In relation to subcontracting, contract clauses should require the contractor to provide the details of all subcontractors engaged in the procurement and that the contractor retains responsibility for ensuring that subcontractors perform their obligations. In relation to procurements where the Fair Work Principles apply, entities must contractually require contractors to require their subcontractors for the procurement to comply with the Fair Work Principles as far as practicable.
In larger, more complex contracts and contracts of longer duration it is important to include provisions that clearly stipulate that the:
• subcontracted work under the contract does not relieve the prime contractor of its contractual liabilities or obligations;
• prime contractor is responsible for ensuring that subcontractors comply with mandatory government policies; and
• contractor is prohibited from subcontracting all work required under the contract.
The contract provisions may also stipulate that the acquiring entity shall approve any proposed subcontractor prior to final engagement by the contractor.