Common use of Contracts with Subcontractors Clause in Contracts

Contracts with Subcontractors. Contractor shall obtain the written approval of ACTA prior to entering into any contract (or at any time during the term of the contract) in which the aggregate annual amount payable exceeds Twenty Five Thousand Dollars ($25,000). Contractor shall provide ACTA with a copy of each such contract (and any amendments thereto). Contractor shall include in each contract with a Subcontractor a provision which entitles ACTA to audit Subcontractor’s records and books, and shall require that Subcontractor’s records and books (i) describe in reasonable detail the Services performed by Subcontractor, including any Direct Costs incurred, (ii) include such supporting documentation as ACTA reasonably may require, and (iii) be subject to ACTA’s audit rights as set forth in Section 13.3. Contractor shall require Subcontractor to retain such books and records for a period of not less than three (3) calendar years after the termination of this Agreement. In addition, to the extent permitted by law, Contractor shall include in each subcontract the stipulation that Contractor, not ACTA, Owner or Railroads, is solely responsible for payment to the Subcontractor for the amounts owing and that the Subcontractor shall have no claim, and shall take no action against ACTA or any of the other Indemnified Entities for nonpayment by Contractor.