Flow Down Clause Law and Legal Definition

A flow down clause is a contract provision by which the parties incorporate the terms of the general contract between the owner and the general contractor into the lower tier agreement. It may also be referred to as a pass-through or conduit clause. They are most common in construction contracts. Such provisions state that the subcontractor is bound to the contractor in the same manner as the contractor is bound to the owner in the prime contract. Flow-down provisions help to ensure that the subcontractor's obligations to the contractor mirror the contractor's obligations to the owner.