New Jersey
RUS Instruction 1780.61(a) provides for the use of standard construction contract documents. When these documents are used, it will normally not be necessary for USDA Office of General Counsel (OGC) to perform a detailed legal review. If the construction documents utilized are not in the format of the Bulletin forms previously approved by USDA/Rural Development, OGC's review of the construction contract documents will be obtained prior to their use. OGC's review requires time, which could delay the project. Therefore, it is strongly recommended that the standard forms, without any change, be employed. If you chose to change, modify, or eliminate any content of these forms either through retyping or by adding other procedures which could contradict USDA Rural Development documents, you are required to notify USDA Rural Development in advance. However, Item 19 of RUS Bulletin 1780-13, Attachment 9, Page 14, "Payment to Contractor", is not subject to any type of changes. USDA/Rural Development is aware of the New Jersey Law "NJSA 40A:11-16.3" requiring 2% retainage; however, all USDA Rural Development applicants are required to comply with USDA Rural Development regulations as a condition of loan/grant approval. Therefore, the retainage issue, as spelled out in RUS Bulletin 1780-3, Attachment 9, which requires the retainage to be 5%, must not be changed or contradicted. It is also hereby noted that on October 20, 1994, the Secretary of Agriculture ordered the streamlining and reorganization of the Department of Agriculture resulting in abolishing the Farmers Home Administration (FmHA) and the Rural Development Administration (RDA). Thus wherever the words "Farmers Home Administration", "FmHA", "Rural Development Administration" "RDA" appears, there is hereby substituted the words "United States of America". (Rev 10/00) USDA RURAL DEVELOPMENT IS AN EQUAL OPPORTUNITY LENDER, PROVIDER RUS Instruction 1780 and miscellaneous forms to be included with the specifications:
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