The Contractor and all Subcontractors shall observe Federal laws, rules, and regulations if the Federal government pays for any portion of the cost of a Project. The Federal requirements of a Federal-aid Project will supersede conflicting provisions of State or local laws, rules, or regulations . The Department will inspect the Work on Projects funded by the Federal government. Inspection by the Department will not make the Federal government a party to the Contract or interfere with the rights of the parties to the Contract.
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