Common use of THE PROJECT CONSTRUCTION FUND Clause in Contracts

THE PROJECT CONSTRUCTION FUND. The District shall identify and describe any fund or account, other than the Project Construction Fund (“Fund”) that is related to the Project. The District shall include in the Fund, sufficient funds as required by law, for issuance of any contracts during the duration of the project. The District shall be responsible for distributing moneys from the Fund upon receipt and approval of proper invoices. Transactions involving the Fund shall be restricted to: (1) payments for design and project management services, (2) payments to contractors, (3) purchases related to the project, 4) transactions authorized for establishing and administering the investment accounts and construction administration. No Fund moneys shall be spent for any items inconsistent with the provisions of the Arkansas School Facility Manual and Division policies, unless a variance is approved by the Division. The District shall not transfer moneys from the Fund, investment earnings credited to the Fund, to any other fund or account except as permitted by this Agreement or with the written approval of the Division. The District shall provide a full accounting of the Fund, upon request of the Division. The Division reserves the right to audit the Fund, or any expenditure related to the Fund or the Project. The contingency reserve portion of the construction budget shall be used to pay only costs resulting from unforeseen job conditions, to comply with rulings regarding building and other codes, to pay costs related to design clarifications or corrections to contract documents, and to pay the cost of settlements and judgments related to the Project, unless otherwise approved by the Division. If the Fund, including all investment earnings credited to the Fund, and any interest earned through completion of the Project, becomes depleted by payments of proper Project costs, the District shall complete the Project, by contributing additional funds. The State share is limited to the State financial participation as stated in the Agreement and any amendments. This Agreement is contingent on and subject to the District’s ability to raise appropriate local resources. The Agreement may be declared null and void and the State will have no further obligation to provide State funds to the District for the Project that is the subject of this Agreement if the District fails to raise local resources and apply local resources toward the Project as provided under this Agreement.

THE PROJECT CONSTRUCTION FUND. The District shall identify and describe any fund or account, other than the Project Construction Fund (“Fund”) that is related to the Project. The District shall include in the Fund, sufficient funds as required by law, for issuance of any contracts during the duration of the projectProject. The District shall be responsible for distributing moneys monies from the Fund upon receipt and approval of proper invoices. Transactions involving the Fund shall be restricted to: (1) payments for design and project Project management services, (2) payments to contractors, (3) purchases related to the projectProject, 4) transactions authorized for establishing and administering the investment accounts and construction administration. No Fund moneys monies shall be spent for any items inconsistent with the provisions of the Arkansas School Facility Manual and Division policies, unless a variance is approved by the Division. The District shall not transfer moneys monies from the Fund, investment earnings credited to the Fund, to any other fund or account except as permitted by this Agreement or with the written approval of the Division. The District shall provide a full accounting of the Fund, upon request of the Division. The Division reserves the right to audit the Fund, or any expenditure related to the Fund or the Project. The contingency reserve portion of the construction budget shall be used to pay only costs resulting from unforeseen job conditions, to comply with rulings regarding building and other codes, to pay costs related to design clarifications or corrections to contract documents, and to pay the cost of settlements and judgments related to the Project, unless otherwise approved by the Division. If the Fund, including all investment earnings credited to the Fund, and any interest earned through completion of the Project, becomes depleted by payments of proper Project costs, the District shall complete the Project, by contributing additional funds. The State share is limited to the State financial participation Financial Participation as stated in the Agreement and any amendmentsAmendments. This Agreement is contingent on and subject to the District’s ability to raise appropriate local resources. The Agreement may be declared null and void and the State will have no further obligation to provide State funds to the District for the Project that is the subject of this Agreement if the District fails to raise local resources and apply local resources toward the Project as provided under this Agreement. LOCALLY FUNDED INITIATIVES Locally Funded Initiatives (LFI) are defined as portions of a Project not subject to this Agreement. The LFI may include construction which is determined to exceed the standards in the Arkansas Facility Manual; maintenance, repair or renovation. The District agrees to assume all financial responsibility for the LFI and establish a method to account for all the local resources supporting LFI separate from the Project funds. The Division and the District will agree as noted herein to the cost associated with the LFI to include, but not limited to, pro-rated: design fees, construction and/or construction management fees, reimbursable expenses and operational cost. , The District agrees to locally fund the following scope and budget associated with the LFI. (The District should include a description of the Locally Funded Initiative.) Statement of District LFI amount: Click here to enter District LFI, Statement of District’s scope and budget associated with the LFI, description of the LFI .