SPONSORSHIP OF
REQUESTS FOR EQUITABLE ADJUSTMENT (REA)
Subcontractor will give Contractor a fully supported
written REA within five (5) years after the REA accrues but in no event later
than final payment under this Agreement or Subcontractor shall be barred from
any remedy for such REA.
Subcontractor will cooperate fully with Contractor in
prosecuting the REA against the Owner and will be bound by the outcome unless
Contractor does not afford Subcontractor a reasonable opportunity to
participate in the resolution of the REA or Contractor, having determined to
discontinue its own prosecution of the REA, does not afford Subcontractor an
opportunity to continue to prosecute the REA in Contractor’s name.
Contractor shall cooperate with Subcontractor in
prosecuting the REA against the Owner but Contractor shall have the sole right
to make final decisions on prosecution and settlement of the REA.
Subcontractor shall submit with the REA a certification
to Contractor, signed by an authorized representative of the Subcontractor that
the claim is made in good faith, the supporting date are accurate and complete
to the best of the signatory’s knowledge and belief, the amount requested
accurately reflects the contract adjustment for which Subcontractor believes
the U.S. Government is liable and the signatory is authorized to certify the
REA on behalf of Subcontractor.
Subcontractor indemnifies and holds Contractor harmless from damages,
costs (including attorney fees) and other liabilities arising from any breach
of such certification or any violation of law against misrepresentation, fraud
or false statements.
Contractor and Subcontractor will each bear its own costs
of prosecuting the REA.
Subcontractor shall proceed diligently with performance
of this Agreement pending final resolution of any REA arising under this
agreement.
This clause applies to any REA, claim or appeal arising
under or related to this subcontract agreement.
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