2001-102-RES ACCEPTING HOUSING REHABILITATION FUND PROGRAM GRANT FROM TX DEPT OF HOUSING & COMM AFFAIRS

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action of every kind and character which may be asserted by any third party occurring or in any way incident to, arising out of, or in connection with the services to be performed by Contractor under this contract. SECTION 11. SUBCONTRACTS A. Except for subcontracts to which the federal labor standards requirements apply, Contractor may subcontract for performances described in this contract without obtaining Department's prior written approval. Contractor shall only subcontract for performances described in this contract to which the federal labor standards requirements apply after Contractor has submitted a Subcontractor Eligibility form, as specified by Department, for each such proposed subcontract, and Contractor has obtained Department's prior written approval, based on the information submitted, of Contractor's intent to enter into such proposed subcontract. Contractor, in subcontracting for any performances described in this contract, expressly understands that in entering into such subcontracts, Department is in no way liable to Contractor's subcontractor(s). B. In no event shall any provision of this Section 11, specifically the requirement that Contractor obtain Department's prior written approval of a subcontractor's eligibility, be construed as relieving Contractor of the responsibility for ensuring that the performances rendered under all subcontracts are rendered so as to comply with all of the terms of this contract, as if such performances rendered were rendered by Contractor. Department's approval under Section 11 does not constitute adoption, ratification, or acceptance of Contractor's or subcontractor's performance hereunder. Department maintains the right to insist upon Contractor's full compliance with the terms of this contract, and by the act of approval under Section 11, Department does not waive any right of action which may exist or which may subsequently accrue to Department under this contract. C. Contractor shall comply with Section 85.36 of the Common Rule, this contract and all applicable federal, state and local laws, regulations, and ordinances for making procurements under this contract. D. Department shall maintain an escrow retainage in the amount of five percent (5%) of each construction or rehabilitation subcontract entered into by Contractor until Department determines that the Federal labor standards requirements applicable to each such subcontract have been satisfied. SECTION 12. CONFLICT OF INTEREST A. Contractor shall ensure that no employee, officer, or agent of Contractor shall participate in the selection, or in the award or administration of a subcontract supported by funds provided hereunder if a conflict of interest, real or apparent, would be involved. Such conflict of interest would arise when: 1) The employee, officer, or agent; 2) any member of his or her immediate family; 3) his or her partner; or, 4) any organization which employs, or is about to employ any of the above, has a financial or other interest in the firm or person selected to perform the subcontract. Contractor shall comply with Chapter 171, Local Government Code. B. In all cases not governed by Subsection (A) of this Section, no persons specified in subsection (C) of this Section who exercise or have exercised any functions or responsibilities with respect to the activities assisted under this contract or any other CDBG contract or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from the activity, or have an interest or benefit from the activity, or have any interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties during their tenure or for one year thereafter. Page 5 of 12