A subcontractor is a person or business that has a contract with a contractor, as an independent contractor rather than an employee, to carry out part of the work or services that the contractor has agreed to perform on a project.
Much UK construction work is delivered through subcontractors managed and paid by the main contractor. The subcontractor has no direct contract with the client, so payment and disputes run through the main contractor. Subcontracts are often let on standard forms such as the JCT subcontracts or the NEC4 Engineering and Construction Subcontract. Common types include:
- domestic subcontractors, chosen and employed by the main contractor
- named subcontractors, selected by the client but employed by the main contractor
- labour-only subcontractors, who supply labour while the contractor provides the materials
Payments to subcontractors are covered by the Construction Industry Scheme (CIS), under which the contractor may have to make tax deductions.
Related terms: main contractor, supplier, Construction Industry Scheme, subcontract.
