Contracts among owners, general contractors and subcontractors will invariably contain provisions detailing the forum and procedures under which their disputes are to be resolved. Of critical importance to the general contractor, of course, will be that these provisions be consistent. Otherwise, it may find itself arbitrating against the owner in in one jurisdiction while litigating its dispute with a subcontractor in court in another. This may result, of course, in significant additional expense and potentially inconsistent results.

Generally, avoidance of this risk is sought by the inclusion of a provision that incorporates the ADR provisions from the principal contract into the subcontract. When preparing such incorporation provisions, however, special care must be taken to assure that they are consistent, or, as reflected in a recent California Court of Appeal case, they may not be enforceable in the way the Contractor intended.

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