Subcontracting

In relation to subcontracting, contract clauses should provide that the contractor retains responsibility for ensuring that subcontractors perform their obligations. 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.

Contract clauses should provide that the contractor retains responsibility for ensuring that subcontractors perform their obligations.