What is the practice of "subcontracting"?

Subcontracting refers specifically to the practice where a contractor hires another company, known as a subcontractor, to carry out a portion of the work required under a contract. This is a common practice in the contracting world as it allows primary contractors to leverage specialized skills or additional resources that they may not have in-house. By subcontracting, contractors can also manage workloads effectively, ensure project completion by drawing on external expertise, and enhance operational efficiency.

The definition of subcontracting is clearly distinguished from the other options provided. For instance, assigning project tasks to in-house teams pertains to internal resource allocation rather than involving external entities. Outsourcing all contract obligations to different vendors suggests a broader delegating of responsibilities that may not fit the specific definition of subcontracting, which only involves a part of the work rather than an entire contract. The assignment of rights to a contract to another entity refers to contract rights transfer, which is a different legal process than subcontracting work. Thus, the selection of the practice of subcontracting as hiring another company to perform part of the work accurately captures the essence and common application of this practice in contract management.