Being A Tier One Subcontractor Has Benefits

Being A Tier One Subcontractor Has Benefits

Have you ever been screwed out of money on a project? You’ve completed the work and you get to that final payment and your jaw drop when you see the payment amount? 

Yeah, I’ve experienced that too! Which is why I’m sharing with you here the tiers of being a subcontractor, the benefits, and where you should strive to be on the tier ladder.

Here are the tier’s and what the mean:

  • Tier 1 - hired by and work for the prime contractor that works directly with the customer, government agency.
  • Tier 2 - hired by tier 1 contractor
  • Tier 3 - hired by tier 2 contractor

You could be further down the ladder, but you get the point.

Tier 1 - is the subcontractor of the prime
Tier 2 - is the subcontractor of the tier 1 contractor

The benefit of being a tier 1 or tier 2 contractor is that you can file claim against primes bond if you run into payment issues.

Tier 1 or tier 2 is a great place to be, but hey start where you’re at and climb from there. 

Knowing is half the battle!


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