Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. The out-side person or company in this arrangement is known as a subcontractor, but may also be called a free-lance employee, independent contractor, or vendor.
What is a sub contracted job?
Subcontracting refers to the practice of bringing in an outside company or individual to perform specific parts of a contract or project. In most cases, a company subcontracts another business to perform a task that cannot be handled internally.
How does a subcontractor work with an employer?
Subcontractor performs labor for a general contractor, rather than the employer who employed the general contractor. Usually, each subcontractor is paid a portion of what the contractor receives for the labor.
Can a sub contractor be a self employed person?
The fact that they are “self employed” does not mean that they cannot have a separate employment with you. If in doubt, you should take professional advice (usually your accountant) to discuss the specific working arrangements you have with the “self employed” sub contractor.
What do I need to become a subcontractor?
As an independent subcontractor, you’ll need your own insurance such as employer, property, and liability coverage to make sure you’re adequately protected while you work for clients. 3. Create a Contract Agreement: Now that you’re fully qualified, you need a way to contract your services to a GC.
When to take advice from a sub contractor?
If in doubt, you should take professional advice (usually your accountant) to discuss the specific working arrangements you have with the “self employed” sub contractor. In all cases, you should insist that a self employed sub contractor provides you with proper invoices.
