Can a subcontractor persue payment from a customer if the contractor never paid?
A subcontractor is a person who performs work under a contract with a general contractor, rather than the employer who hired the general contractor. Strictly speaking, “subcontracting” is practiced only by a contractor, namely an individual or a company working for another entity under a contractual agreement. If the contractor then hires out some of the work to yet another organization, it is said to have subcontracted the work out. Subcontracting is most common in the construction industry: builders often subcontract plumbing, electrical work, dry walling, painting, and other tasks. But many other sectors engage in contract work as well, most notably government contractors of all kinds. In recent times the term has come to be used in a more general sense to refer to any kind of work contracted or “farmed” out. Outsourcing tasks and functions has become a common tactic used to lower costs. Companies that operate on their own behalf selling goods and services to the public may also eng
Related Questions
- If a Contractor does not utilize VSC, how should the payment of IFF be identified if they are paying via check or other electronic submission?
- How will a contractor know if a subcontractor with gross payment status has it withdrawn at a later date? Will the contractor be protected?
- What happens if a contractor has paid a subcontractor in the current or previous two tax years, but not for construction operations?
