The contractor subcontractor relationship is an economic partnership between two parties that is similar to symbiotic organisms. Both parties must understand the profit and risk scenarios involved in order to maintain a harmonic existence.
Similar to documentation required for hiring an employee, companies must acquire certain documentation from their subcontractors. Without this documentation, most likely the hiring business entity will face stiff penalties and expose their company to unnecessary risk.
With construction, no other mutual bond has such a high dependency on each other as the contractor subcontractor relationship. If the relationship is developed properly and with a mutual understanding, it can be very successful.
