A subcontractor is an individual or in
many cases a
business that signs a contract to
perform part or all of the obligations of
another's contract.
The incentive to hire subcontractors is
either to reduce costs or to mitigate
project risks. In this way the general
contractor receives the same or better
service than the general contractor could
have provided by itself, at lower overall
risk. Many subcontractors do work for the
same companies rather than different ones.
This allows subcontractors to further
specialize their skills.
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