Contracts & ExecutionQuestion 217 of 1605
An owner-contractor agreement and a subcontract are kept consistent through:
a.Ignoring the prime contract terms entirely
b.A 'flow-down' clause that passes prime-contract obligations to the subcontractor
c.A separate license for each trade
d.A liquidated damages waiver
Explanation
A flow-down (or conduit) clause incorporates the prime contract's relevant terms into the subcontract, binding the subcontractor to the same obligations the general owes the owner for that scope.
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