Subcontractor Apprenticeship Programs: Requirements, Costs & How to Get Started
If you're a prime contractor working with subcontractors on IRA-qualifying projects, understanding apprenticeship obligations is critical to staying compliant. This article covers what's required of your subs, how Apprentix can help set up their program, and everything you need to know about cost and timing.
Do Subcontractors Need an Apprenticeship Program?
Yes. If a subcontractor triggers the IRA's Participation requirement, they are legally required to have at least one registered apprentice performing work on that project. If your contract requires them to meet the 15% apprentice labor hour requirement, they must meet that threshold while also satisfying the 1:1 daily apprentice-to-journeyman ratio requirement.
Can a Subcontractor Come Under Our Apprenticeship Program?
From a Department of Labor standpoint, there is no such thing as a subcontractor "going under" your program — each employer is registered individually with the DOL. However, Apprentix has created a solution on our Premium and Enterprise Plans that allows you to sponsor a subcontractor's program setup. You pay a one-time fee and Apprentix builds out the sub's registered apprenticeship program. That sub is then covered specifically for projects where they are working under you.
Because you are the client paying the fee, Apprentix's support for that subcontractor is scoped to the projects they perform for you. Once a project wraps up, the subcontractor is still responsible for continuing to train their registered apprentices until those apprentices complete the full duration of their program or are separated from the company. Apprentix will no longer register new apprentices for that subcontractor after the engagement ends, but our platform remains available to them so they can track apprentice progress through completion.
Which Plan Do I Need to Add a Subcontractor?
You must be on the Premium or Enterprise Plan to add a subcontractor. If you are currently on the Pro Plan, contact our support team and we will send you an invoice to upgrade to whichever plan fits your needs.
How Much Does It Cost to Add a Subcontractor?
Adding a subcontractor is a one-time $6,000 fee. Apprentix bills you as the prime client — not the subcontractor directly. If you choose to pass the cost on to your sub on the backend, that is entirely up to you.
Keep in mind that any apprentices your subcontractor registers count toward your total active apprentice count. For example, if you are on the Premium Plan (up to 20 active apprentices) and your subcontractor registers 2 apprentices, those 2 will occupy 2 of your 20 available spots.
How Do I Add a Subcontractor Under My Plan?
Complete the Subcontractor Request Form. Once submitted, Apprentix will automatically send an email to the subcontractor, copy you on the communication, and kick off the onboarding steps.
How Long Does Subcontractor Onboarding Take?
Subcontractors are automatically placed on our 3-day expedited onboarding track — no expedite fee charged. From the moment your subcontractor schedules their Orientation call with Apprentix, we will send them a Department of Labor form to sign and have their apprentices fully registered with Davis-Bacon certificates in hand within three business days.
Frequently Asked Questions
Are all Apprentix plans eligible to add subcontractors?
No. Only clients on the Premium or Enterprise Plan can add subcontractors. Pro Plan clients must upgrade first.
Who does Apprentix bill for the subcontractor setup?
Apprentix bills you, the prime contractor. You may choose to recover that cost from your sub separately — that arrangement is between you and them.
Do the subcontractor's apprentices count against my apprentice limit?
Yes. Their registered apprentices count toward your total active apprentice seats under your plan.
What happens to the subcontractor's apprentices after our project ends?
The subcontractor must continue training their registered apprentices until each apprentice completes their full program duration or is separated from the company. Apprentix keeps the platform available for tracking, but will not register new apprentices for that sub after the engagement is complete.
How do I start the process of adding a subcontractor?
Fill out the Subcontractor Request Form. Apprentix handles outreach to your sub automatically from there.
Is there an expedite fee for subcontractor onboarding?
No. Subcontractors are placed on the 3-day expedited track at no additional charge — you only pay the one-time $6,000 setup fee.