Subcontractor

A subcontractor is a person or <a href="/facts/Business/For1e8Nh">business</a> which undertakes to perform part or all of the obligations of another's <a href="/facts/Contract/SkqyGj6S">contract</a>, and a subcontract is a contract which assigns part of an existing contract to a subcontractor.
A <a href="/facts/General_contractor/J1hJ8P93">general contractor</a>, prime contractor or main contractor may hire subcontractors to perform specific tasks as part of an overall <a href="/facts/Project/7pXnTsmF">project</a> to reduce <a href="/facts/Cost/V1GX4vhw">costs</a> or to mitigate <a href="/facts/Project/7pXnTsmF">project</a> risks. In employing subcontractors, the general contractor hopes to receive the same or better service than the general contractor could have provided by itself, at lower overall risk.
The <a href="/facts/European_Union/6GYcR8qM">European Union</a> has recognised the need to make provision for sub-contracting in its <a href="/facts/Government_procurement_in_the_European_Union/tkEnYEC7">rules on public procurement</a>, as arrangements for sub-contracting can support the EU's drive to involve more <a href="/facts/Small_and_medium-sized_enterprises/86CC7BvV">small and medium-sized undertakings</a> in the provision of goods and services for the <a href="/facts/Public_sector/bV8gdzPu">public sector</a>.

Subcontractor open-in-new

Subcontractor