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Subcontractor
A subcontractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another's contract.
A subcontractor is hired by a general contractor (or prime contractor) to perform a specific task as part of the overall project. Whilst the most common concept of a subcontractor is in building works and civil engineering, the range of opportunities for subcontractor is much wider and it is possible that the greatest number now operate in the information technology and information sectors of business.
The incentive to hire subcontractors is either to reduce costs or to mitigate project risks. In this way the general contractor receives the same or better service than the general contractor could have provided by itself, at lower overall risk. Many subcontractors do work for the same companies rather than different ones. This allows subcontractors to further specialize their skills.
In the United Kingdom economy, the need to respond to a rapidly changing environment and service a diverse infrastructure has encouraged flexibility and diversity in its subcontractor community with the majority of subcontractors now providing specialised skills to a wide range of companies.
General Contractor’s Failure to Send Subcontractor a Subcontract Which Met the Terms of the Subcontractor’s Quotation, Prevented the General Contractor From Recovering Under Promissory Estoppel
The general rule in construction contracts is that if a prime contractor relies upon a subcontractor's bid, and incorporates the subcontractor's quote in its bid to the owner, the subcontractor may not withdraw its bid for a reasonable period of time after the prime contractor's bid has been accepted by the owner...
When the Subcontractor Does Not Get Paid
There is a great deal of confusion about what to do when a contractor does not pay the subcontractor. The homeowner wonders if he is liable when subcontractors start knocking on his door, saying they are still owed money...
A Contractor Must Pay a Subcontractor All Undisputed Amounts Due
A contractor did not meet the requirements of the Texas Prompt Payment Act when the contractor wrongly withheld undisputed amounts owed to the subcontractor...
Court Permits Suit to Continue Against Subcontractor
The New Jersey Superior Court recently found that under New Jersey law, when used properly, the fictitious party practice allows a plaintiff to join a specific subcontractor more than 10 years from the date of it's work...
'Horizontal Immunity' Protects Subcontractor from Tort Liability
One of the many changes wrought by the 2003 amendments to the Florida Workers' Compensation Law was a change regarding immunity from tort liability for subcontractors on construction jobs...
Supreme Court Shuts Door on Subcontractor Claims
In its much anticipated May 2008 decision in Design Services v. Canada, 2008 SCC 22 the Supreme Court of Canada shut the lid on a Pandora?s Box of potential future litigation when it denied the right of subcontractors to leapfrog general contractors and directly sue purchasing institutions over irregularities in the tendering process...
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