[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1726.254]

[Page 264-266]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
         Subpart H--Modifications to RUS Standard Contract Forms
 
Sec. 1726.254  Prior approved contract modifications related to RUS approval of contracts and amendments and modified bidding requirements.

    It will be necessary for borrowers to make certain modifications to 
various RUS contract forms to implement the provisions of this part. If 
a RUS approved form of contract is required to be used by this part and 
private bid opening is permitted by this part, the ``Notice and 
Instructions to Bidders'' of the contract form may be modified 
accordingly. Other modifications are needed to indicate that certain 
provisions related to RUS approval are not applicable under specified 
circumstances. These modifications are as follows:
    (a) RUS Form 173 Materials Contract. No modifications.
    (b) RUS Form 180 Construction Contract Amendment. No modifications.
    (c) RUS Form 198 Equipment Contract. For contracts NOT requiring 
approval of the Administrator (in accordance with subparts B through F 
of this part) the applicable modifications are as follows:
    (1) Change Section 5(e) of the ``Equipment Contract'' to read as 
follows:

    ``(e) Each and all of the covenants and agreements herein contained 
shall extend to and be binding upon the successors and assigns of the 
parties hereto provided, however, the Seller shall not assign this 
contract or any part hereof without approval in writing of the 
Purchaser, and further the Seller shall not enter into any contract with 
any person, firm or corporation for the performance of the Seller's 
obligations hereunder, or any part thereof, without the approval in 
writing of the Purchaser.''

    (2) Delete Section 5(f) of the ``Equipment Contract.''
    (d) RUS Form 200 Construction Contract--Generating. For contracts 
Not requiring approval of the Administrator (in accordance with subparts 
B through F of this part) the applicable modifications are as follows:
    (1) Contractor's Proposal, Article II, Section 3(a), Sentence 2. 
Delete the words ``and the Administrator.''
    (2) Contractor's Proposal, Article II, Section 3(d), Sentence 2. 
Delete the words ``and approved by the Administrator \1\'' and the 
associated footnote.
    (3) Contractor's Proposal, Article VI, Section 7. Change to read as 
follows:

    ``Nonassignment of Contract. Except as provided in Section 8 of this 
Article, the Bidder will not assign this Contract, or any interest in 
any funds that may become due hereunder, or enter into any contract with 
any person, firm or corporation, for the performance of the Bidder's 
obligations hereunder, or any part hereof without the approval in 
writing of the Owner and the Surety or Sureties, if any.''

    (4) Contractor's Proposal, Article VI. Delete Section 10.
    (5) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''
    (e) RUS Form 201 Right-of-Way Clearing Contract. No modifications.
    (f) RUS Form 203 Transmission System Right-of-Way Clearing Contract. 
For contracts Not requiring approval of the Administrator (in accordance 
with subparts B through F of this part) the applicable modifications are 
as follows.
    (1) Notice and Instructions to Bidders, Section 8. Delete the words 
``and such acceptance has been approved by the Administrator.''
    (2) Contractor's Proposal, Article II, Section 1(a). Replace the 
word ``Administrator'' with the word ``Owner'' in two places in the 
referenced section.
    (3) Contractor's Proposal, Article II, Section 3(d), Sentence 1. 
Delete the words ``and with the approval of the

[[Page 265]]

Administrator \1\'' and the associated footnote.
    (4) Contractor's Proposal, Article II, Section 3(d), Sentence 3. 
Delete the words ``and approved by the Administrator \2\'' and the 
associated footnote.
    (5) Contractor's Proposal, Article III, Section 1. Delete the words 
``and the Administrator'' in five places in the referenced section.
    (6) Contractor's Proposal, Article III, Section 1(b). Replace the 
word ``Administrator'' with the word ``Owner.''
    (7) Contractor's Proposal, Article III, Section 1(e). Replace the 
word ``Administrator'' with the word ``Owner.''
    (8) Contractor's Proposal, Article VI, Section 1(d). Delete the 
words ``and the Administrator.''
    (9) Contractor's Proposal, Article VI. Delete Section 10.
    (10) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''
    (g) RUS Form 238 Construction or Equipment Contract Amendment. If 
the contract amendment does not require RUS approval, in accordance with 
Sec. 1726.24(b), the borrower may delete from RUS Form 238 the following 
sentence:

    ``(The Administrator of RUS is hereby authorized to approve this 
amendment either in whole or in part and to delete such items as do not 
meet his approval.)''

    (h) RUS Form 257 Contract to Construct Buildings. No modifications.
    (i) RUS Form 282 Subcontracts. The applicable modifications are as 
follows:
    (1) Section 6, line 3. Delete the words ``and the Administrator of 
the Rural Utilities Service (hereinafter called the Administrator).''
    (2) Section 7, line 2. Change Section 7, line 2 to read as follows:

``approved in writing by the Owner and the Surety, if any; provided, * * 
*''

    (3) Section 7, line 3. Delete the words ``and the Administrator.''
    (j) RUS Form 764 Substation and Switching Station Erection Contract. 
For contracts NOT requiring approval of the Administrator (in accordance 
with subparts B through F of this part) the applicable modifications are 
as follows:
    (1) Notice and Instructions to Bidders, Section 10. Delete the words 
``and such acceptance has been approved by the Administrator.''
    (2) Contractor's Proposal, Article II, Section 1.a. Replace the word 
``Administrator'' with the word ``Owner'' in two places in the 
referenced section.
    (3) Contractor's Proposal, Article II, Section 1.d, Sentence 1. 
Delete the words ``and with the approval of the Administrator \1\'' and 
the associated footnote.
    (4) Contractor's Proposal, Article II, Section 1.d, Sentence 2. 
Delete the words ``and approved by the Administrator \2\'' and the 
associated footnote.
    (5) Contractor's Proposal, Article III, Section 1. Delete the words 
``and the Administrator'' in five places in the referenced section.
    (6) Contractor's Proposal, Article III, Section 1.b. Replace the 
word ``Administrator'' with the word ``Owner.''
    (7) Contractor's Proposal, Article III, Section 1.e. Replace the 
word ``Administrator'' with the word ``Owner.''
    (8) Contractor's Proposal, Article VI, Section 1.e. Delete the words 
``and the Administrator.''
    (9) Contractor's Proposal, Article VI. Delete Section 10.
    (10) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''
    (k) RUS Form 786 Electric System Communications and Control 
Equipment Contract (including installation). For contracts NOT requiring 
approval of the Administrator (in accordance with subparts B through F 
of this part) the applicable modifications are as follows:
    (1) Article I, Section 2. Delete the words ``subject to the approval 
of the Administrator \1\'' and ``and approved by the Administrator \2\'' 
and the associated footnotes.
    (2) Article II, Section 1, Sentence 2. Replace the word 
``Administrator'' with ``Purchaser.''
    (3) Article II, Section 5. Delete the words ``subject to the 
approval of the Administrator \3\'' and ``subject to the approval of the 
Administrator \4\'' and the associated footnotes.
    (4) Article III, Section 2, Sentence 3. Replace the words ``if the 
Administrator shall so approve'' with the words ``if the Purchaser shall 
so approve.''
    (5) Article VI. Delete Section 7.

[[Page 266]]

    (6) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''
    (l) RUS Form 790 Distribution Line Extension Construction Contract 
(Labor and Materials). No modifications.
    (m) RUS Form 792 Distribution Line Extension Construction Contract 
(Labor Only). No modifications.
    (n) RUS Form 830 Electric System Construction Contract. No 
modifications.
    (o) RUS Form 831 Electric Transmission Construction Contract. For 
contracts NOT requiring approval of the Administrator (in accordance 
with subparts B through F of this part) the applicable modifications are 
as follows:
    (1) Notice and Instructions to Bidders, Section 10. Delete the words 
``and such acceptance has been approved by the Administrator.''
    (2) Contractor's Proposal, Article II, Section 1.d. Delete the words 
``with the approval of the Administrator \1\'' and ``and approved by the 
Administrator \2\'' and the associated footnotes.
    (3) Contractor's Proposal, Article II, Section 4.a. Delete the words 
``and approved by the Administrator \3\'' and the associated footnote.
    (4) Contractor's Proposal, Article III, Section 1.a. Sentence 4. 
Delete the words ``and the Administrator.''
    (5) Contractor's Proposal, Article III, Section 1.b. Replace the 
word ``Administrator'' with the word ``Owner.''
    (6) Contractor's Proposal, Article III, Section 1.c. Delete the 
words ``and the Administrator'' in four places in the referenced 
section.
    (7) Contractor's Proposal, Article III, Section 1.e. Replace the 
word ``Administrator'' with the word ``Owner.''
    (8) Contractor's Proposal, Article VI, Section 1.e. Delete the words 
``and the Administrator.''
    (9) Contractor's Proposal, Article VI. Delete Section 11.
    (10) Acceptance. Delete the words ``Subject to the approval of the 
Administrator.''