Subcontracting is a form of collaboration in which a contractor subcontracts part of a public contract to another contractor, called the subcontractor. The contractor is the company or person who won the public contract and who will perform it at a given price. The principal is the government agency that has issued the contract for a particular need, such as the construction of a bridge, the delivery of office supplies or the organization of an event.
Subcontracting can have several advantages for the contractor, including:
- Increasing capacity and flexibility to carry out the assignment
- Leveraging the expertise and experience of the subcontractor
- Reducing the costs and risks of the assignment
- Meeting the client's requirements and expectations
However, subcontracting can also present some disadvantages or challenges, such as:
- The loss of control and supervision over the execution of the assignment
- Being dependent on the quality and reliability of the subcontractor
- Compliance with subcontracting rules and obligations
- Resolving any disputes or problems with the subcontractor
Subcontracting is not prohibited in public procurement regulations, but it is subject to a number of conditions and restrictions. The contractor must inform the principal of the portion of the contract it intends to subcontract and the identity of the subcontractor. The employer can refuse or limit subcontracting if it has a legitimate reason to do so. The contractor must also verify that the subcontractor has no grounds for exclusion and that he meets the competence requirements. The contractor remains fully liable for the proper execution of the contract, including the part performed by the subcontractor.
Subcontracting is thus an opportunity for the contractor to subcontract part of a public contract to another contractor, but it must be done with respect for the rules and interests of the client.
