Contractor’s Taxes. Contractor shall be responsible for all taxes, transportation fees, freight, packing costs, custom duties, export/import tariffs, personnel fees and all other costs associated with the performance of the Work and any other of its duties and responsibilities under this Agreement, unless otherwise stated in this Agreement (collectively “Contractor’s Taxes”). The Parties agree that the Contract Price, as stated in Section 4.1, includes all Contractor’s Taxes, excluding materials that are tax exempt under Applicable Law. To the extent Owner indicates to Contractor that it will obtain an exemption which is thereby factored into the original Contract Price and Contractor complies with Owner’s reasonable instructions for implementing such exemption for purposes of avoiding payment of sales and use taxes to Subcontractors or Suppliers for goods and services subject to such exemption, then Owner shall reimburse Contractor for the amount of any sales or use taxes that Contractor is required to pay, to the extent excluded from the original Contract Price, notwithstanding the applicability of such exemption; provided, however, Contractor shall procure and provide to Owner such documents evidencing payment of such taxes as Owner may be reasonably required to enable Owner to obtain a refund of such paid taxes. At any time and from time to time upon Owner’s reasonable request, Contractor will allow Owner and its designees the opportunity to review all purchases by Contractor and its Subcontractors (and will in this regard provide all relevant information regarding the same (including separate break-out pricing for goods and services, if reasonably available)) for the purpose of determining whether such exemptions or rebates apply and have been or should have been granted. If Owner directs Contractor to seek an exemption or rebate and Contractor fails to seek such exemption or rebate for an item, Owner will be relieved of its obligation under Section 4.2.2(a) to reimburse Contractor for the taxes on such item. If Contractor seeks exemption or rebate on an item in accordance with the foregoing, but the same is not granted, Owner shall reimburse Contractor for the disallowed amount, and Contractor will assign to Owner its right to seek a refund of, or rebate in connection with, the amount in question and will reasonably cooperate with Owner to seek such refund or rebate. If such assignment is not allowed under Applicable Law, then Contractor will, at Owner’s direction and expense, seek such refund and, if received, pay over such refund to Owner, and all costs of seeking a refund or appealing the denial of an exemption, refund or rebate shall be borne by Owner. Any rebates received by Contractor or its Subcontractors in connection with any Contractor’s Taxes reimbursed by Owner under Section 4.2.2 from the purchase of any materials, supplies or equipment in connection with the Work shall be immediately paid over to Owner. Contractor shall promptly provide Owner with notice of any audits, assessments or challenges by any Government Authority with respect to Contractor’s Taxes, which are to be reimbursed by Owner. In the event of any such audit, assessment or challenge, Owner shall have the right to receive copies of all correspondence and documents relating thereto, to attend and participate in all meetings with the Government Authority and to participate in and control all mediation, and litigation related thereto, provided the cost thereof is borne by Owner and Owner indemnifies, defends and holds Contractor harmless with respect thereto. To the extent Owner is obligated under Applicable Laws to pay any of Contractor’s Taxes, Contractor shall: (i) furnish to Owner all information and reports required to be furnished to the appropriate taxing authorities in connection with all such Contractor’s Taxes; and (ii) reimburse Owner for the full amount of such Contractor’s Taxes paid by Owner that are not otherwise required to be reimbursed by Owner to Contractor under Section 4.2.2. Contractor will have no responsibility for property taxes assessed on the Work or the Project Site.
Appears in 2 contracts
Samples: Engineering, Procurement and Construction Agreement, Engineering, Procurement and Construction Agreement
Contractor’s Taxes. (a) Contractor shall be responsible for all taxes, transportation fees, freight, packing costs, custom duties, export/import tariffs, personnel fees and all other costs associated with the performance of the Work and any other of its duties and responsibilities under this Agreement, unless otherwise stated in this Agreement (collectively “Contractor’s Taxes”). The Parties agree that the Contract Price, as stated in Section 4.1, includes all Contractor’s Taxes, excluding materials that are tax exempt under Applicable Law. .
(b) To the extent Owner indicates to Contractor that it will obtain an exemption which is thereby factored into the original Contract Price and Contractor complies with Owner’s reasonable instructions for implementing such exemption for purposes of avoiding payment of sales and use taxes to Subcontractors or Suppliers for goods and services subject to such exemption, then Owner shall reimburse Contractor for the amount of any sales or use taxes that Contractor is required to pay, to the extent excluded from the original Contract Price, notwithstanding the applicability of such exemption; provided, however, Contractor shall procure and provide to Owner such documents evidencing payment of such taxes as Owner may be reasonably required to enable Owner to obtain a refund of such paid taxes. .
(c) At any time and from time to time upon Owner’s reasonable request, Contractor will allow Owner and its designees the opportunity to review all purchases by Contractor and its Subcontractors (and will in this regard provide all relevant information regarding the same (including separate break-out pricing for goods and services, if reasonably available)) for the purpose of determining whether such exemptions or rebates apply and have been or should have been granted. .
(i) If Owner directs Contractor to seek an exemption or rebate and Contractor fails to seek such exemption or rebate for an item, Owner will be relieved of its obligation under Section 4.2.2(a) to reimburse Contractor for the taxes on such item. .
(ii) If Contractor seeks exemption or rebate on an item in accordance with the foregoing, but the same is not granted, Owner shall reimburse Contractor for the disallowed amount, and Contractor will assign to Owner its right to seek a refund of, or rebate in connection with, the amount in question and will reasonably cooperate with Owner to seek such refund or rebate. If such assignment is not allowed under Applicable Law, then Contractor will, at Owner’s direction and expense, seek such refund and, if received, pay over such refund to Owner, and all costs of seeking a refund or appealing the denial of an exemption, refund or rebate shall be borne by Owner. .
(iii) Any rebates received by Contractor or its Subcontractors in connection with any Contractor’s Taxes reimbursed by Owner under Section 4.2.2 from the purchase of any materials, supplies or equipment in connection with the Work shall be immediately paid over to Owner. .
(d) Contractor shall promptly provide Owner with notice of any audits, assessments or challenges by any Government Authority with respect to Contractor’s Taxes, which are to be reimbursed by Owner. In the event of any such audit, assessment or challenge, Owner shall have the right to receive copies of all correspondence and documents relating thereto, to attend and participate in all meetings with the Government Authority and to participate in and control all mediation, and litigation related thereto, provided the cost thereof is borne by Owner and Owner indemnifies, defends and holds Contractor harmless with respect thereto. .
(e) To the extent Owner is obligated under Applicable Laws to pay any of Contractor’s Taxes, Contractor shall: (i) furnish to Owner all information and reports required to be furnished to the appropriate taxing authorities in connection with all such Contractor’s Taxes; and (ii) reimburse Owner for the full amount of such Contractor’s Taxes paid by Owner that are not otherwise required to be reimbursed by Owner to Contractor under Section 4.2.2. Contractor will have no responsibility for property taxes assessed on the Work or the Project Site.
Appears in 2 contracts
Samples: Engineering, Procurement and Construction Agreement, Engineering, Procurement and Construction Agreement
Contractor’s Taxes. (a) Contractor shall be responsible for all taxes, transportation fees, freight, packing costs, custom duties, export/import tariffs, personnel fees and all other costs associated with the performance of the Work and any other of its duties and responsibilities under this Agreement, unless otherwise stated in this Agreement (collectively ““ Contractor’s Taxes”). The Parties agree that the Contract Price, as stated in Section 4.1, includes all Contractor’s Taxes, excluding materials that are tax exempt under Applicable Law. .
(b) To the extent Owner indicates to Contractor that it will obtain an exemption which is thereby factored into the original Contract Price and Contractor complies with Owner’s reasonable instructions for implementing such exemption for purposes of avoiding payment of sales and use taxes to Subcontractors or Suppliers for goods and services subject to such exemption, then Owner shall reimburse Contractor for the amount of any sales or use taxes that Contractor is required to pay, to the extent excluded from the original Contract Price, notwithstanding the applicability of such exemption; provided, however, Contractor shall procure and provide to Owner such documents evidencing payment of such taxes as Owner may be reasonably required to enable Owner to obtain a refund of such paid taxes. .
(c) At any time and from time to time upon Owner’s reasonable request, Contractor will allow Owner and its designees the opportunity to review all purchases by Contractor and its Subcontractors (and will in this regard provide all relevant information regarding the same (including separate break-out pricing for goods and services, if reasonably available)) for the purpose of determining whether such exemptions or rebates apply and have been or should have been granted. .
(i) If Owner directs Contractor to seek an exemption or rebate and Contractor fails to seek such exemption or rebate for an item, Owner will be relieved of its obligation under Section 4.2.2(a) to reimburse Contractor for the taxes on such item. .
(ii) If Contractor seeks exemption or rebate on an item in accordance with the foregoing, but the same is not granted, Owner shall reimburse Contractor for the disallowed amount, and Contractor will assign to Owner its right to seek a refund of, or rebate in connection with, the amount in question and will reasonably cooperate with Owner to seek such refund or rebate. If such assignment is not allowed under Applicable Law, then Contractor will, at Owner’s direction and expense, seek such refund and, if received, pay over such refund to Owner, and all costs of seeking a refund or appealing the denial of an exemption, refund or rebate shall be borne by Owner. .
(iii) Any rebates received by Contractor or its Subcontractors in connection with any Contractor’s Taxes reimbursed by Owner under Section 4.2.2 from the purchase of any materials, supplies or equipment in connection with the Work shall be immediately paid over to Owner. .
(d) Contractor shall promptly provide Owner with notice of any audits, assessments or challenges by any Government Authority with respect to Contractor’s Taxes, which are to be reimbursed by Owner. In the event of any such audit, assessment or challenge, Owner shall have the right to receive copies of all correspondence and documents relating thereto, to attend and participate in all meetings with the Government Authority and to participate in and control all mediation, and litigation related thereto, provided the cost thereof is borne by Owner and Owner indemnifies, defends and holds Contractor harmless with respect thereto. .
(e) To the extent Owner is obligated under Applicable Laws to pay any of Contractor’s Taxes, Contractor shall: (i) furnish to Owner all information and reports required to be furnished to the appropriate taxing authorities in connection with all such Contractor’s Taxes; and (ii) reimburse Owner for the full amount of such Contractor’s Taxes paid by Owner that are not otherwise required to be reimbursed by Owner to Contractor under Section 4.2.2. Contractor will have no responsibility for property taxes assessed on the Work or the Project Site.
Appears in 2 contracts
Samples: Engineering, Procurement and Construction Agreement, Engineering, Procurement and Construction Agreement