Flow-Down Clauses To Subcontractors: What Actually Flows?

Moritt Hock & Hamroff LLP

Subcontractors must pay close attention to provisions in their subcontract that refer back to terms in the prime contract. These provisions are commonly referred to as "flow-down" clauses. Most subs are, of course, familiar with these provisions. They attempt to make the terms of a prime contract “flow down” to the subcontract.

But what exactly "flows down?" Is the subcontractor actually bound to the prime contract "in the same manner that the prime contractor is bound to the owner," as intended by the flow down provision?

Please see full Alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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Moritt Hock & Hamroff LLP

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