Subcontractor
From Free net encyclopedia
A subcontractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another's contract.
A subcontractor is hired by a general or prime contractor to perform a specific task as part of the overall project. Whilst the most common concept of a sub-contrcator is in building works and civil engineering, the range of opportunities for sub-contractor is much wider and it is possible that the greatest number now operate in the information technology and information sectors of business.
The incentive to hire subcontractors is either reduce costs or mitigate project risks. In this way the general contractor receives the same or better service than the general contractor could have provided by itself and at lower overall risk. Many subcontractors do work for the same companies rather than different ones. This allows subcontractors to further specialize their skills.
In the United Kingdom economy, the need to respond to a rapidly changing environment and service a diverse infrastructure has needed flexibility and diversity in its sub-contactor community with the majority of sub-contractors now providing spcialised skills to a wide range of companies.