what is a tier 1, tier 2 contractor?
contractors in gulf oil cleanup
- 1 decade agoFavorite Answer
If you get awarded the contract to do something, but you can't do everything that's required, you can sub-contract with a different company. For example, I might employ a master builder to make me a new house, and I pay him, but he arranges to have an electrician, a plasterer and a kitchen fitter come and work for him for a few days each.
This idea of services being provided by people at different levels of subcontracting can be considered tiers... like the tiers in a wedding cake.
At the top level (tier zero, if you like) you have the main contractor. He employs the kitchen fitter, and I don't necessarily have to know anything about it. The kitchen fitter is tier 1, and is chosen by the guy at tier 0. If the kitchen fitting company decides they need a specialist to do some tiling or something, they will employ a tiler for a day or two... and that's tier 2.
In the gulf oil spill scenario, BP is at tier zero, Transocean Ltd is a tier 1 contractor, and anybody who supplies goods or services to Transocean is tier 2. For example, maybe Hyundai Heavy Industries, who built the Deepwater Horizon drilling rig.
- Anonymous5 years ago
You know... the British Royal crown lost the Colonies using German mercenary soldiers. The only thing positive about your statistics is maybe Corporate American is on the verge of massive failure and we stand a chance of getting our country back. This idea we can just outsource everything and keep the consumers happy with low, low wally world prices is a joke. The failure of the Bush administration was not reinstalling the military draft.
- 5 years ago
I don t believe that s right