Subcontracting is an important part of the construction industry, it's magnitude of importance has shown a lot of potential increase within construction companies over the past few years in South Africa. It has been very influential within the labour division in the industry and increases employment and skills.
Subcontracting is a wonderful approach that is mainly used by the Main Contractors within the construction company, in order to handle the doubts and uncertainties within the industry. It also transfers many risks, for example: financial, completion and employee responsibility. By using subcontracting it reduces the immediate and direct costs which allows the Main Contractors to be more competitive at local levels, through having better knowledge of the local market and conditions. It eases the quality of work by having subcontractors that have all the necessary skills and knowledge in the specialized field and trade. Not only does it deal with uncertainties and decreases risks, but also allows overall decrease in operation costs and enhances competitiveness between local construction companies.
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