bidders and others interested, who may be present either in person or by representative.

102.13 Disqualification of Bidders. The Government reserves the right to disqualify a bidder for any of the following reasons, or as otherwise set forth in the standard forms contained in the Invitation for Bids:

(a) Lack of competency as revealed by the financial statement and experience questionnaires required under subsection 102.01.

(b) Uncompleted work which, in the judgment of the Government might hinder or prevent the prompt completion of additional work if awarded.

(c) Failure to pay or satisfactorily settle all bills due for labor and material on former contracts in force at the time of advertisement for bids.

(d) Failure to comply with any qualification regulations of the Government.

(e) Default under previous contracts.

(f) More than one bid for the same work from a bidder under the same or different name.

(g) Evidence of collusion among bidders. Participants in such collusion will receive no recognition as bidders for any future work of the Government until any such participant shall have been reinstated as a qualified bidder.

(h) Otherwise not responsible.

102.14 Material Guarantee. The following clause of SF23-A applies and shall prevail in event of any conflict in the contract provisions:

9. MATERIAL AND WORKMANSHIP

(a) Unless otherwise specifically provided in this contract, all equipment, material, and articles incorporated in the work covered by this contract are to be new and of the most suitable grade for the purpose intended. Unless otherwise specifically provided in this contract, reference to any equipment, material, article, or patented process, by trade name, make, or catalog number, shall be regarded as establishing a standard of quality and shall not be construed as limiting competition, and the Contractor may, at his option, use any equipment, material, article, or process which, in the judgment of the Contracting Officer, is equal to that named. The Contractor shall furnish to the Contracting Officer for his approval the name of the manufacturer, the model number, and other identifying data and information respecting the performance, capacity, nature, and rating of the machinery and mechanical and other equipment which the Contractor contemplates incorporating in the work. When required by this contract or when called for by the Contracting Officer, the Contractor

shall furnish the Contracting Officer for approval full information concerning the material or articles which he contemplates incorporating in the work. When so directed, samples shall be submitted for approval at the Contractor's expense, with all shipping charges repaid. Machinery, equipment, material, and articles installed or used without required approval shall be at the risk of subsequent rejection.

(b) All work under this contract shall be performed in a skillful and workmanlike manner. The Contracting Officer may, in writing, require the Contractor to remove from the work any employee the Contracting Officer deems incompetent, careless, or otherwise objectionable.

Section 103.-AWARD AND EXECUTION OF CONTRACT

103.01 Consideration of Bids. After the bids are opened and read, they will be compared on the basis of the summation of the products of the approximate quantities shown in the bid schedule by the unit bid prices. The results of such comparisons will be immediately available to the public. In the event of a discrepancy between unit bid prices and extensions, the unit bid price will govern.

103.02 Award of Contract. The following clause of SF22 applies and shall prevail in event of any conflict in the contract provisions:

10. Award of Contract. (a) Award of contract will be made to that responsible bidder whose bid, conforming to the invitation for bids, is most advantageous to the Government, price and other factors considered.

(b) The Government may, when in its interest, reject any or all bids or waive any informality in bids received. (c) The Government may accept any item or combination of items of a bid, unless precluded by the invitation for bids or the bidder includes in his bid a restrictive limitation.

The award will be made by written acceptance to the successful bidder within the period specified in the Bid Forms.

103.04 Return of Bid Guarantee. All bid guarantees other than bid bonds, except those of the two lowest bidders, may be returned immediately following the opening and checking of the bids. The retained bid guarantee of the

unsuccessful of the two lowest bidders will be returned within 10 days following the award of contract and that of the successful bidder will be returned after satisfactory bonds have been furnished and the contract has been executed.

See subsection 102.08 for general instructions on bid guarantees.

103.05 Contract and Bonds. The following clause of SF22 applies and shall prevail in event of any conflict in the contract provisions:

11. Contract and Bonds. The bidder whose bid is accepted will, within the time established in the bid, enter into a written contract with the Government and, if required, furnish performance and payment bonds on Government standard forms in the amount indicated in the invitation for bids or the specifications. (See below). (a) A performance bond in the penal amount of 100 percent of the contract price at the time of award. (b) A payment bond as follows:

(1) When the contract price is not more than $1,000,000, the penal amount shall be 50 percent of the contract price;

(2) When the contract price is more than $1,000,000, but not more than $5,000,000, the penal amount shall be 40 percent of the contract price; and

(3) When the contract price is more than $5,000,000, the penal amount shall be $2,500,000.

(c) Additional Bond Security. The following clause of SF23-A also applies and shall prevail in event of any conflict in the contract provisions:

16. Additional Bond Security.

If any surety upon any bond furnished in connection with this contract becomes unacceptable to the Government, or if any such surety fails to furnish reports as to his financial condition from time to time as requested by the Government, the Contractor shall promptly furnish such additional security as may be required from time to time to protect the interests of the Government and of persons supplying labor or materials in the prosecution of the work contemplated by the contract.

103.07 Failure to Execute Contract. If the successful bidder does not execute the contract and furnish bonds in accordance with the provisions contained in the Bid Forms, the Government will retain an amount from the bid guarantee equal to the difference between the bid amount and the cost to the Government of procuring the required work, if the latter amount be in excess of the former.

Section 104.-SCOPE OF WORK

104.01 Intent of Contract. The intent of the contract is to provide for the construction and completion in every detail of the work described. The Contractor shall furnish all labor, materials, equipment, tools, transportation and supplies required to complete the work in accordance with the plans, specifications and terms of the contract.

104.02 Alteration of Plans or Character of Work. The following clauses of SF23-A apply and shall prevail in event of any conflict in the contract provisions :

CHANGES

(a) The Contracting Officer may, at any time, without notice to the sureties, by written order designated or indicated to be a change order, make any change in the work within the general scope of the contract, including but not limited to changes:

(i) in the specifications (including drawings and designs);

(ii) in the method or manner of performance of the work;

(iii) in the Government-furnished facilities, equipment, materials, services, or site; or

(iv) directing acceleration in the performance of the work.

(b) Any other written order or an oral order (which terms as used in this paragraph (b) shall include direction, instruction, interpretation, or determination) from the Contracting Officer, which causes any such change, shall be treated as a change order under this clause, provided that the Contractor gives the Contracting Officer written notice stating the date, circumstances, and source of the order and that the Contractor regards the order as a change order.

(c) Except as herein provided, no order, statement, or conduct of the Contracting Officer shall be treated as a change under this clause or entitle the Contractor to an equitable adjustment hereunder.

(d) If any change under this clause causes an increase or decrease in the Contractor's cost of, or the time required for, the performance of any part of the work under this contract, whether or not changed by any order, an equitable adjustment shall be made and the contract modified in writing accordingly: PROVIDED, HOWEVER, That except for claims based on defective specifications, no claim for any change under (b) above shall be allowed for any costs incurred more than 20 days before the

Contractor gives written notice as therein required: AND PROVIDED FURTHER, That in the case of defective specifications for which the Government is responsible, the equitable adjustment shall include any increased cost reasonably incurred by the Contractor in attempting to comply with such defective specifications.

(e) If the Contractor intends to assert a claim for an equitable adjustment under this clause, he must, within 30 days after receipt of a written change order under (a) above or the furnishing of a written notice under (b) above, submit to the Contracting Officer a written statement setting forth the general nature and monetary extent of such claim, unless this period is extended by the Government. The statement of claim hereunder may be included in the notice under (b) above.

(f) No claim by the Contractor for an equitable adjustment hereunder shall be allowed if asserted after final payment under this contract.

DIFFERING SITE CONDITIONS

(a) The Contractor shall promptly, and before such conditions are disturbed, notify the Contracting Officer in writing of: (1) Subsurface or latent physical conditions at the site differing materially from these indicated in this contract, or (2) unknown physical conditions at the site, of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inhering in work of the character provided for in this contract. The contracting Officer shall promptly investigate the conditions, and if he finds that such conditions do materially so differ and cause an increase of decrease in the Contractor's cost of, or the time required for, performance of any part of the work under this contract, whether or not changed as a result of such conditions, an equitable adjustment shall be made and the contract modified in writing accordingly.

(b) No claim of the Contractor under this clause shall be allowed unless the Contractor has given the notice required in (a) above; provided, however, the time prescribed therefor may be extended by the Government.

(c) No claim by the Contractor for an equitable adjustment hereunder shall be allowed if asserted after final payment under this contract.

It is mutually agreed that it is inherent in the nature of highway construction that some changes in the plans and specifications may be necessary during the course of construction to adjust them to field conditions and that it is of the essence of the contract to recognize a normal and ex