Performing development work.

CFR · 2024-01-01 · US · Title 7

All construction work will be performed by one, or a combination, of the following methods: Contract, borrower, mutual self-help, or owner-builder. All development work must be performed by a person, firm or organization qualified to provide the service. The mutual self-help method is performance of work by a group of families by mutual labor under the direction of a construction supervisor, as described in 7 CFR part 3550. (a) (1) (2) (i) The contract sum. (ii) The dates for starting and completing the work. (iii) The amount of liquidated damages to be charged. (iv) The amount, method, and frequency of payment. (v) Whether or not surety bonds will be provided. (vi) The requirement that changes or additions must have prior written approval of the Agency. (3) (A) The contract exceeds the applicable Rural Development Single Family Housing area loan limit as per 7 CFR 3550.63. (Loan limits are available at the local Rural Development field office.) (B) The loan approval official determines that a surety bond appears advisable to protect the borrower against default of the contractor. (C) The applicant requests a surety bond. (D) The contract provides for partial payments in excess of the amount of 60 percent of the value of the work in place. (E) The contract provides for partial payments for materials suitably stored on the site. (ii) If surety bonds are required the construction contract must indicate that the contractor will furnish properly executed surety bonds prior to the

official document · source cfr-2024 · id 7:§ 1924.6