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can the sub contractor charge a dollar amount higher than what I charge as the prime

IllinoisPayment Disputes

I have a security company in Illinois. I have a government contract and have WBE percentage. my sub contractor is trying to charge me a higher billing rate than I charge the government on this contract. What are my options

1 reply

Nov 20, 2020

Unless your government contract has language which would be applicable regarding the rates charged by any sub-contractor you hire, which I would doubt, you and your sub-contractor are free to negotiate and then agree upon a rate. From your comment, it appears your rate is capped, so I would be open in your discussions with the sub-contractor as to why you want to negotiate a different rate.

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