5354.1 Upon termination of a prime contract for convenience, default, or any other reason, the prime contractor and each subcontractor shall be responsible for the prompt settlement with their immediate subcontractors. A subcontractor shall have no contractual rights against WASA upon termination of the prime contract.

5354.2 The failure of a prime contractor to include an appropriate termination clause in any subcontract or the failure of the contractor to exercise the rights of the termination clause shall not affect WASA's right to require the termination of the subcontract.

5354.3 In no event shall WASA be required to pay the prime contractor any amount for loss of anticipatory profits or consequential damages resulting from the termination of any subcontractor.

SOURCE: Emergency Rulemaking published at 46 DCR 613 (January 22, 1999) [EXPIRED]; as Final Rulemaking published at 46 DCR 7349 (September 17, 1999).