16.7  Payment of Subcontractors

(a)  If a NOP informs the Project Owner, or the Project Owner becomes aware that a NOP has failed to pay an amount that is due and payable to a Subcontractor, the Project Owner may pay the Subcontractor directly and the amount paid will be a Reimbursable Cost for the purposes of calculating the AOC under this Agreement. The NOPs will not be entitled to be reimbursed any Reimbursable Costs, nor paid any Corporate Overhead and Profit, under this clause 16.7(a) in respect of that amount.

(b)  If the Project Owner pays a Subcontractor directly, it is not liable to pay the NOP for the work performed by the Subcontractor the subject of the payment.