SECTION II - GENERAL PROVISIONS
1. Notification of Injury or Damage: The Contractor shall promptly notify the Owner of any injury, death,
loss, or damage to persons, animals, or property which is in any way related to the work performed under this
Contract, even though such occurrence was not caused or contributed to by the Contractor or the
Contractor's employees and agents.
2. Withholding of Payments: The Owner may withhold money due for portions of the work which have
been rejected by the Owner and which have not been corrected by the Contractor to the satisfaction of the
Owner. The Contractor shall pay each material supplier, if any, within five (5) days after receipt of any
payment from the Owner, the amount thereof allowed on account of materials furnished by each material
supplier. The Owner may withhold money due for claims which might be the subject of reimbursement to the
Owner by the Contractor. If the Owner is advised that the Contractor is not promptly paying material
suppliers as set out above, or if the Owner is advised that employees of the Contractor are not being
promptly paid, then the Owner may withhold such money due as the Owner deems sufficient to insure the
obligations incurred by the Contractor in connection with the work covered by this Contract will be paid in full.
3. Changes in Project: The Owner may make changes in the Project by altering, adding to or deducting from
the Project. No change in the contract price shall be made for minor changes not involving extra cost.
All adjustments in the contract price by reason of any other change shall be agreed to by the parties prior to
commencement of the actual work in connection with such change.
4. Standards of Work: All work performed under this Contract shall conform to applicable current Rural
Utilities Service (hereinafter called ''RUS") standards and specifications.
The Contractor shall furnish and be responsible for all supervision, labor, tools, equipment, power,
transportation, material, and supplies required to perform the work, except those items specifically listed
which will be furnished by the Owner. The Contractor shall pick up and transport such material and
equipment from its place of storage to the job site as needed. The Contractor shall transport and return to a
place of storage designated by the Owner unused material and equipment belonging to the Owner.
5. Provision of Materials: In the performance of this Contract there shall be used only such
unmanufactured articles, materials, and supplies as have been mined or produced in the United States, and
only such manufactured articles, materials, and supplies as have been manufactured in the United States
substantially all from articles, materials, or supplies mined, produced, or manufactured, as the case may be,
in the United States: Provided, that foreign articles, materials, or supplies may be used in the event and to the
extent that the RUS Administrator shall expressly in writing authorize such use pursuant to the provisions of
the Rural Electrification Act of 1938, being Title IV of Public Resolution No. 122, 75th Congress, approved
June 21, 1938. The Contractor agrees to submit to the Owner such certificate or certificates, signed by the
Contractor with respect to compliance with the foregoing provisions as the RUS Administrator from time to
time may require.
All materials and equipment furnished by the Contractor shall be listed in the latest List of Materials
Acceptable for Use on Telephone Systems of RUS Borrowers. The Contractor shall purchase
materials and supplies outright and not subject to any conditional sales agreement, bailment lease, or other
agreement reserving to the seller any right, title or interest therein.
All guarantees of materials and workmanship running in favor of the Contractor shall be transferred and
assigned to the Owner on completion of construction and at such time as the Contractor receives final
The Contractor shall save harmless and indemnify the Owner from any and all claims, suits, and proceedings
for the infringement of any patent or patents covering any materials or equipment provided by the Contractor
used in construction of the Project.
RUS Form 773 (12/90)