direct agreement

direct agreement
an agreement creating a direct contractual relationship between a subcontractor of the project company and either the awarding authority or the project's funders. The parties sometimes call the agreement between a subcontractor and the awarding authority a collateral warranty. Key sub-subcontractors enter into direct agreements (or collateral warranties) with the project company. Direct agreements include a right to step in to the subcontract (see step-in rights).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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