RD 1924-6 Construction Contract

USDA-RD
Form RD 1924-6
(Rev. 8-93)

Position 6

FORM APPROVED
OMB NO. 0575-0042
OMB NO. 0570-NEW

CONSTRUCTION CONTRACT

State
County
This Contract, made this
by

day of

, 20 ______________ ,

of

(hereinafter called the ‘Owner’) , and

of
(hereinafter called the “Contractor”).

WITNESSETH that the parties hereto agree as follows:
(A)

The Contractor will furnish materials and perform the work for:

for the consideration of
dollars ($
in accordance with the “General Conditions” shown in this contract and the specifications and the drawings as follows:
(B)

The Contractor will start work by

work by
(C)
The Owner will make payments as follows: (Check
applicable.)

, 20
, 20

),

, and will complete the

(See paragraph III of General Conditions).

proper payment clause and effectively xxxxxxxxxx out all of the clauses not

1. ONE LUMP SUM will be made for the whole contract, upon acceptance by the owner and Rural Development, of all work required
hereunder and compliance by the contractor with all the terms and conditions of this contract.
2. PARTIAL PAYMENTS NOT TO EXCEED 60 PERCENT of the value of the work place (less the aggregate of previous payments)
will be made at intervals of
. The value of work in place shall be as estimated by the contractor and approved by
Rural Development. Prior to receiving any partial payment, the contractor must furnish the owner with a statement showing the total
amount owed to date for materials and labor procured under this contract and, if required by the owner or Rural Development, must
also submit evidence showing that previous partial payments were properly applied and that the current payment will be properly
applied. Upon completion of the whole contract and acceptance of the work as required hereunder, by the owner and Rural Development, and compliance by the contractor with all terms and conditions of this contract, the amount due the contractor will be paid.
3. PARTIAL PAYMENTS IN THE AMOUNT OF 90 PERCENT of the value of the work in place and of the value of the materials
suitably stored at the site (less the aggregate of previous payments) will be made at intervals of
. The value of
the work and materials in place or on site shall be as estimated by the contractor and approved by the owner and Rural Development.
Upon acceptance by the owner and Rural Development of all work required hereunder, and compliance by the contractor with all terms
and conditions of this contract, the amount due the contractor will be paid. The contractor shall, before the owner signs the contract,
deliver to the owner a surety bond in the amount of the contract.
(D)
The items described below (the Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity required by
Executive Order 11246, the Equal Opportunity Clause published at 41 CFR 60-1.4 (a) and (b), and the Standard Federal Equal Employment
Opportunity Construction Contract Specifications required by Executive Order 11246) apply, during the performance of this contract, if the contract
exceed $10,000 (This also includes subsequent loans and grants, or contract change orders made during the construction period of the original
contract , which will cause the total to exceed $10,000.) to the following: (1) All contractors or subcontractors who hold any Federal or federally
assisted construction contract, (2) All grants, contracts and loans (direct, insured, or guaranteed) let by Rural Development, and (3) All construction
work performed by construction contractors and subcontractors for Federal nonconstruction contractors and subcontractors if the construction work
is necessary in whole or in part to the performance of a nonconstruction contract or subcontract. The items are applicable to all of a contractor’s or
subcontractor’s employees who are engaged in “on site” construction including those construction employees who work on a non-Federal or nonfederally assisted construction site. The items, however, will not pre-empt state and local government regulations of the construction industry, and
will not relieve contractors and subcontractors of the obligations they may have under other affirmative action or equal opportunity programs.

Public reporting for this collection of information is estimated to average 15 minutes per response, including the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect
of this collection of information, including suggestions for reducing this burden, to Department of Agriculture, Clearance Officer, OIRM, AG Box 7630, Washington, D.C. 20250;
and to the Office of Management and Budget, Paperwork Reduction Project (OMB No. 0575-0042), Washington, D.C. 20503. Please DO NOT RETURN this form to either of these
addresses. Forward to Rural Development only.

2
NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO ENSURE EQUAL EMPLOYMENT
OPPORTUNITY (Executive Order 11246)
Date

City

DOL Region

Goals and Timetables for WOMEN (Exhibit D, RD Instruction 1901-E)
Timetable

Trade

Goal (%)

From 4-1-78 until 3-31-79
From 4-1-79 until 3-31-80
From 4-1-80 until 3-31-81

All trades
All trades
All trades

3.1
5.1
6.9

Goals and Timetables for ALL MINORITIES (Exhibit D, RD Instruction 1901-E)

EQUAL OPPORTUNITY CLAUSE (41 CFR 60—1.4 (a) AND (b))
(1)

The contractor will not discriminate against any employee or applicant for employment because of race, color, religion,
sex or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that
employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such
action shall include, but not be limited, to the following: employment, upgrading, demotion or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training,
including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for
employment, notices to be provided by Rural Development setting forth the provisions of this
nondiscrimination clause.

(2)

The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state
that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or
national origin.

(3)

The contractor will send to each labor union or representative of workers with which contractor has a collective
bargaining agreement or other contract or understanding, a notice, to be provided by Rural Development,
advising the said labor union or workers’ representative of the contractor’s commitments under this agreement as
required pursuant to Section 301 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice
in conspicuous places available to employees and applicants for employment.

(4)

The contractor will comply with all provisions of such Executive Order and of all relevant rules, regulations, and
orders of the Secretary of Labor and of any prior authority which remain in effect.

(5)

The contractor will furnish all information and reports required by such Executive Order, rules, regulations, and orders,
or pursuant thereto, and will permit access to books, records, and accounts by Rural Development and
the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

(6)

In the event of the contractor’s noncompliance with the nondiscrimination clauses of this contract or with any of the
said rules, regulations, or orders, this contract may be cancelled, terminated or suspended in whole or in part and the
contractor may be declared ineligible for further contracts in accordance with procedures authorized in such Executive
Order and such other sanctions may be imposed and remedies invoked as provided in the Executive Order or by any
such rules, regulations, or orders, or as otherwise provided by law.

(7)

The contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order, unless
exempted by such rules, regulations, or orders, so that such provisions will be binding upon each such subcontractor or
vendor. The contractor will take such action as Rural Development may direct as a means of enforcing
such provisions, including sanctions for noncompliance: Provided, however, that in the event the contractor becomes
involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by
Rural Development, the contractor may request the United States to enter into such litigation to protect the interest
of the United States.

RD 1924-6

STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY CONSTRUCTION CONTRACT
SPECIFICATIONS (EX. O. 11246)

1. As used in these specifications:
a. “Covered area” means the geographical
area
described
in
the
solicitation
from
which this contract resulted;
b. “Director”
means
Director,
Office
of
Federal
Contract
Compliance
Programs
United States Department of Labor, or any
person to whom the Director delegates authority:
c. “Employer
identification
number”
means the Federal Social Security number
used on the Employer’s Quarterly Federal
Tax
Return,
U.S.
Treasury
Department
Form 941.
d. “Minority” includes:
(i) Black (all persons having origins in any
of the Black African racial groups not of
Hispanic origin);
(ii) Hispanic
(all
persons
of
Mexican,
Puerto
Rican,
Cuban,
Central
or
South
American
or
other
Spanish
Culture
or
origin, regardless of race);
(iii) Asian and Pacific Islander (all persons
having origins in any of the original peoples
of the Far East, Southeast Asia, the Indian
Subcontinent, or the Pacific Islands); and
(iv) American
Indian
or
Alaskan
Native
(all persons having origins in any of the
original
peoples
of
North
America
and
maintaining
identifiable
tribal
affiliations
through
membership
and
participation
or
community identification).
2. Whenever the Contractor, or any Subcontractor at any tier, subcontracts a portion of the work involving any construction
trade, it shall physically include in each
subcontract in excess of $10,000 the provisions of these specifications and the Notice
which contains the applicable goals for minority and female participation and which
is set forth in the solicitations from which
this contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a Hometown
Plan approved by the U.S. Department of
Labor in the covered area either individually or through an association, its affirmative
action obligations on all work in the Plan
area (including goals and timetables) shall
be in accordance with that Plan for those
trades which have unions participating in
the Plan. Contractors must be able to demonstrate their participation in and compliance with the provisions of any such Hometown Plan. Each Contractor or Subcontractor participating in an approved Plan is individually required to comply with its obligations under the EEO clause, and to make a
good faith effort to achieve each goal under
the Plan in each trade in which it has employees. The overall good faith performance
by
other
Contractors
or
Subcontractors
toward a goal in an approved Plan does not
excuse any covered Contractor’s or Subcontractor’s failure to take good faith efforts to
achieve the Plan goals and timetables.
4. The
Contractor
shall
implement
the
specific
affirmative
action
standards
pro
vided in paragraphs 7a through p of these
specifications. The goals set forth in the solicitation from which this contract resulted
are expressed as percentages of the total
hours of employment and training of minority
and
female
utilization
the
Contractor
should reasonably be able to achieve in each
construction trade in which it has employees in the covered area. The Contractor is
expected to make substantially uniform progress toward its goals in each craft during
the period specified.

5. Neither the provisions of any collective
bargaining agreement, nor the failure by a
union with whom the Contractor has a collective bargaining agreement, to refer either
minorities or women shall excuse the Contractor’s obligations under these specifications, Executive Order 11246, or the regulations promulgated pursuant thereto.
6. In order for the nonworking training
hours of apprentices and trainees to be
counted in meeting the goals, such apprentices and trainees must be employed by the
Contractor during the training period, and
the Contractor must have made a commitment to employ the apprentices and trainees at the completion of their training, subject to the availability of employment opportunties. Trainees must be trained pursuant to training programs approved by the
U.S. Department of Labor.
7. The Contractor shall take specific affirmative actions to ensure equal employment
opportunity. The evaluation of the Contractor’s
compliance
with
these
specifications
shall be based upon its effort to achieve
maximum results from its actions. The Contractor shall document these efforts fully,
and
shall
implement
affirmative
action
steps at least as extensive as the following:
a. Ensure and maintain a working environment free of harassment, intimidation, and
coercion at all sites, and in all facilities at
which the Contractor’s employees are assigned to work. The Contractor, where possible, will assign two or more women to each
construction
project.
The
Contractor
shall
specifically ensure that all foremen, superintendents,
and
other
on-site
supervisory
personnel are aware of and carry out the
Contractor’s obligation to maintain such a
working
environment,
with
specific
attention to minority or female individuals working at such sites or in such facilities.
b. Establish and maintain a current list of
minority
and
female
recruitment
sources,
provide written notification to minority and
female recruitment sources and to community organizations when the Contractor or
its
unions
have
employment
opportunities
available, and maintain a record of the organizations’ responses.
c. Maintain a current file of the names,
addresses and telephone numbers of each
minority and female off-the-street applicant
and minority or female referral from a
union, a recruitment source or community
organization and of what action was taken
with respect to each such individual. If such
individual was sent to the union hiring hall
for referral and was not referred back to the
Contractor by the union or, if referred, not
employed by the Contractor, this shall be
documented in the file with the reason
therefor, along with whatever additional actions the Contractor may have taken.
d. Provide
immediate
written
notification
to the Director when the union or unions
with which the Contractor has a collective
bargaining agreement has not referred to
the Contractor a minority person or woman
sent by the Contractor, or when the Contractor
has
other
information
that
the
union referral process has impeded the Contractor’s efforts to meet its obligations.
e. Develop
on-the-job
training
opportunities and/or participate in training programs
for the area which expressly include minorities and women, including upgrading programs and apprenticeship and trainee programs relevant to the Contractor’s employment
needs,
especially
those
programs
funded or approved by the Department of
Labor. The Contractor shall provide notice

3

of these programs to the sources complied
under 7b above.
f. Disseminate
the
Contractor’s
EEO
policy by providing notice of the policy to
unions and training programs and requesting their cooperation in assisting the Contractor in meeting its EEO obligations; by
including it in any policy manual and collective bargaining agreement; by publicizing it
in the company newspaper, annual report,
etc.; by specific review of the policy with all
management personnel and with all minority and female employees at least once a
year; and by posting the company EEO
policy on bulletin boards accessible to all
employees at each location where construction work is performed
g. Review, at least annually, the company’s EEO policy and affirmative action obligations under these specifications with all
employees
having
any
responsibility
for
hiring,
assignment,
layoff,
termination
or
other
employment
decisions
including
specific review of these items with on-site supervisory personnel
such
as
Superintendents,
General Foremen, etc., prior to the initiation of construction work at any job site. A written record
shall
be
made
and
maintained identifying the time and place of
these
meetings,
persons
attending,
subject
matter discussed, and disposition of the subject matter.
h. Disseminate
the
Contractor’s
EEO
policy externally by including it in any advertising in the news media, specifically including minority and female news media,
and
providing
written
notification
to
and
discussing the Contractor’s EEO policy with
other
Contractors
and
Subcontractors
with
whom
the
Contractor
does
or
anticipates
doing business.
i. Direct its recruitment efforts, both oral
and written, to minority, female and community organizations, to schools with minority and female students and to minority
and female recruitment and training organizations serving the Contractor’s recruitment
area and employment needs. Not later than
one month prior to the date for the acceptance of applications for apprenticeship or
other
training
by
any
recruitment
source,
the Contractor shall send written notification to organizations such as the above, describing the openings, screening procedures,
and tests to be used in the selection process.
j. Encourage present minority and female
employees to recruit other minority persons
and women and, where reasonable, provide
after school, summer and vacation employment to minority and female youth both on
the site and in other areas of a Contractor’s
workforce.
k. Validate all tests and other selection requirements where there is an obligation to
do so under 41 CFR Part 60-3.
l. Conduct, at least annually, an inventory
and evaluation at least of all minority and
female
personnel
for
promotional
opportunities
and
encourage
these
employees
to
seek or to prepare for, through appropriate
training, etc., such opportunities.
m. Ensure
that
seniority
practices,
job
classifications,
work
assignments
and
other
personnel practices, do not have a discriminatory effect by continually monitoring all
personnel and employment related activities
to ensure that the EEO policy and the Contractor’s
obligations
under
these
specifications are being carried out.
n. Ensure that all facilities and company
activities are nonsegregated except that separate
or
single-user
toilet
and
necessary
changing
facilities
shall
be
provided
to
assure privacy between the sexes.

RD 1924-6

4
o. Document and maintain a record of all
solicitations of offers for subcontracts from
minority
and
female
construction
contractors and suppliers, including circulation of
solicitations to minority and female contractor associations and other business associations.
p. Conduct a review, at least annually, of
all
supervisors’
adherence
to
and
performance under the Contractor’s EEO policies
and affirmative action obligations.
8. Contractors
are
encouraged
to
participate in voluntary associations which assist
in fulfilling one or more of their affirmative
action obligations (7a through p). The efforts of a contractor association, joint contractor-union,
contractor-community,
or
other similar group of which the contractor
is a member and participant, may be asserted as fulfilling any one or more of its obligations under 7a through p of these Specifications provided that the contractor actively
participates
in
the
group,
makes
every
effort to assure that the group has a positive impact on the employment of minorities and women in the industry, ensures
that the concrete benefits of the program
are reflected in the Contractor’s minority
and female workforce participation, makes a
good faith effort to meet its individual goals
and timetables, and can provide access to
documentation
which
demonstrates
the
effectiveness of actions taken on behalf of the
Contractor. The obligation to comply, however, is the Contractor’s and failure of such
a group to fulfill an obligation shall not be a
defense for the Contractor’s noncompliance.
9. A single goal for minorities and a separate single goal for women have been estab-

lished. The Contractor, however, is required
to
provide
equal
employment
opportunity
and to take affirmative action for all minority groups, both male and female, and all
women,
both
minority
and
non-minority.
Consequently, the Contractor may be in violation of the Executive Order if a particular
group is employed in a substantially disparate manner (for example, even though the
Contractor has achieved its goals for women
generally, the Contractor may be in violation of the Executive Order if a specific minority group of women is underutilized).
10. The contractor shall not use the goals
and timetables or affirmative action standards to discriminate against any person because of race, color, religion, sex, or national
origin.
11. The Contractor shall not enter into
any Subcontract with any person or firm debarred
from
Government
contracts
pursuant to Executive Order 11246.
12. The Contractor shall carry out such
sanctions
and
penalties
for
violation
of
these specifications and of the Equal Opportunity Clause, including suspension, termination and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended,
and its implementing regulations, by the
Office of Federal Contract Compliance Programs. Any contractor who fails to carry
out such sanctions and penalties shall be in
violation of these specifications and Executive Order 11246, as amended.
13. The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative action steps, at

least as extensive as those standards prescribed in paragraph 7 of these specifications, so as to achieve maximum results
from its efforts to ensure equal employment
opportunity.
If
the
contractor
fails
to
comply with the requirements of the Executive Order, the implementing regulations, or
these specifications, the Director shall proceed in accordance with 41 CFR 60–4.8.
14. The Contractor shall designate a responsible official to monitor all employment
related activity to ensure that the company
EEO policy is being carried out, to submit
reports relating to the provisions hereof as
may be required by the Government and to
keep records. Records shall at least include
for each employee the name, address, telephone
numbers,
construction
trade,
union
affiliation
if
any,
employee
identification
number
when
assigned,
social
security
number, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer), dates
of changes in status, hours worked per week
in the indicated trade, rate of pay, and locations at which the work was performed. Records shall be maintained in an easily understandable and retrievable form; however,
to the degree that existing records satisfy
this requirement, contractors shall not be
required to maintain separate records.
15. Nothing herein provided shall be construed as a limitation upon the application
of other laws which establish different standards of compliance or upon the application
of requirements for the hiring of local or
other area residents (e.g., those under the
Public Works Employment Act of 1977 and
the
Community
Development
Block
Grant
Program).

(E)
The contractor will determine if this contract is subject to a Hometown Plan. Check this block
if
contract is subject to a Hometown Plan. Effectively xxxxxxx out this provision if it is not. This contract is
subject to the
Plan. The applicable conditions are attached hereto and made a
part hereof.

RD 1924-6

IN WITNESS WHEREOF, the parties hereto have executed this contract as of the date first above written.

5

__________________________________________________

(Contractor)

__________________________________________________

(Owner)

GENERAL CONDITIONS
I.
CHANGES IN WORK. - The Owner may at any time, with the approval of the official designated by Rural Development
(hereinafter called the Representative), make changes in the drawings and specifications, within the general scope thereof. If such
changes cause an increase or decrease in the amount due under this contract or in the time required for its performance, an equitable
adjustment will be made, and this contract will be modified accordingly by a “Contract Change Order”. No charge for any extra work or
material will be allowed unless the same has been ordered on such contract change order by the Owner with the approval of the
Representative, and the price thereof stated in the order.
II.
INSPECTION OF WORK. - All materials and workmanship will be subject to inspection, examination, and test, by the Representative, who will have the right to reject defective material and workmanship or require its correction.
III
COMPLETION OF WORK. - If the Contractor refuses or fails to complete the work within the time specified in paragraph B
of this contract, or any extension thereof, the Owner may, with the approval of the Representative, terminate the Contractor’s right to
proceed. In such event the Owner may take over the work and prosecute the same to completion by contract or otherwise and the
Contractor will be liable for any excess cost occasioned the Owner thereby; and the Owner may take possession of and utilize in
completing the work such materials and equipment as may be on the site of the work and necessary therefor. If the Owner does not
terminate the right of the Contract to proceed, the Contractor will continue the work, in which event, actual damages for delay will be
impossible to determine, and in lieu thereof, the Contractor may be required to pay to the Owner the sum of $___________________
as liquidated damages for each calendar day of delay , and the Contractor will be liable for the amount thereof: Provided, however, that
the right of the contractor to proceed will not be terminated because of delays in the completion of the completion of the work due to
unforeseeable causes beyond the Contractor’s control and without Contractor’s fault or negligence.
IV.
RELEASES. - Prior to final payment, the Contractor will submit evidence that all payrolls, material bills, and other indebtedness
connected with the work have been paid as required by the Owner or the Representative.
V.
OBLIGATION TO DISCHARGE LIENS. - Acceptance by the Owner and the Representative of the completed work performed by the Contractor and payment therefor by the Owner will not relieve the Contractor of obligation to the Owner (which obligation is hereby acknowledged) to discharge any and all liens for the benefit of subcontractors, laborers, material-person, or any other
persons performing labor upon the work or furnishing material or machinery for the work covered by this contract, which have attached
to or may subsequently attach to the property, or interest of the Owner.
VI.
NOTICES AND APPROVAL IN WRITING. - Any notice, consent, or other act to be given or done hereunder will be valid
only if in writing.
VII.
ADDITIONAL REQUIREMENTS. - The Contractor, in the performance of this contract, will comply with all applicable Equal
Opportunity requirements. The provisions of RD Instruction 1901-F concerning the protection of historical and archaeological properties and the provisions of RD Instruction 1940-G concerning environmental requirements apply. The Contractor understands that
should any archaeological resources be discovered during the construction process, the Contractor will notify the Owner and cease
further construction activity that could affect the resource until the Owner has consulted with the Representative and the Contractor is
informed of any steps to be taken or told to proceed with construction.
VIII.
CLEANING UP. - The Contractor shall keep the premises free from accumulation of waste material and rubbish and at the
completion of the work shall remove from the premises all rubbish, implements and surplus materials and leave the building broomclean.
proper warranty clause and
IX.
BUILDER’S WARRANTY. - upon completion of the work the contractor will; (Check
effectively xxxxxxxx out the inapplicable clause.)
execute Form RD 1924-19, ‘Builder’s Warranty”.
provide an RD-approved 10- year home warranty policy in accordance with Section 1924.9 and exhibit L of RD
Instruction 1924-A.
RD 1924-6