subcontractor

A subcontractor is an outside company or individual hired by a general contractor to perform part of the work or services under an existing contract with a client. Subcontractors are independent and not employees of the general contractor. A subcontractor may also subcontract part of their work to another subcontractor, creating a chain of contracts linked to the original agreement. 

Each subcontracting relationship usually requires a separate contract that defines the scope of work. Before subcontracting, the parties must confirm whether the original contract or any related agreements allow it. Some contracts limit or prohibit subcontracting beyond the general contractor. Subcontracting is common in construction and other large-scale projects. For example, a general contractor building a house might subcontract plumbing to one company and flooring to another, with each acting independently.

[Last reviewed in July of 2025 by the Wex Definitions Team]

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