Common use of Assignment of Subcontracts Clause in Contracts

Assignment of Subcontracts. Each Subcontract shall expressly preserve and protect the rights of the Owner under the Contract Documents with respect to the Work to be performed by the Subcontractor so that the subcontracting thereof will not prejudice such rights, and shall include provisions (a) granting to the Design/Builder the right to succeed to the interest of, or otherwise accept an assignment of, such Subcontract, but only in the event of a termination of the Team Subcontract by the Design/Builder (or its assignee) due to the existence of a default by the Team Subcontractor; and (b) granting to the Owner the right to succeed to the interest of, or otherwise accept an assignment of, such Subcontract, but only in the event of a termination of this Agreement by the Owner due to the existence of a Design/Builder Event of Default and a further termination of the Team Subcontract by the Owner. Any such assignment shall be subject to the prior rights of the surety, if any, obligated under bond relating to the Team Subcontract.