Contractual Flow Downs Definition

In business, a flow down is the transfer of responsibility or requirement from one party to another. In contracting, flow downs are clauses or terms that flow from the prime contractor to lower-tier subcontractors. The purpose of flow downs is to ensure that all parties involved in a project meet the same standards and requirements.

There are three types offlow downs: mandatory, regulatory, and voluntary. Mandatory flow downs are clauses that must be included in lower-tier contracts. Regulatory flow downs are clauses that must be followed by all parties in order to comply with laws and regulations. Voluntary flow downs are clauses that are not required but may be beneficial to the project.

Flow down clauses can cover a wide range of topics, including quality control, safety, insurance, and environmental protection. The specific clauses included in a contract will depend on the nature of the project and the requirements of the contracting parties.