DUE THE GENERAL CONTRACTOR AND
CONSULTANTS IN A MONTHLY DRAW REQUEST SUBMITTED TO THE ADVISOR NO LATER THAN THE
FIFTH (5TH) DAY OF EACH CALENDAR MONTH AFTER WHICH THE DRAW REQUEST APPLIES,
SUBJECT TO CHANGE BY THE PROJECT LENDER (AS DEFINED HEREIN). DEVELOPER MAY
CERTIFY, MODIFY OR WITHHOLD CERTIFICATION FOR PAYMENT, AND SHALL REQUIRE
NECESSARY REVISIONS TO SUCH INVOICES.
DEVELOPER WILL SUBMIT CERTIFIED PROJECT
INVOICES TO THE ADVISOR FOR REVIEW AND APPROVAL ALONG WITH A REPORT SUMMARIZING
THE STATUS OF PAYMENTS TO THE GENERAL CONTRACTOR AND THE CONSTRUCTION COSTS OF
THE PROJECT.
THE DEVELOPER'S CERTIFICATION FOR PAYMENT SHALL CONSTITUTE A
REPRESENTATION TO OWNER AND THE ADVISOR, BASED ON THE DEVELOPER'S DETERMINATIONS
AT THE SITE AND ON THE DATA COMPRISING THE GENERAL CONTRACTOR'S INVOICES, THAT,
TO THE BEST OF THE DEVELOPER'S KNOWLEDGE, INFORMATION AND BELIEF, THE WORK HAS
PROGRESSED TO THE POINT INDICATED AND, EXCEPT AS STATED IN THE CERTIFICATION FOR
PAYMENT, THE QUALITY OF THE WORK IS IN ACCORDANCE WITH THE CONSTRUCTION
DOCUMENTS.
(E)
OBTAIN FROM THE GENERAL CONTRACTOR ALL REQUIRED LIEN WAIVERS AND
ALL OTHER DOCUMENTATION AS PROVIDED FOR HEREIN OR IN THE GENERAL CONTRACT, AND
OBTAIN PAYMENT AND PERFORMANCE BONDS FROM THE GENERAL CONTRACTOR COVERING THE
PERFORMANCE OF ALL THE WORK DESCRIBED IN THIS AGREEMENT.
(F)
MAINTAIN CONSTRUCTION COST REPORTING FOR THE PROJECT, USING
OWNER'S STANDARD CHART OF ACCOUNTS AND REPORT FORMAT.
(G)
ON APPLICATION FOR FINAL PAYMENT BY THE GENERAL CONTRACTOR, CAUSE
A FINAL INSPECTION OF THE WORK BY THE ARCHITECT TO BE PERFORMED, ASSEMBLE AND
DELIVER TO OWNER ANY WRITTEN GUARANTIES, RELEASES, BONDS AND WAIVERS,
INSTRUCTION BOOKS, DIAGRAMS AND
5
CHARTS REQUIRED BY THE APPROPRIATE CONTRACT DOCUMENTS, AND ISSUE AN APPROVAL FOR
FINAL PAYMENT.
(H)
ESTABLISH A MONTHLY REPORTING SYSTEM THAT INCLUDES:
(I)
COST STATUS - A MONTHLY COST STATUS REPORT FOR EACH MAJOR COST
ITEM IN THE PROJECT, EMPLOYING A FORMAT ACCEPTABLE TO THE ADVISOR AND TRACKING
BUDGET, ESTIMATE, AMOUNT CONTRACTED, CHANGE ORDERS AND ESTIMATED COST TO
COMPLETE.
(II)
PAYMENTS STATUS - A MONTHLY PAYMENTS STATUS REPORT FOR EACH MAJOR
COST ITEM IN THE PROJECT EMPLOYING A FORMAT ACCEPTABLE TO THE ADVISOR AND TRACK
PAYMENTS MADE AND AMOUNTS YET TO BE PAID AND PROJECT MONTHLY CASH REQUIREMENTS
AND UPDATE PROJECTIONS PERIODICALLY.
(III)
PROJECT STATUS - A MONTHLY NARRATIVE WITH EXECUTIVE SUMMARY THAT
OUTLINES PROJECT PROGRESS DURING REPORTING PERIODS, AND PROJECTION FOR WORK TO
BE COMMENCED IN THE NEXT PERIOD.
(I)
REVIEW (AND CAUSE THE APPROPRIATE CONSULTANTS TO REVIEW) ALL
APPLICABLE BUILDING CODES, ENVIRONMENTAL, ZONING AND LAND USE LAWS AND OTHER
APPLICABLE LOCAL, STATE AND FEDERAL LAWS, REGULATIONS AND ORDINANCES CONCERNING
THE DEVELOPMENT, USE AND OPERATION OF THE PROJECT OR ANY PORTION THEREOF.
DEVELOPER SHALL MAKE APPLICATION FOR AND SEEK TO OBTAIN AND KEEP IN FULL FORCE
AND EFFECT ALL NECESSARY GOVERNMENTAL APPROVALS AND PERMITS, AND SHALL ENDEAVOR
TO PERFORM SUCH ACTS AS SHALL BE REASONABLY NECESSARY TO EFFECT COMPLIANCE BY
THE OWNER WITH ALL LAWS, RULES, ORDINANCES, STATUTES, AND REGULATIONS OF ANY
GOVERNMENTAL AUTHORITY APPLICABLE TO THE PROJECT. DEVELOPER SHALL SEEK TO OBTAIN
ANY