[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: 7CFR1753.57]

[Page 400-401]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
      Subpart G--Outside Plant Major Construction by Force Account
 
Sec. 1753.57  Procedures.

    (a) The request. (1) The borrower shall submit to RUS a certified 
copy of the board resolution or a letter signed by an authorized 
corporate official requesting approval to use the force account method 
of construction. The request shall state the advantages of the force 
account method of construction and provide the following information:
    (i) The scope of the construction to be undertaken, stating briefly 
the facilities and equipment to be installed and other pertinent data.
    (ii) The name and qualifications of the construction supervisor who 
will be directly in charge of construction, the names and qualifications 
of the construction foremen, and the availability of qualified 
construction personnel. The construction supervisor must have at least 5 
years outside plant construction experience with at least 2 years at the 
supervisory level on RUS financed projects. Construction foremen must 
have at least 3 years of outside plant construction experience.
    (iii) The availability of equipment for construction, exclusive of 
equipment needed for normal operation and maintenance.
    (2) [Reserved]
    (b) Force Account Proposal (FAP). Upon receiving RUS approval to use 
the force account method, the borrower, prior to any construction 
activity or the purchase of materials or equipment, shall submit to RUS 
two copies of its FAP. The FAP shall consist of:
    (1) The RUS Contract Form 515 and appropriate supporting attachments 
that normally would be provided as plans and specifications for contract 
construction. See Sec. 1753.47.
    (2) The cost estimate, using Form 515 as a convenient means of 
showing the following:
    (i) The quantity and cost estimates of the various assembly units 
required. ``Labor and other'' cost will not include the cost of 
engineering, legal, and other professional services, interest during 
construction, preliminary survey and investigation charges, and right-
of-way easement procurement costs.
    (ii) A list identifying materials or construction for which loan 
funds will not be requested.
    (3) The estimated completion time.
    (c) Storage of materials. All materials ordered for the construction 
shall be stored separate from normal maintenance materials.
    (d) Construction--(1) Preconstruction conference. The borrower shall 
arrange a conference, attended by the manager, construction supervisor, 
construction foremen, resident engineer and the GFR prior to the 
beginning of construction to clarify any questions pertaining to the 
construction. Notes of the conference shall be provided to each 
conference participant.
    (2) Construction schedule and progress reports. The borrower shall 
obtain from the engineer a construction schedule and submit one copy to 
the GFR. The schedule shall include the starting date and a statement 
indicating that materials are either delivered or deliveries are assured 
to permit construction to proceed in accordance with the construction 
schedule. The borrower shall obtain from the engineer progress reports 
and submit one copy of each to the GFR. RUS Form 521 may be used for the 
construction schedule and the progress report.
    (3) Borrower's management responsibilities. (i) Obtain all right-of-
way easements, permits, etc., prior to construction.
    (ii) Maintain records on all expenditures for materials, labor, 
transportation, and other costs of construction, in order that all costs 
may be fully accounted for upon completion of construction.

[[Page 401]]

    (iii) Ensure that all the required inspections and tests are made.
    (4) Engineer's responsibilities. (i) Inspect and inventory 
construction as completed.
    (ii) Require timely corrections and cleanup.
    (iii) Perform acceptance tests as construction is completed.
    (iv) Provide ``as built'' staking sheets of completed construction 
when the final inspections are made.
    (v) Maintain accurate and current inventories of completed 
construction.
    (5) Construction supervisor's responsibilities. (i) Correct 
construction errors as construction progresses.
    (ii) Maintain an accurate inventory of completed construction.
    (iii) Perform cleanup as construction is completed.
    (iv) Perform all the inspections and acceptance tests a contractor 
would be required to make under the construction contract.
    (v) Promptly perform cleanup required after final inspection.