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What is the main difference between a contractor and a subcontractor in construction? A contractor is a person or company that obtains contracts directly from customers and carries them out, while a subcontractor forms agreements with contractors to perform specific tasks within a larger project.
Anyone who owns or operates a home improvement business or who offers, performs, or agrees to perform home improvements in Pennsylvania must register with the Office of Attorney General unless they fall within two exceptions: small contractors (less than $5,000 of work in a calendar year) and large retailers (net worth
A contractor is a person or company that obtains contracts directly from customers and carries them out, while a subcontractor forms agreements with contractors to perform specific tasks within a larger project.
Timeline for Payments It also provides that a contractor pays a subcontractor within 14 days after the contractors receipt of each progress or final payment request, or 14 days after the subcontractors invoice, whichever is later.
The Commonwealth of Pennsylvania currently has no licensure or certification requirements for most construction contractors (or their employees). Please note the following regarding state and local requirements pertaining to certain contractors (and their employees).
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Since a prime contractor works for the whole project and a subcontractor only works for part of it, a prime contractor usually makes more money per project. However, a subcontractor may work on more projects over the same amount of time, so their annual pay heavily depends on scheduling and demand.
Technical expertise: Subcontractors specialize in certain areas so depending on their career, they need expertise in the area, such as painting techniques. A contractor requires experts in each step of construction because they may not be able to perform or understand the in-depth requirements of the work fully.

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