b'BUSINESS TIP A4012017 document.sions of the contract so that none Theenforceabilityofpass- will be rendered meaningless.throughclausesincomplexcon-structionagreementsoftenhingesPass-through best practicesontheperceivedclarityorambi- Belowareafewotherexam-guity to both upstream and down- plesofbestpracticesthatshould streamparties.Inordertoavoidbe considered when reviewing or unintended legal or financial con- drafting pass-through provisions:sequences the critical drafting pro-Negotiatepass-throughtermsat cess should be assisted by profes- thepre-bidstagesothatthe sionals experienced in commercialcosts/benefitsofundertaking law and construction law and withflowed-down obligations may be accessibility to all of the upstreamfactored into bids. and downstream documents.Partiesshouldworkcollabora-tivelytoaddressgapsinrisk-Pass-through interpretation andshifting or risk-sharing and devel-enforceability can vary by state op acceptable levels of risk. The location of the project plays Limit the requests for pass-through asignificantroleinhowpass- revisions to a small group of terms throughlanguagemaybeinter- orissues(andnottotheprime pretedandenforced.Thereforeterms) to increase acceptance. itsimportanttounderstandthe Avoid using general incorporat-nuancesofapplicablestatelawsingbyreferencelanguagethat whendraftingandimplementingcan be misinterpreted to merely pass-through clauses.incorporate prime contract for a For example, in New York, courtslimited purpose. haveheldthatgeneralincorpo-rationclausesinasubcontractDaniel A.DorfmanistheChair canonlybindasubcontractortoof the Construction Law Practice at the scope, quality and manner ofFox, Swibel, Levin & Carroll LLP, a theworktobeperformedbythefull-serviceboutiquebusinesslaw subcontractor. While many statesfirmbasedinChicago,Ill.His take the New York approach, othernationalpracticerepresentsthose states do allow a generalized flowatalllevelsofconstructionand downofobligationsviaincor- design in drafting and negotiating porationclauses.Andstillotherconstructionagreementsandliti-statesconstrueallcontractdocu- gating disputes that arise. A LEEDments,includingtheprimecon- Green Associate, Dorfman also has tract, subcontract and all exhibits,a focus in sustainable building and together in an effort to harmonizerenewable energy. Contact him at and give effect to all of the provi- ddorfman@foxswibel.com. 38TileLetter | December 2019'