What is the definition of a subcontractor

what is the definition of a subcontractor

Who Is a Subcontractor under a Federal Government Contract?

Subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. The contractor, however, rarely does all the work. Definition of subcontractor: an individual or business firm contracting to perform part or all of another's contract Examples of subcontractor in a Sentence Recent Examples on the Web He's .

Usual, customary and reasonable UCR is a term used to describe fees associated with health care costs that health insurance companies cover. A fee ddefinition considered usual, customary and reasonable if it is comparable to fees other health care providers in the area charge for the same service and if View full term.

By clicking sign up, you agree to receive emails from Insuranceopedia and agree to our terms of use and privacy policy. A subcontractor is contractor who is hired by a contractor to help him or her complete a job. Subcontractors are commonly used in construction. However, that is not the only industry subcontracfor are used in. In the context of insurance, subcontractors are not always covered by the liability insurance policy of the contractor.

Whether or not a subcontractor is covered by the contractor's liability insurance can have huge financial ramifications if an accident occurs that is caused by the subcontractor. For example, if a subcontractor on a construction site accidentally backs deifnition truck into the structure, knocking it down, this could cost the contractor a lot of money if the subcontractor isn't insured. Whwt contractors whag subcontractors to carry their own liability insurance before they will hire them.

The same is often true for workers' compensation insurance. Join one of our email newsletters. It's fast and easy. You will be among the first to know about hot new insurance related articles, goodies and great subclntractor - it will only take seconds!

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Connect with us. Insuranceopedia Explains Subcontractor. What Does Subcontractor Mean? Insuranceopedia Explains Subcontractor Whether or not a subcontractor is covered by the contractor's liability insurance can have huge financial ramifications if an accident occurs that is caused by the subcontractor. Share this Term. Personal Lines Insurance Tips for Newlyweds. Subscribe To the Insuranceopedia Newsletter!

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Subcontractor is a person who is awarded a portion of an existing contract by a principal or general contractor. Subcontractor performs work under a contract with a general contractor, rather than the employer who hired the general contractor. Define Subcontractor. means any natural person, private or government entity, or a combination of the above, to whom any part of the Goods to be supplied or execution of any part of the Related Services is subcontracted by the Supplier. Feb 28,  · What is a subcontractor? The answer to this question seems obvious – a subcontractor is a contractor that contracts with the prime contractor to perform a scope of work on a construction project. However, it is not always easy to distinguish a subcontractor from a materials supplier (sometimes referred to as a “materialman”). That distinction is important in the context of claims by.

One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. The contractor, however, rarely does all the work. The work that remains is performed by subcontractors, who are under contract to the contractor, who is usually designated the general or prime contractor. Subcontractors may, in turn, hire their own subcontractors to do part of the work that they have contracted to perform.

Building construction is a common example of how the contractor-subcontractor relationship works. The general contractor takes prime responsibility for seeing that the building is constructed and signs a contract to do so. The cost of the contract is usually a fixed sum and may have been derived from a bid submitted by the contractor. Before offering the bid or before contract negotiations begin, the general contractor normally asks the subcontractors to estimate the price they will charge to do their part of the work.

Thus, the general contractor will collect information from electricians, plumbers, dry wall installers, and a host of other subcontractors. Once construction begins, the general contractor coordinates the construction schedule, making sure the subcontractors are at the building site when needed so that the project remains on schedule.

The sequencing of construction and the supervision of the work that the subcontractors perform are key roles for the general contractor. Subcontractors sign contracts with the general contractor that typically incorporate the agreement between the general contractor and the owner. A subcontractor who fails to complete work on time or whose work is not acceptable under the general contract may be required to pay damages if the project is delayed because of these problems.

A subcontractor's biggest concern is getting paid promptly for the work and materials provided to the project. The general contractor is under an obligation to pay the subcontractors any sums due them unless the contract states otherwise. Some contracts state that the subcontractors will not be paid until the general contractor is paid by the owner.

If the owner refuses to pay the general contractor for work a subcontractor has performed, the subcontractor has the right to file a mechanic's lien against the property for the cost of the unpaid work. When changes are made to the project during construction, subcontractors expect to be paid for the time and materials expended on the change.

Subcontractors must receive formal approval to make the change and have a cost attached to the change before doing the work. Otherwise, when they submit a compensation request, it may be denied either because too much time has passed or because the general contractor or the owner believes the work performed was within the scope of the original project.

In building construction, subcontractors may include such trades as plumbing, electrical, roofing, cement work and plastering. See: contract , contractor , independent contractor , mechanic's lien. Subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor.

West's Encyclopedia of American Law, edition 2. Copyright The Gale Group, Inc. All rights reserved. Hill and Kathleen T.

All Right reserved. Mentioned in? Civil Rights Act of contractor due process of law lien Public Contract quantum meruit Rebate secret rebate subcontract Triangle Shirtwaist Company Fire unclean hands. References in periodicals archive? Last year, the California legislature enacted Labor Code [section] Under Minnesota law, public owners are allowed to withhold 5 percent of each payment known as retainage to subcontractors to ensure the project will be completed properly.

Subcontractor takes retainage' dispute to court. The controlling statute allows contractors to make claims on the CCB bonds of its subcontractors but does not provide for claims by contractors against materials suppliers. The definition of a subcontractor, and why it matters. The Court of First Instance appointed an engineering expert "Expert" to review the Project's record and visit the site to determine, among other things: i the Project's progress, ii whether the Main Contractor engaged a new MEP subcontractor , iii the outstanding payment owed to the Subcontractor , and iv whether the Employer paid the equivalent payment to the Main Contractor.

How to build a solid contractual risk-transfer program. The work in question was performed by Netcracker as a subcontractor to Computer Sciences Corp. Seeking clarity on managing subcontractors. It is unlikely that the courts will go further than this so as to allow a contractor to bring a positive claim against the employer for, say, prolongation or other losses suffered as a result of the nominated subcontractor.

What are conditions governing subcontractors? But how does an owner or general contractor build a safety culture among perhaps dozens of subcontractors with diverse responsibilities and schedules--a safety culture that goes beyond mere compliance? Safety first: the construction industry is turning to wrap-up programs to reduce workers' comp claims.

Due diligence with CPA firm subcontractors. The payment of work done by subcontractor usually are been delayed and carried out to the next month and left the subcontractor with insufficient money to generate for the entire month. Preface: a theory of subcontractor bullying in construction industry.

As a result, some contractors choose to provide a CCIP where all or some subcontractors on the job are not required to have individual insurance policies for their employees, and the contractor is automatically liable for workers compensation claims filed by the subcontractor 's employees. Reducing contractor workers comp claims. Legal browser? Full browser?

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