Tackling a single home repair is usually straightforward. Got a clogged drain? You call a plumber. Need a new outlet? You call an electrician. But what happens when your project is bigger, like a full bathroom remodel? Suddenly you need a plumber, an electrician, a tile setter, and a painter, all working in a specific sequence. This is where the general contractor vs. subcontractor question becomes critical. You need someone to manage the entire project, not just hire individual players. We'll help you understand their distinct roles and responsibilities.
General contractors and subcontractors are two of the primary parties typically involved in construction projects. But what is a general contractor? What is a subcontractor? And what’s the difference between the two?
Here, the My Site Plan team explains the key distinctions. So, when it comes to general contractor vs. subcontractor, you’ll know which professional is best for your next construction project.
Table of content
What is a general contractor?
A general contractor (often referred to as simply a contractor) is the person or company that takes responsibility for your construction project.
A general contractor does it all, from the initial development of project plans to managing the project’s labor forces. They take complete control of the project, liaising with clients, managing budgets, and ensuring that everything goes to plan.
General contractors are typically hired to run commercial or residential construction projects. They are almost always licensed by their state to help ensure that their work meets a specific set of code requirements.
Thinking of being your own contractor? Take a look at this post: Read this before you become your own contractor.
What do general contractors do?
Some primary examples of the work that general contractors do include:
Maintaining records of project details
Monitoring administrative details, like scheduling, payments, and cash flow
Overseeing the timeline of work
Ensuring worker safety and compliance with protocols
Ensuring work quality
Supplying all materials and labor needed for the project
Supplying the vehicles, tools, and other equipment needed for the project
Working directly with clients to negotiate deals
Hiring subcontractors (more on this below)
What Does A General Contractor Do?: A Guide For Homeowners
Read This Before You Become Your Own Contractor
Key Skills and Common Challenges
To succeed as a general contractor, you need more than just building expertise. Strong communication, critical thinking, problem-solving, and adaptability are essential. Professionals in this role must understand the construction industry well to keep projects on track. However, the job comes with significant challenges, like managing numerous materials and specialized equipment, often across multiple job sites at once. This complexity is a key reason why homeowners who attempt to be their own general contractor can run into more stress, delays, and potentially higher costs. It really highlights the value an experienced professional brings to a project.
What are subcontractors?
Now we know about general contractors, let’s find out: what does a subcontractor do?
A subcontractor is a specialist hired on a contractual basis by a general contractor. As part of the contract, a subcontractor will work in a specific niche of a construction project.
Subcontractors can be individuals or companies. However, their fundamental purpose is to complete smaller, more specialized tasks within a larger construction project.
There are several different types of subcontractors, each specializing in a different area of construction.
Subcontractors vs. Trade Contractors
You might hear the terms “subcontractor” and “trade contractor” used interchangeably, and for the most part, that’s okay. A trade contractor is a specialist in a skilled job, like electrical work, plumbing, or painting. In that sense, they are a type of subcontractor who brings a specific expertise to the project.
The key distinction is that while all trade contractors are subcontractors, not every subcontractor is necessarily a trade contractor. The term “trade contractor” specifically points to those who perform skilled trades. For example, a company hired only for debris removal is a subcontractor, but they wouldn’t be called a trade contractor. An electrician, however, is both a subcontractor and a trade contractor because of their specialized license and training.
Common types of trade contractors include:
- HVAC technicians
- Plumbers
- Electricians
- Carpenters
- Painters
- Masons
What does a subcontractor do?
Some primary examples of the specialized work that subcontractors do include:
A consideration when working with subcontractors
Subcontractors are skilled in a particular construction niche. But they can be incredibly expensive to hire.
Their hourly rates tend to be high, and they usually work as independent professionals. This means they don’t report to supervisors within a specific construction company.
These elements can make it more expensive to work exclusively with subcontractors, making it a good idea to have a general contractor to organize your construction project and personnel.
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Project stalled? Do you want to start construction, renovation, or demolition on your property but still need to get the required permits and other paperwork? Our team of professional experts at My Site Plan is here to help. Contact us today to find out how we can help get your project off the ground. |
A Warning About "Jack-of-all-Trades" Handymen
It can be tempting to hire a single handyman who claims they can do it all, from plumbing to framing to electrical work. While this might seem like a simpler, more budget-friendly option, it’s important to proceed with caution. It's wise to be wary of contractors who say they can do everything themselves. These "handyman" types often aren't experts in any one area, and the quality of their work might not meet the standards required for your project, especially if it involves permits and inspections.
This is exactly why the general contractor and subcontractor system is so effective. General contractors are experts at managing the big picture, while subcontractors excel in specialized tasks that require a high level of skill and knowledge. While subcontractors can be more expensive upfront, you're paying for their expertise. For complex jobs, relying on a team of specialists is the best way to ensure every part of your project is completed correctly and safely, saving you from costly mistakes down the road.
General contractor vs. sub contractor: What’s the difference?
Now that we’ve defined contractor vs subcontractor, let’s take a moment to simplify things even further. Here’s a summary of the key differences between these two types of contractors:
General contractors work directly with clients and oversee the entire construction project, from hiring laborers to acquiring materials and more. They can do anything from construction and renovation to repairs and are essentially in charge of everything, including hiring subcontractors.
Subcontractors are hired by and follow the instructions of the general contractor as contracted employees. They are hired to perform specialized tasks as part of a larger construction project. They typically work in one specific construction area, such as painting, plumbing, carpentry, or appliance installation. Subcontractors generally don’t have to work directly with clients or customers on a construction project unless the client is acting as their own general contractor.
Not every general contractor will choose to hire a subcontractor to assist with every construction job. Depending on the skills of a general contractor and their regular laborers, they may not require the services of subcontractors at all.
The GC and Subcontractor Relationship
Think of the general contractor as the director of a movie. They have the overall vision, manage the entire production, and are the main point of contact for the studio—in this case, the project owner or client. The subcontractor is like the special effects artist or the stunt coordinator. They are a specialist hired to execute a very specific, crucial part of the project. Subcontractors report directly to the GC, not the client. This creates a clear chain of command, ensuring the project stays on track and meets the GC's standards. The GC oversees the project schedule and coordinates all the moving parts, including the work done by various subcontractors.
Financial Risk and Responsibility
When it comes to the budget, the general contractor holds the bag. They assume the primary financial risk for the entire project, managing payments to suppliers, handling invoices, and ensuring the job stays within the agreed-upon budget. The GC is also ultimately responsible for the quality of all work performed, including tasks completed by subcontractors. If a subcontractor's work isn't up to par, it's the GC's responsibility to fix it. Subcontractors, on the other hand, are responsible for their specific scope of work and are paid by the GC. Their financial risk is generally limited to completing their contracted task correctly and on time, which is why their specialized services often come at a premium. This structure protects the client, as they have a single point of accountability in the general contractor.
Other types of contractors
Here are a few other types of contractors you might hear about while researching your construction project.
Prime contractor
A prime contractor is a contractor who works on government and large-scale construction projects.
Like a general contractor, a prime contractor oversees the whole construction project. However, unlike a general contractor, a prime contractor acts as the primary point of contact for a client or government agency.
Independent contractor
An independent contractor is a self-employed individual who chooses the projects they want to work on. They are responsible for managing their own business, managing their finances, and finding clients.
These contractors tend to offer a broad range of services, ranging from construction to remodeling to consulting to project management.
Specialty contractor
A specialty contractor is another name for a subcontractor. These contractors specialize in a particular area of building work.
Construction Manager
A construction manager is another key player you might encounter, especially on larger projects. While their role can sometimes overlap with a general contractor's, there's a key difference. Construction managers typically work for the property owner as an advisor and representative. They focus on the big picture, handling planning and coordination to ensure the project stays on schedule and within budget. Think of them as the owner's advocate, overseeing the entire process from a high level, whereas a general contractor is more involved in the day-to-day execution and management of the physical construction work and the tradespeople on site.
How to Decide Who to Hire
So, how do you choose the right professional for your job? Your decision really comes down to the size and complexity of your project. You might end up working with just one type of professional or all three, depending on what you need to accomplish. Before you even start looking for a contractor, it’s a great idea to have all your plans in order. Having a clear, detailed site plan for your permit application not only gets the project started on the right foot with your local building department but also gives you a solid document to share with potential hires. This ensures everyone is on the same page about the scope of work from the very beginning.
For a small, straightforward job that only requires one specific skill—like fixing a leaky pipe or installing a new light fixture—hiring a subcontractor directly is usually the most efficient path. However, if you're planning a larger project that involves multiple trades, such as a kitchen remodel that needs a plumber, an electrician, a cabinet installer, and a painter, a general contractor is almost always the best choice. They will manage all the moving parts, saving you the headache of coordinating different specialists and ensuring the project flows smoothly from one phase to the next.
When to Hire a Subcontractor Directly
Hiring a subcontractor directly makes the most sense for single-focus jobs. If your project requires just one area of expertise, you can go straight to the source. For example, if you're installing solar panels, replacing windows, or getting a new fence built, you can hire a specialized contractor for that specific task. This approach is often more cost-effective for smaller projects because you aren't paying for a general contractor's oversight. The key is that the job doesn't require the coordination of multiple different trades to be completed successfully.
When to Hire a General Contractor
You should hire a general contractor for any large-scale project that involves many different types of work. Think about a full bathroom or kitchen remodel, building a home addition, or even replacing a roof. These projects require a sequence of specialized tasks—demolition, framing, plumbing, electrical, drywall, and finishing work. A general contractor is the project manager who ensures each subcontractor comes in at the right time, that their work meets quality standards, and that the entire project moves forward without costly delays or communication breakdowns. They are the conductor of your construction orchestra.
Key Benefits of Hiring a GC
One of the biggest advantages of hiring a general contractor is having a single point of contact. The GC serves as the main link between you and all the specialized workers on the job site. Instead of you having to call the plumber, then the electrician, then the painter, you just have one person to talk to. This drastically simplifies communication and makes managing the project much less stressful for you as the homeowner. A good GC also has an established network of reliable subcontractors they trust, which can save you the time and risk of finding qualified tradespeople on your own.
How to Vet Your General Contractor
Once you decide to hire a general contractor, it's crucial to do your homework. Always check for proper licensing and insurance to protect yourself. Ask for a portfolio of their past work and a list of references you can actually call. One of the most important questions to ask is what work their own team performs and what tasks they subcontract out. This gives you a clear understanding of their hands-on involvement. A transparent contractor will have no problem explaining their process, providing a detailed contract, and outlining a clear payment schedule before any work begins.
Final factors to consider going forward
Understanding the key differences between general contractors and subcontractors is essential, especially if you plan to carry out any intensive construction projects soon.
The key distinction is that general contractors are in charge of almost everything, including hiring and managing subcontractors. Meanwhile, subcontractors usually specialize in a single area of construction.
If you’d like to learn more essential information about construction, demolition, or remodeling, you can read more on our blog. And, if you’d like help creating a site plan for your project, get in touch with the My Site Plan team today.
FAQs
How much do general contractors cost?
According to the latest data, general contractors cost between $300 and $500 per day. They will charge between $150 and $250 for every helper or laborer.
However, most general contractors give you a price for the whole project, taking into account the cost of materials, the scope of the project, and any subcontractors they need to hire.
When to hire a general contractor?
You might like to hire a general contractor in any of the following scenarios:
When you don’t have time to manage a construction project yourself
When you don’t already know which specialty contractors you want to hire
When you want to work with someone who’s licensed and insured
When you want a project done professionally
When you hire a general contractor, you can count on their construction expertise, industry connections, and project management skills. They help projects run smoothly and can save you both time and money in the long run.
How to hire a general contractor
To find a general contractor, you can check local directories, search the internet, and ask family and friends for recommendations.
Once you’ve created a shortlist, you need to talk to contractors about:
Their licenses and insurance
Their previous work (they should be able to show you pictures and provide the names of previous clients)
The scope of the project and their estimate
Everything that the estimate includes
Payment options
Try to meet with at least three general contractors before making your decision. You can also take a look at some of our other posts for more great advice:
Can a general contractor handle tasks typically assigned to subcontractors?
Yes, if a general contractor has the necessary skills and resources, they can perform tasks typically assigned to subcontractors. However, they often hire subcontractors to manage specialized work more efficiently.
When is it necessary to hire a subcontractor?
Hiring a subcontractor is necessary when you need specialized skills that the general contractor can’t provide. This could include things like electrical work, plumbing, or specialized carpentry.
How can I ensure a subcontractor's work aligns with my project needs?
Before hiring a subcontractor, you should:
Check they have specialized expertise in the task required
Verify their professional license(s) and insurance
Discuss their previous work to gauge their skills and if they’re a good fit for your specific project.
What are the common challenges of managing subcontractors?
Common challenges of managing subcontractors include controlling costs due to their independent pricing, ensuring the quality of work meets project standards, and coordinating their schedules with the overall project timeline.
When do you pay a contractor?
When you pay a contractor depends upon the contractor and the project scope.
For smaller projects, contractors may ask for a deposit and then a final sum upon completion.
For larger projects, contractors usually break project costs down so clients don’t pay for construction work in one lump sum. Instead, they create a schedule where clients pay in installments.
Read more: Contractor payment schedules: what's the best for my project?
This post was originally published on 2022-04-14 by Ryan Crownholm. It was updated on 2024-05-08 to reflect the most recent data.
About the author
Ryan Crownholm
Ryan is a construction technology founder and former contractor with 15 years of hands on experience in residential and commercial construction. He has been creating site plans for more than 25 years, supporting tens of thousands of homeowners and contractors across the United States. As the founder of MySitePlan.com, his work is grounded in real world permitting requirements, plan review feedback, and practical compliance standards used by local building departments.
Key Takeaways
- General contractors are project managers; subcontractors are trade specialists: Your GC is the main point of contact who oversees the entire project, from budget to timeline. Subcontractors are the experts, like plumbers or electricians, hired by the GC to handle specific, skilled jobs.
- Match the professional to your project's scope: Hire a subcontractor directly for straightforward, single-trade jobs like replacing windows. For complex renovations involving multiple specialists, a general contractor is the best choice to ensure everything is coordinated correctly.
- A general contractor provides a single point of contact and accountability: Instead of juggling multiple tradespeople, you communicate with one person. The GC is also responsible for the quality of all work, which protects you from costly errors and ensures the job is done right.
