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Subcontracting is a type of work 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. Subcontracting is done when the general contractor does not have the time or skills to perform certain tasks. Subcontracting is also important for manufacturers making a number of products from complex components. Subcontracting offers a number of advantages. First, it allows work on more than one phase of the project to be done at once, often leading to a quicker completion. Second, because subcontractors already have the expertise and equipment to provide the service, it is often much cheaper for them to do the work than a general contractor who may not have that special expertise. Finally, the subcontractor is usually able to work with a general contractor on more than one project, thus creating a savings for both in the long run as a relationship is formed. Source: http://www.wisegeek.com/what-is-subcontracting.htm |
