Common use of Construction of Extended Facilities Clause in Contracts

Construction of Extended Facilities. All Extended Facilities shall be constructed in strict conformance with the Plans (as defined in Exhibit “A” hereto) and schedule approved by the Authority and all federal, state and local laws, regulations and ordinances and shall meet or exceed the Authority’s minimum standards. Developer shall construct and install the Extended Facilities entirely at its own cost. The Developer will provide, in construction contracts pertaining to the Extended Facilities that (1) The Authority is a third-party beneficiary of such work, that the contractor understands and agrees that it is providing the Authority with the same guarantees it provides to the Developer, and that the Authority shall have the right to enforce the contract(s); and (2) that the construction contract is assigned by the Developer to the Authority effective with the Authority’s termination of this Agreement upon an Event of Default (as defined below) and the Authority’s notice to the contractor of its intent to accept the assignment, such assignment being subject to the rights of the surety or other guarantor of the Developer’s performance.