subcontract

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subcontract

the contract between a party and a main contractor who himself is contracted to another, often called the employer, albeit the contract is not one of employment in the contemporary colloquial sense. Subcontracts are very commonly found in building contracts. The employer contracts with the main contractor, who himself contracts for work to be done, like windows or floors, by others who can do so better or cheaper. A subcontractor maybe nominated by the employer. There are effectively and legally only two contracts, the subcontractor not being contractually bound to the employer. However, it is not uncommon for the employer to seek some form of contractual comfort from the subcontractor if his involvement is critical to the project. Standard forms govern many of the relationships between the parties. In one case it was held that a subcontractor could be held liable to an employer in tort or delict where the relationship was proximate, indeed, very like contract, a decision that, although doubted to the point of extinction in England, has not been overruled and has been followed elsewhere in the Commonwealth.
References in periodicals archive ?
The number of subcontracted workers surged rapidly during the tenure of the AK Party.
The eight Tottori contractors received orders for the project for 501 million yen and then subcontracted it for 330 million yen.
The Defense Department accounted for 71% of the subcontracted dollars.
However, Hotta Kensetsu actually subcontracted most of it to Nishida Kosan, owned by the former minister, for 1.
In the past, Henderson subcontracted for McDonnell-Douglas Corp.
On June 1st, 2004, Accenture announced the award of the lead contract for implementation of the US-VISIT program and later in the year, Raytheon was subcontracted to perform specific tasks related to systems engineering and biometrics for the US-VISIT program.
To develop the F-22 prototype, Lockheed has subcontracted $6 billion worth of work over the next six years to Boeing and GD.
Eighteen room cleaners were terminated on March 8th when David Lane, general manager and President of Paramount Hospitality Management LLC, the hotel's operator, subcontracted out the hotel's entire housekeeping department.