Common use of Department Access and Inspection Clause in Contracts

Department Access and Inspection. The Operating Company acknowledges and agrees that the Department, the FHWA and their respective authorized agents and the Independent Engineer shall have unrestricted access at all times to enter upon, inspect, sample, measure and physically test any part of the Project and the Project Right of Way, as well as any materials, supplies, machinery and equipment to be incorporated into or used in construction, operation or maintenance of the Project. The Operating Company further acknowledges and agrees that the Department shall also have the right, upon reasonable advance written notice to the Operating Company (except as provided in Section 18.07(a) of the CA), to inspect financial or other records relating to the Project. If at any time the Operating Company has failed to perform any of its operating or maintenance obligations in any material respect then, in addition to other remedies available under this Agreement and the other Project Agreements, the Operating Company acknowledges and agrees that the Department is entitled to increase the level of its monitoring during the Operating Period, of the Project, and the Operating Company’s compliance with its operation and maintenance obligations under this Agreement until such time as the Operating Company has demonstrated to the Department’s reasonable satisfaction that it will perform and is capable of performing its operation and maintenance obligations under this Agreement.

Appears in 2 contracts

Sources: Operating and Support Services Agreement, Operating and Support Services Agreement