0
The terms consultant and specialist are often interchanged. However, in an industry such as the medical field the terms can mean two very different things such as a specialist in a certain area of medicine and a consultant referring to a person who works as an independent contractor.
"Outsourcing" refers to sending a piece of work partially or fully to some "external" agency who specialises in the same. For example, a small firm (say, "A") may not find itself comfortable in managing its accounts, so may outsource it to a specialised accounting firm (say, "B"). Please note that at some point in time, firm "A" may realise that it has suficient volumes that it can own a center specialising in that activity - say, firm "A" becomes so large that having a dedicated team of accountatnts is profitable or convenient vis-a-vis outsourcing it to firm "B". in some instances, it may - this is called a CAPTIVE (or internal) center - but this is NOT "outsourcing" as nothing is going "OUT".
Now this firm "B", to further reduce its cost or for any other reason, may further give it - partially or fully - to another firm (say, "C"). This is "subcontracting" - IE. - contractor to a contractor. At times, the "outsourcer" (firm "A" in our example), bars any subcontracting; at times, in the absence of a clear clause in the contract, the contractor (firm "B") subcontracts it with or without the knowledge of the "outsourcer" (firm "A")!
Typically, on achieving a critical mass, any outsourced service provider (firm "B") will never ever resort to subcontracting, though it may initially work when the Contractor is "small"..
In a nut shell, outsourcing works only when:
1. It is either too complicated to handle by yourself as it requires sophisticated technical skills to handle by yourself And/ OR
2. It is too small - but still significant volume - to make a business sense to outsource.
Just to elaborate, one would "outsource" the drawings of a house to an architect (special skills, though task may be small) OR constructing a big house/ mansion (too complicated to handle by self PLUS technical skills) OR building a boundary wall (size or effort justifying "outsourcing"). Note that in some instances, one may still try to execute a task or activity by himself, so there are no hard and fast rules!
Also note that hiring daily wage workers (masons etc) by yourself is NOT "outsourcing" or "subcontracting" - both these terms attract service clauses attached to them ("X" amount of delivery in "Y" Dollars within "Z" days, etc etc..).
A subcontractor may also be an independent contractor.
A subcontractor situation happens when an employer places a contract with a person (or company) to have some work done. If that person (or company) then places a contract with another person (or company) to have all or perhaps a specialist part of the original work done, then that second person (or company) is a subcontractor.
From the employers point of view, he only pays the person he has a direct contract with.
Add your answer:
Earn +20 pts
What is the difference between a joint venture partner and subcontractor?
subcontractor join to main contractor to form joint venture but that venture is not partnership
What is the difference between a prime contractor and a subcontractor?
The prime contractor is contracted by the end customer. Sub-contractors are contracted by the prime contractor or other sub-contractors.
What are the difference between direct subcontractor and nominated subcontractor?
a nominated subcontractor, with various provisions for obtaining indemnities by the subcontractor (or Employer) but under the main contractor responsibility and coordination, or ** another contractor, which FIDIC provides the incumbent Main Contractor is required to give site access, etc, etc to but coordinated by the Employer My own understanding, very simply put is that a nominated subcontractor is actually a "normal" subcontract between Main Contractor and Subcontractor, BUT that the nominated subcontractor is selected by the Employer and price agreed with the Employer directly. That would mean that the Main Contractor has the accountability for the subcontractor, notwithstanding any indemnities. The Consultant has stated today that in their opinion: ** the nominated subcontractor is selected by the Employer and signs a contract direct with the Employer ** the Employer will secure assurances, bonds / performance sureties and warranties direct with the subcontractor, and ** that the Main Contractor DOES NOT sign a subcontract with the subcontractor ** that the main Contractor will not be held liable for certain specified warranties My understanding is that the Main Contractor still should sign a subcontract with the nominated subcontractor and assumes the responsibilities of a Main Contractor over the Subcontractor - though the Employer states that the Main Contractor has no liability specified warranty issues and quality (only). I would believe the Main Contractor still has a number of responsibilities in respect of the subcontractor and their general performance. The Consultant assures they have checked FIDIC and it is normal for the Employer to sign a subcontract direct with the Nominated Subcontractor. I would believe in that case it is not a "Nominated Subcontract", but instead a direct supplementary contract between the Employer and their Contractor (secondary contractor) Can you kindly advise quite simply, the contractual position of a nominated subcontract under FIDIC ...... ie does the Employer sign the contract / subcontract with the Nominated Subcontractor, or is it a subcontract between Main Contractor and Nominated Subcontractor with the normal (in general terms) obligations by the Main Contractor for the Subcontractor, to the Employer.
What is the diffence between a nominated and a selected subconttactor with reference to liability?
A nominated subcontractor is chosen by the client or architect, and the main contractor is not liable for the performance of the nominated subcontractor. In contrast, a selected subcontractor is chosen by the main contractor, who remains liable for the selected subcontractor's performance.
Subcontractor Agreement?
Get StartedA Subcontractor Agreement is an agreement between a general contractor (the "General Contractor") and another party who has subcontracted to perform work and services for the General Contractor (the "Subcontractor"). The General Contractor is the party who will contract directly with the owner of the property on which the Subcontractor will be working. Frequently, the General Contractor has portions of the larger project that the General Contractor prefers not to do. Therefore, the General Contractor contracts those portions out to another party, the Subcontractor.If it is available, the Subcontractor may wish to review the Original Contract between the Owner and the General Contractor to be sure that there are no conflicting terms between it and the anticipated Subcontractor Agreement.This agreement allows the parties to describe which services and materials the Subcontractor will provide, specify the price for the work, and assign various rights and liabilities between the parties. Important provisions regarding indemnification, insurance, change orders, unforeseen conditions, defaults, the nature of the parties' relationship and miscellaneous concerns are also included.This agreement should be signed by both parties and becomes effective as of the date inserted at the beginning of the agreement.
Can a subcontractor for termite treatment on a Hollywood Florida home put a lien on the house when the contractor was paid in full but will not pay the subcontractor?
Not likely. There is no privity of contract between the homeowner and the subcontractor. The homeowner had an agreement with the general contractor, and that's the only person they have a duty to pay. The subcontractor can only pursue payment from the general contractor - to put a lien on the home would be to punish an innocent party - the homeowner. This is between the subcontractor and the general contractor, and there's no reason to bring the homeowner into this, since the homeowner doesn't owe the subcontractor anything.
What is the difference between a vendor and an independent contractor?
An independent contractor is a hired individual who is not an employee and works at a set price. A vendor is a person or group that sells products or services independently.
What to do when a contractor does not want to pay a sub contractor?
A subcontractor can turn to Construction or mechanics lien law in order to secure payment. By being lien law compliant, meeting specific requirements such as preliminary notices and within time restrictions, a subcontractor can withhold payments to the primary contractor or lien the property. Lien laws are state specific and you should check your state's statutes for the requirements and restrictions. Property owners can protect themselves from these liens by requesting waivers or releases from all subcontracts and the primary contractor for each payment as well as a Contractor's Affidavit at the end of the job in exchange for the final payment.
What is the difference between independant contractor and employee?
An independent contractor is someone who works for themselves not a company. They can work for someone else but not be employed by them. An employee is employed by a company.
Is a person a subcontractor if the general contractor makes the price?
Anyone who does work for a general contractor and is not a direct employee of that contractor is a sub-contractor. Regardless of who sets the price. The subcontractors work within the contract set between the general contractor and homeowner. Hence sub-contractor.
What is the difference between a principal and contractor?
principal runs a school. a contractor builds buildings.
What is the relationship between a subcontractor and main contractor in relation to payments and other matters?
The customer pays the contractor, and the contractor pays the sub-contractor. The sub-contractor does the work but the contractor remains responsible for ensuring that the work is done prompptly and correctly. The contractor ensures that all legal requirements for the work are met, and that the sub-contractor hasan appropriate amount of liability insurance, in the event that something goes wrong and horrible law suits result.
