What is a sub contract?

Sub contracts, or subcontract agreements, are legally binding arrangements where one company (the contractor) hires another company or individual (the subcontractor) to complete a specific part of a larger project. Subcontractors are typically specialists who bring expertise in areas such as electrical work, plumbing, or IT services. These agreements outline the scope of work, deadlines, payment terms, and responsibilities. Sub contracts help main contractors manage complex projects by dividing tasks among experts. They are commonly used in industries like construction, engineering, and information technology.