---
kind: "section"
citation: "7 C.F.R. § 1753.11"
title: "7"
number: "1753.11"
heading: "Contract amendments."
url: "https://uscodex.org/cfr/7/1753.11"
---

# §1753.11. Contract amendments.

- (a) The borrower must obtain RUS approval before execution of any amendment to a contract if
  - (1) The amendment alters the terms and conditions of the contract or changes the scope of the project covered by the contract regardless of the amount of the contract before amendment,
  - (2) The amendment increases the amount to be paid under the contract by 20% or more, or
  - (3) **The amendment causes an unbonded contract to require a contractor's performance bond.** This would occur when a contract that is executed in an amount below that requiring a performance bond by [7 CFR part 1788](/cfr/7/part1788.md), [subpart C](/cfr/7/subpartC.md), is amended to an amount above that amount.
- (b) **Advance RUS approval to execute other contract amendments is not required.** These amendments may be submitted to RUS at any time prior to closeout. If a borrower wishes to receive an advance of funds based on an amended contract amount (i.e., amendments that increase a contract by less than 20%), the borrower may initiate an increase in the amount approved for advance by submitting three copies of the amendment to RUS for approval.
- (c) For each amendment executed, the borrower shall make certain that:
  - (1) **The contractor's bond covers the additional work to be performed.** If the amendment by itself (or together with preceding amendments) increases the original contract price by 20% or more, a bond extension will be required to bring the penal sum of the bond to the total amended contract price.
  - (2) If an amendment covers construction in a county or state not included in the original contract, the borrower and contractor are licensed to do business in that location.
- (d) Upon execution of any amendment that causes the amended contract amount to exceed the original contract amount by 20% or more, three copies of the amendment shall be submitted to RUS for approval.

## Notes

### Amendments

[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39396, Sept. 27, 1990, as amended at 64 FR 16605, Apr. 6, 1999]

### Source

Source: 54 FR 39267, Sept. 25, 1989, unless otherwise noted. Redesignated at 55 FR 39396, Sept. 27, 1990.

### Authority

Authority: 5 U.S.C. 501, 7 U.S.C. 901 et seq.

### Amendments

[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39396, Sept. 27, 1990, as amended at 64 FR 16605, Apr. 6, 1999]