Litigation & Arbitration,
Construction
Feb. 6, 2023
Subcontractor not bound to arbitrate under incorporation clause
Because the Court did not state that this was an exhaustive list of reasons why a provision contained in another document should not be incorporated, it raises the possibility that there will be more challenges to the enforceability of provisions incorporated by reference.
Garret D. Murai
Partner
Nomos LLP
Garret is the editor of the California Construction Law Blog at www.calconstructionlawblog.com.
Subcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it's the prime contract between the general contractor and the project owner. Subcontractors will sometimes sign subcontracts without reviewing an incorporated document and the result, unfortunately, can sometimes be disastrous.
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