Contractor or Subcontractor: What's the Difference?

Hiring a Contractor

Updated June 25, 2024

Contractors and subcontractors are the two parties responsible for completing demolition, remodeling, and construction projects, and while they often work in tandem to complete a project efficiently, there are a few important differences between them that homeowners—or anyone hiring a contractor—should know.

Understanding the role of contractors and subcontractors in the demolition or construction process can help you make better choices when it comes to hiring the right company for your project.

In this article, we'll discuss...

What a Contractor Does
What a Subcontractor Does
Differences Between a Contractor and Subcontractor
How to Be Sure You Hire the Right Pro

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difference between contractor and subcontractor infographic

What Contractors Do

A contractor is typically the main person or company that a customer hires to handle a demolition, construction, or major remodeling project. They are the person or people responsible for overseeing the entire job, including planning, managing resources, obtaining contracts, and ensuring work is carried out properly and according to the agreed-upon terms.

A contractor’s main goal is to build and maintain a solid reputation with their customers so that their business can be successful.

For a demolition project, a demolition contractor is the main contractor and there typically aren't subcontractors, unless an asbestos or lead removal specialist, or a storage tank removal specialist, is required. For a more complex project, like a new home build, there is the main contractor—the general contractor—who oversees the project and everyone working on it, and there are subcontractors who handle the different individual aspects of the work.

For example, a demolition contractor specializes in demolition work and might be called in as a subcontractor during a home renovation to gut out the home's interior and tear down the old detached garage, while a design-build construction contractor might be the general contractor, responsible for hiring the interior remodel and garage rebuild subcontractors, a plumber and electrician, etc.

What Subcontractors Do

A subcontractor is a type of contractor, and a specialist in their field, hired by a general contractor to perform a specific task as part of a larger project.

These contractors specialize in providing a particular service and work on a contractual basis, just like any contractors you'd think of.

The main and arguably only difference between a subcontractor and a contractor is who hires them and who they report to. A contractor is hired by the customer and works directly with them, while a subcontractor is hired by the contractor and works directly with them.

For example, a contractor hired for a large commercial demolition may hire a subcontractor to remove an oil tank if one exists on the property.

This not only ensures the oil tank is removed properly, but it also frees up the contractor to work on other aspects of the project while the subcontractor completes the oil tank removal, which equates to more efficient and safe results.

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Differences Between Contractors and Subcontractors

As previously mentioned, the main difference between contractors and subcontractors is that a contractor is hired by the customer and works directly with them, while a subcontractor is hired by a contractor and deals with them, not the customer.

Contractors must cater their business towards their customers primarily, advertising to them and networking with them in order to generate leads. Subcontractors, on the other hand, have to cater their business more towards contractors and networking with them because that's who has work for them.

Because of this, contractors tend to be more customer-oriented than subcontractors, while subcontractors are highly specialized experts that know the ins and outs of every aspect of their expertise, whether it be insulation, demolition, plumbing, electrical, etc.

Another way to look at it is that contractors need to constantly be assessing a project’s “big picture,” while a subcontractor is highly focused on their specific area. A contractor must have a keen eye on a project's progress, safety, and accuracy, as well as the financial side of things, and keeping the customer up to date and happy. A subcontractor only has to focus on their specific goal.

So, while subcontractors are extremely effective and specialized workers, a contractor is responsible for keeping customers happy by ensuring everything is organized and properly managed at all times.

How to Be Sure You Hire the Right Pro

Regardless of your project, make sure you hire the right person for your project by getting multiple quotes from contractors in your area. This will ensure you hire the right person to do the work without overpaying, and that you get the best customer service, too.

Hometown makes it easy to find local demolition experts in your area that can perform the work you need, read customer reviews, and request quotes from as many contractors as you'd like.