Subcontractor

Subcontractor is a contractor hired by a general contractor (prime contractor) to perform a defined portion of a construction project. Subcontractors provide specialized labor and services—such as electrical, plumbing, roofing, HVAC, or carpentry—and typically do not contract directly with the project owner. Instead, they enter into a subcontract with the general contractor, who holds the overall contract with the owner.

The subcontract outlines the scope of work, schedule, quality standards, safety requirements, and payment terms. It often includes flow-down clauses that transfer applicable obligations from the prime contract to the subcontractor. Subcontractors must comply with licenses, insurance, and performance bonds as required by the project, and must coordinate with other trades through the general contractor.

Contracting and management: Bids or prequalification establish eligibility; the general contractor awards a subcontract and integrates the work into the project plan. Subcontractors submit change orders for any deviations, and progress payments are typically tied to milestones. Retainage, if used, withholds a portion of payment until completion; some jurisdictions regulate prompt payment and mechanics’ liens.

Risk and liability: Subcontractors assume responsibility for their workmanship and for meeting safety standards; they may face consequences for delays or defects. Licensure, insurance (general liability, workers’ compensation, excess), and bonding are common prerequisites.

In practice, the subcontractor arrangement helps distribute expertise, manage risk, and facilitate coordination on complex projects. The term can also apply to non-construction contexts where a specialty provider is contracted to perform part of a larger project.