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Construction Phase: <br />i. authorize the advertisement, receipt and opening of bids for construction of the <br />above project; and award contracts for construction of the above project and <br />acquisition of materials related to it; and execute, on behalf of the Sponsor, <br />construction contracts as related to this project; <br />j. participate in pre-bid and pre-construction conferences; and issue orders as it <br />deems appropriate regarding construction progress, including but not limited to <br />Notices to Proceed, Stop Work Orders, and Change Orders; <br />k. review, approve and maintain record drawings. <br />PART V - Recitals <br />The State and the Sponsor shall obtain an audit as required by federal or state regulations. <br />2. The Sponsor, and not the State, shall be the contractual party to all construction and <br />professional service contracts entered into for the accomplishment of this project. The <br />power of attorney, as granted by the Sponsor to the State in Part IV - Nomination of <br />Agent, is a limited power to perform acts in connection with airport improvements as <br />specified in or necessitated by this Agreement. <br />3. The Sponsor agrees to pursue and enforce contract items, which are required by federal <br />and/or state regulations, laws and orders to insure satisfactory performance of contract <br />vendors. Such items include, but are not limited to, bid bonds, payment bonds, and <br />performance bonds. Pursuit and enforcement of contract items may require litigation and <br />other remedies of law. <br />4. The United States and the State of Texas shall not be responsible or liable for damage to <br />property or injury to persons which may arise from, or be incidental to, compliance with <br />this grant agreement. <br />5. This Agreement is executed for the sole benefit of the contracting parties and is not <br />intended or executed for the direct or incidental benefit of any third party. Furthermore, <br />the State shall not be a party to any other contract or commitment, which the Sponsor <br />may enter into or assume, or have entered into or have assumed, in regard to the above <br />proj ect. <br />6. If the Sponsor fails to comply with the conditions of the grant, the State may, by written <br />notice to the Sponsor, suspend the grant in whole or in part. The notice of suspension <br />shall contain the following: <br />a. The reasons for the suspension and the corrective action necessary to lift the <br />suspension; <br />Page 10 of 35 <br />159 <br />