Prime Contractor Responsibility For Subcontractor
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How to fill out Wisconsin Prime Contractor Or Subcontractor Response To Request For Information By Supplier - Corporation?
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FAQ
The limitations on subcontracting rules generally require that small business prime contractors self-perform 50% of supply and service contracts awarded to them, with lower self-performance percentages for different kinds of construction contracts.
A prime contractor is the primary contractor on a project. This individual or firm is responsible for the entire project. It must complete the project on time and under budget. A subcontractor is hired by the prime contractor or project owner to complete a certain task.
Generally, prospective prime contractors are responsible for determining the responsibility of their prospective subcontractors (but see FAR 9.405 and 9.405-2 regarding debarred, ineligible, or suspended firms).
As such, the prime contractor cannot subcontract more than $6,800,000 to non-similarly situated entities, and the prime and/or similarly situated entities must perform at least $1,200,000.
Subcontractors have to comply with the terms of the contract as well. They are held accountable for their work by the contractor and the customer. Punctuality and minimal time off is essential. Frequent communication between the subcontractor, general contractor and the customer helps to avoid problems down the road.
