What does subcontracting mean?

Subcontracting is to divide a large project into several parts, and each part is called a package. Sometimes the project has been divided into several packages when bidding, and sometimes a supplier takes the whole project and then splits it and legally subcontracts it.

In layman's terms, it is to split the work and give it to different people.

There are two kinds of legal subcontracting, professional subcontracting and labor subcontracting.

Professional subcontracting refers to some highly specialized parts, such as water supply and drainage, electricity, ventilation, steel structure, etc. If the general contractor doesn't want to do it, it can be handed over to a subcontractor with professional qualifications. In the past, the whole project was often divided into eight parts, which were "subcontracted" to different companies found by the same boss, but in the document of the Ministry of Construction 1 18, subcontracting was defined as subcontracting, so it is rarely used now.

Labor subcontracting means that the construction, material procurement and management personnel are all their own, but the workers are convened and paid by the labor service company, and the general contractor signs a contract with the labor service company, which then signs a contract with the workers.