Centex, a general contractor, submitted pass-through claims on behalf of its subcontractors to arbitration with a church client. The church tried to overturn the arbitrator's award, claiming the arbitrator exceeded his authority by deciding these claims. The Texas Court of Appeals ruled that once parties agree to arbitration and submit an issue to an arbitrator, they cannot later claim the arbitrator overstepped. The arbitrator's award was confirmed and enforced.
If your GC includes you in an arbitration clause and submits your claim to arbitration, the other party cannot later challenge the arbitrator's decision by claiming it was outside the arbitrator's authority.
Broad arbitration clauses that cover disputes 'arising out of or related to the contract' will be interpreted to include pass-through claims and change order disputes.
Make sure your subcontract flows down the same arbitration language as the prime contract to protect your claims if disputes arise.