Subcontractor Costs - 1

Subcontracting

• Some or most of a project may be "let out" to one or more other companies as subcontractors
• This transfers the responsibility for estimating

  • If "firm prices" are required
• It is usual to obtain several quotations

  • Unless the value of the contract would be very small
  • Or the service is very specialized
  • Or the relationship with the service supplier is long-standing and very solid

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