a) Prior approval by the Agency, based upon the Agency's professional judgment as defined in Section 661.102(b), is required for project changes which:

1. 1) Increase the amount of State funds needed to complete the project, except that no change will be approved which either exceeds the grant offered or which exceeds the limitation provided for approvable contingencies;
2. 2) Alter the design or scope of the project;
3. 3) Alter the type of treatment to be provided;
4. 4) Extend any contractual or grant completion date for the project; or
5. 5) Substantially alter the location, size, capacity or quality of any major item of equipment.

b) The grantee shall notify the Agency in writing of all proposed project changes. Such notice shall include the change order and supporting documentation. Failure on the part of the grantee to give timely notice of proposed project changes or disapproval of a proposed project change by the Agency shall result in:

1. 1) Disallowance of costs incurred which are attributable to the change; or
2. 2) Termination of the grant.