[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: 7CFR1753.49]

[Page 397-399]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
         Subpart F--Outside Plant Major Construction by Contract
 
Sec. 1753.49  Closeout documents.

    (a) General. The borrower shall be responsible for preparing the 
closeout documents with, if necessary, the assistance of the GFR.

[[Page 398]]

    (b) Documents required. The following table lists the documents 
required to closeout the RUS contract Form 515.

                              Documents Required To Closeout Construction Contract
                                                 [RUS Form 515]
----------------------------------------------------------------------------------------------------------------
                                                               No. of copies prepared         Distribution
                                                                         by            -------------------------
        RUS Form No.                    Description          --------------------------
                                                               Contractor    Engineer     Borrower    Contractor
----------------------------------------------------------------------------------------------------------------
724.........................  Final Inventory--Certificate    ...........            2            1            1
                               of Completion.
724a........................  Final Inventory--Assembly       ...........            2            1            1
                               Units.
None........................  Contractor's Bond Extension             (3)  ...........     (to RUS)     (to RUS)
                               (send to RUS when required).
281.........................  Tabulation of Materials                   2  ...........            1            1
                               Furnished by Borrower.
213.........................  Certificate--``Buy American''.            1  ...........            1  ...........
None........................  Listing of Construction Change  ...........            1            1  ...........
                               Orders.
224.........................  Waiver and Release of Lien                1  ...........            1  ...........
                               (from each supplier).
231.........................  Certificate of Contractor.....            1  ...........            1  ...........
527.........................  Final Statement of              ...........            2            1            1
                               Construction.
None........................  Reports on Results of           ...........            1            1            1
                               Acceptance Tests.
None........................  Set of Final Staking Sheets...  ...........            1            1  ...........
None........................  Tabulation of Staking Sheets..  ...........            1            1  ...........
None........................  Correction Summary (legible     ...........            1            1  ...........
                               copy).
None........................  Treated Forest Products         ...........  ...........            1  ...........
                               Inspection Reports or
                               Certificates of Compliance
                               (prepared by inspection
                               company or supplier).
None........................  Final Key Map (when             ...........            1            1  ...........
                               applicable).
None........................  Final Central Office Area and   ...........            1            1  ...........
                               Town Maps.
----------------------------------------------------------------------------------------------------------------

    (c) Closeout procedure. (1) After construction has been completed in 
accordance with the plans and specifications, and acceptance tests have 
been made, the borrower shall arrange the time for a final inspection to 
be made by the borrower's engineer, the contractor, the GFR and a 
representative of the borrower.
    (2) Final inventory documents. (i) The borrower shall obtain 
certifications from the engineer that the project and all required 
documentation are satisfactory and complete. Requirements for these 
contract closeout certifications are contained in Sec. 1753.18.
    (ii) The borrower shall prepare and distribute the final inventory 
documents in accordance with the tables contained in this section. The 
documents listed for RUS shall be retained by the borrower for 
inspection by RUS for at least two years from the date of the engineer's 
contract closeout certification.

                          Step-by-Step Procedure for Closeout of Construction Contract
                                                 [RUS Form 515]
----------------------------------------------------------------------------------------------------------------
                      Sequence
----------------------------------------------------           By                         Procedure
        Step No.                    When
----------------------------------------------------------------------------------------------------------------
1......................  Upon Completion of          Borrower's Engineer..  Prepares the following: a set of
                          Construction.                                      Detail Maps and a set (when
                                                                             applicable) of Key Maps which show
                                                                             in red the work done under the 515
                                                                             contract; a Tabulation of Staking
                                                                             Sheet; and a tentative Final
                                                                             Inventory, RUS Forms 724 and 724a.
2......................  After acceptance tests      Borrower's Engineer..  Forwards letter to the borrower with
                          made.                                              copies to the GFR stating that the
                                                                             project is ready for final
                                                                             inspection. Schedules inspection
                                                                             date.
3......................  Upon receipt of letter      GFR..................  Advises borrower whether attending
                          from Borrower's Engineer.                          the final inspection will be
                                                                             possible.

[[Page 399]]


4......................  By inspection date........  Borrower's Engineer..  Obtains and makes available the
                                                                             following documents: a set of ``as
                                                                             constructed'' detail maps and (when
                                                                             applicable) ``as built'' key maps;
                                                                             a list of construction change
                                                                             orders; the final staking sheets;
                                                                             the tabulation staking sheets; the
                                                                             treated forest products inspection
                                                                             reports or certificates of
                                                                             compliance; the tentative final
                                                                             inventory, RUS Forms 724 and 724a;
                                                                             the tentative tabulation, RUS Form
                                                                             231 (if borrower furnished part of
                                                                             material); and, a report of results
                                                                             of acceptance tests.
5......................  During inspection.........  Borrower's Engineer..  Issues instructions to contractor
                                                                             covering corrections to be made in
                                                                             construction as a result of
                                                                             inspection.
6......................  During inspection.........  Contractor...........  Corrects construction on basis of
                                                                             instructions from the borrower's
                                                                             engineer. The corrections should
                                                                             proceed closely behind the
                                                                             inspection in order that the
                                                                             borrower's engineer can check the
                                                                             corrections before leaving the
                                                                             system.
7......................  During inspection.........  Borrower's Engineer..  Inspects and approves corrected
                                                                             construction. Marks inspected areas
                                                                             on the key map, if available,
                                                                             otherwise on the detail maps.
8......................  Upon completion of          Borrower's Engineer..  Prepares or obtains all the closeout
                          inspection.                                        documents listed in Table 3.
9......................  After signing final         Borrower.............  Prepares and submits to RUS the
                          inventory.                                         engineer's certifications of
                                                                             completion and a Financial
                                                                             Requirement Statement, RUS Form
                                                                             481, requesting amount necessary to
                                                                             make final payment due under
                                                                             contract.
10.....................  On receipt of final         Borrower.............  Promptly forwards check for final
                          advance.                                           payment to contractor.
11.....................  During subsequent loan      RUS Field Accountant.  Examines borrower's construction
                          fund audit review                                  records for compliance with the
                          following final payment.                           construction contract and Subpart
                                                                             F, and examines RUS Form 281
                                                                             (Tabulation of Materials Furnished
                                                                             by Borrower) if any, for
                                                                             appropriate costs.
----------------------------------------------------------------------------------------------------------------

    (iii) When the total inventory price exceeds the maximum contract by 
more than 20 percent, an extension to the contractor's bond is required.
    (iv) The borrower shall submit the engineer's contract closeout 
certification with FRS for the final advance of funds.
    (3) Final payment shall be made according to the payment provisions 
of article III of RUS Form 515, except that certificates and other 
documents required to be submitted to or approved by the Administrator 
shall be submitted to and approved by the Owner.

[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39397, Sept. 27, 
1990, and amended at 59 FR 43717, Aug. 25, 1994; 64 FR 16609, Apr. 6, 
1999]