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When all is said and done, hiring a subcontractor is about 20 to 30 percent more cost effective than hiring full-time additional staff.
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.
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.
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.
The pros of subcontracting In many industries, subcontractors can earn a higher hourly rate than if they were working as employees. Subcontracting also means working on a greater variety of projects, which can be a great way for a contractor to rack up a broad skill set.
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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.
Businesses using subcontractors can take on projects that are much larger than those they can handle on their own. They earn a profit on the parts of the project handled by subcontractors and can greatly grow their overall revenues.
A worker or small company usually signs a subcontract with a larger company. As a verb, subcontract means to hire a person or company to complete part of a job. An example might be a construction company that's been employed to build a house deciding to subcontract all the plumbing and electrical work out.
Disadvantages of contracting and subcontracting If you use a contractor that then uses a subcontractor, you have no direct control over the quality of subcontractors' work. Contractors and/or subcontractors may not appreciate your business culture and may lack the motivation and commitment of your own staff.
When your business needs some extra hands on a large project, hiring subcontractors is often much more cost effective than bringing on new, full-time employees. It also helps avoid risk by hiring a reliable and safe firm with substantial niche experience.

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