Subcontractors Package - Arizona 2025

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If a subcontractor or material supplier has performed in ance with the provisions of a construction contract, the contractor shall pay to its subcontractors or material suppliers and each subcontractor shall pay to its subcontractors or material suppliers, within seven days of receipt by the contractor or
For example, a caterer specialising in cupcakes may subcontract for a wedding event, creating branded cupcakes for companies involved in the event to advertise their services.
Hiring subcontractors allows your business more flexibility than if you were to hire new, permanent employees. Rather than bringing them on for long term work, you hire the contractors to work on a few short term projects and then part ways. Be forewarned, sometimes they turn into a lifetime business relationship.
Individual subcontracting plan means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offerors planned subcontracting in support of the specific contract, except that indirect costs incurred for common or joint
Contractors packages are specifically tailored to provide necessary coverage for your business. This typically provides blanket additional insured, aggregate per project, installation floater, builders risk, and other specialized coverage for contractors.
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Taxable Contracting Activities All contractors are considered to be prime contractors and must have a transaction privilege license. This includes general contractors, subcontractors, and specialty contractors.
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.
Most Construction contractors (both primes and subs) must be licensed with the Arizona Registrar of Contractors; some exemptions apply. To become a licensed contractor, you must submit an application showing you have passed one or more written exams, met appropriate experience requirements, and have sufficient bonding.

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