In my latest Daily Journal of Commerce Construction column, I discuss the recent rash of cases involving the question of whether subcontractors are bound by the terms of a project’s prime construction contract. In many of these situations, subcontractors contend that their subcontracts give them rights, remedies or defenses against the prime contractor that the prime contractor may not have against the owner under the prime contract. The resulting confusion, expense and risk of unraveling these situations underscore the importance of ensuring consistency between the requirements of prime contracts and subcontracts.
Read the full article at the Daily Journal of Commerce website. Subscribers only.
"Subcontracting Pitfalls: Making The Flow Down Work" was originally published April 18, 2013 by the Daily Journal of Commerce. Also published by New Orleans City Business, April 19, 2013.