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WHAT Contractors differ from subcontractors

The contractors are distinguished from subcontractors

The term "contractor" and "subcontractor" is most common in the construction field.

This type of contractual relationship and vzaimoobyazatelstv is beneficial both for the mentioned subjects of economic activity, and for the end user - the customer.

The involvement of subcontractors can improve quality and reduce turnaround time.

Who are the contractors and subcontractors

Contractor - it is the organization or enterprise,the legal entity that enters into a contract with the customer, ie, contract many to perform any work. By and large, it is important to the customer and the end result of compliance object of contractual relations with all the requirements that apply to this type of product, whether it is erected a building or a software product. If not specified in the contract that all work will be carried out only by the forces of the contractor, in order to have the right to draw their implementation by third parties, other businesses, which in this case will be subcontractors.
Construction, and many other types ofactivities are licensed, ie, to perform certain types of construction and installation work requires a special approval obtained after the entry into a self-regulating organization of construction. To get this approval, the enterprise should be the required number of certified professionals with this qualification, as well as specialized equipment to perform this type of work.
Since the construction process includesmany different kinds of technologically isolated works, the contractor may not be approved to perform each one. In this case, it is advisable to the involvement of one or more sub-contractors, with approvals to those types of jobs for which there is no official permission from the contractor. Subcontractor having tolerance, skilled specialists and special equipment performs its mandated part of the work in accordance with the further concluded subcontract.

The contractual relationship with the subcontractor

The main contract, according to whichthe work is done, it is the one that is between the customer and the contractor. This contractor is solely responsible for the commitments that are spelled out in this document. He alone is responsible to the customer for execution of the contract terms and related facilities set standards and rules. The difference between it and the subcontractor, that all the guarantees provided by the contractor and all liability, administrative and financial, imposed on him.
In turn, between the contractor and thesubcontractor is also a separate subcontract, which are subject to the same rules that are set by the Civil Code of the Russian Federation on the contract. He, like any contract that defines the financial responsibility for failure to comply with contractual obligations, stipulates the composition, timing and cost of work performed.

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