Subcontractors vs. Contractors

Sub Contractor Definition:

A subcontractor is an entity hired by a contractor to undertake a specific activity in a construction project. Subcontractors sign deals with contractors – not clients.

Quite often, a subcontractor specializes in one specific area of construction e.g., roofing.

Difference Between Contractor and Subcontractor

The difference between a contractor and subcontractor is that a contractor is hired by a client to undertake a project while a subcontractor is hired by a contractor to complete a task.

Let’s discuss each of the two entities in details.

What is a Contractor?

This is a person or company that operates by obtaining tenders for construction works.

A contractor negotiates for deals with the client, and later seeks and pays subcontractors who assist him to undertake the project.

What is a Subcontractor?

Subcontractors often specialize in one specific area of construction and are hired by contractors to complete a project.

They negotiate for deals with the contractor and not the project owner.

It is also common to find sub contractors teaming up with contractors to negotiate for large projects that include the subcontractor’s area of specialization.

Drawbacks of Subcontracting

While most subcontractors are usually quite experienced in their specialty, contractors must make careful choices when hiring a subcontractor to avoid losing time and money.

Rogue subcontractors are known to display unprofessional behaviour at work – including abandoning a project – since they are not answerable to the client.

RELATED: The 5 Steps to Hiring a Contractor

If this happens, your reputation will be at risk. You may also find yourself in the wrong side of the law if an unhappy client decides to sue for breach of contract.

Besides, if a subcontractor does a shoddy job, it is the responsibility of a contractor to look for another subcontractor to clean up the mess and get the job done properly.

Key Takeaways

As a contractor, you should only work with a sub contractor that has a reputation for quality workmanship and honesty when dealing with fellow business associates.

Subcontractors should act professionally to win trust and reputation among contractors.

That said, working with subcontractors is a great way for contractors to improve their efficiency and profits, while creating happy customers.

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