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De artment. Costs of construction performed by employees <br /> P <br /> of the Grantee will be disallowed as eligible Pro�ect costs <br /> unless the use of such employees is specifically approved <br /> in advance by the Department. � . <br /> TTF.M 13 - RIGHT OF DEPARTMENT TO TERMINATE <br /> Upon written notice to the Grantee, the Department reserves the <br /> right to suspend or terminate all or part of the financial <br /> assistance herein provided for when the Grantee is, or has been <br /> in violation of the terms of this contract or when the <br /> Department determines that the purpose of the Acts would not be <br /> adequately served by continuation of State financial assistance <br /> to the Project. Any failure to make progress which <br /> significantly endangers substantial performance of the Project <br /> within a reasonable time shall be deemed to be a violation of <br /> the terms of this contract. Termination of any part of the <br /> grant will not invalidate obligations properly incurred by the <br /> Grantee and concurred in by the Department prior to the date of <br /> termination, to the extent they are noncancellable. The <br /> acceptance of a remittance by the State of any or all Project <br /> Funds previously received by the Grantee or the closing out of <br /> State financial participation in the Project shall not <br /> constitute a waiver of any claim which the State may otherwise <br /> have arising out of this Contract. <br /> TT M 14 PROJECT SETTLEMENT AND CIASE-OUT <br /> Upon receipt of notice of successful completion of the project <br /> or upon termination by the Department, the Department shall <br /> perform a final sudit of the Project to determine the <br /> allowability of costs incurred� and shall make settlement of <br /> the State grant described in this Contract. If the Department <br /> has made payment to the Grantee in excess of the total amount <br /> of such State grant� the Grantee shall promptly remit such <br /> excess to the State. The Pro�ect close-out occurs when the <br /> Department notifies the Grantee and forwards the final grant <br /> payment or when an appropriate refund of State grant funds has <br /> been received from the Grantee and acknowledged by the <br /> Department. Close-out shall be sub�ect to any continuing <br /> obligations imposed on the Grantee by this contract or <br /> contained in the final notification or acknowledgment from the <br /> Department. <br /> ITEM 15 - GRANTEE'S WARRANTIES <br /> Grantee agrees to initiate and consummate all actions necessary <br /> to enable it to enter into this Agreement. Grantee warrants <br /> that there is no provision of its cttarte�� by-laws or any <br /> � rules� regulations� or legislation which prohibits, voids� or <br /> 10 <br />