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Section 4: Limitation'of Expenditures. Expendi!ures for completion of the <br />Weatherization Program shall not exceed 9% for administrative costs, nor shall materials <br />cost be less than 40% of total expenditures minus administration and liability <br />insurance, under Part I, section 4A of this contract. Expenditures exceeding the <br />limitations as defined above shall be considered unallowable costs and shall not be <br />reimbursed to the contractor. <br /> <br /> The Contractor shall not exceed an averaqe, cost of $1700 per dwelling unit <br />completed (not including administrative costs) nor shall it exceed $1250 materials cost on <br />any individual unit completed. Where it is determined that the average unit cost or the <br />individual unit materials cost is insufficient to meet client needs, the Contractor shall <br />submit a written request for a Materials Cost Waiver to the Grantee for approval. <br /> <br /> Section 5: Schedule of Implementation. Tt~e Contractor agrees that a minimum of <br />· 46.dwelling units are to be weatherized during the grant period defined in Part I, Section <br />3. In addition, the Contractor agrees that if the rate of completion of weatherized units <br />fails to a level that will prevent the Contractor from utilizing the full amount of funds <br />provided under this contract, then the Contractor will notify the Grantee of such a situation <br />and allow the renegotiation, of the contract to a funding level consistent with the <br />Contractor's current rate of production. In the event that the Contractor receives an <br />approved Average Cost Waiver from the Grantee, the minimum unit requirement shall be <br />adjusted accordingly. <br /> <br /> Section 6: Tentative .Allocations. All weatherization grant funds allocated within the <br />State of North Carolina are tentative and are based on the Contractor's ability to <br />implement the Weatherization Program in accordance with prescribed guidelines as set <br />forth by the Grantee. This shall include: (1) the execution of weatherization activities in <br />a sound, economical, and efficient manner to the satisfaction of the Grantee as <br />determined by monitoring and evaluation visits by the Grantee, or its representatives; '(2) <br />the operator's ability to secure and maintain adequate labor support to carry out <br />weatherization activities; and (3) the submission of required financial and program reports <br />when due. No Contractor shall be funded until (!) it has proper administrative and <br />suppor[ mechanisms to effectively implement the weatherization program; this shall <br />include, but not be limited to supervisory personnel, adequate storage facilities, labor; (2) <br />it has expended its current allocation, or has insufficient funds to continue Program <br />activities; and (3) all required repods have been submitted to the Grantee. The <br />Contractor agrees that performance based on the above conditions is of the utmost <br />impodance and further that failure to meet the conditions of Part III, Sections 5 and 6, as <br />determined by the Grantee, shall be considered a breach of this agreement and..shall <br />result in contract termination. Any unexpended funds shall be withdrawn from the ~'. <br />Contractor and redistributed to other program Contractors. <br /> <br /> <br />