what is sub contrating

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Subcontracting is a type of job contract that seeks to outsource certain types of work to other companies. This is a step down from general contracting, which is a contract overseeing a much broader project in many cases. It's typically done when the general contractor does not have the time or skills to perform certain tasks.

When a building is being constructed, subcontracting becomes a major deal. A general contractor may take care of a number of tasks, including the brick-and-mortar construction, but look to others for specialized tasks, especially things like plumbing and electrical work. These disciplines are nearly always subcontracted out.

Larger contractors may be able to handle the plumbing and electrical work as well, but this is rare, not only because of the expertise involved, but the desire to focus primarily in one area. If a contractor has too many disciplines, the thought may be that it is not clearly focusing its efforts on quality in any particular area.

In some cases, a general contractor may only be used as the construction manager or supervisor. In that case, subcontracting accounts for all of the physical work done on the premises. The general contractor's only responsibility is to approve the contacts, keep the project within budget, and inspect the work.

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What is sub-contracting?

A sub-contractor is a party which agrees to perform part or all of the obligations of another party (main contractor) under a separate contract (master contract) with the ultimate employer (employer).

The sub-contractor will usually be engaged by a main contractor to perform a specific task as part of the master contract.

Why sub-contract?

Main contractors usually sub-contract obligations because they:

• require additional resources: for instance if they undertake a particularly big job, such as a multi-site construction project;
• are responsible for making the professional appointments: for instance the architect, structural engineer, mechanical & electrical engineer and project manager;
• require additional specialist advice or expertise: more specialised consultants include archaeological consultants, traffic management consultants and surveyors;
• are required by law to appoint them: for instance a CDM co-ordinator in relation to health and safety.