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The 3 Types of Contractors General Contractors. The term general contractor is used in two ways, in my experience. Turn-Key (Specialty) Services. If you dont like the idea of paying someone to manage your schedules and hire sub-contractors, you can do this work yourself. Freelance Workers.
Subcontractors help contractors complete a project Subcontractors, on the other hand, are companies or people hired by the contractor to do specific tasks or services in their area of expertise. A general contractor may hire an electrician, plumber, and carpenter for a construction project.
The Prime Contract There is usually a chief or primary contractor hired for a contract between the owner and the project. This person normally has the full responsibility to complete the job and ensure there are few or no problems without resolution.
Prime contracting Prime contractors work directly with the government. They manage any subcontractors and are responsible for ensuring that the work is completed as defined in the contract.
An auto mechanic who has a station license, a resale license, buys the parts necessary for the repairs, sets his or her own prices, collects from the customer, sets his or her own hours and days of work, and owns or rents the shop from a third party is an example of an independent contractor.

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The 3 Types of Contractors General Contractors. The term general contractor is used in two ways, in my experience. Turn-Key (Specialty) Services. If you dont like the idea of paying someone to manage your schedules and hire sub-contractors, you can do this work yourself. Freelance Workers.
A subcontractor is a worker who is not your employee. You give a Form 1099 to a subcontractor showing the amounts you paid him. The subcontractor is responsible for keeping his or her own records and paying his or her own income and self-employment taxes.
Prime Contract: Gives the general (prime) contractor the full contract for a project. The general contractor is then allowed to enter into agreements with subcontractors to assist in the completion of the project.
Prime contracting Prime contractors work directly with the government. They manage any subcontractors and are responsible for ensuring that the work is completed as defined in the contract.
General Contractors vs. Subcontractors. A contractor can be a general contractor or a contractor with a specialty hired for a specific job within the construction industry.

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