Dispute Resolution: Additional Requirements for Subcontractor Disputes Clause Samples
This clause establishes specific procedures and requirements for resolving disputes that arise between the main contractor and subcontractors. It may outline steps such as mandatory negotiation periods, escalation to mediation or arbitration, or the need to notify the main contractor before initiating formal proceedings. By setting out these additional requirements, the clause ensures that subcontractor disputes are managed efficiently and consistently, reducing the risk of project delays and promoting fair resolution of conflicts.
Dispute Resolution: Additional Requirements for Subcontractor Disputes. For purposes of this Section 22, a “Subcontractor Dispute” shall include any Dispute by a Subcontractor, including also any pass-through claims by a lower tier Subcontractor, against Developer that is actionable by Developer against TxDOT, arises from the Work and is provided for under the Contract Documents. If Developer determines to pursue a Dispute against TxDOT that includes a Subcontractor Dispute, the following additional conditions shall apply:
(a) Developer shall identify clearly in all submissions pursuant to this Section 22, that portion of the Dispute that involves a Subcontractor Dispute.
(b) Failure of Developer to assert a Subcontractor Dispute on behalf of any Subcontractor at the time of submission of a related claim by Developer shall constitute a release and discharge of TxDOT by Developer on account of, and with respect to, such Subcontractor Dispute.
(c) Developer shall require in all Subcontracts that all Subcontractors of any tier: (i) agree to submit Subcontractor Disputes to Developer in a proper form and in sufficient time to allow processing by Developer in accordance with this Section 22; (ii) agree to be bound by the terms of this Section 22 to the extent applicable to Subcontractor Disputes; (iii) agree that, to the extent a Subcontractor Dispute is involved, completion of all steps required under this Section 22 shall be a condition precedent to pursuit by the Subcontractor of any other remedies permitted by law, including institution of a lawsuit against Developer; and (iv) agree that the existence of a dispute resolution process for Disputes involving Subcontractor Disputes shall not be deemed to create any claim, right or cause of action by any Subcontractor against TxDOT. The Subcontractors shall, at all times, have rights and remedies only against Developer.
Dispute Resolution: Additional Requirements for Subcontractor Disputes. For purposes of this Section 16, a “