what is a sub contractor

11 months ago 33
Nature

A subcontractor is a person or business that undertakes to perform part or all of the obligations of anothers contract. They are usually specialists in one specific area of a project and are hired by a main contractor to do a specific job on a larger project. Subcontractors charge for their services and are often freelancers who work for themselves. The primary difference between contractors and subcontractors is who they work with. Contractors work for clients, either corporate or individual, and subcontractors work for contractors. A general contractor, prime contractor, or main contractor may hire subcontractors to perform specific tasks as part of an overall project to reduce costs or to mitigate project 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. Subcontractors report to the contractor, who is ultimately responsible to the client for their work. Therefore, the subcontractor is liable to the contractor, but not directly to the client.