§ 37-16-3. Application to subcontracts.
When a contract described in § 37-16-2 is in effect and any party thereto has entered into a subcontract to perform part
of the work and/or furnish any materials in connection with the work described in
the contract and the terms of the subcontract provide for arbitration of a dispute
or claim concerning the performance or interpretation thereof, or the subcontract,
expressly or by reference to the terms of the contract, provides that the parties
to the subcontract shall comply with the arbitration provisions of the contract, the
following shall apply when a request is made or an order of court is entered for
Free access — add to your briefcase to read the full text and ask questions with AI
§ 37-16-3. Application to subcontracts.
When a contract described in § 37-16-2 is in effect and any party thereto has entered into a subcontract to perform part
of the work and/or furnish any materials in connection with the work described in
the contract and the terms of the subcontract provide for arbitration of a dispute
or claim concerning the performance or interpretation thereof, or the subcontract,
expressly or by reference to the terms of the contract, provides that the parties
to the subcontract shall comply with the arbitration provisions of the contract, the
following shall apply when a request is made or an order of court is entered for arbitration
either under the terms of the contract or subcontract.
(1) When arbitration under the contract may adversely affect the interest of a party thereto
because of the effect of an award of the arbitrator or arbitrators upon the performance
or interpretation of the terms of a subcontract to which he or she is also a party,
he or she may require any other party or all other parties to the subcontract to become
a party or parties to the arbitration.
(2) When a party to a subcontract makes a demand or an order of court is entered for arbitration
under the terms of the subcontract which comply with the provision of this chapter,
any party thereto who is also a party to the contract and whose rights under the contract
may be adversely affected by the effect of an award of the arbitrator or arbitrators
upon the performance or interpretation of the contract may require any other party
to the contract to become a party to the arbitration.
(3) When a party to a contract or to a subcontract is made a party to arbitration by virtue
of the provisions of this section, he or she shall have all the rights of a party
to arbitration as provided in this chapter except the appointment of an arbitrator.
Provided, however, he or she may object to the arbitrators appointed by the parties
in which event a single arbitrator shall be appointed as provided in § 37-16-2 in the petition of either of the original parties to arbitration. The award of the
arbitrator or arbitrators shall be valid and shall be binding on him or her to the
extent that it affects the performance or interpretation of the contract and/or subcontract
to which he or she is a party. The award of the arbitrator or arbitrators may be enforced,
modified, or vacated as this chapter provides an award made in an arbitration of a
contract described in § 37-16-2 may be enforced, modified, or vacated.