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installed does not justify such inspection at that time, or that the character of material or workmanship is such that reinspection is found necessary, the cost of such reinspection including salary of the inspector(s), his traveling and other expenses, shall be borne by the Contractor and will be deducted from any money due him on his contract. 129 F.R. 9829, July 22, 1964)

(e) In the event the contractor fails or refuses to meet the requirement of paragraph (a) of this section, it is expressly agreed that the contract price will be reduced by 15 percent of the value of that portion of the percentage requirement which is accomplished by others. For the purposes of this provision, it is agreed that 15 percent is an acceptable estimate of the Contractor's overhead and profit, or mark-up, on that portion of the work which he fails or refuses to perform, with his own forces, in accordance with para. graph (a) of this section. (29 F.R. 9829, July 22, 1964, as amended at 31 F.R. 7178, May 17, 1966) 8 8–7.650–5 Inspection and acceptance.

Clause 10, General Provisions, SF 23A is supplemented as follows:

(a) No inspection of materials and finished articles will be made at place of production, manufacture, or shipment, unless otherwise noted in specifications. Samples must be submitted for approval as hereinafter noted, but inspection of materials, etc., will be made by the Resident Engineer upon delivery at site.

(b) Final inspection and acceptance of work shown by drawings and specifications forming a part of this contract shall not be binding or conclusive upon the United States if it shall be shown (1) that the contractor has willfully or through collusion with persons or firms engaged in the performance of the contract, or with an employe of the Federal Government, supplied inferior materials or workmanship, or (2) that the contractor has otherwise departed from the terms of the contract. The foregoing will not prevent reliance upon any other legal basis for rejection. If defects of any kind should develop during period that guaranties covering such workmanship or materials are in force, the United States shall have the right, notwithstanding such final acceptance and payment. to have the work removed and to cause the work to be properly performed and satisfactory material supplied to such extent as in the opinion of the Contracting Officer may be necessary to complete the work in accordance with the drawings and specifications therefor at the cost and expense of the contractor and the sureties on his bond, and shall have the right to recover against the contractor and his sureties the cost of such work, together with such other damages as the United States may suffer because of default of the contractor in the premises, the same as though such acceptance and final payment had not been made.

(c) Final inspection will not be made until the contract work is ready for beneficial use or occupancy. The Contractor shall notify the Contracting Officer, through the Resident Engineer, fifteen (15) days prior to the date on which the work will be ready for final inspection. Should it develop that the work

$ 8–7.650–6 Guaranty.

Guaranty (a) Except when a different period is specifically prescribed, all work under this contract shall be guaranteed for a period of one (1) year from the date the work is completed, as established by the Government. All guaranties embraced in or required by this contract are subject to the terms of this paragraph unless otherwise expressly agreed in writing by parties to this contract.

(b) Whenever work is required to be done under this guaranty, the contractor whenever notified by the contracting officer, must immediately:

(1) Place in satisfactory condition in every particular any of the guaranteed work, and

(2) Make good all damage to buildings and grounds, or equipment or contents thereof if such unsatisfactory condition or damage develops within period stipulated by guaranty and is due to use of materials or workmanship which are inferior, defective, or not in accordance with this contract, and must make good any work or materials, or equipment and contents of said buildings or grounds, which are disturbed in fulfilling requirements of this contract or of any guaranty embraced in or required hereby. If this contractor disturbs any work under another contract, he must restore such disturbed work to a condition satisfactory to the Contracting Oficer and guarantee such restored work.

(c) Upon the Contractor's failure to comply with the terms of any guaranty under this contract or still running upon work originally executed by other contractors, the Contracting Officer may:

(1) Have such work performed as he deems necessary to fulfill such guaranties, or

(2) Allow such damaged or defective work or portion of buildings or grounds or contents or equipment of building or work disturbed in fulfilling guaranties or guaranteed work, which shows such a condition as to make any such guaranty operative, to remain in such unsatisfactory condition. Provided, that in either event the Contractor shall promptly pay the United States such sums as were (in first instance) expended so as to fulfill such guaranty or as it would have been (in second instance) necessary to expand to fulfill such guaranty.

(d) Unless otherwise specifically pre- own employees, and of the subcontractors scribed in a particular guaranty, usual wear and their employees. He shall also be reand tear and the result of accident not sponsible for coordination of the work of chargeable to the Contractor or his agents the trades, subcontractors, and materialmen. are excepted from the requirements of this (c) The Government or its representatives clause. Everything done in fulfillment of will not undertake to settle any differences any guaranty shall be without additional between the Contractor and his subcontracexpense to the United States.

tors, or between subcontractors. (28 F.R. 2337, Mar. 12, 1963, as amended at

(d) The Government reserves the right 29 F.R. 9830, July 22, 1964)

to refuse to permit employment on the work or require dismissal from the work of any

subcontractor who, by reason of previous 88–7.650–7 Correspondence.

unsatisfactory work on Veterans AdminisAll correspondence relative to this contract tration projects or for any other reason, is shall bear Specification Number, Project considered by the Contracting Officer to be Number, Veterans Administration Contract incompetent or otherwise objectionable. Number, title of project and name of station. [28 F.R. 2337, Mar. 12, 1963, as amended at [29 F.R. 9830, July 22, 1964)

29 F.R. 9830, July 22, 1964)

$ 8–7.650–14 Payments to contractors. $ 8–7.650–9 Government supervision.

Clause 7, General Provisions SF 23A is (a) The work will be under the direction amended to include the following: of the Veterans Administration Contracting (a) The Contractor shall submit a schedOfficer, who may designate another VA em ule of cost to the Contracting Officer for ployee to act as Resident Engineer at the approval. Such schedule will be signed construction site.

and submitted in quadruplicate. The ap(b) Except as provided below, the Resi proved schedule will be the basis of estident Engineer's directions will not conflict mating progress payments to the Contractor with or change contract requirements.

for work completed and will be a condition (c) Within the limits of any specific au precedent to making such payments. This thority delegated to him by the Contracting schedule shall show cost by the branches Oficer, the Resident Engineer may by writ of work for each building or unit of the ten direction make changes in the work. contract, as instructed by the Resident EnThe Contractor shall be advised of the ex gineer. tent of such authority.

(1) The branches shall be subdivided into (29 F.R. 9830, July 22, 1964)

as many subbranches as are necessary to

cover all component parts of the contract $ 8–7.650–10 Daily report of workmen work. and material.

(2) Costs as shown by this schedule must The contractor shall furnish to the Resi

be true costs and, should the Resident Endent Engineer each day a consolidated re

gineer so desire, he may require the Conport for the preceding work day in which is

tractor to submit his original estimate sheets shown the number of laborers, mechanics,

or other information to substantiate detail foremen and pieces of heavy equipment used

makeup of schedule. or employed by himself and his subcontrac

(3) The sum of subbranches, as applied tors. The report shall bear the name of

to each branch, shall equal the total cost of the firm, the branch of work which they

such branch. The total costs of all branches perform such as concrete, plastering, ma

shall equal the contract price.

(4) Bonds, insurance and similar items sonry, plumbing, sheet metal work, etc. Re

shall be prorated and included in the cost of port shall give breakdown of employees by

each branch of the work. crafts, location where employed, and work

(b) In addition to this cost schedule, the performed. The report shall also list ma

Contractor shall submit such unit costs as terials delivered to the site on the date cov

may be specifically requested. The unit ered by the report.

costs shall be those used by the Contractor (29 F.R. 9830, July 22, 1964)

in preparing his bid and will not be binding

as pertaining to any contract changes. $ 8–7.650–13 Subcontracts.

(c) The Government reserves the right

to withhold payment until samples, shop Subcontracts

drawings, Engineer's certificates, additional (a) Nothing contained in this contract bonds, payrolls, weekly statements of comshall be construed as creating any contrac

pliance, nondiscrimination compliance retual relationship between any subcontractor

ports, or any other things required by this

contract, have been submitted to the satisand the Government. Divisions or sections

faction of the Contracting Officer. of specifications are not intended to control the Contractor in dividing work among sub

(d) As a part of final settlement of this

contract, the Contractor will be required to contractors, or to limit work performed by

furnish a Release of Claims to the Governany trade.

ment. (b) The Contractor shall be responsible to the Government for acts and omissions of his [29 F.R. 9830, July 22, 1964)

$ 8–7.650–15 Schedule of work prog. exceed ratio permitted by controlling apress.

prenticeship agreement. Contractor shall

furnish Government's Resident Engineer a The contractor shall submit, with the

copy of such agreement establishing apschedule of costs required by $ 8–7.650–14, a

prenticeship ratio. progress curve indicating anticipated work

(c) Payrolls and basic records. The conprogression against lapsed contract time, for

tractor shall submit copies of payrolls reapproval of the Contracting Officer. Sub

quired by Clause 4(b) of Standard Form mission shall be in quadruplicate on forms

19-A to the Contracting Officer through the furnished by the Veterans Administration,

Resident Engineer or Engineer Officer, when and shall be signed by the Contractor.

acting in that capacity, within seven (7) [29 F.R. 9830, July 22, 1964)

days after the close of the weekly payroll

period. Said payroll shall show: § 8-7.650–16 Supplementary labor

(1) The name of the contractor or substandards.

contractor; (a) Davis-Bacon Act. (40 U.S.C. 276a-a (2) The employee's full name, address, (7)). No increase in the contract price will and social security number. (The embe allowed or authorized because of payment ployee's address need only be shown on the of wage rates in excess of those listed.

first payroll unless there is a subsequent (b) Apprentices. The evidence required change of address); by Clause 3, Standard Form 19A, will be (3) The employee's classification; furnished by the contractor at the time the (4) Hourly wage rate and where appliapprentice's name first appears on his or his cable overtime hourly rate: subcontractor's payroll. Evidence may con (5) The daily and weekly hours worked sist of:

in such classification, including actual over(1) A true or photostatic copy of regis time hours worked (not adjusted); tered or approved apprenticeship agreement, (6) The itemized deductions made; and or

(7) The net wages paid. (2) A true or photostatic copy of apprenticeship certificate, showing approval of

(d) Copeland (Anti-Kickback) Act-Non

rebate of wages. The Contractor shall, and apprenticeship by appropriate registration agency, or

shall cause each subcontractor engaged at the (3) A list of apprentices approved by

site of the work to furnish, with his above appropriate registration agency showing

mentioned weekly payroll, a statement in name and trade of each apprentice and date

duplicate, with regard to the wages paid. of registration, or

The statement shall be executed by the Con(4) A written statement from a member

tractor or subcontractor as appropriate, or by of joint apprenticeship committee, not a

an authorized officer or employee of the Con.

tractor or subcontractor who supervises payparty to project contract, certifying the named apprentices are employed under su

ment of wages, and shall be in the following

form: pervision of the joint apprenticeship committee, and are registered with the desig

Weekly Statement of Compliance nated State or Federal apprenticeship

Date ------------agency (5) The contractor shall also furnish evi

(Name of signatory party) dence of the apprentices' period of apprenticeship. Working ratio of apprentices to

(Title) journeymen for a particular trade shall not do hereby state:

(1) That I pay or supervise the payment of the persons employed by

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(Contractor or subcontractor) on the --

----------; (Building or work) that during the payroll period commencing on the ------ day of ---------- 19--, and ending the ------ day of ---------- 19--; all persons employed on said project have been paid the full weekly wages earned, that no rebates have been or will be made either directly or indirectly to or on behalf of said

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(Contractor or subcontractor) from the full weekly wages earned by any person and that no deductions have been made either directly or indirectly from the full weekly wages earned by any person, other than permissible deductions as defined in Regulations, Part 3 (29 CFR Part 3), issued by the Secretary of Labor under the Copeland Act, as amended (48 Stat. 948, 63 Stat. 108, 72 Stat. 967; 40 U.S.C. 276c), and de. scribed below:

(2) That the payrolls submitted for the above period are correct and complete, that the wage rates for laborers or mechanics contained therein are not less than the appli. cable wage rates contained in the wage determination decision of the Secretary of Labor incorporated into the contract; that the classifications set forth therein for each laborer or mechanic conform with the work he performed.

(3) That all apprentices employed on the contract during the above payroll period are duly registered in a bona fide apprenticeship program registered with a State apprenticeship agency recognized by the Fed. eral Committee on Apprenticeship, U.S. Department of Labor, or if no such recognized agency exists in a State, are registered with the Bureau of Apprenticeship, U.S. Department of Labor.

(a) In order to protect the lives and health of employees and others, the Contractor in performance of this contract shall take such safety precautions as are required by insurance underwriters, and shall comply with all provisions of Department of Army, Corps of Engineers, U.S. Army, “General Safety Requirements," EM 385-1-1, 13 March 1958, as amended prior to the date of this contract. If compliance with a provision of said "General Safety Requirements," would cause the Contractor to be in noncompliance with a requirement of the insurance underwriters, then the requirement of the insurance underwriters, in that specific instance, shall govern.

(b) The Contractor shall maintain an accurate record of, and shall report to the Contracting Officer through the Resident Engineer in the manner and on forms prescribed by the Contracting Officer, all cases of death, occupational disease, and traumatic injury arising out of, or in course of performance of this contract.

(c) The Contracting Officer, through the Resident Engineer, will notify the Contractor in writing of any noncompliance with the General Safety Requirements and necessary corrective action to be taken. Upon receipt of such notice, the Contractor will immediately correct the conditions to which attention has been directed.

(d) If the Contractor fails to promptly comply with the Contracting Officer's demand for necessary corrective action, as mentioned in the preceding paragraph, the Contracting Officer may order a stoppage of all or any part of the work and have corrective action taken by others and the cost of such corrective action shall be charged to the Contractor. Work stoppage(s), issued hereunder, will be lifted when necessary corrective action has been taken by the Contractor or the Government. Work stoppage(s) issued hereunder shall not be the basis of a claim for time lost or for any delays directly or indirectly attributable to Contractor's failure to comply with the above specified safety requirements.

(e) The General Safety Requirements, mentioned above, may be obtained from the Contracting Officer.

(Signature and Title) (29 F.R. 9830, July 22, 1964, as amended at 31 F.R. 7178, May 17, 1966) § 8–7.650–19 Workmen's compensation

laws. The Act of June 25, 1936, 49 Stat. 1938 (40 U.S.C. 290) authorizes the constituted authority of the several states to apply their workmen's compensation laws to all lands and premises owned or held by the United States. (29 F.R. 9831, July 22, 1964)

[29 F.R. 18013, Dec. 18, 1964)

88–7.650-21 Contract changes.

washing required by the several technical

sections of the specifications satisfactory to Clause 3. Changes and Clause 4, Changed the Contracting Officer. Conditions of General Provisions of SF 23A

(29 F.R. 9831, July 22, 1964) are supplemented as follows:

(a) When requested by the Contracting § 8–7.650–23 Release of claims. Officer, the Contractor shall submit proposals for changes in work to the resident

As a part of the final settlement, the engineer. Proposals shall be in legible form, Veterans Administration requires the original and five copies with an itemized Contractor to furnish the release rebreakdown that will include material quanti ferred to in Clause 7, SF 23A General ties and unit prices, labor costs (separated Provisions. This release will be in the into trades), construction equipment, etc.

following form: (Labor costs are to be identified with specific material placed or operation performed.)

Release Pursuant Clause 7 (SF 23A) (b) Allowances not to exceed 10% each for

For and in consideration of the payoverhead and profit for the party performing

ments heretofore made, and payment of the the work will be based upon the value of la

above recited sum now due by reason of perbor, material and use of construction equip

formance of the above contract, the underment required to accomplish the change. As

signed Contractor hereby releases and disthe value of the change increases, a declin

charges the United States of America of and ing scale will be used in negotiating the per

from all liabilities, obligations, and claims centage of overhead and profit.

whatsoever under or arising out of said con(c) When the work is done by a subcon

tract, except the following: tractor, the prime contractor's fee will be

(a) Claims which are the subject of apbased upon the net increased cost to the

peal, pending disposition by the Veterans Adprime contractor. The fee will be negoti

ministration Contract Appeals Board. ated and will follow a declining scale which

(b) Unresolved matters as indicated in the will not exceed 10% on the first $10,000 of

above statement of account. the change and not exceed 742 % over

(c) Other specific claims: (List below. If $10,000.

none, so state.) (d) Where the contractor or subcontrac

All other terms and conditions of the above tor's portion of a change involves credit

mentioned contract remain in full force and items, such items must be deducted prior to

effect. adding overhead and profit for the party per

In witness whereof, this release has been forming the work. Where a change involves

duly executed this ------ day of --credit items only, such items will be net, i.e., overhead, profit and fee are excluded. The contractor's fee is limited to the net increase

(Contractor) to him of subcontractors' portions computed

By: --in accordance herewith. (e) Cost of Federal Old Age Benefit (So

Title: --cial Security) tax and of Workmen's Com $ 8–7.651 Clauses for fixed price conpensation and Public Liability insurance ap

struction contracts estimated to expertaining to changes are allowable. While

ceed $2,000 but not to exceed no percentage will be allowed thereon for

$10,000. overhead or profit, prime contractor's fee will be allowed on such items in subcontractor's § 8–7.651-1 Bond premium adjustment. proposals. (f) Overhead and contractor's fee percent

Insert the clause set forth in g 8–10.ages shall be considered to include insurance

5002. other than mentioned herein, field and office

8 8–7.651-2 Rights reserved. supervisors and assistants, watchman, use of small tools, incidental job burdens, and gen

Rights Reserved eral home office expenses, and no separate

(a) The Government reserves the followallowance will be made therefor.

ing rights: To refuse to permit employment (g) Bond premium adjustment, conse

on the work or require dismissal from the quent upon changes ordered, will be made as

work any of the Contractor's employees or elsewhere specified at the time of final set

agents or Subcontractor's, who, by reason of tlement under the contract and will not be

previous unsatisfactory work on VA projects, included in the individual change.

or for any other reason, are considered by (29 F.R. 9831, July 22, 1964)

the Contracting Officer to be incompetent or

otherwise objectionable; $ 8–7.650-22 Removal of debris and

(b) To withhold payment until samples, final cleanup.

shop drawings, certificates, or such other Upon completion of the work, the contrac things as are required by this contract have tor shall leave the premises in a neat and been properly submitted to the satisfaction clean condition and do all cleaning and of the Contracting Officer.

19-

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