(a) ``Contractor'' as including ``subcontractor.'' Except where
otherwise noted or where the term Government prime contractor is used,
the term contractor as used in this part 4 shall be deemed to include a
subcontractor. The term contractor as used in the contract clauses
required by subpart A in any subcontract under a covered contract shall
be deemed to refer to the subcontractor, or, if in a subcontract entered
into by such a subcontractor, shall be deemed to refer to the lower
level subcontractor. (See Sec. 4.1a(f).)
(b) Liability of prime contractor. When a contractor undertakes a
contract subject to the Act, the contractor agrees to assume the
obligation that the Act's labor standards will be observed in furnishing
the required services. This obligation may not be relieved by shifting
all or part of the work to another, and the prime contractor is jointly
and severally liable with any subcontractor for any underpayments on the
part of a subcontractor which would constitute a violation of the prime
contract. The prime contractor is required to include the prescribed
contract clauses (Secs. 4.6--4.7) and applicable wage determination in
all subcontracts. The appropriate enforcement sanctions provided under
the Act may be invoked against both the prime contractor and the
subcontractor in the event of failure to comply with any of the Act's
requirements where appropriate under the circumstances of the case.
