How does a subcontractor work with an employer?

HomeHow does a subcontractor work with an employer?
How does a subcontractor work with an employer?

A general contractor will hire subcontractors for you when they are necessary for the project. You can often negotiate prices and project details with a good general contractor.

Q. Do general contractors hire subcontractors?

Subcontractors are hired on a contractual basis by general contractors as specialists to work on a specific niche of a construction project. Similar to contractors, a subcontractor can be a person or a company.

Q. Are contractors subcontractors?

A subcontractor is technically another contractor, who instead of dealing with the primary client, will deal directly with the contractor. A subcontractor may be an individual contractor known as an independent contractor or may be a business.

Q. Why do contractors hire subcontractors?

Hiring subcontractors allows your business more flexibility than if you were to hire new, permanent employees. Rather than bringing them on for long term work, you hire the contractors to work on a few short term projects and then part ways. Be forewarned, sometimes they turn into a lifetime business relationship.

Subcontractor performs labor for a general contractor, rather than the employer who employed the general contractor. Usually, each subcontractor is paid a portion of what the contractor receives for the labor.

Q. Can a subcontractor employee file a personal injury lawsuit?

Alternatively, a subcontractor’s employee may be able to file a negligence lawsuit against the general contractor. Construction sites may usually not just be staffed with employees of the general contractor. Instead, the general contractor may hire various subcontractors to handle certain discrete tasks.

Q. What’s the difference between an employee and a contractor?

If you are a head contractor, it is likely that you will engage someone else to perform a specific part of the work that you have been hired to complete. This often occurs in the construction world, but may occur in other areas too. In this article, we highlight the differences between employees and contractors.

Q. How are independent contractors paid by an employer?

Independent contractors labor for themselves, but are employed by an employer to do a project or for a specific period of time. These contractors set their own rates and schedules for labor and payment. Typically, they are paid through the accounts payable department at a company.

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Understanding Subcontractors

When is someone a subcontractor?This video helps simplify the difference between a deemed subcontractor and a real subcontractor.

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