The above is a short tour of the commented due diligence checklist for acquiring a federal contractor, which you can find here: www.kaufcan.com/news/articles/annotated-due-diligence-checklist-acquisition-of-a-federal-contractor/. I hope you enjoy the whole visit if the right opportunity arises. 3. Does the subcontractor have a whistleblower-employee hotline? Depending on the government agency, a contractor may be required to provide information about its subcontractors during the bidding process. Alternatively, a contractor may be asked to provide information about subcontractors when they are engaged. Either way, collecting information about subcontractors not only ensures compliance and provides the information often needed during the bidding process, but can also help your company learn about potential business partners. 5. Was the subcontractor mentioned negatively in the report? (You can find out with an Internet search.) If so, how did your management react when asked about coverage? Home / Resources / Articles / Subcontractor Due Diligence: 8 Questions They Should Ask Of course, many government contractors rely on subcontractors to deliver goods or services in order to fulfill a contract. The case described in the right panel concerns a main contractor, but the same type of system could be carried out at the subcontractor level. 1. Have any potential subcontractors been involved in litigation or enforcement by the government in the past five years? Have they been cited for violations of federal, state, or local laws or regulations? If so, how have the violations been remedied?2. Does your subcontractor have an employee code of conduct? Do they require all employees to sign the code? If you follow these steps, you should be able to do your due diligence.
If everything seems complicated and difficult, it`s because it is. Why don`t we let it be done for you? Reliable Commercial has over 35 years of experience in construction, reconstruction and more on various construction sites. We are happy to take care of your due diligence for you. Just like in your business, you need your construction site and the people who work there to be reliable. Send us a message today to get started. An appropriate due diligence checklist used when reviewing the acquisition of a federal contractor includes all the elements of a traditional M&A due diligence checklist, i.e., checkboxes after reviewing real estate, labour, taxation, environment, intellectual property and litigation, etc. But given the highly regulated environment in which federal contractors work (whether for the DOD or a non-defense agency), the checklist should also include a robust list of industry-specific issues. Check out our annotated due diligence checklist, which focuses only on issues clearly associated with a merger and acquisition transaction with a federal contractor: www. kaufcan.com/news/articles/annotated-due-diligence-checklist-acquisition-of-a-federal-contractor/. One-year ban (contactless) – „Agents“ cannot appear on behalf of the contractor or communicate with employees of their former agency.
If you don`t want to be part of this statistic, do your due diligence. If you need help with due diligence, the contract specialist can advise you. 8. Does your subcontractor have the appropriate insurance coverage? Duarte and Paik then did the work while giving the impression that it had been done by Kauai`s contractor. The two men received most of the revenue paid by the government for the work. While this federal contractor add-on greatly expands the typical M&A checklist, special emphasis can be placed on the following points: When looking for a new location to build on, it`s important to make everything as perfect as possible. The last thing a business owner wants is to find out that there is a big problem with the location stopping construction. A major shutdown can be costly and delay the construction schedule by several months. It`s not ideal to have a group of entrepreneurs sitting and paid without being able to work either. We`ve put together a list of things you should check out on each website before you start creating. In addition, there are legal requirements for government employment for federal employees that should be considered in your hiring decisions as well as those of your subcontractors.
Obviously, everything mentioned above is a lot to consider. To simplify, there are five basic steps in due diligence for a site: Due diligence refers to a construction contract. In this case, a commercial contractor must carry out the work with care and reasonable effort. The objective of this contract is to minimize risks to people and property while ensuring that the project is completed in a timely and cost-effective manner. A construction contract can impose strict obligations that a contractor must meet. Ask the following questions during contractors` due diligence: According to court documents and the FBI, Paik conspired with James Alan Duarte to hide his involvement in a contract. Duarte agreed to request and carry out work under two subcontracts while concealing paik`s involvement. .