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~ ~ SECTION 7- CONSTRUCTION FUND PROGRAM PROCEDURES To the extent that the BoRROwER and its staff engages in any planning, design or construction work, or bids out any portion of the PRO~ECT, beyond that which the CWCB has already reviewed in accordance with Loan Contract No. 150058A, the BoRROwER shall comply with the following procedures: A. The BoRROwER shall employ an engineer, registered in the state of Colorado to prepare plans and specifications for the PRO~ECT. B. Th@ BORROWER's and the Engineering Consultant's ptans and specifications for the PRO~ECT must be submitted to the CWCB staff for verification of compliance with the terms of this Contract when available prior to bidding. Any modifications to the plans and specifications must be approved in writing WCB staff. C. For plans and specifications for all jurisdictional ms and serv irs, as defined by § 37-87-105 C.R.S., the BoRR haN prov e a letter roval from the State Engineer's O ice ior to c structi n. D. CWCB staff must b sent at b ning and must approve the award of the construction contract. E. The BoRROw~R shall contract for the construction of the work with responsible and capable Construction Firms, which said Construction Firms shall be selected by the BoRROwER and found acceptable by the CWCB staff. F. The BORROWER may utilize its own staff for construction of a portion of the PROJECT, or the entire PROJECT, only if the CWCB accredits the BoRROwER's staff as the equivalent of a responsible and capable Construction Firm. In the event the BORROWER UtIIIZeS its own accredited staff for construction of a portion of the PROJECT, O~ th@ etltl~e PROJECT, paragraphs 7(D) and 7(G) shall not apply, and paragraph 7(B) is modified such that in the absence of a bid and a third-party contractor, the PROJECT`s plans and specifications developed by the BoRROwER's staff must be submitted to the CWCB for verification of compliance with the terms of this Contract. Any modifications to the plans and specifications must be approved in writing by the CWCB staff. G. The BORROWER must provide a copy of the executed construction contract documents consisting of the contractor's proposal, construction contract, performance bond, payment bond, notice of award, notice to proceed, sample change order, and sample field order, as well as the advertisement for bid and bid bond at bidding. After the CWCB staff verifies that these documents comply with the terms of this contract, the BoRROwER may issue the notice to proceed to the Construction Firms. H. The BORROWER ShBil conduct a pre-construction conference at which time the CWCB staff shall have the opportunity to review and approve the construction Appendix 1 to Loan Contract C150193 Page 3 of 5