications in standard specifications are attached 
hereto and identified as follows: ________
    Section 5--Familiarity with Conditions. The Contractor 
acknowledges that it has made a careful examination of the site of 
the Project and of the Plans, Specifications and Construction 
Drawings, and has become informed as to the location and nature of 
the proposed construction, the transportation facilities, the kind 
and character of soil and terrain to be encountered, the kind of 
equipment, tools, and other facilities required before and during 
the construction of the Project and has become acquainted with the 
availability status of materials to be furnished by the Owner and 
with the labor conditions which would affect work on the Project.
    Section 6--License. The Contractor warrants that a Contractor's 
license is ________ is not ________ required, and if required, it 
possesses Contractor's License No. ________ for the State of 
________ in which the Project is located, and said license expires 
on ________, 19____.
    Section 7--Contractor's Resources. The Contractor warrants that 
it possesses adequate financial resources for the performance of the 
work covered by this Proposal and that it will provide necessary 
tools and equipment and a qualified superintendent and other 
employees.
    Section 8--Changes in Construction. The Contractor agrees to 
make such changes in construction previously installed in the 
Project by the Contractor as required by the Owner on the following 
basis:
    The cost of labor shall be the reasonable cost thereof as agreed 
upon by the Contractor and the Owner but in no event shall it exceed 
two (2) times the labor price quoted in the Proposal for the 
installation of the unit to be changed. Such compensation shall be 
in lieu of any other payment for the installation and removal of the 
original unit but shall not include the cost of the installation, if 
any, of a new or replacing unit, payment for which shall be made at 
the unit price as quoted in the Proposal.
    No payment shall be made to the Contractor for correcting errors 
or omissions on the part of the Contractor which result in 
construction not in accordance with the Plans and Specifications.

Article II--Construction

    Section 1--Time and Manner of Work. The Contractor agrees to be 
prepared to commence the construction of the Project within fifteen 
(15) calendar days after written notice by the Owner of acceptance 
of the Proposal. The Contractor agrees to commence construction of a 
Section within ________ ( ________ ) days after receipt in writing 
from the Owner of the following:
    a. Location and number of the various Construction Units 
required for construction of the Section (hereinafter called the 
``Staking Sheets'').
    b. Itemized list of the materials required for the construction 
of the Section and an authorization by the Owner for the Contractor 
to obtain such materials from the Owner's warehouse located at 
________.
    c. A schedule showing the rate at which construction of the 
Section shall proceed and the total number of calendar days 
(excluding Sundays) to be allowed for completion; provided, however, 
that the required completion time for any Section shall not be less 
than ________ ( ________ ) days or ________ ( ________ ) days per 
mile of line, whichever is the greater, which days shall be calendar 
days (excluding Sundays). The time of the completion of the Section 
is of the essence of the contract to be effected by acceptance of 
this Proposal.
    d. A statement that all required easements and rights-of-way 
have been obtained from the owners of the properties across which 
the Section is to be constructed (including tenants who may 
reasonably be expected to object to such construction).
    e. A statement that all necessary staking has been completed.
    f. A statement that all necessary funds for prompt payment for 
the construction of the Section will be available.
    g. Specific instruction as to location and extent of work to be 
performed on energized lines, if any.
    The Contractor will not be required to dig holes, set poles, 
install anchors, install underground conduit, perform any plowing 
for the installation of underground cable, or dig trenches if there 
are more than six (6) inches of frost in the ground nor to perform 
any construction on such days when in the judgment of the Owner 
snow, rain, or wind or the results of snow, rain, or frost make it 
impracticable to perform any operations of construction; provided 
further that the contractor will not perform any plowing for the 
installation of underground cable on public roads or highways if 
there are more than two (2) inches of frost in the ground. To the 
extent of the time lost due to the conditions described herein and 
approved in writing by the Owner, the time of completion set out 
above will be extended. The time for completion shall be extended 
for a period of any reasonable delay (other than a delay resulting 
from the failure of the Contractor to secure sufficient labor) which 
is due exclusively to causes beyond the control and without the 
fault of the Contractor including acts of God, fires, floods, 
inability to obtain materials, direction of the Owner to cease 
construction as herein provided, and acts or omissions of the Owner 
with respect to matters for which the Owner is solely responsible: 
Provided, however, that no such extension of time for completion 
shall be granted the Contractor unless within ten (10) days after 
the happening of any event relied upon by the Contractor for such an 
extension of time the Contractor shall have made a written request 
therefor in writing to the Owner, and provided further that no delay 
in such time of completion or in the progress of the work which 
results from any of the above causes, except acts or omissions of 
the Owner, shall result in any liability on the part of the Owner.
    Section 2--Changes in Plans, Specifications and Drawings. The 
Owner may, from time to time during the progress of the construction 
of the Project, make such changes in, additions to, or subtractions 
from the Plans, Specifications, and Construction Drawings as 
conditions may warrant: Provided, however, that if the cost to the 
Contractor shall be materially increased by any such change or 
addition, the Owner shall pay the Contractor for the reasonable cost 
thereof in accordance with a construction contract amendment signed 
by the Owner and the Contractor, but no claim for additional 
compensation for any such change or addition will be considered 
unless the Contractor shall have made a written request therefor to 
the Owner prior to the commencement of work in connection with such 
change or addition.
    Section 3--Supervision and Inspection.
    a. The Contractor shall cause the construction work on the 
Project to receive constant supervision by a competent 
superintendent (hereinafter called the ``Superintendent'') who shall 
be present at all times during working hours where construction is 
being carried on. The Contractor shall also employ, in connection 
with the construction of the Project, capable, experienced, and 
reliable foremen and such skilled workmen as may be required for the 
various classes of work to be performed. Directions and instructions 
given to the Superintendent by the Owner shall be binding upon the 
Contractor.
    b. The Owner reserves the right to require the removal from the 
Project of any employee of the Contractor if in the judgment of the 
Owner such removal shall be necessary in order to protect the 
interest of the Owner. The Owner shall have the right to require the 
Contractor to increase the number of his employees and to increase 
or change the amount or kind of tools and equipment if at any time 
the progress of the work shall be unsatisfactory to the Owner; but 
the failure of the Owner to give any such directions shall not 
relieve the Contractor of his obligations to complete the work 
within the time and in the manner specified in this Proposal.
    c. The manner of performance of the work, and all equipment used 
therein, shall be subject to the inspection, tests, and approval of 
the Owner. The Owner shall have the right to inspect all payrolls 
and other data and records of the Contractor relevant to the work. 
The Contractor will provide all reasonable facilities necessary for 
such inspection and tests. The Contractor shall have an authorized 
agent accompany the inspector when final inspection is made and, if 
requested by the Owner, when any other inspection is made.
    d. In the event that the Owner shall determine that the 
construction contains or may contain numerous defects, it shall be 
the duty of the Contractor, if requested by the Owner, to have an 
inspection made by an engineer approved by the Owner for the purpose 
of determining the exact nature, extent, and location of such 
defects.
    Section 4--Defective Workmanship. The acceptance of any 
workmanship by the Owner shall not preclude the subsequent rejection 
thereof if such workmanship shall be found to be defective after 
installation, and any such workmanship found defective before final 
acceptance of the work or within one (1) year after completion shall 
be remedied or replaced, as the case may be, by and at the expense 
of the Contractor. In the event of failure by the Contractor so to 
do, the Owner may remedy such defective workmanship and in such 
event the Contractor shall pay to the Owner the cost and expense 
thereof. The Contractor shall not be entitled to any payment 
hereunder so long as any defective workmanship, in respect of the 
Project, of which the Contractor shall have had notice, shall not 
have been remedied or replaced, as the case may be.
    Section 5--Materials. At or prior to the commencement of 
construction of each Section, the Owner shall make available to the 
Contractor all materials for such Section which the Owner has on 
hand, and from time to time as such additional deliveries of 
materials, if any, are received by the Owner, the Owner shall make 
such materials available to the Contractor: Provided, however, that 
the Contractor or his authorized representative will give to the 
Owner a receipt in such form as the Owner shall approve for all 
materials furnished by the Owner to the Contractor. The Contractor 
will return to the Owner or reuse in the construction of other 
assembly units all materials removed from the lines under Section 
H--Conversion Assembly Units and Section I--Removal Assembly Units. 
Upon completion of each Section of the Project the Contractor will 
return to the Owner all materials, including usable materials as 
well as scrap, furnished by the Owner in excess of those required 
for the construction of the Section as determined from the Final 
Inventory approved by the Owner. The Contractor will reimburse the 
Owner at the current invoice cost to the Owner for loss and for 
breakage through Contractor's negligence of materials furnished by 
the Owner to the Contractor and for materials removed from the lines 
by the Contractor.
    Section 6--Term of Contract. It is understood and agreed that, 
notwithstanding any other provisions of this Contract, the 
Contractor will not be required to commence any construction after 
the expiration of 1 year following acceptance of this Proposal by 
the Owner.

ARTICLE III--PAYMENT

    Section 1--Payments to Contractor.
    a. Within the first fifteen (15) days of each calendar month, 
the Owner shall make partial payment to the Contractor for 
construction accomplished during the preceding calendar month on the 
basis of completed Construction Units furnished and certified to by 
the Contractor and approved by the Owner solely for the purpose of 
payment: Provided, however, that such approval by the Owner shall 
not be deemed approval of the workmanship or materials. Only ninety 
percent (90%) of each such estimate approved during the construction 
of a Section shall be paid by the Owner to the Contractor prior to 
completion of the Section. Upon completion by the Contractor of the 
construction of a Section, the Contractor will prepare a Final 
Inventory of the Section showing the total number and character of 
Construction Units and, will certify it to the Owner together with a 
certificate of the total cost of the construction performed. Upon 
the approval of such certificates, the Owner shall make payment to 
the Contractor of all amounts to which the Contractor shall be 
entitled thereunder which shall not have been paid.
    b. The Contractor shall be paid on the basis of the number of 
Construction Units actually installed at the direction of the Owner, 
as shown by the Inventory based on the Staking Sheets: Provided, 
however, that the total cost shall not exceed the maximum Contract 
price for the construction of the Project, unless such excess shall 
have been approved in writing by the Owner. It is understood and 
agreed that this maximum Contract price is ________ dollars 
($________). It is also agreed that the Contractor shall not be 
entitled to any claim for damages on account of any reasonable 
additions to or subtractions from the Project, or of any delay 
occasioned thereby, or of any changes in the routing of the lines.
    c. No payment shall be due while the Contractor is in default in 
respect of any of the provisions of this Contract and the Owner may 
withhold from the Contractor the amount of any claim by a third 
party against either the Contractor or the Owner based upon an 
alleged failure of the Contractor to perform the work hereunder in 
accordance with the provisions of this Contract.
    Section 2--Certificate of Contractor and Indemnity Agreement--
Line Extensions. Upon the Completion of Construction of any Section 
of the Project but prior to payment to the Contractor of any amount 
in excess of ninety percent (90%) of the total cost of all 
Construction Units comprising the completed Section, the Contractor 
shall deliver to the Owner in the form attached hereto, (1) a 
certificate that all persons who have furnished labor in connection 
with the Project and subcontractors who have furnished services for 
the Project have been paid in full, and (2) an agreement to hold the 
Owner harmless against any liens arising out of the Contractor's 
performance hereunder which may have been or may be filed against 
the Owner.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE CONTRACTOR

    Section 1. Protection to Persons and Property. The Contractor 
shall at all times take all reasonable precautions for the safety of 
employees on the work and of the public, and shall comply with all 
applicable provisions of Federal, State, and Municipal safety laws 
and building and construction codes, as well as the safety rules and 
regulations of the Owner. All machinery and equipment and other 
physical hazards shall be guarded in accordance with the ``Manual of 
Accident Prevention in Construction'' of the Associated General 
Contractors of America unless such instructions are incompatible 
with Federal, State, or Municipal laws or regulations.
    The following provisions shall not limit the generality of the 
above requirements:
    a. The Contractor shall at no time and under no circumstances 
cause or permit any employee of the Contractor to perform any work 
upon energized lines, or upon poles carrying energized lines, unless 
otherwise specified in accordance with Article II, Section 1, 
subsection g.
    b. The Contractor shall so conduct the construction of the 
Project as to cause the least possible obstruction of public 
highways.
    c. The Contractor shall provide and maintain all such guard 
lights and other protection for the public as may be required by 
applicable statutes, ordinances, and regulations or by local 
conditions.
    d. The Contractor shall do all things necessary or expedient to 
protect properly any and all parallel, converging, and intersecting 
lines, joint line poles, highways, and any and all property of 
others from damage, and in the event that any such parallel, 
converging and intersecting lines, joint line poles, highways, or 
other property are damaged in the course of the construction of the 
Project the Contractor shall at its own expense restore any or all 
of such damaged property immediately to as good a state as before 
such damage occurred.
    e. Where the right-of-way of the Project traverses cultivated 
lands, the Contractor shall limit the movement of his crews and 
equipment so as to cause as little damage as possible to crops, 
orchards, or property and shall endeavor to avoid marring the lands. 
All fences which are necessarily opened or moved during the 
construction of the Project shall be replaced in as good condition 
as they were found and precautions shall be taken to prevent the 
escape of livestock. Except as otherwise provided in the 
descriptions of underground plowing and trenching assembly units, 
the Contractor shall not be responsible for loss of or damage to 
crops, orchards, or property (other than livestock) on the right-of-
way necessarily incident to the construction of the Project and not 
caused by negligence or inefficient operation of the Contractor. The 
Contractor shall be responsible for all other loss of or damage to 
crops, orchards, or property, whether on or off the right-of-way, 
and for all loss of or damage to livestock caused by the 
construction of the Project.
    f. The Project, from the commencement of work to completion, or 
to such earlier date or dates when the Owner may take possession and 
control in whole or in part as hereinafter provided shall be under 
the charge and control of the Contractor and during such period of 
control by the Contractor all risks in connection with the 
construction of the Project and the materials to be used therein 
shall be borne by the Contractor. The Contractor shall make good and 
fully repair all injuries and damages to the Project or any portion 
thereof under the control of the Contractor by reason of any act of 
God or other casualty or cause whether or not the same shall have 
occurred by reason of the Contractor's negligence.
    (i) To the maximum extent permitted by law, Contractor shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Contractor's employees) and loss, damage to or 
destruction of Owner's property or the property of any other person 
or entity (including but not limited to Contractor's property) in 
any manner arising out of or connected with the Contract, or the 
materials or equipment supplied or services performed by Contractor, 
its subcontractors and suppliers of any tier. But nothing herein 
shall be construed as making Contractor liable for any injury, 
death, loss, damage, or destruction caused by the sole negligence of 
Owner.
    (ii) To the maximum extent permitted by law, Contractor shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Contractor, its subcontractors and suppliers 
of any tier, and from all losses, demands, and causes of action 
arising out of any such lien or claim. Contractor shall promptly 
discharge or remove any such lien or claim by bonding, payment, or 
otherwise and shall notify Owner promptly when it has done so. If 
Contractor does not cause such lien or claim to be discharged or 
released by payment, bonding, or otherwise, Owner shall have the 
right (but shall not be obligated) to pay all sums necessary to 
obtain any such discharge or release and to deduct all amounts so 
paid from the amount due Contractor.
    (iii) Contractor shall provide to Owner's satisfaction evidence 
of Contractor's ability to comply with the indemnification 
provisions of subparagraphs i and ii above, which evidence may 
include but may not be limited to a bond or liability insurance 
policy obtained for this purpose through a licensed surety or 
insurance company.
    g. Any and all excess earth, rock, debris, underbrush, and other 
useless material shall be removed by the Contractor from the site of 
the Project as rapidly as practicable as the work progresses.
    h. Upon violation by the Contractor of any provisions of this 
section, after written notice of such violation given to the 
Contractor by the Owner, the Contractor shall immediately correct 
such violation. Upon failure of the Contractor so to do the Owner 
may correct such violation at the Contractor's expense.
    i. The Contractor shall submit to the Owner monthly reports in 
duplicate of all accidents, giving such data as may be prescribed by 
the Owner.
    j. The Contractor shall not proceed with the cutting of trees or 
clearing of right-of-way without written notification from the Owner 
that proper authorization has been received from the owner of the 
property, and the Contractor shall promptly notify the Owner 
whenever any landowner objects to the trimming or felling of any 
trees or the performance of any other work on his land in connection 
with the Project and shall obtain the consent in writing of the 
Owner before proceeding in any such case.
    Section 2--Insurance. The Bidder shall take out and maintain 
throughout the period of this Agreement the following types and 
minimum amounts of insurance:
    a. Workers' compensation and employer's liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    b. Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    c. Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million each occurrence, and property damage limits of $1 million 
for each occurrence. This required insurance may be in a policy of 
policies of insurance, primary and excess including the umbrella or 
catastrophe form.
    The Owner shall have the right at any time to require public 
liability insurance and property damage liability insurance greater 
than those required in subsection ``b'' and ``c'' of this Section. 
In any such event, the additional premium or premiums payable solely 
as the result of such additional insurance shall be added to the 
Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 3--Bond. If the estimated cost of the construction of a 
Section shall exceed $100,000, the Contractor agrees to furnish 
prior to the commencement of such construction, a bond in the penal 
sum not less than the estimated cost of such Section in the form 
attached hereto with a Surety or Sureties listed by the United 
States Treasury Department as acceptable sureties. In the event that 
the Surety or Sureties on the performance bond delivered to the 
Owner shall at any time become unsatisfactory to the Owner, the 
Contractor agrees to deliver to the Owner another or an additional 
bond.
    Section 4--Delivery of Possession and Control to the Owner. Upon 
written request of the Owner, the Contractor will deliver to the 
Owner full possession and control of any portion of the Project 
provided the Contractor shall have been paid at least ninety percent 
(90%) of the cost of construction of such portion. Upon such 
delivery of possession and control to the Owner, the risks and 
obligations of the Contractor as set forth in Section 1f of this 
Article IV with respect to such portion so delivered to the Owner, 
shall be terminated; Provided, however, that nothing herein 
contained shall relieve the Contractor of any liability with respect 
to defective workmanship as specified in Article 11, Section 4.

ARTICLE V--REMEDIES

    Section 1--Completion on Contractor's Default. If default shall 
be made by the Contractor or by any subcontractor in the performance 
of any of the terms of this Proposal, the Owner, without in any 
manner limiting its legal and equitable remedies in the 
circumstances, may serve upon the Contractor and the Surety, if any, 
a written notice requiring the Contractor to cause such default to 
be corrected forthwith. Unless within twenty (20) days after the 
service of such notice upon the Contractor and the Surety, if any, 
such default shall be corrected or arrangements for the correction 
thereof satisfactory to the Owner shall be made, the Owner may take 
over the construction of the Project and prosecute the same to 
completion by contract or otherwise for the account and at the 
expense of the Contractor, and the Contractor shall be liable to the 
Owner for any cost or expense in excess of the Contract price 
occasioned thereby. In such event the Owner may take possession of 
and utilize, in completing the construction of the Project, any 
materials, tools, supplies, equipment, appliance, and plant 
belonging to the Contractor or any of its subcontractors, which may 
be situated at the site of the Project. The Owner in such 
contingency may exercise any rights, claims, or demands which the 
Contractor may have against third persons in connection with this 
Proposal and for such purpose the Contractor does hereby assign, 
transfer, and set over unto the Owner all such rights, claims, and 
demands.

ARTICLE VI--MISCELLANEOUS

    Section 1--Patent Infringement. The Contractor will save 
harmless and indemnify the Owner from any and all claims, suits, and 
proceedings for the infringement of any patent or patents covering 
any equipment used in the work.
    Section 2--Permits for Explosives. All permits necessary for the 
handling or use of dynamite or other explosives in connection with 
the construction of the Project shall be obtained by and at the 
expense of the Contractor.
    Section 3--Compliance with Statutes and Regulations. The 
Contractor will comply with all applicable statutes, ordinances, 
rules, and regulations pertaining to the work. The Contractor 
acknowledges that it is familiar with the Rural Electrification Act 
of 1936, as amended, the so-called ``Kick-Back'' Statute (48 Stat. 
948), and regulations issued pursuant thereto, and 18 U.S.C. 287, 
1001, as amended. The Contractor understands that the obligations of 
the parties hereunder are subject to the applicable regulations and 
orders of Governmental agencies having jurisdiction in the premises.
    Section 4. Equal Opportunity Provisions.
    a. Contractor's Representations.
    The Contractor represents that: It has ________, does not have 
________, 100 or more employees, and if it has, that it has 
________, has not ________, furnished the Equal Employment 
Opportunity--Employers Information Report EEO-1, Standard Form 100, 
required of employers with 100 or more employees pursuant to 
Executive Order 11246 and Title VII of the Civil Rights Act of 1964.
    The Contractor agrees that it will obtain, prior to the award of 
any subcontract for more than $10,000 hereunder to a subcontractor 
with 100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100.
    The Contractor agrees that if it has 100 or more employees and 
has not submitted a report on Standard Form 100 for the current 
reporting year and that if this Contract will amount to more than 
$10,000, the Contractor will file such report, as required by law, 
and notify the Owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    b. Equal Opportunity Clause. During the performance of this 
Contract, the Contractor agrees as follows:
    (1) The Contractor will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex, or 
national origin. The Contractor will take affirmative action to 
ensure that applicants are employed, and that employees are treated 
during employment without regard to their race, color, religion, 
sex, or national origin. Such action shall include, but not be 
limited to, the following: Employment, upgrading, demotion or 
transfer; recruitment or recruitment advertising; layoff or 
termination; rates of pay or other forms of compensation; and 
selection for training, including apprenticeship. The Contractor 
agrees to post in conspicuous places, available to employees and 
applicants for employment, notices to be provided setting forth the 
provisions of this Equal Opportunity Clause.
    (2) The Contractor will, in all solicitations or advertisements 
for employees placed by or on behalf of the Contractor, state that 
all qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex, or national origin.
    (3) The Contractor will send to each labor union or 
representative of workers, with which it has a collective bargaining 
agreement or other contract or understanding, a notice to be 
provided advising the said labor union or workers' representatives 
of the Contractor's commitments under this section, and shall post 
copies of the notice in conspicuous places available to employees 
and applicants for employment.
    (4) The Contractor will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and of the rules, regulations, 
and relevant orders of the Secretary of Labor.
    (5) The Contractor will furnish all information and reports 
required by Executive Order 11246 of September 24, 1965, and by 
rules, regulations, and orders of the Secretary of Labor, or 
pursuant thereto, and will permit access to its books, records, and 
accounts by the administering agency and the Secretary of Labor for 
purposes of investigation to ascertain compliance with such rules, 
regulations, and orders.
    (6) In the event of the Contractor's noncompliance with the 
Equal Opportunity Clause of this Contract or with any of the said 
rules, regulations, or orders, this Contract may be cancelled, 
terminated, or suspended in whole or in part, and the Contractor may 
be declared ineligible for further Government contracts or federally 
assisted construction contracts in accordance with procedures 
authorized in Executive Order 11246 of September 24, 1965, and such 
other sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24,1965, or by rule, regulation, 
or order of the Secretary of Labor, or as provided by law.
    (7) The Contractor will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations, or order of the Secretary of Labor issued pursuant to 
Section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Contractor will take such action with respect to any subcontract 
or purchase order as the administering agency may direct as a means 
of enforcing such provisions, including sanctions for noncompliance: 
Provided, however, That in the event a Contractor becomes involved 
in, or is threatened with, litigation with a subcontractor or vendor 
as a result of such direction by the administering agency, the 
Contractor may request the United States to enter into such 
litigation to protect the interests of the United States.
    c. Certificate of Nonsegregated Facilities. The Contractor 
certifies that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Contractor certifies further that it will not maintain or provide 
for its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Contractor agrees that a breach of 
this certification is a violation of the Equal Opportunity Clause in 
this Contract. As used in this certification, the term ``segregated 
facilities'' means any waiting rooms, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Contractor agrees that (except where it has 
obtained identical certifications from proposed subcontractors for 
specific time periods) it will obtain identical certifications from 
proposed subcontractors prior to the award of subcontracts exceeding 
$10,000 which are not exempt from the provisions of the Equal 
Opportunity Clause, and that it will retain such certifications in 
its files.
    Section 5--Franchises and Rights-of-way. The Contractor will be 
under no obligation to obtain or assist in obtaining any franchises, 
authorizations, permits, or approvals required to be obtained by the 
Owner from Federal, State, County, Municipal or other authority; any 
rights-of-way over private lands or any agreements between the Owner 
and third parties with respect to the joint use of poles, crossing 
or any other matter incident to the construction and operation of 
the Project.
    Section 6--Nonassignment of Contract. The Contractor will not 
assign the Contract effected by an acceptance of this Proposal or 
any part thereof or enter into any contract with any person, firm or 
corporation for the performance of the Contractor's obligations 
thereunder, or any part thereof, without the approval in writing of 
the Owner.

Section 7--Definitions.

    a. The term Owner shall also include an engineer employed by the 
Owner, or a firm or engineer retained by the Owner, and designated 
by the Owner to act in that capacity. The Contractor will be 
notified in writing by the Owner of those designated to act for the 
Owner at the time of acceptance of this Proposal.
    b. The term Completion of Construction shall mean full 
performance by the Contractor of the Contractor's obligations under 
the contract and all amendments and revisions thereof relating to 
any Section of the Project or to the Project except the Contractor's 
obligations in respect of (i) Certificate of Contractor and 
Indemnity Agreement--Line Extensions under Article III, section 2 
hereof and (ii) the Final Inventory referred to in Article III, 
Section 1a hereof.
    c. The term Completion shall mean full performance by the 
Contractor of the Contractor's obligations under the Contract and 
all amendments and revisions thereof relating to any Section of the 
Project or to the Project.
    Section 8--Extension to Successors and Assigns. Each and all of 
the covenants and agreements contained in the Contract effected by 
the acceptance of the Proposal shall extend to and be binding upon 
the successors and assigns of the parties thereto.

________ (Contractor)
By ________ (President)
________ (Address)
ATTEST: ________ (Secretary)
________ Date of Proposal

    This Proposal must be signed with the full name of the 
Contractor. If the Contractor is a partnership, the Proposal must be 
signed in the partnership name by a partner. If the Contractor is a 
corporation, the Proposal must be signed in the corporate name by a 
duly authorized officer and the corporate seal affixed and attested 
by the Secretary of the Corporation.

Construction Units--New Construction

SECTION 1--POLE UNITS

    A pole unit consists of the installation of one pole. The first 
two digits indicate the length of the pole; the third digit shows 
the classification per A.S.A. (Example: 25-6 means a pole 25 feet 
long, class 6.) 

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                         Unit No.                               price   
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POLE TOP ASSEMBLY UNITS

    A pole top assembly unit consists of the installation of the 
hardware, crossarms and their appurtenances, insulators, etc., 
except tie wire, required to support the primary conductors.

SECTION A--1 PHASE 

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                         Unit No.                               price   
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SECTION B--V PHASE 

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                         Unit No.                               price   
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SECTION C--3 PHASE 

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                         Unit No.                               price   
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SECTION D--CONDUCTOR

    A conductor assembly unit consists of the installation of 1,000 
feet of conductor or cable for primaries, secondaries or services. 
Tree trimming necessary for installing services and secondaries on 
poles not carrying primary line is included with the conductor 
assembly unit and shall be performed in accordance with the 
directions of the Owner. The service shall be connected to the 
secondary or transformer and 2 feet of conductor or cable shall be 
left for connecting to the consumer's service entrance. In computing 
the compensation to the Contractor for conductor assembly units only 
the horizontal distance between conductor supports or pole stales 
shall be used. The conductor or cable sizes and types listed are the 
manufacturer's designation. 

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                         Unit No.                               price   
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SECTION E--GUY ASSEMBLY UNITS

    A guy assembly unit consists of the installation of the hardware 
and wire, and guy insulator where necessary. An overhead guy 
assembly unit does not include the associated pole and down guy, 
each of which is listed separately. Guy guards are designated 
separately. 

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                         Unit No.                               price   
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SECTION F--ANCHOR ASSEMBLY UNITS

    An anchor assembly unit consists of the installation of an 
anchor with rod complete, ready for attaching the guy wire. 

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                         Unit No.                               price   
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SECTION G--TRANSFORMER ASSEMBLY UNITS

    A transformer assembly unit consists of the installation of the 
transformer, its protective equipment and its hardware and leads 
with their connectors and supporting insulators and pins. This unit 
does not include the installation of the pole top, secondary, 
service, or grounding assemblies. 

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                         Unit No.                               price   
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SECTION J--SECONDARY ASSEMBLY UNITS

    A secondary assembly unit consists of the installation of the 
hardware, insulators, etc., to support the secondary conductor or 
cable. It does not include the installation of the secondary 
conductor or cable, or of any hardware, insulators, etc., required 
to support service conductors or cable. 

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                         Unit No.                               price   
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SECTION K--SERVICE ASSEMBLY UNITS

    A service assembly unit consists of the installation of the 
hardware, insulators, etc. to support the service conductors or 
cable. It does not include the installation of the service conductor 
or cable, or of any hardware, insulators etc. required to support 
secondary conductors or cable. 

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                         Unit No.                               price   
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SECTION M--MISCELLANEOUS ASSEMBLY UNITS

    A miscellaneous assembly unit consists of the installation of an 
additional unit needed in the Project for new line construction but 
not otherwise listed in the Proposal. This section includes the 
installation of grounding assemblies, fuse cutouts, reclosers, 
sectionalizers, switches, capacitors, regulators, metering and other 
assembly units. 

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                         Unit No.                               price   
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    SECTION R--RIGHT-OF-WAY CLEARING UNITS
    R1-10. The unit is 1,000 feet in length and 10 feet in width (to 
be measured on one side of the pole line) of actual clearing of 
right-of-way. This includes clearing of underbrush, tree removal, 
and such tree trimming as is required so that the right-of-way, 
except for tree stumps which shall not exceed ________ in height, 
shall be clear from the ground up on one side of the line of poles 
carrying primary conductors.
    This unit does not include clearing or trimming associated with 
secondaries or services which is included with conductor units. The 
length of actual clearing shall be measured in a straight line 
parallel to the horizontal line between stakes and across the 
maximum dimension of foliage cleared projected to the ground line. 
All trees and underbrush across the width of the right-of-ways as 
designated by the Owner shall be considered to be grouped together 
as a single length in measuring the total length of clearing. Spaces 
along the right-of-way in which no trees are to be removed or 
trimmed or underbrush cleared shall be omitted from the total 
measurement. All length thus arrived at, added together and divided 
by 1,000, shall give the number of 1,000-foot R1-10 units of 
clearing. This unit includes the removal or topping, at the option 
of the Contractor, of danger trees outside of the right-of-way when 
so designated by the Owner. (Danger trees are defined as dead or 
leaning trees which, in falling, will affect the operation of the 
line.) The Contractor shall not remove or trim shade, fruit, or 
ornamental trees unless so directed by the Owner.
    R1-20. This unit is identical with R1-10 except that width is 20 
feet (to be measured 10 feet on each side of the pole line).
    R1-30. This unit is identical with R1-10 except that width is 30 
feet (to be measured 15 feet on each side of the pole line).
    R1-40. This unit is identical with R1-10 except that width is 40 
feet (to be measured 20 feet on each side of the pole line).
    RC1-10, RC1-20, RC1-30, RC1-40. These units are identical to the 
respective R1 units except that chemical treatment of stumps is 
required in addition to the clearing of underbrush, tree removal and 
tree trimming.
    Additional Requirements (When specifying R1 units denote type of 
disposal (A or B).)
    A. Trees, brush, branches and refuse shall, without delay, be 
disposed of by such of the following methods as the Owner will 
direct (Owner to strike out methods not to be used):
    1. Burned.
    2. Piled on one side of right-of-way.
    3. Roller chopped and left on right-of-way in such a manner as 
not to obstruct roads, ditches, drains, etc.
    4. Other (describe) ________.
    B. Trees that are felled shall be cut to commercial wood 
lengths, stacked neatly, and left on the right-of-way for the 
landowner. Commercial wood length means the length designated by the 
Owner but in no case shall it be required to be less than (________) 
feet. Brush, branches, and refuse shall, without delay, be disposed 
of by such of the following methods as the Owner will direct (Owner 
to strike out methods not to be used):
    1. Burned.
    2. Piled on one side of right-of-way.
    3. Roller chopped and left on right-of-way in such a manner as 
not to obstruct roads, ditches, drains, etc.
    4. Other (describe) ________.

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                          Unit No.                              price   
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SECTION S--SUBSTATION ASSEMBLY UNITS

    A substation assembly unit consists of the complete substation 
ready for connection of the line conductors, as shown on the 
substation drawings attached. 

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                          Unit No.                              price   
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SECTION UD--UNDERGROUND CABLE ASSEMBLY UNITS

    An underground cable assembly unit consists of the installation 
of 1,000 feet of cable for underground primaries, secondaries or 
services. It does not include the plowing, trenching and 
backfilling, or the termination of the primary cable which are 
provided for in other assembly units. It includes the labor for the 
termination, connection and sealing of secondary and service cables 
and conductors as shown in the specifications and construction 
drawings, and the labor for making all primary, secondary and 
service cable splices (buried cable may be spliced only when and 
where permitted by the Owner\1\,\2\.) In computing the compensation 
to the Contractor for underground cable assembly units, only the 
distance between stakes, paralleling the cable shall be used. The 
number of units so computed includes all installation of cable in 
all specified trenches, risers, conduits, crossings, manholes, 
transformers, terminal housings and meter boxes.\3\ The conductor or 
cables
---------------------------------------------------------------------------

    \1\________ Owner check here if primary splices are permitted.
    2________ Owner check here if secondary and service splices 
are permitted.
    \3\________ Owner check here if 12 feet of service conductor is 
to be left as a coil 3 feet from the building with ends capped 
instead of connection to meter box.
---------------------------------------------------------------------------

listed are the manufacturer's designation of types, size, voltage 
rating and material. The Contractor and the Owner shall jointly 
perform cable acceptance tests on installed cable in accordance with 
the specifications using test equipment furnished by the ________ 
(Owner to insert Owner or Contractor). 

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                          Unit No.                              price   
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SECTION UG--UNDERGROUND TRANSFORMER ASSEMBLY UNITS

    An underground transformer assembly unit consists of the 
installation of the transformer, its housing, warning sign, 
switches, over-current protective devices, grounding loop, and its 
hardware and leads with their connectors and supporting insulators. 
This unit also includes the installation of primary cable 
terminations but not of lightning arresters, fault indicators or 
ground rods, nor does it include any trenching. For pad-mount 
transformers, it does not include installation of the pad, drainable 
material, backfilling, compaction, or site preparation which are 
included in the pad assembly units. For submersible transformers it 
includes the installation of cable terminations, of the enclosure 
and cover, of drainable material (when specified)\4\ and the 
excavation.
---------------------------------------------------------------------------

    \4\________ Owner check here if drainable material is specified.

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                          Unit No.                              price   
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SECTION UK--UNDERGROUND SECONDARY AND SERVICE ASSEMBLY UNITS

    An underground secondary and service assembly unit consists of 
the installation of the secondary or service cable terminal housing. 
It includes the installation of the power pedestal, stake (when 
required), mounting hardware, warning sign, directional marker, 
housing identification marking, and the cable identification tags. 
It does not include the installation of the cable terminations, 
ground rod, or pad, when required. 

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                          Unit No.                              price   
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SECTION UM--MISCELLANEOUS UNDERGROUND ASSEMBLY UNITS

    A miscellaneous underground assembly unit consists of the 
installation of an additional unit needed in the Project for new 
construction, but not otherwise listed in the Proposal. This section 
includes the installation of the miscellaneous assembly units as 
shown on the respective underground construction drawings. Where 
miscellaneous units consist of or include the installation of a 
primary cable termination, the unit includes the preparation of the 
cable to accommodate the termination, the installation of the stress 
cone, and the connection of the cable to the terminal equipment. Pad 
assembly units are in this section and include the installation of 
the bedding, drainable material (when specified), cable slot, and 
site preparation, backfilling and tamping. 

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                          Unit No.                              price   
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SECTION UR--UNDERGROUND EXCAVATION ASSEMBLY UNITS

    UR1-S (D) Plowing Assembly Unit, Soil--Consists of one (1) 
lineal foot of plowing in soil, measured parallel to the surface of 
the ground, to a specified depth (D), in inches, including the 
compacting, except as specifically provided for in other units. This 
unit includes all labor required in the repair and/or replacement of 
streets, roads, drives, fences, lawns, shrubbery, watermains, pipes, 
pipelines and contents, underground power and telephone facilities, 
buried sewerage and drainage facilities, and any other property 
damaged during the plowing of the cable, except as specifically 
provided for in other units. Note: Where in the judgment of the 
Owner greater than normal difficulty will be involved in plowing 
because of the presence of underground facilities of other 
utilities, this unit will be suffixed by the letter ``T''. This will 
be applicable only in those areas predesignated by the Owner on the 
detail maps herein. All plowing outside of the predesignated area on 
the map, regardless of the difficulty in placement actually 
experienced, will be inventoried as the regular UR1-S (D) units. If 
field conditions show the existence of rock to prevent the placing 
of the cable in soil to the depth required in the specifications the 
Owner may specify UR2-R units. Where more than one cable is to be 
installed in the slot, the UR1-S unit designation should be modified 
by a suffix corresponding to the number of cables installed. For 
example, UR1-S (D) 3c for 3 cables plowed at one time.
    UR2-S (D&W) Trenching Assembly Unit, Soil--Consists of one (1) 
lineal foot of trenching in soil, measured parallel to the surface 
of the ground, to a specified depth (D) and width (W), in inches, 
including the excavation, and backfilling and compacting. This unit 
includes all labor required in the repair and/or replacement of 
streets, roads, drives, fences, lawns, shrubbery, watermains, pipes, 
pipelines and contents, underground power and telephone facilities, 
buried sewerage and drainage facilities, and any other property 
damaged by the trenching, except as specifically provided for in 
other units. Note: Where in the judgment of the Owner greater than 
normal difficulty will be involved in trenching because of the 
presence of underground facilities of other utilities, this unit 
will be suffixed by the letter ``T''. This will be applicable only 
in those areas predesignated by the Owner on the detail maps herein. 
Where more than one cable is to be installed in the trench, the 
regular UR2-S unit designation should be modified by a suffix 
corresponding to the construction drawing for the type of cable 
placement desired.
    UR2-R (D&W) Trenching Assembly Unit, Rock--Consists of one (1) 
lineal foot of trenching in rock, measured parallel to the surface 
of the ground, to specified depth (D) and width (W), in inches, 
including the excavation, and backfilling and compacting to place 
cable to the depth specified in the Specifications. This unit will 
be specified by the Owner only when field conditions at the site 
show the existence of rock at a depth preventing the placing of the 
cable in soil to the depths required in the Specifications. This 
unit includes all labor required in the repair and/or replacement of 
streets, roads, drives, fences, lawns, shrubbery, watermains, pipes, 
pipelines and contents, underground power and telephone facilities, 
buried sewerage and drainage facilities, and any other property 
damaged by the trenching, except as specifically provided for in 
other units. This unit does not include underground cable facilities 
installed in the trench or cable bedding assembly units, when 
required.
    UR-3 Cable Bedding Assembly Unit--Consists of the installation 
of one (1) lineal foot of a 2-inch bed of clean sand or soil placed 
in the trench under the cable and a 4-inch layer of clean sand or 
soil backfill over the cable to the width of the trench.
    Note: The exact location and number of units shall be determined 
by the Owner after the trenches are open in those areas where rock 
or other conditions make special bedding necessary.
    UR-4a Pavement Assembly Unit, Asphalt--Consists of the labor 
necessary to remove and restore one (1) lineal foot of asphalt 
pavement, measured along the route of the cable, including any 
trenching necessary to place the cable at the required depth. All 
work shall be performed in accordance with the requirements of State 
or local authorities.
    UR-4c Pavement Assembly Unit, Concrete--Consists of the labor 
necessary to remove and restore one (1) lineal foot of concrete 
pavement, measured along the route of the cable, including any 
trenching necessary to place the cable at the required depth. All 
work shall be performed in accordance with the requirements of State 
or local authorities.
    UR-5 (  ) Underground Pipe Crossing Assembly Unit--Consists of 
the installation of one (1) lineal foot of steel pipe, of the inside 
diameter, in inches, specified in the last digit of the assembly 
unit designation, installed in place. This unit includes the pushing 
of pipe and any excavation, backfilling and tamping necessary for 
the installation of the pipe. The pipe will be installed at the 
depth specified by the Owner. The installation of underground cable 
in the pipe is not included in this unit.
    UR-6 Underground Nonpipe Crossing Assembly Unit--Consists of the 
labor in providing a hole in soil one (1) foot in length of a 
diameter sufficient to accommodate the cable to be installed 
therein. The depth of the hole below the surface of the ground shall 
be specified by the Owner. This unit includes any excavation, 
backfilling and tamping necessary for the installation. This unit 
may be used where the permanent installation of a steel pipe under 
the UR-5 unit is not required. The installation of underground cable 
in the pipe is not included in this unit. 

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                         Unit No.                               price   
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Construction Units--Line Changes

    The general heading of Line Changes applies to the changing of 
existing lines or portions thereof from their existing phasing, wire 
size, and type to new phasing, wire size, and type and the removal 
of existing lines or portions thereof and replacing with new lines 
in close proximity thereto. In general line changes involve three 
types of assembly units as follows:
    Section H--Conversion assembly units;
    Section I--Removal assembly units;
    Section N--New construction assembly units on existing lines or 
in replacing lines.
    The assembly units that are included in Sections H, I, and N are 
defined by symbols and descriptions which follow together with the 
applicable descriptions included under New Construction. Where the 
descriptions are not correct or sufficiently explicit, or when 
special units are not covered by Construction Drawings, descriptions 
have been provided by the Owner in the respective sections.
    Work included in these sections shall be performed under a 
schedule of deenergization and operating procedures as set forth by 
the Owner at the time of release of any Section involving work on 
existing lines. The Contractor will so plan and perform its work 
that it will be possible to safely reenergize all lines involved at 
the expiration of the time limits set up in the schedule to resume 
service to all consumers being served prior to deenergization. Prior 
to commencement of work each day on lines to be deenergized, and 
upon completion of work each day on such lines, the Contractor will 
notify the Owner thereof in writing or in such other manner as the 
circumstances permit.

SECTION H--CONVERSION ASSEMBLY UNITS

    Conversion assembly units are pole-top assemblies and cover the 
furnishing of all labor for changing an existing assembly unit to a 
new assembly unit, utilizing certain items of materials of the 
existing assembly unit on poles to be left in place. Any materials 
removed from the existing assembly units which are not required in 
the construction of the conversion assembly unit are to be reused by 
the Contractor in the construction of other assembly units, or 
returned to Owner's warehouse, as directed by the Owner.
    Conversion assembly units are specified by the prefix H with the 
new construction assembly unit designation shown first and the 
existing assembly unit designation shown last. For example, an H B1-
A1 signifies the conversion of an existing A1 assembly unit to a B1 
assembly unit (as was defined in the description of construction 
assembly units). In this instance the Contractor utilizes the 
existing pin-type insulator, single upset bolt and neutral spool and 
installs the additional crossarm, crossarm pins, braces, machine 
bolt, carriage bolts, lag screw, and insulator supplied by the Owner 
required for the new unit. The Contractor transports the pole-top 
pin and two machine bolts to the warehouse or uses them on the 
Project as directed by the Owner.
    The Conversion assembly units also include the furnishing of all 
labor in the transferring, resagging and retying of conductors from 
one position on the pole to a different position on the pole where 
such transfers are required. Where replacement of conductor is 
required, the existing conductor will be removed under section I and 
the new conductor installed under section N. Where replacement of a 
pole is required, the existing pole and pole-top assembly will be 
removed under section I and the new pole and pole-top assembly will 
be installed according to section N and no H units will be involved.
    Conversion assemblies are listed in three subsections for 
converting pole-top assemblies from single to V phase, single to 
three phase, and V to three phase. The following descriptions apply 
to only those conversion units not sufficiently explicit: 

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                           Unit                              Description
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Subsection H (B-A)  1 Phase to V Phase 

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                                                              Unit labor
                         Unit No.                               price   
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Subsection H (C-A)  1 Phase to 3 Phase 

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                                                              Unit labor
                         Unit No.                               price   
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Subsection H (C-B) V Phase to 3 Phase 

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                                                              Unit labor
                         Unit No.                               price   
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SECTION I--REMOVAL ASSEMBLY UNITS

    Removal assembly units cover the furnishing of all labor for the 
removal of existing units of construction from existing lines, 
disassembling into material items, and all labor and transportation 
for the returning of all materials to the warehouse of the Owner in 
an orderly manner or transporting elsewhere to the site of the 
Project for reuse in the prosecution of this Contract as directed by 
the Owner.
    The unit removal prices shall include all labor required to 
reinstall in accordance with specifications any conductors 
temporarily detached. The Contractor will reinstall at his own 
expense any other units removed by him for his own convenience. The 
removal units are specified by the prefix I and followed by the 
assembly unit designation of existing assembly unit to be removed. 
For example, an I-A1 signifies the removal of an A1 assembly unit. 
The following special notes apply to specific removal units:
    a. Poles. All poles of the same height, regardless of pole 
class, are designated by the same unit. Thus an I-30-foot pole 
signifies the removal of a 30-foot pole of any class. The Contractor 
is not required under this unit to remove from the pole any ground 
wire or pole numbering attached to the pole. This unit includes the 
refilling and tamping of holes in a workmanlike manner unless they 
are to be reused.
    b. Pole-top assemblies. The unit of removal of pole-top 
assemblies includes, in addition to the removal of the assembly 
itself, any necessary handling, resagging, and retying of conductors 
in those cases where an existing pole-top assembly will be removed 
and replaced by a new pole-top assembly and where any existing 
conductor is to be reused.
    The unit of removal of pole-top assemblies also includes any 
holding or handling of mainline or tap conductors at tap lines, 
angles, and deadends where such is involved, and the reinstalling of 
such conductor in accordance with the Specifications; for example, 
an I-A5-4 will include the disconnection of the tap conductors, 
snubbing off the tap line at the nearest practical point and the 
reconnection and resagging of these tap conductors if necessary to 
the new tap assembly when installed. The new unit of construction, 
however, will be specified separately in Section N.
    c. Conductor. The conductor removal unit covers the removal of 
1,000 feet of conductor or cable and reeling or coiling it in a 
workmanlike manner in such a way that it can be reused by the 
Contractor or the Owner. The Owner will furnish to the Contractor 
reels if it is to be returned to the Owner's warehouse on reels. The 
removal unit for each size of conductor or cable is shown by the 
prefix I followed by D and the conductor or cable type; thus an I-D 
6ACWC signifies the removal unit for 1,000 feet of 6 A Copperweld-
copper conductor.
    d. Guys. All guys regardless of length, type of attachment, or 
size of guy strand are specified by the same unit; thus an I-E 
signifies the removal of any guy.
    e. Anchors. Only anchor rods are to be removed by the Contractor 
in anchor removal units. The anchors will be left in the ground; 
thus an I-F signifies the removal of any anchor rod. If the rod 
cannot be unscrewed, the end of the rod shall either be cut off or 
bent down so that the rod will be at least 18 inches below ground.
    f. Transformers. The unit for removal of transformer assembly 
units is divided into two sections, (1) Conventional Transformer 
Assembly, and (2) Self-protected Transformer Assembly. Only one unit 
is specified for each type, and all sizes of transformers from 1 to 
15 kVA within each group will be covered by the same unit. ``Self-
protected'' refers to transformers where all protective equipment is 
mounted on or within the transformer. ``Conventional'' refers to 
transformers where protective equipment is mounted separately from 
the transformer. The unit is designated by the prefix I followed by 
the description of the unit to be removed; thus, I-G Conventional 
signifies the removal of a conventional transformer assembly for any 
size transformer from 1 to 15 kVA.
    g. Secondary units. The unit for removal of secondary assemblies 
includes, in addition to the removal of the assembly itself, all 
necessary handling such as untying, resagging, and retying of 
secondary conductor or cables where existing secondary conductor or 
cable is to be reused.
    In addition, the unit for removal of the secondary assembly 
includes the handling or holding of any conductor at tap lines where 
such is involved, and the reinstalling of such tap conductor in 
accordance with the Specifications.
    h. Service unit. The unit for removal of service assemblies 
includes, in addition to the removal of the assembly itself, all 
necessary handling such as untying, resagging, and retying of 
service conductor or cable where existing service conductor or cable 
is to be reused.
    The following descriptions apply only to those removal units not 
sufficiently explicit: 

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                            Unit                             Description
------------------------------------------------------------------------
                                                                        
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                                                              Unit labor
                          Unit No.                              price   
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SECTION N--NEW ASSEMBLY UNITS

    The purpose of this section is to list complete new units of 
construction where such units are to be added to existing lines or 
installed in replacing lines.
    The units as covered by this section are the same as the units 
described in Construction Units--New Construction, except that these 
units are prefixed by the letter N.
    For example, an N40-6 unit covers the furnishing of all labor 
for the installation of a 40-6 pole either in an existing 
distribution line being operated by the Owner or in a new line being 
constructed to replace an existing distribution line being operated 
by the Owner.
    The following descriptions apply only to those new units not 
sufficiently explicit: 

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                            Unit                             Description
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                          Unit No.                              price   
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Acceptance

    The undersigned hereby accepts the foregoing Proposal of ____, 
dated ____, to construct the rural electric Project ____19____ Line 
Extensions.

____ (Owner)
By ____ President
____ Secretary
____ Date of Contract

[End of clause]


Sec. 1726.344  [Reserved].


Sec. 1726.345  Certificate of contractor and indemnity agreement (line 
extensions), REA Form 792b.

    The closeout form in this section shall be used when required by 
this part.

Certificate of Contractor and Indemnity Agreement (Line Extensions)

    ________, certifies that he is the ________ (title or 
designation), of ________ (name of contractor), the Contractor, in a 
contract dated ________ 19________ entered into between the 
Contractor and ________ (name of REA Borrower) ________, the Owner, 
for the construction of a rural electric Project (hereinafter 
referred to as Project), which bears the Project Designation 
________ 19________ Line Extensions, and that he is authorized to 
and does make this Certificate and Indemnity Agreement on behalf of 
said Contractor in order to induce the Owner to make payment to the 
Contractor, in accordance with the provisions of the said contract.
    Undersigned further says that all persons who have furnished 
labor in connection with the Section of the Project represented by 
the Final Inventory dated ________, in the amount of $________, have 
been paid in full; that all manufacturers, materialmen and 
subcontractors which furnished any materials or services, or both, 
for the said Section of the Project have been paid in full; that no 
lien has been filed against the Project and no person has any right 
to claim any lien against the Project.
    Undersigned further says that if the Owner pays the Contractor 
the contract price for the said Section of the Project the 
Contractor will indemnify and hold harmless and does hereby 
undertake and agree to indemnity and hold harmless the Owner from 
any claim or lien arising out of the negligence or other fault of 
the Contractor in respect of the performance of the contract which 
may have been or may be filed against the Owner.
________ Signature of Contractor (President, Vice-President, Partner 
or Owner, or, if signed by other than one of foregoing, Power of 
Attorney signed by one of the foregoing should be attached. Indicate 
applicable designation.)

[End of clause]


Sec. 1726.346  Supplemental contract for additional project, REA Form 
792c.

    The form in this section shall be used when required by REA Form 
201, 790, or 792.

Supplemental Contract for Additional Project

Date ________
TO: ________ Contractor

    Pursuant to Article I, Section 2 of the Contractor's Proposal 
dated ________, for the rural electric Project ________, we request 
that you construct Additional Project No. ________, consisting of 
approximately the following system improvement and line extension 
work: ________.
    The Additional Project is to be constructed in accordance with 
all of the provisions of the Contractor's Proposal, except:
    1. The time for completion of the Additional Project shall be 
________.
    2. The prices for Construction Units for the Additional Project 
are attached.
    Please indicate your acceptance of the foregoing by signing 
below, return two signed copies and retain one copy.

Sincerely,
________ Owner

    By ________ President, Vice President (strike out inapplicable 
designation.)

ACCEPTANCE:
________ Contractor

    By ________ President, Vice President, Partner (strike out 
inapplicable designation.)
    Date ________

[End of clause]


Secs. 1726.347--1726.349  [Reserved].


Sec. 1726.350  Construction contract amendment for payment, REA Form 
800.

    The amendment form in this section shall be used when required by 
this part.

Construction Contract Amendment for Payment

DATE: ________
________ (Owner)
________ (Address)
Project: ________

    You are requested to amend the Construction Contract between the 
undersigned Contractor and you, as Owner, dated ________ for the 
above Project, so that, notwithstanding any provision of the 
Construction Contract to the contrary, the Owner shall make payment 
to the Contractor of ninety (90%) percent of the invoice cost to the 
Contractor of the following equipment or materials delivered to the 
site of the Project but not installed: 

------------------------------------------------------------------------
                                                     Invoice price      
                                              --------------------------
   Item of equipment or materials      No. of            Extended price 
                                       items     Per   -----------------
                                                 item    Total     90%  
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

    Total Amount of Amendment ________
    A. The Contractor warrants that the above equipment and 
materials are:
    1. Actually on the site of the Project and will remain thereon 
until installed in the Project.
    2. To be incorporated into the Project not sooner than sixty 
(60) days after the date of this request.
    3. In conformance with specifications and not in excess of the 
quantity required for the Project.
    4. Properly stored and protected from weather, theft and other 
hazards.
    5. Capable of being easily inventoried as to the original 
quantity as well as the quantity remaining each month.
    B. The Contractor agrees to furnish to the Owner releases of 
liens properly executed by suppliers for the delivered equipment and 
materials upon which payment is being made.
    C. If the Owner accepts and the Administrator approves this 
Amendment, the Owner agrees to make payment to the Contractor within 
thirty (30) days after such approval by the Administrator, provided 
the Contractor shall have theretofore furnished to the Owner the 
releases of liens required pursuant to Section B of this Amendment. 
There shall be deducted, on account of such payment, from any amount 
which may be due the Contractor pursuant to estimates computed in 
accordance with the provisions of Article III, section 1 (a) of the 
Construction Contract an amount equal to the invoice cost to the 
Contractor of equipment and materials paid for pursuant to this 
Amendment and installed by the Contractor during the period to which 
the estimate relates.
    D. Upon the making of payment hereunder, the title to the 
equipment and materials in respect of which payment is made shall 
pass to the Owner, but the risk of loss shall be borne by the 
Contractor until completion of construction as provided in Article 
IV, Section I of the Construction Contract.
    Sincerely yours,

Contractor: ________
By: ________
Agreed to: ________ (Surety)
By: ________ (Attorney in Fact)
Date: ________
    Accepted subject to the approval of the Administrator:
Owner: ________
By: ________ (President)
Date: ________

[End of clause]


Sec. 1726.351  Electric system construction contract (labor and 
materials), REA Form 830.

    The contract form in this section shall be used when required by 
this part. This form refers to guide drawings, which do not contain 
requirements, and, hence, are not included in this part. The guide 
drawings are included in the printed form available from GPO (See 
Sec. 1726.300.).

Electric System Construction Contract (Labor and Materials)

Notice And Instructions To Bidders

    1. Sealed proposals for the construction, including the supply 
of necessary labor, materials and equipment, of a rural electric 
project of ________ (hereinafter called the ``Owner'') to be known 
as ________ Project will be received by the Owner on or before 
________ o'clock ________ M., ________, 19________, at its office at 
________ at which time and place the proposals will be publicly 
opened and read. Any proposals received subsequent to the time 
specified will be promptly returned to the Bidder unopened.
    2. Description of Project: The Project will consist of 
approximately:

Overhead Distribution Line Construction
________ miles of ________ kV Single Phase Lines
________ miles of ________ kV V-Phase Lines
________ miles of ________ kV Three-Phase Lines
________ miles of secondary on secondary poles
________ miles of services for ________ consumers

Underground Distribution Facilities

________ miles of ________ kV Single-Phase Construction
________ miles of ________ kV V-Phase Construction
________ miles of ________ kV Three-Phase Construction
________ miles of ________ Volt Secondary and Service
Construction for ________ Consumers.

Distribution Line Changes, Conversion, and Removal

________ miles of ________

Transmission Line Construction

________ miles ________ kV; ________ miles ________ kV
________ miles ________ kV underbuild

Substations and Other Major Facilities

________ kVA ________ Voltage
________ Name

    This Project is located in ________ Counties, in the State(s) of 
________ all as more fully described in the Plans, Specifications, 
Construction Drawings, and Contractor's Proposal therefore 
hereinafter referred to.
    3. Work on energized lines. Unless stated below all construction 
work including attachments to existing poles and line changes, is to 
be done with the line deenergized. The hours during which existing 
lines will be deenergized are shown in the Contractor's Proposal. 
Approximately ________ miles of the line changes are to be made with 
the lines energized and such lines are in the following locations or 
areas: ________ and are more fully described in the Plans, 
Specifications, and Contractor's Proposal. For work in these 
locations the Bidder must provide personnel capable of working on 
energized lines. All such work shall be performed to meet at least 
the safety rules and regulations prescribed by the Owner for its own 
employees including the use of rubber gloves, hot sticks and 
associated protective equipment, a copy of which rules and 
regulations may be examined at the office of the Owner.
    4. Owner-furnished materials. The unit prices in the 
Contractor's Proposal should include provisions for Owner-Furnished 
Materials since as stated in Article I, Section 3 of the 
Contractor's Proposal, the value of the Owner-Furnished Materials, 
if any, will be deducted from payments to the Bidder for completed 
Construction Units.
    5. Obtaining and transferring documents. The Plans, 
Specifications and Construction Drawings, together with all 
necessary forms and other documents for bidders may be obtained from 
the Owner, or from the Engineer ________ at the latter's office at 
________ upon the payment of ten dollars ($10), which payment will 
not be subject to refund. The Plans, Specifications, and 
Construction Drawings may be examined at the office of the Owner or 
at the office of the Engineer. A copy of the Loan Contract (if the 
Project is to be financed, in whole or in part, pursuant to a loan 
contract) between the Owner and the United States of America acting 
through the Administrator of the Rural Electrification 
Administration and of the loan contract between the Owner and any 
other lender may be examined at the office of the Owner. Each set of 
Plans, Specifications and Construction Drawings will have a serial 
number, given by the Engineer, and the number of each set with the 
name of the purchaser will be recorded by the Engineer. Bids will be 
accepted only from the original purchaser.
    6. Manner of submitting proposals. Proposals and all supporting 
instruments must be submitted on the forms furnished by the Owner 
and must be delivered in a sealed envelope addressed to the Owner. 
The name and address of the Bidder, its license number if a license 
is required by the State, and the date and hour of the opening of 
bids must appear on the envelope in which the Proposal is submitted. 
Proposals must be filled in in ink or typewritten. No alterations or 
interlineations will be permitted, unless made before submission, 
and initialed and dated.
    7. Familiarity with conditions. Prior to the submission of the 
Proposal the Bidder shall make and shall be deemed to have made a 
careful examination of the site of the Project and of the Plans, 
Specifications, Construction Drawings, and forms of Contractor's 
Proposal and Contractor's Bond on file with the Secretary of the 
Owner and with the Engineer, and shall become informed as to the 
location and nature of the proposed construction, the transportation 
facilities, the kind and character of soil and terrain to be 
encountered, the kind of facilities required before and during the 
construction of the Project, general local conditions and all other 
matters that may affect the cost and time of completion of the 
Project. Bidders will be required to comply with all applicable 
statutes, regulations, etc., including those pertaining to the 
licensing of contractors, and the so-called ``Kick-Back Statute'' 
(48 State. 948) and regulations issued pursuant thereto.
    8. Proposals will be accepted only from those prequalified 
bidders invited by the Owner to submit a proposal.
    9. Alternate designs. The Owner reserves the right to confine 
its consideration of the several bids to one type of design 
regardless of alternate types of design which may be specified in 
the Plans and Specifications and offered in the Proposals.
    10. Proposals for distribution and transmission facilities. If 
the Project includes both distribution and transmission facilities, 
bidders shall bid on both of the facilities and the Owner will 
evaluate the Proposals on the basis of low total bid for both 
facilities.
    11. The Time for Completion of Construction of the Project shall 
be as specified by the Engineer in the Proposal.
    12. Bid bond. Each Proposal must be accompanied by a Bid Bond in 
the form attached or a certified check on a bank that is a member of 
the Federal Deposit Insurance Corporation, payable to the order of 
the Owner, in an amount equal to ten percent (10%) of the maximum 
bid price. Each Bidder agrees, provided its Proposal is one of the 
three low Proposals, that, by filing its Proposal together with such 
Bid Bond or check in consideration of the Owner's receiving and 
considering such Proposals, said Proposal shall be firm and binding 
upon each such Bidder and such Bid Bond or check shall be held by 
the Owner until a Proposal is accepted and a satisfactory 
Contractor's Bond is furnished (where required) by the successful 
Bidder and such acceptance has been approved by the Administrator, 
or for a period not to exceed sixty (60) days from the date 
hereinbefore set for the opening of Proposals, whichever period 
shall be the shorter. If such Proposal is not one of the three low 
Proposals, the Bid Bond or check will be returned in each instance 
within a period of ten (10) days to the Bidder furnishing same.
    13. Contractor's bond. The successful Bidder will be required to 
execute two additional counterparts of the Proposal and, for a 
Contract in excess of $100,000, to furnish a Contractor's Bond in 
triplicate in the form attached hereto with sureties listed by the 
United States Treasury Department as Acceptable Sureties, in a penal 
sum not less than the contract price.
    14. Failure to furnish contractor's bond. Should the successful 
Bidder fail or refuse to execute such counterparts or to furnish a 
Contractor's Bond (where required) within ten (10) days after 
written notification of the acceptance of the Proposal by the Owner, 
the Bidder will be considered to have abandoned the Proposal. In 
such event, the Owner shall be entitled (a) to enforce the Bid Bond 
in accordance with its terms, or (b) if a certified check has been 
delivered with the Proposal, to retain from the proceeds of the 
certified check, the difference (not exceeding the amount of the 
certified check) between the amount of the Proposal and such larger 
amount for which the Owner may in good faith contract with another 
party to construct the Project. The term ``Successful Bidder'' shall 
be deemed to include any Bidder whose Proposal is accepted after 
another Bidder has previously refused or has been unable to execute 
the counterparts or to furnish a satisfactory Contractor's Bond 
(where required.)
    15. Contract is entire agreement. The Contract to be effected by 
the acceptance of the Proposal shall be deemed to include the entire 
agreement between the parties thereto, and the Bidder shall not 
claim any modifications thereof resulting from any representation or 
promise made at any time by any officer, agent or employee of the 
Owner or by any other person.
    16. Minor irregularities. The Owner reserves the right to waive 
minor irregularities or minor errors in any Proposal, if it appears 
to the Owner that such irregularities or errors were made through 
inadvertence. Any such irregularities or errors so waived must be 
corrected on the Proposal in which they occur prior to the 
acceptance thereof by the Owner.
    17. Balanced bid. The Owner reserves the right to reject any or 
all Proposals. The attention of Bidders is specially called to the 
desirability of a proper balance between prices for labor and 
materials and between the total prices for the respective 
Construction Units. Lack of such balance may be considered as a 
reason for rejecting a Proposal.
    18. Discrepancy in unit prices. Where the unit prices in the 
Contractor's Proposal are separated into three columns designated as 
``Labor,'' ``Materials,'' and ``Labor and Materials,'' and where a 
discrepancy appears between the sum shown in the ``Labor and 
Materials'' column and the correct addition of the sums appearing in 
the ``Labor'' column and the ``Materials'' column, the correct 
addition of the sums appearing in the ``Labor'' column and the 
``Materials'' column shall control.
    19. Definition of terms. The terms Administrator, Engineer, 
Supervisor, Project, Completion of Construction, and Completion of 
the Project as used throughout this Contract shall be as defined in 
Article VI, Section 1, of the Contractor's Proposal.
    20. The owner represents:
    a. If by provisions of the Contractor's Proposal the Owner shall 
have undertaken to furnish any materials for the construction of the 
Project, such materials are on hand at locations specified or if 
such materials are not on hand they will be made available by the 
Owner to the successful Bidder at the locations specified before the 
time such materials are required for construction.
    b. All easements and rights-of-way, except as shown on maps 
included in the Plans and Specifications, have been obtained from 
the owners of the properties across which the Project is to be 
constructed (including tenants who may reasonably be expected to 
object to such construction). The remaining easements and rights-of-
way, if any, will be obtained as required to avoid delay in 
construction.
    c. All staking, except as shown on the maps included in the 
Plans and Specifications, has been completed and sufficient staking 
crews will be available to maintain stakes at all times in advance 
of construction.
    d. Where underground distribution construction is required, 
permission has been obtained from state and local highway and road 
authorities to install underground distribution power facilities and 
set pedestals, if any, on the highway and road right-of-way in the 
Project area. Notwithstanding such permission granted to the Owner, 
each Bidder is responsible for ascertaining that the equipment, 
methods of construction, and repair proposed to be used on the 
Project will meet all requirements of public authorities having 
jurisdiction over highway and road right-of-way. The successful 
Bidder will be required to furnish proof satisfactory to the Owner 
of compliance with this requirement. If required by highway or road 
authorities, the successful Bidder will furnish to such authorities 
a bond or meet other guaranty requirements to assure the prompt 
repair of all damages to highways and roads and their associated 
rights-of-way caused by the Bidder during construction of the 
Project. This requirement is in addition to and independent of the 
Contractor's Bond required under this Contract. The acceptance of a 
bid from any Bidder is not to be construed as approval of the 
Bidder's equipment or proposed construction methods by or on behalf 
of the highway and road authorities. Bidders may obtain information 
concerning the requirements of highway and road authorities by 
communicating with the following ________.
    e. All funds necessary for prompt payment for the construction 
of the Project will be available.
    If the Owner shall fail to comply with any of the undertakings 
contained in the foregoing representation or if any of such 
representations shall be incorrect, the Bidder will be entitled to 
an extension of time of completion for a period equal to the delay, 
if any, caused by the failure of the Owner to comply with such 
undertakings or by any such incorrect representation; provided the 
Bidder shall have promptly notified the Owner in writing of its 
desire to extend the time of completion in accordance with the 
foregoing; provided, however, that such extension, if any, of the 
time of completion shall be the sole remedy of the Bidder for the 
Owner's failure, because of conditions beyond the control and 
without the fault of the Owner, to furnish materials in accordance 
with subparagraph a. above.

Owner ________
By ________
    ________, 19____

Contractor's Proposal

(Proposal shall be submitted in ink or typewritten)
To: ________ (hereinafter called the ``Owner'')

Article I--General

    Section 1. Offer to Construct. The undersigned (hereinafter 
called the ``Bidder'') hereby proposes to receive and install such 
materials and equipment as may hereinafter be specified to be 
furnished by the Owner, and to furnish all other materials and 
equipment, all machinery, tools, labor, transportation and other 
means required to construct the rural electric project ________ in 
strict accordance with the Plans, Specifications and Construction 
Drawings for the prices hereinafter stated.
    The total length of the project lines shall be determined by 
taking the sum of all straight horizontal span distances between 
pole stakes or from center to center of poles, or centerline of 
structures, carrying conductors, plus the length of service drops, 
if any, measured horizontally from center of last pole to the point 
of attachment to the consumer's building.
    Section 2. Materials and Equipment. The Bidder agrees to furnish 
and use in the construction of the Project under this Proposal, in 
the event the Proposal is accepted, only such ``fully listed'' and 
``conditionally listed'' materials and equipment as are included in 
the current ``List of Materials Acceptable for Use on Systems of REA 
Electrification Borrowers,'' including revisions adopted prior to 
the Bid Opening. The use of ``conditionally listed'' materials and 
equipment requires prior consent by the Owner or Engineer.
    For distribution lines, the Bidder further agrees to furnish and 
use guy wire with ASTM Class ________ (Engineer to insert A or B) 
zinc coating.
    All leads on equipment such as transformers, reclosers, etc., 
shall be of #6 minimum copper conductivity using ________ (Engineer 
to insert standard soft drawn copper or aluminum alloy) conductor. 
All conductor ties on insulators shall be of the materials and 
methods shown in the following Tying Guide Drawings: ________ 
(Engineer to insert appropriate drawing numbers).
    Ground rods and butt-type pole grounding plates shall be 
________ (Engineer to insert galvanized steel or copper).
    Underground primary cable shall have ________ coated copper 
neutral (Engineer to insert round or flat).
    For transmission lines, the Bidder further agrees to furnish and 
use guy wire, overhead ground wire, and pole ground wire with ASTM 
Class ____ (Engineer to insert A, B, or C) zinc coating. Guy wire 
shall be the same size and grade as the overhead ground wire. Where 
overhead ground wire is not specified, the guy wire shall be 
________ size, ________ grade.
    The Bidder further agrees to furnish and use poles, crossarms, 
and other timber products, of which the physical characteristics, 
method of treatment, type of preservative, instructions on 
inspection and general procedure shall be in accordance with REA 
standards and requirements.
    Crossarms shall be ________ (Engineer to insert Douglas fir or 
Southern Yellow Pine), treated with ________ (Engineer to insert 
type of preservative.)
    The Bidder agrees that the prices for poles, crossarms, and 
other timber products set forth herein shall include the cost of 
preservative treatment and inspection, insured warranty, or quality 
assurance. The Bidder further agrees to obtain from the supplier 
inspection and treatment reports or insured warranties, for checking 
against the delivered timber, and to submit such reports or 
warranties to the Owner as one of the prerequisites to monthly and 
final payments.
    Section 3. Owner-Furnished Materials. The Bidder understands and 
agrees that, if this Proposal is accepted, the Owner will furnish to 
the Bidder the material set forth in the attached ``List of Owner's 
Materials on Hand'' (see page ____) and the Bidder will give a 
receipt (see page ____) therefore in writing to the Owner. The 
Bidder, further, will on behalf on the Owner accept delivery of such 
of the materials set forth in the attached ``List of Materials 
Ordered by Owner but Not Delivered'' (see page ____) as may be 
subsequently delivered and will promptly forward to the Owner for 
payment the supplier's invoice, together with the Bidder's receipt 
in writing for such materials. The materials referred to are on hand 
at, or will be delivered to, the locations specified in the List and 
the Bidder will use such materials in constructing the Project.
    The value of the completed Construction Units certified by the 
Bidder each month pursuant to Article III, Section 1.a of the 
Proposal shall be reduced by an amount equal to the value of the 
materials installed by the Bidder during the preceding month which 
have been furnished by the Owner or the delivery of which has been 
accepted by the Bidder on behalf of the Owner. Only ninety percent 
(90%) of the remainder shall be paid prior to the Completion of the 
Project. The value of such materials shall be computed on the basis 
of the unit prices stated in the Lists. Materials, if any, not 
required for the Project, which have been furnished to the Bidder by 
the Owner or delivery of which has been accepted by the Bidder on 
behalf of the Owner, shall be returned to the Owner by the Bidder 
upon completion of construction of the Project. The value of all 
materials not installed in the Project nor returned to the Owner 
shall be deducted from the final payment to the Bidder.
    The Owner shall not be obligated to furnish materials in excess 
of the quantities, size, kind and type set forth in the attached 
Lists. If the Owner furnishes, and the Bidder accepts, materials in 
excess thereof, the values of such excess materials shall be their 
actual cost as stated by the Owner.
    Information on the shipping schedules of materials on the ``List 
of Materials Ordered by Owner But Not Delivered'' will be furnished 
to the Bidder as necessary during progress of the work.
    Upon delivery the Bidder shall promptly receive, unload, 
transport and handle all materials and equipment on the ``List of 
Materials Ordered by Owner But Not Delivered'' at its expense and 
shall be responsible for demurrage, if any.
    Section 4. Purchase of Materials Not Furnished By Owner. The 
Bidder will purchase all materials and equipment (other than Owner-
furnished materials) outright and not subject to any conditional 
sales agreements, bailment, lease or other agreement reserving unto 
the seller any right, title or interest therein.
    Section 5. Proposal on Unit Basis. The Bidder understands and 
agrees that the various Construction Units on which bids are made 
are defined by symbols and descriptions in this Proposal, that all 
said bids are on a unit basis, and that the Owner may specify any 
number or combination of Construction Units that the Owner may deem 
necessary for the construction of the Project. Separate Construction 
Units are designated for each different arrangement which may be 
used in the construction of the Project. This Proposal is based on a 
consideration of each unit in place and includes only the materials 
listed on the corresponding Construction Drawings or description of 
unit where no drawing exists.
    Section 6. Description of Contract. The notice and Instructions 
to Bidders and Plans attached hereto and made a part hereof, and the 
Specifications and Construction Drawings set forth in:

    REA Bulletin 50-3, Specifications and Drawings for 12.5/7.2 kV 
Line Construction;
    REA Form 803, Specifications and Drawings for 14.4/24.9 kV Line 
Construction;
    REA Form 806, Specifications and Drawings for Underground 
Electric Distribution;
    REA Bulletin 50-2, REA Specifications T-805A, Electric 
Transmission Specifications and Drawings, 34.5 kV through 69 kV;
    REA Bulletin 50-1, REA Specification T-805B, Electric 
Transmission Specifications and Drawings for 115 kV through 230 kV;

as applicable, which by this reference are incorporated herein, 
together with the Proposal and Acceptance constitute the Contract. 
The Plans, consisting of maps and special drawings, and approved 
modifications in standard specifications are attached hereto and 
identified as follows: ________.

    Section 7. Familiarity with Conditions. The Bidder has made a 
careful examination of the site of the Project to be constructed and 
of the Plans, Specifications, Construction Drawings, and form of 
Contractor's Bond attached hereto, and has become informed as to the 
location and nature of the proposed construction, the transportation 
facilities, the kind and character of soil and terrain to be 
encountered, and the kind of facilities required before and during 
the construction of the Project, and has become acquainted with the 
labor conditions, state and local laws, and regulations which would 
affect work on the proposed construction.
    Section 8. License. The Bidder warrants that a Contractor's 
License is ____ is not ____ required, and if required it posses 
Contractor's License No. ________ for the State of ________ in which 
the Project is located and said license expires on ________, 19____.
    Section 9. Warranty of Good Faith. The Bidder warrants that this 
Proposal is made in good faith and without collusion or connection 
with any person or persons bidding for the same work.
    Section 10. Warranty of Financial Resources. The Bidder warrants 
that it possesses adequate financial resources and agrees that in 
the event this Proposal is accepted and a Contractor's Bond is 
required, it will furnish a Contractor's Bond in the form attached 
hereto, in a penal sum not less than the maximum Contract price, 
with a surety or sureties listed by the United States Department of 
Treasury as Acceptance Sureties.
    In the event that the surety or sureties on the performance bond 
delivered to the Owner contemporaneously with the execution of the 
Contract or on any bond or bonds delivered in substitution thereof 
or in addition thereto shall at any time become unsatisfactory to 
the Owner or the Administrator, the Bidder agrees to deliver to the 
Owner another or an additional bond.
    Section 11. Taxes. The unit prices for Construction Units in 
this Proposal include provisions for the payment of all monies which 
will be payable by the Bidder or the Owner in connection with the 
construction of the Project on account of taxes imposed by any 
taxing authority upon the sale, purchase or use of materials, 
supplies and equipment, or services or labor of installation 
thereof, to be incorporated in the Project as part of such 
Construction Units. The Bidder agrees to pay all such taxes, except 
taxes upon the sale, purchase or use of owner-furnished materials 
and it is understood that, as to owner-furnished materials, the 
values stated in the attached ``List of Owner's Materials on Hand'' 
and ``List of Materials Ordered by Owner But Not Delivered'' include 
taxes upon the sale, purchase or use of owner-furnished materials, 
if applicable. The Bidder will furnish to the appropriate taxing 
authorities all required information and reports pertaining to the 
Project, except as to the Owner-furnished materials.
    Section 12. Changes in Quantities. The Bidder understands and 
agrees that the quantities called for in this Proposal are 
approximate, and that the total number of units upon which payment 
shall be made shall be as set forth in the inventory. If the Owner 
changes the quantity of any unit or units specified in this Proposal 
by more than fifteen percent (15%) and the materials cost to the 
Bidder is increased thereby to an extent which would not be 
adequately compensated by application of the unit prices in this 
Proposal to the revised quantity of such unit or units, such change, 
to the extent of the quantities of such units in excess of such 
fifteen percent (15%) shall be regarded as a change in the 
construction within the meaning of Article II, Section 1(d) of this 
proposal.

                                       List of Owner's Materials on Hand                                        
----------------------------------------------------------------------------------------------------------------
                                                                       Catalog                 Unit     Extended
             Item\1\                    Description of material          No.     Quantity     price      price  
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                         Above Materials are Located at:                                        
----------------------------------------------------------------------------------------------------------------
\1\Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3, the    
  value of these materials will be deducted from payments to the Bidder for completed Construction Units.       


                                                  List of Materials Ordered by Owner but Not Delivered                                                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Scheduled                                                                                  
           Item\1\             Supplier name and address      delivery     Description of material    Catalog No.   Quantity    Unit price     Extended 
                                                               date                                                                             price   
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                                                           Above Material to be Delivered to:                                                           
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\1\Item corresponds with item in list of materials in construction drawings. Under Article I, Section 3, the value of these materials will be deducted  
  from payments to the Bidder for completed Construction Units.                                                                                         

Article II--Construction

    Section 1. Time and Manner of Construction
    a. The Bidder agrees to commence construction of the Project on 
a date (hereinafter called the ``Commencement Date'') which shall be 
determined by the Engineer after notice in writing from the Bidder 
that the Bidder has sufficient materials to warrant commencement and 
continuation of construction, but in no event will the Commencement 
Date be later than ______ calendar days after date of approval of 
the Contract by the Administrator. The Bidder further agrees to 
prosecute diligently and to complete construction in strict 
accordance with the Plans, Specifications and Construction Drawings 
within ______ (______) calendar days (excluding Sundays) after 
Commencement Date: Provided, however, that the Bidder will not be 
required to dig holes, set poles, install anchors, install 
underground conduit, perform any plowing for the installation of 
underground cable, or dig trenches if there are more than six (6) 
inches of frost on the ground nor to perform any construction on 
such days when in the judgment of the Engineer snow, rain, or wind, 
or the results of snow, rain, or frost make it impracticable to 
perform any operation of construction; provided further that the 
Bidder will not be required to perform any plowing for the 
installation of underground cable on public roads or highways if 
there are more than two (2) inches of frost in the ground. To the 
extent of the time lost due to the conditions described herein and 
approved in writing by the Engineer, the time of completion set out 
above will be extended if the Bidder makes a written request 
therefore to the Owner as provided in subsection b of this Section 
1.
    b. The time for Completion of Construction shall be extended for 
the period of any reasonable delay which is due exclusively to 
causes beyond the control and without the fault of the Bidder, 
including Acts of God, fires, floods, inability to obtain materials 
and acts or omissions of the Owner with respect to matters for which 
the Owner is solely responsible: Provided, however that no such 
extension of time for completion shall be granted the Bidder unless 
within ten (10) days after the happening of any event relied upon by 
the Bidder for such an extension of time the Bidder shall have made 
a request therefore in writing to the Owner, and provided further 
that no delay in such time of completion or in the progress of the 
work which results from any of the above causes except acts or 
omissions of the Owner, shall result in any liability on the part of 
the Owner.
    c. The sequence of construction shall be as set forth below, the 
number or names being the designations of extensions or areas 
(hereinafter called the ``Sections'') corresponding to the numbers 
or names shown on the maps attached hereto, or if no Sections are 
set forth below, the sequence of construction shall be as determined 
by the Bidder, subject to the approval of the Engineer. ________
    d. The Owner, acting through the Engineer may from time to time 
during the progress of the construction of the Project make such 
changes, additions or subtractions from the Plans, Specifications, 
Construction Drawings, List of Materials and sequence of 
construction provided for in the previous paragraph which are part 
of the Contractor's Proposal as conditions may warrant: Provided, 
however, that if any change in the construction to be done shall 
require an extension of time, a reasonable extension will be granted 
if the Bidder shall make a written request therefore to the Owner 
within (10) days after any such change is made. And provided 
further, that if the cost to the Bidder of construction of the 
project shall be materially increased by any such change or 
addition, the Owner shall pay the Bidder for the reasonable cost 
thereof in accordance with a Construction Contract Amendment signed 
by the Owner and the Bidder, but no claim for additional 
compensation for any such change or addition will be considered 
unless the Bidder shall have made a written request therefore to the 
Owner prior to the commencement of work in connection with such 
change or addition.
    e. The Bidder will not perform any work hereunder on Sundays 
unless there is urgent need for such Sunday work and the Owner 
consents thereto in writing. The time for completion specified in 
subsection a of this Section 1 shall not be affected in any way by 
inclusion of this subsection nor by the Owner's consent or lack of 
consent to Sunday work hereunder.
    Section 2. Environmental Protection. The Bidder shall perform 
work in such a manner as to maximize preservation of beauty, 
consideration of natural resources and minimize marring and scarring 
of the landscape and silting of streams. The Bidder shall not 
deposit trash in streams or waterways, and shall not deposit 
herbicides or other chemicals or their containers in or near 
streams, waterways or pastures. The Bidder shall follow the criteria 
relating to environmental protection as specified herein by the 
Engineer.
    Section 3. Tools, Equipment, and Qualified Personnel. The Bidder 
agrees that in the event this Proposal is accepted it will make 
available for use in connection with the proposed construction all 
necessary tools and equipment and qualified superintendents and 
foremen.
    Section 4. Changes in Construction. The Bidder agrees to make 
such changes in construction previously erected in the Project by 
the Bidder as required by the Owner for prices arrived at as 
follows:
    a. For substations and other units where only a portion of the 
complete unit is affected by the change, the compensation for such 
change shall be as agreed upon in writing by the Bidder and the 
Owner prior to the commencement of work in connection with such 
change.
    b. For all other units, the compensation for such change shall 
be the reasonable cost thereof as agreed upon by the Bidder and the 
Owner, but in no event shall it exceed two (2) times the labor price 
quoted in the Proposal for the installation of the unit to be 
changed. Such compensation shall be in lieu of any other payment for 
the installation and removal of the original unit. (If a new or 
replacing unit is installed, payment for such new or replacing unit 
shall be made as shown in the final inventory.)
    No payment shall be made to the Bidder for materials or labor 
involved in correcting errors or omissions on the part of the Bidder 
which result in construction not in accordance with the Plans and 
Specifications.
    Section 5. Construction Not in Proposal. The Bidder also agrees 
that when it is necessary to construct units not shown in the 
Proposal it will construct such units for a price arrived at as 
follows:
    a. The cost of materials shall be determined by the invoices.
    b. The cost of labor shall be the reasonable cost thereof, but 
in no event shall it exceed an amount determined by calculating the 
ratio of the total labor costs to the total material costs in the 
section of the Proposal involved, and multiplying the cost of 
materials for the unit in question by this ratio: Provided, however, 
that in respect of sections H, M, and N, the ratio shall be 
calculated for only those units of the section which are similar to 
the new unit for which a price is to be determined.
    Section 6. Supervision and Inspection.
    a. The Bidder shall cause the construction work on the Project 
to receive constant supervision by a competent superintendent 
(hereinafter called the ``Superintendent'') who shall be present at 
all times during working hours where construction is being carried 
on. The Bidder shall also employ, in connection with the 
construction of the Project, capable, experienced and reliable 
foremen and such skilled workmen as may be required for the various 
classes of work to be performed. Directions and instructions given 
to the Superintendent shall be binding upon the Bidder.
    b. The Owner reserves the right to require the removal from the 
Project of any employee of the Bidder if in the judgment of the 
Owner such removal shall be necessary in order to protect the 
interest of the Owner. The Owner or the Supervisor, if any, shall 
have the right to require the Bidder to increase the number of its 
employees and to increase or change the amount or kind of tools and 
equipment if at any time the progress of the work shall be 
unsatisfactory to the Owner or Supervisor; but the failure of the 
Owner or Supervisor to give any such directions shall not relieve 
the Bidder of its obligations to complete the work within the time 
and in the manner specified in this Proposal.
    c. The construction of the Project and all materials and 
equipment used therein, shall be subject to the inspection, tests, 
and acceptance by the Owner and the Administrator and the Bidder 
shall furnish all information required by the Owner or by the 
Administrator concerning the nature or source of any materials 
incorporated or to be incorporated in the Project. The Owner and the 
Administrator shall have the right to inspect all payrolls, invoices 
of materials, and other data and records of the Bidder and of any 
subcontractor, relevant to the construction of the Project. The 
Bidder shall provide all reasonable facilities necessary for such 
inspection and tests and shall maintain an office at the site of the 
Project, with telephone service where obtainable and at least one 
office employee to whom directions and instructions of the Owner may 
be delivered. Delivery of such directions or instructions in writing 
to the employee of the Bidder at such office shall constitute 
delivery to the Bidder. The Bidder shall have an authorized agent 
accompany the Engineer when final inspection is made and, if 
requested by the Owner, when any other inspection is made.
    d. In the event that the Owner, or the Administrator, shall 
determine that the construction contains or may contain numerous 
defects, it shall be the duty of the Bidder and the Bidder's Surety 
or Sureties, if any, to have an inspection made by an engineer 
approved by the Owner for the purpose of determining the exact 
nature, extent and location of such defects.
    e. The Engineer may recommend to the Owner that the Bidder 
suspend the work wholly or in part for such period or periods as the 
Engineer may deem necessary due to unsuitable weather or such other 
conditions as are considered unfavorable for satisfactory 
prosecution of the work or because of the failure of the Bidder to 
comply with any of the provisions of the Contract: Provided, 
however, that the Bidder shall not suspend work pursuant to this 
provision without written authority from the Owner so to do. The 
time of completion hereinabove set forth shall be increased by the 
number of days of any such suspension, except when such suspension 
is due to the failure of the Bidder to comply with any of the 
provisions of this Contract. In the event that work is suspended by 
the Bidder with the consent of the Owner, the Bidder before resuming 
work shall give the Owner at least twenty-four (24) hours notice 
thereof in writing.
    Section 7. Defective Materials and Workmanship.
    a. The acceptance of any materials, equipment (except Owner-
furnished materials) or any workmanship by the Owner or the Engineer 
shall not preclude the subsequent rejection thereof if such 
materials, equipment, or workmanship shall be found to be defective 
after delivery or installation, and any such materials, equipment or 
workmanship found defective before final acceptance of the 
construction shall be replaced or remedied, as the case may be, by 
and at the expense of the Bidder. Any such condemned material or 
equipment shall be immediately removed from the site of the Project 
by the Bidder at the Bidder's expense. The Bidder shall not be 
entitled to any payment hereunder so long as any defective 
materials, equipment or workmanship in respect to the Project, of 
which the Bidder shall have had notice, shall not have been replaced 
or remedied, as the case may be.
    b. Notwithstanding any certificate which may have been given by 
the Owner or the Engineer, if any materials, equipment (except 
Owner-furnished materials) or any workmanship which does not comply 
with the requirements of this Contract shall be discovered within 
one (1) year after Completion of Construction of the Project, the 
Bidder shall replace such defective materials or equipment or remedy 
any such defective workmanship within thirty (30) days after notice 
in writing of the existence thereof shall have been given by the 
Owner. If the Bidder shall be called upon to replace any defective 
materials or equipment or to remedy defective workmanship as herein 
provided, the Owner, if so requested by the Bidder shall deenergize 
that section of the Project involved in such work. In the event of 
failure by the Bidder so to do, the Owner may replace such defective 
materials or equipment or remedy such defective workmanship, as the 
case may be, and in such event the Bidder shall pay to the Owner the 
cost and expense thereof.

ARTICLE III--PAYMENTS AND RELEASE OF LIENS

    Section 1. Payments to Bidder
    a. Within the first fifteen (15) days of each calendar month, 
the Owner shall make partial payment to the Bidder for construction 
accomplished during the preceding calendar month on the basis of 
completed Construction Units furnished and certified to by the 
Bidder, recommended by the Engineer and approved by the Owner solely 
for the purposes of payment: Provided, however, that such approval 
shall not be deemed approval of the workmanship or materials. Only 
ninety percent (90%) of each such estimate approved during the 
construction of the Project shall be paid by the Owner to the Bidder 
prior to Completion of the Project: Provided, however, that at any 
time after work, which, in the sole determination of the Engineer, 
amounts to fifty percent (50%) of the maximum Contract price has 
been completed, the Owner may elect, in lieu of paying ninety 
percent (90%) of each such subsequent estimate, to pay each such 
subsequent estimate in full. Upon completion by the Bidder of the 
construction of the Project, the Engineer will prepare an inventory 
of the Project showing the total number and character of 
Construction Units and, after checking such inventory with the 
Bidder, will certify it to the Owner. Upon the approval by the Owner 
and the Administrator of a Certificate of Completion--Contract 
Construction, REA Form 187, showing the total cost of the 
construction performed, the Owner shall make payment to the Bidder 
of all amounts to which the Bidder shall be entitled thereunder 
which shall not have been paid: Provided, however, that such final 
payment shall be made not later than ninety (90) days after the date 
of Completion of Construction of the Project, as specified in the 
Certificate of Completion, unless withheld because of the fault of 
the Bidder.
    b. The Bidder shall be paid on the basis of the number of 
Construction Units actually installed at the direction of the Owner 
shown by the inventory based on the staking sheets or structure 
lists; Provided, however, that the total cost shall not exceed the 
maximum Contract price for the construction of the Project as set 
forth in the Acceptance plus the costs of any additional change 
orders, unless such excess shall have been approved in writing by 
the Owner.
    c. Notwithstanding the provisions of Section 1.a above, the 
Bidder may, by giving written notice thereof to the Owner, elect to 
receive payment in full for any Section of the Project upon:
    (1) completion of such Section as certified by the Engineer and 
approved by the Owner;
    (2) submission to the Owner of the releases of lien and the 
certificate referred to in Section 2 hereof;
    (3) approval by the Owner of the inventory in respect of such 
Section; and
    (4) submission to the Owner and the Administrator of the consent 
in writing by the Surety or Sureties, if any, on the Contractor's 
Bond to payment in full for such Section prior to Completion of the 
Project.
    If no Sections are designated in Article II, section 1c, the 
term Section shall mean for purposes of this subsection c and 
Article IV, section 3b only, a part of the Project as designated by 
the Owner which represents at least twenty-five percent (25%) of the 
maximum Contract price as stated in Article III, Section 1, and 
which is capable of being energized and operated by the Owner.
    d. Interest at the rate of ____ percent\1\ (____%) per annum 
shall be paid by the Owner to the Bidder on all unpaid balances due 
on monthly estimates, commencing fifteen (15) days after the due 
date; provided the delay in payment beyond the due date is not 
caused by any condition within the control of the Bidder. The due 
date for purposes of such monthly payment or interest on all unpaid 
balances shall be the fifteenth (15) day of each calendar month 
provided (1) the Bidder on or before the fifth (5) day of such month 
shall have submitted its certification of Construction Units 
completed during the preceding month and (2) the Owner on or before 
the fifteenth (15) day of such month shall have approved such 
certification. If, for reasons not due to the Bidder's fault, such 
approval shall not have been given on or before the fifteenth (15) 
day of such month, the due date for purposes of this subsection d 
shall be the fifteenth (15) day of such month notwithstanding the 
absence of the approval of the certification.
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    \1\The Owner shall insert a rate equal to the lowest ``Prime 
Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued.
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    e. Interest at the rate of ____ percent\2\ (____%) per annum 
shall be paid by the Owner to the Bidder on the final payment for 
the Project or any completed Section thereof, commencing fifteen 
(15) days after the due date. The due date for purposes of such 
final payment or interest on all unpaid balances shall be the date 
of approval by the Owner of all of the documents requiring such 
approval, as a condition precedent to the making of final payment, 
or ninety (90) days after the date of Completion of Construction of 
the Project, as specified in the Certificate of Completion, 
whichever date is earlier.
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    \2\See Footnote 1.
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    f. No payment shall be due while the Bidder is in default in 
respect of any of the provisions of this Contract and the Owner may 
withhold from the Bidder the amount of any claim by a third party 
against either the Bidder or the Owner based upon an alleged failure 
of the Bidder to perform the work hereunder in accordance with the 
provisions of this Contract.
    Section 2. Release of Liens and Certificate of Contractor. (See 
REA Form 224, Waiver and Release of Lien and REA Form 231, 
Certificate of Contractor). Upon the completion by the Bidder of the 
construction of the Project (or any Section thereof if the Bidder 
shall elect to receive payment in full for any Section when 
completed as provided above) but prior to final payment to the 
Bidder, the Bidder shall deliver to the Owner, in duplicate, 
releases of all liens and of rights to claim any lien, in the form 
attached hereto from all manufacturers, material suppliers, and 
subcontractors furnishing services or materials for the Project or 
such Section and a certificate in the form attached hereto to the 
effect that all labor used on or for the Project or such section has 
been paid and that all such releases have been submitted to the 
Owner.
    Section 3. Payments to Material Suppliers and Subcontractors. 
The Bidder shall pay each material supplier, if any, within five (5) 
days after receipt of any payment from the Owner, the amount thereof 
allowed the Bidder for and on account of materials furnished or 
construction performed by each material supplier or each 
subcontractor.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE BIDDER

    Section 1. Protection to Persons and Property. The Bidder shall 
at all times take all reasonable precautions for the safety of 
employees on the work and of the public, and shall comply with all 
applicable provisions of Federal, State, and Municipal safety laws 
and building and construction codes, as well as the safety rules and 
regulations of the Owner. All machinery and equipment and other 
physical hazards shall be guarded in accordance with the ``Manual of 
Accident Prevention in Construction'' of the Associated General 
Contractors of America unless such instructions are incompatible 
with Federal, State, or Municipal laws or regulations.
    The following provisions shall not limit the generality of the 
above requirements:
    a. The Bidder shall at no time and under no circumstances cause 
or permit any employee of the Bidder to perform any work upon 
energized lines, or upon poles carrying energized lines, unless 
otherwise specified in the Notice and Instructions to Bidders.
    b. The Bidder shall so conduct the construction of the Project 
as to cause the least possible obstruction of public highways.
    c. The Bidder shall provide and maintain all such guard lights 
and other protection for the public as may be required by applicable 
statutes, ordinances and regulations or by local conditions.
    d. The Bidder shall do all things necessary or expedient to 
properly protect any and all parallel, converging and intersecting 
lines, joint line poles, highways and any and all property of others 
from damage, and in the event that any such parallel, converging and 
intersecting lines, joint line poles, highways or other property are 
damaged in the course of the construction of the Project the Bidder 
shall at its own expense restore any or all of such damaged property 
immediately to as good a state as before such damage occurred.
    e. Where the right-of-way of the Project traverses cultivated 
lands, the Bidder shall limit the movement of its crews and 
equipment so as to cause as little damage as possible to crops, 
orchards or property and shall endeavor to avoid marring the lands. 
All fences which are necessarily opened or moved during the 
construction of the Project shall be replaced in as good condition 
as they were found and precautions shall be taken to prevent the 
escape of livestock. Except as otherwise provided in the 
descriptions of underground plowing and trenching assembly units, 
the Bidder shall not be responsible for loss of or damage to crops, 
orchards or property (other than livestock) on the right-of-way 
necessarily incident to the construction of the Project and not 
caused by negligence or inefficient operation of the Bidder. The 
Bidder shall be responsible for all other loss of or damage to 
crops, orchards, or property, whether on or off the right-of-way, 
and for all loss of or damage to livestock caused by the 
construction of the Project. The right-of-way for purposes of this 
said section shall consist of an area extending ______ feet on both 
sides of the center line of the poles along the route of the Project 
lines, plus such area reasonably required by the Bidder for access 
to the route of the Project lines from Public roads to carry on 
construction activities.
    f. The Project, from the commencement of work to completion, or 
to such earlier date or dates when the Owner may take possession and 
control in whole or in part as hereinafter provided shall be under 
the charge and control of the Bidder and during such period of 
control by the Bidder all risks in connection with the construction 
of the Project and the materials to be used therein shall be borne 
by the Bidder. The Bidder shall make good and fully repair all 
injuries and damages to the Project or any portion thereof under the 
control of the Bidder by reason of any act of God or other casualty 
or cause whether or not the same shall have occurred by reason of 
the Bidder's negligence.
    (i) To the maximum extent permitted by law, Bidder shall defend, 
indemnify, and hold harmless Owner and Owner's directors, officers, 
and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Bidder's employees) and loss, damage to or destruction of 
Owner's property or the property of any other person or entity 
(including but not limited to Bidder's property) in any manner 
arising out of or connected with the Contract, or the materials or 
equipment supplied or services performed by Bidder, its 
subcontractors and suppliers of any tier. But nothing herein shall 
be construed as making Bidder liable for any injury, death, loss, 
damage, or destruction caused by the sole negligence of Owner.
    (ii) To the maximum extent permitted by law, Bidder shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Bidder, its subcontractors and suppliers of 
any tier, and from all losses, demands, and causes of action arising 
out of any such lien or claim. Bidder shall promptly discharge or 
remove any such lien or claim by bonding, payment, or otherwise and 
shall notify Owner promptly when it has done so. If Bidder does not 
cause such lien or claim to be discharged or released by payment, 
bonding, or otherwise, Owner shall have the right (but shall not be 
obligated) to pay all sums necessary to obtain any such discharge or 
release and to deduct all amounts so paid from the amount due 
Bidder.
    (iii) Bidder shall provide to Owner's satisfaction evidence of 
Bidder's ability to comply with the indemnification provisions of 
subparagraphs i and ii above, which evidence may include but may not 
be limited to a bond or liability insurance policy obtained for this 
purpose through a licensed surety or insurance company.
    g. Any and all excess earth, rock, debris, underbrush and other 
useless materials shall be removed by the Bidder from the site of 
the Project as rapidly as practicable as the work progresses.
    h. Upon violation by the Bidder of any of the provisions of this 
section, after written notice of such violation given to the Bidder 
by the Engineer or the Owner, the Bidder shall immediately correct 
such violation. Upon failure of the Bidder so to do the Owner may 
correct such violation at the Bidder's expense: Provided, however, 
that the Owner may, if it deems it necessary or advisable, correct 
such violation at the Bidder's expense without such prior notice to 
the Bidder.
    i. The Bidder shall submit to the Owner monthly reports in 
duplicate of all accidents, giving such data as may be prescribed by 
the Owner.
    j. The Bidder shall not proceed with the cutting of trees or 
clearing of right-of-way without written notification from the Owner 
that proper authorization has been received from the owner of the 
property, and the Bidder shall promptly notify the Owner whenever 
any landowner objects to the trimming or felling of any trees or the 
performance of any other work on its land in connection with the 
Project and shall obtain the consent in writing of the Owner before 
proceeding in any such case.
    k. The Bidder will furnish, prior to the commencement of 
underground distribution construction, proof, satisfactory to the 
Owner, of compliance with requirements of highway and road 
authorities having jurisdiction, including without limitation, the 
furnishing of a bond or other guaranty, and approval by such 
authorities of the equipment and methods of construction and repair 
to be used by the Bidder.
    Section 2. Insurance. The Bidder shall take out and maintain 
throughout the period of this Agreement the following types and 
minimum amounts of insurance:
    a. Workers' compensation and employers' liability insurance, as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to the workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    b. Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million each occurrence, and $1 million aggregate for 
accidents during the policy period. A single limit of $1 million of 
bodily injury and property damage is acceptable. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    c. Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million per person and $1 million each occurrence, and property 
damage limits of $1 million for each occurrence. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form. The Owner shall 
have the right at any time to require public liability insurance and 
property damage liability insurance greater than those required in 
subsection ``b'' and ``c'' of this Section. In any such event, the 
additional premium or premiums payable solely as the result of such 
additional insurance shall be added to the Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 3. Delivery of Possession and Control to Owner.
    a. Upon written request of the Owner the Bidder shall deliver to 
the Owner full possession and control of any portion of the Project 
provided the Bidder shall have been paid at least ninety percent 
(90%) of the cost of construction of such portion. Upon such 
delivery of the possession and control of any portion of the Project 
to the Owner, the risk and obligations of the Bidder as set forth in 
Article IV, Section 1f hereof with respect to such portion of the 
Project so delivered to the Owner shall be terminated; Provided, 
however, that nothing herein contained shall relieve the Bidder of 
any liability with respect to defective materials and workmanship as 
contained in Article II, Section 6 hereof.
    b. Where the construction of a Section as hereinbefore defined 
in Article II, Section 1c and Article III, Section 1c shall have 
been completed by the Bidder, the Owner agrees, after receipt of a 
written request from the Bidder, to accept delivery of possession 
and control of such Section upon the issuance by the Engineer of a 
written statement that the Section has been inspected and found 
acceptable by the Engineer. Upon such delivery of the possession and 
control of any such Section to the Owner, the risk and obligations 
of the Bidder as set forth in Article IV, Section 1f hereof with 
respect to such Section so delivered to the Owner shall be 
terminated: Provided, however, that nothing herein contained shall 
relieve the Bidder of any liability with respect to defective 
materials or workmanship as contained in Article II, Section 6 
hereof.
    Section 4. Energizing the Project.
    a. Prior to Completion of the Project the Owner, upon written 
notice to the Bidder, may test the construction thereof by 
temporarily energizing any portion or portions thereof. During the 
period of such test the portion or portions of the Project so 
energized shall be considered as within the possession and control 
of the Owner and governed by the provisions of Section 3 of this 
Article. Upon written notice to the Bidder by the Owner of the 
completion of such test and upon deenergizing the lines involved 
therein said portion or portions of the Project shall be considered 
as returned to the possession and control of the Bidder unless the 
Owner shall elect to continue possession and control in the manner 
provided in Section 3 of this Article.
    b. The Owner shall have the right to energize permanently any 
portion or portions of the Project delivered to its possession and 
control pursuant to the provisions of Section 3 of this Article.
    Section 5. Assignment of Guarantees. All guarantees of materials 
and workmanship running in favor of the Bidder shall be transferred 
and assigned to the Owner prior to the time the Bidder receives 
final payment.

ARTICLE V--REMEDIES

    Section 1. Completion on Bidder's Default. If default shall be 
made by the Bidder or by any subcontractor in the performance of any 
of the terms of this Proposal, the Owner, without in any manner 
limiting its legal and equitable remedies in the circumstances, may 
serve upon the Bidder and the Surety or Sureties, if any, upon the 
Contractor's Bond or Bonds a written notice requiring the Bidder to 
cause such default to be corrected forthwith. Unless within twenty 
(20) days after the service of such notice upon the Bidder such 
default shall be corrected or arrangements for the correction 
thereof satisfactory to both the Owner and the Administrator shall 
be made by the Bidder or its Surety or Sureties, if any, the Owner 
may take over the construction of the Project and prosecute the same 
to completion by Contract or otherwise for the account and at the 
expense of the Bidder, and the Bidder and its Surety or Sureties, if 
any, shall be liable to the Owner for any cost or expense in excess 
of the Contract price occasioned thereby. In such event the Owner 
may take possession of and utilize, in completing the construction 
of the Project, any materials, tools, supplies, equipment, 
appliances, and plant belonging to the Bidder or any of its 
subcontractors, which may be situated at the site of the Project. 
The Owner in such contingency may exercise any rights, claims or 
demands which the Bidder may have against third persons in 
connection with this Contract and for such purpose the Bidder does 
hereby assign, transfer and set over unto the Owner all such rights, 
claims and demands.
    Section 2. Liquidated Damages. The time of the Completion of 
Construction of the Project is of the essence of the Contract. 
Should the Bidder neglect, refuse or fail to complete the 
construction within the time herein agreed upon, after giving effect 
to extensions of time if any, herein provided, then, in that event 
and in view of the difficulty of estimating with exactness damages 
caused by such delay, the Owner shall have the right to deduct from 
and retain out of such moneys which may be then due, or which may 
become due and payable to the Bidder the sum of ________ dollars 
(________) per day for each and every day that such construction is 
delayed in its completion beyond the specified time, as liquidated 
damages and not as a penalty; if the amount due and to become due 
from the Owner to the Bidder is insufficient to pay in full any such 
liquidated damages, the Bidder shall pay to the Owner the amount 
necessary to effect such payment in full: Provided, however, that 
the Owner shall promptly notify the Bidder in writing of the manner 
in which the amount retained, deducted or claimed as liquidated 
damages was computed.
    Section 3. Cumulative Remedies. Every right or remedy herein 
conferred upon or reserved to the Owner or the Government or the 
Administrator shall be cumulative, shall be in addition to every 
right and remedy now or hereafter existing at law or in equity or by 
statute and the pursuit of any right or remedy shall not be 
construed as an election: Provided, however, that the provisions of 
Section 2 of this Article shall be the exclusive measure of damages 
for failure by the Bidder to complete the construction of the 
Project within the time herein agreed upon.

ARTICLE VI--MISCELLANEOUS

    Section 1. Definitions.
    a. The term Administrator shall mean the Administrator of the 
Rural Electrification Administration of the United States of America 
and his duly authorized representative or any other person in whom 
or authority in which may be vested the duties and functions which 
the Administrator is now authorized by law to perform.
    b. The term Engineer shall mean the Engineer employed by the 
Owner, to provide engineering services for the Project and said 
Engineer's duly authorized assistants and representatives.
    c. The term Supervisor shall mean the person, if any, appointed 
by the Administrator as the representative of the Government under 
the provisions of the Loan Contract providing for such appointment 
in special cases. The term is limited to such special representative 
of the Government, if any, who is responsible exclusively to the 
Administrator and does not refer to the Manager or any other person 
employed by the Owner and responsible to it.
    d. The term Project shall mean the rural electric system, or 
portion thereof, described in the Plans and Specifications, 
Construction Drawings.
    e. The term Completion of Construction shall mean full 
performance by the Bidder's obligations under the Contract and all 
amendments and revisions thereof except the Bidder's obligations in 
respect of (1) Releases of Liens and Certificate of Contractor under 
Article III, section 2 hereof, (2) the inventory referred to in 
Article III, section 1 hereof, and (3) other final documents. The 
term Completion of the Project shall mean full performance by the 
Bidder of the Bidder's obligations under the Contract and all 
amendments and revisions thereof. The Certificate of Completion, 
signed by the Engineer and approved in writing by the Owner, shall 
be the sole and conclusive evidence as to the date of Completion of 
Construction and as to the fact of Completion of the Project.
    Section 2. Materials and Supplies. In the performance of this 
contract there shall be furnished only such unmanufactured articles, 
materials, and supplies as have been mined or produced in the United 
States, Mexico, or Canada, and only such manufactured articles, 
materials, and supplies as have been manufactured in the United 
States substantially all from articles, materials, or supplies 
mined, produced or manufactured, as the case may be, in the United 
States, Mexico, or Canada; provided that other articles, materials, 
or supplies may be used in the event and to the extent that the 
Administrator shall expressly in writing authorize such use pursuant 
to the provisions of the Rural Electrification Act of 1938, being 
Title IV of Public Resolution No. 122, 75th Congress, approved June 
21, 1938. The Seller agrees to submit to the Purchaser such 
certificates with respect to compliance with the foregoing provision 
as the Administrator from time to time may require.
    Section 3. Patent Infringement. The Bidder shall hold harmless 
and indemnify the Owner from any and all claims, suits and 
proceedings for the infringement of any patent or patents covering 
any materials or equipment used in construction of the Project.
    Section 4. Permits for Explosives. All permits necessary for the 
handling or use of dynamite or other explosives in connection with 
the construction of the Project shall be obtained by and at the 
expense of the Bidder.
    Section 5. Compliance with Statutes and Regulations. The Bidder 
shall comply with all applicable statutes, ordinances, rules, and 
regulations pertaining to the work. The Bidder acknowledges that it 
is familiar with the Rural Electrification Act of 1936, as amended, 
the so-called ``Kick-Back'' Statute (48 Stat. 948), and regulations 
issued pursuant thereto, and 18 U.S.C. 287, 1001, as amended. The 
Bidder understands that the obligations of the parties hereunder are 
subject to the applicable regulations and orders of Governmental 
Agencies having jurisdiction in the premises.
    Section 6. Equal Opportunity Provisions.
    (a) Bidder's Representations.
    The Bidder represents that:
    It has ________, does not have ________, 100 or more employees, 
and if it has, that it has ________, has not ________ furnished the 
Equal Employment Opportunity-Employers Information Report EEO-1, 
Standard Form 100, required of employers with 100 or more employees 
pursuant to Executive Order 11246 and Title VII of the Civil Rights 
Act of 1964.
    The Bidder agrees that it will obtain, prior to the award of any 
subcontract for more than $10,000 hereunder to a subcontractor with 
100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100.
    The Bidder agrees that if it has 100 or more employees and has 
not submitted a report on Standard Form 100 for the current 
reporting year and that if this Contract will amount to more than 
$10,000, the Bidder will file such report, as required by law, and 
notify the owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    (b) Equal Opportunity Clause. During the performance of this 
Contract, the Bidder agrees as follows:
    (1) The Bidder will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex or 
national origin. The Bidder will take affirmative action to ensure 
that applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex or 
national origin. Such action shall include, but not be limited to, 
the following: Employment, upgrading, demotions or transfer; 
recruitment or recruitment advertising; layoff or termination; rates 
of pay or other forms of compensation; and selection of training, 
including apprenticeship. The Bidder agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided setting forth the provisions of this Equal 
Opportunity Clause.
    (2) The Bidder will, in all solicitations or advertisements for 
employees placed by or on behalf of the Bidder, state that all 
qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex or national origin.
    (3) The Bidder will send to each labor union or representative 
of workers, with which it has a collective bargaining agreement or 
other contract or understanding, a notice to be provided advising 
the said labor union or workers' representative of the Bidder's 
commitments under this section, and shall post copies of the notice 
in conspicuous places available to employees and applicants for 
employment.
    (4) The Bidder will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and the rules, regulations and 
relevant orders of the Secretary of Labor.
    (5) The Bidder will furnish all information and reports required 
by Executive Order 11246 of September 24, 1965, and by rules, 
regulations, and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records, and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations, and orders.
    (6) In the event of the Bidder's noncompliance with the Equal 
Opportunity Clause of this Contract or with any of the said rules, 
regulations, or orders, this Contract may be canceled, terminated, 
or suspended in whole or in part, and the Bidder may be declared 
ineligible for further Government contracts or federally assisted 
construction contracts in accordance with procedures authorized in 
Executive Order 11246 of September 24, 1965, and such other 
sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24, 1965, or by rule, regulation, 
or order of the Secretary of Labor, or as provided by law.
    (7) The Bidder will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations, or order of the Secretary of Labor issued pursuant to 
section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Bidder will take such action with respect to any subcontract or 
purchase order as the administering agency may direct as a means of 
enforcing such provisions, including sanctions for noncompliance; 
Provided, however, that in the event Bidder becomes involved in, or 
is threatened with, litigation with a subcontractor or vendor as a 
result of such direction by the administering agency, the Bidder may 
request the United States to enter into such litigation to protect 
the interests of the United States.
    (c) Certificate of Nonsegregated Facilities. The Bidder 
certifies that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Bidder certifies further that it will not maintain or provide for 
its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Bidder agrees that a breach of this 
certification is a violation of the Equal Opportunity Clause in this 
Contract. As used in this certification, the term segregated 
facilities means any waiting rooms, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Bidder agrees that (except where it has obtained 
identical certifications from proposed subcontractors for specific 
time periods) it will obtain identical certifications from proposed 
subcontractors prior to the award of subcontracts exceeding $10,000 
which are not exempt from the provisions of the Equal Opportunity 
Clause, and that it will retain such certifications in its files.
    Section 7. Franchises and Rights-of-Way. The Bidder shall be 
under no obligation to obtain or assist in obtaining: Any 
franchises, authorizations, permits or approvals required to be 
obtained by the Owner from Federal, State, County, Municipal or 
other authorities; any rights-of-way over private lands; or any 
agreements between the Owner and third parties with respect to the 
joint use of poles, crossings, or other matter incident to the 
construction and operation of the Project.
    Section 8. Nonassignment of Contract. The Bidder shall perform 
directly and without subcontracting not less than twenty-five 
percent (25%) of the construction of the Project, to be calculated 
on the basis of the total Contract price. The Bidder shall not 
assign the Contract effected by an acceptance of this Proposal or 
any interest in any funds that may be due or become due hereunder or 
enter into any contract with any person, firm or corporation for the 
performance of the Bidder's obligations hereunder or any part 
thereof, without the approval in writing of the Owner and of the 
Surety or Sureties, if any, on any bond furnished by the Bidder for 
the faithful performance of the Bidder's obligations hereunder. If 
the Bidder, with the consent of the Owner and any Surety or Sureties 
on the Contractor's Bond or Bonds, shall enter into a subcontract 
with any subcontractor for the performance of any part of this 
Contract, the Bidder shall be as fully responsible to the Owner and 
the Government for the acts and omissions of such subcontractor and 
of persons employed by such subcontractor as the Bidder would be for 
its own acts and omissions and those of persons directly employed by 
it.
    Section 9. Extension to Successors and Assigns. Each and all of 
the covenants and agreements herein contained shall extend to and be 
binding upon the successors and assigns of the parties hereto.
    Section 10. Contractor. Upon acceptance of this Proposal, the 
successful Bidder shall be the Contractor and all references in the 
Proposal to the Bidder shall apply to the Contractor.

________ (Bidder)
By ________ (President)
________ (Address)
ATTEST: ________ (Secretary)
Date ________

    The Proposal must be signed with the full name of the Bidder. If 
the Bidder is a partnership, the Proposal must be signed in the 
partnership name by a partner. If the Bidder is a corporation, the 
Proposal must be signed in the corporate name by a duly authorized 
officer and the corporate seal affixed and attested by the Secretary 
of the Corporation.

Distribution Construction Units--New Construction

Section 1--Pole Units

    A pole unit consists of one pole in place. It does not include 
pole-top assembly unit or other parts attached to the pole. The 
first two digits indicate the length of the pole; the third digit 
shows the classification per ANSI (Example: 35-5 means a pole 35 
feet long, class 5.)
Species of Timber: ________
Kind of Preservative: (Check one)
    1. Creosote ____; 2. Pentachlorophenol ____; 3. Copper 
Naphthenate ____; 4. Waterborne preservative-CCA ____ ACZA ____

Method of Treatment: (Check one)

    1. Pressure ________; 2. Thermal Process ________

Pole Plan Under Which the Poles are to be Furnished: (Check one)

    1. Insured Warranted ____; 2. Independently Inspected ____; 3. 
Quality Assured ____; 4. Either Insured Warranted, Independently 
Inspected, or Quality Assured ____

(Engineer to complete above) 

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Total, Section 1--________

Section A--Single Phase Pole Top Assembly Units

    A pole top assembly unit consists of the hardware, crossarms, 
and their appurtenances, insulators, etc., except tie wire, required 
to support the primary conductors. It does not include the pole. 
Crossarm pins include washer, nut, and locknut. 

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Total, Section A--________

Section B--V Phase Pole Top Assembly Units

    A pole top assembly units consists of the hardware, crossarms, 
and their appurtenances, insulators, etc., except tie wire, required 
to support the primary conductors. It does not include the pole. 
Crossarm pins include washer, nut, and locknut. 

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Total, Section B--________

Section C--Three Phase Pole Top Assembly Units

    A pole top assembly unit consists of the hardware, crossarms, 
and their appurtenances, insulators, etc., except tie wire, required 
to support the primary conductors. It does not include the pole. 
Crossarm pins include washer, nut, and locknut. 

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Unit No.     Number of units                                             Labor and            and materials     
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Total, Section C--________

Section D--Conductor Assembly Units

    A conductor assembly unit consists of 1,000 feet of conductor or 
cable for primaries, secondaries or services, and includes tie 
wires, sleeves for splicing, connectors, and armor rods with clips 
or armor wire where necessary.
    Tree trimming necessary for installing services and secondaries 
on poles not carrying primary line is included with the conductor 
assembly unit and shall be performed in accordance with the 
directions of the Engineer. The service shall be connected to the 
secondary or transformer and 2 feet of conductor or cable shall be 
left for connecting to the consumer's service entrance. In computing 
the compensation to the Bidder for conductor assembly units only the 
horizontal distance between conductor supports or pole stakes shall 
be used. The conductor or cable sizes and types listed are the 
manufacturer's designation. 

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D                                                                                                               
                                                                                                                
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Total, Section D--________

Section E--Guy Assembly Units

    A guy assembly unit consists of the hardware and wire, and guy 
insulator where necessary. An overhead guy assembly consists of an 
overhead guy, a pole, and a down guy, each of which is listed 
separately. Guy markers are designated separately. 

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E                                                                                                               
                                                                                                                
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Total, Section E--________

Section F--Anchor Assembly Units

    An anchor assembly unit consists of the anchor with rod 
complete, ready for attaching the guy wire.

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F                                                                                                               
                                                                                                                
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Total, Section F--________

Section G--Transformer Assembly Units

    A transformer assembly units consists of the transformer, its 
protective equipment, and its hardware and leads with their 
connectors and supporting insulators and pins. This units does not 
include the pole top, secondary, service, or grounding assemblies. 

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Total, Section G--________

Section J--Secondary Assembly Units

    A secondary assembly unit consists of the hardware, insulators, 
etc., to support the secondary conductors or cable. It does not 
include the secondary conductor or cable, or any hardware, 
insulators, etc. required to support service conductors or cable. 

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J                                                                                                               
                                                                                                                
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Total, Section J--________

Section K--Service Assembly Units

    A service assembly unit consists of the hardware, insulators, 
etc., required to support the service conductors or cable. It does 
not include the service conductor or cable, or any hardware, 
insulators, etc., required to support secondary conductors or cable. 


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 Unit No.    Number of units                                             Labor and            and materials     
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K                                                                                                               
                                                                                                                
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Total, Section K--________

Section M--Miscellaneous Assembly Units

    A miscellaneous assembly unit consists of an additional unit 
needed in the Project for new line construction but not otherwise 
listed in the Proposal. This section includes grounding assemblies 
consisting of the conductor, ground rod, grounding plate, connectors 
and clamps as shown on the respective drawings for the various 
types. It also includes fuse cutouts, reclosers, sectionalizers, 
switches, capacitors, regulators, metering and other assembly units. 


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M                                                                                                               
                                                                                                                
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Total, Section M--________

Section R--Right-of-Way Clearing Units

    R1-10. The unit is 1,000 feet in length and 10 feet in width (to 
be measured on one side of the pole line) of actual clearing of 
right-of-way. This includes clearing of underbrush, tree removal, 
and such tree trimming as is required so that the right-of-way, 
except for tree stumps which shall not exceed ________ in height, 
shall be clear from the ground up on one side of the line of poles 
carrying primary conductors of the width specified. This unit does 
not include clearing or trimming associated with secondaries or 
services which is included with conductor units. The segmental 
length of actual clearing shall be measured in a straight line 
parallel to the transmission centerline using the maximum dimension 
of foliage cleared and projected to the ground line. All trees and 
underbrush across this width of the right-of-way shall be considered 
to be grouped together as a single length in measuring the total 
length of clearing. Spaces along the right-of-way in which no trees 
are to be removed or trimmed or underbrush cleared shall be omitted 
from the total measurement. All length thus arrived at, added 
together and divided by 1,000, shall give the number of 1,000-foot 
R1-10 units of clearing. This unit includes the removal or topping, 
at the option of the Bidder, of danger trees outside of the right-
of-way when so designated by the Engineer. (Danger trees are defined 
as dead or leaning trees which, in falling, will affect the 
operation of the line.) The Bidder shall not remove or trim shade, 
fruit, or ornamental trees unless so directed by the Engineer.
    R1-20. This unit is identical with R1-10 except that the width 
is 20 feet (to be measured 10 feet on each side of the pole line).
    R1-30. This unit is identical with R1-10 except that the width 
is 30 feet (to be measured 15 feet on each side of the pole line).
    R1-40. This unit is identical with R1-10 except that width is 40 
feet (to be measured 20 feet on each side of the pole line). RC1-10, 
RC1-20, RC1-30, RC1-40. These units are identical to the respective 
R1 units except that chemical treatment of stumps is required in 
addition to the clearing of underbrush, tree removal and tree 
trimming.
    Additional Requirements (When specifying R1 units denote type of 
disposal (A or B).)
    A. Trees, brush, branches and refuse shall, without delay, be 
disposed of by one of the following methods as the Engineer will 
direct (Engineer to strike out methods not to be used):

1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (describe) ________
    B. Trees that are felled shall be cut to commercial wood 
lengths, stacked neatly, and left on the right-of-way for the 
landowner. Commercial wood length means the length designated by the 
Engineer but in no case shall it be required to be less than 
________ (________) feet. Brush, branches, and refuse shall, without 
delay, be disposed of by such of the following methods as the 
Engineer will direct (Engineer to strike out methods not to be 
used):

1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (describe) ________

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R                                                                                                               
                                                                                                                
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Total, Section R--________

Section UD--Underground Cable Assembly Units

    An underground cable assembly unit consists of 1,000 feet of 
cable for underground primaries, secondaries or services. It does 
not include the conduit, plowing, trenching and backfilling, or the 
termination of the primary cable which are provided for in other 
assembly units. It includes the termination, connection and sealing 
of secondary and service cables and conductors as shown in the 
specifications and construction drawings, and all primary, secondary 
and service cable splices (buried cable may be spliced only when and 
where permitted by the Owner\3\\4\.) In computing the compensation 
to the Bidder for underground cable assembly units, only the 
distance between stakes, paralleling the cable shall be used. The 
number of units so computed will include all cable installed in 
place in all specified trenches, risers, conduits, crossings, 
manholes, transformers, terminal housings and meter boxes.\5\ The 
conductor or cables listed are the manufacturer's designation of 
types, size, voltage rating and material. The Bidder and the Owner 
shall jointly perform cable acceptance tests on installed cable in 
accordance with the specifications using test equipment furnished by 
the ________. (Engineer to insert Owner or Bidder).

    \3\________ Engineer check here if primary splices are 
permitted.
    \4\________ Engineer check here if secondary and service splices 
are permitted.
    \5\________ Engineer check here if 12 feet of service conductor 
is to be left as a coil 3 feet from the building with ends capped 
instead of connection to meter box.

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UD                                                                                                              
                                                                                                                
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Total, Section UD--________

Section UG--Underground Transformer Assembly Units

    An underground transformer assembly unit consists of the 
transformer, its housing, warning sign, switches, over-current 
protective devices, grounding loop, and hardware and leads with 
their connectors and supporting insulators installed in place. This 
unit includes the cable terminations but does not include lightning 
arresters, fault indicators, ground rods or trenching.
    For submersible transformers, it includes the cable 
terminations, the enclosure and cover, drainable material (when 
specified),6 and the excavation when required. For pad-mount 
transformers, it does not include the pad, site preparation, 
drainable material, backfilling or compaction which are included in 
the pad assembly units.
---------------------------------------------------------------------------

    \6\ ______ Engineer check here if drainable material is 
specified. 

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                                    Labor           Materials       Labor & materials           materials       
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UG                                                                                                              
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     Total, Section UG-- ________

SECTION UK--UNDERGROUND SECONDARY AND SERVICE ASSEMBLY UNITS

    An underground secondary and service assembly unit consists of 
secondary or service cable terminal housing mounted in place. It 
includes the power pedestal, stake (when required), mounting 
hardware, warning sign, directional marker, housing identification 
marking and the cable identification tags. It does not include the 
cable terminations, ground rod, or pad, when required. 

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UK                                                                                                              
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     Total, Section UK-- ________

SECTION UM--MISCELLANEOUS UNDERGROUND ASSEMBLY UNITS

    A miscellaneous underground assembly unit consists of an 
additional unit needed in the Project for new construction but not 
otherwise listed in the Proposal. This section includes the 
miscellaneous assembly units as shown on the respective underground 
construction drawings. Where miscellaneous units consist of or 
include a primary cable termination, the unit includes the 
preparation of the cable to accommodate the termination, the stress 
cone and the connection of the cable to the terminal equipment. Pad 
assembly units are in this section and include the site preparation, 
bedding, drainable material when specified, cable slot, backfilling, 
tamping and the pad in place.

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UM                                                                                                              
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     Total, Section UM-- ________

SECTION UR--UNDERGROUND EXCAVATION ASSEMBLY UNITS

    UR 1-S(d)  Plowing Assembly Unit, Soil--Consists of one (1) 
lineal foot of plowing in soil, measured parallel to the surface of 
the ground, to a specified depth (D), in inches, including the 
compacting, except as specifically provided for in other units. This 
unit includes all material and labor required in the repair and/or 
replacement of streets, roads, drives, fences, lawns, shrubbery, 
watermains, pipes, pipelines and contents, underground power and 
telephone facilities, buried sewerage and drainage facilities, and 
any other property damaged during the plowing of the cable, except 
as specifically provided for in other units. This unit does not 
include underground cable facilities installed in the slot. Note: 
Where in the judgment of the Owner greater than normal difficulty 
will be involved in plowing because of the presence of underground 
facilities of other utilities, this unit will be suffixed by the 
letter ``T''. This will be applicable only in those areas 
predesignated by the Owner on the detail maps herein. All plowing 
outside of the predesignated area on the map, regardless of the 
difficulty in placement actually experienced, will be inventoried as 
the regular UR 1-S(D) units. If field conditions show the existence 
of rock to prevent the placing of the cable in soil to the depth 
required in the specifications, the Owner may specify UR 2-R units. 
Where more than one cable is to be installed in the slot, the UR1-S 
unit designation should be modified by a suffix corresponding to the 
number of cables installed. Example: UR1-S(D) 3c for 3 cables plowed 
at one time.
    UR 2-S(D&W)  Trenching Assembly Unit, Soil--Consists of one (1) 
lineal foot of trenching in soil, measured parallel to the surface 
of the ground, to a specified depth (D) and width (W), in inches, 
including the excavation, and backfilling and compacting.
    This unit includes all material and labor required in the repair 
and/or replacement of streets, roads, drives, fences, lawns, 
shrubbery, watermains, pipes, pipelines and contents, under- ground 
power and telephone facilities, buried sewerage and drainage 
facilities, and any other property damaged by the trenching, except 
as specifically provided for in other units. This unit does not 
include underground cable facilities installed in the trench or 
cable bedding assembly units, when required.
    Note: Where in the judgment of the Owner greater than normal 
difficulty will be involved in trenching because of the presence of 
underground facilities of other utilities, this unit will be 
suffixed by the letter ``T''. This will be applicable only in those 
areas predesignated by the Owner on the detail maps herein. Where 
more than one cable is to be installed in the trench, the regular UR 
2-S unit designation should be modified by a suffix corresponding to 
the construction drawing for the type of cable placement desired.
    UR 2-R (D&W)  Trenching Assembly Unit, Rock--Consists of one (1) 
lineal foot of trenching in rock, measured parallel to the surface 
of the ground, to specified depth (D) and width(W), in inches, 
including the excavation, and backfilling and compacting to place 
cable to the depth specified in the Specifications. This unit will 
be specified by the Owner only when field conditions at the site 
show the existence of rock at a depth preventing the placing of the 
cable in soil to the depths required in the Specifications. This 
unit includes all material and labor required in the repair and/or 
replacement of streets, roads, drives, fences, lawns, shrubbery, 
watermains, pipes, pipelines and contents, underground power and 
telephone facilities, buried sewerage and drainage facilities, and 
any other property damaged by the trenching, except as specifically 
provided for in other units. This unit does not include underground 
cable facilities installed in the trench or cable bedding assembly 
units, when required.
    UR-3  Cable Bedding Assembly Unit--Consists of one (1) lineal 
foot of a 2-inch bed of clean sand or soil placed in the trench 
under the cable and a 4-inch layer of clean sand or soil backfill 
over the cable to the width of the trench. Note: The exact location 
and number of units shall be determined by the Owner after the 
trenches are open in those areas where rock or other conditions make 
special bedding necessary.
    UR-4a  Pavement Assembly Unit, Asphalt--Consists of the labor 
and material necessary to remove and restore one (1) lineal foot of 
asphalt pavement, measured along the route of the cable. All work 
shall be performed in accordance with the requirements of state or 
local authorities. Any trenching which may be necessary is included 
in this unit.
    UR-4c  Pavement Assembly Unit, Concrete--Consists of the labor 
and material necessary to remove and restore one (1) lineal foot of 
concrete pavement, measured along the route of the cable. All work 
shall be performed in accordance with the requirements of state or 
local authorities. Any trenching which may be necessary is included 
in this unit.
    UR-5  Underground Pipe Crossing Assembly Unit--Consists of one 
(1) lineal foot of steel pipe, of the inside diameter, in inches, 
specified in the last digit of the assembly unit designation, 
installed in place. This unit includes the pushing of pipe and any 
excavation, backfilling and tamping necessary for the installation 
of the pipe. The pipe will be installed at the depth specified by 
the Owner. Underground cable installed in the pipe is not included 
in this unit.
    UR-6  Underground Nonpipe Crossing Assembly Unit--Consists of 
the labor in providing a hole in soil one (1) foot in length of a 
diameter sufficient to accommodate the cable to be installed 
therein. The depth of the hole below the surface of the ground shall 
be specified by the Owner. This unit includes any excavation, 
backfilling and tamping necessary for the installation. This unit 
may be used where the permanent installation of a steel pipe under 
the UR-5 unit is not required. Underground cable installed in the 
hole is not included in this unit. 

----------------------------------------------------------------------------------------------------------------
                                                                  Unit price                                    
                              ----------------------------------------------------------------------------------
Unit No.    Number of units                                                              Extended price--labor &
                                    Labor           Materials       Labor & materials           materials       
----------------------------------------------------------------------------------------------------------------
UR                                                                                                              
----------------------------------------------------------------------------------------------------------------

     Total, Section UR--________

Distribution Construction Units--Line Changes

    The general heading of Line Changes applies to the changing of 
existing lines or portion thereof from their existing phasing, wire 
size, and type to new phasing, wire size, and type and the removal 
of existing lines or portion thereof and replacing with new lines in 
close proximity thereto. In general line changes involve three types 
of assembly units as follows:
    Section H--Conversion assembly units;
    Section I--Removal assembly units;
    Section N--New construction assembly units on existing lines or 
in replacing lines.
    The assembly units that are included in Section H, I, and N are 
defined by symbols and descriptions which follow together with the 
applicable descriptions included under New construction. Where the 
descriptions are not correct or sufficiently explicit, or when 
special units are not covered by Construction Drawings, descriptions 
have been provided by the Engineer in the respective sections.
    Work included in these sections shall be performed under the 
schedule as set forth below: ________. 

  Schedule of Deenergization of Existing Distribution Lines Under Which 
           Work Under Sections H, I, and N Shall Be Performed           
------------------------------------------------------------------------
Line Section (to be designated by    Hours and days of week when lines  
  point to point description on      will be deenergized to permit line 
           detail map)                            changes               
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

    The Bidder will so plan and perform its work on the above lines 
that it will be possible for the Owner to safely reenergize all 
lines involved at the expiration of the time limits set up in the 
above schedule to resume service to all consumers being served prior 
to deenergization. Prior to commencement of work each day on lines 
to be deenergized, the Bidder will notify the Owner in writing 
thereof, designating the lines to be deenergized and upon receipt of 
such notice, the Owner will deenergize such lines. Upon completion 
of work each day on such deenergized lines, the Bidder will notify 
the Owner thereof in writing or in such other manner as the 
circumstances permit designating the lines to be reenergized and 
stating that such lines may be safely reenergized and upon receipt 
of such notice, the Owner will reenergize such lines.

SECTION H--CONVERSION ASSEMBLY UNITS

    Conversion assembly units are pole-top assemblies and cover the 
furnishing of all labor and additional materials for changing an 
existing assembly unit to a new assembly unit, utilizing certain 
items of materials of the existing assembly unit on poles to be left 
in place. The unit prices for materials should include only 
additional material that is required to complete the new unit, less 
suitable allowance for material removed.
    Any materials removed from the existing assembly units which are 
not required in the construction of the conversion assembly unit 
become the property of the Bidder and may, with the permission of 
the Engineer, be reused by the Bidder in the construction of other 
assembly units called for in the Construction Contract. Conversion 
assembly units are specified by the prefix H with the new 
construction assembly unit designation shown first and the existing 
assembly unit designation shown last. For example, a H B1-A1 
signifies the conversion of an existing A1 assembly unit to a B1 
assembly unit (as was defined in the description of construction 
assembly units). In this instance the Bidder utilizes the existing 
pin-type insulator, single upset bolt and neutral spool in the 
construction of the new assembly unit. The Bidder furnishes the 
additional crossarm, crossarm pins, braces, machine bolt, carriage 
bolts, lag screw, and insulator required for the new unit. The 
Bidder takes possession of the pole-top pin and two machine bolts 
and with the permission of the Engineer may reuse these elsewhere in 
the construction of the Project. The Bidder will not be held 
accountable to the Owner for the materials he so acquires.
    The Conversion assembly units also include the furnishing of all 
labor and materials in the transferring, resagging and retying of 
conductors from one position on the pole to a different position on 
the pole where such transfers are required. Where replacement of 
conductor is required, the existing conductor will be removed under 
section I and the new conductor installed under section N. Where 
replacement of a pole is required, the existing pole and pole-top 
assembly will be removed under section I and the new pole and pole-
top assembly will be installed according to section N and no H units 
will be involved.
    Conversion assemblies are listed in three subsections for 
converting pole-top assemblies from single to V phase, single to 
three phase, and V to three phase. The following descriptions apply 
to only those units not sufficiently explicit. 

------------------------------------------------------------------------
               Unit                              Description            
------------------------------------------------------------------------
H                                                                       
------------------------------------------------------------------------

SECTION H--CONVERSION ASSEMBLY UNITS

    Subsection H (B-A) 1 Phase to V Phase 

----------------------------------------------------------------------------------------------------------------
                                                      Unit price                                                
 Unit No.    Number of units  ---------------------------------------------------------  Extended price--labor &
                                    Labor            Materials       Labor & materials          materials       
----------------------------------------------------------------------------------------------------------------
H                                                                                                               
----------------------------------------------------------------------------------------------------------------

    Total, Subsection H (B-A)--________

SECTION H--CONVERSION ASSEMBLY UNITS

    Subsection H (C-A) 1 Phase to 3 Phase

----------------------------------------------------------------------------------------------------------------
                                                      Unit price                                                
 Unit No.    Number of units  ---------------------------------------------------------  Extended price--labor &
                                    Labor            Materials       Labor & materials          materials       
----------------------------------------------------------------------------------------------------------------
H                                                                                                               
----------------------------------------------------------------------------------------------------------------

    Total, Subsection H (C-A)--________

SECTION H--CONVERSION ASSEMBLY UNITS

    Subsection H (C-B) V Phase to 3 Phase

----------------------------------------------------------------------------------------------------------------
                                                      Unit price                                                
 Unit No.    Number of units  ---------------------------------------------------------  Extended price--labor &
                                    Labor            Materials       Labor & materials          materials       
----------------------------------------------------------------------------------------------------------------
H                                                                                                               
----------------------------------------------------------------------------------------------------------------

    Total, Subsection H (C-B)--________
    Total, Subsection H (B-A)--________
    Total, Subsection H (C-A)--________
    Total, Section H--________

SECTION I--REMOVAL ASSEMBLY UNITS

    Removal assembly units cover the furnishing of all labor for the 
removal of existing units of construction from existing lines, 
disassembling into material items, and all labor and transportation 
for the returning of all materials to the warehouse of the Owner in 
an orderly manner or transporting elsewhere to the site of the 
Project for reuse in the prosecution of this Contract as approved by 
the Engineer.
    The Bidder will be charged by the Owner for the full value of 
all materials removed under this section at the value shown in Table 
C. Such charges will be placed against the Bidder as units are 
removed and the value will be deducted from the total value of 
installed assembly units for determination of the work accomplished 
for purposes of monthly progress payments to the Bidder.
    Of the materials listed in Table C to be removed from existing 
lines, certain materials will be reused in the construction of the 
Project. Such materials to be reused are listed in Table C-1. 
Materials other than those listed in Table C-1 shall, if not damaged 
in handling, be returned to the Owner for full credit at the values 
shown in Table D. The Bidder will be allowed full credit for all 
material items, other than those listed in Table C-1, returned to 
the Owner which, in the opinion of the Engineer, were not damaged by 
the Bidder in removal and handling even though the materials may not 
be reusable for reasons of obsolescence or deterioration. Such 
credits shall be allowed the Bidder as materials are returned to the 
Owner's warehouse and shall be added to the total value of installed 
assembly units for determination of the work accomplished for 
purposes of monthly progress payments to the Bidder.
    The unit removal prices shall include all material and labor 
required to reinstall in accordance with specifications any 
conductors temporarily detached. The Bidder will reinstall at his 
own expense any other units removed by him for his own convenience.
    The removal units are specified by the prefix I and followed by 
the assembly unit designation of existing assembly unit to be 
removed. For example, an I-A1 signifies the removal of an A1 
assembly unit. The following special notes apply to specific removal 
units: ________.
    a. Poles. All poles of the same height, regardless of pole 
class, are designated by the same unit. Thus an I-30-foot pole 
signifies the removal of a 30-foot pole of any class. The Bidder is 
not required under this unit to remove from the pole any ground wire 
or pole numbering attached to the pole. This unit includes the 
refilling and tamping of holes in a workmanlike manner unless they 
are to be reused.
    b. Pole-Top Assemblies. The unit of removal of pole-top 
assemblies includes, in addition to the removal of the assembly 
itself, any necessary handling, resagging, and retying of conductors 
in those cases where an existing pole-top assembly will be removed 
and replaced by a new pole-top assembly and where any existing 
conductor is to be reused.
    The unit of removal of pole-top assemblies also includes any 
holding or handling of mainline or tap conductors at tap lines, 
angles, and deadends where such is involved, and reinstalling of 
such conductor in accordance with the specifications; for example, 
an I-A5-4 will include the disconnection of the tap conductors, 
snubbing off the tap line at the nearest practical point and the 
reconnection and resagging of these tap conductors if necessary to 
the new tap assembly when installed. The new unit of construction, 
however, will be specified separately in Section N.
    c. Conductor. The conductor removal unit covers the removal of 
1,000 feet of conductor or cable and reeling or coiling it in a 
workmanlike manner in such a way that it can be reused by the Bidder 
or the Owner. The Owner will furnish to the Bidder reels if it is to 
be returned to the Owner's warehouse on reels. The Bidder will 
retain possession of all jumpers, tie wire, armor rods, connectors, 
and other conductor accessories removed. These items will not be 
returned to the Owner. The removal unit for each size of conductor 
or cable is shown by the prefix I followed by D and the conductor or 
cable type; thus an I-D-6ACWC signifies the removal unit for 1,000 
feet of 6A Copperweld-copper conductor.
    d. Guys. All guys regardless of length, type of attachment, or 
size of guy strand are specified by the same unit; thus an I-E 
signifies the removal of any guy.
    e. Anchors. Only anchor rods are to be removed by the Bidder in 
anchor removal units. The anchor will be left in the ground; thus an 
I-F signifies the removal of any anchor rod. If the rod cannot be 
unscrewed, the end of the rod shall either be cut off or bent down 
so that the rod will be at least 18 inches below ground.
    f. Transformers. The unit for removal of transformer assembly 
units is divided into two sections, (1) Conventional Transformer 
Assembly, and (2) Self-Protected Transformer Assembly. Only one unit 
is specified for each type, and all sizes of transformers from 1 to 
25 kVA within each group will be covered by the same unit. ``Self-
protected'' refers to transformers where all protective equipment is 
mounted on or within the transformer. ``Conventional'' refers to 
transformers where protective equipment is mounted separately from 
the transformer. The unit is designated by the prefix I followed by 
the description of the unit to be removed; thus IG Conventional 
signifies the removal of a conventional transformer assembly for any 
size transformer from 1 to 25 kVA.
    g. Secondary units. The unit for removal of secondary assemblies 
includes, in addition to the removal of the assembly itself, all 
necessary handling such as untying, resagging, and retying of 
secondary conductor or cables where existing secondary conductor or 
cable is to be reused.
    In addition, the unit for removal of the secondary assembly 
includes the handling or holding of any conductor at tap lines where 
such is involved, and the reinstalling of such tap conductor in 
accordance with the specifications.
    h. Service unit. The unit for removal of service assemblies 
includes, in addition to the removal of the assembly itself, all 
necessary handling such as untying, resagging, and retying of 
service conductor or cable where existing service conductor or cable 
is to be reused.
    The following descriptions apply only to those removal units not 
sufficiently explicit: 

------------------------------------------------------------------------
               Unit                              Description            
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                 Labor                  
     Unit No.        Number of -----------------------------------------
                       units        Unit price         Extended price   
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

    Total, Section I--________

     Table C.--Unit Material Values of I Units Chargeable to Bidder     
------------------------------------------------------------------------
                     Number of     Unit material                        
     Unit No.          units         value\1\          Extended price   
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Notes: 1. Unit values are based on item values from Table D.            


                 Table C-1.--Material Items To Be Reused                
------------------------------------------------------------------------
       REA item letter         Description of material item     No. of  
       designation\1\                                           Items   
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Notes: 1. See ``List of Materials Acceptable for Use on Systems of REA  
  Electrification Borrowers.''                                          


        Table D.--Values of Material Items Creditable to Bidder         
------------------------------------------------------------------------
       REA item letter         Description of material item             
       designation\1\                                        Item value 
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Notes: 1. See ``List of Materials Acceptable for Use on Systems of REA  
  Electrification Borrowers.''                                          

SECTION N--NEW ASSEMBLY UNITS

    The purpose of this section is to list complete new units of 
construction where such units are to be added to existing lines or 
installed in replacing lines.
    The units as covered by this section are the same as the units 
described in Distribution Construction Units--New Construction, 
except that these units are prefixed by the letter N. For example, 
an N40-6 unit covers the furnishing of all material and labor for 
the installation of a 40-6 pole either in an existing distribution 
line being operated by the Owner or in a new line being constructed 
to replace an existing distribution line being operated by the 
Owner.
    The following descriptions apply only to those new units not 
sufficiently explicit: 

------------------------------------------------------------------------
               Unit                              Description            
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

SECTION N--NEW ASSEMBLY UNITS 

----------------------------------------------------------------------------------------------------------------
                                                     Unit Price                                                 
Unit No.     Number of units  ---------------------------------------------------------  Extended price--labor &
                                    Labor            Materials       Labor & materials         materials        
----------------------------------------------------------------------------------------------------------------
N                                                                                                               
----------------------------------------------------------------------------------------------------------------

    Total, Section N-- ________

Proposal Summary

Recapitulation of Sections

New Construction

    Overhead
    Section--1 ________ $________
    Section--A ________  ________
    Section--B ________  ________
    Section--C ________  ________
    Section--D ________  ________
    Section--E ________  ________
    Section--F ________  ________
    Section--G ________  ________
    Section--J ________  ________
    Section--K ________  ________
    Section--M ________  ________
    Section--R ________  ________
Total Overhead ________
Underground
    Section--UD ________ $________
    Section--UG ________  ________
    Section--UK ________  ________
    Section--UM ________  ________
    Section--UR ________ ________
    Total Underground ________
    Total New Construction $________
Line Changes
    Section--H ________ $ ________
    Section--I ________ ________
    Section--N ________ ________
    Total Line Changes $ ________
    Total Distribution Line Construction $________

Transmission Construction Units

SECTION 1--POLE UNITS

    A pole unit consists of one pole in place. It does not include 
pole-top assembly unit or other parts attached to the pole. The 
first two digits indicate the length of the pole; the third digit 
shows the classification per ANSI (Example: 60-3 means a pole 60 
feet long, class 3.)
    Species of Timber: ________
    Kind of Preservative: (Check one)
    1. Creosote ____; 2. Pentachlorophenol ____; 3. Copper 
Naphthenate ____; 4. Waterborne preservative--CCA ____ ACZA ____
    Method of Treatment: (Check one)
    1. Pressure ________; 2. Thermal Process ________
    Pole Plan Under Which the Poles are to be Furnished: (Check one)
    1. Insured Warranted ____; 2. Independently Inspected ____; 3. 
Quality Assured ____; 4. Either Insured Warranted, Independently
    Inspected, or Quality Assured ____
    (Engineer to complete above) 

----------------------------------------------------------------------------------------------------------------
                                                     Unit price                                                 
Unit No.    Number of units   ---------------------------------------------------------  Extended price--labor &
                                    Labor           Materials       Labor & materials           materials       
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------

    Total, Section 1--________

SECTION 2--POLE TOP ASSEMBLY UNITS

    A pole top assembly unit consists of the hardware, crossarms and 
their appurtenances, insulators, etc., except tie wire, required to 
support the power conductors and overhead ground wire. It does not 
include the pole, the downlead, and butt coil, which are separate 
units. 

----------------------------------------------------------------------------------------------------------------
                                                     Unit Price                                                 
Unit No.    Number of units   ---------------------------------------------------------  Extended price--labor &
                                    Labor           Materials       Labor & materials           materials       
----------------------------------------------------------------------------------------------------------------
TH                                                                                                              
TP                                                                                                              
TS                                                                                                              
TSS                                                                                                             
TSZ                                                                                                             
----------------------------------------------------------------------------------------------------------------

    Total, Section 2 ________

SECTION 3--CONDUCTOR ASSEMBLY UNITS

    A conductor assembly unit consists of 1,000 feet of a single 
conductor or overhead ground wire, and includes tie wire, sleeves 
for splicing, and armor rods with clips or armor wire where 
necessary. The length of conductor or overhead ground wire shall be 
determined by taking the sum of all straight horizontal span 
distances between pole stakes or from center to center of the poles 
carrying the conductors. The conductor sizes and types listed are 
the manufacturer's designation. 

----------------------------------------------------------------------------------------------------------------
                                                     Unit Price                                                 
Unit No.    Number of units   ---------------------------------------------------------  Extended price--labor &
                                    Labor           Materials       Labor & materials           materials       
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------

    Total, Section 3 ________
    As provided for in the specifications, prior to beginning of 
work the Bidder will furnish the Engineer the following data on 
tension equipment:

Diameter Bull Wheel ________ in.
Diameter Groove ________ in.
Conductor Bending Radius ________ in.
Thickness of Neoprene at Bottom of Groove ________ in.
Stringing Sheave Diameter; Tangent ________ in., Large Angle 
________ in.

SECTION 4--GUY ASSEMBLY UNITS (TG UNITS)

    A guy assembly unit consists of the hardware and wire. Guy 
guards are designated separately.

----------------------------------------------------------------------------------------------------------------
                                                     Unit price                                                 
                              ---------------------------------------------------------   Extended price--labor 
Unit No.    Number of units                                              Labor and            and materials     
                                    Labor           Materials           materials                               
----------------------------------------------------------------------------------------------------------------
TG-1                                                                                                            
TG-2                                                                                                            
TG-3                                                                                                            
TG-4                                                                                                            
TG-5                                                                                                            
----------------------------------------------------------------------------------------------------------------

    Total, Section 4-- ________

Section 5--Anchor Assembly Units

    An anchor assembly unit consists of the anchor with rod or rods, 
complete, ready for attaching the guy wire. 

----------------------------------------------------------------------------------------------------------------
                                                     Unit price                                                 
                              ---------------------------------------------------------   Extended price--labor 
Unit No.    Number of units                                              Labor and            and materials     
                                    Labor           Materials           materials                               
----------------------------------------------------------------------------------------------------------------
TA-1-5                                                                                                          
TA-1-8                                                                                                          
TA-3                                                                                                            
----------------------------------------------------------------------------------------------------------------

    Total, Section 5-- ________

Section 6--Miscellaneous Assembly Units

    A miscellaneous assembly unit consists of an additional unit 
needed in the Project for line construction but not otherwise listed 
in the Proposal.

----------------------------------------------------------------------------------------------------------------
                                                     Unit price                                                 
                              ---------------------------------------------------------   Extended price--labor 
Unit No.    Number of units                                              Labor and            and materials     
                                    Labor           Materials           materials                               
----------------------------------------------------------------------------------------------------------------
TM                                                                                                              
                                                                                                                
----------------------------------------------------------------------------------------------------------------

    Total, Section 6-- ________

Section 7--Right-of-Way Clearing Units

    TM-12. The unit is 1,000 feet in length and ________ ( ________) 
feet in width (to be measured ________ ( ________) feet on one side 
of pole line or centerline of structures) of actual clearing of 
right-of-way. This includes clearing of underbrush, tree removal, 
and such tree trimming as is required so that the right-of-way, 
except for tree stumps which shall not exceed ________ in height, 
shall be clear from the ground up on one side of the line of poles 
carrying conductors. (See Detail A, Drawing TM-12-2A.) The length of 
actual clearing shall be measured in a straight line parallel to the 
horizontal line between poles or centerline of structures and across 
the maximum dimension of foliage cleared projected to the ground 
line. (See Detail B, Drawing TM-12-2A.) All trees and underbrush 
across the width of the right-of-way shall be considered to be 
grouped together as a single length in measuring the total length of 
clearing. (See Detail C, Drawing TM-12-2A.) Spaces along the right-
of-way in which no trees are to be removed or trimmed or underbrush 
cleared shall be omitted from the total measurement. All length thus 
arrived at, added together and divided by 1,000 shall give the 
number of 1,000-foot TM-12 units of clearing. The Bidder shall not 
remove or trim shade, fruit, or ornamental trees unless so directed 
by the Engineer in writing.
    TM-12 (1). This unit is identical with TM-12, except the full 
width of the right-of-way to be cleared shall be ________ (________) 
feet wide (to be measured ________ (________) feet on each side of 
the pole line or centerline of structures). (See Detail D, Drawing 
TM-12-2A.)
    TMC-12, TMC-12 (1). These units are identical to the respective 
TM units except that chemical treatment of stumps is required in 
addition to the clearing of underbrush, tree removal and tree 
trimming.
    TM-13. The unit, for purpose of quoting, is 1,000 feet in length 
of clearing off the right-of-way. The Engineer will select those 
trees off the right-of-way that he deems to be a hazard to the line 
and will designate them to the Bidder in writing as danger trees. 
When so designated, the Bidder shall remove or top such trees at his 
option except that the Bidder shall trim and not remove shade, 
fruit, or ornamental trees unless otherwise directed by the Engineer 
in writing. (See Drawings TM-12-2A and TM-13 for examples of danger 
trees.)
    The measurement of the length of clearing off the right-of-way 
shall be considered as a straight line parallel to the horizontal 
line between poles or centerline of structures, such measurement of 
length to be based on maximum dimension of foliage (not trunk) 
projected to the ground line. (See Details E, F, G, and H, Drawing 
TM-12-2A.) Dead trees having no foliage shall be measured across the 
maximum dimension and multiplied by two. (See Detail F, Drawing TM-
12-2A.) Each tree so removed shall be added together to determine 
the total length of clearing. All length thus arrived at, added 
together and divided by 1,000, shall give the number of TM-13 units. 
(Example: Details E, F, G, and H, Drawing TM-12-2A, total .1 of a 
TM-13 unit.)
    TM-14. The unit is 1,000 feet in length and ______ (______) feet 
in width (to be measured ______ (______) feet on one side of right-
of-way centerline) of actual clearing of right-of-way. Trees and 
underbrush should be cleared from the ground up within 10 feet of 
any structure location. The Engineer will mark the trees and brush 
to be cleared to provide ``undulating'' boundaries. Low growing 
trees and brush are to be left in the right-of-way to the extent it 
will not be hazardous to the line or will not interfere with the 
access road.
    The length of actual clearing shall be measured in a straight 
line parallel to the horizontal line between poles or centerline of 
structures and across the maximum dimension of foliage cleared 
projected to the ground line (See Detail B, Drawing TM-12-2A.) All 
trees and underbrush cleared across the right-of-way shall be 
considered to be grouped together as a single length in measuring 
the total length of clearing (See Detail C, Drawing TM-12-2A.) 
Spaces along the right-of-way in which no trees are to be removed or 
trimmed or underbrush cleared shall be omitted from the total 
measurement.
    TM-14 (1). This unit is identical with TM-14 except the full 
width of the right-of-way to be cleared shall be ______ (______) 
feet in width (to be measured ______ (______) feet wide (See Detail 
D, Drawing TM-12-2A.)
    TM-15. The unit is 1,000 feet in length and ______ (______) feet 
in width (to be measured ______ (______) feet on one side of the 
right-of-way centerline) of actual clearing of the right-of-way. 
Trees and underbrush should be cleared from ground up within 10 feet 
of any structure location. The Engineer will mark the trees and 
brush to be cleared to provide a ``feathered'' appearance in the 
right-of-way. Low growing trees and brush are to be left in the 
right-of-way to the extent it will not be hazardous to the line or 
will not interfere with the access road.
    The length of actual clearing shall be measured in a straight 
line parallel to the horizontal line between poles or centerline of 
structures and across the maximum dimension of foliage cleared 
projected to ground line (See Detail B, Drawing TM-12-2A). All trees 
and underbrush cleared across the right-of-way shall be considered 
to be grouped together as a single length in measuring the total 
length of clearing (See Detail C, Drawing TM-12-2A). Spaces along 
the right-of-way which no trees are to be removed or trimmed or 
underbrush cleared shall be omitted from the total measurement.
    TM-15 (1). This unit is identical to TM-15 except the full width 
of the right-of-way to be cleared shall be ______ (______) feet wide 
(See Detail D, Drawing TM-12-2A).
    Additional Requirements (When specifying TM units denote type of 
disposal (A or B).)
    A. Trees, brush, branches and refuse shall, without delay, be 
disposed of by such of the following methods as the Engineer will 
direct (Engineer to strike out methods not to be used):

1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (describe) ______
    B. Trees that are felled shall be cut to commercial wood 
lengths, stacked neatly, and left on the right-of-way for the 
landowner. Commercial wood length means the length designated by the 
Engineer but in no case shall it be required to be less than ______ 
(______) feet. Brush, branches, and refuse shall, without delay, be 
disposed of by such of the following methods as the Engineer will 
direct (Engineer to strike out methods not to be used):

1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (describe) ______ 

----------------------------------------------------------------------------------------------------------------
                                                     Unit price                                                 
                              ---------------------------------------------------------   Extended price--labor 
 Unit No.   Number of units                                              Labor and            and materials     
                                    Labor           Materials           materials                               
----------------------------------------------------------------------------------------------------------------
                                                                                                                
                                                                                                                
----------------------------------------------------------------------------------------------------------------

Total, Section 6--________

Proposal Summary

    Recapitulation of Sections:

Section--1 ______ $______
Section--2$ ________ $________
Section--3 ________ $________
Section--4 ________ $________
Section--5 ________ $________
Section--6 ________ $________
Section--7 ________ $________

Total Transmission Line Construction ________

Section 8--Substation Assembly Units

    Description of Construction Units. Each Construction Unit 
consists of a complete installation of the designated portion of a 
substation as specified on the drawings, together with connections 
to associated equipment. Each Construction Unit represents all labor 
and material including necessary accessories completely installed 
and tested in satisfactory operation. Full identification of each 
Construction Unit and all necessary specifications of the 
installation is shown on the drawings. Items of material in each 
Construction Unit shall be of the designated size, rating, type, 
voltage, or other specification in accordance with the drawings. The 
bill of material drawing for each substation shows the 
identification of the Construction Units under which the material is 
to be installed and shows which items of material may be partly or 
entirely found on the lists of Owner-furnished materials.
    All items of equipment, unless otherwise specified, are mounted 
on a structure which shall be a Construction Unit of Group A.
    Each Construction Unit is designated by the letter of the Group 
to which it belongs and an identifying number. The same item of 
equipment carries the same Construction Unit designation in all the 
substations. Items of equipment designated by the same Construction 
Unit in one substation are of only one kind as to voltage, type and 
other specifications. The tabulation of Construction units for each 
substation is separate and contains all units necessary for 
construction of that substation.
    Group A. Structures. A Construction Unit consists of a 
structure, or structures, with bus supports including insulators and 
fittings, buses, conductors and overhead ground wires to adjacent 
structures within the substation, grounding material to connect 
equipment with the ground bus, and associated material including 
mounting brackets, supports for equipment, clamps and connectors, 
all as specified in the drawings.
    Group B. Three-pole group operated air break switches. A 
Construction Unit consists of one 3-pole group operated air break 
switch with all accessories and operating mechanisms as specified in 
the drawings.
    Group C. Lightning arresters. A Construction Unit consists of 
one single arrester.
    Group D. Single pole disconnecting switches. A Construction Unit 
consists of one single pole disconnecting or by-pass switch as 
specified in the drawings. If a fuse disconnect switch is specified, 
the fuse is included with the switch.
    Group E. Oil circuit breakers. A Construction Unit consists of 
one complete three-phase power circuit breaker complete with 
supporting frame and control cabinet, unless shown otherwise in the 
drawings, mounted as specified in the drawings.
    Group F. Oil circuit reclosers. A Construction Unit consists of 
a complete single-phase or three phase oil circuit recloser as 
specified in the drawings.
    Group G. Meters, relays and instrument transformers. A 
Construction Unit consists of one meter, relay potential transformer 
or current transformer.
    Group H. Transformers. A Construction Unit consists of one power 
transformer or one station service transformer either single-phase 
or three-phase as specified in the drawings.
    Group I. Voltage regulators. A Construction Unit consists of one 
single-phase or three-phase voltage regulator as specified in the 
drawings.
    Group J. Communications and supervisory control equipment. A 
Construction Unit consists of carrier current equipment, microwave, 
or other types of communications and supervisory control equipment 
as specified in the drawings.
    Group K. Conduit and cable. A Construction Unit consists of the 
wire, cable, conduit and accessories necessary to complete the 
installation of equipment in accordance with the specifications and 
drawings, where such installation has not been included in other 
Groups.
    Group L. Foundations. A Construction Unit consists of concrete 
footings and foundations except for the fence, as specified in the 
drawings.
    Group M. Site preparation. A Construction Unit consists of 
clearing, grading, drainage work, and surfacing, as specified in the 
drawings.
    Group N. Fence. A Construction Unit consists of the complete 
installation of the fence, gates, etc., as specified in the 
drawings.
    Group O. Station grounding. A Construction Unit consists of the 
complete ground bus including ground rods, grounding mats or 
platforms, except as otherwise provided in other Groups, with 
connections to structures, equipment, and fence as specified in the 
drawings.
    Group P. Building. A Construction Unit consists of a control 
building or cabinet, on a foundation of Group L and the facilities 
and equipment installed therein as specified in the drawings, except 
as otherwise provided in other Groups.
    Other Groups. The Engineer shall specify such additional Groups 
as may be necessary for the completion of the Project. Description 
of these Groups shall be provided by an addition to this section of 
the Specifications for Construction.

________ Station Construction Units
Unit No. ________
Name and Description of Construction Unit ________
No. of Units ________
Unit Prices
Labor ________
Materials ________
Labor and Materials ________
Extended Price--Labor and Materials ________
    Total Price ________

Proposal Summary

________ Substation $________
________ Substation ________
________ Substation ________
________ Switching Station ________
________ Switching Station ________
Total Station Construction $________

Proposal Recapitulation

Distribution line construction $________
Transmission line construction ________
Substation and Switching Station Construction ________
    Total $________

Acceptance

    The Owner hereby accepts the foregoing Proposal of the Bidder, 
________ for the construction of the following:

Distribution Construction Units: Sections: ________
Transmission Construction Units: Sections: ________
    Substation and Switching Station Construction: Stations (name):

________
________ Owner
By ________ President
________ Secretary
________ Date of Contract

[End of clause]


Sec. 1726.352  Electric transmission construction contract (labor and 
materials), REA Form 831.

    The contract form in this section shall be used when required by 
this part. This form refers to guide drawings, which do not contain 
requirements, and, hence, are not included in this part. The guide 
drawings are included in the printed form available from GPO (See 
Sec. 1726.300.).

Electric Transmission Construction Contract (Labor and Materials)

Notice and Instructions to Bidders

    1. Sealed proposals for the construction, including the supply 
of necessary labor, materials and equipment, of a rural electric 
project of ________ (hereinafter called the ``Owner'') to be known 
as Project will be received by the Owner on or before ________ 
o'clock ____ M., __________, 19____ at its office at ________ at 
which time and place the proposals will be publicly opened and read. 
Any proposal received subsequent to the time specified will be 
promptly returned to the Bidder unopened.
    2. Description of Project: The Project will consist of 
approximately:

Transmission Line Construction

________ miles ________ kV; ________ miles ________ kV ________ 
miles ________ kV underbuild

Substations and Other Major Facilities

________ kVA ________ Voltage ________ Name

    The Project is located in ________ Counties, in the State of 
________ all as more fully described in the Plans, Specifications, 
Construction Drawings and Contractor's Proposal therefore 
hereinafter referred to.
    3. Owner furnished materials. The unit prices in the 
Contractor's Proposal shall include provisions for Owner Furnished 
Materials since as stated in Article 1, Section 3 of the 
Contractor's Proposal, the value of the Owner Furnished Materials, 
if any, will be deducted from payments to the Bidder for completed 
Construction Units.
    4. Obtaining and transferring documents. The Plans, 
Specifications and Construction Drawings together with all necessary 
forms and other documents for bidders may be obtained from the 
Owner, or from the Engineer, ________ at the latter's office at 
________ upon the payment of ten dollars ($10), which payment will 
not be subject to refund. The Plans, Specifications and Construction 
Drawings may be examined at the office of the Owner or at the office 
of the Engineer. A copy of the Loan Contract (if the Project is to 
be financed, in whole or in part, pursuant to a loan contract) 
between the Owner and the United States of America acting through 
the Administrator of the Rural Electrification Administration 
(hereinafter called the Administrator) and of the loan contract 
between the Owner and any other lender may be examined at the office 
of the Owner. Each set of Plans, Specifications and Construction 
Drawings will have a serial number, given by the Engineer, and the 
number of each set with the name of the Purchaser will be recorded 
by the Engineer. Bids will be accepted only from the original 
purchaser.
    5. Manner of submitting proposals. Proposals and all supporting 
instruments must be submitted on the forms furnished by the Owner 
and must be delivered in a sealed envelope addressed to the Owner. 
The name and address of the Bidder, its license number if a license 
is required by the State, and the date and hour of the opening of 
bids must appear on the envelope in which the Proposal is submitted. 
Proposals must be filled in in ink or typewritten. No alterations or 
interlineations will be permitted, unless made before submission, 
and initialed and dated.
    6. Familiarity with conditions. Prior to the submission of the 
Proposal the Bidder shall make and shall be deemed to have made a 
careful examination of the site of the Project and of the Plans, 
Specifications, Construction Drawings, and forms of Contractor's 
Proposal and Contractor's Bond on file with the Secretary of the 
Owner and with the Engineer, and shall become informed as to the 
location and nature of the proposed construction, the transportation 
facilities, the kind and character of soil and terrain to be 
encountered, the kind of facilities required before and during the 
construction of the Project, general local conditions and all other 
matters that may affect the cost and the time of completion of the 
Project. Bidders will be required to comply with all applicable 
statutes, regulations, etc., including those pertaining to the 
licensing of contractors, and the so-called ``Kick-back Statute'' 
(48 Stat. 948) and regulations issued pursuant thereto.
    7. Proposals will be accepted only from those prequalified 
bidders invited by the Owner to submit a proposal.
    8. Alternate designs. The Owner reserves the right to confine 
its consideration of the several bids to one type of design 
regardless of alternate types of design which may be specified in 
the Plans and Specifications and offered in the Proposals.
    9. The Time for Completion of Construction of the Project shall 
be as specified by the Engineer in the Proposal.
    10. Bid bond. Each Proposal must be accompanied by a Bid Bond in 
the form attached or a certified check on a bank that is a member of 
the Federal Deposit Insurance Corporation, payable to the order of 
the Owner, in an amount equal to ten percent (10%) of the maximum 
bid price. Each Bidder agrees, provided its Proposal is one of the 
three low Proposals, that, by filing its Proposal together with such 
Bid Bond or check in consideration of the owner's receiving and 
considering such Proposals, said Proposal shall be firm and binding 
upon each such Bidder and such Bid Bond or check shall be held by 
the Owner until a Proposal is accepted and a satisfactory 
Contractor's Bond is furnished (where required) by the successful 
Bidder and such acceptance has been approved by the Administrator, 
or for a period not to exceed sixty (60) days from the date 
hereinbefore set for the opening of Proposals, whichever period 
shall be the shorter. If such Proposal is not one of the three low 
Proposals, the Bid Bond or check will be returned in each instance 
within a period of ten (10) days to the Bidder furnishing same.
    11. Contractor's bond. The successful Bidder will be required to 
execute two additional counterparts of the Proposal and, for a 
Contract in excess of $100,000, to furnish a Contractor's Bond in 
triplicate in the form attached hereto with sureties listed by the 
United States Treasury Department as Acceptable Sureties, in a penal 
sum not less than the contract price.
    12. Failure to furnish contractor's bond. Should the successful 
Bidder fail or refuse to execute such counterparts or to furnish a 
Contractor's Bond (where required) within ten (10) days after 
written notification of the acceptance of the Proposal by the Owner, 
the Bidder will be considered to have abandoned the Proposal. In 
such event, the Owner shall be entitled (a) to enforce the Bid Bond 
in accordance with its terms, or (b) if a certified check has been 
delivered with the Proposal, to retain from the proceeds of the 
certified check, the difference (not exceeding the amount of the 
certified check) between the amount of the Proposal and such larger 
amount for which the Owner may in good faith contract with another 
party to construct the Project. The term ``Successful Bidder'' shall 
be deemed to include any Bidder whose Proposal is accepted after 
another Bidder has previously refused or has been unable to execute 
the counterparts or to furnish a satisfactory Contractor's Bond 
(where required.)
    13. Contract is entire agreement. The Contract to be effected by 
the acceptance of the Proposal shall be deemed to include the entire 
agreement between the parties thereto, and the Bidder shall not 
claim any modification thereof resulting from any representation or 
promise made at any time by any officer, agent or employee of the 
Owner or by any other person.
    14. Minor irregularities. The Owner reserves the right to waive 
minor irregularities or minor errors in any Proposal, if it appears 
to the Owner that such irregularities or errors were made through 
inadvertence. Any such irregularities or errors so waived must be 
corrected on the Proposal in which they occur prior to the 
acceptance thereof by the Owner.
    15. Balanced bid. The Owner reserves the right to reject any or 
all Proposals. The attention of Bidders is specially called to the 
desirability of a proper balance between prices for labor and 
materials and between the total prices for the respective 
Construction Units. Lack of such balance may be considered as a 
reason for rejecting a Proposal.
    16. Discrepancy in unit prices. Where the unit prices in the 
Contractor's Proposal are separated into three columns designated as 
``Labor,'' ``Materials'' and ``Labor and Materials,'' and where a 
discrepancy appears between the sum shown in the ``Labor and 
Materials'' column and the correct addition of the sums appearing in 
the ``Labor'' column and the ``Materials'' column, the correct 
addition of the sums appearing in the ``Labor'' column and the 
``Materials'' column shall control.
    17. Definition of terms. The terms Administrator, Engineer, 
Supervisor, Project, Completion of Construction and Completion of 
the Project as used throughout this Contract shall be as defined in 
Article VI, section 1, of the Contractor's Proposal.
    18. The Owner Represents:
    a. If by provisions of the Contractor's Proposal the Owner shall 
have undertaken to furnish any materials for the construction of the 
Project, such materials are on hand at locations specified or if 
such materials are not on hand they will be made available by the 
Owner to the successful Bidder at the locations specified before the 
time such materials are required for construction.
    b. All easements and rights-of-way, except as shown on maps 
included in the Plans and Specifications, have been obtained from 
the owners of the properties across which the Project is to be 
constructed (including tenants who may reasonably be expected to 
object to such construction). The remaining easements and rights-of-
way, if any, will be obtained as required to avoid delay in 
construction.
    c. All staking, except as shown on the maps included in the 
Plans and Specifications, has been completed and sufficient staking 
crews will be available to maintain stakes at all times in advance 
of construction.
    d. Prompt payment for the construction of the Project will be 
made with funds pursuant to the Loan Contract, or with funds 
otherwise available to the Owner.
    If the Owner shall fail to comply with any of the undertakings 
contained in the foregoing representations or if any of such 
representations shall be incorrect, the Bidder will be entitled to 
an extension of time of completion for a period equal to the delay, 
if any, caused by the failure of the Owner to comply with such 
undertakings or by any such incorrect representation; provided the 
Bidder shall have promptly notified the Owner in writing of its 
desire to extend the time of completion in accordance with the 
foregoing; provided, however, that such extension, if any, of the 
time and completion shall be the sole remedy of the Bidder for the 
Owner's failure, because of conditions beyond the control and 
without the fault of the Owner, to furnish materials in accordance 
with subparagraph a hereof.

________ Owner
By ________
________, 19____

Contractor's Proposal

(Proposal shall be submitted in ink or typewritten)
To: ________ (Hereinafter called the ``Owner'')

ARTICLE I--GENERAL

    Section 1. Offer to Construct. The undersigned (hereinafter 
called the ``Bidder'') hereby proposes to receive and install such 
materials and equipment as may hereinafter be specified to be 
furnished by the Owner, and to furnish all other materials and 
equipment, all machinery, tools, labor, transportation and other 
means required to construct the rural electric project ________ in 
strict accordance with the Plans, Specifications and Construction 
Drawings therefor, attached hereto and made a part hereof, for the 
prices hereinafter stated.
    The total length of the project lines shall be determined by 
taking the sum of all straight horizontal span distances between 
pole stakes or from center to center of poles, or centerline of 
structures, carrying conductors.
    Section 2. Materials and Equipment. The Bidder agrees to furnish 
and use in the construction of the Project under this Proposal, in 
the event the Proposal is accepted, only such materials and 
equipment as are included in the current ``List of Materials 
Acceptable for Use on Systems of REA Electrification Borrowers,'' 
including revisions adopted prior to the Bid Opening.
    The Bidder further agrees to furnish:


------------------------------------------------------------------------
                                                             Galvanizing
                                              Type    Size      class   
------------------------------------------------------------------------
Overhead ground wire.......................  ......  ......  ...........
Guy wire...................................  ......  ......  ...........
Structure ground wire......................  ......  ......  ...........
------------------------------------------------------------------------

(Engineer to insert Type, Size and Galvanizing Class as appropriate)

    The Bidder further agrees to furnish and use poles, crossarms, 
and other timber products, of which the physical characteristics, 
method of treatment, type of preservative, instructions on 
inspection and general procedure shall be in accordance with REA 
standards and requirements.
    Crossarms shall be ________ (Engineer to insert Douglas Fir or 
Southern Yellow Pine), treated with ________ (Engineer to insert 
type of preservative.)
    Section 3. Owner-Furnished Materials. The Bidder understands and 
agrees that, if this Proposal is accepted, the Owner will furnish to 
the Bidder the material set forth in the attached ``List of Owner's 
Materials on Hand'' (see page ____) and the Bidder will give a 
receipt (see page ____) therefor in writing to the Owner. The 
Bidder, further, will on behalf of the Owner accept delivery of such 
of the materials set forth in the attached ``List of Materials 
Ordered by Owner but Not Delivered'' (see page ____) as may be 
subsequently delivered and will promptly forward to the Owner for 
payment the supplier's invoice, together with the Bidder's receipt 
in writing for such materials. The materials referred to are on hand 
at, or will be delivered to, the locations specified in the Lists 
and the Bidder will use such materials in constructing the Project.
    The value of the completed Construction Units certified by the 
Bidder each month pursuant to Article III, section 1(a) of this 
Proposal shall be reduced by an amount equal to the value of the 
materials installed by the Bidder during the preceding month which 
have been furnished by the Owner or the delivery of which has been 
accepted by the Bidder on behalf of the Owner. Only ninety percent 
(90%) of the remainder shall be paid prior to the Completion of the 
Project. The value of such materials shall be computed on the basis 
of the unit prices stated in the Lists, Materials, if any, not 
required for the Project, which have been furnished to the Bidder by 
the Owner or delivery of which has been accepted by the Bidder on 
behalf of the Owner, shall be returned to the Owner by the Bidder 
upon completion of construction of the Project. The value of all 
materials not installed in the Project nor returned to the Owner 
shall be deducted from the final payment to the Bidder.
    The Owner shall not be obligated to furnish materials in excess 
of the quantities, size, kind and type set forth in the attached 
Lists. If the Owner furnished, and the Bidder accepts, materials in 
excess therefor, the values of such excess materials shall be their 
actual cost as stated by the Owner.
    Information on the shipping schedules of materials on the ``List 
of Materials Ordered by Owner But Not Delivered'' will be furnished 
to the Bidder as necessary during progress of the work. Upon 
delivery the Bidder shall promptly receive, unload, transport and 
handle all materials and equipment on the ``List of Materials 
Ordered by Owner But Not Delivered'' at its expense and shall be 
responsible for demurrage, if any.
    Section 4. Purchase of Materials Not Furnished by Owner. The 
Bidder will purchase all materials and equipment (other than owner-
furnished materials) outright and not subject to any conditional 
sales agreements, bailment, lease or other agreement reserving unto 
the seller any right, title or interest therein. All such materials 
and equipment shall become the property of the Owner when erected in 
place.
    Section 5. Proposal on Unit Basis. The Bidder understands and 
agrees that the various Construction Units on which bids are made 
are defined by symbols and descriptions in this Proposal, that all 
said bids are on a unit basis, and that the Owner may specify any 
number or combination of Construction Units that the Owner may deem 
necessary for the construction of the Project. Separate Construction 
Units are designated for each different arrangement which may be 
used in the construction of the Project. This Proposal is based on a 
consideration of each unit in place and includes only the materials 
listed on the corresponding Construction Drawings or description of 
unit where no drawing exists.
    Section 6. Description of Contract. The Notice and Instructions 
to Bidders and Plans attached hereto and made a part hereof, and the 
Specifications and Construction Drawings set forth in the Electric 
Transmission Specifications & Drawings, REA Form 805, as applicable, 
together with the Proposal and Acceptance constitute the Contract. 
The plans, consisting of maps and special drawings, are identified 
as follows: ________.
    Section 7. Familiarity with Conditions. The Bidder has made a 
careful examination of the site of the Project to be constructed and 
of the Plans, Specifications, Construction Drawings, and form of 
Contractor's Bond attached hereto, and has become informed as to the 
location and nature of the proposed construction, the transportation 
facilities, the kind and character of soil and terrain to be 
encountered, and the kind of facilities required before and during 
the construction of the Project, and has become acquainted with the 
labor conditions, state and local laws and regulations which would 
affect work on the proposed construction.
    Section 8. License. The Bidder warrants that a Contractor's 
License is ________ is not ________ required, and if required it 
possesses Contractor's License No. ________ for the State of 
________ in which the Project is located and said license expires on 
________, 19____.
    Section 9. The Bidder warrants that this Proposal is made in 
good faith and without collusion or connection with any person or 
persons bidding for the same work.
    Section 10. The Bidder warrants that it possesses adequate 
financial resources and agrees that in the event this Proposal is 
accepted and a Contractor's Bond is required, it will furnish a 
Contractor's Bond in the form attached hereto, in a penal sum not 
less than the maximum Contractor price, with a surety or sureties 
listed by the United States Treasury Department as Acceptance 
Sureties.
    In the event that the surety or sureties on the performance bond 
delivered to the Owner contemporaneously with the execution of the 
Contract or on any bond or bonds delivered in substitution therefor 
or in addition thereto shall at any time become unsatisfactory to 
the Owner or the Administrator, the Bidder agrees to deliver to the 
Owner another or an additional bond.
    Section 11. Taxes. The unit prices for Construction Units in 
this Proposal include provisions for the payment of all monies which 
will be payable by the Bidder or the Owner in connection with the 
construction of the Project on account of taxes imposed by any 
taxing authority upon the sale, purchase or use of materials, 
supplies and equipment, or services or labor of installation 
thereof, to be incorporated in the Project as part of such 
Construction Units. The Bidder agrees to pay all such taxes, except 
taxes upon the sale, purchase or use of owner-furnished materials 
and it is understood that, as to owner-furnished materials, the 
values stated in the attached ``List of Owner's Materials on Hand'' 
and ``List of Materials Ordered by Owner But Not Delivered'' include 
taxes upon the sale, purchase or use of owner-furnished materials, 
if applicable. The Bidder will furnish to the appropriate taxing 
authorities all required information and reports pertaining to the 
Project, except as to the owner-furnished materials.
    Section 12. Changes in Quantities. The Bidder understands and 
agrees that the quantities called for in this Proposal are 
approximate, and that the total number of units upon which payment 
shall be made shall be as set forth in the Inventory. If the Owner 
changes the quantity of any Assembly Unit or Assembly Units 
specified in this Proposal by more than 15%, and the materials cost 
to the Bidder is increased thereby to an extent which would not be 
adequately compensated by application of the unit prices in this 
Proposal to the revised quantity of such unit or units, such change, 
to the extent of the quantities of such units in excess of such 15%, 
shall be regarded as a change in the construction within the meaning 
of Article II, Section 1(d) of this proposal.
    Section 13. Description of Contract. The Notice and Instructions 
to Bidders, Plans, Specifications for Construction and Construction 
Drawings, all attached hereto and made a part hereof together with 
the Proposal and Acceptance constitute the contract. The Plans and 
Construction Drawings are identified as follows: ________

----------------------------------------------------------------------------------------------------------------
                                       List of owner's materials on hand                                        
-----------------------------------------------------------------------------------------------------------------
                     Description of                                                                             
     Item\1\           material          Catalog No.         Quantity          Unit price       Extended price  
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------
AAAbove materials are located at:                                                                               
AANotes: 1. Item corresponds with item in list of materials in construction drawings. Under Article I, Section  
  3, the value of these materials will be deducted from payments to the Bidder for completed Construction Units.
                                                                                                                


----------------------------------------------------------------------------------------------------------------
                              List of materials ordered by owner but not delivered                              
-----------------------------------------------------------------------------------------------------------------
                Supplier      Scheduled                                                                         
  Item\1\       name and    delivery date   Description of  Catalog No.     Quantity    Unit price     Extended 
                address                       material                                                  price   
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------
AAAbove material to be delivered to:                                                                            
AANotes: 1. Item corresponds with item in list of materials in construction drawings. Under Article I, Section  
  3, the value of these materials will be deducted from payments to the Bidder for completed Construction Units.
                                                                                                                

ARTICLE II--CONSTRUCTION

Section 1. Time and Manner of Construction

    a. The Bidder agrees to commence construction of the Project on 
a date (hereinafter called the ``Commencement Date'') which shall be 
determined by the Engineer after notice in writing of approval of 
the Contract by the Administrator and notice in writing from the 
Bidder that the Bidder has sufficient materials to warrant 
commencement and continuation of construction, but in no event will 
the Commencement Date be later than ________  calendar days after 
date of approval of the Contract by the Administrator. The Bidder 
further agrees to prosecute diligently and to complete construction 
in strict accordance with the Plans, Specifications and Construction 
Drawings within ________  (________ ) calendar days (excluding 
Sundays) after Commencement Date: Provided, however, that the Bidder 
will not be required to dig holes, set poles or install anchors if 
there are more than six (6) inches of frost in the ground nor to 
perform any construction on such days when in the judgment of the 
Engineer snow, rain, or wind, or the results of snow, rain, or frost 
make it impracticable to perform any operation of construction and 
to the extent of the time lost due to the conditions described 
herein and approved in writing by the Engineer, the time of 
completion set out above will be extended if the Bidder makes a 
written request therefor to the Owner as provided in subsection b of 
this section 1.
    b. The time for Completion of Construction shall be extended for 
the period of any reasonable delay which is due exclusively to 
causes beyond the control and without the fault of the Bidder, 
including Acts of God, fires, floods, inability to obtain materials 
and acts or omissions of the Owner with respect to matters for which 
the Owner is solely responsible: Provided, however, that no such 
extension of time for completion shall be granted the Bidder unless 
within ten (10) days after the happening of any event relied upon by 
the Bidder for such an extension of time the Bidder shall have made 
a request therefor in writing to the Owner, and provided further 
that no delay in such time of completion or in the progress of the 
work which results from any of the above causes except acts or 
omissions of the Owner, shall result in any liability on the part of 
the Owner.
    c. The sequence of construction shall be as set forth below, the 
numbers or names being the designations of extensions or areas 
(hereinafter called the ``Sections'') corresponding to the numbers 
or names shown on the maps attached hereto, or if no Sections are 
set forth below, the sequence of construction shall be as determined 
by the Bidder, subject to the approval of the Engineer. ________ 
    d. The Owner, acting through the Engineer and with the approval 
of the Administrator,\1\ may from time to time during the progress 
of the construction of the Project make such changes in, additions 
to or subtractions from the Plans, Specifications, Construction 
Drawings, List of Materials and sequence of construction provided 
for in the previous paragraph which are part of the Contractor's 
Proposal as conditions may warrant: Provided, however, that if any 
change in the construction to be done shall require an extension of 
time, a reasonable extension will be granted if the Bidder shall 
make a written request therefor to the Owner within ten (10) days 
after any such change is made. And provided further, that if the 
cost to the Bidder of construction of the Project shall be 
materially increased by any such change or addition, the Owner shall 
pay the Bidder for the reasonable cost thereof in accordance with a 
Construction Contract Amendment signed by the Owner and the Bidder 
and approved by the Administrator,\2\ but no claim for additional 
compensation for any such change or addition will be considered 
unless the Bidder shall have made a written request therefor to the 
Owner prior to the commencement of work in connection with such 
change or addition.
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    \1\1 As long as the total price of this contract including all 
amendments is less than 120 percent of the original contract price 
as stated in the acceptance hereto, amendments executed on REA Form 
238 are not subject to the approval of the Administrator. Whenever 
an amendment to this contract causes the total amended contract to 
exceed 120 percent of the original contract price, that amendment 
and all subsequent amendments to this contract shall be made subject 
to the approval of the Administrator.
    \2\See Footnote 1.
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    e. The Bidder will not perform any work hereunder on Sundays 
unless there is urgent need for such Sunday work and the Owner 
consents thereto in writing. The time for completion specified in 
subsection a of this Section 1 shall not be affected in any way by 
inclusion of this subsection nor by the Owner's consent or lack of 
consent to Sunday work hereunder.
    Section 2. Environmental Protection. The Bidder shall perform 
work in such a manner as to maximize preservation of beauty, 
conservation of natural resources and minimize marring and scarring 
of the landscape and silting of streams. The Bidder shall not 
deposit trash in streams or waterways, and shall not deposit 
herbicides or other chemicals or their containers in or near 
streams, waterways or pastures. The Bidder shall follow, under the 
general direction of the Engineer, the criteria relating to 
environmental protection as specified herein by the Engineer.
    Section 3. The Bidder agrees that in the event this Proposal is 
accepted it will make available for use in connection with the 
proposed construction all necessary tools and equipment and 
qualified superintendents and foremen.
    Section 4. Changes in Construction. The Bidder agrees to make 
such changes in construction previously installed in the Project by 
the Bidder as required by the Owner for prices arrived at as 
follows:
    a. For substations and other units where only a portion of the 
complete unit is affected by the change, the compensation for such 
change shall be as agreed upon in writing by the Bidder and the 
Owner and approved by the Administrator3 prior to the 
commencement of work in connection with such change.
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    \3\See Footnote 1.
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    b. For all other units, the compensation for such change shall 
be the reasonable cost thereof as agreed upon in writing by the 
Bidder and the Owner prior to the commencement of work in connection 
with such change, but in no event shall it exceed two (2) times the 
labor price quoted in the Proposal for the installation of the unit 
to be changed. Such compensation shall be in lieu of any other 
payment for the installation and removal of the original unit. (If a 
new or replacing unit is installed, payment for such new or 
replacing unit shall be made as shown in the final inventory.)
    No payment shall be made to the Bidder for materials or labor 
involved in correcting errors or omissions on the part of the Bidder 
which result in construction not in accordance with the Plans and 
Specifications.
    Section 5. Construction Not in Proposal. The Bidder also agrees 
that when it is necessary to construct units not shown in the 
Proposal it will construct such units for a price arrived at as 
follows:
    a. The cost of materials shall be determined by the invoices.
    b. The cost of labor shall be the reasonable cost thereof, but 
in no event shall it exceed an amount determined by calculating the 
ratio of the total labor costs to the total material costs in the 
section of the Proposal involved, and multiplying the cost of 
materials for the unit in question by this ratio.

Section 6. Supervision and Inspection

    a. The Bidder shall cause the construction work on the Project 
to receive constant supervision by a competent superintendent 
(hereinafter called the ``Superintendent'') who shall be present at 
all times during working hours where construction is being carried 
on. The Bidder shall also employ, in connection with the 
construction of the Project, capable, experienced and reliable 
foremen and such skilled workmen as may be required for the various 
classes of work to be performed. Directions and instructions given 
to the Superintendent shall be binding upon the Bidder.
    b. The Owner reserves the right to require the removal from the 
Project of any employee of the Bidder if in the judgment of the 
Owner such removal shall be necessary in order to protect the 
interest of the Owner. The Owner or the Supervisor, if any, shall 
have the right to require the Bidder to increase the number of its 
employees and to increase or change the amount or kind of tools and 
equipment if at any time the progress of the work shall be 
unsatisfactory to the Owner or Supervisor; but the failure of the 
Owner or Supervisor to give any such directions shall not relieve 
the Bidder of its obligations to complete the work within the time 
and in the manner specified in this Proposal.
    c. The manner of construction of the Project, and all materials 
and equipment used therein, shall be subject to the inspection, 
tests and approval of the Owner and the Administrator, and the 
Bidder shall furnish all information required by the Owner or by the 
Administrator concerning the nature or source of any materials 
incorporated or to be incorporated in the Project. The Owner and the 
Administrator shall have the right to inspect all payrolls, invoices 
of materials, and other data and records of the Bidder and of any 
subcontractor, relevant to the construction of the Project. The 
Bidder shall provide all reasonable facilities necessary for such 
inspection and tests and shall maintain an office at the site of the 
Project, with telephone service where obtainable and at least one 
office employee to whom directions and instructions of the Owner may 
be delivered. Delivery of such directions or instructions in writing 
to the employee of the Bidder at such office shall constitute 
delivery to the Bidder. The Bidder shall have an authorized agent 
accompany the Engineer when final inspection is made and, if 
requested by the Owner, when any other inspection is made.
    d. In the event that the Owner, or the Administrator, shall 
determine that the construction contains or may contain numerous 
defects, it shall be the duty of the Bidder and the Bidder's Surety 
or Sureties, if any, to have an inspection made by an engineer 
approved by the Owner and the Administrator for the purpose of 
determining the exact nature, extent and location of such defects.
    e. The Engineer may recommend to the Owner that the Bidder 
suspend the work wholly or in part for such period or periods as the 
Engineer may deem necessary due to unsuitable weather or such other 
conditions as are considered unfavorable for the satisfactory 
prosecution of the work or because of the failure of the Bidder to 
comply with any of the provisions of the Contract: Provided, 
however, that the Bidder shall not suspend work pursuant to this 
provision without written authority from the Owner to do so. The 
time of completion hereinabove set forth shall be increased by the 
number of days of any such suspension, except when such suspension 
is due to the failure of the Bidder to comply with any of the 
provisions of this Contract. In the event that work is suspended by 
the Bidder with the consent of the Owner, the Bidder before resuming 
work shall give the Owner at least twenty-four (24) hours notice 
thereof in writing.

Section 7. Defective Materials and Workmanship

    a. The acceptance of any materials, equipment (except owner 
furnished materials) or any workmanship by the Owner or the Engineer 
shall not preclude the subsequent rejection thereof if such 
materials, equipment, or workmanship shall be found to be defective 
after delivery or installation, and any such materials, equipment or 
workmanship found defective before final acceptance of the 
construction shall be replaced or remedied, as the case may be, by 
and at the expense of the Bidder. Any such condemned material or 
equipment shall be immediately removed from the site of the Project 
by the Bidder at the Bidder's expense. The Bidder shall not be 
entitled to any payment hereunder so long as any defective 
materials, equipment or workmanship in respect to the Project, of 
which the Bidder shall have had notice, shall not have been replaced 
or remedied, as the case may be.
    b. Notwithstanding any certificate which may have been given by 
the Owner or the Engineer, if any materials, equipment (except 
owner-furnished materials) or any workmanship which does not comply 
with the requirements of this Contract shall be discovered within 
one (1) year after Completion of Construction of the Project, the 
Bidder shall replace such defective materials or equipment or remedy 
any such defective workmanship within thirty (30) days after notice 
in writing of the existence thereof shall have been given by the 
Owner. If the Bidder shall be called upon to replace any defective 
materials or equipment or to remedy defective workmanship as herein 
provided, the Owner, if so requested by the Bidder shall deenergize 
that section of the Project involved in such work. In the event of 
failure by the Bidder to do so, the Owner may replace such defective 
materials or equipment or remedy such defective workmanship, as the 
case may be, and in such event the Bidder shall pay to the Owner the 
cost and expense thereof.

ARTICLE III--PAYMENTS AND RELEASE OF LIENS

Section 1. Payments to Bidder

    a. Within the first fifteen (15) days of each calendar month, 
the Owner shall make partial payment to the Bidder for construction 
accomplished during the preceding calendar month on the basis of 
completed Assembly Units furnished and certified to by the Bidder, 
recommended by the Engineer and approved by the Owner solely for the 
purposes of payment: Provided, however, that such approval shall not 
be deemed approval of the workmanship or materials. Only ninety 
percent (90%) of each such estimate approved during the construction 
of the Project shall be paid by the Owner to the Bidder prior to 
Completion of the Project: Provided, however, that at any time after 
work, which, in the sole determination of the Engineer, amounts to 
fifty percent (50%) of the Maximum Contract Price has been 
completed, the Owner may elect, in lieu of paying ninety percent 
(90%) of each such subsequent estimate, to pay each such subsequent 
estimate in full. Upon completion by the Bidder of the construction 
of the Project, the Engineer will prepare a Final Inventory of the 
Project showing the total number and character of Assembly Units 
and, after checking such Inventory with the Bidder, will certify it 
to the Owner, together with a certificate of the total cost of the 
construction performed. Upon the approval of such certificates by 
the Owner and the Administrator, the Owner shall make payment to the 
Bidder of all amounts to which the Bidder shall be entitled 
thereunder which shall not have been paid: Provided, however, that 
such final payment shall be made not later than ninety (90) days 
after the date of Completion of Construction of the Project, as 
specified in the Certificate of Completion, unless withheld because 
of the fault of the Bidder.
    b. The Bidder shall be paid on the basis of the number of 
Construction Units actually installed at the direction of the Owner 
shown by the inventory based on the staking sheets or structure 
lists; Provided, however, that the total cost shall not exceed the 
maximum Contract price for the construction of the Project as set 
forth in the Acceptance, unless such excess shall have been approved 
in writing by the Administrator.
    c. Notwithstanding the provisions of Section 1a above, the 
Bidder may, by giving written notice thereof to the Owner, elect to 
receive payment in full for any Section of the Project upon:
    (1) completion of construction of such Section as certified by 
the Engineer and approved by the Owner and the Administrator;
    (2) submission to the Owner and the Administrator of the 
releases of lien and the certificate referred to in Section 2 
hereof;
    (3) approval by the Owner and the Administrator of the inventory 
in respect of such section; and
    (4) submission to the Owner and the Administrator of the consent 
in writing by the Surety or Sureties, if any, on the Contractor's 
Bond to payment in full for such Section prior to Completion of the 
Project.
    If no sections are designated in Article II, section 1c, the 
term Section shall mean for purposes of this subsection c and 
Article IV, Section 3b only, a part of the Project as designated by 
the Owner which represents at least twenty-five percent (25%) of the 
maximum Contract price as stated in Article III, Section 1, and 
which is capable of being energized and operated by the Owner.
    d. Interest at the rate of ________ percent4 (________%) 
per annum shall be paid by the Owner to the Bidder on all unpaid 
balances due on monthly estimates, commencing fifteen (15) days 
after the due date; provided the delay in payment beyond the due 
date is not caused by any condition within the control of the 
Bidder. The due date for purposes of such monthly payment shall be 
the fifteenth day of each calendar month provided (1) the Bidder on 
or before the fifth day of such month shall have submitted its 
certification of Construction Units completed during the preceding 
month and (2) the Owner on or before the fifteenth day of such month 
shall have approved such certification. If, for reasons not due to 
the Bidder's fault, such approval shall not have been given on or 
before the fifteenth day of such month, the due date for purposes of 
this subsection d shall be the fifteenth day of such month 
notwithstanding the absence of the approval of the certification.
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    \4\The Owner shall insert a rate equal to the lowest ``Prime 
Rate'' listed in the ``Money Rates'' section of the Wall Street 
Journal on the date such invitation to bid is issued.
---------------------------------------------------------------------------

    e. Interest at the rate of ________ percent5 (________%) 
per annum shall be paid by the Owner to the Bidder on the final 
payment for the Project or any completed Section thereof, commencing 
fifteen (15) days after the due date. The due date for purposes of 
such final payment shall be the date of approval by the 
Administrator of all of the documents requiring such approval, as a 
condition precedent to the making of final payment, or ninety (90) 
days after the date of Completion of Construction of the Project, as 
specified in the Certificate of Completion, whichever date is 
earlier.
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    \5\See Footnnote 4.
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    f. No payment shall be due while the Bidder is in default in 
respect of any of the provisions of this Contract and the Owner may 
withhold from the Bidder the amount of any claim by a third party 
against either the Bidder or the Owner based upon an alleged failure 
of the Bidder to perform the work hereunder in accordance with the 
provisions of this Contract.
    Section 2. Release of Liens and Certificate of Contractor. (See 
sample REA Form 224, Waiver and Release of Lien and sample REA Form 
231, Certificate of Contractor.) Upon the completion by the Bidder 
of the Project (or any Section thereof if the Bidder shall elect to 
receive payment in full for any Section when completed as provided 
above) but prior to final payment to the Bidder, the Bidder shall 
deliver to the Owner, in duplicate, releases of all liens and of 
rights to claim any lien, in the form attached hereto from all 
manufacturers, materialmen, and subcontractors furnishing services 
or materials for the Project or such Section and a certificate in 
the form attached hereto to the effect that all labor used on or for 
the Project or such Section has been paid and that all such releases 
have been submitted to the Owner for approval.
    Section 3. Payments to Materialmen and Subcontractors. The 
Bidder shall pay each materialman, and each subcontractor, if any, 
within five (5) days after receipt of any payment from the Owner, 
the amount thereof allowed the Bidder for and on account of 
materials furnished or construction performed by each materialman or 
each subcontractor.

ARTICLE IV--PARTICULAR UNDERTAKINGS OF THE BIDDER

    Section 1. Protection to Persons and Property. The Bidder shall 
at all times take all reasonable precautions for the safety of 
employees on the work and of the public, and shall comply with all 
applicable provisions of Federal, State, and Municipal safety laws 
and building and construction codes, as well as the safety rules and 
regulations of the Owner. All machinery and equipment and other 
physical hazards shall be guarded in accordance with the ``Manual of 
Accident Prevention in Construction'' of the Associated General 
Contractors of America unless such instructions are incompatible 
with Federal, State, or Municipal laws or regulations.
    The following provisions shall not limit the generality of the 
above requirements.
    a. The Bidder shall at no time and under no circumstances cause 
or permit any employee of the Bidder to perform any work upon 
energized lines, or upon poles carrying energized lines, unless 
otherwise specified in the Notice and Instructions to Bidders.
    b. The Bidder shall so conduct the construction of the Project 
as to cause the least possible obstruction of public highways.
    c. The Bidder shall provide and maintain all such guard lights 
and other protection for the public as may be required by applicable 
statutes, ordinances and regulations or by local conditions.
    d. The Bidder shall do all things necessary or expedient to 
properly protect any and all parallel, converging and intersecting 
lines, joint line poles, highways and any and all property of others 
from damage, and in the event that any such parallel, converging and 
intersecting lines, joint line poles, highways or other property are 
damaged in the course of the construction of the Project the Bidder 
shall at its own expense restore any or all of such damaged property 
immediately to as good a state as before such damage occurred.
    e. Where the right-of-way of the Project traverses cultivated 
lands, the Bidder shall limit the movement of its crews and 
equipment so as to cause as little damage as possible to crops, 
orchards or property and shall endeavor to avoid marring the lands. 
All fences which are necessarily opened or moved during the 
construction of the Project shall be replaced in as good condition 
as they were found and precautions shall be taken to prevent the 
escape of livestock. The Bidder shall not be responsible for loss of 
or damage to crops, orchards or property (other than livestock) on 
the right-of-way necessarily incident to the construction of the 
Project and not caused by negligence or inefficient operation of the 
Bidder. The Bidder shall be responsible for all other loss of or 
damage to crops, orchards, or property, whether on or off the right-
of-way, and for all loss of or damage to livestock caused by the 
construction of the Project. The right-of-way for purposes of this 
said section shall consist of an area extending ________ feet on 
both sides of the center line of the poles along the route of the 
Project lines, plus such area reasonably required by the Bidder for 
access to the route of the Project lines from Public roads to carry 
on construction activities.
    f. The Project, from the commencement of work to completion, or 
to such earlier date or dates when the Owner may take possession and 
control in whole or in part as hereinafter provided shall be under 
the charge and control of the Bidder and during such period of 
control by the Bidder all risks in connection with the construction 
of the Project and the materials to be used therein shall be borne 
by the Bidder. The Bidder shall make good and fully repair all 
injuries and damages to the Project or any portion thereof under the 
control of the Bidder by reason of any Act of God or other casualty 
or cause whether or not the same shall have occurred by reason of 
the Bidder's negligence.
    (i) To the maximum extent permitted by law, Bidder shall defend, 
indemnify, and hold harmless Owner and Owner's directors, officers, 
and employees from all claims, causes of action, losses, 
liabilities, and expenses (including reasonable attorney's fees) for 
personal loss, injury, or death to persons (including but not 
limited to Bidder's employees) and loss, damage to or destruction of 
Owner's property or the property of any other person or entity 
(including but not limited to Bidder's property) in any manner 
arising out of or connected with the Contract, or the materials or 
equipment supplied or services performed by Bidder, its 
subcontractors and suppliers of any tier. But nothing herein shall 
be construed as making Bidder liable for any injury, death, loss, 
damage, or destruction caused by the sole negligence of Owner.
    (ii) To the maximum extent permitted by law, Bidder shall 
defend, indemnify, and hold harmless Owner and Owner's directors, 
officers, and employees from all liens and claims filed or asserted 
against Owner, its directors, officers, and employees, or Owner's 
property or facilities, for services performed or materials or 
equipment furnished by Bidder, its subcontractors and suppliers of 
any tier, and from all losses, demands, and causes of action arising 
out of any such lien or claim. Bidder shall promptly discharge or 
remove any such lien or claim by bonding, payment, or otherwise and 
shall notify Owner promptly when it has done so. If Bidder does not 
cause such lien or claim to be discharged or released by payment, 
bonding, or otherwise, Owner shall have the right (but shall not be 
obligated) to pay all sums necessary to obtain any such discharge or 
release and to deduct all amounts so paid from the amount due 
Bidder.
    (iii) Bidder shall provide to Owner's satisfaction evidence of 
Bidder's ability to comply with the indemnification provisions of 
subparagraphs i and ii above, which evidence may include but may not 
be limited to a bond or liability insurance policy obtained for this 
purpose through a licensed surety or insurance company.
    g. Any and all excess earth, rock, debris, underbrush and other 
useless material shall be removed by the Bidder from the site of the 
Project as rapidly as practicable as the work progresses.
    h. Upon violation by the Bidder of any of the provisions of this 
Section, after written notice of such violation given to the Bidder 
by the Engineer or the Owner, the Bidder shall immediately correct 
such violation. Upon failure of the Bidder so to do the Owner may 
correct such violation at the Bidder's expense:
    Provided, however, that the Owner may, if it deems it necessary 
or advisable, correct such violation at the Bidder's expense without 
such prior notice to the Bidder.
    i. The Bidder shall submit to the Owner monthly reports in 
duplicate of all accidents, giving such data as may be prescribed by 
the Owner.
    j. The Bidder shall not proceed with the cutting of trees or 
clearing of right-of-way without written notification from the owner 
that proper authorization has been received from the owner of the 
property, and the Bidder shall promptly notify the Owner whenever 
any landowner objects to the trimming or felling of any trees or the 
performance of any other work on its land in connection with the 
Project and shall obtain the consent in writing of the Owner before 
proceeding in any such case.
    Section 2. Insurance. The Bidder shall take out and maintain 
throughout the period of this Agreement the following types and 
minimum amounts of insurance:
    a. Workers' compensation and employers' liability insurance as 
required by law, covering all their employees who perform any of the 
obligations of the contractor, engineer, and architect under the 
contract. If any employer or employee is not subject to the workers' 
compensation laws of the governing state, then insurance shall be 
obtained voluntarily to extend to the employer and employee coverage 
to the same extent as though the employer or employee were subject 
to the workers' compensation laws.
    b. Public liability insurance covering all operations under the 
contract shall have limits for bodily injury or death of not less 
than $1 million each occurrence, limits for property damage of not 
less than $1 million for each occurrence, and $1 million aggregate 
for accidents during the policy period. A single limit of $1 million 
of bodily injury and property damage is acceptable. This required 
insurance may be in a policy or polices of insurance, primary and 
excess including umbrella or catastrophe form.
    c. Automobile liability insurance on all motor vehicles used in 
connection with the contract, whether owned, nonowned, or hired, 
shall have limits for bodily injury or death of not less than $1 
million per person and $1 million for each occurrence, and property 
damage limits of $1 million for each occurrence. This required 
insurance may be in a policy or policies of insurance, primary and 
excess including the umbrella or catastrophe form.
    The Owner shall have the right at any time to require public 
liability insurance and property damage liability insurance greater 
than those required in subsection ``b'' and ``c'' of this Section. 
In any such event, the additional premium or premiums payable solely 
as the result of such additional insurance shall be added to the 
Contract price.
    The policies of insurance shall be in such form and issued by 
such insurer as shall be satisfactory to the Owner. The Bidder shall 
furnish the Owner a certificate evidencing compliance with the 
foregoing requirements which shall provide not less than (30) days 
prior written notice to the Owner of any cancellation or material 
change in the insurance.
    Section 3. Delivery of Possession and Control to Owner.
    a. Upon written request of the Owner the Bidder shall deliver to 
the Owner full possession and control of any portion of the Project 
provided the Bidder shall have been paid at least ninety percent 
(90%) of the cost of construction of such portion. Upon such 
delivery of the possession and control of any portion of the Project 
to the Owner, the risk and obligations of the Bidder as set forth in 
Article IV, Section 1f hereof with respect to such portion of the 
Project so delivered to the Owner shall be terminated: Provided, 
however, that nothing herein contained shall relieve the Bidder of 
any liability with respect to defective materials and workmanship as 
contained in Article II, Section 6 hereof.
    b. Where the construction of a Section as hereinbefore defined 
in Article II, Section 1c and Article III, Section 1c shall have 
been completed by the Bidder, the Owner agrees, after receipt of a 
written request from the Bidder, to accept delivery of possession 
and control of such Section upon the issuance by the Engineer of a 
written statement that the Section has been inspected and found 
acceptable by the Engineer. Upon such delivery of the possession and 
control of any such Section to the Owner, the risk and obligations 
of the Bidder as set forth in Article IV, Section 1f hereof with 
respect to such Section so delivered to the Owner shall be 
terminated: Provided, however, that nothing herein contained shall 
relieve the Bidder of any liability with respect to defective 
materials or workmanship as contained in Article II, Section 6 
hereof.
    Section 4. Energizing the Project.
    a. Prior to Completion of the Project the Owner, upon written 
notice to the Bidder, may test the construction thereof by 
temporarily energizing any portion or portions thereof. During the 
period of such test the portion or portions of the Project so 
energized shall be considered as within the possession and control 
of the Owner and governed by the provisions of Section 3 of this 
Article. Upon written notice to the Bidder by the Owner of the 
completion of such test and upon deenergizing the lines involved 
therein said portion, or portions of the Project shall be considered 
as returned to the possession and control of the Bidder unless the 
Owner shall elect to continue possession and control in the manner 
provided in Section 3 of this Article.
    b. The Owner shall have the right to energize permanently any 
portion or portions of the Project delivered to its possession and 
control pursuant to the provisions of Section 3 of this Article.
    Section 5. Assignment of Guarantees. All guarantees of materials 
and workmanship running in favor of the Bidder shall be transferred 
and assigned to the Owner prior to the time the Bidder receives 
final payment.

ARTICLE V--REMEDIES

    Section 1. Completion on Bidder's Default. If default shall be 
made by the Bidder or by any subcontractor in the performance of any 
of the terms of this Proposal, the Owner, without in any manner 
limiting its legal and equitable remedies in the circumstances, may 
serve upon the Bidder and the Surety or Sureties, if any, upon the 
Contractor's Bond or Bonds a written notice requiring the Bidder to 
cause such default to be corrected forthwith. Unless within twenty 
(20) days after the service of such notice upon the Bidder such 
default shall be corrected or arrangements for the correction 
thereof satisfactory to both the Owner and the Administrator shall 
be made by the Bidder or its Surety or Sureties, if any, the Owner 
may take over the construction of the Project and prosecute the same 
to completion by Contract or otherwise for the account and at the 
expense of the Bidder, and the Bidder and its Surety or Sureties, if 
any, shall be liable to the Owner for any cost or expense in excess 
of the Contract price occasioned thereby. In such event the Owner 
may take possession of and utilize, in completing the construction 
of the Project, any materials, tools, supplies, equipment, 
appliances, and plant belonging to the Bidder or any of its 
subcontractors, which may be situated at the site of the Project. 
The Owner in such contingency may exercise any rights, claims or 
demands which the Bidder may have against third persons in 
connection with this Contract and for such purpose the Bidder does 
hereby assign, transfer and set over unto the Owner all such rights, 
claims and demands.
    Section 2. Liquidated Damages. The time of the Completion of 
Construction of the Project is of the essence of the Contract. 
Should the Bidder neglect, refuse or fail to complete the 
construction within the time herein agreed upon, after giving effect 
to extensions of time, if any, herein provided, then, in that event 
and in view of the difficulty of estimating with exactness damages 
caused by such delay, the Owner shall have the right to deduct from 
and retain out of such moneys which may be then due, or which may 
become due and payable to the Bidder the sum of ________ dollars 
(________) per day for each and every day that such construction is 
delayed in its completion beyond the specified time, as liquidated 
damages and not as a penalty; if the amount due and to become due 
from the Owner to the Bidder is insufficient to pay in full any such 
liquidated damages, the Bidder shall pay to the Owner the amount 
necessary to effect such payment in full; Provided, however, that 
the Owner shall promptly notify the Bidder in writing of the manner 
in which the amount retained, deducted or claimed as liquidated 
damages was computed.
    Section 3. Cumulative Remedies. Every right or remedy herein 
conferred upon or reserved to the Owner or the Government or the 
Administrator shall be cumulative, shall be in addition to every 
right and remedy now or hereafter existing at law or in equity or by 
statute and the pursuit of any right or remedy shall not be 
construed as an election: Provided, however, that the provisions of 
Section 2 of this Article shall be the exclusive measure of damages 
for failure by the Bidder to complete the construction of the 
Project within the time herein agreed upon.

ARTICLE VI--MISCELLANEOUS

    Section 1. Definitions.
    a. The term Administrator shall mean the Administrator of the 
Rural Electrification Administration of the United States of America 
and his duly authorized representatives or any other person in whom 
or authority in which may be vested the duties and functions which 
the Administrator is now authorized by law to perform.
    b. The term Engineer shall mean the engineer employed by the 
Owner, with the approval of the Administrator, to provide 
engineering services for the Project and said Engineer's duly 
authorized assistants and representatives.
    c. The term Supervisor shall mean the person, if any, appointed 
by the Administrator as the representative of the Government under 
the provisions of the Loan Contract providing for such appointment 
in special cases. The term is limited to such special representative 
of the Government, if any, who is responsible exclusively to the 
Administrator and does not refer to the Manager or any other person 
employed by the Owner and responsible to it.
    d. The term Project shall mean the rural electric system, or 
portion thereof, described in the Plans and Specifications, 
Construction Drawings and maps attached hereto.
    e. The term Completion of Construction shall mean full 
performance by the Bidder of the Bidder's obligations under the 
Contract and all amendments and revisions thereof except the 
Bidder's obligations in respect of (1) Releases of Liens and 
Certificate of Contractor under Article III, section 2 hereof, (2) 
the inventory referred to in Article III, section 1 hereof, and (3) 
other final documents. The term Completion of the Project shall mean 
full performance by the Bidder of the Bidder's obligations under the 
Contract and all amendments and revisions thereof. The Certificate 
of Completion, signed by the Engineer and approved in writing by the 
Owner and the Administrator, shall be the sole and conclusive 
evidence as to the date of Completion of Construction and as to the 
fact of Completion of the Project.
    Section 2. Materials and Supplies. In the performance of this 
contract there shall be furnished only such unmanufactured articles, 
materials, and supplies as have been mined or produced in the United 
States, Mexico, or Canada, and only such manufactured articles, 
materials, and supplies as have been manufactured in the United 
States substantially all from articles, materials, or supplies 
mined, produced or manufactured, as the case may be, in the United 
States, Mexico, or Canada; provided that other articles, materials, 
or supplies may be used in the event and to the extent that the 
Administrator shall expressly in writing authorize such use pursuant 
to the provisions of the Rural Electrification Act of 1938, being 
Title IV of Public Resolution No. 122, 75th Congress, approved June 
21, 1938. The Seller agrees to submit to the Purchaser such 
certificates with respect to compliance with the foregoing provision 
as the Administrator from time to time may require.
    Section 3. Patent Infringement. The Bidder shall save harmless 
and indemnify the Owner from any and all claims, suits and 
proceedings for the infringement of any patent or patents covering 
any materials or equipment used in construction of the Project.
    Section 4. Permits for Explosives. All permits necessary for the 
handling or use of dynamite or other explosives in connection with 
the construction of the Project shall be obtained by and at the 
expense of the Bidder.
    Section 5. Compliance with Statutes and Regulations. The Bidder 
shall comply with all applicable statutes, ordinances, rules and 
regulations pertaining to the work. The Bidder acknowledges that it 
is familiar with the Rural Electrification Act of 1936, as amended, 
the so-called Kick-Back Statute thereto, and 18 U.S.C. Secs. 287, 
1001, as amended. The Bidder understands that the obligations of the 
parties hereunder are subject to the applicable regulations and 
orders of Governmental Agencies having jurisdiction in the premises.
    Section 6. Equal Opportunity Provisions.
    a. Bidder's Representations.
    The Bidder represents that:
    It has ________, does not have ________, 100 or more employees, 
and if it has, that it has ________, has not ________, furnished the 
Equal Employment Opportunity-Employers Information Report EEO-1, 
Standard Form 100, required of employers with 100 or more employees 
pursuant to Executive Order 11246 and Title VII of the Civil Rights 
Act of 1964.
    The Bidder agrees that it will obtain, prior to the award of any 
subcontract for more than $10,000 hereunder to a subcontractor with 
100 or more employees, a statement, signed by the proposed 
subcontractor, that the proposed subcontractor has filed a current 
report on Standard Form 100.
    The Bidder agrees that if it has 100 or more employees and has 
not submitted a report on Standard Form 100 for the current 
reporting year and that if this Contract will amount to more than 
$10,000, the Bidder will file such report, as required by law, and 
notify the owner in writing of such filing prior to the Owner's 
acceptance of this Proposal.
    b. Equal Opportunity Clause. During the performance of this 
Contract, the Bidder agrees as follows:
    (1) The Bidder will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex or 
national origin. The Bidder will take affirmative action to ensure 
that applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex or 
national origin. Such action shall include, but not be limited to, 
the following: Employment, upgrading, demotions or transfer; 
recruitment or recruitment advertising; layoff or termination; rates 
of pay or other forms of compensation; and selection of training, 
including apprenticeship. The Bidder agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided setting forth the provisions of this Equal 
Opportunity Clause.
    (2) The Bidder will, in all solicitations or advertisements for 
employees placed by or on behalf of the Bidder, state that all 
qualified applicants will receive consideration for employment 
without regard to race, color, religion, sex or national origin.
    (3) The Bidder will send to each labor union or representative 
of workers, with which it has a collective bargaining agreement or 
other contract or understanding, a notice to be provided advising 
the said labor union or workers' representative of the Bidder's 
commitments under this section, and shall post copies of the notice 
in conspicuous places available to employees and applicants for 
employment.
    (4) The Bidder will comply with all provisions of Executive 
Order 11246 of September 24, 1965, and the rules, regulations and 
relevant orders of the Secretary of Labor.
    (5) The Bidder will furnish all information and reports required 
by Executive Order 11246 of September 24, 1965, and by rules, 
regulations, and orders of the Secretary of Labor, or pursuant 
thereto, and will permit access to its books, records, and accounts 
by the administering agency and the Secretary of Labor for purposes 
of investigation to ascertain compliance with such rules, 
regulations, and orders.
    (6) In the event of the Bidder's noncompliance with the Equal 
Opportunity Clause of this Contract or with any of the said rules, 
regulations, or orders, this Contract may be canceled, terminated, 
or suspended in whole or in part, and the Bidder may be declared 
ineligible for further Government contracts or federally assisted 
construction contracts in accordance with procedures authorized in 
Executive Order 11246 of September 24, 1965, and such other 
sanctions may be imposed and remedies invoked as provided in 
Executive Order 11246 of September 24, 1965, or by rule, regulation, 
or order of the Secretary of Labor, or as provided by law.
    (7) The Bidder will include this Equal Opportunity Clause in 
every subcontract or purchase order unless exempted by the rules, 
regulations, or order of the Secretary of Labor issued pursuant to 
section 204 of Executive Order 11246 of September 24, 1965, so that 
such provisions will be binding upon each subcontractor or vendor. 
The Bidder will take such action with respect to any subcontract or 
purchase order as the administering agency may direct as a means of 
enforcing such provisions, including sanctions for noncompliance; 
Provided, however, that in the event Bidder becomes involved in, or 
is threatened with, litigation with a subcontractor or vendor as a 
result of such direction by the administering agency, the Bidder may 
request the United States to enter into such litigation to protect 
the interests of the United States.
    c. Certificate of Nonsegregated Facilities. The Bidder certifies 
that it does not maintain or provide for its employees any 
segregated facilities at any of its establishments, and that it does 
not permit its employees to perform their services at any location, 
under its control, where segregated facilities are maintained. The 
Bidder certifies further that it will not maintain or provide for 
its employees any segregated facilities at any of its 
establishments, and that it will not permit its employees to perform 
their services at any location, under its control, where segregated 
facilities are maintained. The Bidder agrees that a breach of this 
certification is a violation of the Equal Opportunity Clause in this 
Contract. As used in this certification, the term ``segregated 
facilities'' means any waiting rooms, work areas, restrooms and 
washrooms, restaurants and other eating areas, timeclocks, locker 
rooms and other storage or dressing areas, parking lots, drinking 
fountains, recreation or entertainment areas, transportation, and 
housing facilities provided for employees which are segregated by 
explicit directive or are in fact segregated on the basis of race, 
color, religion, or national origin, because of habit, local custom, 
or otherwise. The Bidder agrees that (except where it has obtained 
identical certifications from proposed subcontractors for specific 
time periods) it will obtain identical certifications from proposed 
subcontractors prior to the award of subcontracts exceeding $10,000 
which are not exempt from the provisions of the Equal Opportunity 
Clause, and that it will retain such certifications in its files.
    Section 7. Franchises and Rights-of-Way. The Bidder shall be 
under no obligation to obtain or assist in obtaining: Any 
franchises, authorizations, permits or approvals required to be 
obtained by the Owner from Federal, State, County, Municipal or 
other authorities; any rights-of-way over private lands; or any 
agreements between the Owner and third parties with respect to the 
joint use of poles, crossings, or other matter incident to the 
construction and operation of the Project.
    Section 8. Nonassignment of Contract. The Bidder shall perform 
directly and without subcontracting not less than twenty-five per 
centum (25%) of the construction of the Project, to be calculated on 
the basis of the total Contract price. The Bidder shall not assign 
the Contract effected by an acceptance of this Proposal or any 
interest in any funds that may be due or become due hereunder or 
enter into any contract with any person, firm or corporation for the 
performance of the Bidder's obligations hereunder or any part 
thereof, without the approval in writing of the Owner and of the 
Surety or Sureties, if any, on any bond furnished by the Bidder for 
the faithful performance of the Bidder's obligations hereunder. If 
the Bidder, with the consent of the Owner and any Surety or Sureties 
on the Contractor's Bond or Bonds, shall enter into a subcontract 
with any subcontractor for the performance of any part of this 
Contract, the Bidder shall be as fully responsible to the Owner and 
the Government for the acts and omissions of such subcontractor and 
of persons employed by such subcontractor as the Bidder would be for 
its own acts and omissions and those of persons directly employed by 
it.
    Section 9. Extension to Successors and Assigns. Each and all of 
the covenants and agreements herein contained shall extend to and be 
binding upon the successors and assigns of the parties hereto.
    Section 10. Contractor. Upon acceptance of this Proposal, the 
successful Bidder shall be the Contractor and all references in the 
Proposal to the Bidder shall apply to the Contractor.
    Section 11. Approval by the Administrator. No acceptance of this 
Proposal shall become effective until approval in writing of the 
Administrator: Provided, however, that no obligations shall arise 
hereunder unless such approval is given within forty-five (45) days 
from the date of acceptance by the Owner.

________  (Bidder)
By ________  (President)
________  (Address)
Attest: ________  (Secretary)
Date ________ 
    The Proposal must be signed with the full name of the Bidder. If 
the Bidder is a partnership, the Proposal must be signed in the 
partnership name by a partner. If the Bidder is a corporation, the 
Proposal must be signed in the corporate name by a duly authorized 
officer and the corporate seal affixed and attested by the Secretary 
of the Corporation.

Transmission Construction Units

Section 1--Pole Units

    A pole unit consists of one pole in place. It does not include 
pole-top assembly unit or other parts attached to the pole. The 
first two digits indicate the length of the pole; the third digit 
shows the classification per A.S.A. (Example: 45-3 means a pole 45 
feet long, class 3.)

Species of Timber: ________ 

Kind of Preservative: (Check one)

    1. Creosote ____; 2. Pentachlorophenol ____; 3. Copper 
Naphthenate ____; 4. Waterborne preservative--CCA ____ ACZA ____

Method of Treatment: (Check one)

    1. Pressure ____; 2. Thermal process: ____

Pole Plan Under Which the Poles are to be Furnished: (Check one)

    1. Insured Warranted ____; 2. Independently Inspected ____; 3. 
Quality Assured ____; 4. Either Insured Warranted, Independently 
Inspected, or Quality Assured ____

(Engineer to complete above) 

----------------------------------------------------------------------------------------------------------------
                                              Unit price                                                        
   Unit No.      Number of units  -----------------------------------     Labor and       Extended price-- labor
                                       Labor           Materials          materials           and materials     
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------

Total, Section 1-- ________ 

Section 2--Pole-Top Assembly Units

    A pole-top assembly unit consists of the hardware, crossarms and 
their appurtenances, insulators, etc., except tie wire, required to 
support the power conductors and overhead ground wire. It does not 
include the pole, the downlead, and butt coil, which are separate 
units.

----------------------------------------------------------------------------------------------------------------
                                                     Unit price                                                 
                              ---------------------------------------------------------  Extended price-- labor 
Unit No.    Number of units                                              Labor and           and materials      
                                    Labor           Materials           materials                               
----------------------------------------------------------------------------------------------------------------
TH                                                                                                              
TP                                                                                                              
TS                                                                                                              
TSS                                                                                                             
TSZ                                                                                                             
TUS-1                                                                                                           
TUS-2                                                                                                           
----------------------------------------------------------------------------------------------------------------

Total, Section 2-------------------------------------------------------

Section 3--Conductor Assembly Units

    A conductor assembly unit consists of 1,000 feet of a single 
conductor or overhead ground wire, and includes tie wire, sleeves 
for splicing, and armor rods with clips or armor wire where 
necessary. The length of conductor or overhead ground wire shall be 
determined by taking the sum of all straight horizontal span 
distances between pole stakes or from center to center of the poles 
carrying the conductors. The conductor sizes and types listed are 
the manufacturer's designation.

________  Tension Stringing (Engineer check when required.) 

----------------------------------------------------------------------------------------------------------------
                                                        Unit price                                              
                                  ------------------------------------------------------  Extended price--labor 
   Unit No.      Number of units                                          Labor and           and materials     
                                       Labor           Materials          materials                             
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------

Total, Section 3-- ________ 

    As provided for in the specifications, prior to beginning of 
work the Bidder will furnish the Engineer the following data on 
tension equipment:

Diameter Bull Wheel ________  in.
Diameter Groove ________ in.
Conductor Bending Radius ________ in.
Thickness of Neoprene at Bottom of Groove ________ in.
Stringing Sheave Diameter; Tangent -------- in., Large Angle ------
-- in.

Section 4--Guy Assembly Units

    A guy assembly unit consists of the hardware and wire. Guy 
guards are designated separately. 

----------------------------------------------------------------------------------------------------------------
                                                     Unit price                                                 
                              ---------------------------------------------------------   Extended price--labor 
Unit No.    Number of units                                              Labor and           and materials      
                                    Labor           Materials           materials                               
----------------------------------------------------------------------------------------------------------------
TG-1                                                                                                            
TG-2                                                                                                            
TG-3                                                                                                            
TG-4                                                                                                            
TG-5                                                                                                            
----------------------------------------------------------------------------------------------------------------

Total, Section 4-- ________

Section 5--Anchor Assembly Units

    An anchor assembly unit consists of the anchor with rod or rods, 
complete, ready for attaching the guy wire. 

----------------------------------------------------------------------------------------------------------------
                                                       Unit price                                               
                                --------------------------------------------------------  Extended price-- labor
  Unit No.     Number of units                                            Labor and           and materials     
                                      Labor           Materials           materials                             
----------------------------------------------------------------------------------------------------------------
TA-1-5                                                                                                          
TA-1-8                                                                                                          
TA-3                                                                                                            
----------------------------------------------------------------------------------------------------------------

Total, Section 5-- ________

Section 6--Miscellaneous Assembly Units

    A miscellaneous assembly unit consists of an additional unit 
needed in the Project for line construction but not otherwise listed 
in the Proposal. 

----------------------------------------------------------------------------------------------------------------
                                                      Unit price                                                
                              ---------------------------------------------------------   Extended price--labor 
Unit No.     Number of units                                             Labor and           and materials      
                                    Labor           Materials            materials                              
----------------------------------------------------------------------------------------------------------------
TM                                                                                                              
----------------------------------------------------------------------------------------------------------------

Total, Section 6-- ________

Section 7--Right-of-Way Clearing Units

    TM-12. The unit is 1,000 feet in length and ________ (________) 
feet in width (to be measured ________ (________) feet on one side 
of pole line or centerline of structures) of actual clearing of 
right-of-way. This includes clearing of underbrush, tree removal, 
and such tree trimming as is required so that the right-of-way, 
except for tree stumps which shall not exceed ________ in height, 
shall be clear from the ground up on one side of the line of poles 
carrying conductors (See Detail A, Drawing TM-12-2A.) The length of 
actual clearing shall be measured in a straight line, parallel to 
the horizontal line between poles or centerline of structures and 
across the maximum dimension of foliage cleared projected to the 
ground line (See Detail B, Drawing TM-12-2A.) All trees and 
underbrush across the width of the right-of-way shall be considered 
to be grouped together as a single length in measuring the total 
length of clearing (See Detail C, Drawing TM-12-2A.) Spaces along 
the right-of-way in which no trees are to be removed or trimmed or 
underbrush cleared shall be omitted from the total measurement. All 
lengths thus arrived at, added together and divided by 1,000 shall 
give the number of TM-12 units of clearing. The Bidder shall not 
remove or trim shade, fruit, or ornamental trees unless so directed 
by the Engineer in writing.
    TM-12 (1). This unit is identical with TM-12, except the full 
width of the right-of-way to be cleared shall be ________ (________) 
feet wide (to be measured ________ (________) feet on each side of 
the pole line or centerline of structures) (See Detail D, Drawing 
TM-12-2A.)
    TM-13. The unit, for purpose of quoting, is 1,000 feet in length 
of clearing off the right-of-way. The Engineer will select those 
trees off the right-of-way that he deems to be a hazard to the line 
and will designate them to the Bidder in writing as danger trees. 
When so designated, the Bidder shall remove or top such trees at his 
option except that the Bidder shall trim and not remove shade, fruit 
or ornamental trees unless otherwise directed by the Engineer in 
writing (See Drawings TM-12-2A and TM-13 for examples of danger 
trees.)
    The measurement of length of right-of-way to be cleared shall be 
considered as a straight line parallel to the horizontal line 
between poles or centerline of structures, such measurement of 
length to be based on maximum dimension of foliage (not trunk) 
projected to the ground line (See Details E, F, G and H, Drawing TM-
12-2A.) Dead trees having no foliage shall be measured across the 
maximum dimension and multiplied by two. (See Detail F, Drawing TM-
12-2A.) Each tree so removed shall be added together to determine 
the total length of clearing. All lengths thus arrived at, added 
together and divided by 1,000 shall give the number of TM-13 units 
(Example: Details E, F, G and H, Drawing TM-12-2A, total 0.10 of a 
TM-13 unit.)
    TMC-12, TMC-12 (1). These units are identical to the respective 
TM units except that chemical treatment of stumps is required in 
addition to the clearing of underbrush, tree removal and tree 
trimming.
    TM-14. The unit is 1,000 feet in length and ________ (________) 
feet in width (to be measured feet on one side of right-of-way 
center line) of actual clearing of right-of-way. Trees and 
underbrush should be cleared from the ground up within 10 feet of 
any structure location. The Engineer will mark the trees and brush 
to be cleared to provide ``undulating'' boundaries. Low growing 
trees and brush are to be left in the right-of-way to the extent it 
will not be hazardous to the line or will not interfere with the 
service road. The length of actual clearing shall be measured in a 
straight line parallel to the horizontal line between poles or 
center line of structures and across the maximum dimension of 
foliage cleared projected to the ground line (See Detail B, Drawing 
TM-12-2A.) All trees and underbrush cleared across the right-of-way 
shall be considered to be grouped together as a single length in 
measuring the total length of clearing (See Detail C, Drawing TM-12-
2A.) Spaces along the right-of-way in which no trees are to be 
removed or trimmed or underbrush cleared shall be omitted from the 
total measurement.
    TM-14 (1). This unit is identical with TM-14 except the full 
width of the right-of-way to be cleared shall be ________ (________) 
feet wide (See Detail D, Drawing TM-12-2A).
    TM-15. The unit is 1,000 feet in length and ________ feet in 
width (to be measured ________ (________) feet on one side of the 
right-of-way center line) of actual clearing of the right-of-way. 
Trees and underbrush should be cleared from ground up within 10 feet 
of any structure location. The Engineer will mark the trees and 
brush to be cleared to provide a ``feathered'' appearance in the 
right-of-way. Low growing trees and brush are to be left in the 
right-of-way to the extent it will not be hazardous to the line or 
will not interfere with the service road.
    The length of actual clearing shall be measured in a straight 
line parallel to the horizontal line between poles or center line of 
structures and across the maximum dimension of foliage cleared 
projected to ground line (See Detail B, Drawing TM-12-2A). All trees 
and underbrush cleared across the right-of-way shall be considered 
to be grouped together as a single length in measuring the total 
length of clearing (See Detail C, Drawing TM-12-2A). Spaces along 
the right-of-way in which no trees are to be removed or trimmed or 
underbrush cleared shall be omitted from the total measurement.
    TM-15 (1). This unit is identical to TM-15 except the full width 
of the right-of-way, to be cleared shall be ________ (________) feet 
wide (See Detail D, Drawing TM-12-2A).
    Additional Requirements. (When specifying TM units denote type 
of disposal A or B).
    A. Trees, brush, branches and refuse shall, without delay, be 
disposed of by such of the following methods as the Engineer will 
direct (Engineer to strike out methods not to be used).

1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (Describe) ________
    B. Trees that are felled shall be cut to commercial wood 
lengths, stacked neatly, and left on the right-of-way for the 
landowner. Commercial wood length means the length designated by the 
Engineer but in no case shall it be required to be less than 
________ (________) feet. Brush, branches and refuse shall, without 
delay, be disposed of by such of the following methods as the 
Engineer will direct (Engineer to strike out methods not to be 
used).

1. Burned
2. Piled on one side of right-of-way
3. Roller chopped and left on right-of-way in such a manner as not 
to obstruct roads, ditches, drains, etc.
4. Other (Describe) ________ 

                                         Transmission Right-of-Way Unit                                         
----------------------------------------------------------------------------------------------------------------
                                                        Unit price                                              
                                  ------------------------------------------------------  Extended price--Labor 
   Unit No.       Number of units                                         Labor and           and materials     
                                        Labor          Materials          materials                             
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------

Total Section 7-- ________

Section 8--Substation Assembly Units

    Description of Construction Units. Each Construction Unit 
consists of a complete installation of the designated portion of a 
substation as specified on the drawings, together with connections 
to associated equipment. Each Construction Unit represents all labor 
and material including necessary accessories completely installed 
and tested in satisfactory operation. Full identification of each 
Construction Unit and all necessary specifications of the 
installation is shown on the drawings.
    Items of material in each Construction Unit shall be of the 
designated size, rating, type, voltage, or other specification in 
accordance with the drawings. The bill of material drawing for each 
substation shows the identification of the Construction Units under 
which the material is to be installed and shows which items of 
material may be partly or entirely found in the lists of owner-
furnished materials.
    All items of equipment, unless otherwise specified, are mounted 
on a structure which shall be a Construction Unit of Group A. Each 
Construction Unit is designated by the letter of the Group to which 
it belongs and an identifying number. The same item of equipment 
carries the same Construction Unit designation in all the 
substations. Items of equipment designated by the same Construction 
Unit in one substation are of only one kind as to voltage, type and 
other specifications.
    The tabulation of construction units for each substation is 
separate and contains all units necessary for construction of that 
substation.
    Group A. Structures. A Construction Unit consists of a 
structure, or structures, with bus supports including insulators and 
fittings, buses, conductors and overhead ground wires to adjacent 
structures within the substation, grounding material to connect 
equipment with the ground bus, and associated material including 
mounting brackets, supports for equipment, clamps and connectors, 
all as specified in the drawings.
    Group B. Three-pole group operated air break switches. A 
Construction Unit consists of one 3-pole group operated air break 
switch with all accessories and operating mechanisms as specified in 
the drawings.
    Group C. Lightning arresters. A Construction Unit consists of 
one single-phase lightning arrester.
    Group D. Single pole disconnecting switches. A Construction Unit 
consists of one single pole disconnecting or by-pass switch as 
specified in the drawings. If a fuse disconnect switch is specified, 
the fuse is included with the switch.
    Group E. Oil Circuit Breakers. A Construction Unit consists of 
one complete three-phase power circuit breaker complete with 
supporting frame and control cabinet, unless shown otherwise in the 
drawings, mounted as specified in the drawings.
    Group F. Oil circuit reclosers. A Construction Unit consists of 
a complete single-phase or three-phase oil circuit recloser as 
specified in the drawings.
    Group G. Meters, relays and instrument transformers. A 
Construction Unit consists of one meter, relay, potential 
transformer or current transformer.
    Group H. Transformers. A Construction Unit consists of one power 
transformer or one station service transformer either single-phase 
or three-phase as specified in the drawings.
    Group I. Voltage regulators. A Construction Unit consists of one 
single-phase or three-phase voltage regulator as specified in the 
drawings.
    Group J. Communications and supervisory control equipment. A 
Construction Unit consists of carrier current equipment, microwave, 
or other types of communications and supervisory control equipment 
as specified in the drawings.
    Group K. Conduit and cable. A Construction Unit consists of the 
wire, cable, conduit and accessories necessary to complete the 
installation of equipment in accordance with the specifications and 
drawings, where such installation has not been included in other 
Groups.
    Group L. foundations. A Construction Unit consists of concrete 
footings and foundations except for the fence, as specified in the 
drawings.
    Group M. Site preparation. A Construction Unit consists of 
clearing, grading, drainage work, and surfacing, as specified in the 
drawings.
    Group N. Fence. A Construction Unit consists of the complete 
installation of the fence, gates, etc., as specified in the 
drawings.
    Group O. Station grounding. A Construction Unit consists of the 
complete ground bus including ground rods, grounding mats or 
platforms, except as otherwise provided in other Groups, with 
connections to structures, equipment, and fence as specified in the 
drawings.
    Group P. building. A Construction Unit consists of a control 
building or cabinet, on a foundation of Group L and the facilities 
and equipment installed therein as specified in the drawings, except 
as otherwise provided in other Groups.
    Other Groups. The Engineer shall specify such additional Groups 
as may be necessary for the completion of the Project. Description 
of these Groups shall be provided by an addition to this Section of 
the Specifications for Construction.

________ Station Construction Units
Unit No. ________
Name and Description of Construction Unit ________
No. of Units ________

Unit Prices

    Labor ________
    Materials ________
    Labor and Materials ________
    Extended Price--Labor and Materials ________
    Total Price ________

Proposal Summary

    Recapitulation of Sections:
Section--1 ________ $________
Section--2 ________ $________
Section--3 ________ $________
Section--4 ________ $________
Section--5 ________ $________
Section--6 ________ $ ________
Section--7 ________ $ ________
Section--8 ________ $ ________
    Total ________ $ ________

Acceptance

    Subject to the approval of the Administrator, the Owner hereby 
accepts the foregoing Proposal of the Bidder, ________ for the 
construction of the following:
Transmission Construction Units: Sections: ________
The total contract price is $ ________
________ Owner
By ________ President
________ Secretary
________ Date of Contract

[End of Clause]


Secs. 1726.353-1726.399  [Reserved].

Subpart J--Contract Closeout


Sec. 1726.400  Final contract amendment.

    As needed, a final contract amendment will be prepared and 
processed in accordance with Sec. 1726.24(b) prior to or in conjunction 
with the closeout of the contract.


Sec. 1726.401  Material contract closeout.

    This section is applicable to contracts executed on REA Form 173.
    (a) Delivery inspection. The borrower, acting through the engineer, 
will verify that all materials are delivered in proper quantities, in 
good condition, and in compliance with applicable specifications.
    (b) Closeout documents. The borrower, acting through its engineer, 
will obtain from the supplier a ``Buy American'' certificate, REA Form 
213, any manufacturer's guarantee(s) and, if applicable, a copy of REA 
Form 224, Waiver and Release of Lien. Closeout documents for materials 
contracts need not be submitted to REA unless specifically requested by 
REA on a case by case basis.
    (c) Final payment. Upon completion of the actions required under 
paragraphs (a) and (b) of this section, the borrower shall make final 
payment to the supplier in accordance with the provisions of the 
material contract or purchase order.


Sec. 1726.402  Equipment contract closeout.

    This section is applicable to contracts executed on REA Form 198.
    (a) Final inspection and testing of equipment. The borrower, acting 
through its engineer, will perform the final inspection and testing of 
equipment as appropriate for the specific equipment. The borrower, 
acting through its engineer, will schedule such inspection and testing 
at a time mutually agreeable to the borrower, engineer, and the 
supplier or manufacturer. Within thirty (30) days after completion of 
the inspection and testing, the borrower, acting through its engineer, 
will prepare a report of the inspection and testing, obtain a copy of 
the report from the engineer, and submit a copy to the supplier or 
manufacturer. This report must include a detailed description of the 
methods of conducting the test(s), observed data, comparison of 
guaranteed and actual performance, and recommendations concerning 
acceptance. The borrower will obtain from the engineer a written 
certification stating that the equipment has been installed, placed in 
satisfactory operation and tested, and meets the contract requirements. 
Where more than one-hundred and eighty (180) days have elapsed since 
the delivery of the equipment and the equipment has not been installed 
or tested, the contract may be closed out upon certification by the 
engineer that the equipment has been inspected and appears to be in 
accordance with the contract requirements.
    (b) Closeout documents. (1) The borrower, acting through its 
engineer, will obtain the following executed documents:
    (i) Certification by the project engineer in accordance with 
paragraph (a) of this section.
    (ii) All guarantees or warranties.
    (iii) A ``Buy American'' certificate from the supplier or 
manufacturer.
    (2) Closeout documents for materials contracts need not be 
submitted to REA unless specifically requested by REA.
    (c) Final payment. Upon completion of the actions required under 
paragraphs (a) and (b) of this section, the borrower will make final 
payment to the supplier or manufacturer in accordance with the 
provisions of the equipment contract.


Sec. 1726.403  Project construction contract closeout.

    This section is applicable to contracts executed on REA Forms 200, 
203, 257, 764, 786, 830, and 831.
    (a) Final test of equipment supplied under a construction contract. 
If equipment is supplied under a construction contract, the borrower, 
acting through its architect or engineer, will perform the final 
inspection and testing of equipment as appropriate for the specific 
equipment. The borrower, acting through its architect or engineer, will 
schedule such inspection and testing at a time mutually agreeable to 
the borrower, architect or engineer, and the contractor. Within thirty 
(30) days after completion of the inspection and testing, the borrower, 
acting through its architect or engineer, will prepare a report of the 
inspection and testing, obtain a copy of the report from its architect 
or engineer, and submit a copy to the contractor. This report must 
include a detailed description of the methods of conducting the 
test(s), observed data, comparison of guaranteed and actual 
performance, and recommendations concerning acceptance. The borrower 
will obtain from its architect or engineer a written certification 
stating that the equipment has been installed, placed in satisfactory 
operation and tested, and meets the contract requirements. Where more 
than one-hundred and eighty (180) days have elapsed since the delivery 
of the equipment and the equipment has not been installed or tested, 
the contract may be closed out upon certification by its architect or 
engineer that the equipment has been inspected and appears to be in 
accordance with the contract requirements.
    (b) Final inspection of construction. The borrower will require the 
contractor to notify the architect or engineer when construction is 
complete. The borrower, acting through the architect or engineer, will 
schedule such final inspection at a time mutually agreeable to the 
borrower, architect or engineer, contractor, and the respective REA 
General Field Representative (GFR), if the GFR has notified the 
borrower or its architect or engineer of a desire to observe the final 
inspection. The borrower, acting through its architect or engineer, 
will perform a final inspection of the construction and notify the 
contractor of any required changes or corrections.
    (c) Closeout documents. (1) Upon satisfactory completion of 
construction (including all changes and corrections by the contractor), 
the borrower, acting through its architect or engineer, will obtain 
executed copies of the following documents:
    (i) REA Form 181, Certificate of Completion, Contract Construction 
for Buildings (for contracts executed on REA Form 257), or REA Form 
187, Certificate of Completion, Contract Construction (for contracts 
executed on all other forms under this section).
    (ii) REA Form 213, ``Buy American'' certificate.
    (iii) REA Form 224, Waiver and Release of Lien, from each 
manufacturer, supplier, and contractor which has furnished material or 
services or both in connection with the construction.
    (iv) REA Form 231, Certificate of Contractor.
    (v) REA Form 254, Construction Inventory, including all supporting 
documents, such as REA Forms 254a-c and construction change orders, for 
contracts executed on REA Forms 203, 764, 830 or 831.
    (vi) Certification by the project architect or engineer in 
accordance with Sec. 1726.403(a), if applicable.
    (vii) Final design documents, as outlined in part 1724 of this 
chapter.
    (2) Distribution of closeout documents. (i) The borrower will 
retain one copy of each of the documents identified in paragraph (c)(1) 
of this section in accordance with applicable REA requirements 
regarding retention of records.
    (ii) For contracts subject to REA approval, the borrower will 
submit the following closeout documents for REA approval (through the 
GFR except for generation projects):
    (A) REA Form 181, Certificate of Completion, Contract Construction 
for Buildings (for contracts executed on REA Form 257), or REA Form 
187, Certificate of Completion, Contract Construction (for contracts 
executed on all other forms under this section).
    (B) REA Form 231, Certificate of Contractor.
    (C) REA Form 254, Construction Inventory, including all supporting 
documents, such as REA Forms 254a-c and construction change orders, for 
contracts executed on REA Forms 203, 764, or 831.
     (iii) For contracts not subject to REA approval, the closeout is 
not subject to REA approval. The borrower will send one copy of REA 
Form 181 or REA Form 187 (as applicable) to REA for information prior 
to or in conjunction with the applicable REA Form 219, Inventory of 
Work Orders. The remaining closeout documents need not be sent to REA 
unless specifically requested by REA.
    (d) Final payment. (1) The borrower will make final payment to the 
contractor upon completion of approval of all closeout documents by the 
parties to the contract, in accordance with the terms of the 
construction contract.
    (2)(i) Upon receipt of final payment by the contractor, the 
borrower will obtain from the contractor a certification of receipt of 
final payment in the following form:

    ``The undersigned acknowledges receipt of the final contract 
payment of $________ as satisfaction in full of all claims of the 
undersigned under the construction contract between the undersigned 
and ________ (borrower), dated as amended, and as complete 
performance by the latter of all obligations to be performed by it 
pursuant thereto. The total amount received under this contract is 
shown above.''

    (ii) The certification in paragraph (d)(2)(i) of this section is to 
be executed for the contractor by: the sole owner, a partner, or an 
officer of the corporation. Where this certification is executed for 
the corporation by a person other than the president, a certified copy 
of the authorization from the corporate board must be included with the 
certification. This certification is not a replacement for itemized 
invoices.


Sec. 1726.404  Non-project construction contract closeout.

    This section is applicable to contracts executed on REA Forms 201, 
790, and 792.
    (a) Final test of equipment supplied under a construction contract. 
If equipment is supplied under a construction contract, the borrower, 
acting through its engineer, will perform the final inspection and 
testing of equipment as appropriate for the specific equipment. The 
borrower, acting through its engineer, will schedule such inspection 
and testing at a time mutually agreeable to the borrower, its engineer, 
and the contractor. Within thirty (30) days after completion of the 
inspection and testing, the borrower, acting through its engineer, will 
prepare a report of the inspection and testing, obtain a copy of the 
report from its engineer, and submit a copy to the contractor. This 
report must include a detailed description of the methods of conducting 
the test(s), observed data, comparison of guaranteed and actual 
performance, and recommendations concerning acceptance. The borrower 
will obtain from the engineer a written certification stating that the 
equipment has been installed, placed in satisfactory operation and 
tested, and meets the contract requirements. Where more than one-
hundred and eighty (180) days have elapsed since the delivery of the 
equipment and the equipment has not been installed or tested, the 
contract may be closed out upon certification by the engineer that the 
equipment has been inspected and appears to be in accordance with the 
contract requirements.
    (b) Final inspection of construction. The borrower will require the 
contractor to notify its engineer when construction of a section of the 
project is complete. The borrower, acting through engineer, will 
schedule such final inspection at a time mutually agreeable to the 
borrower, its engineer, contractor, and the respective GFR, if the GFR 
has notified the borrower or its engineer of a desire to observe the 
final inspection. The borrower, acting through its engineer, will 
perform a final inspection of the construction of that section of the 
project and notify the contractor of any required changes or 
corrections.
    (c) Closeout documents. (1) Upon satisfactory completion of 
construction of a section of the project (including all changes and 
corrections by the contractor), the borrower, acting through its 
engineer, will obtain executed copies of the following documents:
    (i) REA Form 792b, Certificate of Contractor and Indemnity 
Agreement
    (ii) REA Form 213, ``Buy American'' certificate.
    (iii) Certification by the project engineer in accordance with 
paragraph (a) of this section, if applicable.
    (iv) Final design documents, as outlined in part 1724 of this 
chapter.
    (2) Distribution of closeout documents. (i) The borrower will 
retain one copy of each of the documents identified in paragraph (c)(1) 
of this section in accordance with applicable REA requirements 
regarding retention of records.
    (ii) For contracts not subject to REA approval, the closeout is not 
subject to REA approval and the closeout documents need not be sent to 
REA unless specifically requested by REA.


Sec. 1726.405  Inventory of work orders (REA Form 219).

    Upon completion of the contract closeout, the borrower shall 
complete REA Form 219, Inventory of Work Orders, in accordance with 
part 1717, Post-Loan Policies and Procedures Common to Insured and 
Guaranteed Electric Loans, of this chapter.

    Dated: April 20, 1994.
Bob J. Nash,
Under Secretary, Small Community and Rural Development.
[FR Doc. 94-11541 Filed 6-2-94; 8:45 am]
BILLING CODE 3410-15-P