Short Form Contract Documents - Nonprofits

Community Programs – RD Instructions 1942-A & 1780

Short Form Contract Documents - Nonprofits

Iowa Guide D-1 NP

This is an alternative form of contract documents which may be used for nonprofits’ contracts typically less than $150,000. This document may be modified to specific project requirements. Rural Development requires that all changes be highlighted when submitted for RD review, the highlights will be removed in the bidding documents.

Includes the following items:

a)Advertisement For Bids

b)Instructions to Bidders

c)Bidders Proposal

d)Competitive Negotiation Selection Criteria Form

e)Contract

f)Notice of Award

g)Notice to Proceed

h)General Conditions

i)Certificate of Owner's Attorney

j)USDA-Rural Development Concurrence

k)Performance Bond (used when contract is over $150,000)

l) Payment Bond (used when contract is over $150,000)

m) Compliance Statement (used when contract is over $10,000)

o) Certification Regarding Debarment (used when contract is over $25,000)

p) Statement of Final Acceptance and Owner’s Acceptance of the Work

q) Certification for Contracts Grants and Loans (used when contract is over $100,000)

r) Partial Pay request

s) Change Order

t) Project sign

u) Certification of Insurance (Contractor supplied)

v) Plans and Specifications (Engineer/Architect supplied)

w) A “Short FormCertification” is required to be submitted with the contract document submittal to Rural Development. Do not include the certification form with the Bidding Documents provided to the bidders.

THIS PAGE IS FOR INFORMATION ONLY AND SHOULD NOT BE INCLUDED IN THE FINAL DOCUMENTS.

Short Form Certification

Modifications to the short form Rural Development documents may be necessary. For purposes of RD review and all modifications to these documents are made by either BOLDfonts for add items and strikethrough font (Strikethrough) for items to be deleted. The Bold fonts and strikeouts will be removed in the advertised documents.

I hereby certify that we have only made changes to the Short Form Rural Development documents by fill in the blank, deleted the items allowed in the documents as either/or, and by bold fonts or strikethrough fonts only.

I have reviewed the Environmental Assessment and have reviewed the mitigation measures required for this project. The project as designed meets the mitigation requirements.

FIRM:______

BY:______

PRINT NAME:______

DATE:______

This certification will not be part of the Contract Documents. This certification will be submitted to Rural Development with final plans and specifications.

ADVERTISEMENT FOR BIDS

______

Owner

______

Owner Address

______

Separate Bids for the construction of (briefly describe nature, scope, and major elements of

the work) ______

______

______

______

will be received by ______

at the following address ______

until ______(Central Standard Time) on ______20___.

Bids will not be opened in public.

The Contract Documents may be examined at the following locations:

______

______

______

______

Copies of the Contract Documents may be obtained at the office of ______

located at ______upon payment of $______for each set.

Any Bidder or non-Bidder, upon returning the Contract Documents within 14 days of Bid Letting and in good condition, will be refunded $______.

INSTRUCTIONS TO BIDDERS

1. All Bidsmust be submitted on the blank Form of Proposal attached hereto and submitted in a sealed envelope.

2. Performance and Payment Bonds, on forms approved by the Owner, as provided in the ContractDocumentS in the amount of one hundred percent (100%) of the Contract Price with a corporate surety approved by the Owner, will be required for the faithful performance of Contracts, and the Bidder shall state in the proposal the name and address of the surety or sureties who will sign the Bonds in case the Contract is awarded to them. The Performance Bond guarantees the repair of all damage due to improper materials or workmanship for a period of one year after the acceptance of the Work by the Owner. Performance and Payment Bonds will be required for Contracts equal to or in excess of $150,000.(NOTE. Remove this section if Bonds are not required)

3. The party to whom the Contract is awarded will be required to execute the Contract and furnish Performance and Payment Bonds (if required), and Certificate of Insurance within ten (10) calendar days from the date when the written "Notice of Award" of the Contract is mailed to the Bidder at the address given. Contract being conditioned upon the approval of the Administrator of the USDA Rural Development or their delegate. In case of failure by the Bidder, the Owner may, at their option, consider that the Bidder has abandoned the Contract.

4. Bids furnished by "out-of-state" corporations will not be considered unless these Corporations can furnish evidence of proof to the Owner that a permit to transact business within the State of Iowa has been secured from the Secretary of State in accordance with Chapter 494 of the Code of Iowa.

5. The Contractor shall submit a construction schedule(s) with each Bid.

6. Bidders must satisfy themselves by personal examination of the location of the proposed Work, by examination of the Plans and Specifications, by exploratory borings, by reviewing the requirements of the Work and the accuracy of the estimates of the quantities of the Work to be done, and shall not at any time after the submission of a bid, dispute or complain of such estimates nor assert that there was any misunderstanding in regard to the nature or amount of work to be done.

7. For the purpose of clarification, it is understood that the work to be done is being financed in whole or in part by means of a loan and/or grant made or insured by the United States of America, acting through the United Stated Department of Agriculture Rural Development. The United States Department of Agriculture Rural Development will, therefore, require approval or concurrence by its representatives of all Contracts, attachments, and similar documents, all partial and final payment estimates, and all change orders. Bids shall include sales tax and all other applicable taxes and fees.

8. Payment of the cost of said project will be made in cash to be derived from the proceeds of a revenue loan agreement or the sale of revenue bonds, which will be payable solely and only out of the future net earnings of the utility and/or from such other cash funds on hand as may be lawfully used for said purpose and/or from the proceeds of a federal and/or state grant or grants as may be obtained, and/or in part from the proceeds from the issuance and sale of general obligation bonds.

9. Payment to each Contractor will be made in monthly estimates and one final payment. Monthly estimates for payment will be ninety-five percent (95%) of the contract value of the Work during the preceding calendar month. Retainage may be reduced as set forth in the General Conditions of the ContractDocuments. Final payment will be made to the Contractor no earlier than thirty-one (31) days from and after the final acceptance of work by the Owner in accordance with the requirements of the ContractDocuments.

10. If the Contract exceeds $10,000 a "Compliance Statement," Form RD 400-6, is required with the Contract. If the Contract exceeds $25,000 the Certification Regarding Debarment is required with the Contract. If the Contract exceeds $100,000 the Certification for Contracts Grants and Loan is required with the Contract.

11. The ContractDocuments including the detailed Plans contain the provisions required for the construction of the Project. No information obtained from any officer, agent, or employee of the Owner on any such matter shall in any way effect the risk or obligation assumed by the Contractor or relieve him from fulfilling any of the conditions of the Contract.

12. Bid forms, Plans and Specifications may be obtained from the ______. Any Bidder or non-Bidder, upon returning the ContractDocuments within 14 days of Bid Letting and in good condition, will be refunded $______.

13. Inspection trips may be scheduled for this project by contacting ______

14. COMPETITIVE NEGOTIATION PROCEDURES

14.1 Contract(s) for the work shall be awarded based on Competitive Negotiation Procedures. Award of contract shall be based on the Bidder(s) who submit the highest ranked proposal as that which is determined to be the most advantageous to the Owner, considering technical merit, price and other factors. Although price is an important factor, the award may not necessarily be made to the Bidder submitting the lowest bid.

(Note: The owner may elect to award Contract to the lowest Bidder and can then use the following in place of the the above. Remove this note and the section that does not apply)

14.1 Contract(s) for the work will be awarded to lowest price responsible Bidder.

14.2 Owner may make such investigations as he deems necessary to determine the ability of the Bidder to perform the work, and the Bidder shall furnish to Owner all such information and data for this as the Owner may request. The Owner may request some or all of the Bidder to appear before the Evaluation Committee and make a presentation of their proposals. The Owner reserves the right to reject any Bid if the evidence submitted by, or an investigation of, such Bidder fails to satisfy the Owner that such Bidder is properly qualified to carry out the obligations of the Contract and to complete the work contemplated therein.

14.3 The following information shall be submitted as part of the Proposal:

14.3.1Bidder’s Proposal

14.3.2 Competitive Negotiation Selection Criteria Form(remove if this does not apply)

15. Unacceptable bidders. The following will not be allowed to bid on, or negotiate for, a contract or subcontract related to the construction of the project:

(1) An engineer, architect, or individual/entity as an individual or firm who has prepared plans and specifications or was involved in the development of the project, or anyone who will be responsible for monitoring the construction;

(2) Any firm or corporation in which the owner's architect or engineer is an officer, employee, or holds or controls a substantial interest;

(3) The governing body's officers, employees, or agents;

(4) Any member of the immediate family or partners in the entities referred to in paragraphs (1), (2), or (3) of this section; or

(5) An organization which employs, or is about to employ, any person in the entities referred to in paragraphs (1), (2),(3), or (4) of this section.

BIDDER'S PROPOSAL

Proposal of ______(hereinafter called "Bidder"), organized and existing under the laws of the State of ______

doing business as *______. To the ______

______(hereinafter called "Owner").

In compliance with your Advertisement for Bids, Bidder hereby proposes to perform all Work for the construction of ______

in strict accordance with the Contract Documents, within the time set forth therein, and at the prices stated below.

By submission of the Bid, each Bidder certifies, and in the case of a joint Bid each party thereto certifies as to its own organization, that this Bid has been arrived at independently, without consultation, communication, or agreement as to any matter relating to this Bid with any other Bidder or with any competitor.

Bidder hereby agrees to commence Work under this contract on or before a date to be specified in the Noticer to Proceed and to fully complete the Work within ______consecutive calendar days thereafter. Bidder further agrees to pay as liquidated damages, the sum of $______for each consecutive calendar day thereafter as provided in the General Conditions.

Bidder acknowledges receipt of the following Addenum:

______

______

The undersigned Bidder understands that this contract must be concurred in by USDA Rural Development.

The Bidder will execute the contract within 10 days after notification of Contract Award.

BID SCHEDULE

NOTE: Bids shall include sales tax and all other applicable taxes and fees.

______

Item Estimated Total Unit

No.Description Quantity Price PriceTotal

______

______

TotalBid Price $______

______

Bidder’s License No. (if applicable) Bidder Date

By______

Seal (if a corporation)

______

Title

______

(Business Address)

*Insert: "a corporation incorporated in the State of ______," "a partnership" or an individual, as applicable.

Selection Criteria Sample, modify this form to fit project

Competitive Negotiation Selection Criteria Form

Submit this form with the Bid Form Company Name:______

Company Address:______

______

______

Phone #:______FAX#:______

These criteria will be used to select the BEST bid for this project. While price is an important factor, the selected bid may not be the lowest bid submitted.

1.State the base bid amount included on your Bid Form: $______

2.How many employees does your company employ:

Administration and Clerical______

Superintendents:______

Construction Personnel:______

3.List proposed major Subcontractors to be used on this project:

______

______

______

______

______

______

______

4.List three previous similar projects completed with, along with reference name and phone number:

______

______

______

5.State the number of days from Notice to proceed until project completion:

We will complete the work within______calendar days from Notice to Proceed.

6.State your ability to provide timely follow-up service and maintenance if needed:

______

______

______

______

Signature:______

Contractor

Printed Name:______

Title:______

CONTRACT

ThisContract, made this ______day of ______, 20____, by and between ______, hereinafter called "Owner" and

(name of Owner), (an Individual)

and ______doing business as (an individual,) or (a partnership,) or (a corporation) hereinafter called "Contractor". Witnesseth: That for and in consideration of the payments and Contract herein after mentioned:

1. The Contractor will commence and complete the construction of

______

2. The Contractor will furnish all of the materials, supplies, tools, equipment, labor, and other services necessary for the construction and completion of the Work described in the ContractDocuments.

3. The Contractor will commence the Work required by the Contract Document within ______calendar days after the date of the Notice To Proceed and will complete the same within ______calendar days of the Notice To Proceed unless the period for completion is extended otherwise by the ContractDocuments.

4. The Contractor agrees to pay as Liquidated Damages the sum of $______for each and every calendar day intervening between the date of completion as specified in the Notice To Proceed and the date of actual completion.

5. The Contractor agrees to perform all of the Work described in the ContractDocuments and comply with the terms therein for the sum of $______or as shown in the Bid schedule.

6. The Owner will pay to the Contractor in the manner and at such times as set forth in the General Conditions such amounts as required by the ContractDocuments.

7. This Contract shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns.

8. The Contract Documents include the following:

(a) Bidders Proposal

(b) Contract

(c) Compliance Statement

(d)Notice of Award

(e)Notice to Proceed

(f)General Conditions

(g)Performance Bond (when required)

(h)Payment Bond (when required)

(i)Certification of Insurance

(j)Construction Schedule

(k)Certification Regarding Debarment

(l)Certification for Contracts Grants and Loans (when required)

(m)Plans and Specifications

(n)Certificate of Owner's Attorney / USDA-Rural Development Concurrence

(p) Addenda

IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly

authorized officials, this Contract in duplicate, on the date first above written.

(Seal)Owner:

Attest:

______

Type Name ______Type Name ______

Title______Title______

Contractor:

(SEAL)

By ______

Type Name ______Type Name ______

Title______Title______

Employer Identification ______

NOTICE OF AWARD

Description of work: Construction of______

______for the______

______

To: ______

______

The Owner has considered the Proposal submitted by you for the above described work in response to its Instructions to Bidders dated ______, 20____.

It is to the best interest of said Owner to accept your Proposal in the amount of

______($______);

you are hereby notified that your Proposal has been accepted for items

______

You are required by the Instruction to Bidders to execute the contract within ten days from the date of the delivery of this Notice to you.

Dated this ______day of ______, 20____

______

Owner

By______

Title ______

ACCEPTANCE OF NOTICE

Receipt of the above Notice of Award is

hereby acknowledged this ______day

of ______, 20____.

By______

Title ______

NOTICE TO PROCEED

TO:______Date: ______

______Project: ______

______

______

You are hereby notified to commence Work in accordance with the Contractdated ______, 20____, on orbefore ______, 20____, and you are to complete the Work within ______consecutive calendar days thereafter. The date of completion of all Work is therefore ______, 20____.

______

Owner

By ______

Title ______

ACCEPTANCE OF NOTICE

Receipt of the above NOTICE TO PROCEED

is hereby acknowledged this the

______, 20____

By______

Title______

Employer Identification

Number______

GENERAL CONDITIONS

1. The Contractor shall furnish and pay the cost, including sales tax and all other applicable taxes and fees, of all the necessary materials and shall furnish and pay for all the superintendence, labor, tools, equipment and transportation and perform all the work required for the construction of all items listed and itemized under the bid schedule of the Bidder's Proposal attached hereto as in strict accordance with the Plans, Specifications, and General Conditions which are attached hereto and made a part hereof, and any amendments thereto and such supplemental plans and specifications which may hereafter be approved.

2. The Owner shall provide the land upon which the work under this contract is to be done, and will, so far as is convenient, permit the Contractor to use as much of the land as is required for the erection of temporary construction facilities and storage of materials, together with the right of access to same, but beyond this, the Contractor shall provide at the Contractor's cost and expense any additional land required.

3. In the event the Owner is dissatisfied with the slow progress or incompetency in the performance of the work in accordance with the schedule for completion of the various aspects of construction, the Owner shall give the Contractor written notice in which the Owner shall specify in detail the cause of dissatisfaction. Should the Contractor fail or refuse to remedy the matters complained of within five days after the written notice is received by the Contractor the Owner shall have the right to take control of the work and either make good the deficiencies of the Contractor itself or direct the activities of the Contractor in doing so, employing such additional help as the Owner deems advisable. In such event the Owner shall be entitled to collect from the Contractor any expenses in completing the work.