How are subcontractors affected by the law?
A subcontractor is a business organization that knowingly provides goods and/or performs services for a contractor or another subcontractor in fulfillment of a contract with a contracting agency. The term “direct,” when applied to a contractor or subcontractor refers to contractual relationship where one business hires another one to work for them, and with payment for the goods or services rendered taking place between the two businesses. The meanings of knowingly and direct apply accordingly to the explanations that follow. Please note the use of the term “knowingly” in the definition. A subcontractor must possess a BRC just like contractors. A contractor using subcontractors must provide copies of the BRC’s of its direct subcontractors and direct suppliers to the contracting agency prior to receiving final payment under the contract. A contractor must also provide to the contracting agency prior to receiving final payment, a list of all indirect subcontractors and suppliers providin
