Common use of SUBCONTRACTOR RELATIONS Clause in Contracts

SUBCONTRACTOR RELATIONS. 5.3.1 The Contractor shall not be discharged from any obligations to Owner hereunder as a result of any subcontract. The Contractor shall be as fully responsible to the Owner for the acts and omissions of its Subcontractors and its suppliers of materials and of persons either directly or indirectly employed by them as it is for the acts and omissions of persons directly employed by it. The responsibility of the Contractor for its Subcontractors and suppliers shall not be diminished by the right of the Owner to approve Subcontractors and suppliers or that the Owner may have exercised or not the exercised that right or by any other right of the Owner relating to Subcontractors or suppliers. Nothing contained in the Contract Documents shall relieve the Contractor of the responsibility for his Subcontractors or create any contractual relation between any Subcontractor or material supplier and the Owner. 5.3.2 Subcontracts and agreements for the acquisition of materials and equipment shall be in an appropriate written form acceptable to the Owner. The Contractor shall include in all such subcontracts and agreements the pertinent terms and conditions of this Contract to the fullest extent applicable and require that all work be performed in accordance therewith. Further, such subcontracts or agreements shall contain provisions which: (a) Bind such Subcontractor or Supplier to the Contractor by the terms of the Contract Documents and to assume toward the Contractor all the obligations and responsibilities, which the Contractor by those Documents, assumes toward the Owner, with respect to the work of the Subcontractor or supplier; (b) Preserve and protect the rights of Owner under the Contract Documents with respect to the work to be performed under the subcontract so that the subcontracting thereof will not prejudice such rights; (c) Bind such Subcontractor or Supplier to give to the Owner written notice of any default under the subcontract or supply agreement on the part of the Contractor and not to take any action in respect of the default unless it remains uncured 30 days after the notice is given; and to accept payment or performance under the subcontract by the Owner in lieu of payment or performance by the Contractor, although the Owner shall not be obligated to undertake the Contractor's payment obligations thereunder; (d) Require that all claims for additional cost or other damage and extensions of time, with respect to subcontracted portions of the Work shall be submitted to Contractor in sufficient time and manner so that Contractor may comply in the manner provided in the Contract Documents for like claims by Contractor upon Owner should Contractor elect to pass such claims through to Owner; (e) Require that such Subcontractor or Supplier look only to the Contractor and not to Owner or Owner's Lender for the performance of any or all obligations owed the Subcontractor or supplier; (f) Require that such Subcontractor or supplier waive and subordinate any lien, or claim or right of lien against the Project or the land upon which it is situated as required by Article 14 hereof; (g) Contain a provision indemnifying Owner in accordance with Paragraph 4.16 hereof; (h) Waive all rights Owner, Architect, Contractor and Subcontractor may have against one another for damages caused by fire or other peril covered by property insurance described in Subparagraph 11.3.6 hereof, except such rights as they may have to the proceeds of such insurance. (i) Permit assignment to Owner and assumption of all rights and obligations thereunder, at Owner's sole election, upon written notice, in the event of any termination of the Owner Contractor Agreement. (j) Require the Subcontractor to enter into similar agreements with his Sub-subcontractors. 5.3.3 All subcontracts shall be entered by Contractor and copies of all subcontracts greater than Fifty Thousand ($50,000.00) Dollars shall be furnished to Owner. 5.3.4 The Contractor and all Subcontractors shall comply with all applicable licensing laws for contractors prevailing within the state in which the Project is located. 5.3.5 The Contractor shall make available to each proposed Subcontractor, prior to the execution of the Subcontract, copies of those of the Contract Documents to which the Subcontractor will be bound by this Paragraph 5.3, and necessary to inform them fully of the requirements of the Contract documents which pertain to or which might otherwise affect their work. Each Subcontractor shall similarly make copies of such Documents available to his Sub- subcontractors. 5.3.6 The Contractor shall have no financial interest in the payments made under any subcontract or any contract for materials, labor, services. equipment or appliances.

SUBCONTRACTOR RELATIONS. 5.3.1 The Contractor shall not be discharged from any obligations to Owner hereunder as a result of any subcontract. The Contractor shall be as fully responsible to the Owner for the acts and omissions of its Subcontractors and its suppliers of materials and of persons either directly or indirectly employed by them as it is for the acts and omissions of persons directly employed by it. The responsibility of the Contractor for its Subcontractors Sub-contractors and suppliers shall not be diminished by the right of the Owner to approve Subcontractors and suppliers or that the Owner may have exercised or not the exercised that right or by any other right of the Owner relating to Subcontractors or suppliers. Nothing contained in the Contract Documents Document shall relieve the Contractor of the responsibility for his Subcontractors or create any contractual relation between any Subcontractor or material supplier and the Owner. 5.3.2 Subcontracts and agreements for the acquisition of materials and equipment shall be in an appropriate written form acceptable to the Owner. The Contractor shall include in all such subcontracts and agreements the pertinent terms and conditions of this Contract to the fullest extent applicable and require that all work be performed in accordance therewith. Further, such subcontracts or agreements agreement shall contain provisions which: (a) Bind such Subcontractor or Supplier to the Contractor by the terms of the Contract Documents and to assume toward the Contractor all the obligations and responsibilities, which the Contractor by those Documents, assumes toward the Owner, with respect to the work of the Subcontractor or supplier; (b) Preserve and protect the rights of Owner under the Contract Documents with respect to the work to be performed under the subcontract so that the subcontracting thereof will not prejudice such rights; (c) Bind such Subcontractor or Supplier to give to the Owner written notice of any default under the subcontract or supply agreement on the part of the Contractor and not to take any action in respect of the default unless it remains uncured 30 days after the notice is given; and to accept payment or performance under the subcontract by the Owner in lieu of payment or performance by the Contractor, although the Owner shall not be obligated to undertake the Contractor's payment obligations thereunder;. (d) Require that all claims for additional cost or other damage and extensions of time, with respect to subcontracted portions of the Work shall be submitted to Contractor in sufficient time and manner so that Contractor may comply in the manner provided in the Contract Documents for like claims by Contractor upon Owner should Contractor elect to pass such claims through to Owner; (e) Require that such Subcontractor or Supplier supplier look only to the Contractor and not to Owner or Owner's Lender for the performance of any or all obligations owed the Subcontractor or supplier;. (f) Require that such Subcontractor or supplier waive and subordinate any lien, or claim or right of lien against the Project or the land upon which it is situated as required by Article 14 hereof; (g) Contain a provision indemnifying Owner in accordance with Paragraph 4.16 hereof;. (h) Waive all rights Owner, Architect, Contractor and Subcontractor may have against one another for damages caused by fire or other peril covered by property insurance described in Subparagraph 11.3.6 hereof, except such rights as they may have to the proceeds of such insurance. (i) Permit assignment to Owner and assumption of all rights and obligations thereunder, at Owner's sole election, upon written notice, in the event of any termination of the Owner Owner-Contractor Agreement. (j) Require the Subcontractor to enter into similar agreements with his Sub-subcontractors. 5.3.3 All subcontracts shall be entered by Contractor and copies of all subcontracts greater than Fifty Thousand ($50,000.00) Dollars shall be furnished to Owner. 5.3.4 The Contractor and all Subcontractors shall comply with all applicable licensing laws for contractors prevailing within the state in which the Project is located. 5.3.5 The Contractor shall make available to each proposed Subcontractor, prior to the execution of the Subcontract, copies of those of the Contract Documents to which the Subcontractor will be bound by this Paragraph 5.3, and necessary to inform them fully of the requirements of the Contract documents Documents which pertain to or which might otherwise affect their work. Each Subcontractor shall similarly make copies of such Documents available to his Sub- Sub-subcontractors. 5.3.6 The Contractor shall have no financial interest in the payments made under any subcontract or any contract for materials, labor, services. , equipment or appliances.