What are the rules for subcontracting under a government contract?

Subcontracting is when a contractor (the primary contractor) hires another contractor (the subcontractor) to help complete all or a part of the contracted work or services. In New Hampshire, the rules for subcontracting under a government contract fall under the Public Works Contractor Licensing Law. In most cases, the primary contractor must have a contractor’s license before they can legally subcontract out any portion of the contract. A contractor’s license can only be obtained through the New Hampshire Department of Labor. A contractor must be licensed for the type of work they are doing in order to be eligible to subcontract that particular type of work. The subcontractor and primary contractor must enter into an agreement before beginning any work. This agreement is known as the subcontractor’s agreement and it must explicitly describe the services the subcontractor is to provide, the amount of compensation the subcontractor will receive, and any other details associated with the work. The primary contractor is also responsible for ensuring that the subcontractor has the required certifications, licenses, and qualifications to complete the work. The primary contractor should also ensure that the subcontractor is covered under the same insurance and bonding requirements applicable to the primary contractor. Finally, the primary contractor is responsible for monitoring the subcontractor’s performance and ensuring that the subcontractor understands and follows the terms of the subcontract. If the subcontractor fails to do so, the primary contractor may terminate the subcontractor’s agreement and seek a new subcontractor.

What are the rules for subcontracting under a government contract?

Related FAQs

Related Blog Posts