[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: 7CFR1753.78]

[Page 405-406]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
                      Subpart I--Minor Construction
 
Sec. 1753.78  Construction by contract.

    (a) RUS Form 773 shall be used for minor construction by contract. 
Compensation may be based upon unit prices, hourly rates, or another 
basis agreed to in advance by the borrower and the contractor. A single 
work project may require more than one contractor.
    (b) The borrower shall prepare the contract form and attach any 
diagrams, sketches and tabulations necessary to specify clearly the work 
to be performed and who shall provide which materials. Neither the 
selection of the contractor nor the contract requires RUS approval.
    (c) Borrowers are urged to obtain quotations from several 
contractors before entering into a contract to be assured of obtaining 
the lowest cost. The

[[Page 406]]

borrower must ensure that the contractor selected meets all Federal and 
State licensing and bonding requirements, and that the contractor 
maintains the insurance coverage required by the contract for the 
duration of the work. (See 7 part CFR 1788)
    (d) Upon completion and final inspection of the construction the 
borrower shall obtain from the Contractor a final invoice and an 
executed copy of RUS Form 743, Certificate of Contractor and Indemnity 
Agreement.
    (e) RUS Contract Form 773 may also be used to contract for the 
maintenance and repair of telephone equipment and facilities. Generally, 
RUS will not finance maintenance and repair contracts.

[55 FR 3573, Feb. 2, 1990. Redesignated at 55 FR 39397, Sept. 27, 1990, 
and amended at 59 FR 43718, Aug. 25, 1994]