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What is first Tier supplier?

Updated: 4/28/2022
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A company that sells and delivers materials or goods to a customer's factory or shop.

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13y ago
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Q: What is first Tier supplier?
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What is a sub tier supplier?

A sub-tier supplier is a supplier for the sub-tier contractor on a contractor jobsite. To understand this fully, you must understand the project organizational chart. The owner hires a general contractor to manage a project that the owner has had an architect/engineer design. The general contractor then contracts subcontractors to manage parts of the contruction the gc cannot do such as mep, hvac, sitework, ect. The subcontractor is responsible for ordering supplies for their specialty through their key suppliers. On larger scale projects, the subcontractors will contract their own subs which are known as tier-subs. These tier subs will end up ordering supplies for their individual construction on the job (example: a mechanical subcontractor contracts a sheet metal company to do duct work.) The suppliers which these tier-subs order through are known as sub-tier suppliers. I hope I answered your question.


What is a sub-tier supplier?

A sub-tier supplier is a supplier for the sub-tier contractor on a contractor jobsite. To understand this fully, you must understand the project organizational chart. The owner hires a general contractor to manage a project that the owner has had an architect/engineer design. The general contractor then contracts subcontractors to manage parts of the contruction the gc cannot do such as mep, hvac, sitework, ect. The subcontractor is responsible for ordering supplies for their specialty through their key suppliers. On larger scale projects, the subcontractors will contract their own subs which are known as tier-subs. These tier subs will end up ordering supplies for their individual construction on the job (example: a mechanical subcontractor contracts a sheet metal company to do duct work.) The suppliers which these tier-subs order through are known as sub-tier suppliers. I hope I answered your question.


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