Flow-Down Clause

A contractual provision that requires subcontractors to accept the same terms, conditions, and obligations that the general contractor has agreed to with the project owner. In tower construction, flow-down clauses push insurance requirements, indemnification obligations, safety standards, and liquidated damages exposure from the carrier down through the GC to every sub-tier contractor. Subcontractors must review flow-down language carefully because it may impose obligations their insurance program cannot support.