Right to Retain the Construction Inspector Clause Samples

Right to Retain the Construction Inspector. The Banks acting through the Agent shall have the right to retain, at the Borrower's cost and expense, the Construction Inspector to perform the following services on behalf of the Banks: (a) to review and advise the Agent and the Banks as to the current status of the Project and the Project Budget; (b) to review and advise the Agent and the Banks whether in the opinion of the Construction Inspector, the Project Budget accurately reflects all Project Costs; (c) to review and advise the Agent and the Banks whether, in the opinion of the Construction Inspector, the Plans and Specifications are satisfactory for the intended purposes thereof; (d) to make periodic inspections (approximately at the date of each Draw Request) for the purpose of assuring that construction of the Improvements to date is in accordance with the Plans and Specifications and to approve the Borrower's then current Draw Request as being consistent with the Project Budget and the Borrower's obligations under this Agreement, and to advise the Agent and the Banks of the anticipated cost of and time for completion of construction of the Improvements and the adequacy of any Contingency Reserve; (e) to review and advise the Agent and the Banks on any proposed change orders or construction change directives; and (f) to review the Construction Contract and subcontracts, for the purpose of providing the Agent and the Banks with an opinion as to the cost of construction to be incurred to complete the Project, and also for the purpose of assuring that all such subcontracts are for work required by the Plans and Specifications to be performed. The fees of the Construction Inspector shall be paid by the Borrower forthwith upon billing therefor and expenses incurred by the Banks or the Agent on account thereof shall be reimbursed to the Banks or the Agent as the case may be forthwith upon request therefor, but neither the Banks, the Agent nor the Construction Inspector shall have any liability to the Borrower on account of (i) the services performed by the Construction Inspector, (ii) any neglect or failure on the part of the Construction Inspector to properly perform its services, or (iii) any approval by the Construction Inspector of construction of the Improvements. Neither the Banks, the Agent nor the Construction Inspector assumes any obligation to the Borrower or any other Person concerning the quality of construction of the Improvements or the absence therefrom of defects.