HOW TO WRITE A SPONSORSHIP AGREEMENT

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 the Contractor in prosecuting the REA against the Owner and will be bound by the outcome unless the Contractor does not afford the 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 a chance to continue to prosecute the REA in Contractor’s name.

 

The contractor shall cooperate with the Subcontractor in prosecuting the REA against the Owner. Still, the Contractor shall have the sole right to make final decisions on prosecution and settlement of the REA.   The subcontractor will take the lead in prosecuting the REA against the Owner, and the Contractor will assist the Subcontractor by allowing the Subcontractor to pursue the REA in the Contractor’s name.

 

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 dates 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. The signatory is authorized to certify the REA on behalf of the Subcontractor.  Subcontractor indemnifies and holds the Contractor harmless from damages, costs (including attorney fees), and other liabilities arising from any breach of such certification or any violation of the law against misrepresentation, fraud, or false statements.

 

Contractor and Subcontractor will each bear its own costs of prosecuting the REA.

 

The subcontractor shall proceed diligently with performance of this Agreement pending the 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.