subcontractor
Definition
A subcontractor is a person or company that a main contractor hires to handle a specific portion of a larger job. If you win a contract to renovate an office building, for example, you might bring in a licensed electrician to handle all the wiring work rather than doing it yourself. The subcontractor gets paid by you, not by your client, and you remain responsible to your client for making sure that work gets done correctly.
Example
A general contractor building a restaurant hires a plumbing company as a subcontractor to install all the pipes and fixtures, paying them directly out of the project budget.
Watch Out
Even when a subcontractor does the work, your client will hold you legally responsible if that work is late, faulty, or causes damage, so always use a written agreement with any subcontractor you bring on.
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.