Subcontractors contract with the general contractor and lack privity with the owner. They retain lien and bond rights against the project despite the absence of a direct contract.
Flow-down provisions bind them to prime contract terms.
Alternative Names:
Sub|Trade Contractor
Why it Matters?
Absence of privity with the owner channels subcontractor claims through the general contractor or through lien and bond rights, which is why perfecting those statutory remedies matters more for subcontractors than for the general contractor. Pass-through claims against the owner require the general contractor's cooperation, typically formalized in a liquidating agreement. Flow-down provisions also impose prime contract obligations the subcontractor may never have read.
Frequently Confused with
Related terms
Frequently asked questions
How do subcontractors reach the owner?
What do flow-down provisions do?
