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What is a Subcontractor? A subcontractor is a type of contractor. Subcontractors also work on a contractual basis, and they also offer a particular set of skills which they perform for customers. The key point about subcontractors is that they form agreements with the contractor, not with the customer.

Subcontractors help contractors complete a project Subcontractors, on the other hand, are companies or people hired by the contractor to do specific tasks or services in their area of expertise. A general contractor may hire an electrician, plumber, and carpenter for a construction project.

Main Contractor ? the party to the main contract who has agreed to carry out the work that the Customer needs. Subcontractor ? the third party who has been subcontracted by the Main Contractor to carry out some or all of the work that the Main Contractor has agreed to carry out under the main contract.

Time(s) of payment. Payment amount. Conditions of payment linked to performance/successful completion of the project. Any conditions of payment to the subcontractor linked to the contractor receiving payment from the project owner/client.

Contractor agreement is a contract between a company and a contractor hired by them. A contractor performs specific project/tasks. It defines the overall terms and conditions regarding the work undertaken by the contractor as well as their role, duties, and obligations.

The main difference is who they are employed by and how hands-on they are. Put simply: Home (or business) owners hire a contractor to carry out an entire project. Contractors hire (or subcontract) subcontractors to do most of the hands-on work.