Common use of Termination of Prime Clause in Contracts

Termination of Prime. Contract Should the Owner terminate the Prime Contract or any part which includes the Subcontractor’s Work, the Contractor shall so notify the Subcontractor in writing and upon written notification this Agreement shall be terminated (except for Subcontractor’s obligations which, by their nature, survive the termination of this Agreement) and the Subcontractor shall immediately stop work, follow all of Contractor’s instructions and mitigate all costs. In the event of such Owner termination, the Contractor’s liability to the Subcontractor is limited to the extent of the Contractor’s recovery, if any, on behalf of the Subcontractor under the Prime Contract. Nothing herein contained shall require the Contractor to make any claim against the Owner for such additional compensation or damages in the event of termination before completion, and it is specifically agreed that the failure of the Contractor to prosecute any such claim against the Owner shall not entitle the Subcontractor to any claim for

Termination of Prime. Contract Should the Owner terminate the Prime Contract or any part which includes the Subcontractor’s Work, the Contractor shall so notify the Subcontractor in writing and upon written notification this Agreement shall be terminated (except for Subcontractor’s obligations which, by their nature, survive the termination of this Agreement) and the Subcontractor shall immediately stop work, follow all of Contractor’s instructions and mitigate all costs. In the event of such Owner termination, the Contractor’s liability to the Subcontractor is limited to the extent of the Contractor’s recovery, if any, on behalf of the Subcontractor under the Prime Contract. Nothing herein contained shall require the Contractor to make any claim against the Owner for such additional compensation or damages in the event of termination before completion, and it is specifically agreed that the failure of the Contractor to prosecute any such claim against the Owner shall not entitle the Subcontractor to any claim foris