What are contracts between a prime contractor and secondary contractors known as?

Subcontracts are agreements that a prime contractor enters into with secondary contractors to fulfill specific portions of a larger project. When a prime contractor takes on a project, they may not have all the necessary resources, expertise, or personnel to complete every aspect of the work. To effectively manage the project, the prime contractor can delegate certain tasks to subcontractors, who have the specialized skills or resources needed.

This structure allows for better efficiency and allows the prime contractor to maintain control over the overall project by leveraging the capabilities of specialized subcontractors. Subcontracts specify the scope of work, payment terms, timelines, and other important details governing the relationship between the prime contractor and the subcontractor.

In the context of other options, partnership contracts typically refer to agreements between two or more parties that want to co-manage a business venture, while joint ventures involve collaboration between organizations for a specific project, often sharing risks and profits. Vendor agreements usually refer to transactions with suppliers for goods or services rather than the specific work arrangements seen in subcontracting. Thus, subcontracts uniquely define the contractual relationships among the parties involved in construction or project management, making them the correct answer in this context.