what is subcontracting and what is its impact
Answers
Explanation:
Subcontracting is the practice of assigning, or outsourcing, part of the obligations and tasks under a contract to another party known as a subcontractor. Subcontracting is especially prevalent in areas where complex projects are the norm, such as construction and information technology.
For building investment, the time and the cost required for construction are two predominant factors affecting the demand- supply market mechanism. ... On the other hand, subcontracting is an excellent means for a general contractor to exercise cost control while sharing part of its risks to other parties.
Answer:
Subcontracting introduces a third party into the relationship between the department and service provider. If not managed correctly, subcontracting may pose significant challenges to your organisation, as well as to the department and our clients.
For example, it may:
cause confusion about the rights and responsibilities of your organisation versus those of your subcontractors
make it more difficult for us to monitor the performance and assess the quality of the services contracted by us
expose us to risk if a subcontractor doesn’t maintain adequate insurance
inconvenience clients by requiring them to deal with different organisations.
This is why you’re required to apply for our consent to subcontract any part or all of the services, and to notify us in advance of any changes to agreed subcontracting arrangements.
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