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• • <br />(iii) Houston may award additional construction contracts as <br /> necessary to complete the Project, subject to the <br /> approval of the Authority Director. The Authority shall <br /> have the right to review and approve construction <br /> contracts, and estimates of the Actual Construction Cost <br /> of such additional construction contracts subsequent to <br /> the effective date of this agreement. <br />(iv) Houston may enter into appropriate agreements with the <br /> Coastal Water Authority to provide capital financing or <br /> construction for the surface water transmission <br /> facilities and for the continued operations and <br /> maintenance of the raw surface water transmission <br /> facilities portion of the Project. The CWA contract for <br /> the construction of Line B as depicted on Exhibit "C" <br /> awarded in June 1987, is a public record of CWA and <br />has <br /> _ <br />been reviewed and approved by the Authority. <br />(v) Houston shall be responsible for obtaining all permits <br />~~ and approvals of local, state or federal authorities .for <br /> construction and operation of the Project. <br />• (vi) Houston warrants that it has good and marketable title <br /> to the real property constituting the premises aa~zarhich <br /> the Project will be constructed and that same is free <br /> and clear of any liens, encumbrances, taxes or other <br /> obligations or amounts due. <br />_ ~ 2.03 Review of tfie Construction of the Frojeet and Facilities <br /> by the Authority. <br />(i) During all working hours of the construction period, the <br /> Authority Director and anyone authorized by him shall <br /> have access to the Project premises and mag inspect or <br />•~- <br />~ : <br />review the Project and all engineering s~ecificz~.iana <br />. _ <br />and dacuments related to-the Project. <br />(ii) Any changes in the design or specifications of the <br /> Project amounting to an increase or decrease of either <br /> .Actual Pumping Construction Cost or Actual Produet:ion <br /> Construction Cost amounting to Five Hundred Thousand and <br /> No/100 ($500,000.00) Dollars shall require the approval <br /> of the Authority Director. In no event shall additional <br /> cost be passed on to the Authority, unless related to <br /> water service to the Authority, and all changes <br /> regardless of size or amount will be submitted to the <br /> Authority Director for review. <br />8 <br />