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Prime's Decision Became Binding On Sub Claims Administration; Arbitration

Monday, January 03, 2005 03:48 pm

Prime's Decision Became Binding On Sub Claims Administration; Arbitration

A Georgia court has ruled that under the dispute resolution clause of a subcontract, the prime contractor's decision became final and binding when the subcontractor failed to make a timely demand for arbitration.

Choate Construction Co. was the prime contractor for construction of a high-rise building in Cobb County. Choate subcontracted the drywall work to Holt & Holt, Inc. The subcontract stated that any claim or dispute would be promptly decided by Choate.

The dispute resolution clause went on to say that if Holt wished to appeal Choate's decision on a matter, Holt was required to demand arbitration within 30 days of [...]

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