Subcontractor (Role)
The specialty trade firm that builds a defined portion of a project for the contractor.
Quick Answer
A subcontractor is a specialty or trade firm hired by a general contractor to perform a defined portion of a project, such as concrete, electrical, mechanical or roofing. The subcontractor works under a subcontract with the general contractor, not the owner, and is responsible for pricing, staffing, installing and warranting its scope.
The Full Picture
General contractors typically self-perform a limited amount of work and rely on subcontractors for most trades. Each subcontractor specializes in a field, supplies the labor, materials and equipment for its scope, and coordinates its work with other trades on site. The subcontract defines scope, price, schedule, insurance, payment terms and responsibilities.
During preconstruction, subcontractors submit proposals against a bid package. Their bids rarely look the same: each may include different assumptions, exclusions, qualifications and alternates. General contractors compare these proposals to understand what each one actually covers, a step often called bid leveling, before selecting a trade partner.
After award, subcontractors submit shop drawings and submittals, order materials, mobilize crews and follow the project schedule. They are usually bound to the general contractor by the terms of the subcontract, and the prime contract's requirements are often flowed down to them.
The relationship has legal and financial stakes. Subcontractors may be required to carry insurance and provide bonds, and payment is typically tied to progress and the schedule of values. Lien rights and prompt payment rules vary by state, so contract terms matter.
Real Examples
Common Misconceptions
People assume: A subcontractor works for the owner.
Actually: A subcontractor has a contract with the general contractor, not the owner. The owner usually has no direct contractual relationship with subcontractors.
People assume: The lowest subcontractor bid is always the best deal.
Actually: Bids can differ in scope, exclusions and qualifications, so a low number may leave work uncovered that the general contractor must pay for later.
Frequently Asked Questions
What is a subcontractor in construction?
A subcontractor is a specialty trade firm hired by a general contractor to perform a specific part of a project, such as electrical, plumbing or concrete work, under a subcontract.
What is the difference between a subcontractor and a general contractor?
A general contractor holds the contract with the owner and manages the whole project. A subcontractor holds a contract with the general contractor and performs a specific trade scope.
Do subcontractors have a contract with the owner?
Normally no. Subcontractors contract with the general contractor, though owners may require approval of key subcontractors and some projects use direct owner contracts for specific work.
What do subcontractors typically provide?
Labor, materials, equipment, supervision, submittals, insurance and warranty for their scope, along with coordination with other trades.
What is the difference between a subcontractor and a supplier?
A subcontractor performs work on site, while a supplier only provides materials or equipment. Some firms do both, supplying and installing a product.