What is the difference between vendor and subcontractor




















Continuing with the example, the landscaping company may hire subcontractors to build an interlocking driveway and buy the sod from a local vendor of gardening supplies. You define words in a prospective contract based on their pertinent use in the prospective contract. You must proceed contractually and systematically.

In order to do that you do not check at Wifcon. You check the terms of the contract, the FAR, a statute or another regulation, or a common dictionary, and you back up your analysis with valid references. So In order to answer your own question you first determine whether the RFP is for commercial items or for noncommercial items.

If so, then see paragraph e , Definitions, which refers you to FAR If the contract is for noncommercial items, then it, too, should include FAR When a solicitation provision or contract clause uses a word or term that is defined in the Federal Acquisition Regulation FAR , the word or term has the same meaning as the definition in FAR 2.

So now ask yourself, what "subcontracting goals" am I thinking about? Are they specified somewhere in the RFP or elsewhere? If in the RFP, is the term used in a solicitation provision or contract clause? If so, what does the provision or clause say? Does it define the term or does it refer me to a statute, such as the small business statutes in Title 15 of the United States Code, or to another regulation, such as the small business regulations in Title 13 of the Code of Federal Regulations.

If so, does the statute or regulation define the term? If not, then what do common dictionaries say? THAT is how a contracting pro should begin the search for the meaning of a prospective contract or an official word, not by "gathering" something from Wifcon posts that came from who knows who and who knows where, but through contractually-oriented and systematic search.

I don't know what subcontracting goals you're talking about, but if you're talking about the ones from FAR Subpart Pursuant to that definition, subcontract and vendor are one and the same.

See also FAR I for one, am not a contracting professional, though I have experience in prime contract administration, subcontract administration, and procurement all from the contractor's side.

If anything, I'm a compliance professional, in that I get paid for helping contractors comply with various solicitation provisions and contract clauses as well as some statutes upon occasion. As has been made frequently clear on this site, questions will receive answers. Companies enter into subcontracting arrangements usually because they do not have the expertise in-house, and they need the services for a period that is not long enough to justify hiring a full-time person.

For example, a residential-construction company may hire subcontractors to complete the landscaping on its houses, while the prime contractor on a defense project may hire subcontractors for writing technical manuals. Subcontractors may have their own vendors and subcontractors. Continuing with the example, the landscaping company may hire subcontractors to build an interlocking driveway and buy the sod from a local vendor of gardening supplies.

Companies normally set performance goals for their vendors, such as on-time delivery and quality. Some companies perform spot inspections of vendors' facilities to audit quality and security procedures.

Subcontracts are usually formal legal documents, which may include bonus and penalty clauses for exceeding or falling short of specifications. Subcontractors usually pay for their own expenses, although some work at client sites. On the other hand, a sub-contractor carries duties as specified by the general contractor. Vendors are expected to deliver specifies, quality and timely products failure to which the goods are rejected.

On the other hand, sub-contractors are expected to deliver as per specifications failure to which may attract penalties or legal action. A vendor is a person who sells and supply products to a wide range of customers including individual as well as large companies. On the other hand, a sub-contractor is a person or an entity who work under a prime contractor. While these two may have various differences, they are important in ensuring the smooth running of the supply chain.

Difference Between Vendor and Subcontractor. Difference Between Similar Terms and Objects. MLA 8 Njogu, Tabitha.

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Upvote 0 Views Followers 5. Write an Answer Register now or log in to answer. Upvote 0 Downvote 0 Reply 0. Simply put vendors produce regular and consistent products at which they are specialized and have a market for and rely on multiple clients for sustainability, Sub Contractors however though working under prime contractors are people that do custom jobs and specialized jobs from scratch.

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