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What is 'Subcontracting'. Subcontracting is the practice of assigning 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.
Courts look at any assertions not in accord with the proposal as being immaterial. 1  The Ostensible Subcontractor Rule and affiliation often comes in to play if your company serves as a government subcontractor, or is in involved with any type of contractor and subcontractor relationship at the bidding stage.