Common use of CONTINGENT ASSIGNMENT OF SUBCONTRACTS 5 Clause in Contracts

CONTINGENT ASSIGNMENT OF SUBCONTRACTS 5. 4.1‌ The Contract is for Owner’s benefit, its successors and assigns who, as well as Contractor, may directly enforce all rights and warranties, express or implied herein, but Subcontractors shall have recourse only against Contractor and not against Owner. Owner may rely solely upon Contractor for enforcement of all Subcontracts. To effect such purpose, Contractor assigns to Owner all right to bring any actions against subcontractors and material vendors without waiver by Owner of his right against Contractor because of defaults, delays and effects for which a subcontractor or material vendor may also be liable, said assignment being effective only if: .1 Contractor is in default under the Contract Documents; or .2 Owner has terminated the Contract in accordance with the Contract Documents; and .3 Only for those subcontract agreements which the Owner accepts by notifying the Subcontractor and Contractor in writing; and

CONTINGENT ASSIGNMENT OF SUBCONTRACTS 5. 4.1‌ 4.1 The Contract is for Owner’s benefit, its successors and assigns who, as well as Contractor, may directly enforce all rights and warranties, express or implied herein, but Subcontractors shall have recourse only against Contractor and not against Owner. Owner may rely solely upon Contractor for enforcement of all Subcontracts. To effect such purpose, Contractor assigns to Owner all right to bring any actions against subcontractors and material vendors without waiver by Owner of his right against Contractor because of defaults, delays and effects for which a subcontractor or material vendor may also be liable, said assignment being effective only if: .1 Contractor is in default under the Contract Documents; or .2 Owner has terminated the Contract in accordance with the Contract Documents; and .3 Only for those subcontract agreements which the Owner accepts by notifying the Subcontractor and Contractor in writing; and