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Rural Development Projects Outline

  1. Selected by client for engineering - Set Up a CLIENT FILE - We Must Have A Job Number BEFORE Doing This

  2. Pre-application filing to Rural Development, await response - Rural Development File (3 cc) Form 621 - Pre-application with MS Guide I (or 1A) State and Regional Clearinghouse Comments, Preliminary Engineering Report, Form 1940-2 Request for Environmental Inventory w/Exhibits (17) (including flood plain map showing franchise area and a topo map)

  3. Preliminary Engineering Report and form application to Rural Development await response (3 cc) Form 624 - Preliminary engineering report (only send a copy if this has been revised since the pre-application was done) MS Guide SA - Outstanding Obligations (may be done by Rural Development) If a public body, need a copy of the Charter.

  4. After Rural Development approval, District Director usually holds a conference with client, attorney and engineer on letter of conditions

  5. Client accepts and project work begins

    • Engineering Agreement
    • Field Work
    • Design
    • Plans and Specs
    • Prepare easement map
    • Review with client
    • Submit (4 copies) P's & S's to Board of Health (Water Jobs) and Rural Development for approval. NOTE: If the client is a non-profit association, we must supply to the attorney for application to MS Public Service Commission the following: (expansion only or add franchise area)
      1. Plans and Specs
      2. Letter of approval from Board of Health
      3. Legal description of service area
      4. Half-scale maps with area marked
      5. Possibly rate schedule details
      6. witness at hearing in Jackson

  6. Set bid date agreeable to Rural Development and client 5 to 6 weeks in advance (10:30 A.M. on Tues, Wed or Thurs)

    • Send advertisement to attorney for publication - request proof of publication, if out of Town, call paper and request clipping of Advertisement for Bids - ADVERTISE 3 TIMES & VERIFY (Don't Forget To Send The Advertisement To The MS Procurement Center Also!!!!)
    • Letters to potential bidders
    • Start a bidders file

  7. 7 to 10 days before bid opening - letter to board members & attorney reminding of bid opening

  8. Need for bid opening

    • Tabulation forms
    • Bidder's file
    • Client file
    • Rural Development file
    • Letter opener
    • Calculator
    • Extension Cord
    • NOTICE OF AWARD form (to be signed by Owner & low bidder)
    • Get proof of publication
    • Resolution of Award

  9. After bid opening, make formal report to Rural Development

    • Resolution of conditional award - Needs To Go To Bid Opening
    • Certified copy of proposal
    • Certified copy of bid tabulation
    • Copy of bid security

  10. Prepare contracts and send to contractor. After returned, check all details and assemble

  11. Pre-construction conference

    • Sufficient copies of report form filled out- ITEM C ON FORM MUST READ CALENDAR DAYS
    • Work order prepared (Notice To Proceed)
    • All ready for Owner execution
    • Rural Development said they will not approve contracts unless everything except Notice to Proceed is executed. (Get Signed By The Owner First.)

  12. Rural Development Inspector gets a Conformed Copy of the Contract.

  13. Be sure contractor has executed Rural Development form 400-6, Compliance Statement, if not take blank form.

  14. Rural Development now requires that the Performance and Payment Bonds shall be made in the name of the Owner and the United States acting through Rural Development as co-obligee. (this is found in Information for Bidders: pag·e 2 of 3)

  15. Rural Development Estimate - Owner has to execute estimate, 3 copies to Rural Development with request that they return one approved copy to Engineer. Rural Development does not require Contractor to sign estimates.

  • The number of estimates that Rural Development needs if the loan amount is less than $50,000 is four (4). They are for the following people:
    • Owner
    • Rural Development
    • Engineer
    • Contractor
  • The number of estimates that Rural Development needs if the loan amount is more than $50,000 is five (5). They are for the following people:
    • Owner
    • Rural Development
    • Engineer
    • Contractor
    • Bank (Interim financing)
  • Generally we will be doing 5 copies of estimates. Usually Rural Development does the final distribution of estimates, if not, order of distribution after Rural Development returns fully executed estimates:
    • Town: use transmittal form to send
    • Engineer - file Estimate in Contractor's File Left Side - should have letter from Rural Development in RDA File
    • Contractor - use transmittal form to send
  • State statute requires contracts under $750,000 hold 10% retainage until project is substantially complete.

  1. A "pre-final" inspection will be required on all Rural Development financed projects. Their office needs to be given two (2) weeks advance notice when scheduling the inspection in order for an Rural Development representative to attend. If the project checks out in all categories, the "pre-final" inspection could result in being the final inspection.

  2. Change Orders - Rural Development requests that we include information as to the status of the project when submitting a change order to them for review. A statement similar to the following will suffice: "Based upon the last partial payment estimate this contract was ___% complete". When using contract change order Form Rural Development 424-7 the information should be included in the space provided for "Justification". Where other forms are used the information should be shown in a conspicuous place on the form.

  3. Before we begin filling out the forms, check and make sure that we have the latest forms.