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<br />7. Ar.conntinp'. At all times from the effective date of this Contract until completion of this Project, the Contractor shall maintain
<br />properly segregated books of State funds, matching funds, and other funds associated with this Project. All receipts and expenditures
<br />associated with said Project shall be documented in a detailed and specific manner, and shall accord with the "Budget" set forth in Exhibit
<br />A. Contractor may adjust budgeted expenditure amounts up to ten percent (10%) within said Budget without approval of the State.
<br />Adjustments of budget expenditure amounts in excess often percent (10%) must be authorized by the State in an amendment to this Contract
<br />properly executed and approved pursuant to the State Fiscal Rules. In no event shall the State's total consideration exceed the amount shown
<br />in Paragraph 5 above.
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<br />a. Unless otherwise provided in this Contract, if Exhibit A provides for more than one payment by
<br />the State, the initial payment set forth in the Payment Schedule shall be made as soon as
<br />practicable after proper execution of this Contract. The Contractor shall initiate all subsequent
<br />payment requests by submitting documented proof of proper expenditure of State funds thus far
<br />received. to a contract monitor designated by the State.
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<br />b. The Contractor shall request the final payment, which is the amount withheld by the State until
<br />the Project is accepted for completion, for the Project by submitting to the contract monitor a
<br />detailed costs accounting of all State funds received and expended towards completion of the
<br />Project which shall be included in a final project report. Upon determining to its satisfaction that
<br />all funds received by the Contractor have been properly spent towards the goals of the Project, the
<br />State shall promptly make final payment to the Contractor.
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<br />c. Within ninety (90) days of completion of the Project, the Contractor shall submit to the contract
<br />monitor a detailed. cost accounting of expenditures of the final payment received. from the State
<br />as well as a full and tinal project expenditure report. Any State funds not expended in connection
<br />with the Project shall be remitted to the State at that time.
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<br />8. A.wli1;. The State or its authorized representative shall have the right to inspect, examine, and audit Contractor's records,
<br />books and accounts, including the right to hire an independent Certified. Public Accountant of the State's choosing and at the State's
<br />expense to do so. Such discretionary audit may be called for at any time and for any reason from the effective date of this Contract until
<br />five (5) years after the date final payment for this Project is received by the contractor, provided. that the audit is performed at a time
<br />convenient to the Contractor and during regular business hours. Whether or not the State calls for a discretionary audit as provided for
<br />in this paragraph, if the Project is accomplished within a single fiscal year of the Contract, the Contractor shall, at the conclusion of the
<br />Project, and in addition to any other reports required, submit a report and auditor's statement of the Project account to the Colorado
<br />Water Conservation Board. Such report shall be prepared in col\iunction with Contractor's regular yearly audit, and must be submitted
<br />within six (6) months after the close of the then current Contractor's fiscal year.
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<br />9. lndenendent Contractor.
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<br />a. Contractor is a grantee and shall be an independent contractor and shall have no authorization, express or implied,
<br />to bind the State to any agreements, settlements, liability or understanding except as expressly set forth herein.
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<br />b. The Contractor represents that the Contractor has, or will secure at its own expense all personnel, as employees of
<br />the Contractor, necessary to perform the work and services required to be performed by the Contractor under this
<br />Contract. Such personnel may not be employees of or have any contractual relationship with the State and no such
<br />personnel are eligible for any employee benefits, unemployment compensation or any other benefits accorded to State
<br />employees and Contractor agrees to indemnify the State for any costs for which the State may be found liable in these
<br />regards. Contractor shall pay when due all required employment taxes and income tax. withholding. All of the
<br />services required. hereunder will be performed. by the Contractor or under its supervision, and all personnel engaged
<br />in the work shall be fully qualified and shall be authorized under State and local law to perform such services.
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<br />10. Termination of Contract for Cause. If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner
<br />his obligations under this Contract, or if the Contractor shall violate any of the covenants, agreements, or stipulations of this Contract,
<br />the State shall thereupon have the right to terminate this Contract for cause by giving written notice to the Contractor of such termination
<br />and specifying the ef!ective date thereof, at least five (5) days before the effective date of such termination. In that event, all finished
<br />or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports or other material prepared by the
<br />Contractor under this Contract shall, at the option of the State, become its property, and the Contractor shall be entitled to receive just
<br />and equitable compensation for any satisfactory work completed on such documents and other materials.
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<br />Notwithstanding the above, the Contractor shaH not be relieved ofJiabiJity to the State for any damages sustained by the State
<br />by virtue of any breach of the Contract by the Contractor, and the State may withhold any payments to the Contractor for the purpose
<br />of setoff until such time as the exact amount of damages due the State from the Contractor is determined.
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