Subcontractors can be anything from an individual self-employed person – eg a plumber carrying out work for a building contractor – to a large national organisation. A subcontractor has a contract with the contractor for the services provided – an employee of the contractor cannot also be a subcontractor.

Can subcontractors subcontract work?

Subcontractors can hire other subcontractors, but it might violate the terms of the general contracting agreement and create additional exposure for you– if you’re running the job. As subcontractors hire other subcontractors, the consequences could impact the project negatively.

Can a main contractor off-load work to a sub contractor?

It is very common in works contracts for the main contractor who got the work awarded in his name to off-load the work to sub-contractor (s). The sub-contractor procures the materials, installs the materials as per the contractual terms & conditions and transfer of property in the materials take place between the sub-contractor and contractee.

Can a sub-contractor be an independent contractor?

Part of the contract may be given for the purpose of execution to a sub-contractor but that would not absolve the contractor of his liability to pay tax. A sub-contract is a part of the works contract and is not an independent contract by itself.

What do you mean by subcontractor in construction?

Subcontractors are individuals with special skills. In construction projects, contractors will hire subcontractors who specialize in different aspects of the project, such as plumbing, electricity, painting, etc. Why Do Contractors Use Subcontractors? Contractors and subcontractors aren’t unlike agents and the talent they represent.

Can a sub-contractor be liable to the contractee?

A sub-contract is a part of the works contract and is not an independent contract by itself. Therefore, a sub-contractor cannot be said to be liable to the contractee inasmuch as he has undertaken the execution of part of the works contract not from the contractee but from the contractor.