SUSPENSION – SUBCONTRACT AGREEMENT

SUSPENSION – SUBCONTRACT AGREEMENT

  • If the whole or part of the Subcontract Works is suspended by the COMPANY for any event beyond the CONTRACTOR’s control, due to reasons including, but not limited to, a Force Majeure as defined in the Main Contract and if the SUBCONTRACTOR suffers delay and/or incurs cost due to such suspension, then the SUBCONTRACTOR shall be entitled to an extension of time under Clause 7.11 and/or additional payment under Clause 19.1. For the avoidance of doubt, the SUBCONTRACTOR shall not be entitled to extension of time and any additional payment in any case of suspension as a result of the act, omission, negligence or willful misconduct of the SUBCONTRACTOR or as a result of a breach of the Subcontract by the SUBCONTRACTOR. (See Particular Terms and Conditions Appendix P)
  • Without prejudice to the above, the CONTRACTOR may at any time at its convenience suspend the execution of the whole or part of the Subcontract Works by issuing a written notice to the SUBCONTRACTOR. On receipt of such notice the SUBCONTRACTOR shall forthwith cease the execution of the suspended portion of the Subcontract Works and shall during such suspension:
  1. properly protect and secure the Subcontract Works and the Materials, Plant, SUBCONTRACTOR’s Equipment, CONTRACTOR’s Equipment and tools and consumables affected at the Subcontract Works Site against any deterioration, loss or damage;
  2. place no further subcontracts or purchase orders for Materials, Plant, SUBCONTRACTOR’s Equipment, services, work or facilities with respect to those parts of the Subcontract Works suspended except to the extent expressly requested or agreed by the CONTRACTOR; and
  3. use all reasonable endeavors to suspend on the most favorable terms available to the SUBCONTRACTOR all purchase orders, subcontracts and rental agreements to the extent affected by such suspension and otherwise minimize the additional costs associated with such suspension.
  • During such suspension pursuant to Clause 13.2 and if the SUBCONTRACTOR suffers delay and/or incurs cost due to such suspension, then the SUBCONTRACTOR shall be entitled to an extension of time under Clause 7.2 and/or additional payment under Clause 19.2 , provided however that no payment will be due if the suspension is:
    1. otherwise provided for in the Subcontract;
    2. necessary by the reason of any negligent act or omission or breach of the Subcontract on the part of the SUBCONTRACTOR;
    3. necessary by the reason of climatic conditions on the Subcontract Works Site; or
    4. necessary for the proper execution of the Subcontract Works or for the safety of the Subcontract Works or any part thereof or any person.
  • After receipt of an instruction to proceed, the SUBCONTRACTOR shall, after due notice to the CONTRACTOR, examine the Subcontract Works affected by the suspension. The SUBCONTRACTOR shall make good any deterioration or defect in, or damage to or loss of the Subcontract Works that may have occurred during the suspension. The SUBCONTRACTOR shall not be entitled to payment for costs incurred in making good any deterioration, defect, damage or loss caused by faulty workmanship or materials or by the SUBCONTRACTOR’s failure to take the measures specified in Clause 13.2.

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