IRVINE RANCH WATER DISTRICT -2009

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CITY agrees that if any revision during design or construction is requested by CITY to the Plans and Specifications and not approved by IRWD as a change order, and would increase the cost thereof, such increased costs shall be borne by CITY, and shall not be reimbursed by IRWD, except for such revision(s) and cost(s) as are determined necessary to construct the IRWD FACILITIES in accordance with the Plans and Specifications and could not reasonably have been foreseen at the time bids were received. The cost of any revisions requested by IRWD shall be reimbursed by IRWD as provided herein. SECTION 11. Within thirty (30) days following receipt from CITY of each invoice for the portion of a design or construction progress payment attributable to IRWD FACILITIES, together with supporting documentation, IRWD shall deposit with CITY the amount of such invoice. CITY shall maintain separate accounts for all amounts expended by CITY in relation to the IRWD FACILITIES. IRWD agrees to accept the IRWD FACILITIES when the Project, which includes the IRWD FACILITIES, has been completed, including any change orders approved by IRWD as provided in Section 10 hereof and accepted by CITY. Within sixty (60) days of CITY's final acceptance of the Project; a final accounting (the "Final Accounting") of the actual costs of all items associated with surveying, compaction testing, permits, construction, administration, accounting; reproductions, and legal costs attributable to the IRWD FACILITIES ("Costs") shall be made by CITY and submitted to IRWD, accompanied by receipts. and other supporting documentation. IRWD agrees to pay to CITY, within thirty (30) days of receipt of the Final Accounting, the total amount of the Costs, less the amount previously paid by IRWD pursuant to progress payment invoices. If the amount previously paid by IRWD pursuant to progress payment invoices exceeds the Costs as determined in the Final Accounting, CITY shall refund the difference to IRWD within thirty (30) days following preparation of the Final Accounting. SECTION 12. IRWD shall have sole and absolute discretion as to all aspects of design and construction of the IRWD FACILITIES, and IRWD shall be entitled to inspect the construction of IRWD FACILITIES as it deems necessary to assure compliance with the Plans and Specifications, including shop drawing review and/or material inspection thereof. IRWD will promptly notify CITY of any portion of the work on IRWD FACILITIES which appears not to conform to the Plans and Specifications. The determination of IRWD as to conformity of IRWD FACILITIES with the Plans and Specifications shall be made in IRWD's sole and absolute discretion. IRWD agrees not to unreasonably withhold its approval as to such conformity. CITY shall require its contractor to construct the IRWD FACILITIES so that the IRWD FACILITIES conform to the Plans and Specifications. CITY agrees to assume full Revised 12/22/04 -4-