Back-to-back subcontract

When using a sub-subcontractor, the prime contractor may want to have a back-to-back subcontract in place in order to minimize its risk. By having a back-to-back subcontract, the prime contractor can ensure that it will still be paid even if the sub-subcontractor does not pay the sub-contractor. Additionally, the back-to-back subcontract will minimize the prime contractor's liability as the sub-subcontractor will be performing the work and will be liable for any damages.