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USDA/RHS

RIN: 0575-AC78

Publication ID: Spring 2010

Title: Community Facility Loans--Update Contract Guide Documents
Abstract: The Rural Housing Service (Agency) is amending its regulations to update contract guide documents and make minor revisions to streamline processing. Community Facilities uses American Institute of Architects (AIA) contract documents for the majority of their development work. Every 10 years, AIA revises their contract documents. Presently, Guide 27 includes attachments to amend AIA documents dated 1997. Replacing the attachments to Guide 27 with new attachments will conform to AIA documents dated 2007 for the architect's agreement and construction contract. Two new attachments will be added to amend AIA contract documents for Design/Build and Construction Management/Constructor contracts. Although the regulation allows these types of construction, the Agency has never had standardized guide documents to include Federal Government financing requirements. Standardized guide documents will reduce staff time spent incorporating that language into contracts individually. (1) Remove a restrictive reference in sections 1942.9(b) and 1942.18(l) that states design/build and construction management type of construction may not be used with grant funds. This regulatory requirement was placed in the regulations in the 1970s when the Agency had little/no experience with design/build or construction management. With the projects that been have completed since then, it has become apparent that the type of funding--grant or direct loan--should have no bearing on the type of construction. (2)Add language to clarify the type of Construction Management acceptable to the Agency. Since Construction Management was placed in the regulation in the 1970s, two types have evolved: Construction Management/Constructor (also called "At Risk") and Construction Management/Advisor ("No Risk"). For Agency funding purposes, it is necessary that Construction Management/Constructor be used rather than Construction Management/Advisor.
Agency: Department of Agriculture(USDA)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Proposed Rule Stage
Major: Undetermined	Unfunded Mandates: No
CFR Citation: 7 CFR 1942
Legal Authority: 5 USC 301 7 USC 1989 42 USC 1480

Legal Deadline: None

Timetable:

Action	Date	FR Cite
NPRM	11/00/2010
NPRM Comment Period End	01/00/2011

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Small Entities Affected: No	Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Agency Contact: William Downs Architectural Services Branch Chief, RD-RHS-PSS-AASB Department of Agriculture Rural Housing Service 1400 Independence Avenue SW, Washington, DC 20250 Phone:202 720-1499 Email: william.downs@usda.gov