Should Subcontractor Clause Samples
The 'Should Subcontractor' clause outlines the conditions under which a subcontractor may be engaged to perform part of the work under a contract. Typically, this clause specifies the requirements for obtaining consent from the main contractor or client before subcontracting, and may set standards for the qualifications or performance of any subcontracted parties. Its core function is to ensure that the quality and accountability of the work are maintained, while also providing the main contracting party with oversight and control over who is involved in fulfilling contractual obligations.
Should Subcontractor. (a) fail to proceed with the Subcontract Work in the time or sequence directed by Contractor; (b) fail to prosecute the Subcontract Work diligently, including failure to provide sufficient numbers of skilled workmen or proper materials, or failure to adhere to the applicable performance schedules; (c) cause Delay as defined in Paragraph 12.2 hereof to the work of Contractor or other subcontractors, sub-subcontractors or suppliers on the Project; (d) fail to perform any of its obligations under the Subcontract; (e) fail to perform the Subcontract Work in accordance with the Subcontract; (f) file bankruptcy, assign assets for the benefit of creditors, become insolvent, or be unable or fail to pay its obligations as they mature; or (g) repeatedly perform the Subcontract Work in a manner which is rejected by Owner, Architect, Engineer, Contractor or governmental agencies having jurisdiction over the Project, then Contractor may deem Subcontractor to be in default and, at Contractor’s sole option, and without limitation on other remedies available at law or in equity, take one or more of the following actions:
21.1.1 Take temporary possession if all Subcontractor’s material and equipment intended for performance of the Subcontract Work (whether or not located on the Project site) in order to assure its availability for completion of the Subcontract Work,
21.1.2 Upon forty-eight (48) hours prior written notice of default, and provided the default is not fully cured within forty-eight (48) hours, cure the default at Subcontractor’s expense plus fifteen percent (15%) for Contractor’s overhead and fee, and deduct the cost thereof from the Subcontract Price,
21.1.3 Where the work of other contractors or Subcontractors will be materially delayed, Contractor may proceed upon written notice to immediately cure the default at Subcontractor’s expense plus fifteen percent (15%) for Contractor’s overhead and fee, and deduct the cost thereof, together with any damages due to the Owner or other contractors or Subcontractors, from the Subcontract Price; and/or
21.1.4 Upon forty-eight (48) hours prior written notice of default, and provided the default is not fully
Should Subcontractor. (a) fail to make timely payment to its suppliers, subcontractors, laborers, or fringe benefit funds: (b) fail to compensate Contractor or another contractor or subcontractor for damage caused by Subcontractor; or (c) fail to perform its clean up obligations, Contractor, at its sole discretion, may make direct payment to such individuals or entities and reduce the Subcontract Agreement price accordingly.