Sub-contracting

Sometimes, the most commonly used method of procuring the item is to sub-contract the manufacture of the item to a few properly chosen sources. A good example is selecting a few competent brick manufacturers to supply for the project. In this instance, the intent is to obtain high quality items while taking commitment from the manufacturer to earmark a minimum capacity to their work. Thus, in sub-contracting, the items are available at short notice. This is another variant of the rate contract.