Common use of Performance Failure Clause in Contracts

Performance Failure. Subcontractor shall be liable to Contractor for all costs, direct or indirect, which Contractor or Owner incurs as a result of Subcontractor’s failure to perform this Subcontract, or any part hereof, in accordance with its terms. Subcontractor’s failure to perform shall include, but not be limited to, the failure of its suppliers and/or subcontractors of any tier to perform. The liability of Subcontractor and its sureties (if any) shall include, but not be limited to, (1) liquidated or actual damages and other delay costs payable by Contractor to Owner; (2) Contractor’s increased costs of performance, including extended overhead and other costs resulting from Subcontractor-caused delays or improper Subcontractor Work; (3) warranty and rework costs; (4) liability to third parties, including Subcontractor’s employees; (5) cost to complete Subcontractor’s Work; (6) attorney fees and related costs; and (7) sums equal to benefits paid for or on behalf of Subcontractor or to Subcontractor’s employees where such benefit payments are charged to Contractor under any merit plan or to Contractor’s individual reserve account pursuant to any workers’ or unemployment compensation insurance policy or statute.