Prime contract

Business Definition for: prime contractor
Dictionary of Business Terms
prime contractor ...

General/Prime Contractors
A general building contractor's principal business is the performance of the construction work in accordance with the plans and specifications of the owner.

Prime Contract - A contract awarded directly by the Federal government.
Prime Rate - Interest rate which is charged business borrowers having the highest credit ratings, for short term borrowing.

General contractors conducting work for government agencies are typically referred to as prime contractors. The responsibilities of a prime contractors working under a contract are essentially identical to those outlined above.

By serving as the prime contractor in government-to-government sales transactions, the CCC facilitates exports of a wide range of goods and services from Canadian sources.

A business (often in the construction industry) that does not work directly for the customer of a project but rather for another GENERAL CONTRACTOR or prime contractor and performs that part of the work in the subcontractor's specialty, i.e.

subcontractor An individual or company hired by a general or prime contractor to perform a specific task as part of the overall project.

See also: Subcontract, Contractor, Expense, Job, Capital expenditure