When implementing an investment project (for example, in construction), the roles and responsibilities of all participants in the process, as a rule, are clearly delineated. Their functions performed sequentially complement each other. The need for such a separation has been verified and confirmed by decades of construction activity.
The main persons of the project
The two leading positions of participants in the construction process are the investor and the developer. They determine the overall goal of the project, select the suitable customer, which is the central link. That, in turn, already selects the following participants - the designer and contractor. The designer develops the general architectural and space-planning ideas of the customer and coordinates them with all interested parties. The contractor or general contractor implements this plan. And to provide construction with all the necessary materials and equipment is the task of suppliers. This is how the traditional scheme of interaction of all participants in the construction process looks like, and each of them is an independent legal entity.
Who controls the process?
Thus, the main actors are the customer and the general contractor - they organize and control the construction as a whole. Nowadays, often there are no pronounced boundaries between the participants in the process. Often, one can observe the combination of the functions of an investor and a developer, a customer and a general contractor. But with the traditional organization of construction, as a rule, the contractor or general contractor takes over the functions of direct production. Moreover, it is most often economically profitable for a contractor to entrust partially or fully the fulfillment of obligations to fulfill the scope of work to third parties. In this case, such persons are referred to as subcontractors. About them - further.
Who are the subcontractors? Subcontracting agreement is an independent agreement derived from the main one (contracting agreement). It must comply with civil law. The law does not provide for any particularities in the procedure for its conclusion. A subcontract is executed in the same manner as the main contract. It can be concluded through the exchange of an offer and acceptance, or it can be based on the results of contract tenders. Nowadays, tripartite agreements are often concluded between the customer, as well as the general contractor and subcontractor.
Subcontractor in a contract
If the contract does not provide for the personal fulfillment by the contractor of his obligations, the latter has the right to involve subcontractors in the work. Thus, the subcontractor in the contract is the employee (legal entity) who has undertaken the obligations (partially or fully) of the performance of certain works. There may be several such organizations; their number is not legally limited. Subcontractors are legally independent organizations specializing in specific types of work. For example, construction, decoration, etc.
It is quite possible that subcontractors are construction companies that take over the entire range of works on the construction of a construction project. That is, the work can be performed by the subcontractor “from” and “to” with the direct turnkey delivery of the contract to the general contractor. At the same time, the customer may not even know by whom exactly the final work on the project is carried out.
Interaction of the parties
The so-called list of agreed subcontractors is quite popular these days. When using it as part of a contract, the customer is relieved of the need to enter into contractual relations directly with the contractors. Contractors and subcontractors are, in this case, entities that regulate relations among themselves independently. If the contract is concluded based on the results of the bidding, the list of prospective subcontractors is included in the tender proposal of the participant. The general contractor and subcontractor are two closely interconnected parts of the construction process, so this list can have a significant impact on the final decision by the customer.
During the production process, it may be necessary to replace one of the subcontractors or to redistribute the volumes and types of work between them. Since subcontractors are legal entities that have concluded a contract directly with the contractor, the written consent of the customer is required to implement such changes. Often the customer, dissatisfied with the work, is trying to independently enter into negotiations with the subcontractor, which is legally unlawful - because he is not a party to the contract.
To summarize
Subcontractors are persons on whom the quality of work and the term for fulfilling the contract directly depend. Therefore, many customers include a clause on the timely payment of contractual remuneration by the general contractor in the text of the general contract agreement. The customer himself has the right to conduct monetary settlements with subcontractors, but only if such a possibility is provided for by the general contract, or with the consent of the general contractor, an agreement is concluded between them for the production of certain types of work.