If contractors are the managers, subcontractors are the workers. They tend to specialize in one area of the field, which allows them to complete your job quickly and properly. Hiring subcontractors offers numerous benefits to contractors, including the mitigation of project risks and reduction in the overall cost of the project.
Contractors and subcontractors work hand-in-hand to complete a construction project. The contractor acts as the manager of the project, serving as the central point of communication and organizer. The subcontractors complete the job. This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer. Lawyer must be part of our nationwide network to receive discount.
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About Us. Useful Links. Looking to hire a professional contractor for an upcoming home improvement project? Learn all about what a contractor is, the different types of contractors, and how they contribute to the home renovation process. A general contractor or GC is hired by a client to take a set of plans and ensure the building project is completed on a timeline. They coordinate and supervise workers and their tasks, order materials, and handle the paperwork and billing processes.
The GC makes a profit by marking up labor and materials costs by a percentage usually between 10 to 30 percent. This contract stipulation is also known as a cost-plus contract. Some handy homeowners may consider being their own general contractor. While most contractors fall under the category of general contractor, there are several different types of contractors, including construction managers, design-build contractors, and prime contractors.
A construction manager is typically hired to help during the design process, helping the team develop the project and even initiate the construction phase. Conversely, a design-build contractor stays with a project from start to finish. They are in charge of both designing the project and managing its development, and in some cases may even help with the physical construction or maintenance.
A prime contractor is a broad category that refers to the relationship between a contractor and their clients. Prime contractors and their clients develop long-term commitments that may include future or ongoing projects.
This is often seen in large-scale clients, such as organizations that frequently need construction work. While some general contractors will tackle parts of the building process, they will generally hire subcontractors to complete specific parts of the project. GCs often have long-standing relationships with subcontractors who possess specific skill sets, allowing them access to specialized expertise for even the most niche of project requirements.
Subcontractors tend to focus their work in a single area such as plumbing, electrical work, HVAC, and tiling or flooring.
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