IACCM CONTRACTING PRINCIPLES
The following definitions apply to these IACCM Contracting Principles:
II. General Concepts
The following concepts form the basis for the more detailed IACCM Contracting Principles that follow:
IV. IACCM Contracting Principles
A. General Audit Principles
B. Financial Audits
C. Operational Audits
1.1. Company's Right To Audit
(a) Right to Audit. The Company may audit the accounts and books of the Contractor which reasonably relate directly to the performance of obligations or work contemplated by this agreement and compliance with Laws at reasonable times and from time to time, not only during the continuance of this agreement, but for  years after the date of its termination, or final payment, whichever occurs last.
(b) Payment Errors. If such audit or audits reveal any error or discrepancy of any nature whatever, such error or discrepancy will be promptly corrected and any amount owing or due to either the Company or the Contractor, will be promptly paid by the other party.
(c) Improper Payments. If such audit or audits reveal any improper or illegal payment of any nature whatever, the Company may terminate this agreement immediately and to enforce any remedies available to the Company under this agreement or applicable law.
(d) Notice. The Company shall have this right to audit the Contractor's accounts and records only after delivery of written notice to the person whose accounts and records are to be audited in accordance with the provisions for notices set forth in this agreement.
1.2. Company's Right To Retain Records. The Company has the right to make copies of documents audited and such copies are the property of the Company. All audit rights of the Company described herein are in addition to, and are not in any way in lieu of, all other rights of the Company in law or in equity.
The contracting principles in this document have been developed with and are endorsed by the International Association of Contract and Commercial Management (IACCM) and are referred to as the "IACCM Contracting Principles." They are intended to serve as an industry-adopted set of guidelines to support either the drafting of applicable contract clauses or the negotiation of applicable terms and conditions between a supplier and a customer. These principles are intended to reduce or eliminate the need for negotiation on these issues and shorten cycle time to signature. Participants who accept these IACCM Contracting Principles are free to use them on a case by case basis and as they deem appropriate; however, it is expected that the benefits of their use will be maximized when both parties to a transaction agree to rely on them and draft the relevant clauses accordingly. In addition, these principles are not intended to constitute formal legal advice.