Contractor Vs Subcontractor: The difference

Whenever you plan on having a construction job completed, you will need to seek the services of both the contractors and subcontractors. Well, both of these people usually have roles to play, very important roles for that matter. But, even at that, most of us still can’t be able to tell the difference between the two. For that reason therefore, let us go a bit deeper and try to understand what the difference is and if at all there are any similarities between them. We are going to start by looking at the role of a contractor.

A contractor

Again, let us use a construction work as an example. You see that company or person you awarded the contract to, the one you are paying to see that your construction job is completed? That is the contractor. In other words, a contractor is a person or company that is always looking for contracts, gets them and completes them at a certain fee.

Well, contractors can also be considered as business owners since they can work independently on their own. They also have the ability to find and maintain their own clientele and take care of any deals they find. When working with contractors, what you get from them is their skills and services, this including the materials to be used and labor.

This of course will only be possible after an agreement is reached between both parties. When it comes to the profits, the contractors are expected to make a higher amount than everyone in the whole setup. This is simply because they are the ones that oversees every operation in the whole project. Well, on the other hand, they are also held accountable in case the project didn’t turn out as expected.

A subcontractor

Well, subcontractors also operates pretty much as contractors only that they don’t look for deals but rather completes a job for a company with a deal already. This is more of contractors awarding a contract to other small contractors hence the name “subcontractor”.

These people however offers more specialized services to clients compared to the contractors. Remember when we said the contractor oversees every operation happening within the project? Well, they are the ones responsible for bringing in the subcontractors after sealing a deal with the client. This is basically the main difference between the two.

A subcontractor simply works for the contractor. However, it is their specialization in different areas that makes them work together in different construction projects. It is however very much difficult for subcontractors to work independently and therefore makes it much important for them to have a great and active network since it gets easier for them to find a job when they have connections with more contractors.

Working with contractors and subcontractors makes the work much more easier as the progress can always be based on milestones or just smaller tasks. Once a milestone is achieved, they can jump to the next. If you were among those who didn’t know the difference between a contractor and a subcontractor, I hope this was able to help.

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