subcontract

  

Definition

Agreement, purchase order, or any such legal instrument issued under a prime contract (by the prime contractor to a third party the subcontractor), calling for the performance of a defined piece of work or production and/or delivery of specified goods or services. Subcontracts contain special terms and conditions that are unique to the prime contract, and flow-down provisions that proceed from it.

Use subcontract in a sentence

  • Construction companies often subcontract different companies to do smaller jobs that they feel they arent the best suited for within a contract.

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  • Prime contracts are established for legal purposes which involves a third party while a subcontract pertains to conditions based from the prime contracts.

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  • Management prohibited any dealings with their shady former partner, so they were dismayed to discover several subcontracts had been created with them in light of the financial missteps.

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