What does the term “subcontractor” mean?

The term “subcontractor” refers specifically to a contractor who specializes in a particular field of work and is hired by a general contractor to complete a portion of a larger project. This definition is central to understanding how construction projects are typically organized. In the construction industry, general contractors often take on the responsibility of managing the overall project and then engage subcontractors to handle specific tasks that require specialized skills, such as electrical work, plumbing, or HVAC installations.

This arrangement allows general contractors to efficiently manage diverse expertise required for different aspects of a project while maintaining oversight of the entire operation. Subcontractors are usually paid by the general contractor, not the client directly, which distinguishes their role further. By understanding this definition, it becomes clearer how projects are segmented into manageable parts and how collaboration among different specialists is essential for successful project completion.