Subcontractor | What is a subcontractor?

Subcontractor — what is a subcontractor? A subcontractor is an indvidual or organization that assumes all or part of another party’s contractual obligations. The subcontractor signs a contract to take on some of the work for which another company has a contractor. For example, when contruction companies are hired to build houses, they often farm out work to plumbers, carpenters, carpet layers, electricians and other subcontractors.

But not all subcontractors work in the construction industry. Graphic designers hire copywriters. Financial consultants hire accountant. Attorneys hire legal nurse consultants. Just about any consultant can hire a subcontractor — or be one.

Related to subcontractor:

Andrea says:

My contracts all specify that I have the right to assign subcontractors. And, in many places (including where I live), employment law says that, to be a contract worker or consultant, you must be able to assign subcontractors. Otherwise, you’re an employee, because the hiring firm is telling you how to carry out your work.

Laura says:

Great definition of a basic term! One thing that I’ve never been clear about: does a contractor have to reveal to their client that they are using a subcontractor?