Understanding the Federally Assisted Construction Contract: Key Legal Insights

Definition & Meaning

A federally assisted construction contract refers to any agreement between a government applicant and a contractor for construction work that is funded entirely or partially by government resources. This includes funds obtained through federal programs that involve grants, loans, insurance, or guarantees. Essentially, if a construction project receives any federal financial support, the agreement governing that project is considered a federally assisted construction contract.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A city receives a federal grant to build a new community center. The contract signed with the construction company to carry out this project is a federally assisted construction contract.

Example 2: A state agency borrows money from the federal government to renovate a public school. The agreement with the contractor for the renovation work qualifies as a federally assisted construction contract. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Key Differences
California Additional labor compliance requirements for state-funded projects.
Texas Specific local regulations may apply to federally funded projects.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Differences
Construction Contract Any agreement for construction work. Does not require federal funding.
Government Contract Any contract with a government entity. May not involve construction work specifically.

What to do if this term applies to you

If you are involved in a federally assisted construction contract, ensure compliance with all relevant federal regulations, especially regarding labor standards and equal opportunity. Consider using US Legal Forms' templates to manage the documentation effectively. If you encounter complex issues, consulting a legal professional is advisable.

Quick facts

  • Typical funding sources: Federal grants, loans, and insurance.
  • Jurisdiction: Federal law applies, with state variations.
  • Compliance requirements: Equal employment opportunity standards.

Key takeaways

Frequently asked questions

It is an agreement for construction work funded by federal resources.