---
kind: "section"
citation: "7 C.F.R. § 1788.49"
title: "7"
number: "1788.49"
heading: "Contractors' bond requirements."
url: "https://uscodex.org/cfr/7/1788.49"
---

# §1788.49. Contractors' bond requirements.


Construction contracts in amounts in excess of $250,000 for facilities shall require contractors to secure a contractors' bond, on a form approved by RUS, attached to the contract in a penal sum of not less than the contract price, which is the sum of all labor and materials including owner-furnished materials installed in the project. RUS Form 168b is for use when the contract exceeds $250,000. RUS Form 168c is for use when the contractor's surety has accepted a Small Business Administration guarantee and the contract is for $1,000,000 or less. For minor construction contracts under which work will be done in sections and no section will exceed a total cost of $250,000, the borrower may waive the requirement for a contractors' bond.


## Notes

### Authority

Authority: 7 U.S.C. 901 et seq.; 7 U.S.C. 1921 et seq.; 7 U.S.C. 6941 et seq.

### Source

Source: 64 FR 2, Jan. 4, 1999, unless otherwise noted.