Second and Lower Tier Subcontractor Clause Samples
The 'Second and Lower Tier Subcontractor' clause defines the requirements and obligations that apply to subcontractors who are not directly contracted by the main contractor, but instead are hired by other subcontractors further down the contracting chain. This clause typically outlines the standards, compliance requirements, and approval processes that these lower-tier subcontractors must follow, such as adhering to safety regulations, insurance requirements, or project specifications. Its core practical function is to ensure that all parties involved in the project, regardless of their position in the subcontracting hierarchy, meet the same contractual and legal standards, thereby reducing risk and maintaining quality control throughout the project.
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Second and Lower Tier Subcontractor. If a Subcontractor at any tier does all or part of the changed Work with its employees, the Subcontractor's markup on the Subcontractor’s work with its employees shall be twenty-five percent of the first $50,000 of the cost, and twenty percent of the remaining cost, if any. The management markup of a Subcontractor's work by the Contractor and all intervening tiers of Subcontractors shall not exceed seven and one half percent for the Contractor and any Subcontractor, or a total of fifteen percent for the changes to the Work.
Second and Lower Tier Subcontractor. Under this contract, the forces of a subcontractor of a subcontractor are deemed to be and are the forces of the subcontractor and the total management markup for overhead and profit for all tiers of subcontractors shall not exceed in the aggregate twenty (20%) of the net Allowable Costs of the subcontractor who performs the work.
Second and Lower Tier Subcontractor. If a Subcontractor at any tier does all or part of the changed Work with its employees, the Subcontractor's markup on the Subcontractor’s work with its employees shall be twenty-five percent of the first $50,000 of the cost, and twenty percent of the remaining cost, if any. The management markup of a Subcontractor's work by the Contractor and all intervening tiers of Subcontractors shall not exceed seven and one half percent for the Contractor and any Subcontractor, or a total of fifteen percent for the changes to the Work.
3.2.8.2 The above percentages shall be applied to the net Allowable Costs, if any, as limited and defined in this Part. If the net difference between Allowable Costs and credits to the Owner results in a decrease in the Owner’s cost, the amount of credit allowed the Owner shall be the net decrease without any allowance for profit and overhead. Other than any eligible Time Dependent Overhead Costs, all costs that are not Allowable Costs in Article 3.2.9 or are disallowed in Article
3.2.10 shall be considered as overhead and shall be exclusively compensated in the allowances provided for in paragraph 3.2.8.1 above.