What is the name of the clause stating a Subcontractor is bound to the Contractor similarly to how the Contractor is bound to the Owner?

The term that describes a clause stating a Subcontractor is bound to the Contractor in a manner similar to the Contractor's obligations to the Owner is referred to as the "Flow down" clause. This clause essentially ensures that certain provisions of the main contract between the Contractor and the Owner are passed down to the Subcontractor.

This means that the Subcontractor must adhere to the same terms and conditions that the Contractor is obligated to follow with the Owner. Such provisions may include adherence to timelines, quality standards, and scope of work, among others. The Flow down clause creates a streamlined structure of accountability and responsibility throughout the construction project, facilitating communication and ensuring compliance at all levels of the contractual hierarchy.

The other options refer to different legal concepts. Indemnity typically involves one party agreeing to compensate another for certain losses or damages. Hold harmless agreements provide protection against liability claims, allowing one party to not hold another responsible for certain liabilities. Priority of payments pertains to the order in which payments are made to various parties involved in a contract, without necessarily establishing a binding relationship like that of a Flow down clause. Thus, the correct terminology to describe the relationship where obligations are transferred similarly is best captured by the Flow down clause.