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In putting together a prequalification form, general contractors aim to understand more about a subcontractors reputation, financial health, and ability to complete projects of a particular size, complexity, location, and duration.
Generally, self-employed individuals are not required to complete Forms I-9 on themselves; therefore, they are not required to use E-Verify.
Each subcontractor should complete Form W-9 before they begin any work. On the form, the subcontractor identifies their business structure type (sole proprietorship, corporation, etc.). Form W-9 also asks for the subcontractors name and Taxpayer Identification Number (TIN).
A subcontractor agreement outlines the business relationship between subcontractors and contractors during a project. It states what work the subcontractor will complete on behalf of the contractor. Ensuring all parties know their responsibilities and obligations is important to any project.
The E-Verify federal contractor rule requires certain federal prime contractors to require their subcontractors to use E-Verify when: The prime contract includes the Federal Acquisition Regulation (FAR) E-Verify clause (PDF) The subcontract is for commercial or noncommercial services or construction.
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Contracts Exempt from the E-Verify Federal Contractor Rule A contract is considered exempt if any one of the following applies: It is for fewer than 120 days. It is valued at or below $150,000. All work is performed outside the United States.

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