Condition Precedent Agreement Clause Samples

Condition Precedent Agreement. Subcontractor shall have no cause of action against Contractor and/or Contractor’s surety for any claims for additional compensation or damages for which Owner is or may be liable, unless and until Owner has paid such claim. Such payment is an absolute condition precedent to Subcontractor filing a cause of action against Contractor and/or Contractor’s surety in regard to such claim. Subcontractor shall be bound by the determination of the Owner, or in the event of an appeal or further action or proceeding by the determination of same. In the event any award of additional compensation or damages on any such claim does not identify or allocate an amount to Subcontractor, then Subcontractor shall be entitled only to its share of any actual net recovery, if any, as determined in Contractor’s sole discretion, less overhead and profit to Contractor and less Contractor’s expenses and attorneys’ fees in handling said matter.