neha rajpal-55
TRANSCRIPT
-
8/8/2019 Neha Rajpal-55
1/7
Done By: Neha Rajpal
S.Y.BBM-IB. Roll No: 55
-
8/8/2019 Neha Rajpal-55
2/7
Subcontracting is a type of work contract that seeks to outsource certain
types of work to other companies. This is a step down from general
contracting, which is a contract overseeing a much broader project in
many cases.
Subcontracting is done when the general contractor does not have the
time or skills to perform certain tasks.
When a building is being constructed, subcontracting becomes a major
deal.
Larger contractors may be able to handle the plumbing and electrical work
as well, without subcontracting. However, these companies are rare notonly because of the expertise involved, but the desire to focus primarily in
one area.
If a contractor has too many disciplines, the thought may be that it is not
clearly focusing its efforts on quality in one particular area.
In some cases, a general contractor may only be used as the constructionmanager or supervisor. In that case, subcontracting accounts for all of the
physical work done on the premises.
The general contractor's only responsibility is to approve the contacts,
keep the project within budget and inspect the work.
-
8/8/2019 Neha Rajpal-55
3/7
Subcontracting, while prevalent in the construction industry, is also
used in a number of other industries.
Subcontracting is also important for manufacturers making anumber of products from complex components.
Subcontracting offers a number of advantages:
First, it allows work on more than one phase of the project to be
done at once, often leading to a quicker completion.
Second, because subcontractors already have the expertise and
equipment to provide the service. it is often much cheaper for them
to do the work than a general contractor who may not have that
special expertise.
Finally, the subcontractor is usually able to work with a general
contractor on more than one project, thus creating a savings for
both in the long run as a relationship is formed.
-
8/8/2019 Neha Rajpal-55
4/7
-
8/8/2019 Neha Rajpal-55
5/7
THE BENEFITS OF SUBCONTRACTING TO MAIN CONTRACTORS:
A. Cost reduction: There are a number of reasons motivating companies to
subcontract as part of a new mixture of overlapping strategic priorities.
B. Higher Quality: Secondly, the search for higher quality products with high
reliability in a growingly sophisticated environment pushes companies to
subcontract.
C. An efficient mechanism to respond to demand fluctuations: Thirdly, the
availability of products/raw materials is an additional reason why companies
decide to source internationally.
D. Accessing regions with potential growth prospects: Finally, international
subcontracting offers commercial opportunities by penetrating markets with
growth prospects.
-
8/8/2019 Neha Rajpal-55
6/7
THE BENEFITS OF SUBCONTRACTING TO SUBCONTRACTORS:
A. Higher productivity and efficiency: The benefits of subcontracting are also
plentiful for subcontractors, especially those of developing countries.
B. Economies of scale: By concentrating on a single and specialized activity or
discipline, subcontracting service providers can gain economies of scale
whilst at the same time further the cost advantages they offer to original
equipment manufacturers (OEMs).
C. Technology transfer: Subcontracting arrangements act as very efficient
mechanisms and tools for the technological enhancement of small and
medium-sized enterprises. By engaging in an active collaborative
agreement with specific customers, suppliers and subcontractors benefit
from a large amount of technology transfer.
D. Risk mitigation: The most recent thinking concerning subcontracting
relates to risk mitigation. It is argued that one of the reasons for
engaging in subcontracting arrangements is rooted in the need to reduce
business risks.
-
8/8/2019 Neha Rajpal-55
7/7
THE INDUSTRIAL SUBCONTRACTING AND
PARTNERSHIP EXCHANGE (SPX) OF PUNE has a widevariety of 359 subcontractors and suppliers registered inits database. The breakdown is as follows:
1) AutomotiveComponents(10)
2) SheetMetalIndustries-PressParts(56)
3) MachiningIndustries(44) 4) ForgingIndustries(11)
5) CastingIndustries(11)
6) MetalWorkingIndustries(65)
7) ManufacturingofMachinery&Equipments(53)
8) RubberIndustries(27) 9) PlasticIndustries(29)
10)Electrical & Electronics Industries (50)
11)Miscellaneous (3)