Rd instruction 1942-a table of Contents




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ARTICLE A.1: GENERAL PROVISIONS




Add the following subparagraphs and clauses to paragraph A.1.1:




A1.1.9 Agency

The term “Agency”, as used in this Attachment, shall mean the United States of America, acting through United States Department of Agriculture.




A1.1.10 Independent Inspector

The term “Independent Inspector,” as used in this Attachment, shall mean the Inspector hired independent from the Design/Builder by the Owner to represent the Owner’s interests. The Agency requires a construction inspector independent of the Design/Builder.

A.1.1.10.1 The Independent Inspector shall be a representative of and shall advise and consult with the Owner during construction until final payment is due to the Design/Builder, and at the Owner's direction during the period of correction of the Work described in the design/build documents. The Independent Inspector shall furnish consultations necessary to identify construction defects, and correct unforeseen conditions normally encountered during this period. The Independent Inspector shall assist the Owner in performing a review of the Project during the 11th month after the date of Substantial Completion.


A.1.1.10.2 The Independent Inspector shall conduct an inspection prior to the issuance of the Acknowledgement of Substantial Completion and shall submit a written report to the Owner, Agency and the Design/Builder about Work to be completed prior to final acceptance. Such services shall be coordinated with the Agency. Prior to submitting the final Application for Payment, the Independent Inspector shall conduct an inspection, submit a Statement of Completion, receive and forward to the Owner, for the Owner's review and records, written warranties and related documents required by the Contract Documents and assembled by the Design/Builder.
A.1.1.10.3 Visits to the site shall be documented in writing on standard inspection report forms with copies furnished to the Owner, Design/Builder and Agency. Visits to the site shall be in accordance with Agency requirements and procedures.

Add the words "and concurred with by the Agency" after “Design/Builder" in subparagraph A.1.5.1.

(09-24-12) PN 458

RD Instruction 1942-A

Guide 27


Attachment 6

Page 8


(Added 09-24-12, PN 458)


ARTICLE A.2: OWNER

Add the following subparagraph to Paragraph A.2.2:

A.2.2.12 The Owner shall provide the Design/Builder with Agency standard Contract Document Guides.




ARTICLE A.3: DESIGN/BUILDER




Add the following sentence to subparagraph A.3.2.3: “Any extra

cost that may result from errors and omissions in the services provided under the contract will be the responsibility of the Design/Builder.”

Add the following subparagraph to subparagraph A.3.2.4:

A.3.2.4.1 The Design/Builder shall consult with the Agency Architect or Engineer about the Agency’s requirements and procedures.


In subparagraph A.3.2.5, add the words "and written concurrence by the Agency" after “Owner’s written approval" and add the following sentence after the first sentence: Two (2) sets for the Agency are required.

Add the words "and written concurrence by the Agency" at the end of the first sentence in subparagraph A.3.2.6.




Add the words "and written concurrence by the Agency" after “Owner’s written approval" in subparagraph A.3.2.8.

Add the words "and written concurrence by the Agency" after “Owner’s review and approval" in subparagraph A.3.3.1.

Add the following clauses to subparagraph A.3.3.6:

A.3.3.6.1 The Design/Builder shall conduct a Preconstruction Conference prior to the beginning of construction to familiarize all parties involved with the necessary work. This meeting shall be held with the Design/Build representative, Owner, Owner’s Independent Inspector, Agency representative(s) and other interested parties as appropriate. The Agency ‘Record of Preconstruction Conference’ may be used to document the meeting.


RD Instruction 1942-A

Guide 27

Attachment 6

Page 9

(Added 09-24-12, PN 458)



A.3.3.6.2 The Design/Builder shall conduct on-site pay/progress meetings no less than once a month during the periods of active construction. These meetings shall be held with the Design/Build representative, Owner, Owner’s Independent Inspector, Agency representative(s) and other interested parties as appropriate, to review and discuss the application for payment, work progress schedule, construction problems or disputes and other appropriate matters.

A.3.3.8 Add the following subparagraph to subparagraph A.3.3.8:

A.3.3.8.1 The Design/Builder shall advise the Owner of required tests, inspections and reports, shall furnish coordination of such tests and inspections, and shall advise the Owner and Agency of the results of same. Copies of test results shall be furnished to the Owner, Owner’s Independent Inspector and Agency, as appropriate.


In subparagraph A.3.4.1, add the following subparagraph:

A.3.4.1.1 The Design/Builder shall not contract with any person or entity declared ineligible under Federal laws or regulations from participating in federally assisted construction projects for to whom the Owner has made reasonable objection. The Design/Builder shall not be required to contract with anyone to whom the Design/Builder has reasonable objection.




ARTICLE A.4: DISPUTE RESOLUTION




In subparagraph A.4.4.1, delete the first sentence and replace it with:


“Claims, except those waived as provided for in subparagraphs A.4.1.10, A.9.10.4 and A.9.10.5, for which initial decisions have not become final and binding, and which have not been resolved by mediation but which are subject to arbitration pursuant to paragraphs 6.2 and 6.3 of the Agreement or elsewhere in the Design/Build documents, may be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association currently in effect at the time of the arbitration.”

(09-24-12) PN 458

RD Instruction 1942-A

Guide 27


Attachment 6

Page 10


(Added 09-24-12, PN 458)


Delete subparagraph A.4.4.2 and substitute the following subparagraphs:

A.4.4.2 The arbitration provisions in this subsection may be initiated by either party to this Contract by filing with the other party a written request for arbitration. The other party may accept or reject the request by filing a written answering statement with the requesting party within fourteen (14) calendar days of the receipt of such request. If the request is accepted the provisions of this section shall apply. If the request is rejected or an answering statement is not filed within the fourteen (14) day period, the provisions in this subsection will not apply.


A.4.4.2.1 Within fourteen (14) calendar days or any mutually agreeable time period thereafter, each party to this Contract will appoint one arbitrator. Within fourteen (14) calendar days or any mutually agreeable time period thereafter, the two arbitrators will select a third arbitrator. Failure to appoint an arbitrator within the mutually agreeable time periods will terminate further actions under this subsection.
A.4.4.2.2 The arbitrators will select a hearing location as close to the Owner's locale as possible.

In subparagraph A.4.4.4, replace the word "demand" with the word "request" in each occurrence in the first sentence.




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