Subcontractor

A specialized contractor hired by a general contractor to perform specific portions of construction work, such as electrical, plumbing, HVAC, or concrete.

What Is a Subcontractor?

A subcontractor is a company or individual hired by a general contractor to perform a specific trade or scope of work on a construction project. Rather than employing specialists in every discipline, general contractors assemble teams of subcontractors — electricians, plumbers, steel erectors, concrete finishers, roofers — each responsible for their portion of the build.

How Subcontracting Works

The project owner typically contracts with a single general contractor (GC), who then enters into separate agreements with each subcontractor. The GC is responsible for coordinating all subs, managing the schedule, and ensuring work meets specifications. Subcontractors are usually paid by the GC, not the owner, through a process tied to progress billing and retainage. In many jurisdictions, subcontractors have mechanic's lien rights that protect them if they aren't paid.

Why It Matters

The subcontractor model is fundamental to how commercial construction operates. Most GCs self-perform very little work — the majority is done by specialty subs. Understanding this structure is critical for project owners because subcontractor quality, coordination, and payment flow directly affect project outcomes. Issues like scope gaps between sub contracts, scheduling conflicts between trades, and payment disputes are among the most common sources of construction delays and claims.