1801Subletting of Contract

The Contractor must not sublet, sell, transfer, delegate, or assign the Contract or any portion of the Contract without the Engineer’s consent. The Contractor may, with the Engineer’s consent, sublet a portion of the Contract as long as the Contractor self-performs Work amounting to at least 30 percent of the total original Contract Amount. On Contracts with Disadvantaged Business Enterprise (DBE), Targeted Group Business (TGB) or Veteran-Owned Small Business (VET) established goals, or any combination thereof, the Contractor's organization shall perform Work amounting to not less than 30 percent of the total original Contract Amount. The Department will deduct specialty items from the total original Contract Amount before calculating the amount of Work that the Contractor shall perform. No Subcontractor is permitted to further sublet its portion of the Work without the Engineer’s consent. If it has obtained the Engineer’s consent, a first tier Subcontractor may sublet up to 50 percent of that Subcontractor’s work. The Department will not allow second tier Subcontractors to sublet any portion of the Work. The Contractor must request consent to sublet portions of the Contract using the online system designated by the Department, unless the Department requires the Contractor to use a paper “Request to Sublet” form provided by the Department. The Contractor must file this request at least 10 Business Days before the Subcontractor intends to start Work. If requested by the Department, the Contractor must provide one signed copy of each subcontract. The Contractor may omit subcontract prices when providing the re quired copy of a subcontract.

The Department will consider Work subcontracted without the Engineer’s consent and subcontracted Work exceeding the percentages specified in this section as unauthorized W ork in accordance with 1512, “Unacceptable and Unauthorized Work.” The Engineer’s consent does not constitute the Engineer’s or Department’s endorsement of the subcontract, the Subcontractor, or the Subcontractor’s ability to complete the Work in a satisfactory manner. The Engineer’s consent to sublet a portion of the Work does not relieve the Contractor of: (1) any responsibility to complete the Contract; or (2) any other obligations or liability under the Contract and the Contractor’s Contract Bonds. The Engineer will conduct all transactions with the Contractor. The Engineer will recognize Subcontractors only in the capacity of employees or workers, subject to the Contract requirements regarding character and competence. The subcontract does not create a contractual re lationship between the Department and the Subcontractor; or convey to the Subcontractor any rights against the Department. The Contractor must ensure that the subcontracts at least contain the following:

For Projects in excess of $50,000, the Contractor may sublet Work only to Subcontractors that meet the definition of “responsible Contractor” in Minnesota Statutes, section 16C.285, Subd. 3. The Contractor shall obtain verifications of compliance with Minnesota Statutes, section 16C.285 from Subcontractors using a form provided by the Department. The Contractor must provide such verifications to the Department upon the Department’s request.