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Subcontracting to external agency is done in order to bring in relevant expertise and skill in the project. If subcontracting brings efficiency and economy, 70-80 percent subcontracting is OK. In this case, the main contractor shall have to coordinate with the external agencies to keep synergy and schedule and manage risk carefully.
However, for executing multi-dimensional project, another workable form is Consortium where several contractors work together under single contract and share the risk and return jointly
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Yes they can, but not much profitable
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Often subcontracting to external agency is required to bring in relevant expertise and skill for certain nature of work within the project. Most instances 70-80% of Project being subcontracted will not be viable and cost effective; it will be good that such project is not undertaken.
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If the inhouse expertise is missing, even all of project can be subcontracted, with only one person inhouse managing the project. Smart companies learn from subcontracting by asking subcontractor to follow a competence transfer process.
The work done by hiring a subcontractor is considered an effective way to win time in execution speed and cost effective