In relation to subcontracting, the contract provisions usually require the supplier to:
• provide full details of any subcontractors it proposes to engage
• inform relevant subcontractors that the subcontractor's participation in fulfilling a contract may be publicly disclosed and obtain the subcontractor's agreement to the public disclosure
• seek approval from the procuring entity before engaging subcontractors
• acknowledge that the supplier retains responsibility for ensuring that subcontractors perform all their obligations
• flow down certain obligations to the subcontractor from the supplier's contract
• retain responsibility for ensuring that subcontractors comply with all relevant Australian Government policies.
When managing a contract, it is vital that you are familiar with the specific provisions in your contract that relate to subcontracting.
You should establish systems and processes for determining that the supplier has complied with the obligations relating to subcontracting that are contained in the contract.