What is a construction subcontractor?
In construction, a subcontractor is employed by the general contractor to do a specific job as part of a larger project. Subcontractors are employed on a contractual basis, brought in to do specific work and only for the duration of that work. Subcontractors typically sign a separate agreement with the general contractor rather than working directly with the owner of the project. Depending on the size and complexity of the project, there can be numerous subcontractors working on the project simultaneously.
Common types of subcontractors
Construction projects rely on numerous types of subcontractors who each contribute different skills and services to a project. Some of the most common types of construction subcontractors include:

Electrical Subcontractors
Electrical subcontractors are essential for ensuring that electrical installations in new and existing buildings are performed correctly. They handle tasks ranging from wiring new buildings to upgrading electrical systems in older ones, ensuring all work is compliant with safety standards and regulations.

Plumbing Subcontractors
Plumbing subcontractors play a crucial role in any construction project, taking care of water, sewage, and sometimes gas systems. These professionals are responsible for installing and maintaining plumbing systems to ensure they are secure, leak-free, and functioning correctly.
HVAC Subcontractors
HVAC (heating, ventilation, and air conditioning) subcontractors are critical for maintaining comfort in residential and commercial buildings. They install and maintain systems that control the climate within buildings, ensuring spaces are comfortable and air quality is healthy.

Masonry Subcontractors
Masonry subcontractors specialize in building with materials like brick, stone, and concrete. These professionals are vital for constructing the structural elements of buildings, ensuring they are robust, durable, and aesthetically pleasing.
Roofing Subcontractors
Roofing subcontractors focus on constructing roofs that are durable and resistant to weather elements. They work with a variety of materials to ensure that roofs are not only functional but also contribute to the overall aesthetic of the building.

Painting Subcontractors
Painting subcontractors enhance the appearance of buildings by applying paint and other finishes. Whether it’s painting a new building or refreshing an old one, their work adds significant visual appeal and protection against environmental factors.

Flooring Subcontractors
Flooring subcontractors handle the installation of various types of flooring, from carpets to tiles and hardwood. Their work ensures that floors are not only attractive but also properly installed to withstand wear and tear, enhancing both safety and durability.
What does a subcontractor do?
Subcontractors are responsible for doing their part of the job according to the job plans and specifications. Their responsibilities often include:
- Providing labor, equipment, and materials for their part of the job.
- Making sure they meet all applicable building codes and safety regulations.
- Coordinating their work with other subcontractors on site to ensure seamless project execution.
- Managing any subcontracted workers or additional subcontractors they might hire to complete their tasks
Subcontractors are a critical part of helping general contractors manage large jobs by breaking the work into manageable, specialized pieces. This not only ensures quality workmanship but also keeps the job on track and within budget.
How to become a subcontractor in construction
Becoming a construction subcontractor involves several steps, aimed at positioning yourself as a credible and capable business that can do specialized work as part of large projects.
Education and Training
Most subcontractors start out with a general education in the trade that they would specialize in. This can be accomplished through:
- Vocational schools offering courses in trades like electrical, plumbing, or carpentry.
- Apprenticeships that cross-train in the classroom and in the field.
- Technical colleges offering more advanced programs in a range of construction-related specialties.
Gaining Experience
Experience is everything. Many subcontractors start out as employees in their trade to gain the skills and experience necessary. Over time, they can transition into supervisory roles before opening their own subcontracting business.
Licensing and Certification
Depending on the trade and jurisdiction, becoming a licensed subcontractor may be required. This typically involves passing exams covering knowledge of the trade and local building codes. Certifications from established industry organizations can also be used to gain credibility and attract more business.
Starting a Subcontracting Business
Business Registration:
Create the business as a distinct legal entity, such as an LLC, to separate business and personal liabilities.
Insurance and Bonding:
Obtain the necessary insurance to protect against accidents and to meet industry standards. Bonding is also necessary as it ensures the general contractor and the client of the subcontractor’s reliability and financial integrity.
Building Relationships:
Networking with general contractors and other industry professionals is crucial. Many subcontractors gain work through bids or as preferred providers for general contractors they have successfully worked for in the past.
Tips for becoming a construction subcontractor
Being a successful construction subcontractor takes more than being good at your trade. You also must be an astute businessperson, adept at marketing, and sensitive to your place in the construction pecking order. These are some important tips to help you initiate and grow your subcontracting business successfully:
Use Technology to Run Your Business Smoothly
Technology can do much to streamline your operations. Make use of project management software like RDash, financial tracking tools, and apps that allow you to handle jobs, invoices, and client communications on the go. Employing these tools keeps errors to a minimum, saves time, and ensures your business runs smoothly.
Don’t Take on Too Much Work
It is easy to accept every piece of work that comes your way, particularly when you are new. However, overdoing it can lead to lost deadlines, poor quality, and eventually a damaged reputation. Be realistic about your capability and only accept work you can carry out efficiently.
Respect the General Contractor-Subcontractor Hierarchy
Understanding and respecting the pecking order in the construction business is essential. General contractors manage the overall aspects of a project and hire subcontractors to complete a certain work. Always communicate professionally and clearly. Meeting deadlines and delivering top-notch work ensures that general contractors will remember you for upcoming projects.
Track Your Finances Carefully
Good financial planning is instrumental to the success of any business. Keep accurate records of every expense and revenue. Monitor your finances regularly to understand your business’s profitability and where you can cut costs or be more efficient.
Frequently Asked Questions
How are subcontractors usually paid?
Subcontractors are typically paid by the project, as outlined in the contract with the general contractor. Payment terms vary; some are paid upon submitting an invoice on completion of their part of the project, while others are paid progress payments throughout the project duration.
What are the cons of being a subcontractor?
Being a subcontractor offers many opportunities but disadvantages too:
Irregular Income: The work could be seasonal or fluctuating, leading to high income periods and then periods of little or no work.
Dependence on Contractors: Subcontractors typically rely on general contractor contracts, so work possibilities could be relationship- and market-dependent.
Less Control: Subcontractors have less control over projects because they must work within the plans and timelines of general contractors.
Greater Responsibility for Own Costs: Subcontractors are responsible for their own business expenses, such as tools, materials, and labor charges, which can be financially stressful if not handled.