[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: 7CFR1788.49]

[Page 1122-1123]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1788--RUS FIDELITY AND INSURANCE REQUIREMENTS FOR ELECTRIC AND TELECOMMUNICATIONS BORROWERS--Table of Contents
 
    Subpart C--Insurance for Contractors, Engineers, and Architects, 
                      Telecommunications Borrowers
 
Sec. 1788.49  Contractors' bond requirements.

    Construction contracts in amounts in excess of $250,000 for 
facilities shall require contractors to secure a contractors' bond, on a 
form approved by RUS, attached to the contract in a penal sum of not 
less than the contract price, which is the sum of all labor and 
materials including owner-furnished materials installed in the project. 
RUS Form 168b is for use when the contract exceeds $250,000. RUS Form 
168c is for use when the contractor's surety has

[[Page 1123]]

accepted a Small Business Administration guarantee and the contract is 
for $1,000,000 or less. For minor construction contracts under which 
work will be done in sections and no section will exceed a total cost of 
$250,000, the borrower may waive the requirement for a contractors' 
bond.