Rd instruction 1942-a table of Contents




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ATTACHMENT TO AIA DOCUMENT A141-2004, Standard Form of Agreement Between Owner and Design/Builder




The provisions of this Attachment shall delete, modify and supplement the provisions contained in the “Standard Form of Agreement between Owner and Design/Builder”, AIA Document A141 – 2004 Edition. The provisions contained in this Attachment will supercede any conflicting provisions of the AIA Document. The term “Agency”, as used in this Attachment, shall mean the United States of America, acting through the United States Department of Agriculture.



ARTICLE 1: THE DESIGN/BUILD DOCUMENTS




Modify paragraph 1.1 by inserting the words “and concurred with by the Agency” after “by the Owner” in the first sentence.




Modify paragraph 1.3 by inserting the words “and the Agency” after “by both parties” in the second sentence.



ARTICLE 3: DATE OF COMENCEMENT AND SUBSTANTIAL COMPLETION




Modify paragraph 3.2 by inserting the following sentences in the appropriate space:

If the Work is not substantially complete on or before this date, or within this period of time, or extension thereof granted by the Owner, the Design/Builder shall pay to the Owner liquidated damages in the sum of $______ for each calendar day of delay. Any sums that may be due the Owner as liquidated damages may be deducted from any monies due or to become due the Design/Builder under the Contract or may be collected from the Design/Builder's surety.




ARTICLE 4: CONTRACT SUM




Delete the choice “Cost of the Work Plus Design/Builder’s Fee in accordance with Section 4.3 below” from paragraph 4.1.

Delete paragraph 4.3 in its’ entirety.

(09-24-12) PN 458

RD Instruction 1942-A

Guide 27

Attachment 6

Page 2

(Added 09-24-12, PN 458)




ARTICLE 5: PAYMENTS




Add the following sentence to the end of paragraph 5.1.1: “Agency concurrence is required on all Certificates of Payment before payment is made.”

Modify subparagraph 5.1.3 by inserting “ten (10)” in the last space.



Modify clause 5.2.2.1 by inserting "ten" and "10" in the appropriate space.




Modify clause 5.2.2.2 by inserting "ten" and "10" in the appropriate space.

Modify subparagraph 5.2.4 by inserting the following sentences in the appropriate space.

The amount retained shall be 10% of the value of Work until 50% of the Work has been completed. At 50% completion, further partial payments shall be made in full to the Design/Builder and no additional amounts may be retained unless the Owner certifies that the Work is not proceeding satisfactorily, but amounts previously retained shall not be paid to the Design/Builder. At 50% completion or any time thereafter when the progress of the Work is not satisfactory, additional amounts may be retained but in no event shall the total retainage be more than 10% of the value of Work completed.



Delete paragraph 5.3 in its entirety.




Modify clause 5.4.2.3 by inserting "ten percent" and "10" in the appropriate space.




Modify clause 5.4.3 by inserting "ten percent" and "10" in the appropriate space.



ARTICLE 7: MISCELLANEOUS PROVISIONS




Modify paragraph 7.7 by inserting the following in the appropriate space:

This Agreement will not become effective until concurred with in writing by the Agency. Such concurrence shall be evidenced by the signature of a duly authorized representative of the Agency in the space provided at the end of this attachment to the Agreement. The concurrence so evidenced by the Agency shall in no way commit the Agency to render financial assistance to the Owner and is without liability to the Agency for payment hereunder.

RD Instruction 1942-A

Guide 27


Attachment 6

Page 3


(Added 09-24-12, PN 458)

But in the event such assistance is provided, the concurrence shall signify the provisions of this Agreement are consistent with the requirements of the Agency.



Modify subparagraph 7.7.2 by inserting the following in the appropriate space:

Interest at 1% per month or 12% per year for pay estimates outstanding for 60 days will be paid to the Design/Builder.


ARTICLE 8: ENUMERATION OF THE DESIGN/BUILD DOCUMENTS

Modify subparagraph 8.1.2 by inserting the following in the appropriate space:

Attachment to the Standard Form of Agreement between Owner and Design/Builder (USDA Rural Development)


Modify subparagraph 8.1.7 by inserting the following in the appropriate space:

Payment Bond

Performance Bond
Modify subparagraph 8.1.10 by inserting the following in the appropriate space:
Compliance Statement (Form RD 400-6)

Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier Covered Transactions (Form AD 1048)

Disclosure of Lobbying Activities (SF-LLL)

Certification for Contracts, Grants and Loans (RD Instruction 1940-Q, Exhibit A-1)


Delete Exhibit B in its entirety. (Exhibit B describes conditions where the contract sum is the cost of the work plus the Design/Builder’s Fee without a Guaranteed Maximum Price. That option is deleted from paragraph 4.1 of the contract.)
Delete Exhibit C in its entirety. (Exhibit C describes the Insurance and Bonding requirements, which we have enumerated in the Attachment to Exhibit A in Article A.11.)
(09-24-12) PN 458

RD Instruction 1942-A

Guide 27

Attachment 6

Page 4

(Added 09-24-12, PN 458)




SIGNATURE BLOCK:




Delete the signature block on page 10 of this Agreement and substitute the following signature block:


This Agreement is entered into as of the day and year first written above and is executed in at least three original copies, of which one is to be delivered to the Design/Builder, one to the Owner and one to the Agency. Concurrence in the Contract by the Agency is required before the contract is effective.


OWNER:
ATTEST: ____________________________ BY: ____________________________
Print Name: ______________________ Print Name: ______________________
Title: ____________________________ Title: ____________________________
Date: ____________________________ Date: ____________________________

DESIGN/BUILDER:


ATTEST: ____________________________ BY: ____________________________
Print Name: ______________________ Print Name: ______________________
Title: ____________________________ Title: ____________________________
Date: ____________________________ Date: ____________________________

RD Instruction 1942-A

Guide 27

Attachment 6

Page 5

(Added 09-24-12, PN 458)



OWNER’S ATTORNEY REVIEW:
I have examined this design/build contract and performance and payment bond(s) and the manner of execution thereof, and I am of the opinion that each of the aforesaid agreements are adequate and has been duly executed by the proper parties thereto acting through their duly authorized representatives; that said representatives have full power and authority to execute said agreements on behalf of the respective parties named thereon; and that the foregoing agreements constitute valid and legally binding obligations upon the parties executing the same in accordance with terms, conditions, and provisions thereof.
By: _________________________
Print Name: _____________________
Date: _______________________

AGENCY CONCURRENCE:

Approved as lender or insurer of fund to defray the costs of this contract and without liability for any payments thereunder, the USDA Rural Development hereby concurs in the award of this contract.

By: ___________________________Title: _________________________

Print Name: ____________________Date: _________________________

(09-24-12) PN 458

RD Instruction 1942-A

Guide 27


Attachment 6

Page 6


(Added 09-24-12, PN 458)

This page is intentionally blank.

RD Instruction 1942-A

Guide 27


Attachment 6

Page 7


(Added 09-24-12, PN 458)


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