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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.
This counter-offer, in the form of the Subcontract Agreement, usually contains additional and/or different conditions, general conditions and clauses than what the subcontractor's proposal/bid form contained. The subcontractor is free to accept or reject the Subcontract Agreement.