Bill Wilson | Construction Law Zone Most subcontracts include a flow through provision (also called flow down and incorporation clauses) stating that the subcontractor and contractor are bound by the same obligations as set forth in the prime contract between the contractor and owner. Many jurisdictions interpret such provisions narrowly, as illustrated in a recent… Continue reading New York Restrictions on Flow Through Provision in Subcontracts
Tag: Flow-Down Agreements
Flow-Down Showdown: The Interplay of Arbitration Agreements and Flow-Down Provisions
Lexie Pereira | Forum on Construction Law Flow-down, or pass-through, provisions are among the most important provisions in all subcontracts, at least from the perspective of general contractors. These classic risk-transfer provisions provide that the subcontractor will be bound to the general contractor in the same fashion that the general contractor is bound under its… Continue reading Flow-Down Showdown: The Interplay of Arbitration Agreements and Flow-Down Provisions
No Flow-Down of a Waiver of the Statute of Limitations to Subcontractor
Katherine E. Kohm | The Dispute Resolver | November 22, 2016 In the matter Hensel Phelps Construction Company v. Thompson Masonry Contractor, Inc. et al. the Supreme Court of Virginia considered whether a subcontract waived the applicable statute of limitations–meaning there was no time restriction to filing a lawsuit–by incorporating by reference the prime contract… Continue reading No Flow-Down of a Waiver of the Statute of Limitations to Subcontractor
Virginia Supreme Court Undermines Effectiveness of Flow-Down Provisions in Construction Agreements
Thomas R. Folk and Michael S. Dingman | Reed Smith LLP | November 15, 2016 The Supreme Court of Virginia recently held in a construction case that typical flow-down provisions found in subcontracts are insufficient to pass through to the subcontractor, a general contractor’s waiver of statute-of-limitations rights in the prime contract. The decision begs… Continue reading Virginia Supreme Court Undermines Effectiveness of Flow-Down Provisions in Construction Agreements