Flow down obligation Clause Samples

A flow down obligation clause requires a party, typically a contractor or supplier, to ensure that certain terms and conditions from their contract are also included in their agreements with subcontractors or lower-tier suppliers. This means that key requirements—such as confidentiality, compliance with laws, or quality standards—must be passed along and enforced throughout the supply chain. The core function of this clause is to maintain consistency and compliance with the original contract’s obligations at all levels, thereby reducing the risk of breaches and ensuring that all parties involved are held to the same standards.
Flow down obligation. CONTRACTOR must include the provisions of this Section 12.03 in all subcontracts for work to be performed similar to the service provided by CONTRACTOR, and the terms "Agreement," "CONTRACTOR," and "project manager" modified appropriately to preserve the State's rights.
Flow down obligation. Successful Respondent must include the provisions of CTSA Section 19.7 in all agent agreements and Subcontracts for work to be performed similar to the Services provided by Successful Respondent under this CTSA to preserve the State’s rights against such agents and Subcontractors.
Flow down obligation. The MCO must include the provisions of this section in all Subcontracts for work to be performed similar to the service provided by the MCO, and the terms “Contract,” “MCO,” and “project manager” modified appropriately to preserve HHSC’s rights.
Flow down obligation. The Grantee agrees to be responsible for any failure by its subgrantees, subcontractors, agents and employees to comply with the terms and conditions of this Contract. Nothing herein shall be deemed to create a contractual relationship between the Council and any such subgrantee or other third party or provide a basis for any claim by such subgrantee or third party against the Council. All of the Grantee's subgrantees, subcontractors and their employees shall be apprised of the terms and conditions of this Contract and shall be held liable, accountable for and subject to these terms and conditions in their own subcontract work and contracts to the same extent that the Grantee is or would be liable, accountable for and subject to these terms and conditions in its Contract Work.
Flow down obligation. HMO must include the provisions of this Section in all Subcontracts for work to be performed similar to the service provided by HMO, and the terms “Contract,” “HMO,” and “project manager” modified appropriately to preserve the State’s rights.