[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR305.8]

[Page 554]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 305--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES--Table of Contents
 
              Subpart B--Requirements for Approved Projects
 
Sec. 305.8  Project phasing.

    The recipient is strongly urged to award all contracts for 
construction at one time.
    (a) Where compelling reasons justify phasing the project, the 
recipient must secure the approval of EDA for phasing prior to 
advertising any portion for bid.
    (b) The recipient's request for approval of phasing must include 
valid reasons justifying the request and a statement from the recipient 
that it can, and will, fund any overrun that arises in the later phases.
    (c) Normally, EDA will not disburse funds until all construction 
contracts have been awarded, (an exception is the development of an 
underground source of water when required to determine the availability 
of an adequate source of water supply in terms of both quality and 
quantity as described in the grant application).
    (d) Disbursement of grant funds by phases must be approved by EDA. 
Such approvals will be given only if the recipient can demonstrate that 
a severe hardship will result if such approval is not given and there 
are compelling reasons why all phases cannot be contracted for at the 
same time.
    (e) The recipient must be capable of paying incurred costs prior to 
the first disbursement of EDA grant funds.

[64 FR 69875, Dec. 14, 1999]