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525-010.40 <br />CONSTRUCTION <br />OGC - 11103 <br />Page 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 application, 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 any 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 />Aqreement. <br />7.06 Federal Participation: The Department may suspend or terminate payment for that portion of the 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 project 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 hot 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 within one hundred twenty <br />(120) days after the completion of the project. Invoices submitted after the one hundred twenty (120) daytime 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 Agency of the deficiency <br />with a requirement that the deficiency be corrected within a specified time, otherwise the Agreement will be terminated at <br />the end of such time. Suspension of the contract will not affect the time period for completion of this Agreement. <br />If the Department requires termination of -this Agreement for reasons other than unsatisfactory performance of the Agency, <br />the Department shall notify the Agency of such termination, with instructions as to the effective date of termination 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 work 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 therein which may <br />include any or all of the following: (a) necessary action to terminate or suspend, as the case may be, project 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 other undertakings the <br />cost of which are otherwise includable as project costs. The termination or suspension shall be carried out in conformity <br />with the latest schedule, plan, and costs approved by the Department or upon the basis of terms and conditions <br />