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A General Contractor hires Sub Contractors to do different portions of the toal project. A Sub Contractor may then hire a Sub Tier Subcontractor to do a portion of their work.
A General Contractor hires Sub Contractors to do different portions of the toal project. A Sub Contractor may then hire a Sub Tier Subcontractor to do a portion of their work.
Anyone who does work for a general contractor and is not a direct employee of that contractor is a sub-contractor. Regardless of who sets the price. The subcontractors work within the contract set between the general contractor and homeowner. Hence sub-contractor.
The customer pays the contractor, and the contractor pays the sub-contractor. The sub-contractor does the work but the contractor remains responsible for ensuring that the work is done prompptly and correctly. The contractor ensures that all legal requirements for the work are met, and that the sub-contractor hasan appropriate amount of liability insurance, in the event that something goes wrong and horrible law suits result.
The contractor should make a claim upon the sub-contractors insurance and/or bond. If the sub-contractor defrauded the contractor on having insurance and/or bonding in place then he should report the contractor to the State licensing board, file claim on their insurance, and civil lawsuit (if the insurance company does not directly file or pay).
A main building contractor will be contracted to build a house or houses. The main building contractor may then contract all the electrical work to an outside electrical company. The electrical company becomes a sub-contractor. There can be several sub-contactors on the building site.
There are many advantages and disadvanatges to sub-contracting. Usually work will be subcontracted out to specialist firms with specialist skills that the main contractor cannot do as well. For example in the construction industry contractors will sub-contract different parts of the work out like the masonary, cladding, floor screeders etc. They do not only do this for the best quality of workmanship however they are also passing over responsibility of the build to the sub-contractor. Another advantage to sub-contracting work out is that is stimulates the economy and keeps alot of businesses alive which depend on the larger businesses which dominate the market share. It keeps a flow of money. The disadvantages are that with the pass over of responsiblity to a subcontractor, arguments can arise when something does go wrong between the Main contractor the secondry contractor and the sub-contractor. (is the subcontractor at fault for poor workmanship, or is the secondry contractor at fault for employing an inexperienced sub-contractor?)
The prime contractor is contracted by the end customer. Sub-contractors are contracted by the prime contractor or other sub-contractors.
If the general contractor refuses to pay, you must sue the contractor for payment. You may also sue his bonding company, if he has one. If your dispute exceeds small claims, see a real estate attorney right away.
The contractor will get a bid from the sub contractor and add his percentage, then present the change order to the customer. This depends on the change. Some changes are items which are pre-set arrangements between the contractor and sub that can be priced without a bid from the sub. Flooring for example.
Most of the time it is 25% or more then you become a general contractor.
Hours worked are irrelevant. Report same as a full time.