Can a subcontractor be a prime contractor?
Subcontractors can exist on a project without a prime contractor present, and a prime contractor can perform a job alone. The terms “prime contractor” and “subcontractor” may not be used during a project, but the respective roles are the same.
What are the prime contractor’s limitations on subcontracting?
As such, the prime contractor cannot subcontract more than $6,800,000 to non-similarly situated entities, and the prime and/or similarly situated entities must perform at least $1,200,000.
What is prime contractor or subcontractor?
Prime contracting Prime contractors work directly with the government. They manage any subcontractors and are responsible for ensuring that the work is completed as defined in the contract. To become a prime contractor, you must first register your business with the System for Award Management (SAM).
What does prime contractor mean in Washington State?
(1) Definitions. As used herein: (a) The term “prime contractor” means a person engaged in the business of performing for consumers, the constructing, repairing, decorating or improving of new or existing buildings or other structures under, upon or above real property, either for the entire work or for a specific portion thereof.
When do you have to pay contractors in Washington State?
If so, the party withholding payment must notify the party; within 8 days if it’s a public entity, or as soon as practicable for any other party. Once the defective work has been remedied, the public entity must make payment within the same 30-day span, and contractors are required to make payment within 8 days after the work has been remedied.
When do prime contractors have to pay their suppliers?
Once the prime contractor receives payment, they are required to pay their subs and suppliers within 10 days. The public entity and any contractor making payments do have the ability to withhold payments if the performance is unsatisfactory, or if the payment request isn’t in the correct form based on the contract terms.
What are the prompt payment laws in Washington State?
Washington’s prompt payment statutes set forth specific timeframes for when general contractors, subcontractors, suppliers, and others involved with a public construction project must be paid. This page provides an overview of these regulations and addresses frequently asked questions related to the Washington prompt payment laws.