Contractor and Subcontractor CSC401 - Nielsen Enviro 2025

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Unlike prime contractors, subcontractors do not work directly with the government, but instead work for other contractors. This allows contractors that are not prepared to work directly with a federal agency to still participate in Federal procurements.
First, owners should make sure they have key provisions in their contracts with general contractors, including: Lien Waivers with Every Progress Payment. Retainage. Proof of Timely Payment. Contacting Subcontractors.
The main difference lies in who isemploying the person. If a worker is employed by a company directly, they are an independent contractor. If the worker is hired to perform a specific task for a general contractor, they are a subcontractor.
Below are five steps that should be taken when a contractor refuses to pay a subcontractor. Step 1: Review The Contract. Step 2: Communicate With The Contractor. Step 3: Send A Formal Notice. Step 4: File A Mechanics Lien. Step 5: Pursue Legal Action.
There are several ways home builders can pay subcontractors for completed work: Cash. Check. Digital or e-check. ACH, credit or debit.
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Most insurance policies do not cover subcontractors that you may hire during your business. Before you hire a subcontractor, make sure you ask for proof of insurance. You should also read your own insurance policies thoroughly to see who is covered and not.
Calculating a good rate for a subcontractor should start with the basics: labor plus materials. Then, profit is typically between three and five percent of the project total.

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