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Jan. 2, 2013: New Standard Contract for Federal Subcontractors to Make it Easier to Perform Federal Work

January 2, 2013
WASHINGTON — A newly revised standard subcontract for federal work is expected to make it easier for general contractors and subcontractors to perform federal work. The updated ConsensusDocs 752 Federal Subcontract Agreement is designed to address recent changes in federal contracting such as requirements for certifying small business entities and new reporting of executive compensation requirements.

“We are providing an essential tool for any general contractor working in the federal market. In 2012, this standard subcontract was completely updated with input from all segments of the industry to remain current and relevant to today’s federal construction practice,” said Tom Kelleher, senior partner with Smith, Currie & Hancock LLP and the chair of the ConsensusDocs 752 Federal Subcontract Working Group. He added, “These updates will be especially helpful to general and specialty contractors that may not routinely perform federal government contracts but now seek federal work in a construction market that has significantly changed since 2008.”

The updated agreement is designed to make it easier for contractors to comply with Federal Acquisition Regulations (FAR) as well as federal contracting preferences, Kelleher noted. He added that it includes a special exhibit listing all FAR regulations that apply to the contract. In particular, the exhibit specifically addresses regulations by the U.S. Department of Defense (DOD), which are called DFARs, and General Service Administration (GSA) specific provisions.

One significant new provision now provides for attorneys’ fees if a general contractor withholds payments based on a Miller Act claim that is made in bad faith. Removed from this edition are references to certain federal stimulus funding requirements that do not apply to non-stimulus funded projects. The subcontract continues to address requirements and conform to federal practices in regard to E-Verify and immigration status.

Other federal subcontract flowdown requirements now addressed include notification of employee rights under the National Labor Relations Act (NLRA), and contractor’s prohibition on text messaging.

ConsensusDocs are consensus standard contracts written and endorsed by a coalition of 38 design and construction industry associations.

For more information, visit www.ConsensusDocs.org.

Publication date: 12/31/2012

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