How contractors differ from subcontractors

The concepts of "contractor" and "subcontractor" are most often found in the construction field. This type of contractual relationship and mutual obligation is beneficial both for the mentioned business entities and for the end customer - the customer. Attracting subcontractors to work can improve the quality and reduce the time required to complete these works.

Who are the contractors and subcontractors?

The contractor is that organization or enterprise, legal entity that concludes a contract with the customer, i.e. is working on some kind of work. By and large, the customer is interested in the final result and the compliance of the object of contractual relations with all the requirements that apply to this type of product, whether it be a building being built or a software product. If the contract does not stipulate that all types of work will be performed only by the contractor, he has the right to involve third parties and other enterprises, which in this case will be subcontractors, to carry out their work.

Construction, and many other types of activities, are licensed, i.e. To perform a certain type of construction and installation work, a special permit is required that is obtained after entering a self-regulatory construction organization. To obtain this permit, the company must have the required number of certified specialists with this qualification, as well as special equipment to perform this type of work.

Since the construction process includes many different technologically separate types of work, the contractor may not have permission to perform each of them. In this case, it is advisable to involve one or more subcontractors with permits for those types of work for which there is no official permission from the contractor. A subcontractor, with access, qualified specialists and special equipment, performs part of the work entrusted to it in accordance with an additional subcontract.