Flow-Down of Corrupt Act Provisions
The Contractor includes equivalent provisions to these in subcontracts and contracts for the supply of Plant and Materials and Equipment. The anti-corruption obligations flow down the supply chain.
Every subcontract and supply contract must contain equivalent anti-corruption clauses. The Contractor should provide template wording to all subcontractors and suppliers before contract award.
Failure to include equivalent provisions in lower-tier contracts leaves gaps in the contractual chain. The Contractor remains liable for corrupt acts of any subcontractor or supplier regardless of flow-down.
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