SUBGRANT or SUBCONTRACT Clause Samples
The SUBGRANT or SUBCONTRACT clause defines the conditions under which a party to an agreement may delegate part of its obligations or funding to another entity through a subgrant or subcontract. Typically, this clause outlines approval requirements, compliance standards, and reporting obligations that must be met before and during the engagement of subgrantees or subcontractors. Its core function is to ensure that any delegated work or funds are managed responsibly and in accordance with the original agreement, thereby maintaining oversight and accountability throughout the project.
SUBGRANT or SUBCONTRACT. A. DHS reserves the right of approval of any Grantee’s further contracts, grants, contractors, or grantees under this Agreement, and the Grantee shall report information relating to any further contract, grants, contractors, or grantees to DHS. A change in any further contractor or grantee or a change from a direct service provision to a further contractor or grantee may only be executed with the prior written approval of DHS. In addition, DHS approval may be required regarding the terms and conditions of any further contracts or grants and the further contractor or grantee selected. Approval of any further contracts, grants, contractors, or grantees will be withheld if DHS reasonably believes that the intended further contractor or grantee will not be a responsible contractor or grantee in terms of services provided and costs billed.
B. The Grantee retains responsibility for fulfillment of all terms and conditions of this Agreement when it enters into any further contract or grant and will be subject to enforcement of all the terms and conditions of this Agreement.