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Question

What is subcontracting and why do municipalities prefer to give their work on contract?

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Solution

Instructions:
Explain what is subcontracting and explain why municipalities prefer contracting their work rather than directly doing it by themselves.

Solution:
  • In order to improve, several municipalities across the country are hiring contractors to collect and process garbage. This is called subcontracting.
  • This means that the work that was earlier being done by municipality workers is now being done by a private company.
Municipalities prefer to give their work on contract because:
  • Subcontracting can aid in the completion of major projects - When a company needs to take on larger projects, subcontractors or team partners can assist in the completion of the project on schedule.
  • When a company requires more personnel for a significant project, employing subcontractors is typically a more cost-effective option than hiring new staff.
  • Subcontractors give knowledge - They will deliver excellent services and complete the task promptly and efficiently.
  • Increased productivity is the most significant advantage of working with a subcontractor.

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