Termination — Corrupt Act by Contractor (R22)
The Client may terminate if the Contractor does a Corrupt Act, unless it was done by a Subcontractor or supplier and the Contractor was not and should not have been aware of the act, or informed the PM and took action to stop it as soon as aware.
Corrupt acts by the Contractor give the Client immediate termination rights. If a subcontractor committed the act, the Contractor has a defence if it was genuinely unaware and acted promptly.
The defence requires both that the Contractor was unaware AND took prompt corrective action. Failure on either element leaves the Contractor exposed to termination for the subcontractor's act.
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