§ 37-16-3 - Application to subcontracts.
SECTION 37-16-3
§ 37-16-3 Application to subcontracts.– When a contract described in § 37-16-2 is in effect and any party theretohas entered into a subcontract to perform part of the work and/or furnish anymaterials in connection with the work described in the contract and the termsof the subcontract provide for arbitration of a dispute or claim concerning theperformance or interpretation thereof, or the subcontract, expressly or byreference to the terms of the contract, provides that the parties to thesubcontract shall comply with the arbitration provisions of the contract, thefollowing shall apply when a request is made or an order of court is enteredfor arbitration either under the terms of the contract or subcontract.
(1) When arbitration under the contract may adversely affectthe interest of a party thereto because of the effect of an award of thearbitrator or arbitrators upon the performance or interpretation of the termsof a subcontract to which he or she is also a party, he or she may require anyother party or all other parties to the subcontract to become a party orparties to the arbitration.
(2) When a party to a subcontract makes a demand or an orderof court is entered for arbitration under the terms of the subcontract whichcomply with the provision of this chapter, any party thereto who is also aparty to the contract and whose rights under the contract may be adverselyaffected by the effect of an award of the arbitrator or arbitrators upon theperformance or interpretation of the contract may require any other party tothe contract to become a party to the arbitration.
(3) When a party to a contract or to a subcontract is made aparty to arbitration by virtue of the provisions of this section, he or sheshall have all the rights of a party to arbitration as provided in this chapterexcept the appointment of an arbitrator. Provided, however, he or she mayobject to the arbitrators appointed by the parties in which event a singlearbitrator shall be appointed as provided in § 37-16-2 in the petition ofeither of the original parties to arbitration. The award of the arbitrator orarbitrators shall be valid and shall be binding on him or her to the extentthat it affects the performance or interpretation of the contract and/orsubcontract to which he or she is a party. The award of the arbitrator orarbitrators may be enforced, modified, or vacated as this chapter provides anaward made in an arbitration of a contract described in § 37-16-2 may beenforced, modified, or vacated.