A subcontractor sued a property owner for payment after completing dirt work and infrastructure on an apartment project in Oklahoma. The owner tried to avoid arbitration, but the court enforced an arbitration clause that flowed down from the general contractor's contract with the owner to the subcontractor's agreement. The subcontractor won the arbitration award, and the court upheld it, meaning the owner had to pay despite trying to escape the arbitration process.
Arbitration clauses in general contractor agreements can bind the owner to arbitrate subcontractor disputes if the subcontract explicitly references the same arbitration terms.
Make sure your subcontract clearly states it incorporates the general contractor's arbitration clause—vague language may not protect you if disputes arise.
If you're a subcontractor, arbitration can be faster and cheaper than court litigation, but only if the clause is properly drafted and flows down from the prime contract.