Broad Arbitration Clause Flowed Down to Subcontractor Requiring it to Arbitrate Claim against Prime Even though not in Dispute with Owner

 Broad Arbitration Clause Flowed Down to Subcontractor Requiring it to Arbitrate Claim against Prime Even though not in Dispute with Owner

(via ConstructionRisk, LLC.)

Parties to a construction subcontract disagreed over whether their dispute fit within the scope of the arbitration provision in the subcontract.  Trial court denied a motion to compel arbitration.  Appellate court reversed, holding that the arbitration provision in the Prime Contract flowed down to the dispute under the subcontract even though the project owner was not directly involved in the dispute.  Because the Owner could have to pay more for the change orders in dispute on the subcontract level, the court found the dispute had to be arbitrated.   SR Construction, Inc. v Peek Brothers Construction, Inc., 510 P.3d 794 (Nevada 2022).

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