What is the difference between a supplier and subcontractor in procurement of goods or works? Is the subcontractor accountable to the Purchaser?

In the context of procurement carried out by the several international organizations, the difference between and supplier/contractor and sub-contractor is as follows:

The purchaser issues the Purchase Order or Contract to one specific supplier/ contractor (main) only for certain jobs or supply works. As per terms of the purchase order, the supplier shall have to abide by the general conditions of contracts as well as special conditions of contract. The main supplier remains fully accountable to the Purchaser and the Purchaser makes payment for all works to the main contractor only. 

Now, it may so happen that for certain or minor specific job or supplies, the main contractor does not have the skill or resources or economy of scale. So, the main supplier/contractor with the approval of the purchaser contract out the specific portion of supplies/work to a third party, who is termed as “Sub-Contractor”. The Supplier shall have to notify the Purchaser in writing of all subcontracts awarded under the Contract if not already specified in the Bid. Subcontracting shall in no event relieve the main Supplier /Contractor from any of its obligations, duties, responsibilities, or liability under the Contract. 

Firstly,  Traditionally, the distinction between a supplier and a subcontractor was that a supplier provided goods only, whereas a subcontractor provided goods and services.

However, this apparently clear distinction has become blurred by the increasing complexity of the construction supply chain and the emergence of practices such as off-site fabrication in which the provision of complex fabricated goods might include elements of construction work that would previously have been considered a service carried out by a subcontractor.

The UK government has now broadened the term ‘supplier’ to mean any ‘…provider of services or goods either directly to the employer or to another supplier in a supply chain’ (ref PAS-2).  contractors, subcontractors, consultants, suppliers and service providers who might all now be described as ‘suppliers’.   

Secondly, the contract consists of a purchase order and these general conditions. In the event of conflicting interpretations, the purchase order shall take precedence over the general conditions. If the tender specifications and the contractor’s quote are annexed to the purchase order, the tender specifications shall take precedence over the quote and the contract shall take precedence over both. The several instruments shall be an integral part of the contract and, subject to the above, they shall be taken as mutually explanatory.

Completely agree with Mr. Fazlur Rahman

I agreed with Mr Fazlur in his answer.

Agree with miss. Ghada Eweda

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