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525-010-40 <br /> CONSTRUCTION <br /> OGC - 11/03 <br /> Pape 5 of 12 <br /> 7 .00 The Department's Obligations : Subject to other provisions hereof, the Department will honor requests for <br /> reimbursement to the Agency in amounts and at times deemed by the Department to be proper to ensure the carrying out <br /> of the. project and payment of the eligible costs . However, notwithstanding any other provision of this Agreement, the <br /> Department may elect, by notice in writing , not to make a payment if: <br /> 7 .01 Misrepresentation : The Agency shall have made misrepresentation of a material nature in its a Dplication , or any <br /> supplement thereto or amendment thereof, or in or with respect to any document or data furnished therewith or pursuant <br /> hereto ; <br /> 7 .02 Litigation : There is then pending litigation with respect to the performance by the Agency of an of its duties or <br /> obligations which may jeopardize or adversely affect the project, this Agreement or payments to the project; <br /> 7 .03 Approval by Department: The Agency shall have taken any action pertaining to the project, which under this <br /> Agreement, requires the approval of the Department or has made related expenditure or incurred related obligations <br /> without having been advised by the Department that same are approved ; <br /> 7 .04 Conflict of Interests : There has been any violation of the conflict of interest provisions contained herein in 12 . 06 ; or <br /> 7 .05 Default: The Agency has been determined by the Department to be in default under any of the provisions of the <br /> Agreement. <br /> 7 . 06 Federal Participation : The Department may suspend or terminate payment for that portion oft a project which the <br /> FHWA, or the Department acting in lieu of the FHWA, may designate as ineligible for federal-aid . <br /> 7 . 07 Disallowed Costs : In determining the amount of the payment, the Department will exclude all p oject costs incurred <br /> by the Agency prior to the effective date of this Agreement or the date of authorization , costs incurred after the expiration <br /> of the Agreement, costs which are not provided for in the latest approved schedule of funding for the project, and costs <br /> attributable to goods or services received under a contract or other arrangements which have not been approved in writing <br /> by the Department. <br /> 7 .08 Final Invoices : The Agency must submit the final invoice on the project to the Department withi one hundred twenty <br /> ( 120) days after the completion of the project. Invoices submitted after the one hundred twenty ( 120) Jay time period may <br /> not be paid . <br /> 8 .00 Termination or Suspension of Project: <br /> 8 .01 Termination or Suspension Generally : The Department may , by written notice to the Agency , suspend any or all of <br /> its obligations under this Agreement until such time as the event or condition resulting in such suspension has ceased or <br /> been corrected , or the Department may terminate this Agreement in whole or in part at any time the interest of the <br /> Department requires such termination . <br /> If the Department determines that the performance of the Agency is not satisfactory , the Department shall have the option <br /> of (a) immediately terminating this Agreement or ( b) suspending this Agreement and notifying the Ag ncy of the deficiency <br /> with a requirement that the deficiency be corrected within a specified time , otherwise the Agreemen will be terminated at <br /> the end of such time . Suspension of the contract will not affect the time period for completion of this greement. <br /> If the Department requires termination of this Agreement for reasons other than unsatisfactory perfor nance of the Agency , <br /> the Department shall notify the Agency of such termination , with instructions as to the effective ate of termination <br /> or <br /> specify the stage of work at which this Agreement is terminated . <br /> If this Agreement is terminated before performance is completed , the Agency shall be paid for the wok satisfactorily <br /> performed . Payment is to be on the basis of substantiated costs . <br /> 8 . 02 Action Subsequent to Notice of Termination or Suspension . Upon receipt of any final termination or suspension <br /> notice under this paragraph , the Agency shall proceed promptly to carry out the actions required ther in which may <br /> include any or all of the following : (a) necessary action to terminate or suspend , as the case may be , roject activities and <br /> contracts and such other action as may be required or desirable to keep to the minimum the costs upon the basis of which <br /> the financing is to be computed ; (b) furnish a statement of the project activities and contracts , and ott er undertakings the <br /> cost of which are otherwise includable as project costs . The termination or suspension shall be carrieJ out in conformity <br /> with the latest schedule , plan , and costs approved by the Department or upon the basis of terms and onditions <br />