Common use of Contracts and Supplies Clause in Contracts

Contracts and Supplies. Manager shall, except as provided in this Agreement, in the name of and on behalf of Owner and at Owner's expense, (a) negotiate and enter into service contracts for the furnishing to the Project of electricity, gas, water, steam, telephone, trash removal, cleaning, vermin extermination, furnace and air conditioning maintenance, security services, pest control, landscaping, and any other utilities, services and concessions which are reasonably required in the course of business for the operation, repair and maintenance of the Project, and (b) place purchase orders for such equipment, tools, appliances, materials and supplies as are necessary to properly maintain the Project. Except for service contracts for public utilities such as water, electricity and gas, each such service contract shall: (i) include a provision for cancellation thereof by Owner or Manager upon no more than 30 days' written notice without the imposition of any penalty or fee, and (ii) require that all contractors provide evidence of sufficient insurance. All service contracts and purchase orders shall be paid by Manager, on behalf of Owner, from the Operating Account, in accordance with the Budget. Manager shall obtain Owner's consent, which consent shall not be unreasonably withheld or delayed, to terminate any existing contracts for services or supplies. Nothing in this section shall be construed as requiring Manager to enter into any contracts, agreements or purchase orders with respect to any construction activities at the Project.