[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: 7CFR1780.61]

[Page 1057-1058]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1780--WATER AND WASTE LOANS AND GRANTS--Table of Contents
 
 Subpart C--Planning, Designing, Bidding, Contracting, Constructing and 
                               Inspections
 
Sec. 1780.61  Construction contracts.

    Contract documents must be sufficiently descriptive and legally 
binding in order to accomplish the work as economically and 
expeditiously as possible.
    (a) Standard construction contract documents. If the construction 
contract documents utilized are not in the format previously approved by 
the Agency, OGC's review of the construction contract documents will be 
obtained prior to their use.
    (b) Contract review and concurrence. The owner's attorney will 
review the executed contract documents, including performance and 
payment bonds, and will certify that they are adequate, and that the 
persons executing these documents have been properly authorized to do 
so. The contract documents, engineer's recommendation for award, and bid 
tabulation sheets will be forwarded to the Agency for concurrence prior 
to awarding the contract. All contracts will contain a provision that 
they are not effective until they have

[[Page 1058]]

been concurred in by the Agency. The State program official or designee 
is responsible for concurring in construction contracts with the legal 
advice and guidance of the OGC when necessary.