What’s is a Contractor ?

                                                                        

(Pragma,2024)

First we check what is the type of contractors.mainly hear we can identify two type of contractors.

Ø   General Contractor

Ø   Sub-Contractor

(BigRentz ,2021)

 What’s is a General Contractor?

A general contractor is legally engaged with the owner or developer and takes responsibility for the entire construction project from start to finish. 

They work directly with the project owner and cross-channel teams, including government authorities, local building authorities, designers, architects, engineers, and suppliers.

In addition, general contractors are in charge of hiring and managing subcontractors , specialty contractors, and licensed trades if needed.

Some essential things to know about general contractors include:

• General contractors are responsible for all the materials, equipment, labor, and services needed for the project, including permits, inspections, and enforcing the project’s quality, safety, and standards.
• They manage the construction site and coordinate with onsite and offsite teams to meet the project owner’s goals.
• Many general contractors self-perform their contracts and only hire a few subcontractors.
• Others subcontract nearly all of their work, assembling project teams with the skilled trades they need depending on the requirements of each project.
• Successful general contractors stay abreast of new industry developments and use all the tools at their disposal, including project management software, to keep their projects on track.

(Rajan ,2023)

 

Contractors are professionals who provide skills or services to companies for a fixed period. They may be contracted for a set number of hours, a specific time frame, or for a project’s duration.

Contractors can be self-employed, work independently as sole traders, or run their own limited company. Independent contractors work for themselves and source their clients.

 

However, an umbrella company or agency can also employ contractors. Those who work for a company may not have to find their clients, as they can work with clients sourced by the company. The umbrella company will also pay the contractor and their taxes.

 

Whether working through an agency or independently, contractors can work on one or multiple contracts simultaneously. And with transferable skills, contractors can often work with various businesses

(Still , 2020 )

 

According to Andreou ,(2024) Contractor definition is, You've been thinking about making the leap from employee to self-employed. If contracting is one of the options you're considering,

We'll run you through the basics, including what is a contractor, what it means to be a contractor, how it differs from full-time employment and the type of business structures that contractors typically choose.

( Andreou ,2024)

 

What is a Subcontractor?

A subcontractor is a person, team, or business that is slated to do a certain part of all of another’s project or contract. Often, a subcontractor has a certain field of expertise or task that they specialize in and which is what they are hired for.

(Gausch & Manawis ,2023)

 

Also Subcontractor definition can express as,  Subcontracting is the practice of assigning, or outsourcing, part of the obligations and tasks under a contract to another party known as a subcontractor.

Subcontracting is especially prevalent in areas where complex projects are the norm, such as construction and information technology. Subcontractors are hired by the project's general contractor, who continues to have overall responsibility for project completion and execution within its stipulated parameters and deadlines. This can create a subcontractor risk for compliance.

KEY TAKEAWAYS

• Subcontracting refers to the practice of bringing in an outside company or individual to perform specific parts of a contract or project.
• In most cases, a company subcontracts another business to perform a task that cannot be handled internally.
• In the construction business, a general contractor typically organizes several subcontractors that specialize in specific trades.

 (HAYES , 2021)

According to Rajan ,(2023) “A contractor is a business or entity that agrees to perform work under the terms of a contract.”

That means contractors are independent businesses hired to perform a specific work or to produce a particular result according to the terms laid out in a contract. 

Hence the name, contractor.

Within the construction industry, contractors may take the form of a full-scale construction company with many employees or a single individual.

(Rajan ,2023)

 

 Conclusions

A contractor refers to a person who's hired to perform certain tasks for a construction project. Contractors include general contractors, subcontractors .Like business owners, contractors work for themselves. They essentially work as a manager and serve as the main point of communication for a construction project.Contractors may hire subcontractors to do part or all of the work for a construction project. When they hire subcontractors, they create subcontractor agreements which protect both them and the subcontractors.

 

References

Andreou C. (2024), What is a Contractor? (Online)

Available at : https://www.goforma.com/limited-company/what-is-a-contractor [Accessed on 24th march 2024]

BigRentz ,(2021) ,Contractor vs. Subcontractor: What Are The Key Differences? (Online)

Available at : https://www.bigrentz.com/blog/contractor-vs-subcontractor [Accessed on 24th march 2024]

Gausch K.& Manawis R. (2023), What is a Subcontractor? (Online)

Available at: https://safetyculture.com/topics/subcontractor/ [Accessed on 24th march 2024]

HAYES A. (2021), Subcontracting: How It Works, Benefits, Definition, and Taxation (Online) 

Available at : https://www.investopedia.com/terms/s/subcontracting.asp [Accessed on 24th march 2024]

Pragma,(2024), Contractor management (Online)

Available at :https://www.pragmaworld.net/practices/advisory/contractor-management/ [Accessed on 24th march 2024]

Rajan S.,(2023),What is a Contractor? Exploring Contractors, Subcontractors, and Trades (Online)

Available at : https://linarc.com/buildspace/what-is-a-contractor/ [Accessed on 29th march 2024]

Rajan S.,(2023), What is a Contractor? Exploring Contractors, Subcontractors, and Trades (online)

Available at :https://linarc.com/buildspace/what-is-a-contractor/ [Accessed on 29th march 2024]

Still S. (2020), What Is a Contractor? (Online)

Available at : https://www.chas.co.uk/blog/what-is-a-contractor/ [Accessed on 24th march 2024]