What is a subcontract?

A subcontract is a legal agreement in which a company or individual (the subcontractor) is hired by another business (the contractor) to perform a specific portion of work as part of a larger project. Subcontracts are common in industries like construction, IT, and manufacturing, where specialized tasks are outsourced to experts. The subcontractor is responsible for meeting the agreed-upon standards and deadlines outlined in the subcontract. This arrangement allows the main contractor to manage large projects more efficiently by delegating specific tasks to qualified parties.