What is a "subcontract"?

A "subcontract" refers specifically to an agreement in which a primary contractor engages a third party to perform a portion of the work outlined in a main contract. This arrangement allows the main contractor to delegate specific tasks, often to vendors or specialists, while maintaining overall responsibility for the project. This is crucial in larger contracts where specialized skills may be required for certain tasks or where a contractor may not have the capacity to handle every aspect of the work themselves.

Subcontracting is a common practice in various industries, including construction and manufacturing, enabling primary contractors to manage their resources efficiently and deliver projects effectively. The use of subcontracts helps ensure that specific aspects of a project can be handled by those with the appropriate expertise and experience, contributing to the successful completion of the overall contract.