Common use of CONTRACT METHOD Clause in Contracts

CONTRACT METHOD. This method of development will be used for all major construction except in cases where it is clearly not possible to obtain a con- tract at a reasonable or competitive cost. Work under this method is per- formed in accordance with a written contract. (1) Forms used. Form FmHA or its successor agency under Public Law 103– 354 1924–6, ‘‘Construction Contract,’’ will be used for SFH construction. Other contract documents for more complex construction, acceptable to the loan approval official and con- taining the requirements of subpart E of part 1901 of this chapter, may be used provided they are customarily used in the area and protect the inter- est of the borrower and the Govern- ment with respect to compliance with items such as the drawings, specifica- tions, payments for work, inspections, completion, nondiscrimination in con- struction work and acceptance of the work. If needed, the Office of the Gen- eral Counsel (OGC) will be consulted. The United States (including FmHA or its successor agency under Public Law 103–354) will not become a party to a construction contract or incur any li- ability under it.