Common use of Liability for Subcontractors Clause in Contracts

Liability for Subcontractors. Subcontracting by a Party in accordance with the provisions of the Agreement shall not relieve that Party from its obligations and liabilities as detailed in the Agreement. Each Party shall be fully liable for the correct performance of any part of its activities and the compliance of its obligations detailed in the Agreement. Each Party agrees to take all necessary measures in order to ensure that the obligations applicable to such Party also apply to its subcontractors. Notwithstanding the above, each Party will remain liable for the breach of its contractual obligations and liabilities under this Agreement by its subcontractors. Contractor shall ensure that any and all subcontractors are insured in accordance with the Insurance Addendum. The GCHP Reimbursable Expense Guidelines in Exhibit B shall apply to travel expenses incurred by a subcontractor that Contractor is obligated to reimburse to the subcontractor. GCHP shall not be responsible to pay Contractor any amount in excess of Contractor’s actual cost of reimbursing a subcontractor, or the maximum amount permitted by the GCHP’s Reimbursable Expense Guidelines, whichever is less. Contractor agrees to notify GCHP in the event the agreement with its subcontractor is terminated.