Rd instruction 1924-a table of Contents




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43


(5-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.13(a)(5)(v) (Con.)

(A) Attend the preconstruction conference. Advise and consult with the borrower (or the borrower's representative) and issue the borrower's instructions to the contractor.


(B) Prepare change orders.
(C) Keep construction accounts and work as the general administrator of the Project during construction.
(D) Interpret the contract documents and have the authority to reject all work and materials which do not costly.
(E) Review and approve shop drawings, samples, and other submissions of the contractor for conformance with the design concept and for compliance with the contract documents.
(F) Conduct periodic inspections of all phases of construction to determine compliance with the contract documents and certify as to the amount of work that is in place and materials suitably stored on site for partial payment estimates. These inspections will be augmented, when necessary, by inspections performed by structural, mechanical, and electrical representatives. Periodic inspections should be made as frequently as is necessary to verify that the work conforms with the intent of the contract documents and that a high quality of workmanship is maintained. The State Director may require a full-time project representative on projects with a total development cost of $750,000 or more, when in the opinion of the State Director there is a need for such representative, and the State Director states the reasons for such need to the borrower.
(G) Determine, based on the inspections, the dates of substantial completion and final completion; receive on the borrower's behalf all written guarantees and related documents assembled by the contractor; and issue a final certificate for payment.

44


RD Instruction 1924-A

§ 1924.13(a)(5) (Con.)

(vi) Warranty phase. The architect will advise and consult with the borrower, as the borrower's representative, about items to be corrected within the warranty period. The architect will accompany the Rural Development representative during the inspection required one month prior to expiration of the warranty period.
(b) Other professional services. The State Director, on the recommendation of the State architect/engineer, may request that additional professional services be provided.
(1) Professional services typically include soils engineering, structural engineering, civil engineering, surveying, land planing, or professional cost estimation or certification. Fees for these services may be paid directly by the borrower or by the architect as reimbursable expenses.
(2) When a project representative is utilized, unless otherwise agreed, the representative will be provided by the consulting architect/engineer. Prior to the preconstruction conference, the architect/engineer will submit a resume of qualifications of the project representative to the applicant and to Rural Development for acceptance in writing. If the applicant provided the project representative, the applicant must submit a resume of the representative's qualifications to the project architect/engineer and Rural Development for acceptance in writing, prior to the preconstruction conference. The project representative will attend the preconstruction conference where duties and responsibilities will be fully discussed. The project representative will work under the general supervision of the architect/engineer. The project representative will maintain a daily diary in accordance with the following:
(i) The diary shall be maintained in a hard-bound book.
(ii) The diary shall have all pages numbered and all entries in ink.
(iii) All entries shall be on daily basis, beginning with the date and weather conditions.
(iv) Daily entries shall include daily work performed, number of men and equipment used in the performance of the work, and all significant happenings during the day.


45

(5-12-87) SPECIAL PN

RD Instruction 1924-A

§ 1924.13(b)(2) (Con.)

(v) The diary shall be made available to Rural Development personnel and will be reviewed during project inspections.
(vi) The project representative's diary will become the property of the owner after the project is accepted and final payments are made .
(c) Drawings. The type and kinds of drawings should be in accordance with Exhibit C of this subpart and Subpart D of Part 1944 of this chapter.
(1) The drawings must be clear, accurate, with adequate dimensions and of sufficient scale for estimating purposes.
(2) Construction sections and large-scale details sufficient for accurate bidding and for the purpose of correlating all parts of the work should be part of the general drawings. This is particularly important where the size of a project makes necessary the preparation of the general drawings at a scale of 1/8 inch equals 1 foot or less.
(3) Mechanical and electrical work should be shown on separate plans.
(4) Schedules should be provided for doors, windows, finishes, electrical fixtures, finish hardware, and any other specialty items necessary to clarify drawings.
(d) Specifications. Trade-type specifications (specifications divided into sections for various trades) should be used. The specifications should be complete, clear, and concise, with adequate description of the various classes of work shown under the proper sections and headings.
(e) Methods of administering construction. Projects involving a total development cost of less than $100,000 which do not include an LH grant may, with the approval of the State Director, follow the contract procedure in § 1924.6(a) of this subpart without modification. Construction of all other projects, however, will be administered by the contract method or owner-builder method as set forth in this section.

46


RD Instruction 1924-A

§ 1924.13(e) (Con.)


(1) Contract method. This method of development will be used for all complex construction except in cases where owner-builder method is authorized. Development under this method is done in accordance with §1924.6(a) of this subpart except as modified by this paragraph. All construction work will be completed under one written construction contract. Guide 1, "Contract Documents," of this subpart (available in any RHS office) is provided to assist RHS personnel and applicants in assembling and reviewing contract documents for more complex construction such as that administered under this section.
(i) Competitive bidding methods.
(A) All construction contracts must be awarded on the basis of competitive bidding unless an exception is granted in accordance with paragraph (e)(1)(vii) of this section thereby permitting contract negotiation. The applicant's architect should prepare the bidding documents. Public notice must be given inviting all interested bidders to submit a bid. Prospective bidders may be contacted asking for their bids; however, public notice is necessary so that all local contractors have the opportunity to submit bids.
(B) A bid bond is required from each bidder in the amount of 5 percent of the bid price as assurance that the bidder will, upon acceptance of the bid, execute the required contract documents within the time specified.
(C) The construction contract will be awarded based on the contract cost, and all conditions listed in the "Invitation for Bid."
(D) If advertising does not provide a satisfactory bid in the opinion of the applicant and RHS, the applicant shall reject all bids and will then be free to negotiate with bidders or anyone else to obtain a satisfactory contract. The following conditions must be met:
(1) The State Director determines that the original competitive bid process was handled in a satisfactory manner and that there is no advantage to advertising for competitive bid again.
(2) The requirements of paragraph (e)(1)(vii) of

this section are met.



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