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Subcontractors are hired by the project's general contractor, who continues to have overall responsibility for project completion and execution within its stipulated parameters and deadlines. This can create a subcontractor risk for compliance.
You (and any subcontractors) must submit a Contractor Affidavit (Form IC134) to the Minnesota Department of Revenue to verify you have met state withholding requirements. Submit a Contractor Affidavit when you complete work on a government construction project, regardless of the projects dollar amount.
How to find good subcontractors? Ask around. Ask friends in the construction industry. Local social media groups, community bulletins, or message boards. Drive-by. Current or past subs. Specialty suppliers. Online search.
When you are looking at supply chain procurement, there are three types of subcontractor: Domestic Subcontractors. Nominated Subcontractors. Named Subcontractors.
Hiring a Contractor Checklist and Tips Get Multiple Estimates. ... Hire Local, Licensed Contractors Whenever Possible. ... Check Their Past Work. ... Take Your Time Making a Sound Decision. ... Check Their Insurance and Bonding. ... Get Everything in Writing. ... Understand Your Right to Cancel. ... Don't Pay Up-Front.
Each contract of a municipality must require the prime contractor to pay any subcontractor within ten days of the prime contractor's receipt of payment from the municipality for undisputed services provided by the subcontractor.
Contractors looking to apply for a license will go through Minnesota's Department of Labor and Industry. General contractors will need a residential building license, while subcontractors performing work in more than one of the following trades also require a license: Excavation. Masonry/concrete.
A subcontractor can be appointed to a main contractor in several ways, including through a nomination, naming or domestic subcontracting process. Nominated subcontractors: In this process, the main contractor is responsible for identifying and selecting the subcontractors that will be used on the project.