You don’t have to know everything, and the best leaders are the ones who know when to ask for help. When it’s time to hire outside help, a contractor is one of the best resources you can utilize. 

But what if the job is more significant than a one-person show? That’s where subcontractors come in.

Keep reading to find out:

• What a subcontractor is
• What a subcontractor does
• Subcontractor benefits that help your business

What Is A Subcontractor?

You often hear “contractor” and “subcontractor” interchangeably, but they are not the same. 

First: What Is a Contractor?

An independent contractor is a contracted hire who is not a full-time or permanent employee for your business. Contractors are self-employed and hired for a specific purpose because they are experts in their field.

Types of contractors by areas of expertise:

• Construction industry
• Medical industry
• Financial industry
• Electricians
• Computer science
• Sales
• Food service

While subcontractors are often in these same industries, subcontracting roles and responsibilities are what set their titles apart.

Subcontractors: What Do They Do?

A subcontractor is someone the contractor hires to work on a project. Similar to the contractor, they are not full-time or permanent employees of your business. They are also employed to perform a particular service.

Contractors will hire subcontractors if:

• The project is too large for one person
• The project requires a specialized skill

For example, say you are a small business owner and will build your space from the ground up. Since you are not a construction expert, you will need to hire a general contractor to oversee the construction project. 

While the general contractor is an expert in their field, they will not be able to complete the entire job themselves, nor will they necessarily be versed in every single little task and skill that needs to be done.

Therefore, you can expect the main contractor to bring subcontractors on a contractual basis who specialize in skills such as:

• Electrical work
• Interior and exterior painting
• Installing floors, tiles, drywall, or other materials
• Installing plumbing
• Hooking up technology

Because a subcontractor specializes in a particular skill set, their construction contract will not last for the entire project. When working with a contractor on a specific project, be prepared to have many people coming to and leaving the job site throughout. It is crucial to contract a project manager you trust, so you can rely on them to employ honest, reliable, and hardworking subcontractors. 

When discussing contractors and subcontractors, the terms are often used in construction. However, there are other areas where your business can implement them.

Imagine you are working on building a brand for your business. You have chosen to consult outside help through a marketing firm. The firm has created several still graphics and images to post to your business’s social media.

While you are pleased with the firm’s work, you’ve been reading about why businesses should market with video content. If that marketing firm does not have a video editor on its team, it will need to hire a subcontractor to come on board and create that content. 

Luckily for you, you will not have to take on the burden of that hiring process. We’ll talk more about this later. 

Subcontractor Lines Of Communication

You will have little communication when a subcontractor works on one of your projects. Instead, you will relay information through the contractor. It is the contractor’s job to delegate tasks to the subcontractor.

3 Benefits Of Subcontractors

Keep reading to see three benefits of subcontractors. 

1. You’re not responsible for hiring subcontractors
2. Subcontractors are Cost Effective
3. Subcontractors are Flexible

Are you running a small business? Always look for things that can benefit you and the best interest of your business. Subcontractors are one of those facets.

1. You’re Not Responsible for Hiring Subcontractors

One of the most significant benefits of having a subcontractor work for you is that they are not your responsibility. Of course, you hold a certain level of responsibility for everything in your business. 

However, with a subcontractor, you are not responsible for:

• Hiring subcontractors
• Onboarding or training subcontractors
• Individually paying subcontractors
• Overseeing or managing subcontractors
• Firing subcontractors

Again, a subcontractor answers to the contractor. This means that the chain of command runs through the contractor, so you’re (mostly) off the hook.

In addition to that, contractors are specialists in their fields. This means they have likely been in their industry for a while and accumulated a contact list of subcontractors. When your project requires a particular skill set, your contractor should know the right person for the job. 

2. Subcontractors are Cost Effective

Subcontractors are cost-effective because they are generally cheaper than full-time employees and can help an expert complete a project on time. Think about it:

• You do not have to provide employee benefits
• Subcontractors are temporary employees, so once their job is done, they’re done
• Subcontractors generally work on an hourly basis, so they are exclusively paid for hours worked
• Most subcontractors work more than one job, so efficiency is critical for them to keep up with the gig economy

3. Subcontractors are Flexible

Again, most subcontractors are a part of the gig economy. They don’t always keep to a set schedule because they make their hours. Running a small business can be unpredictable, so you never know when you’ll need an extra set of hands. 

Subcontractors are more likely readily available when you need them the most. 

Subcontractors: What You Need To Know

Even though contractors are responsible for subcontractors, understanding what contractors should require can still be helpful. After all, knowledge is power.

When bringing a subcontractor to the team, contractors should: 

• Check with you to ensure you have no prior plans for that specialty
• Have a contract in place to illustrate responsibilities, pay, and hours
• Provide necessary tax forms
• Require subcontractors to supply their equipment
• Check proof of insurance (when necessary)

Your contractor should maintain these processes to ensure everything remains compliant during your business’s project. This is something you should check with your contractor about before you begin each project. You should always ensure that your business and team are protected.

Conclusion

Remember that neither contractors nor subcontractors are full-time employees of your business. 

Regarding contractors and subcontractors, it’s all about the chain of command. When necessary, a contractor will lead a project and hire a contractor for a particular additional skill. 

Even though subcontractors work on your business’s projects, they will still report to the contractor. Because contractors are bringing outsiders into your business, you must develop a trusting relationship with your contractor. This will promote respect and work to ensure your contractor hires only people they trust. 

Subcontractors can benefit your business, so keep an open mind and let the contractor take care of the rest.

If there is a business project in your future, Hoist is here for you. Head over to our site to learn more.

Sources:

The Best Leaders Aren't Afraid to Ask for Help ⎸ Harvard Business Review

Three Reasons Video Marketing Is Important On Social Media In 2020 ⎸ Forbes

The 4 Things You Need to Thrive in the Gig Economy ⎸ Harvard Business Review