Question

Write a short note on the topic ‘Sub-contracting’.

Answer 1

Hint: An agreement between private persons that creates legally enforceable mutual obligations. Mutual assent, expressed by a legitimate offer and acceptance; adequate consideration; capacity; and legality are the key characteristics required for the agreement to be a legally enforceable contract.

Complete answer:
Subcontractor - A subcontractor (or sub-contractor) is a company or individual that a general contractor, prime contractor, or main contractor engages to do a specific task as part of a larger project, and who is often compensated for the services performed. While subcontracting is common in construction and civil engineering, the variety of opportunities for subcontractors is much broader, and it is probable that the information technology and information sectors of the economy today employ the most subcontractors.

Subcontractors are hired either to cut costs or to lessen project hazards. The general contractor aims to acquire the same or better service from subcontractors than it could deliver on its own, while also reducing total risk.

Rather than working for distinct companies, many subcontractors work for the same ones. This permits subcontractors to specialize their talents even more.

Sub-contracting - Commissioners of various municipalities across the country have recently hired private contractors to collect and process waste in order to save money. This is known as subcontracting. This means that work previously performed by government employees is now performed by a private corporation or agency. These contract labourers are paid a minimal wage and work for a limited time.

Note:
- There are three sorts of subcontractors: Domestic subcontractor, nominated subcontractor, Named subcontractors.
- The government benefits from subcontracting since it saves time and money.