What does the term subcontracting refer to?

The term subcontracting specifically refers to the practice of hiring another contractor, known as a subcontractor, to carry out a portion of the work on a larger project that the main contractor is responsible for. This allows the primary contractor to delegate specialized tasks or workloads where they may not have the necessary expertise or workforce readily available. Subcontracting is a common practice in the construction industry, as it can be more efficient and cost-effective to bring in specialized skills rather than trying to maintain an in-house team for all aspects of construction.

In contrast, simply ending a contract with a client does not involve transferring or delegating work and does not reflect the essence of subcontracting. Managing a project without hiring additional workers does not align with the subcontracting concept, as it implies that all tasks are handled internally. Forming a partnership with another construction company typically suggests a different type of collaboration, where responsibilities and profits might be shared, rather than one company hiring another to complete specific tasks.