What is a tier subcontractor?

Tiers. Subcontractors work at a variety of levels. The primary, or general, contractor works directly with the customer. The second-tier contractor is hired by the first-tier contractor to perform specific tasks. A third-tier contractor works with the second-tier contractor.

Is a subcontractor a 3rd party?

SUBCONTRACTORS USUALLY ARE NOT THIRD PARTY BENEFICIARIES OF CONTRACTS BETWEEN GENERAL CONTRACTORS AND OWNERS. By: Robert S. Generally, a person cannot claim benefits under a contract to which he is not a party, unless he can establish that the contracting parties intended him to be a third-party beneficiary.

What is the difference between a first tier subcontractor and a second tier subcontractor?

A first tier subcontractor is an entity that sells directly to the prime whereas as second tier subcontractor sells to the first tier subcontractor.

Do You Know Your second and third tier subcontractors?

However, the second, third and fourth tier sub contractor may not know what the first tier and general contractor signed in their contracts. Many times they don’t ask to see the contracts. So, if you are wanting to take on bigger projects and bid larger contracts it is extremely important to know where you fall in the tiers of the overall project.

Do you need consent for first tier subcontract?

The government only reqires a notice of intent to subcontract and consent to subcontract in regard to first tier subcontracts. The prime can require first tier subcontractors to obtain prime consent before awarding second tier subcontracts.

Can a third tier subcontractor file a lien against funds?

(A) Lien Against Funds. If the third tier subcontractor asserts a lien against funds owed by the general contractor to the first tier subcontractor, then the third tier subcontractor will serve the general contractor with the notice. A lien notice must take the form set forth in the statute governing lien rights.

What are the different levels of subcontracts in a procurement?

Oftentimes, particularly in large procurements, there are multiple levels of subcontracts known as tiers. A first tier subcontractor is an entity that sells directly to the prime whereas as second tier subcontractor sells to the first tier subcontractor.