The Flow Down Dilemma – What to Include and Exclude
Too often prime contractors forget the rule that causes cost. Subcontractors will comply with almost any requirement you place on them, and often that comes at an additional cost. A lack of care in properly tailoring the flow down clauses applied to a subcontractor can make a great deal of difference in how the subcontract will be administered and the ultimate costs of the subcontract. Even the disputes process can be excessively complicated by failing to include the correct clauses and excluding the correct ones. And that old negotiation argument about “self-deleting clauses” well, don’t get us started on THAT one.