What is the main purpose of a 'flow-down' clause in subcontract agreements?
Correct Answer
D) To pass prime contract obligations to subcontractors
Flow-down clauses ensure that subcontractors are bound by the same terms, conditions, and obligations that apply to the general contractor under the prime contract.
Why This Is the Correct Answer
Flow-down clauses ensure that subcontractors are bound by the same terms, conditions, and obligations that apply to the general contractor under the prime contract.
More NASCLA Questions
Which AIA document contains the general conditions that govern the rights and responsibilities of all parties in a construction contract?
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What is the primary purpose of job cost accounting in construction?
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