2003/08/13 Council Agenda Packet

Section 7 Audits, Inspections, and Records Retention WSDOT, the State Auditor, and any of their representatives shall have full access to and the right to examine, during normal business hours and as often as they deem necessary, all of the Contractor's records with respect to all matters covered by this Agreement. Such representatives shall be permitted to audit, examine and make excerpts or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, and other matters covered by this Agreement. In order to facilitate any audits and inspections, the Contractor shall retain all documents, papers, accounting records, and other materials pertaining to this Agreement for six years from the date of completion of the project or the project final payment date. However, in case of audit or litigation extending past that six years period, then the Contractor must retain all records until the audit or litigation is completed. The Contractor shall be responsible to assure that it, WSDOT, the State Auditor, and any of their representatives, retain comparable audit rights with respect to subcontractors to the Contractor within the scope of this Agreement. Section 8 Agreement Modifications I. Either party may request changes to this Agreement, including changes in the Scope of Work. Such changes that are mutually agreed upon shall be incorporated as written amendments to the Agreement. No variation or alteration of the terms of this Agreement shall be valid unless made in writing and signed by authorized representatives of the parties hereto. 2. Any additional funding secured by WSDOT beyond the amount identified in Section 4, Reimbursement and Payment will be allocated to the Contractor for the period July 1, 2004 to June 30, 2005 in accordance with the methodology described in Sections 1 and 2 of Exhibit I, Funding Allocation Methodology. If an increase in funding by the funding source augments the Contractor's allocation of funding under this Agreement, the Contractor and WSDOT agree to enter into an amendment to this Agreement providing for an appropriate change in the Scope of Work and/or the project amount in order to reflect any such increase in funding. 3. If a reduction of funding by the funding source reduces the Contractor's allocation of funding under this Agreement, the Contractor and WSDOT agree to enter into an amendment to this Agreement providing for an appropriate change in the Scope of Work and/or the project amount in order to reflect any such reduction of funding. Section 9 Recapture Provision In the event that the Contractor fails to expend state funds in accordance with state law and/or the provisions of this Agreement, WSDOT reserves the right to recapture state funds in an amount equivalent to the extent of noncompliance. Such right of recapture shall exist for a period not to exceed three (3) years following termination of the Agreement. Repayment by the Contractor of state funds under this recapture provision shall occur within thirty (30) days of demand. 10 Page 3 . GCA3666