How Subcontracts Affect Project Budgets
Subcontracts help primary contractors manage complex projects by allowing specialists to handle specific parts of the job. Financially, subcontracting can streamline costs and improve efficiency by ensuring the work is done by experts. However, managing subcontractor budgets and timelines is critical to keeping the overall project on schedule and within budget.Best Practices for Managing Subcontracts
Primary contractors should clearly define the scope of work, timelines, and payment terms in each subcontract. It’s important to track subcontractor progress and costs regularly to ensure work is completed on time and within the agreed budget.Related Terms: Main Contractor, Lump Sum Contract, Purchase Order (PO) (PO)