Common use of Subcontract Requirements Clause in Contracts

Subcontract Requirements. By written agreement, Design-Builder shall require each Subcontractor, so far as applicable to the Work to be performed by the Subcontractor, to be bound to Design-Builder by terms of the Contract Documents. Each subcontract shall preserve and protect the rights of Owner in accordance with the Contract Documents with respect to the Work to be performed by the Subcontractor so that subcontracting thereof will not prejudice such rights. Each subcontract also shall provide for an assignment by Design-Builder to Owner, provided that: (1) The assignment is effective only after termination by Owner for default pursuant to Article 15 and only for those subcontracts which Owner accepts by notifying the Subcontractor in writing; and (2) After the assignment is effective, Owner will assume all future duties and obligations toward the Subcontractor which Design-Builder assumed in the subcontract. (3) The assignment is subject to the prior rights of the surety, if any, obligated under any bond provided in accordance with the Contract Documents. (4) As to Design Consultants, Design-Builder shall ensure that the contracts of all Design Consultants of any tier are subject to the right of Owner to receive an assignment of such contract, regardless of who is in privy of contract with such Design Consultant.