Final answer:
The correct definition of subcontract is an agreement between the subcontractor and prime contractor, wherein the subcontractor is hired to complete specific parts of a larger project.The correct option is D.
Step-by-step explanation:
The best definition of subcontract is an agreement between the subcontractor and prime contractor. When a company takes on a large project, they often hire other companies to complete specific portions of that project. This practice allows the prime contractor to focus on the management and completion of the main project, while the subcontractor handles the details of their designated portion. The subcontractor is typically selected because they have specialized skills or capabilities that the prime contractor does not possess or because subcontracting can be more cost-effective.
A subcontract is not an agreement between the subcontractor and the architect, material supplier, or owner directly, but with the company that was originally contracted, or the prime contractor, to complete the entire project. Therefore, the correct answer is D) An agreement between the subcontractor and prime contractor.