Common use of Backcharges Clause in Contracts

Backcharges. A. In the event SELLER fails to complete any Work in accordance with the requirements of this Purchase Order, or by its actions indicates inability or unwillingness to complete the Work in accordance with the terms of this Purchase Order, or if the Products or Services are found to be defective as to workmanship or materials or to be in non-conformance with this Purchase Order, or if any rework of the Products is required as a result of a breach of warranty hereunder, SELLER shall promptly correct any such noncompliance when so directed. BUYER will take reasonable measures to discover such noncompliance as quickly as practical; however, failure to do so shall in no way relieve SELLER of its responsibility during the Warranty Period to promptly take such corrective actions as are required. B. If (i) upon being notified by BUYER or Customer of any noncompliance under this Purchase Order, including the discovery of deficient Products or Services, and having been directed to correct noncompliance by a specific date, SELLER states or by its actions indicates its inability or unwillingness to comply or (ii) an emergency situation arises that requires immediate corrective action, then BUYER or Customer may proceed to accomplish the corrective work or remedial action by the most expeditious means available and backcharge SELLER for the cost of the required work. C. All reasonable costs incidental to any corrective work performed by SELLER or remedial action performed by BUYER or Customer shall be borne by SELLER and shall be charged to SELLER as appropriate, including without limitation the engineering, design, repair, replacement, removal, transportation to the Jobsite, customs duties or clearance fees, disassembly (including without limitation disassembly as required to gain access to the defective or nonconforming Product), reinstallation, reconstruction, retesting, and reinspection as may be necessary to correct the defect or nonconformity or to demonstrate that previously defective or nonconforming Work conforms to the requirements of this Purchase Order, and including all labor costs associated therewith. Additionally, SELLER shall be responsible for and reimburse BUYER for BUYER’S and Customer’s other costs associated with the investigation of the defect or non-conformity and the necessary corrective action, including costs of reviewing and inspecting SELLER’S remedial Work and otherwise administering and enforcing the provisions of the General Condition ttiled “WARRANTIES AND GUARANTEES”. D. The backcharge for such work and any work subject to backcharge pursuant to the terms of this Purchase Order shall be computed as follows: (1) incurred labor costs (manual and non-manual) including payroll additives, travel and subsistence; (2) material at net delivered cost; (3) contractors and subcontractors (including consultants) at cost; (4) equipment and tool rentals at prevailing rates; (5) an equitable amount for BUYER’S overhead, general and administrative costs. E. Provided the Project schedule permits, BUYER shall furnish SELLER with a written estimate of the backcharge amount before performing the corrective work. BUYER will backcharge SELLER upon completion of the backcharge work for actual costs incurred, computed as shown above, or withhold such sum from funds due SELLER. If insufficient funds are or will be due SELLER to cover the backcharge, BUYER may draw on any third party security provided by SELLER. SELLER its employees, and SUBCONTRACTOR’S lower-tier subcontractors and suppliers and their employees shall not make, or permit to be made, any announcement or release any information concerning this Purchase Order or the Project, orally or in writing, to any member of the public, the press, any business entity or any official body unless prior written consent is obtained from BUYER as to the text and the recipient thereof. A. DFARS clause 252.204-7000, Disclosure of Information (AUG 2013) applies to this subcontract and, prohibits SUBCONTRACTOR from releasing to anyone outside SUBCONTRACTOR’S organization any information (including unclassified information), regardless of medium (e.g., film, tape, document), pertaining to any part of this subcontract or any program related to this subcontract, unless: The CUSTOMER’S Contracting Officer has given prior written approval; or The information is otherwise in the public domain before the date of release. B. In order to comply with the above mentioned DFARS, copies of any information requested to be released must be submitted to CONTRACTOR for forwarding to the Contracting Officer for security and policy review and clearance sixty (60) days prior to the requested release date. C. If so requested by CONTRACTOR, SUBCONTRACTOR further agrees to require its employees to execute a nondisclosure agreement prior to performing any work under this subcontract. D. SUBCONTRACTOR agrees to include a similar requirement in all lower-tier subcontracts. All requests for authorization to release information by lower-tier subcontractors shall be subject to the approval of CONTRACTOR.