subcontractors
Definition
A subcontractor is a person or company you hire to handle a specific portion of a job that you have already agreed to complete for your own client. Unlike a regular employee, a subcontractor typically works independently, uses their own tools and methods, and you pay them a set fee rather than an hourly wage with benefits. You remain responsible to your original client for the quality and completion of the entire job, even for the parts your subcontractor handles.
Example
If you own a general contracting business and win a contract to renovate an office building, you might hire a licensed electrician as a subcontractor to handle all the wiring work while you manage the rest of the project.
Watch Out
If your subcontractor causes damage, misses deadlines, or does poor work, your client will hold you accountable, so always vet subcontractors carefully and put your agreement with them in writing.
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.