Common use of Subcontracts with Affiliates Clause in Contracts

Subcontracts with Affiliates. 7.6.1 DB Contractor shall have the right to have Work and services performed by Affiliates only under the following terms and conditions: (a) such Work performed by an Affiliate must be pursuant to a written Subcontract, which written Subcontract must be provided to TxDOT for review and comment before execution; TxDOT will provide any comments to DB Contractor within 20 days after receipt of the proposed Subcontract; (b) the Subcontract shall comply with all applicable provisions of this Section 7, be consistent with Good Industry Practice, and be in form and substance substantially similar to Subcontracts then being used by DB Contractor or Affiliates for similar Work or services with unaffiliated Subcontractors; (c) the Subcontract shall set forth the scope of Work and services and all the pricing, terms and conditions respecting the scope of Work and services; (d) the pricing, scheduling and other terms and conditions of the Subcontract shall be no less favorable to DB Contractor than those that DB Contractor could reasonably obtain in an arms’ length, competitive transaction with an unaffiliated Subcontractor. DB Contractor shall bear the burden of proving that the same are no less favorable to DB Contractor; and (e) no Affiliate shall be engaged to perform any Work or services which any DBA Documents or the Project Management Plan or any component part, plan or other documentation thereunder indicates are to be performed by an independent or unaffiliated party. No Affiliate shall be engaged to perform any Work or services which would be inconsistent with Good Industry Practice.