subcontract

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Related to subcontracting: outsourcing

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 ?
This happens, she said, when a subcontracting company only hires employees and allows clients to manage and control them for five months, working along with regular employees of the principal, doing the same tasks that are directly related to their 'core business' and then renew their employment contract every five months, depriving them of their rights as mandated by law.
'Contracting and subcontracting were undertaken to circumvent the workers' right to security of tenure,' he said.
Her clients have won billions of dollars in federal government prime and subcontracting contracts as a direct result of her team's efforts in guiding companies through planning, positioning, pursuing and bidding on federal contracts.
Allied, which has had nine contracts with the city since 2002 for trucking waste from transfer stations to landfills, also agreed to convert 79 temporary workers to full-time positions with higher pay and full benefits for at least three years; boost subcontracting work for minority- and women-owned companies to make up for past underfunding; and waive $40 million in contractual claims against the city for allegedly falling short of "minimum quantity requirements."
According to MEPs, subcontracting has had far-reaching consequences for labour relations and this sometimes makes it difficult to determine the branch of law applicable to the relationship between the various elements of a production chain.
Although STARS vendors are required to submit semiannual subcontracting reports, the program office had not been reviewing the reports because of high personnel turnover.
Federal Acquisition Regulation (FAR) Subpart 19.7 very clearly outlines the federal government small business subcontracting program and its obligations on large business.
30, 2010, the test program that permits negotiation of comprehensive small business subcontracting plans with DoD contractors.
Now, as chairman of HRH Construction, a Manhattan-based construction management company, and of Dualstar, a subcontracting company, he oversees $500 million of business each year.
Current law requires large corporations to have a subcontracting plan for federal contracts performed inside the U.S.
A virtual subcontracting database of suppliers and subcontractors across the North will also be created.
"There are also a lot of subcontracting opportunities.