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What does being a subcontractor mean?

Primary tabs. A subcontractor is a person or entity that has been awarded by the general contractor the performance of part of the work or services of an existing contract entered between the general contractor and the (original) contracting party.

What is the purpose of subcontractors?

Key Takeaways. Subcontracting refers to the practice of bringing in an outside company or individual to perform specific parts of a contract or project. In most cases, a company subcontracts another business to perform a task that cannot be handled internally.

Is a subcontractor the same as a contractor?

Typically, a contractor works under a contractual agreement to provide services, labor or materials to complete a project. Subcontractors are businesses or individuals that carry out work for a contractor as part of the larger contracted project.

What does it mean if you are a subcontractor?

A subcontractor is a business or a person that undertakes work for a company as part of a larger project. In undertaking a contract from a contractor, subcontractors carry out work that the contractor can't perform, but remains responsible for. A subcontractor provides his or her services under a contract for service.

Is subcontractor a good job?

Choosing to be a subcontractor can mean a reliable source of work without seeking new clients or being employed by a company. However, it can come with some significant drawbacks \u2014 pay may be less reliable, taxes may be more complicated and you'll probably have less control over who you work with on a day-to-day basis.

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