Common use of Construction Process Clause in Contracts

Construction Process. Subject to the Operator’s duties and responsibilities provided for herein, the Operator has the exclusive right to construct, expand or extend the approved Projects in the AMI. When commercially reasonable under the circumstances, the Operator will seek multiple bids for construction and other work or services related to construction processes, and the Operator will not charge more than the Operator’s actual costs incurred plus chargeable items as set out in the Accounting Procedure. Other than as provided for in the Accounting Procedure, the Operator shall not contract with Affiliates for construction work or other work or services related to construction process without either: (a) Operator or its Affiliates having obtained multiple bids from third-party providers and Operator charging no more than ninety-five percent (95%) of the lowest bid; or (b) obtaining unanimous approval of the System Owners. As needed, the System Owners may, from time to time, consult with the Operator on the bidding process and selection of vendors. Each Project will be constructed hereunder in accordance with prudent operating practices, design codes and industry specifications. The Operator will have direct responsibility and supervision of all matters arising under any applicable construction contract and all matters arising during the actual construction work, and will proceed with such matters in accordance with this Agreement and what a prudent operator would do under the same or similar circumstances. Any System Owner, at its sole risk, cost and expense, has the right to inspect and observe the construction work at all reasonable times, as long as such actions do not interfere with the construction of the Project or the operations of the AMI Midstream Assets.