Payment for Costs of Preliminary Work Clause Samples

Payment for Costs of Preliminary Work. The Agency and Lake Zurich agree that in the performance of the Preliminary Work, the Agency will incur various out-of-pocket costs where it is the contracting party, and that Lake Zurich will provide the Agency with funds to be held in escrow by the Agency to pay those costs in the manner set forth in Section 4.4 of this Admissions Agreement. The Agency shall not be obligated to commit itself to any costs for Preliminary Work without being satisfied that the payment of those costs will be covered by Lake Zurich through funds placed in escrow. Any funds deposited by Lake Zurich as required by this Section will only be utilized for out-of-pocket costs of Preliminary Work that have been authorized by Lake Zurich. In the event that surplus funds have been contributed by Lake Zurich when all out-of-pocket costs of the Preliminary Work have been paid, the Agency shall return those portions of the surplus that were not paid or reimbursed from bond proceeds to Lake Zurich.