Sub Contract And Assignment

[veekay72]

what is the legal and fundamental difference between sub contract and assignment ?

[Zacs-Master]

In what sphere of business?

[veekay72]

in service sector of underground mining

[Retrochic]

Sub Contract effectively means to replace or to substitute. Accordingly sub-contracting in contract law is a mechanism whereby one party transfers all of their obligations and benefits under a contract to a third party. for example A building contractor in the construction industry transfers a construction contract to a substitute contractor

An Assignment is whereby a right or obligation under a contract of one person is transferred to another person. The parties to the contract do not change meaning ,the relationships that exist between those engaged in contracts still exists between the original parties.

[Retrochic]

This will explain better -you can download a free copy

http://www.contractstore.com/Z143-assignment-subcontracting

[Zacs-Master]

A building contractor has responsibility for all sub contractors.

[Retrochic]

Zacs Sub-contractors take over certain responsibilities and obligations from the Building Contractor when taking on a job. These include Insurance,liability, employees etc. for the work they are doing.

[Zacs-Master]

A client on a building project appoints a main contractor whom he pays directly. All sub contractors are then paid by the main contractor. This indemnified the client from subcontractors going bust, and makes administration of the contract much simpler.

[Retrochic]

Zacs I'm leaving this. I'm a partner in a large building firm where we sub to larger companies and contract subbies in for smaller jobs. I am admin manager and deal with all CIS queries etc. Your inital remark should have read "A building contractor has SOME responsibility for all sub contractors.

The OP was about legal and fundemental differences within the Mining Insustry and I think the link I posted will probably clarify what he needs to know without clouding his thoughts on irrelevant info linked to the Construction Industry

[Zacs-Master]

I think we're talking about two different types of subcontracting. You seem to be talking about the main contractor using third parties to carry out off-site works (very common for joinery items which are then brought in and fitted by the MC) whereas I'm talking about subcontractors doing on site works, for which, in all my 30 years experience as a Contracts Administrator / Project Manager, the main contractor has both financial and CDM on site responsibility.

Veekay, as you can see it's a bit complicated. And I haven't even mentioned JCT contracts!

[veekay72]

Dear Zacs-Master
I would again like to clarify my question. What is the fundamental and legal difference between assignment and subcontract. Say for example , lets start with Assignment first. If a client A had agreement with B for any job can B assign it to C . And if so how A will have relationship with C . And what is the condition when same job is sub contracted ??? I want to know the fundamental and legal difference between two . As some of my clients are awarding me job under head Assignment and some under Sub-contract.

[Zacs-Master]

Veekay, unless we can see the actual contract it's impossible to give a specific answer but generally I would say:
I doubt very much that your contract would let you go to C as the client has assigned it to you (who I assume to be B). So A (the client, presumably) has no relationship with C)
I take it you're not in the UK so I've no idea what legal status an Assignment has.

[DTCwordfan]

Contracts can also have anti-assignment clauses written into them as well, depending on the jurisdiction.

[Peter Pedant]

retro

being right and getting slagged off for it is part of the fun of contributing to AB. Happens a lot - you have to be philosophical about it all

veekay's task is to decide which one is correct
For my own part - I thought this was a law essay and the answer was - consideration

[arielwilson]

In a Sub Contract And Assignment, one business contracts another to provide services or products in place of the original business. This can be done for many reasons, such as reducing costs or increasing efficiency. There are many different types of sub contracting arrangements
https://eazyresearch.com/services/phd-thesis-help