Utah Contractor Practice Exam

In a public works contract, how is a subcontractor perceived by the public agency?

1. An employee of the prime contractor

2. Subcontractor of the prime contractor

3. A subcontractor of the agency

4. An employee of the agency

The correct answer is: An employee of the prime contractor

In the context of public works contracts, a subcontractor is typically viewed as a subcontractor of the prime contractor. This relationship illustrates that subcontractors are engaged through the prime contractor, who holds the primary contract with the public agency. The perception of subcontractors as employees of the prime contractor is not accurate because subcontractors maintain their own business identity and are contracted to perform a specific scope of work. They are not classified as employees of the prime contractor, meaning they do not receive benefits such as health insurance or retirement plans from them. The perception of a subcontractor being directly linked to the public agency or treated as an agency employee is inaccurate as well. The agency is not responsible for the employment aspects of the subcontractor. Understanding this delineation helps clarify the contractual relationships involved in public works projects, ensuring that obligations and liabilities are correctly attributed.