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Port Gardner Bay Outfall Replacement Agreement <br /> be subject to indemnification or recoupment if one Participant is later <br /> determined to be at fault or have caused the extra expense(in whole or <br /> in part). <br /> 11.3.2.3 In the event K-C successfully asserts a claim against any Construction <br /> Contractor or its surety, any amount recovered, net of attorney fees and <br /> reasonable litigation and collection costs and expenses, shall be applied <br /> to reduce the total of the Joint Use Facilities Cost. <br /> 11.3.2.4 The PRT shall be consulted and may provide policy oversight with <br /> respect to the prosecution of any claims by the Participants against any <br /> third parties, such as engineering firms, designers, suppliers, <br /> Construction Contractors, etc., including, but not limited to, <br /> architectural or engineering malpractice, defects or failure of material or <br /> equipment, defective workmanship, nonconformity with plans and <br /> specifications or untimely completion by a Construction Contractor. <br /> 12. OPERATION AND MAINTENANCE <br /> 12.1 Operation and Maintenance Expenses <br /> 12.1.1 Each year K-C shall propose an Annual O&M Budget to the PRT. The <br /> Annual O&M Budget shall be on a calendar year basis, and shall be <br /> approved and established by the Participants (acting through the PRT) not <br /> later than December 1 preceding the year of the proposed budget. If an <br /> Annual O&M Budget is not approved by that time, the amounts of previous <br /> year's Annual O&M Budget shall be deemed to be the amounts of the next <br /> 23 of 46 <br />