Subcontractor

The European Union has recognised the need to make provision for sub-contracting in its rules on public procurement, as arrangements for sub-contracting can support the EU's drive to involve more small and medium-sized undertakings in the provision of goods and services for the public sector.

However, on being awarded the prime contract, Marathon agreed a lower price with Smith Peat and offered them the subcontract.

This is a subtlety of corporate taxation that may easily be missed or misunderstood, and may be relevant to research and development tax relief.

Examples of activities that involve outsourced work that do not count as subcontracting for tax purposes include:

[8] Under Florida construction law, a pay when paid clause is unenforceable unless it unambiguously transfers the risk of non-payment to the subcontractor.