[Federal Register Volume 63, Number 124 (Monday, June 29, 1998)]
[Rules and Regulations]
[Pages 35312-35330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16792]
[[Page 35311]]
_______________________________________________________________________
Part II
Department of Agriculture
_______________________________________________________________________
Rural Utilities Service
_______________________________________________________________________
7 CFR Part 1724
Electric Engineering, Architectural Services and Design Policies and
Procedures; Final Rule
Federal Register / Vol. 63, No. 124 / Monday, June 29, 1998 /Rules
and Regulations
[[Page 35312]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1724
RIN 0572-AA48
Electric Engineering, Architectural Services and Design Policies
and Procedures
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Utilities Service (RUS) is amending its regulations
on engineering and architectural services. These policies and
procedures are presently contained in seven RUS bulletins, which will
be rescinded after this regulation becomes effective. This rule
simplifies and codifies RUS policy and procedures to be followed by
electric borrowers relating to architectural and engineering services.
This rule also simplifies and codifies RUS requirements for the
planning and design of electric distribution, transmission, and
generation systems and facilities owned by RUS borrowers.
DATES: Effective Date: July 29, 1998.
Incorporation by Reference: Incorporation by reference of certain
publications listed in this final rule is approved by the Director of
the Federal Register as of July 29, 1998.
FOR FURTHER INFORMATION CONTACT: Mr. Fred J. Gatchell, Deputy Director,
Electric Staff Division, Rural Utilities Service, U.S. Department of
Agriculture, Stop 1569, 1400 Independence Ave., SW., Washington, DC
20250-1569. Telephone: (202) 720-1398. FAX: (202) 720-7491. E-mail:
[email protected].
SUPPLEMENTARY INFORMATION:
Executive Order 12372
This rule is excluded from the scope of Executive Order 12372,
Intergovernmental Consultation, which may require consultation with
State and local officials. A Final Rule Related Notice entitled
``Department Programs and Activities Excluded from Executive Order
12372,'' (50 FR 47034) exempted RUS loans and loan guarantees from
coverage under this order.
Executive Order 12866
This rule has been determined to be not significant for the
purposes of Executive Order 12866 and, therefore, has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. RUS has determined that this rule meets the applicable
standards provided in section 3 of the Executive Order.
Regulatory Flexibility Act Certification
The Administrator of RUS has determined that a rule relating to the
RUS electric loan program is not a rule as defined in the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) and, therefore, the Regulatory
Flexibility Act does not apply to this rule.
National Environmental Policy Act Certification
The Administrator of RUS has determined that this 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 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 20402-9325.
National Performance Review
The regulatory action is being taken as part of the National
Performance Review program to eliminate unnecessary regulations and
improve those that remain in force.
Information Collection and Recordkeeping Requirements
The recordkeeping and reporting burdens contained in this rule will
be submitted to OMB for approval. The paperwork contained in this rule
will not be effective until approved by OMB.
Send questions or comments regarding any aspect of this collection
of information, including suggestions for reducing the burden, to F.
Lamont Heppe, Jr., Director, Program Development and Regulatory
Analysis, Rural Utilities Service, U.S. Department of Agriculture, Stop
1522, 1400 Independence Ave., SW., Washington, DC 20250-1522.
Unfunded Mandates
This rule contains no Federal mandates (under the regulatory
provision of Title II of the Unfunded Mandates Reform Act of 1995) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
Unfunded Mandates Reform Act of 1995.
Background
RUS has promulgated regulations pertaining to the design and
construction of RUS electric borrower's systems. These regulations are
contained in 7 CFR chapter XVII, part 1724, Electric Engineering,
Architectural Services and Design Policies and Procedures, which
describes policies and procedures pertaining to RUS electric borrower
procurement of architectural and engineering services for planning,
design, and construction management of buildings and electric utility
plant such as distribution and transmission lines, substations,
communications and control systems, and generating plants.
The policies and procedures covered by this rule are presently
contained in RUS Bulletins 41-1, Engineering Services for Electric
Borrowers; 42-1, Architectural Services for Electric Borrowers; 60-1,
Standards for the Preparation of Circuit Diagrams, Electrical Data
Sheets, and Other Drawings for Systems of Electrical Borrowers; 60-2,
Electric System Capacity; 80-11, Reports of Progress of Construction
and Engineering Services; 81-9, Preparation of Plans and Specifications
for Distribution and Transmission Facilities; and 86-2, Pre-
Construction Activities for Headquarters Facilities for Electric
Borrowers. The previous policies and procedures are being changed and
updated by this rule. Upon the effective date of this rule, RUS
Bulletins 41-1, 42-1, 60-1, 60-2, 80-11, 81-9, and 86-2 will be
superseded and rescinded.
The major substantive changes are as follows:
(a) This rule eliminates the requirement for RUS approval of the
borrower's selection of the architect and of the engineer.
(b) This rule eliminates the requirement for RUS approval of
architectural services contracts and distribution and transmission
engineering services contracts for all facilities, and generation
engineering services contracts if the facilities are not financed by
RUS.
(c) This rule eliminates the requirement for RUS approval for
closeout of architectural or engineering services contracts.
(d) This rule eliminates the requirement for submittal of progress
reports to RUS for facilities not financed by RUS.
(e) This rule eliminates the requirement for RUS approval of many
[[Page 35313]]
plans and specifications. However, many requirements, such as the
National Electrical Safety Code (NESC), Occupational Safety and Health
Act of 1970 (29 U.S.C. 651 et seq.), building accessibility standards,
RUS standards, specifications, and use of acceptable materials, etc.,
apply regardless of the source of financing.
(f) Design data that have been approved by RUS may be used for new
facilities without further approval.
(g) This rule will simplify and clarify RUS requirements regarding
system design.
(h) This rule combines seven bulletins and three contracting forms.
Comments
On August 4, 1997, RUS published a proposed rule at 62 FR 41883.
Comments were received from 13 parties, including one cooperative
association, 2 engineering associations, 3 distribution borrowers, 3
power supply borrowers, and 4 engineering firms. RUS considered all
comments. All substantive comments are addressed herein.
Some commenters suggested that RUS eliminate the requirement that
RUS borrowers use RUS standards and RUS accepted materials, especially
when the project is financed from sources other than RUS, and to
eliminate all RUS approvals when the project is financed from sources
other than RUS. RUS disagrees with this approach. Any project that is
part of a borrower's interrelated electrical system can impact the
collateral that serves as security for loans and guarantees made by
RUS. Inadequate design or materials in one part of the system,
regardless of how financed, can adversely affect the entire system. RUS
considers the requirements that RUS borrowers use RUS standards and
accepted materials and for RUS approvals as proposed are in the
government's best interests as lender.
One commenter suggested that RUS clarify the applicability of prior
editions of the National Electrical Safety Code (NESC). Since the NESC
itself specifically addresses facilities that comply with prior
editions of the NESC, no change is needed in the rule.
Some commenters suggested that RUS allow non-licensed engineers to
do certain work and not require all employed engineers to be
registered. Nothing in the proposed rule requires each and every person
doing engineering work to be registered. Generally, the rule allows the
a borrower to use qualified non-licensed subordinates to do engineering
work to the same extent as allowed by applicable State engineering
regulations.
Several commenters suggested that RUS allow more than 6 months for
inspection of work order construction. RUS disagrees with this comment.
Inspection of work order construction is important to the safety of the
public and the borrower's employees, and should be completed as
expeditiously as possible. Where special circumstances (e.g., unusual
weather conditions) preclude inspection within six months, the borrower
may request a waiver of this time requirement.
Several commenters suggested that RUS not require that inspected
work orders be noted and initialed on the RUS Form 219. In response to
this comment, RUS has eliminated the requirement that the inspected
work orders be noted and initialed, requiring only that the inspected
work orders be indicated on the RUS Form 219.
One commenter suggested that RUS not require RUS Form 219 to be
used for work on facilities not financed by RUS. It is not RUS' intent
to require RUS Form 219 for work on facilities not financed by RUS. The
final rule clarifies this point.
One commenter suggested that RUS not prohibit the borrower's
manager from certifying the RUS Form 219. RUS believes that its long-
standing requirement for separation of responsibility continues to have
merit while causing little borrower inconvenience. No change has been
made in the final rule.
One commenter suggested that RUS allow as-built drawings as a
substitute for staking sheets in connection with work order inspection.
In response to this comment, RUS has changed the final rule
accordingly.
Some commenters suggested that RUS allow borrowers to use either an
architect or an engineer for the design of buildings and that RUS
should allow the borrower, instead of the architect or engineer, to do
the construction management. One commenter noted that RUS Form 220
requires electrical, mechanical, and structural expertise that an
architect may not have. It is RUS' intent that all work be done by
individuals and organizations well qualified to do the work. This could
include having an engineer design buildings with architectural
assistance, the borrower doing construction management with engineering
or architectural assistance, or an architect obtaining additional
electrical, mechanical, and structural expertise. Since nothing in the
rule is contrary to this interpretation, no change is needed in the
rule.
One commenter suggested that there should be specific time limits
placed on RUS in connection with the approval process. RUS understands
the commenter's concern, but disagrees with the commenter's solution.
While RUS makes every effort to support the borrower's schedule by
providing timely approvals, an automatic approval after a given period
of time is not consistent with the purpose of RUS approval. No change
has been made in the final rule.
Some commenters suggested that RUS use a standard form of
engineering services contract based on one prepared by the Engineers
Joint Contract Documents Committee in lieu of the RUS standard form,
while another commenter suggested that RUS rewrite the standard form of
engineering services contract to conform to current business practices.
Other commenters noted that the proposed rule's requirement that the
engineer's documents comply with all environmental regulations could be
construed as a warranty or guarantee of services and RUS should modify
the proposed rule to eliminate this express warranty or guarantee.
Other commenters suggested that RUS not require engineers to provide
construction management services nor to ``supervise'' construction. One
commenter suggested that RUS not require the engineer to ``inspect''
construction, and that the engineer's obligation should be to
``observe'' construction. RUS believes that the RUS standard form of
engineering services contract, based on many years of successful use by
RUS borrowers, is still fundamentally sound. Certain specific comments
have been addressed and changes made in the standard form of
engineering services contract to clarify certain provisions of the
contract.
One commenter noted that RUS stated that only 3 contract forms are
required, but Sec. 1724.70 lists 12 forms. The forms listed in
Sec. 1724.70 are available from RUS, but only those so indicated are
required to be used. The others forms are available for use by
borrowers but are not required. The final rule clarifies this point.
Some commenters suggested that RUS not require borrowers to use the
standard contract forms for small jobs (e.g., less then $75,000 or 5
percent of total utility plant.) RUS disagrees with this comment. A
small engineering job can have a significant impact on a much larger
project. Also, the standard contract forms are only required for RUS
financed facilities, which tend to be larger projects. No change has
been made in the final rule.
Several commenters suggested that RUS not require professional
liability insurance of $1, 000,000. In response to
[[Page 35314]]
this comment, RUS has changed the required amount of insurance to
$500,000.
One commenter suggested that RUS allow computer generated forms in
lieu of the standard printed version, since ``reasonable modifications
and additions'' to the standard forms are permitted. RUS disagrees with
this. RUS believes that the most effective means of maintaining
accurate and recognizable forms is to continue to use the preprinted
version. No change has been made in the final rule.
One commenter suggested that RUS eliminate the sample compensation
schedule from the RUS Form 220. RUS has determined that the sample
compensation schedule is not necessary and has been eliminated.
One commenter suggested that the RUS Forms 220 and 236 require the
engineer to get the owner's permission to open bids if three or fewer
bids are received, as is the case in the RUS Form 211. This commenter
also suggested that RUS Form 220 should require the architect to
inspect materials and equipment prior to incorporation into the
project, and to reject those not in conformance with the specification,
as is the case in the RUS Forms 211 and 236. RUS agrees that the
standard forms of contract should be consistent in these areas and has
modified the forms accordingly.
List of Subjects in 7 CFR Part 1724
Electric power, Incorporation by reference, Loan programs--energy,
Reporting and recordkeeping requirements, Rural areas.
In view of the above, RUS hereby amends 7 CFR chapter XVII by
revising part 1724 to read as follows:
PART 1724--ELECTRIC ENGINEERING, ARCHITECTURAL SERVICES AND DESIGN
POLICIES AND PROCEDURES
Subpart A--General
Sec.
1724.1 Introduction.
1724.2 Waivers.
1724.3 Definitions.
1724.4 Qualifications.
1724.5 Submission of documents to RUS.
1724.6 Insurance requirements.
1724.7 Debarment and suspension.
1724.8 Restrictions on lobbying.
1724.9 Environmental compliance.
1724.10-1724.19 [Reserved]
Subpart B--Architectural Services
1724.20 Borrowers' requirements--architectural services.
1724.21 Architectural services contracts.
1724.22-1724.29 [Reserved]
Subpart C--Engineering Services
1724.30 Borrowers' requirements--engineering services.
1724.31 Engineering services contracts.
1724.32 Inspection and certification of work order construction.
1724.33-1724.39 [Reserved]
Subpart D--Electric System Planning
1724.40 General.
1724.41-1724.49 [Reserved]
Subpart E--Electric System Design
1724.50 Compliance with National Electrical Safety Code (NESC).
1724.51 Design requirements.
1724.52 Permitted deviations from RUS construction standards.
1724.53 Preparation of plans and specifications.
1724.54 Requirements for RUS approval of plans and specifications.
1724.55 Dam safety.
1724.56-1724.69 [Reserved]
Appendix A to subpart E of part 1724--Hazard Potential
Classification for Civil Works Projects
Subpart F--RUS Contract Forms
1724.70 List of RUS contract forms for architectural and
engineering services.
1724.71 Use of printed forms.
1724.72-1724.73 [Reserved]
1724.74 Engineering service contract for the design and
construction of a generating plant, RUS Form 211.
1724.75 Architectural service contract, RUS Form 220.
1724.76 Engineering service contract--electric system design and
construction, RUS Form 236.
1724.77-1724.99 [Reserved]
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
Subpart A--General
Sec. 1724.1 Introduction.
(a) The policies, procedures and requirements in this part
implement certain provisions of the standard form of loan documents
between the Rural Utilities Service (RUS) and its electric borrowers.
(b) All borrowers, regardless of the source of financing, shall
comply with RUS' requirements with respect to design, construction
standards, and the use of RUS accepted material on their electric
systems.
(c) Borrowers are required to use RUS contract forms only if the
facilities are financed by RUS.
Sec. 1724.2 Waivers.
The Administrator may waive, for good cause on a case-by-case
basis, requirements and procedures of this part.
Sec. 1724.3 Definitions.
Terms used in this part have the meanings set forth in Sec. 1710.2
of this chapter. References to specific RUS forms and other RUS
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 Sec. 1710.2 of this chapter, the
following terms have the following meanings for the purposes of this
part:
Architect means a registered or licensed person employed by the
borrower to provide architectural services for a project and duly
authorized assistants and representatives.
Engineer means a registered or licensed person, who may be a staff
employee or an outside consultant, to provide engineering services and
duly authorized assistants and representatives.
Force account construction means construction performed by the
borrower's employees.
NESC means the National Electrical Safety Code.
Repowering means replacement of the steam generator or the prime
mover or both at a generating plant.
RUS approval means written approval by the Administrator or a
representative with delegated authority. RUS approval must be in
writing, except in emergency situations where RUS approval may be given
orally followed by a confirming letter.
RUS financed means financed or funded wholly or in part by a loan
made or guaranteed by RUS, including concurrent supplemental loans
required by Sec. 1710.110 of this chapter, loans to reimburse funds
already expended by the borrower, and loans to replace interim
financing.
Sec. 1724.4 Qualifications.
The borrower shall ensure that:
(a) All selected architects and engineers meet the applicable
registration and licensing requirements of the States in which the
facilities will be located;
(b) All selected architects and engineers are familiar with RUS
standards and requirements; and
(c) All selected architects and engineers have had satisfactory
experience with comparable work.
Sec. 1724.5 Submission of documents to RUS.
(a) Where to send documents. Documents required to be submitted to
RUS under this part are to be sent to the office of the borrower's
respective RUS Regional Director, the Power Supply Division Director,
or such other office of RUS as designated by RUS. (See part 1700 of
this chapter.)
[[Page 35315]]
(b) Contracts requiring RUS approval. The borrower shall submit to
RUS three copies of each contract that is subject to RUS approval under
subparts B and C 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 a certified copy of the board
resolution awarding the contract.
(c) Contract amendments requiring RUS approval. The borrower shall
submit to RUS three copies of each contract amendment (at least one
copy of which must be an original signed in ink) which is subject to
RUS approval. Each contract amendment submittal to RUS must be
accompanied by a certified copy of the board resolution approving the
amendment.
Sec. 1724.6 Insurance requirements.
(a) Borrowers shall ensure that all architects and engineers
working under contract with the borrower have insurance coverage as
required by part 1788 of this chapter.
(b) Borrowers shall also ensure that all architects and engineers
working under contract with the borrower have insurance coverage for
Errors and Omissions (Professional Liability Insurance) in an amount at
least as large as the amount of the architectural or engineering
services contract but not less than $500,000.
Sec. 1724.7 Debarment and suspension.
Borrowers shall comply with the 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. 1724.8 Restrictions on lobbying.
Borrowers shall comply with the restrictions and requirements in
connection with procurement activities as set forth in part 3018 of
this title.
Sec. 1724.9 Environmental compliance.
Borrowers shall comply with the requirements of part 1794 of this
chapter, Environmental Policies and Procedures for Electric and
Telephone Borrowers.
Secs. 1724.10-1724.19 [Reserved]
Subpart B--Architectural Services
Sec. 1724.20 Borrowers' requirements--architectural services.
The provisions of this section apply to all borrower electric
system facilities regardless of the source of financing.
(a) Each borrower shall select a qualified architect to perform the
architectural services required for the design and construction
management of headquarters facilities. The selection of the architect
is not subject to RUS approval unless specifically required by RUS on a
case by case basis. Architect's qualification information need not be
submitted to RUS unless specifically requested by RUS on a case by case
basis.
(b) The architect retained by the borrower shall not be an employee
of the building supplier or contractor, except in cases where the
building is prefabricated and pre-engineered.
(c) The architect's duties are those specified under the
Architectural Services Contract and under subpart E of this part, and,
as applicable, those duties assigned to the ``engineer'' for
competitive procurement procedures in part 1726 of this chapter.
(d) If the facilities are RUS financed, the borrower shall submit
or require the architect to submit one copy of each construction
progress report to RUS upon request.
(e) Additional information concerning RUS requirements for electric
borrowers' headquarters facilities are set forth in subpart E of this
part. See also RUS Bulletin 1724E-400, Guide to Presentation of
Building Plans and Specifications, for additional guidance. This
bulletin is available from Program Development and Regulatory Analysis,
Rural Utilities Service, U.S. Department of Agriculture, Stop 1522,
1400 Independence Ave., SW., Washington, DC 20250-1522.
Sec. 1724.21 Architectural services contracts.
The provisions of this section apply only to RUS financed electric
system facilities.
(a) RUS Form 220, Architectural Services Contract, must be used by
electric borrowers when obtaining architectural services.
(b) The borrower shall ensure that the architect furnishes or
obtains all architectural services related to the design and
construction management of the facilities.
(c) Reasonable modifications or additions to the terms and
conditions in the RUS contract form may be made to define the exact
services needed for a specific undertaking. Such modifications or
additions shall not relieve the architect or the borrower of the basic
responsibilities required by the RUS contract form, and shall not alter
any terms and conditions required by law. All substantive changes must
be approved by RUS prior to execution of the contract.
(d) Architectural services contracts are not subject to RUS
approval and need not be submitted to RUS unless specifically requested
by RUS on a case by case basis.
(e) Closeout. Upon completion of all services and obligations
required under each architectural services contract, including, but not
limited to, submission of final documents, the borrower must closeout
that contract. The borrower shall obtain from the architect a final
statement of cost, which must be supported by detailed information as
appropriate. For example, out-of-pocket expense and per diem types of
compensation should be listed separately with labor, transportation,
etc., itemized for each service involving these types of compensation.
RUS Form 284, Final Statement of Cost for Architectural Service, may be
used. All computations of the compensation must be made in accordance
with the terms of the architectural services contract. Closeout
documents need not be submitted to RUS unless specifically requested by
RUS on a case by case basis.
Secs. 1724.22-1724.29 [Reserved]
Subpart C--Engineering Services
Sec. 1724.30 Borrowers' requirements--engineering services.
The provisions of this section apply to all borrower electric
system facilities regardless of the source of financing.
(a) Each borrower shall select one or more qualified persons to
perform the engineering services involved in the planning, design, and
construction management of the system.
(b) Each borrower shall retain or employ one or more qualified
engineers to inspect and certify all new construction in accordance
with Sec. 1724.32. The engineer must not be the borrower's manager.
(c) The selection of the engineer is not subject to RUS approval
unless specifically required by RUS on a case by case basis. Engineer's
qualification information need not be submitted to RUS unless
specifically requested by RUS on a case by case basis.
(d) The engineer's duties are specified under the Engineering
Services Contract and under part 1726 of this chapter. The borrower
shall ensure that the engineer executes all certificates and other
instruments pertaining to the engineering details required by RUS.
(e) Additional requirements related to appropriate seismic safety
measures are contained in part 1792, subpart C, of this chapter,
Seismic Safety of Federally Assisted New Building Construction.
(f) If the facilities are RUS financed, the borrower shall submit
or require the engineer to submit one copy of each
[[Page 35316]]
construction progress report to RUS upon RUS' request.
Sec. 1724.31 Engineering services contracts.
The provisions of this section apply only to RUS financed electric
system facilities.
(a) RUS contract forms for engineering services shall be used.
Reasonable modifications or additions to the terms and conditions in
the RUS contract form may be made to define the exact services needed
for a specific undertaking. Any such modifications or additions shall
not relieve the engineer or the borrower of the basic responsibilities
required by the RUS contract form, and shall not alter any terms and
conditions required by law. All substantive changes to the RUS contract
form shall be approved by RUS prior to execution of the contract.
(b) RUS Form 236, Engineering Service Contract--Electric System
Design and Construction, shall be used for all distribution,
transmission, substation, and communications and control facilities.
These contracts are not subject to RUS approval and need not be
submitted to RUS unless specifically requested by RUS on a case by case
basis.
(c) RUS Form 211, Engineering Service Contract for the Design and
Construction of a Generating Plant, shall be used for all new
generating units and repowering of existing units. These contracts
require RUS approval.
(d) Any amendments to RUS approved engineering services contracts
require RUS approval.
(e) Closeout. Upon completion of all services and obligations
required under each engineering services contract, including, but not
limited to, submission of final documents, the borrower must closeout
the contract. The borrower shall obtain from the engineer a completed
final statement of engineering fees, which must be supported by
detailed information as appropriate. RUS Form 234, Final Statement of
Engineering Fee, may be used. All computations of the compensation
shall be made in accordance with the terms of the engineering services
contract. Closeout documents need not be submitted to RUS unless
specifically requested by RUS on a case by case basis.
Sec. 1724.32 Inspection and certification of work order construction.
The provisions of this section apply to all borrower electric
system facilities regardless of the source of financing.
(a) The borrower shall ensure that all field inspection and related
services are performed within 6 months of the completion of
construction, and are performed by a licensed engineer, except that a
subordinate of the licensed engineer may make the inspection, provided
the following conditions are met:
(1) The inspection by the subordinate is satisfactory to the
borrower;
(2) This practice is acceptable under applicable requirements of
the States in which the facilities are located;
(3) The subordinate is experienced in making such inspections;
(4) The name of the person making the inspection is included in the
certification; and
(5) The licensed engineer signs such certification which appears on
the inventory of work orders.
(b) The inspection shall include a representative and sufficient
amount of construction listed on each RUS Form 219, Inventory of Work
Orders (or comparable form), being inspected to assure the engineer
that the construction is acceptable. Each work order that was field
inspected shall be indicated on RUS Form 219 (or comparable form.) The
inspection services shall include, but not be limited to, the
following:
(1) Determination that construction conforms to RUS specifications
and standards and to the requirements of the National Electrical Safety
Code (NESC), State codes, and local codes;
(2) Determination that the staking sheets or as-built drawings
represent the construction completed and inspected;
(3) Preparation of a list of construction clean-up notes and
staking sheet discrepancies to be furnished to the owner to permit
correction of construction, staking sheets, other records, and work
order inventories;
(4) Reinspection of construction corrected as a result of the
engineer's report;
(5) Noting, initialing, and dating the staking or structure sheets
or as-built drawings and noting the corresponding work order entry for
line construction; and
(6) Noting, initialing, and dating the as-built drawings or
sketches for generating plants, substations, and other major
facilities.
(c) Certification. (1) The following certification must appear on
all inventories of work orders:
I hereby certify that sufficient inspection has been made of the
construction reported by this inventory to give me reasonable
assurance that the construction complies with applicable
specifications and standards and meets appropriate code requirements
as to strength and safety. This certification is in accordance with
acceptable engineering practice.
(2) A certification must also include the name of the inspector,
name of the firm, signature of the licensed engineer, the engineer's
State license number, and the date of signature.
Secs. 1724.33-1724.39 [Reserved]
Subpart D--Electric System Planning
Sec. 1724.40 General.
Borrowers shall have ongoing, integrated planning to determine
their short-term and long-term needs for plant additions, improvements,
replacements, and retirements for their electric systems. The primary
components of the planning system consist of long-range engineering
plans and construction work plans. Long-range engineering plans
identify plant investments required over a long-range period, 10 years
or more. Construction work plans specify and document plant
requirements for a shorter term, 2 to 4 years. Long-range engineering
plans and construction work plans shall be in accordance with part
1710, subpart F, of this chapter. See also RUS Bulletins 1724D-101A,
Electric System Long-Range Planning Guide, and 1724D-101B, System
Planning Guide, Construction Work Plans, for additional guidance. These
bulletins are available from Program Development and Regulatory
Analysis, Rural Utilities Service, U.S. Department of Agriculture, Stop
1522, 1400 Independence Ave., SW., Washington, DC 20250-1522.
Secs. 1724.41-1724.49 [Reserved]
Subpart E--Electric System Design
Sec. 1724.50 Compliance with National Electrical Safety Code (NESC).
The provisions of this section apply to all borrower electric
system facilities regardless of the source of financing.
(a) A borrower shall ensure that its electric system, including all
electric distribution, transmission, and generating facilities, is
designed, constructed, operated, and maintained in accordance with all
applicable provisions of the most current and accepted criteria of the
National Electrical Safety Code (NESC) and all applicable and current
electrical and safety requirements of any State or local governmental
entity. Copies of the NESC may be obtained from the Institute of
Electrical and Electronic Engineers, Inc., 445 Hoes Lane, Piscataway,
NJ 08855. This requirement applies to the borrower's electric system
regardless of the source of financing.
(b) Any electrical standard requirements established by RUS are in
addition to, and not in substitution for or a modification of, the most
current and accepted criteria of the NESC and
[[Page 35317]]
any applicable electrical or safety requirements of any State or local
governmental entity.
(c) Overhead distribution circuits shall be constructed with not
less than the Grade C strength requirements as described in Section 26,
Strength Requirements, of the NESC when subjected to the loads
specified in NESC Section 25, Loadings for Grades B and C. Overhead
transmission circuits shall be constructed with not less than the Grade
B strength requirements as described in NESC Section 26.
Sec. 1724.51 Design requirements.
The provisions of this section apply to all borrower electric
system facilities regardless of the source of financing.
(a) Distribution. All distribution facilities must conform to the
applicable RUS construction standards and utilize RUS accepted
materials.
(b) Transmission lines. (1) All transmission line design data must
be approved by RUS.
(2) Design data consists of all significant design features,
including, but not limited to, transmission line design data summary,
general description of terrain, right-of-way calculations, discussion
concerning conductor and structure selection, conductor sag and tension
information, design clearances, span limitations due to clearances,
galloping or conductor separation, design loads, structure strength
limitations, insulator selection and design, guying requirements, and
vibration considerations. For lines composed of steel or concrete
poles, or steel towers, in which load information will be used to
purchase the structures, the design data shall also include loading
trees, structure configuration and selection, and a discussion
concerning foundation selection.
(3) Line design data for uprating transmission lines to higher
voltage levels or capacity must be approved by RUS.
(4) Transmission line design data which has received RUS approval
in connection with a previous transmission line construction project
for a particular borrower is considered approved by RUS for that
borrower, provided that:
(i) The conditions on the project fall within the design data
previously approved; and
(ii) No significant NESC revisions have occurred.
(c) Substations. (1) All substation design data must be approved by
RUS.
(2) Design data consists of all significant design features,
including, but not limited to, a discussion of site considerations, oil
spill prevention measures, design considerations covering voltage,
capacity, shielding, clearances, number of low and high voltage phases,
major equipment, foundation design parameters, design loads for line
support structures and the control house, seismic considerations,
corrosion, grounding, protective relaying, and AC and DC auxiliary
systems. Reference to applicable safety codes and construction
standards are also to be included.
(3) Substation design data which has received RUS approval in
connection with a previous substation construction project for a
particular borrower is considered approved by RUS for that borrower,
provided that:
(i) The conditions on the project fall within the design data
previously approved; and
(ii) No significant NESC revisions have occurred.
(d) Generating facilities. (1) This section covers all portions of
a generating plant including plant buildings, the generator step-up
transformer, and the transmission switchyard at a generating plant.
Warehouses and equipment service buildings not associated with
generation plants are covered under paragraph (e) of this section.
Generation plant buildings must meet the requirements of paragraph
(e)(1) of this section.
(2) For all new generation units and for all repowering projects,
the design outline shall be approved by RUS, unless RUS determines that
a design outline is not needed for a particular project.
(3) The design outline will include all significant design
criteria. During the early stages of the project, RUS will, in
consultation with the borrower and its consulting engineer, identify
the specific items which are to be included in the design outline.
(e) Headquarters. (1) Applicable laws. The design and construction
of headquarters facilities shall comply with all applicable Federal,
State, and local laws and regulations, including, but not limited to:
(i) Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794),
which states that no qualified individual with a handicap shall, solely
by reason of their handicap, be excluded from participation in, be
denied the benefits of, or be subject to discrimination under any
program or activity receiving Federal financial assistance. The Uniform
Federal Accessibility Standards (41 CFR part 101-19, subpart 101-19.6,
appendix A) are the applicable standards for all new or altered
borrower buildings, regardless of the source of financing.
(ii) The Architectural Barriers Act of 1968 (42 U.S.C. 4151), which
requires that buildings financed with Federal funds are designed and
constructed to be accessible to the physically handicapped.
(iii) The Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701
et seq.), and Executive Order 12699, Seismic Safety of Federal and
Federally Assisted or Regulated New Building Construction (3 CFR 1990
Comp., p. 269). Appropriate seismic safety provisions are required for
new buildings for which RUS provides financial assistance. (See part
1792, subpart C, of this chapter.)
(2) The borrower shall provide evidence, satisfactory in form and
substance to the Administrator, that each building will be designed and
built in compliance with all Federal, State, and local requirements.
(f) Communications and control. (1) This section covers microwave
and powerline carrier communications systems, load control, and
supervisory control and data acquisition (SCADA) systems.
(2) The performance considerations for a new or replacement master
system must be approved by RUS. A master system includes the main
controller and related equipment at the main control point. Performance
considerations include all major system features and their
justification, including, but not limited to, the objectives of the
system, the types of parameters to be controlled or monitored, the
communication media, alternatives considered, and provisions for future
needs.
Sec. 1724.52 Permitted deviations from RUS construction standards.
The provisions of this section apply to all borrower electric
system facilities regardless of the source of financing.
(a) Structures for raptor protection. (1) RUS standard distribution
line structures may not have the extra measure of protection needed in
areas frequented by eagles and other large raptors to protect such
birds from electric shock due to physical contact with energized wires.
Where raptor protection in the design of overhead line structures is
required by RUS; a Federal, State or local authority with permit or
license authority over the proposed construction; or where the borrower
voluntarily elects to comply with the recommendations of the U.S. Fish
and Wildlife Service or State wildlife agency, borrowers are permitted
to deviate from RUS construction standards, provided:
(i) Structures are designed and constructed in accordance with
[[Page 35318]]
``Suggested Practices for Raptor Protection on Powerlines: The State of
the Art in 1996'' (Suggested Practices for Raptor Protection); and,
(ii) Structures are in accordance with the NESC and applicable
State and local regulations.
(2) Any deviation from the RUS construction standards for the
purpose of raptor protection, which is not in accordance with the
Suggested Practices for Raptor Protection, must be approved by RUS
prior to construction. ``Suggested Practices for Raptor Protection on
Powerlines: The State of the Art in 1996,'' published by the Edison
Electric Institute/Raptor Research Foundation, is hereby incorporated
by reference. This incorporation by reference is approved by the
Director of the Office of the Federal Register in accordance with 5
U.S.C. 552(a) and 1 CFR part 51. Copies of this publication may be
obtained from the Raptor Research Foundation, Inc., c/o Jim
Fitzpatrick, Treasurer, Carpenter Nature Center, 12805 St. Croix Trail
South, Hastings, Minnesota 55033. It is also available for inspection
during normal business hours at RUS, Electric Staff Division, 1400
Independence Avenue, SW., Washington, DC, Room 1246-S, and at the
Office of the Federal Register, 800 North Capitol Street, NW., Suite
700, Washington, DC.
(b) Transformer neutral connections. Where it is necessary to
separate the primary and secondary neutrals to provide the required
electric service to a consumer, the RUS standard transformer secondary
neutral connections may be modified in accordance with Rule 97D2 of the
NESC.
(c) Lowering of neutral conductor on overhead distribution lines.
(1) It is permissible to lower the neutral attachment on standard
construction pole-top assemblies an additional distance not exceeding
two feet (0.6 m) for the purpose of economically meeting the clearance
requirements of the NESC.
(2) It is permissible to lower the transformer and associated
neutral attachment up to two feet (0.6 m) to provide adequate clearance
between the cutouts and single-phase, conventional distribution
transformers.
(3) It is permissible to lower the neutral attachment on standard
construction pole-top assemblies an additional distance of up to six
feet (2 m) for the purpose of performing construction and future line
maintenance on these assemblies from bucket trucks designed for such
work.
Sec. 1724.53 Preparation of plans and specifications.
The provisions of this section apply to all borrower electric
system facilities regardless of the source of financing.
(a) General. (1) The borrower (acting through the engineer, if
applicable) shall prepare plans and specifications that adequately
represent the construction to be performed.
(2) Plans and specifications for distribution, transmission, or
generating facilities must be based on a construction work plan (as
amended, if applicable), engineering study or construction program
which has been approved by RUS if financing for the facilities will at
any time be requested from RUS.
(b) Composition of plans and specifications package. (1) Whether
built by force account or contract, each set of plans and
specifications must include:
(i) Distribution lines. Specifications and drawings, staking
sheets, key map and appropriate detail maps;
(ii) Transmission lines. Specifications and drawings, transmission
line design data manual, vicinity maps of the project, a one-line
diagram, and plan and profile sheets;
(iii) Substations. Specifications and drawings, including a one-
line diagram, plot and foundation plan, grounding plan, and plans and
elevations of structure and equipment, as well as all other necessary
construction drawings, in sufficient detail to show phase spacing and
ground clearances of live parts;
(iv) Headquarters. Specifications and drawings, including:
(A) A plot plan showing the location of the proposed building plus
paving and site development;
(B) A one line drawing (floor plan and elevation view), to scale,
of the proposed building with overall dimensions shown; and
(C) An outline specification including materials to be used (type
of frame, exterior finish, foundation, insulation, etc.); and
(v) Other facilities (e.g., generation and communications and
control facilities). Specifications and drawings, as necessary and in
sufficient detail to accurately define the scope and quality of work
required.
(2) For contract work, the appropriate standard RUS construction
contract form shall be used as required by part 1726 of this chapter.
Sec. 1724.54 Requirements for RUS approval of plans and
specifications.
The provisions of this section apply only to RUS financed electric
system facilities.
(a) For any contract subject to RUS approval in accordance with
part 1726 of this chapter, the borrower shall obtain RUS approval of
the plans and specifications, as part of the proposed bid package,
prior to requesting bids. RUS may require approval of other plans and
specifications on a case by case basis.
(b) Distribution lines. RUS approval of the plans and
specifications for distribution line construction is not required if
standard RUS drawings, specifications, RUS accepted material, and
standard RUS contract forms (as required by part 1726 of this chapter)
are used. Drawings, plans and specifications for nonstandard
distribution construction must be submitted to RUS and receive approval
prior to requesting bids on contracts or commencement of force account
construction.
(c) Transmission lines. (1) Plans and specifications for
transmission construction projects which are not based on RUS approved
line design data or do not use RUS standard structures must receive RUS
approval prior to requesting bids on contracts or commencement of force
account construction.
(2) Unless RUS approval is required by paragraph (a) of this
section, plans and specifications for transmission construction which
use previously approved design data and standard structures do not
require RUS approval. Plans and specifications for related work, such
as right-of-way clearing, equipment, and materials, do not require RUS
approval unless required by paragraph (a) of this section.
(d) Substations. (1)(i) Plans and specifications for all new
substations must receive RUS approval prior to requesting bids on
contracts or commencement of force account construction, unless:
(A) The substation design has been previously approved by RUS; and
(B) No significant NESC revisions have occurred.
(ii) The borrower shall notify RUS in writing that a previously
approved design will be used, including identification of the
previously approved design.
(2) Unless RUS approval is required by paragraph (a) of this
section, plans and specifications for substation modifications and for
substations using previously approved designs do not require RUS
approval.
(e) Generation facilities. (1) This paragraph (e) covers all
portions of a generating plant including plant buildings, the generator
step-up transformer, and the transmission
[[Page 35319]]
switchyard at a generating plant. Warehouses and equipment service
buildings not associated with generation plants are covered under
paragraph (f) of this section.
(2) The borrower shall obtain RUS approval, prior to issuing
invitations to bid, of the terms and conditions for all generating
plant equipment or construction contracts which will cost $1,500,000 or
more. Unless RUS approval is required by paragraph (a) of this section,
plans and specifications for generating plant equipment and
construction do not require RUS approval.
(f) Headquarters buildings. (1) This paragraph (f) covers office
buildings, warehouses, and equipment service buildings. Generating
plant buildings are covered under paragraph (e) of this section.
(2) The borrower shall obtain RUS approval of the plans and
specifications for all headquarters buildings prior to issuing
invitations to bid. The borrower shall also submit two copies of RUS
Form 740g, Application for Headquarters Facilities. The application
must show surface area and estimated cost breakdown between office
building space and space for equipment warehousing and service
facilities. This form is available from Program Development and
Regulatory Analysis, Rural Utilities Service, U.S. Department of
Agriculture, Stop 1522, 1400 Independence Ave., SW., Washington, DC
20250-1522.
(g) Communications and control facilities. (1) This paragraph (g)
covers microwave and powerline carrier communications systems, load
control, and supervisory control and data acquisition (SCADA) systems.
(2) The borrower shall obtain RUS approval, prior to issuing
invitations to bid, of the terms and conditions for communications and
control facilities contracts which will cost $500,000 or more. Unless
RUS approval is required by paragraph (a) of this section, plans and
specifications for communications and control facilities do not require
RUS approval.
(h) Terms and conditions include the RUS standard form of contract,
general and special conditions, and any other non-technical provisions
of the contract. Terms and conditions which have received RUS approval
in connection with a previous contract for a particular borrower are
considered approved by RUS for that borrower.
Sec. 1724.55 Dam safety.
(a) The provisions of this section apply only to RUS financed
electric system facilities.
(1) (i) Any borrower that owns or operates a RUS financed dam must
utilize the ``Federal Guidelines for Dam Safety,'' (Guidelines), as
applicable. A dam, as more fully defined in the Guidelines, is
generally any artificial barrier which either:
(A) Is 25 feet (8 m) or more in height; or
(B) Has an impounding capacity at maximum water storage elevation
of 55 acre-feet (68,000 m3) or more.
(ii) The ``Federal Guidelines for Dam Safety,'' FEMA 93, June,
1979, published by the Federal Emergency Management Agency (FEMA), is
hereby incorporated by reference. This incorporation by reference is
approved by the Director of the Office of the Federal Register in
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies of the
``Federal Guidelines for Dam Safety'' may be obtained from the Federal
Emergency Management Agency, Mitigation Directorate, PO Box 2012,
Jessup, MD 20794. It is also available for inspection during normal
business hours at RUS, Electric Staff Division, 1400 Independence
Avenue, SW., Washington, DC, Room 1246-S, and at the Office of the
Federal Register, 800 North Capitol Street, NW., Suite 700, Washington,
DC.
(2) The borrower shall evaluate the hazard potential of its dams in
accordance with Appendix E of the U.S. Army Corps of Engineers
Engineering and Design Dam Safety Assurance Program, ER 1110-2-1155,
July 31, 1995. A summary of the hazard potential criteria is included
for information as Appendix A to this subpart. The U.S. Army Corps of
Engineers Engineering and Design Dam Safety Assurance Program, ER 1110-
2-1155, July 31, 1995, published by the United States Army Corps of
Engineers, is hereby incorporated by reference. This incorporation by
reference is approved by the Director of the Office of the Federal
Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies
of the U. S. Army Corps of Engineers Engineering and Design Dam Safety
Assurance Program may be obtained from the U. S. Army Corps of
Engineers, Publications Depot, 2803 52nd Ave., Hyattsville,
MD 20781. It is also available for inspection during normal business
hours at RUS, Electric Staff Division, 1400 Independence Avenue, SW.,
Washington, DC, Room 1246-S, and at the Office of the Federal Register,
800 North Capitol Street, NW., Suite 700, Washington, DC.
(3) For high hazard potential dams, the borrower must obtain an
independent review of the design and critical features of construction.
The reviewer must have demonstrated experience in the design and
construction of dams of a similar size and nature. The reviewer must be
a qualified engineer not involved in the original design of the dam or
a Federal or State agency responsible for dam safety. The reviewer must
be approved by RUS.
(4) The independent review of design must include, but not
necessarily be limited to, plans, specifications, design calculations,
subsurface investigation reports, hydrology reports, and redesigns
which result from encountering unanticipated or unusual conditions
during construction.
(5) The independent review of construction shall include:
(i) Foundation preparation and treatment. When the foundation has
been excavated and exposed, and before critical structures such as
earth embankments or concrete structures are placed thereon, the
borrower shall require the reviewer to conduct an independent
examination of the foundation to ensure that suitable foundation
material has been reached and that the measures proposed for treatment
of the foundation are adequate. This examination must extend to the
preparation and treatment of the foundation for the abutments.
(ii) Fill placement. During initial placement of compacted fill
materials, the borrower shall require the reviewer to conduct an
independent examination to ensure that the materials being used in the
various zones are suitable and that the placement and compaction
procedures being used by the contractor will result in a properly
constructed embankment.
(6) If the reviewer disagrees with any aspect of the design or
construction which could affect the safety of the dam, then the
borrower must meet with the design engineer and the reviewer to resolve
the disagreements.
(7) Emergency action plan. For high hazard potential dams, the
borrower must develop an emergency action plan incorporating preplanned
emergency measures to be taken prior to and following a potential dam
failure. The plan should be coordinated with local government and other
authorities involved with the public safety and be approved by the
borrower's board of directors.
(b)(1) For more information and guidance, the following
publications regarding dam safety are available from FEMA:
(i) ``Emergency Action Planning Guidelines for Dams,'' FEMA 64.
[[Page 35320]]
(ii) ``Federal Guidelines for Earthquake Analysis and Design of
Dams,'' FEMA 65.
(iii) ``Federal Guidelines for Selecting and Accommodating Inflow
Design Floods for Dams,'' FEMA 94.
(iv) ``Dam Safety: An Owner's Guidance Manual,'' FEMA 145, August,
1987.
(2) These publications may be obtained from the Federal Emergency
Management Agency, Mitigation Directorate, PO Box 2012, Jessup, MD
20794.
Secs. 1724.56--1724.69 [Reserved]
Appendix A to Subpart E of Part 1724--Hazard Potential
Classification for Civil Works Projects
The source for this appendix is U. S. Army Corps of Engineers
Engineering and Design Dam Safety Assurance Program, ER 1110-2-1155,
Appendix E. Appendix E is available from the address listed in
Sec. 1724.55(a)(2).
----------------------------------------------------------------------------------------------------------------
Category \1\ Low Significant High
----------------------------------------------------------------------------------------------------------------
Direct Loss of Life \2\.......... None expected (due to Uncertain (rural Certain (one or more
rural location with no location with few extensive residential,
permanent structures for residences and only commercial or
human habitation). transient or industrial industrial
development). development).
Lifeline Losses \3\.............. No disruption of Disruption of essential Disruption of critical
services--repairs are facilities and access. facilities and access.
cosmetic or rapidly
repairable damage.
Property Losses \4\.............. Private agricultural Major public and private Extensive public and
lands, equipment and facilities. private facilities.
isolated buildings.
Environmental Losses \5\......... Minimal incremental Major mitigation Extensive mitigation
damage. required. cost or impossible to
mitigate.
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Categories are based upon project performance and do not apply to individual structures within a project.
\2\ Loss of life potential based upon inundation mapping of area downstream of the project. Analysis of loss of
life potential should take into account the extent of development and associated population at risk, time of
flood wave travel and warning time.
\3\ Indirect threats to life caused by the interruption of lifeline services due to project failure, or
operation, i.e., direct loss of (or access to) critical medical facilities or loss of water or power supply,
communications, power supply, etc.
\4\ Direct economic impact of value of property damages to project facilities and down stream property and
indirect economic impact due to loss of project services, i.e., impact on navigation industry of the loss of a
dam and navigation pool, or impact upon a community of the loss of water or power supply.
\5\ Environmental impact downstream caused by the incremental flood wave produced by the project failure, beyond
which would normally be expected for the magnitude flood event under a without project conditions.
Subpart F--RUS Contract Forms
Sec. 1724.70 List of RUS contract forms for architectural and
engineering services.
The following RUS contract forms for architectural and engineering
services are available:
(a) RUS Form 179, Rev. 9-66, Architects and Engineers
Qualifications (optional form);
(b) RUS Form 211, Rev. 6-98, Engineering Service Contract for the
Design and Construction of a Generating Plant (required form);
(c) RUS Form 215, Rev. 5-67, Engineering Service Contract--System
Planning (optional form);
(d) RUS Form 220, Rev. 6-98, Architectural Services Contract
(required form);
(e) RUS Form 234, Rev. 3-57, Final Statement of Engineering Fee
(optional form);
(f) RUS Form 236, Rev. 6-98, Engineering Service Contract--Electric
System Design and Construction (required form);
(g) RUS Form 241, Rev. 3-56, Amendment of Engineering Service
Contract (optional form);
(h) RUS Form 244, Rev. 12-55, Engineering Service Contract--Special
Services (optional form);
(i) RUS Form 258, Rev. 4-58, Amendment of Engineering Service
Contract--Additional Project (optional form);
(j) RUS Form 284, Rev. 284, Final Statement of Cost for
Architectural Service (optional form);
(k) RUS Form 297, Rev. 12-55, Engineering Service Contract--
Retainer for Consultation Service (optional form); and
(l) RUS Form 459, Rev. 9-58, Engineering Service Contract--Power
Study (optional form).
Sec. 1724.71 Use of printed forms
(a) Persons wishing to obtain forms referred to in this part should
contact: Program Development and Regulatory Analysis, U.S. Department
of Agriculture, Stop 1522, 1400 Independence Ave., SW., Washington, DC
20250-1522. These forms may be reproduced as needed.*
(b) If a RUS contract form is required by this part, the borrower
shall use the form in the format available from RUS (photocopying or
other exact reproduction is acceptable.) The RUS contract forms are not
to be retyped, changed, modified, or altered in any manner not
specifically authorized in this part or approved by RUS in writing. Any
modifications approved by RUS must be clearly shown indicating that
they are different from the standard form.
Secs. 1724.72--1724.73 [Reserved]
Sec. 1724.74 Engineering service contract for the design and
construction of a generating plant, RUS Form 211.
The contract form in this section shall be used when required by
this part.
ENGINEERING SERVICE CONTRACT FOR THE DESIGN AND CONSTRUCTION OF A
GENERATING PLANT
AGREEMENT, made ________, ________, between ________
(hereinafter called the ``Owner'') and ________ of ________
hereinafter called the ``Engineer'').
Whereas, the Administrator of the Rural Utilities Service
(hereinafter called the ``Administrator'') of the United States of
America (hereinafter called the ``Government'') has approved the
making of a loan or loan guarantee of not in excess of $________ by
the Government to the Owner pursuant to the Rural Electrification
Administration Act of 1936, as amended, approximately $________ of
which is intended to finance, in whole or in part, the construction
and operation of an electrical generating plant which is estimated
to cost $________ and consists of ________ in the State of ________,
having the Rural Utilities Service project designation of ________,
(hereinafter called the ``Project''), located at such place as the
Owner with the approval of the Administrator shall designate;
Now, therefore, in consideration of the mutual undertakings
herein contained, the parties hereto agree as follows:
[[Page 35321]]
Article I
General Obligation of Engineer
In accordance with the normal standards and practices used in
the profession, the Engineer shall diligently and competently render
all engineering services which shall be necessary or advisable for
the expeditious, economical, and sound design and construction of
the Project with due consideration to applicable ecological and
environmental requirements. The enumeration of specific duties and
obligations to be performed by the Engineer hereunder shall not be
construed to limit the general undertakings of the Engineer.
Article II
Design of Project
Section 1. The Engineer shall prepare and within ________ days
after the approval hereof by the Administrator submit in duplicate
to the Owner for approval and to the Administrator for approval, if
approval of the Administrator is required, a ``Project Design
Manual'' which shall consist of, but not necessarily be limited to,
the following items:
(a) A detailed statement covering the procedures to be followed
by the Engineer in the performance of this Agreement, including,
without limitation, such matters as the routing and distribution of
copies of correspondence and reports, the furnishing of lists of
plans and specifications, procedures relating to the awarding of
construction and equipment contracts, identification of persons to
be called by telephone with respect to various subject matters,
contract closeouts, and meetings.
(b) A design outline which includes all design criteria for the
Project, including, without limitation, plant site, equipment,
building requirements, environmental equipment and other
environmental factors, civil, electrical, and mechanical
requirements. The outline shall comply with the requirements of RUS
Environmental Policies and Procedures.
(c) Evaluation studies which support the economic basis for the
design and selection of equipment, including, without limitation,
turbine throttle and exhaust conditions, boiler feed pump, air
quality equipment, and condenser.
(d) Testing procedures which outline the responsibilities to be
assumed by the Owner, Engineer, and contractor and include, without
limitation, acceptance testing, concrete tests, laboratory testing,
radiographic inspection, electrical checkout, and testing.
Section 2. In addition, the Engineer shall prepare and within
________ days after the approval hereof by the Administrator submit
in duplicate to the Owner for approval and to the Administrator for
approval, if approval of the Administrator is required, preliminary
plans (hereinafter called the ``Preliminary Plans'') which shall
consist of:
(a) A single-line diagram of proposed main and auxiliary
electrical connections, including all major equipment, switching and
substations.
(b) A single-line flow diagram of proposed steam, water, gas,
oil, and air connections, including all major equipment.
(c) A schedule, in a form acceptable to the Owner and
Administrator, showing by months the estimated time required for
each major subdivision of the Project for design, fabrication, and
installation, and the estimated date the project will be available
for commercial service. Such schedule shall specify, in percentages,
the portion of the total design performance of the Engineer under
this Agreement which each item of design represents.
(d) The Engineer's estimate of the total cost of the completed
Project, by components, together with the forecast of the amounts of
money needed by the Owner each month until completion of the
Project.
Section 3. Promptly upon receipt of approval by the Owner and by
the Administrator, if the approval of the Administrator is required,
of the Project Design Manual and Preliminary Plans, the Engineer
shall proceed with preparation of and shall submit, in duplicate, to
the Owner and to the Administrator, if approval of the Administrator
is required, complete and detailed plans and specifications,
drawings, maps, and other engineering documents required for the
construction of the Project (all of the foregoing being hereinafter
sometimes collectively called the ``Plans and Specifications''). In
the preparation of the Plans and Specifications, the Engineer shall
consult with the Owner to the end that the Project shall serve the
purposes intended by the Owner. The Engineer shall diligently make
such necessary changes in the Plans and Specifications as may be
required by the Owner and the Administrator. The Plans and
Specifications shall include the following:
(a) Detailed drawings showing the complete design and layout of
the Project.
(b) The form of construction contract (hereinafter called the
``Construction Contract'') to be entered into between the Contractor
and Owner for the construction of the Project, including forms of
notice and instructions to bidders, material and construction
specifications, contractor's proposal, bidder's qualifications,
contractor's bond, and construction drawings. If the Owner or the
Administrator shall direct that the Project shall be constructed
under more than one contract, the Engineer shall submit forms of all
necessary Construction Contracts and shall also prepare and submit
in connection with each such contract all that is hereinabove
required of the Engineer in connection with the Construction
Contract. All maps, drawings, plans, specifications, estimates, and
other documents required to be prepared or submitted by the Engineer
under this section or other sections of the Agreement shall conform
to applicable environmental requirements related to the project,
including those commitments contained in the RUS Final Environmental
Statement, standard specifications, and other forms prescribed by
the Administrator, unless deviation therefrom shall be permitted by
the Administrator in writing.
Section 4. The Engineer shall also proceed to procure and submit
to the Owner and to the Administrator, if approval of the
Administrator is required, forms of other contracts and documents
for the equipment and materials proposed to be purchased by the
Owner for use in connection with the construction of the Project or
any services necessary or desirable in connection therewith.
Section 5. The Engineer, immediately upon receipt of notice from
the Owner and from the Administrator, if approval of the
Administrator is required, of their approval for bidding purposes of
the form of Construction Contract or any contracts for materials,
equipment, and services, as the case may be, shall, unless otherwise
instructed by the Owner with the prior approval of the
Administrator, take all appropriate and necessary action to procure
full, free, and competitive bidding for the award of such contracts.
In fulfilling this responsibility, the Engineer shall prepare and
submit to the Owner for approval a recommended bidders' list. Upon
approval of such list by the Owner, the Engineer, in collaboration
with the Owner, shall fix a date for the opening of bids for such
contracts. The Engineer shall be available to each prospective
bidder for consultation with respect to the details of the Plans and
Specifications and all other matters pertaining to the preparation
of the Proposals for the construction of the Project or the supply
of materials, equipment, or services therefor.
Section 6. The Engineer shall attend all openings of bids for
the construction of the Project, or any part thereof, or for the
furnishing of materials, equipment, and services therefor. In case
fewer than three (3) bids are received for the construction of the
Project or component parts of the Project, the Owner shall be
notified immediately and such bids shall remain unopened unless
permission is obtained from the Owner for the opening of such bids.
If bids are opened, the Engineer shall carefully check and prepare
tabulations of all bids received and shall render to the Owner all
such assistance as shall be required in connection with
consideration of the bids so that contracts may be prudently and
properly awarded. The Engineer shall submit in writing to the Owner
its first, second, and third choice of bidders, materials, and
equipment to be used in each case, with its recommendation and
reasons for the selection. When the Owner has indicated its choice
of bidders, materials, and equipment, the Engineer shall forward a
tabulation of the bids, copies of the recommendation, and the
Owner's selection to the Administrator, if approval of the
Administrator is required. If requested by the Administrator, the
Engineer shall forward one complete copy of all original bids
received. Upon approval by the Administrator, if approval of the
Administrator is required, of the selection of a bidder, materials,
and equipment, the Engineer shall prepare three counterparts of the
contract to be executed by the Owner and the Contractor and shall
forward such executed counterparts to the Administrator for
approval, if approval of the Administrator is required.
Section 7. The Engineer shall furnish to the Owner all
engineering information, services, data, and drawings required for
procuring all necessary or desirable permits, licenses, franchises,
titles, rights, and authorizations
[[Page 35322]]
and shall cooperate with the Owner's attorney in the procuring
thereof.
Article III
Construction Management
Section 1. The Engineer shall supervise the construction of the
Project and shall make a diligent effort to ensure the expeditious
and economical construction thereof in accordance with the Plans and
Specifications and the terms of the Construction Contract and
equipment or material contracts and the loan contract (hereinafter
called the ``Loan Contract'') entered into between the Owner and the
Government or any other lenders specifying the terms upon which the
Project shall be constructed and financed. The Engineer shall
carefully inspect all materials and equipment prior to their
incorporation in the Project and shall promptly reject those not in
compliance with the Specifications. The Engineer shall also
supervise and inspect the incorporation of the materials in the
Project and the workmanship with which such materials are
incorporated. The Engineer, as representative of the Owner, shall
have sole responsibility for requiring the Contractor to perform the
Construction Contract in accordance with its terms and the Plans and
Specifications, and, in performing the duties incident to such
responsibility, the Engineer shall issue to the Contractor such
directives and impose such restrictions as may be required to obtain
reasonable and proper compliance by the Contractor with the terms of
the Construction Contract and the Plans and Specifications in the
construction of the Project; provided that the Engineer shall not be
required to exercise any actual control over employees of the
Contractor. The term ``supervise'' when used herein shall not confer
upon the Engineer responsibility for the Contractor's construction
means, methods, or techniques. The obligations of the Engineer
hereunder run to and are for the benefit of only the Owner and the
Administrator.
Section 2. If, after the Construction Contract has been approved
by the Administrator, if approval of the Administrator is required,
it shall be determined that any change or changes in the Plans and
Specifications are advisable, the Engineer shall prepare and submit
to the Owner and the Contractor all necessary details in connection
with such change or changes. The execution of such changes by the
Engineer shall be within the intent of the Engineer's general
undertakings as outlined elsewhere in this contract. Upon approval
of the change or changes by the Owner and the Contractor, the
proposed change or changes shall be submitted by the Engineer to the
Administrator, if approval of the Administrator is required, in the
form of a contract amendment.
Section 3. The Engineer shall prepare all estimates,
certificates, reports, and other documents required to be executed
by the Engineer pursuant to the terms of the Construction Contract,
equipment or material contracts, or the Loan Contract. When any bid
specification is forwarded to RUS for review, an updated cost
estimate for the proposed contract shall also be included. After all
major equipment contracts have been awarded and all permits have
been received, and after approximately forty percent (40%) of the
project design has been completed and construction has commenced,
the Engineer shall update, on a quarterly basis, unless more
frequently requested by the Owner, the information required under
Article II, Section 2(d) hereof.
Section 4. The Engineer shall, upon completion of construction
of component parts of the Project, make a complete inspection and
conduct, utilizing the Owner's operating personnel and/or the
manufacturer's representatives, such component and system tests as
shall be necessary to assure conformance with the Plans and
Specifications, the standards required by the Construction Contract,
equipment and materials contracts, and the guarantees given in
connection therewith.
Section 5. The Engineer shall schedule and coordinate the start-
up activities for placing the plant in service. This shall include
preparation of system operating schedules, written system start-up
procedures, and operating manuals describing the various plant
systems and operating procedures.
Section 6. The Engineer shall prepare written procedures for
final acceptance tests of major equipment, such procedures being
subject to the Owner's concurrence. Furthermore, the Engineer shall
conduct, utilizing the Owner's operating personnel, final acceptance
tests of major equipment. Such tests shall be made in the presence
of duly qualified representatives of the Owner and the
Administrator, if the Administrator elects to attend, and the time
and procedure of such tests shall be agreed upon by the Engineer,
the Owner, and the Administrator. After completion of each final
acceptance test, the Engineer shall prepare copies of the test
results and recommendations as to acceptability of equipment and
submit them to the Owner for review.
Section 7. A competent resident engineer with full authority to
act for the Engineer shall be maintained by the Engineer at the site
of the Project during the entire period of any construction
activity. The Engineer shall maintain at the site of the Project and
under the direct supervision of the resident engineer a sufficient
number of qualified engineering field inspectors to fully discharge
the responsibilities of the Engineer pursuant to Article III,
Section 1 hereof.
Article IV
Final Documents
The Engineer shall, upon the completion of the inspection and
tests in respect of the Project provided in Sections 4 and 6 of
Article III, obtain or prepare and deliver to the Owner the
following:
(a) A nameplate inventory and summary in triplicate of all
equipment and facilities incorporated in the Project together with a
breakdown of contract costs arranged by Standard List of Retirement
Units, RUS Bulletin 181-2.
(b) Two complete sets of final inventory (record) drawings
showing the location and layout of the Project in accordance with
revisions to design drawings and field records of construction. All
information required by this Agreement to be included in the maps
and drawings shall be included in the record drawings. One complete
set of the record drawings shall be in reproducible form
satisfactory to the Owner. The Engineer shall also provide the Owner
with any other original manufacturer's equipment drawings not
otherwise available to the Owner.
(c) An itemized statement in triplicate of the amounts payable
by the Owner under all contracts for the construction of the Project
and the furnishing of materials, equipment, and services thereof.
(d) A certificate in triplicate to the effect that the Project
has been fully constructed substantially in accordance with the
Plans and Specifications if and as amended.
(e) A detailed report in duplicate of all tests, in a form
satisfactory to the Owner.
(f) All maps, tracings, and drawings prepared or used by the
Engineer in connection with the performance of the duties of the
Engineer under this Agreement.
(g) Operating and maintenance manuals received from
manufacturers.
When the Owner has determined that the Project is available for
commercial service, the Engineer shall report to the Owner and the
Administrator, for depreciation purposes, the estimated total
contract cost of the Project, plus the Owner's other related
overhead cost, as obtained from the Owner, showing as a separate
item the cost of land (a non-depreciable item).
Article V
Compensation
Section 1. The Owner shall pay the Engineer for the services
performed hereunder as indicated in the attached Schedule A.
Section 2. The total compensation to be paid in connection with
this Agreement shall not exceed $________ (________ Dollars.)
Section 3. The Engineer shall submit to the Owner each month a
certified statement in duplicate of the amounts due for services
hereunder, which statement shall be in accordance with the
applicable reports of engineering progress required by Article VI,
Section 1 hereof, and shall be in such detail and contain such
supporting data as the Owner may request. The Owner shall review and
approve each statement within thirty (30) days or inform the
Engineer of the reasons the statement cannot be approved. Upon
approval of each such statement by the Owner, ninety (90) percent of
the amount thereof shall be due and payable. The balance of the
compensation payable under Section 1 hereof shall be due and payable
within thirty (30) days after completion of the Project. The Project
shall be deemed complete for the purposes of the Agreement when all
required final documents, including a certificate of completion,
have been submitted by the Engineer and approved by the Owner and by
the Administrator, if approval of the Administrator is required.
Section 4. In the event that this Agreement at any time be
terminated pursuant to Article VI, Section 2 hereof, the
compensation which shall be payable by the Owner to the Engineer for
services rendered prior to such termination shall be computed as
follows:
(a) Compensation for services in respect of the Design of the
Project shall be determined
[[Page 35323]]
in accordance with Section 1 of this Article V, using the final
report of engineering progress referred to in Article VI, Section 1
hereof to determine the percentage of completion of the services in
respect of design of the Project as of the effective date of
termination.
(b) Compensation for services in respect of supervision and
inspection of construction of the Project and all other services
shall be computed at the rate of $________ per staff hour of
supervision and inspection of construction performed by the Engineer
prior to the effective date of termination, but in no event shall
such compensation exceed an amount computed in accordance with the
provisions of Section 1 of this Article V. The Engineer shall submit
to the Owner, in duplicate, a statement of the staff hours of
supervision and inspection of construction in such detail and with
such supporting data as may be requested by the Owner.
Section 5. Compensation payable to the Engineer under any of the
Articles of this Agreement shall be in addition to taxes or levies
(excluding Federal, State, and Local Income Taxes) which may be
assessed against the Engineer by any State or political subdivision
directly on services performed or payments for services performed by
the Engineer pursuant to this Agreement. Such taxes or levies which
the Engineer may be required to collect or pay, shall, in turn, be
added by the Engineer to invoices submitted to the Owner pursuant to
this Agreement.
Section 6. At or prior to the time when any payments shall be
made to the Engineer pursuant to this Agreement, the Engineer if
requested by the Owner shall furnish to the Owner, as a condition
precedent to such payment, a certificate to the effect that all
salaries or wages earned by the employees of the Engineer in
connection with the Project have been fully paid by the Engineer up
to and including a date not more than fifteen (15) days prior to the
date when such payment shall be made. At or before the time when the
final payment provided to be made hereunder shall be made to the
Engineer by the Owner, the Engineer shall also furnish to the Owner,
as a condition precedent to such payment, a certificate in form
satisfactory to the Administrator that all the employees of the
Engineer have been paid for services rendered by them in connection
with the Project and that all other obligations which might become a
lien on the Project have been paid.
Section 7. Interest at the rate of ________ percent ( ________
%) per annum [percentage is not to exceed any applicable State usury
laws] shall be paid by the Owner to the Engineer on all unpaid
balances due the Engineer, commencing thirty (30) days after the due
date, provided that the delay in payment beyond the due date shall
not have been caused by any condition within the control of the
Engineer. Such compensation shall be paid ten (10) days after the
amount of the interest has been determined by the Engineer and the
Owner.
Article VI
Miscellaneous
Section 1. The Engineer shall prepare and execute in such form
and detail as the Owner and the Administrator shall direct all
estimates, certificates, reports, and other documents required to be
executed by the Engineer pursuant to the Construction Contract or
the Loan Contract, including, without limitation, a monthly report
of engineering progress on the form of schedule referred to in
Article II, Section 2(c) hereof, showing the percentage of
completion of each of the subdivisions thereof and the overall
percentage of completion of engineering services in respect of the
design and construction of the Project as of the date of each such
report; Monthly Cost Estimates and Forecasts of Cash Requirements in
the form referred to in Article II, Section 2(d) hereof, which shall
contain explanations of changes, if any, from prior Monthly Cost
Estimates and Forecasts of Cash Requirements. From time to time the
Engineer shall prepare and submit to the Owner for approval and to
the Administrator for approval, if approval of the Administrator is
required, all necessary changes in the schedule referred to in
Article II, Section 2(c) hereof; provided, however, that no changes
shall be made in the percentages assigned to each item of design in
the original schedule approved by the Owner and by the
Administrator, if approval of the Administrator is required,
pursuant to Article II, Section 2(c) hereof.
Section 2. The Owner may at any time terminate this Agreement by
giving notice to the Engineer in writing to that effect, delivered
or mailed to the Engineer's last known address not less than twelve
(12) calendar days prior to the effective date of termination
specified in the notice. From and after the effective date specified
in such notice, this Agreement shall be terminated, except that the
Engineer shall be entitled to receive compensation for services
hereunder as provided in Section 3 of Article V hereof, and the
Engineer shall be obligated forthwith to deliver to the Owner all
maps, tracings, and drawings of the Project and all other letters,
documents, and other material including all records pertaining
thereto. If this Agreement shall be terminated, the Engineer shall
prepare and submit to the Owner and the Administrator a final report
of engineering progress as of the date of termination.
Section 3. Insurance. The Engineer shall take out and maintain
throughout the period of this Agreement insurance of the following
types and minimum amounts:
(a) Workers' compensation and employers' liability insurance, as
required by law, covering all of the Engineer's employees who
perform any of the obligations of the Engineer under the Agreement.
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
Agreement 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 Agreement, 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.
(d) Errors and Omissions (Professional Liability) Insurance in
an amount at least as large as the maximum compensation specified in
Article V, Section 2, but not less than $500,000.
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
total compensation to be paid under this Agreement.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Engineer
shall furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than thirty (30)
days prior written notice to the Owner of any cancellation or
material change in the insurance.
The Engineer shall also follow the requirements of 7 CFR part
1788, RUS Fidelity and Insurance Requirements for Electric and
Telephone Borrowers.
Section 4. The obligations and duties to be performed by the
Engineer under this Agreement shall be performed by persons
qualified to perform such duties efficiently. The Engineer, if the
Owner shall so direct in writing, shall replace any resident
engineer or other persons employed by the Engineer in connection
with the Project. For the information of the Owner and the
Administrator, the Engineer shall file with the Owner and the
Administrator a statement, signed by the Engineer, of the
qualifications, including specific experience of each engineer and
inspector assigned to the Project and the duties assigned to each.
Section 5. Approvals, directions, and notices provided to be
given hereunder by the Administrator to the Engineer or the Owner
shall be deemed to be properly given if given by the Administrator
or by any person authorized by the Administrator to give such
approvals, directions, or notices.
Section 6. The Engineer shall follow all applicable RUS rules
and regulations.
Section 7. This Agreement may be simultaneously executed and
delivered in three or more counterparts, each of which so executed
and delivered shall be deemed to be
[[Page 35324]]
an original, and all constitute but one and the same instrument.
Section 8. The obligations of the Engineer under this Agreement
shall be assigned without the approval in writing of the Owner and
of the Administrator.
Section 9. This Agreement shall be effective only from and after
the time when it shall be approved by the Administrator in writing.
Neither this Agreement nor any provision thereof shall be modified,
amended, rescinded, waived, or terminated without the approval of
the Administrator.
Section 10. The Engineer shall comply with applicable statutes
pertaining to engineering and warrants that ________ (Name of
Engineer) who will be in responsible charge of the Project possesses
license number ________ issued by the State of ________ on the
________ day of ________, ______.
In witness whereof, the parties hereto have caused this
Agreement to be duly executed.
________ Owner
By ________ President
ATTEST: ________ Secretary
________ Engineer
________ President, Partner [Strike out inapplicable designation.]
ATTEST: ________ Secretary
Schedule A--Compensation
[End of clause]
Sec. 1724.75 Architectural service contract, RUS Form 220.
The contract form in this section shall be used when required by
this part.
ARCHITECTURAL SERVICES CONTRACT
AGREEMENT, made ________, ________, between ________
(hereinafter called the ``Owner'') and ________ of ________
(hereinafter called the ``Architect'').
Whereas, the Owner owns and operates a rural electric or
telecommunications system, having the Rural Utilities Service
designation of ________, financed in whole or in part with loans
made or guaranteed by the United States of America acting through
the Administrator of the Rural Utilities Service (hereinafter called
the ``Administrator''). If the project is financed wholly or in part
by the Rural Telephone Bank, an agency of the United States of
America, the references in this Agreement to the ``Administrator''
shall mean the ``Governor'' of the Rural Telephone Bank as well; and
Whereas, the Owner desires to ________ (hereinafter called the
``Project'') at an estimated cost of construction not to exceed:
________ dollars ($________) for new work, and/or ________ dollars
($________) for remodeling, which aggregate ________ dollars
($________), hereinafter called the ``Anticipated Cost,'' is
exclusive of the cost of land, legal, architectural, accounting, or
other professional services, or of interest.
Now, therefore, in consideration of the mutual undertakings
herein contained, the parties hereto agree as follows:
Article I
General Obligation of Architect
The Architect shall render, diligently and competently in
accordance with the normal standards used in the profession, all
architectural services which shall be necessary or advisable for the
expeditious, economical, and sound design, construction, and
satisfactory completion of the Project. The enumeration of specific
duties and obligations to be performed by the Architect hereunder
shall not be construed to limit the general undertakings of the
Architect. The obligations of the Architect hereunder run to, and
are for the benefit of, only the Owner and the Administrator and
shall not relieve the Contractor of its own responsibility under its
agreement with the Owner.
Article II
Preconstruction Period
Section 1.
(a) The Architect shall prepare: (1) preliminary drawings, (2) a
general description of materials and types of construction, and (3)
an overall estimate of the cost of construction (all of the
foregoing hereinafter collectively called the ``Preliminary
Documents''), and not later than ________ days after the date of
execution of this Agreement, shall submit them in triplicate to the
Owner for approval. Any changes in the Preliminary Documents
required as a condition of approval shall be promptly made by the
Architect.
(b) After receipt of notice of approval of the Preliminary
Documents from the Owner, the Architect will proceed with the
preparation of:
(1) Detailed plans showing the complete design of the Project
including, but not limited to, architectural, structural,
electrical, mechanical, and site development features.
(2) Complete and detailed specifications describing the design
requirements of the Project, including all matters referred to in
subparagraph (1) above, and any materials to be incorporated
therein.
(3) The Construction Contract, RUS Form 257, ``Contract to
Construct Buildings,'' (hereinafter called the ``Construction
Contract''), which includes the Notice and Instructions to Bidders,
Bid Bond, Bidders' Proposal, Owners' Acceptance, and Contractors'
Bond, to be entered into between a bidder and the Owner for the
construction of the Project. (All of the foregoing, including any
revisions thereof, being hereinafter collectively called the ``Plans
and Specifications.'')
Within ________ days after receipt of such approval of the
Preliminary Documents, the Architect shall prepare and submit to the
Owner, in duplicate, for its approval, complete and detailed
``Final'' Plans and Specifications as required for the construction
of the Project. All documents required to be prepared and submitted
by the Architect hereunder shall be on the applicable standard forms
prescribed by the Administrator. In the preparation of the Plans and
Specifications, the Architect shall consult with the Owner to
ascertain the requirements of the project. Upon approval by the
Owner of the Plans and Specifications, such approval being noted
thereon under the corporate seal of the Owner attesting the approval
thereof by the Owner, the Architect shall diligently make such
changes in the Plans and Specifications as may be required as a
condition of approval thereof.
Section 2. So far as it shall be necessary in the preparation of
the Plans and Specifications and in the construction of the Project,
the Owner shall furnish the Architect information and data in
respect of the following:
(a) A complete and accurate survey of the building site,
including grades and lines of streets, pavements, and adjoining
properties;
(b) The rights, restrictions, easements, boundaries, and
contours of the building site;
(c) Sewer, water, gas, electric, and telephone service, etc.;
and
(d) Test borings and pits, and chemical, mechanical, and other
tests.
Section 3. If the Owner shall direct that the Project shall be
constructed under more than one contract, the Architect shall submit
all necessary Construction Contract forms and shall also prepare and
submit in connection with each such contract all of the information
and documents that shall be required for construction of the
Project.
Section 4. Immediately after the Architect has received approval
of the Plans and Specifications from the Owner, the Architect,
unless otherwise instructed by the Owner, shall take all appropriate
and necessary action to procure full, free, and competitive bidding
for the award of the Construction Contract. Any public notices which
by law are required of the Owner shall be published at the expense
of the Owner.
Section 5. The Architect shall prepare and furnish to each
qualified bidder requesting them one set of the Plans and
Specifications together with all necessary forms and other documents
upon payment of the amount stipulated by the Architect, which
payment will be refunded to each bona fide bidder within ten (10)
days after the bid opening. The Architect shall also prepare and
furnish to bidders requesting them additional sets of the Plans and
Specifications together with all necessary forms and other documents
upon payment of an amount stipulated by the Architect, which payment
will not be subject to refund.
Section 6. The Architect shall address to each prospective
bidder a written response to inquiries from any prospective bidder
with respect to the details of the Plans and Specifications and all
other matters pertaining to the preparation of proposals for the
construction of the Project or the furnishing of materials or
services therefor. Under some circumstances the Architect may
request that the inquiries from the prospective bidders be submitted
in writing. The Architect or a competent representative of the
Architect shall attend all openings of bids for the construction of
the Project or any part thereof. In case fewer than three (3) bids
are received for the construction of the Project or component parts
of the Project, the Owner shall be notified immediately and such
bids shall remain unopened unless permission is obtained from the
Owner for the opening of such bids. If bids are opened, the
Architect shall carefully check and
[[Page 35325]]
prepare tabulations of all bids received and shall render to the
Owner a recommendation and all such assistance as shall be required
in connection with consideration of the bids received so that
contracts may be prudently awarded in accordance with the policy and
procedure prescribed by the Owner and the Administrator.
Section 7. The Architect shall furnish to the Owner all
architectural information, data, and drawings required for procuring
all necessary or desirable permits, licenses, franchises, and
authorizations, and shall cooperate with the Owner's attorney in the
procuring thereof.
Section 8. If, after the Construction Contract has been
approved, it shall be determined by the Owner that a change or
changes in the Plans and Specifications are advisable, the Architect
shall prepare and submit to the Owner all necessary details in
connection with such change or changes, the Construction Contract
shall be amended accordingly, and the Architect shall immediately
proceed in respect of any construction required thereby in like
manner as though such construction were originally required under
the Construction Contract.
Article III
Construction Period
Section 1. The Architect shall conduct inspection activities,
and for projects involving multiple construction contracts, shall
provide project coordination and inspection activities, and shall
make a diligent effort to secure for the Owner the expeditious and
economical construction of the Project in accordance with the
approved Plans and Specifications and the terms of the Construction
Contract. The Architect, unless otherwise directed in writing by the
Owner, shall have and exercise sole responsibility for the issuance
of supplemental directives to the Contractor regarding the
Contractor's performance in accordance with the terms of the
Construction Contract. In fulfilling the above responsibility, the
Architect shall:
(a) Issue to the Contractor such directives and impose such
restrictions as may be necessary to obtain reasonable and proper
compliance by the Contractor with the terms of the Construction
Contract and the Plans and Specifications.
(b) Visit the Project site at intervals appropriate to the stage
of construction, but in no event (except for periods of prolonged
work stoppage or construction delay) less than once per week, to
inspect construction of the Project, to inspect excavations prior to
placing of concrete, and to inspect other work prior to it being
covered from view.
(c) Make recommendations to the Owner concerning the selection
of materials, colors, finishes, designs, or devices for use in the
Project.
(d) Periodically inspect materials prior to their incorporation
into the Project and promptly reject those not in compliance with
the Specifications.
(e) Observe the manner of incorporation of materials into the
Project and the workmanship with which such materials are
incorporated.
(f) Review and if acceptable approve material and/or equipment
substitutions for compliance with contract documents.
(g) Observe results of specified tests.
(h) Be available to the Owner and the Contractor during office
hours for consultation.
(i) Review completed construction, direct the Contractor to
correct observed defects, and approve payments to the Contractor for
correctly completed construction.
(j) Prepare such change orders as may be required for the
Project.
Section 2. The Architect shall review and, if acceptable,
approve shop drawings, samples, schedules, and other submissions of
the Contractor for conformance with the design concept of the
Project and for compliance with requirements of the Plans and
Specifications.
Section 3. The Architect shall prepare and execute all
estimates, certificates, and other documents required to be executed
by the Architect pursuant to the Construction Contract. Unless
otherwise provided in the Construction Contract, the Architect will
furnish to the Contractor, free of charge, copies of the Plans and
Specifications as may be reasonably necessary for the execution of
the work.
Section 4. The Architect shall prepare and submit to the Owner
monthly construction progress reports.
Section 5. The Architect shall, upon notice by the Contractor of
completion of the work and a request for a final inspection of the
Project:
(a) Make a careful and thorough inspection to determine that the
construction of the Project has been completed in accordance with
the Plans and Specifications and the terms of the Construction
Contract and any amendments thereto.
(b) Prepare and deliver to the Owner complete and detailed final
documents, including, without limitation, the following:
(1) An itemized statement of the amounts payable by the Owner
under all contracts for the construction of the Project and the
furnishing of materials and services therefor.
(2) A Certificate of Completion on the form approved by the
Administrator, to the effect that the Project has been fully
constructed in accordance with the Plans and Specifications, if and
as amended.
(3) One complete set of ``as-constructed'' Plans and
Specifications of the Project in reproducible form satisfactory to
the Owner.
(4) A Certificate of Architect and a Final Statement of
Architect's Fee due hereunder.
(c) Use diligent efforts:
(1) To obtain from the Contractor releases of all liens and of
rights to claim any lien from manufacturers, material suppliers, and
subcontractors that have furnished materials or services for the
construction of the Project.
(2) To obtain a Certificate of Contractor, on the form approved
by the Administrator, to the effect that all labor has been paid.
(3) To obtain and deliver to the Owner all material and
workmanship warranties or bonds required by the Plans and
Specifications and service and operating manuals furnished by
manufacturers or suppliers.
Article IV
Compensation
Section 1. The Owner shall pay the Architect for all services
performed hereunder, except as provided in Section 3 hereof, a sum
calculated as follows. (The Owner and Architect should agree upon
the compensation schedule to be inserted in Tables Nos. 1 and 2
below.)
Table No. 1
NEW CONSTRUCTION
COST OF NEW CONSTRUCTION ________
COMPENSATION FOR ARCHITECTURAL SERVICES ________
TABLE NO. 2
REMODELING WORK
COST OF REMODELING WORK ________
COMPENSATION FOR ARCHITECTURAL SERVICES
If a Project shall consist of new construction and remodeling
work, the Architect and the Owner shall agree on an equitable
distribution of the final cost of construction between new
construction and remodeling work, which shall be used to determine
the applicable compensation from the two tables in this Section 1.
For the purpose of computing compensation due the Architect under
this Agreement for services rendered, ``remodeling,'' shall be
defined for this project as follows: ________
The sum shall be due and payable as follows:
(a) Twenty percent (20%) thereof (using the Anticipated Cost in
lieu of the Cost of Construction) within thirty (30) days after the
date of approval of the Preliminary Documents.
(b) An additional fifty percent (50%) thereof (using the
Anticipated Cost in lieu of the Cost of Construction) within thirty
(30) days after the date of approval of the Plans and
Specifications.
(c) An additional twenty percent (20%) thereof, as construction
progresses, in monthly installments each bearing the same ratio to
the total amount payable under this subsection (c) as the
corresponding monthly payment to the Contractor bears to the total
amount payable to the Contractor.
(d) The balance, if any, of the compensation due under this
Section 1 and all other provisions of this Agreement, shall be
payable within thirty (30) days after Completion of the Project in
accordance with the provisions of Section 2 of this Article IV.
For the purpose of this Article, the term ``Cost of Construction
of the Project,'' shall mean the Construction Contract Price
including amendments thereto, plus the cost of labor and materials
furnished for the Project by the Owner and in respect of which the
Architect shall have rendered services hereunder. Extra drafting or
other services performed shall be paid for as provided in Section 3
of this Article IV.
The term ``Completion of the Project'' shall mean full
performance of all obligations under this Agreement and all
amendments and revisions thereof.
Section 2. Prior to the time when any payment shall be made to
the Architect pursuant to this Agreement, the Architect, if
requested by the Owner, shall furnish to the Owner, as a condition
precedent to such payment, a certificate to the effect that all
salaries or wages earned by the employees of the Architect in
connection with the Project have been fully paid by the Architect up
to
[[Page 35326]]
and including a date not more than fifteen (15) days prior to the
date when such payment shall be due. Before the time when the final
payment provided to be made pursuant to this Article IV shall be
made to the Architect by the Owner, the Architect shall also furnish
to the Owner as a condition precedent to such payment (a) a
Certificate of Architect stating that all the employees of the
Architect have been paid for services rendered by them in connection
with the Project and that all other obligations which might become a
lien upon the Project have been paid, and (b) a Final Statement of
Architect's Fee showing the Cost of Construction of the Project and
the amount due the Architect under this Agreement.
Section 3. If the Architect shall, at the request of the Owner,
perform any of the services outlined in Section 2 of Article II or
if, after approval of the Construction Contract the Architect shall
perform extra drafting or other services because of changes ordered
by the Owner or default of the Contractor, the Architect shall be
paid, in respect thereof, a sum equal to the Architect's reasonable
out-of-pocket expenses, plus ________ percent (____%) (not to exceed
fifty percent (50%)) thereof for office overhead plus reasonable
subsistence, transportation, and communication expenses, if any,
paid to, or on behalf of, employees; which amount shall be due and
payable ten (10) days after approval by the Owner of the services
performed and the invoice of the Architect. The compensation due the
Architect under this paragraph shall be decreased by the amount of
any increase in the compensation due the Architect under Section 1
of this Article IV. The Architect shall submit to the Owner a
statement of out-of-pocket expenses in respect of extra drafting or
other services to be compensated for pursuant to this Section 3.
Out-of-pocket expenses shall be limited to money paid by the
Architect for direct labor, labor taxes, labor insurance, prorated
sick leave, vacation, holiday, retirement, and medical insurance
benefits, all applicable to such direct labor, except that, in the
case of services performed with the prior approval of the Owner by
the following officers, partners, or others having ownership
interests in the Architect, the rates corresponding to ``direct
labor'' set forth below shall apply: ________.
Section 4. If this Agreement shall be terminated pursuant to the
provisions of Section 1 or Section 2 of Article V hereof, the
compensation for services rendered prior to such termination shall
be computed as follows:
(a) One-fifth of the compensation set forth in Section 1 of this
Article IV based upon the Anticipated Cost (or of the Cost of
Construction of the Project if termination is effective after
approval of the Construction Contract) shall represent compensation
for the Preliminary Documents and such compensation shall be
prorated on the basis of the percentage of completion of such
Preliminary Documents as of the effective date of termination.
(b) One-half of the compensation set forth in Section 1 of this
Article IV based upon the Anticipated Cost (or of the Cost of
Construction of the Project if termination is effective after
approval of the Construction Contract) shall represent compensation
for the Plans and Specifications and such compensation shall be
prorated on the basis of the percentage of completion of such Plans
and Specifications as of the effective date of termination.
(c) One-fifth of the compensation set forth in Section 1 of this
Article IV based upon the Anticipated Cost shall represent
compensation for the coordination and inspection of construction of
the Project and such compensation shall be prorated on the basis of
the percentage of such services determined by the value of the
Project constructed prior to the effective date of termination.
(d) One-tenth of the compensation set forth in Section 1 of this
Article IV based upon the Cost of Construction of the Project shall
represent compensation for the services provided for in Section 5 of
Article III and such compensation shall be prorated on the basis of
the percentage of such services performed prior to the effective
date of termination.
(e) Compensation for the services referred to in Section 2 of
Article II, which may be performed by the Architect at the request
of the Owner and for extra drafting and other services because of
changes ordered by the Owner, shall be computed in accordance with
the provisions of Section 3 of this Article IV.
Section 5. Interest shall be paid by the Owner to the Architect
on all unpaid balances due the architect, commencing thirty (30)
days after the due date, provided that the delay in payment beyond
the due date shall not have been caused by any condition within the
control of the Architect. Such interest shall be at the rate of ____
percent (____%). [Percentage is not to exceed any applicable State
usury laws.] Such compensation shall be paid ten (10) days after the
amount of the interest has been determined by the Architect and the
Owner.
Article V
Miscellaneous
Section 1. The Owner may at any time terminate this Agreement by
giving notice to the Architect in writing to that effect, delivered
and mailed to the Architect's last known address not less than ten
(10) days prior to the effective date of termination specified in
the notice. From and after the effective date of termination
specified in such notice, this Agreement shall be terminated,
provided, however, that the Architect shall be entitled to receive
compensation for services theretofore rendered pursuant to this
Agreement, computed in accordance with the provisions of Article IV,
Section 4, hereof.
Section 2. The Architect shall have the right, by giving to the
Owner not less than thirty (30) days notice in writing, to terminate
this Agreement if the Architect shall have been prevented by
conditions beyond the control and without the fault of the Architect
(a) from commencing performance of this Agreement for a period of
twelve (12) months from the date of this Agreement, or (b) from
proceeding with the completion of full performance of any remaining
services required of the Architect pursuant to this Agreement for a
period of six (6) months from the date of last performance by the
Architect of other services required pursuant to this Agreement.
From and after the effective date specified in such notice this
Agreement shall be terminated, except that the Architect shall be
entitled to receive compensation for services performed hereunder,
computed and payable in the same manner as set forth in Section 1 of
this Article.
Section 3. Upon Completion of the Project or termination of this
Agreement, the Architect shall be obligated forthwith to deliver to
the Owner all maps, tracings, and drawings of the Project and all
letters, documents, and other material including all records
pertaining thereto.
Section 4. Insurance. The Architect shall take out and maintain
throughout the period of this Agreement insurance of the following
types and minimum amounts:
(a) Workers' compensation and employers' liability insurance, as
required by law, covering all of the Architect's employees who
perform any of the obligations of the Architect under the Agreement.
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
Agreement 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 Agreement, 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.
(d) Errors and Omissions (Professional Liability) Insurance in
an amount at least as large as the maximum compensation specified in
Article IV, Section 1, but not less than $500,000.
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
total compensation to be paid under this Agreement.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
[[Page 35327]]
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Architect
shall furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than thirty (30)
days prior written notice to the Owner of any cancellation or
material change in the insurance.
The Architect shall also follow the requirements of 7 CFR part
1788, RUS Fidelity and Insurance Requirements for Electric and
Telephone Borrowers.
Section 5. The obligations and duties to be performed by the
Architect under this Agreement shall be performed by persons
qualified to perform such duties efficiently. The Architect, if the
Owner shall so direct, shall replace any person employed by the
Architect in connection with the Project.
For the information of the Owner and the Administrator, the
Architect shall, upon request, file with the Owner and the
Administrator, on forms approved by the Administrator, statements of
the qualifications, including specific experience, of each person
assigned to the Project and the duties assigned to each, and
certifications of insurance coverage.
Section 6. The Architect shall follow all applicable RUS rules
and regulations.
Section 7. This Agreement shall be simultaneously executed and
delivered in three counterparts, each of which when so executed and
delivered shall be deemed to be an original, and all shall
constitute but one and the same instrument.
Section 8. The obligations of the Architect under this Agreement
shall not be assigned without the approval in writing of the Owner.
Section 9. The Architect shall comply with applicable statutes
pertaining to the practice of the profession. It is hereby warranted
that the Architect possesses license number ________ issued by the
State of ________ on the ________ day of ________, ________.
In Witness Whereof, the parties hereto have caused this
Agreement to be duly executed and their respective corporate seals
to be affixed and attested by their duly authorized representatives
all as of the date first above written.
________ Owner
By ________ President
ATTEST: ________ Secretary
________ Architect
By ________
________ Title
ATTEST: ________ Secretary
[End of clause]
Sec. 1724.76 Engineering service contract--electric system design and
construction, RUS Form 236.
The contract form in this section shall be used when required by
this part.
ENGINEERING SERVICE CONTRACT
ELECTRIC SYSTEM DESIGN AND CONSTRUCTION
AGREEMENT made ________, 19 ____, between ________ (hereinafter
called the ``Owner''), and ________ of ________ (hereinafter called
the ``Engineer'').
Whereas, the Owner has obtained loans made or guaranteed by the
United States of America, acting through the Administrator of the
Rural Utilities Service (hereinafter called the ``Administrator''),
to finance in whole or in part a rural electric system pursuant to
the Rural Electrification Act of 1936, as amended, and plans the
construction of a project designated ________, being hereinafter
called the ``Project,'' consisting of approximately the following
facilities:
Distribution and Transmission Lines:
________ miles (________ km) of ________ kV line,
________ miles (________ km) of ________ kV line,
________
Substations:
Name ________ ________ MVA ________ kV to ________ kV
________ ________ MVA ________ kV to ________ kV
Switching Stations:
Name ________ ________ kV
Name ________ ________ kV
Other:
________ miles (________ km) of line conversion, ________ miles
(________ km) of line removal, and the following: ________
Now, therefore, in consideration of the mutual undertakings
herein contained, the parties hereto agree as follows:
Article I
General Obligations
In accordance with the normal standards and practices used in
the profession, the Engineer shall render diligently and competently
all engineering services which shall be necessary or advisable for
the expeditious, economical, and sound design and construction of
the Project, with due consideration given to applicable ecological
and environmental requirements. The enumeration of specific duties
and obligations to be performed by the Engineer hereunder shall not
be construed to limit the general undertakings of the Engineer.
Article II
Preconstruction Period
Section 1. The Engineer shall give thorough consideration to
aesthetics and the protection of the environment in all phases of
construction of the Project, including line routing and station
locations. Where RUS or the Owner has prepared an environmental
document or the Owner must comply with the conditions of a Special
Use Permit imposed by a Federal land management agency, the Engineer
shall incorporate all environmental commitments of the applicable
documents that specifically relate to the facilities to be
constructed.
Section 2. The Engineer shall, within thirty (30) days after the
date of execution of this Agreement, make a complete field
inspection and investigation for the purpose of determining the most
economical and practicable location of the proposed lines.
The Engineer shall cooperate with the Owner's right-of-way agent
and attorney in developing a schedule of right-of-way procurement
and assist the Owner in developing suitable property maps for use by
the Owner's easement solicitors.
Section 3. Prior to the preparation of Plans and Specifications
by the Engineer, the Owner shall furnish to the Engineer the
following as may be applicable:
(a) Copies of pertinent Engineering Studies, including
Construction Work Plans when available, on which to base the design
of the electrical facilities to be built; key maps of the Owner's
present and proposed facilities and detail or vicinity maps showing
location of existing lines, consumers served, and easements
obtained.
(b) Detailed lists of materials, if any, on hand or on order
which are to be furnished by the Owner in the construction of the
Project, together with the quantity and the value of each item of
such material.
(c) With respect to materials contained in the assembly units
indicated for removal, a list showing values of individual material
items for which the Contractor will be credited with respect to
salvaged materials returned to the Owner if not included in item (b)
above.
Section 4. Sufficient soil test data to ensure adequate
foundation designs shall be provided by the ________ Owner ________
the Engineer [check one].
Section 5. If requested by the Owner, the Engineer shall prepare
and submit to the Owner estimates of quantities of materials to be
furnished by the Owner for use in connection with the construction
of the Project. The Engineer shall procure and submit to the Owner
forms of contracts and other documents for such materials and for
such other services as may be necessary or desirable in connection
with the construction of the Project.
Section 6. For transmission lines, the Engineer shall prepare
and submit to the Owner for approval and to the Administrator for
approval, if approval of the Administrator is required, a summary of
transmission line and substation design data with supporting
calculations. The Plans and Specifications and the Plan and Profile,
if any, shall be based on the design data approved by the Owner and
by the Administrator, if approval of the Administrator is required.
Section 7. The Engineer shall prepare and submit to the Owner
for approval and to the Administrator for approval, if approval of
the Administrator is required, plan and profile sheets for all
transmission lines.
Section 8. In specifying right-of-way clearing for transmission
lines where ``feathering'' and/or undulating boundaries are
required, the Engineer shall mark all brush and trees to be removed
unless such marking is the responsibility of another authority. The
Engineer shall also compute all clearing units, and show all
clearing units on the plan and profile drawings or on separate
drawings prepared for this purpose.
Section 9. The Engineer shall prepare, and within ________ days
after the date of execution of this Agreement submit to the Owner
for approval and to the Administrator for approval, if approval of
the Administrator is required, two copies of complete and detailed
plans and specifications, drawings,
[[Page 35328]]
maps, and other documents required for the construction of the
Project (all of the foregoing being hereinafter collectively called
the ``Plans and Specifications''). In the preparation of the Plans
and Specifications, the Engineer shall consult with the Owner to the
end that the Project shall serve the purpose intended by the Owner.
Unless otherwise directed by the Owner, the Engineer shall use
Construction Work Plans and Engineering Studies, as furnished by the
Owner, as a basis for the preparation of the Plans and
Specifications. The Engineer shall diligently make such changes in
the Plans and Specifications as may be required by the Owner or the
Administrator as a condition of approval thereof.
Section 10. The Engineer shall, for each substation, prepare and
furnish for the Owner's approval and for the Administrator's
approval, if approval of the Administrator is required, the
following drawings and such others as may be necessary or desirable
for the construction of the Project:
One line diagram (relays, breakers, transformers, switches, etc.)
Three line diagram (PT, CT, phasing, etc.)
Plot plan (excluding land surveys and plots necessary in acquisition
of property)
Grading plan, fence layout and details
Structure plan and details
Structure elevations (with section views)
Footing plan and details
Grounding plan and details
Cable trench and layout plan
Lighting plan and details
Control house plan and details
Control house elevations and details
Material lists
________
________
Section 11. All maps, drawings, plan and profile sheets, plans
and specifications, contract forms, addenda, estimates, studies, and
other documents required to be prepared or submitted by the Engineer
under this Article II or other articles of this Agreement shall
conform to the applicable standard specifications and other forms
prescribed by the Administrator, unless deviation therefrom shall
have been approved by the Administrator.
Section 12. The Engineer shall furnish to the Owner all
engineering information, data, and drawings required for procuring
all necessary or desirable permits, licenses, franchises, and
authorizations from public bodies, and all necessary or desirable
permits, licenses, or agreements with respect to the crossing of
navigable streams, railroads, and power lines, and with respect to
the paralleling or crossing of communications lines and signal
circuits, and shall assist the Owner to the extent necessary to
obtain such permits, licenses, franchises, authorizations, and
agreements. The Engineer shall also furnish to the Owner all
engineering information, data, and drawings required for procuring
transmission line right-of-way through condemnation proceedings. If
requested by the Owner, the Engineer shall attend, or appear as a
witness in, hearings or other proceedings before public service
commissions or other regulatory bodies in connection with procuring
of the foregoing.
Section 13. When notified by the Administrator (if approval of
the Administrator is required) and by the Owner of their approval of
the form of Construction Contract, the Engineer shall immediately
take all appropriate and necessary action to procure full, free, and
competitive bidding for the award of such contract or contracts, and
when requested assist the Owner with the purchase of material and
equipment. The term ``Construction Contract'' as used herein shall
also include right-of-way clearing contracts, equipment contracts,
or materials contracts if such contracts are utilized in the
construction of the project. In fulfilling this responsibility, the
Engineer shall prepare and submit to the Owner for approval a
recommended list of qualified bidders to construct the project. Upon
approval of such list by the Owner, the Engineer, in collaboration
with the Owner, shall fix a date for the opening of bids for such
contracts. The Engineer shall prepare and furnish to the qualified
bidders the Plans and Specifications and Construction Drawings
together with all necessary forms and other documents.
Section 14. The Engineer shall be available to each prospective
bidder for consultation with respect to the details of the Plans and
Specifications and all other matters pertaining to the preparation
of the proposals for the construction of the Project or the supply
of materials or services therefor. The Engineer, or a competent
representative of the Engineer, shall attend and supervise all
openings of bids for the construction of the Project or for the
furnishing of materials or services therefor. In case fewer than
three (3) bids are received for the construction of the Project or
component parts of the Project, the Owner shall be notified
immediately and such bids shall remain unopened unless permission is
obtained from the Owner for the opening of such bids. If bids are
opened, the Engineer shall carefully check and prepare detailed
assembly unit price tabulations of all bids received, and shall
render to the Owner all such assistance as shall be required in
connection with consideration of the bids received so that contracts
may be prudently and properly awarded in accordance with the policy
and procedure prescribed by the Owner and the Administrator.
Section 15. If any change is to be made in the Plans and
Specifications after the Construction Contract has been approved by
the Owner and by the Administrator, if approval of the Administrator
is required, the Engineer shall prepare and submit the necessary
details for a contract amendment in accordance with the procedure
prescribed by the Owner and the Administrator.
Article III
Staking
Section 1. The Engineer, with the approval of the Owner, shall
determine when staking of the Project shall begin; provided,
however, that the Engineer shall not commence staking until the
Owner shall have certified that all right-of-way authorizations and
easements reasonably required for the construction of the Project
have been procured. The Owner shall furnish qualified persons to
negotiate with landowners or tenants with respect to such right-of-
way authorizations and easements and the locations of meter poles or
service entrances. The Engineer shall proceed diligently with such
staking and continue therewith in such manner as not to retard the
progress of construction of the Project.
The staking shall be done in a thorough and workmanlike manner
and in accordance with the latest revision of the National
Electrical Safety Code, applicable State codes, plans and
specifications, and approved transmission line plan and profile
sheets. The Engineer shall in no case stake lines other than those
authorized by the Owner. The Engineer shall replace all stakes lost
or removed prior to or during construction of the Project. All
costs, including costs of stakes, equipment, and other material used
in connection with the staking, shall be borne by the Engineer. All
stakes shall be marked to show the pole number. Where practicable,
all stakes shall be driven in such manner that the pole number shall
be visible from the pole hauling truck when poles are being
distributed. Each transmission structure stake shall be marked with
the station number and the height and class of pole. Where it is
probable that the Contractor will have difficulty in locating
stakes, the Engineer shall drive a four-foot (1.2 m) building lath
or equivalent in addition and adjacent to the stake. The Engineer
shall give due consideration to the location of the consumer's load
center and service termination in staking pole locations on or near
the consumer's premises so that the service entrance cable or low
voltage conductors to buildings will be as short as possible.
Section 2. The Engineer shall cause staking sheets or structure
lists to be maintained in such form as the Owner shall require, on
which shall be accurately entered all pertinent and useful
information and directions concerning the construction of the
Project. Five counterparts of the staking sheets or structure lists
shall be supplied by the engineer to the Contractor and two copies
shall be supplied to the Owner. When revisions in staking sheets or
structure lists are necessary, the Engineer shall cause all copies
of the staking sheets or structure lists to be corrected to reflect
such revisions in the information or directions previously
incorporated thereon.
Section 3. The Engineer shall prepare and submit to the Owner a
report showing the quantity, kind, price, and extended total of all
units of construction for each portion of the Project at the time
such portion is released to the Contractor for construction.
Section 4. A competent resident engineer, with full authority to
act for the Engineer, shall be maintained by the Engineer at the
site of the Project at all times when staking is being performed.
Article IV
Construction Management
Section 1. The Engineer shall supervise the construction of the
Project and shall make a diligent effort to ensure the expeditious
and economical construction thereof in accordance with the Plans and
Specifications and the terms of the Construction Contract or
[[Page 35329]]
contracts and ensure that all specified environmental criteria are
followed. The Engineer shall carefully inspect all materials and
equipment prior to their incorporation in the Project and shall
promptly reject those not in compliance with the Specifications. The
Engineer shall also supervise and inspect the incorporation of the
materials in the Project and the workmanship with which such
materials are incorporated. Such inspection shall be deemed to be
adequate if a reasonable percentage of all construction units are
inspected at the time of installation. The Engineer, as
representative of the Owner, shall have sole responsibility for
requiring the Contractor to perform the Construction Contract in
accordance with its terms and the Plans and Specifications; and, in
performing the duties incident to such responsibility, the Engineer
shall issue to the Contractor such directives and impose such
restrictions as may be required to obtain reasonable and proper
compliance by the Contractor with the terms of the Construction
Contract and the Plans and Specifications, in construction of the
Project; provided that the Engineer shall not be required to
exercise any actual control over employees of the Contractor. The
term ``supervise'' when used herein shall not confer upon the
Engineer responsibility for the Contractor's construction means,
methods, or techniques. The obligations of the Engineer hereunder
run to and are for the benefit of only the Administrator and the
Owner.
Section 2. The Engineer shall measure ground resistance at all
substation ground fields prior to bonding the ground field to the
substation structure. In addition, upon recommendation by the
Engineer and authorization by the Owner, the Engineer shall measure
the ground resistance at the following locations:
(a) At all transmission structures with overhead ground wire
prior to the installation of the overhead ground wire.
(b) At all transmission structures with pole grounds prior to
the installation of power conductor. The Engineer shall prepare a
report of the ground resistance measurements mentioned above and
submit such report to the Owner together with recommendations for
changes, if any, required to ensure satisfactory operation. To the
extent such changes are approved, the Engineer shall make
appropriate changes in the Plans and Specifications in accordance
with the provisions of Section 15 of Article II.
Section 3. The Engineer shall maintain at the site of the
Project during the entire period of construction a competent
resident engineer with full authority to act for the Engineer,
unless specifically directed otherwise by the Owner in writing. When
necessary to assure adequate inspection, one or more competent
inspectors shall also be maintained when construction units are
being installed or corrective work is being performed, the number of
inspectors being subject to approval by the Owner. The Engineer
shall report, in writing, defects in workmanship or materials to the
Contractor and the Owner and shall instruct the Contractor to
correct such defects immediately, in accordance with the terms of
the Construction Contract. A resident engineer shall be present
during the final inspection of completed construction.
Section 4. The Engineer shall test along lines, immediately
after they have been energized, for objectionable radio
interference. All cases of radio interference due to faulty
construction of or defective equipment in the Project shall be
reported to the Contractor for correction.
Article V
Final Documents
Section 1. The Engineer shall prepare and, within twenty (20)
days after the completion of construction of the Project by the
Contractor, submit complete and detailed final documents to the
Owner for approval and to the Administrator for approval, if
approval of the Administrator is required.
Article VI
Compensation
Section 1. The Owner shall pay the Engineer for the services
performed hereunder as indicated in the attached Schedule A.
Section 2. The total compensation to be paid in connection with
this Agreement shall not exceed $________ (________ Dollars.)
Section 3. Compensation payable to the Engineer under this
Agreement shall be in addition to taxes or levies (excluding
Federal, State and local income taxes) which may be assessed against
the Engineer by any State or political subdivision directly on
services performed or payments for services performed by the
Engineer pursuant to this Agreement. Such taxes or levies, which the
Engineer may be required to collect or pay, shall, in turn, be added
by the Engineer to invoices submitted to the Owner pursuant to this
Agreement.
Section 4. Interest at the rate of ________ percent ( ________
%) per annum [percentage is not to exceed any applicable State usury
laws] shall be paid by the Owner to the Engineer on all unpaid
balances due the Engineer commencing thirty (30) 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 Engineer. Such
compensation shall be paid ten (10) days after the amount of
interest has been determined by the Engineer and the Owner.
Section 5. Prior to the time when any payment shall be made to
the Engineer pursuant to this Agreement, the Engineer, if requested
by the Owner, shall furnish to the Owner, as a condition precedent
to such payment, a certificate to the effect that all salaries or
wages earned by the employees of the Engineer in connection with the
Project, have been fully paid by the Engineer up to and including a
date not more than fifteen (15) days prior to the date when such
payment shall be made. Before the time when the final payment shall
be made to the Engineer by the Owner, the Engineer shall also
furnish to the Owner, as a condition precedent to such payment, a
certificate that all the employees of the Engineer have been paid
for services rendered by them in connection with the Project and
that all other obligations which might become a lien upon the
Project have been paid.
Article VII
Miscellaneous
Section 1. The Owner may at any time terminate this Agreement by
giving notice to the Engineer in writing to that effect not less
than ten (10) days prior to the effective date of termination
specified in the notice. Such notice shall be deemed given if
delivered or mailed to the last known address of the Engineer. From
and after the effective date specified in such notice, this
Agreement shall be terminated, except that the Engineer shall be
entitled to receive compensation for services hereunder as provided
in Section 2 of this Article VII.
Section 2. In the event that this Agreement at any time be
terminated pursuant to Section 1 of this Article VII, the
compensation which shall be payable to the Engineer by the Owner
shall be computed so far as possible in accordance with the
provisions of Article VI. To the extent that the provisions of
Section 1 of Article VI cannot be applied because construction is
incomplete at the effective date of such termination, the Engineer
shall be paid for engineering services in respect of incomplete
construction a sum which shall bear the same ratio of the
compensation which would have been payable under the provisions of
Section 1 of Article VI, if such construction had been completed, as
the engineering services in respect of such incomplete construction
bear to the engineering services which would have been rendered if
construction had been completed.
If requested by the Owner, the Engineer shall submit to the
Owner in duplicate a verified statement of actual expenses in
respect of such incomplete construction. All compensation payable
under this Section 2 shall be due and payable thirty (30) days after
the approval by the Owner of the amount due hereunder.
Section 3. The Engineer shall have the right, by giving the
Owner not less than thirty (30) days notice in writing, to terminate
this Agreement if the Engineer shall have been prevented by
conditions beyond the control and without the fault of the Engineer
(a) from commencing performance of this Agreement for a period of
twelve (12) months from the date of this Agreement, or (b) from
proceeding with the completion of full performance of any remaining
services required of the Engineer pursuant to this Agreement for a
period of six (6) months from the date of last performance by the
Engineer of other services required pursuant to this Agreement. From
and after the effective date specified in such notice this Agreement
shall be terminated, except that the Engineer shall be entitled to
receive compensation for services performed hereunder, computed and
payable in the same manner as set forth in Section 2 of this
Article.
Section 4. Upon completion of the Project or termination of the
Contract, the Engineer shall be obligated forthwith to deliver to
the Owner all maps, tracings, and drawings of the Project and all
letters, documents, and other material, including all records
pertaining thereto.
The term ``Completion of the Project'' shall mean full
performance of all obligations
[[Page 35330]]
under this Contract and all amendments and revisions thereof as
evidenced by the approval of the final documents by the Owner and by
the Administrator, if approval of the Administrator is required.
Section 5. The Engineer shall follow all applicable RUS rules
and regulations.
Section 6. The Engineer shall prepare and execute in such form
and detail as the Owner and the Administrator shall direct all
estimates, certificates, reports, and other documents required to be
executed by the Engineer pursuant to the terms of the Construction
Contract or the Loan Contract, including progress reports of
engineering services and reports of the progress of construction.
Section 7. The Engineer shall approve each monthly estimate of
the Contractor prior to payment by the Owner. Such approval shall
include a certification by the Engineer that all construction for
which payment is requested has been completed in accordance with the
terms of the Construction Contract and that all defective
construction, of which the Contractor shall have received fifteen
(15) or more days written notice, has been corrected. The Engineer
shall also maintain at the site of the Project a cumulative
inventory of all units of construction incorporated in the Project.
Section 8. The Engineer shall notify the Owner when the Project,
or any section thereof, shall be ready to be energized. When
requested by the Administrator, such notice shall also be given to
the Administrator. The Engineer shall assist the Owner in causing
the Project, or such section thereof, to be energized.
Section 9. Insurance. The Engineer shall take out and maintain
throughout the period of this Agreement insurance of the following
types and minimum amounts:
(a) Workers' compensation and employers' liability insurance, as
required by law, covering all of the Engineer's employees who
perform any of the obligations of the Engineer under the Agreement.
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
Agreement 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 Agreement, 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.
(d) Errors and Omissions (Professional Liability) Insurance in
an amount at least as large as the maximum compensation specified in
Article VI, Section 2, but not less than $500,000.
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
total compensation to be paid under this Agreement.
The Owner shall be named as Additional Insured on all policies
of insurance required in subsections ``b'' and ``c'' of this
Section.
The policies of insurance shall be in such form and issued by
such insurer as shall be satisfactory to the Owner. The Engineer
shall furnish the Owner a certificate evidencing compliance with the
foregoing requirements which shall provide not less than thirty (30)
days prior written notice to the Owner of any cancellation or
material change in the insurance.
The Engineer shall also follow the requirements of 7 CFR part
1788, RUS Fidelity and Insurance Requirements for Electric and
Telephone Borrowers.
Section 10. The obligations and duties to be performed by the
Engineer under this Agreement shall be performed by persons
qualified to perform such duties efficiently. The Engineer, if the
Owner shall so direct, shall replace any resident engineer or other
persons employed by the Engineer in connection with the Project. The
Engineer shall file with the Owner and the Administrator a
statement, signed by the Engineer, of the qualifications, including
specific experience of each engineer and inspector assigned to the
Project and the duties assigned to each.
Section 11. Approvals, directions, and notices provided to be
given hereunder by the Administrator to the Engineer or the Owner
shall be deemed to be properly given if given by any person
authorized by the Administrator to give approvals, directions, or
notices.
Section 12. The Engineer shall establish and maintain an office
at the site of the Project, with telephone service where available,
when staking or construction is in progress. Any notice,
instructions, or communications delivered to such office shall be
deemed to have been delivered to the Engineer.
Section 13. This Agreement may simultaneously be executed and
delivered in two or more counterparts each of which so executed and
delivered shall be deemed to be an original, and all shall
constitute but one and the same instrument.
Section 14. The obligations of the Engineer under this Agreement
shall not be assigned without the approval in writing of the Owner.
Section 15. The Engineer shall comply with applicable statutes
pertaining to engineering and warrants that ________ [Name of
Engineer] who will be in responsible charge of the Project possesses
license number ________ issued by the State of ________ on the
________ day of ________, 19____.
In witness whereof, the Parties hereto have caused this
Agreement to be duly executed.
________ Owner
By ________ President
ATTEST: ________ Secretary
________ Engineer
By ________ President, Partner [Strike out inapplicable designation]
ATTEST: ________ Secretary
Schedule A--Compensation
[End of clause]
Secs. 1724.77-1724.99 [Reserved]
Dated: June 17, 1998.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 98-16792 Filed 6-26-98; 8:45 am]
BILLING CODE 3410-15-P