Common use of Backcharges Clause in Contracts

Backcharges. Where feasible, Contractor shall use reasonable efforts to give Subcontractor notice before any costs are incurred which will be offset against the Subcontract Price. If Subcontractor disagrees with the nature or amount of costs to be incurred, it shall advise Contractor promptly in writing, and in no event later than three (3) days after its receipt of notice from Contractor. Such notification shall include reasons for Subcontractor's dispute and shall propose a reasonable and acceptable alternative along with an estimate of the cost of the alternative, where applicable. If Contractor receives no protest to a proposed backcharge or Subcontractor protests and does not provide an alternative to Contractor’s proposed action, Contractor may proceed to incur the costs and offset them against the Subcontract Price. Costs so offset shall be deemed to be reasonable and beyond dispute by Subcontractor. If Subcontractor timely protests and proposes a reasonable alternative that Contractor rejects, the disputed costs incurred shall be subject to the dispute resolution procedure outlined in Article XI, if Subcontractor gives Contractor written notice within ten (10) days of such rejection.