Common use of Access to and Audit of Books and Records Clause in Contracts

Access to and Audit of Books and Records. 12.5.1 Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management, using accounting and control systems in accordance with generally accepted accounting principles and as may be provided in the Contract Documents. Contractor shall maintain a complete set of all accounts, books, records, documents, and other information and items (“Books and Records”) prepared or employed by Contractor in its management, scheduling, cost accounting and otherwise with respect to the Project. Contractor shall grant to Owner and any Governmental Person having jurisdiction over the Project such audit rights and allow Owner and such Governmental Person such access to and the right to copy such Books and Records at such times as Owner may request, but only as necessary and appropriate in connection with Work to be performed on a time and material cost basis (including but not limited to the costs identified under Sections 19.3.3 and 19.3.4), issuance of Change Orders (other than all or a portion of Change Orders issued on a lump-sum basis), and the resolution of Claims. 12.5.2 Where the payment method for any Work is on a unit-priced basis, such examination and audit rights shall include all Books and Records of Contractor for the purpose of evaluating the accuracy of Contractor’s designations of quantities. 12.5.3 Where the payment method for any Work is on a time and materials basis, such examination and audit rights shall include all Books and Records that evidence all direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred for the performance of such Work. If audit indicates Contractor has been over-credited under a previous progress report or progress payment, that over-credit will be credited against current progress reports or payments. 12.5.4 For documentary information submitted in connection with pricing Change Orders, unless such pricing is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the public, or prices set by law or regulation, Owner and its representatives have the right to examine all Books and Records related to the negotiation of or performance of Work under such Change Orders for the purpose of evaluating the currency, accuracy, and completeness of the information Contractor submitted in connection with any Change Order. The right of examination shall extend to all documents deemed necessary by such Person and/or Entity to permit adequate evaluation of the information Contractor submitted with any Change Order, along with the computations and projections used therein. 12.5.5 No audit rights shall extend to any lump-sum amount or unit price once the parties have agreed upon such amount or price, except to the extent such audit rights are allowed under Laws, Regulations and Ordinances. 12.5.6 Contractor shall require each Subcontractor to comply with the requirements applicable to Contractor set forth in this Section 12.5.