subcontract

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subcontract

the contract between a party and a main contractor who himself is contracted to another, often called the employer, albeit the contract is not one of employment in the contemporary colloquial sense. Subcontracts are very commonly found in building contracts. The employer contracts with the main contractor, who himself contracts for work to be done, like windows or floors, by others who can do so better or cheaper. A subcontractor maybe nominated by the employer. There are effectively and legally only two contracts, the subcontractor not being contractually bound to the employer. However, it is not uncommon for the employer to seek some form of contractual comfort from the subcontractor if his involvement is critical to the project. Standard forms govern many of the relationships between the parties. In one case it was held that a subcontractor could be held liable to an employer in tort or delict where the relationship was proximate, indeed, very like contract, a decision that, although doubted to the point of extinction in England, has not been overruled and has been followed elsewhere in the Commonwealth.
References in periodicals archive ?
Categories: October 29, 2010, Competition, Conflict of interests, Contract administration, Contract oversight, Contract performance, Decision making, Defense industry, Defense procurement, Department of Defense contractors, Prime contractors, Prime contracts, Prioritizing, Schedule slippages, Subcontractors, Subcontracts, Systems integration, Weapons systems
Small business groups and their advocates in Congress have warned that if Energy was permitted to count subcontracts as primes, other departments would want the same treatment, reducing prime contract opportunities for small businesses.
Ultimately, MW Erectors sued Niederhauser for over $1.3 million due on the two subcontracts. It was not disputed that MW Erectors performed the work under these subcontracts.
Integrated Baseline Reviews (IBRs) shall be required whenever EVM (compliance with ANSI/EIA-748) is required, that is, for cost or incentive contracts, subcontracts, intra-government work agreements, and other agreements valued at or greater than $20 million in then-year dollars.
Having confirmation in writing of subcontract quotations is important because the terms of subcontracts are usually more complex than contracts for the purchase of materials.
The risk-shifting provisions of the newly published subcontracts were an immediate cause of concern to ASA members because of the broad impact that model subcontracts can have in the industry.
Within the management rights provision of the predecessor contract was a clause that limited the employer's right to subcontract to only newly created positions.
Item XVIII, "Sexual Harassment Fact Sheet," says, "Each contractor must include this fact sheet in all subcontracts." Another virus: Each subcontractor must include it in all of his subcontracts and purchase orders, and require those subcontractors and vendors to include it in theirs.
Finally, mandatory obligations could be enacted to make it obligatory for large enterprises, particularly those in the public sector, to subcontract part of their work out to small industrial enterprises.
Both the general contract and the subcontract incorporated the American Institute of Architects' General Conditions (1976 ed.) which contained Article 1.1.2 which states, "nothing contained in the Contract Documents shall create any contractual relationship between the Owner of the Architect and any Subcontractor or Subsubcontractor."
The subcontracted material and parts become part of a value-added chain.
Categories: Bid Protest, American Recovery and Reinvestment Act (ARRA), Equipment contracts, FedBizOpps notice, Fixed price contracts, Prime contractors, Private sector procurement, Procurement evaluation, Radar equipment, Solicitation specifications, Source selection, Subcontract award protests, Subcontractors, Subcontracts