Requirements Applicable to Design and Construction Work. 3.4.1 To the extent that Maintenance Contractor performs any design or construction work for Capital Asset Replacement Work, Unplanned Capital Maintenance, or Change Orders, Maintenance Contractor shall comply with the requirements and specifications for design and construction set forth in the Technical Provisions and in the applicable sections of the Development Agreement, except as otherwise approved in advance in writing by TxDOT. 3.4.2 In connection with the performance by Maintenance Contractor of any Unplanned Capital Maintenance or Change Orders, Maintenance Contractor shall procure and maintain (a) the insurance deemed appropriate by TxDOT in its sole discretion and (b) payment and performance bonds each in the full amount of the Unplanned Capital Maintenance or Change Order as determined by TxDOT in its sole discretion; provided, however, that subject to applicable Law, TxDOT may, in its sole discretion, lower the level of bonding required. In the event the insurance and payment and performance bonds are procured for such design and construction work, Maintenance Contractor shall be entitled to reimbursement (without profit or mark-up) in accordance with Section 7.8 for any actual payments made by Maintenance Contractor for the premiums, except to the extent that: (a) the design and construction work arises from the acts, omissions, negligence, intentional misconduct, or breach of applicable Law, contract, or Governmental Approval by any Maintenance Contactor-Related Entity; or
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Sources: Capital Maintenance Agreement, Capital Maintenance Agreement