AND
(II) THE GENERAL CONTRACTOR'S AND ALL SUBCONTRACTORS' COMPLIANCE WITH THE FINAL
DEVELOPMENT BUDGET, AS WELL AS ANY CHANGED CONDITIONS REGARDING COST.
ANY
MATERIAL CHANGES FROM THE PLAN AND BUDGET SHALL BE REPORTED TO OWNER AS SOON AS
POSSIBLE FOR APPROVAL BY THE BOARD.
IN THIS REGARD, OWNER AND DEVELOPER AGREE
THAT (I) DEVELOPER SHALL CAUSE CONSTRUCTION OF THE PROJECT TO COMMENCE NO LATER
THAN MARCH 2008.
THE PROJECT SCHEDULE AND GENERAL CONTRACT (DEFINED BELOW)
SHALL STATE THE NUMBER OF DELAY DAYS THAT ARE BUILT INTO THE PROJECT SCHEDULE
BASED ON FACTUAL WEATHER DATA FOR THE HOUSTON, TEXAS AREA AS PROVIDED BY THE
U.S. WEATHER BUREAU.
Section 2.6
Commencement of Construction.
(A)
THE BOARD, AFTER CONSULTATION WITH DEVELOPER, HAS APPROVED THE
GENERAL CONTRACTOR ("GENERAL CONTRACTOR") FOR THE PROJECT. DEVELOPER SHALL
NEGOTIATE THE WRITTEN AGREEMENT WITH THE GENERAL CONTRACTOR FOR THE PROJECT
WITHIN THE PLAN AND BUDGET AND IT SHALL BE ENTERED INTO BY THE OWNER (THE
"GENERAL CONTRACT"). THE DEVELOPER MAY, IF IT DEEMS APPROPRIATE, REQUIRE THE
GENERAL CONTRACTOR AND ITS MAJOR SUBCONTRACTORS TO PROVIDE PERFORMANCE AND
PAYMENT BONDS IN A FORM SATISFACTORY TO DEVELOPER AS SECURITY FOR THEIR
RESPECTIVE OBLIGATIONS NAMING OWNER AND DEVELOPER AS CO-OBLIGEES THEREON.
DEVELOPER SHALL NOT AMEND OR ALTER THE TERMS OF THE GENERAL CONTRACT OR ISSUE OR
AUTHORIZE CHANGE
3
ORDERS IN CONNECTION THEREWITH THAT IS MATERIALLY ADVERSE TO THE OWNER WITHOUT
THE PRIOR WRITTEN APPROVAL OF OWNER.
(B)
DEVELOPER SHALL CAUSE THE PROJECT TO BE DEVELOPED AND CONSTRUCTED
IN ACCORDANCE WITH THE FINAL DEVELOPMENT PLAN, FINAL DEVELOPMENT BUDGET AND
PROJECT SCHEDULE.
DEVELOPER SHALL USE COMMERCIALLY REASONABLE EFFORTS TO CAUSE
THE GENERAL CONTRACTOR TO COMPLY WITH THE PLAN AND BUDGET AND THE PROJECT
SCHEDULE.
ANY MATERIAL CHANGE TO THE FINAL DEVELOPMENT PLAN, FINAL DEVELOPMENT
BUDGET AND PROJECT SCHEDULE SHALL BE PRESENTED BY THE DEVELOPER TO THE BOARD AND
SHALL NOT BE EFFECTIVE UNTIL IT APPROVES SUCH CHANGE.
(C)
IF THE DEVELOPMENT AND CONSTRUCTION OF THE PROJECT DOES NOT
PROGRESS IN ACCORDANCE WITH THE DATES REQUIRED BY THE PROJECT SCHEDULE, AT
OWNER'S DIRECTION, DEVELOPER SHALL CAUSE GENERAL CONTRACTOR TO SPEED UP THE WORK
BY ALL AVAILABLE MEANS, INCLUDING UTILIZATION OF OVERTIME, ADDITIONAL WORK CREWS
AND ALTERNATE MATERIAL SUPPLIERS.
(D)
UNLESS OTHERWISE CONSENTED TO BY OWNER, DEVELOPER SHALL INCUR NO
EXPENDITURES NOR AUTHORIZE ANY OTHER PERSON OR ENTITY TO INCUR OR PAY ANY
EXPENDITURES IN CONNECTION WITH THE DEVELOPMENT AND CONSTRUCTION OF THE PROJECT
THAT ARE NOT PROVIDED FOR IN THE FINAL DEVELOPMENT BUDGET, EITHER IN TOTAL OR IN
ANY ONE ACCOUNTING CATEGORY.
ALL EXPENDITURES SHALL BE CHARGED TO THE PROPER
ACCOUNT AS SPECIFIED IN THE FINAL DEVELOPMENT BUDGET AND NO EXPENDITURE MAY BE
CLASSIFIED OR RECLASSIFIED FOR THE PURPOSE OF AVOIDING AN EXCESS OF THE BUDGETED
AMOUNT OF AN ACCOUNTING CATEGORY WITHOUT THE WRITTEN CONSENT OF OWNER (WHICH
CONSENT SHALL NOT BE UNREASONABLY WITHHELD).
Section 2.7
Project Administration.
During construction of the
Project, with due assistance from the Architect and Consultants, Developer shall
exercise general management of the Project team and in connection therewith