TranSystems Corporation - LGM Construction

will consider when developing and approving bidder lists will be local and minority
participation. FedEx’s goal is that the aggregate amount paid to Subcontractors who are
disadvantaged business enterprises will not be less than fifteen percent (15%) of the Contractor’s
Fee. To that end, Contractor shall observe the requirements set forth in the attached Exhibit G.
(b) Contractor may contract, and may permit its Subcontractors to contract, only with
Subcontractors skilled in the tasks assigned to them and capable of working harmoniously with
all trades, crafts and other individuals on the Project. In that regard, Contractor must use its best
efforts to minimize the likelihood of any strike, work stoppage or other labor disturbance. To
that end, Contractor shall promptly resolve claims, complaints, labor disputes and disputes over
assignment or work tasks among the Subcontractors engaged in the performance of the Work.
(c) FedEx may require Contractor to dismiss any Subcontractor for misconduct or nonperformance
and to substitute a Subcontractor acceptable to FedEx. If FedEx requires a
substitute for any Subcontractor for any reason other than the Subcontractor’s misconduct or
non-performance, the parties will adjust the Contractor’s Fee by means of a Change Order in
order to reflect the difference in cost that the substitution occasions.
(d) Contractor may replace a Subcontractor to whom Contractor has awarded a
Subcontract in accordance with the terms of this Agreement only with FedEx's prior written
approval, only with a Subcontractor that appears on the list of pre-qualified Subcontractors
jointly developed with, and approved by, FedEx or that FedEx has otherwise expressly approved,
and only for the following reasons:
(i) Inability of the Subcontractor to provide bonds, if required;
(ii) Failure of the Subcontractor to perform according to approved
schedules or other provisions of the Contract Documents; or
(iii) Other reasons that reasonably would render the Subcontractor
unable to perform its work according to the Contract Documents,
as Contractor certifies in writing.
Section 7.04. Subcontract Terms.
A Subcontractor must perform all portions of the Work
that it undertakes in accordance with the terms of a written agreement between Contractor and
the Subcontractor (and, where appropriate, between Subcontractors and their subcontractors),
which agreement must provide for the payment of a fixed contract sum to the Subcontractor as
consideration for the Materials or Services that the Subcontractor is furnishing. Each
Subcontract (other than those by which Contractor procures the utility services that Contractor
must provide in accordance with the terms of Section 10.06 below) must contain provisions that:
(i) preserve and protect the rights of FedEx under the terms of the
Contract Documents as they pertain to the portion of the Work
performed by the Subcontractor;
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