subcontracting
Definition
Subcontracting happens when you hire another business or individual to handle part of a job that you originally agreed to do for your client. You stay responsible to your client for the final result, even though someone else is doing some of the work. Think of it as bringing in a specialist to help you deliver on your promise.
Example
If you run a general contracting business and win a contract to remodel a restaurant, you might subcontract the electrical work to a licensed electrician while you manage the rest of the project.
Watch Out
Your original contract with your client may require their written approval before you subcontract any portion of the work, so always read that agreement carefully before bringing in outside help.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.