White Paper

The Importance of Carefully Reviewing Contract Terms


How Flow-Down Clauses Can Impact Contractual Liability

A flow-down provision states that the terms of the contract at a higher tier are also binding on the lower-tier contractor. For instance, the subcontract between the general contractor and the electrical installer usually contains a flow-down provision stating the terms and conditions in the ownercontractor agreement are binding on the installer as well. This means there may be terms in the general contract affecting the electrical installer, even though they are not found in the subcontract. Flow-down clauses and their interpretation are a common source of disputes with respect to construction contracts.



Leah M. Stevens-Block

Leah M. Stevens-Block

Sheehan & Sheehan, P.A.

  • Shareholder/director of Sheehan & Sheehan, P.A.
  • Achieved the highest rating with Martindale-Hubbell® law directory
  • Board of Directors: New Mexico State Bar Trial Practice Section, 2017 – Present
  • UNM School of Law, Magna Cum Laude, Order of the Coif, 2013
  • Can be contacted at [email protected] or (505) 247-0411

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