Subcontractors Package - Massachusetts 2025

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There are three universally recognised types of sub-contractors in the construction industry. These are domestic subcontractors, nominated subcontractors and named subcontractors. However, there exists a thin distinguishing line between the named and the nominated sub-contractor.
When you are looking at supply chain procurement, there are three types of subcontractor: Domestic Subcontractors. Nominated Subcontractors. Named Subcontractors.
Major subcontractor means a subcontractor that is awarded a subcontract that equals or exceeds (i) Both the certified cost or pricing data threshold and 10 percent of the value of the contract under which the subcontract is awarded; or. (ii) $55 million.
A subcontract in the realm of construction is essentially an agreement in which a main or primary contractor hires another party, known as the subcontractor, to perform a specific construction-related task (or set of tasks) within the broader project.
The subcontractors hired by you, the general contractor, are called second-tier contractors. Its not uncommon to have your subcontractors hire additional companies to complete some tasks. Those companies are referred to as third-tier subcontractors.
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All contractors, partnerships, and corporations that solicit, bid on, or perform residential contracting as a contractor or subcontractor on an existing one to four unit owner occupied residential property in Massachusetts must be registered as a Home Improvement Contractor (HIC).
Generally, the general contractor (GC) must pay each subcontractor (sub) as soon as he receives any payment from the awarding authority for work or materials the sub has already provided. Within 65 days after the sub has completed all his work on the project, he is due the entire balance (minus any retainage).

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