General Contractor vs. Subcontractor
On any project bigger than a single trade, two kinds of contractor are usually involved: the general contractor who runs the whole job, and the subcontractors who perform the specialized work. Understanding who does what — and who has a contract with whom — makes your project easier to manage and protects you if something goes wrong. This guide lays out the roles, the money flow, and what it means for you as the homeowner.
The short version
- The general contractor manages the project and is your single point of accountability.
- Subcontractors are trade specialists — electricians, plumbers, tilers — hired to do specific parts.
- You contract with the general contractor; the general contractor contracts with the subs.
- The general contractor is responsible for the subs’ work and for paying them.
- Confirm your general contractor actually pays subs, or a lien can land on you.
What a general contractor does
The general contractor — sometimes called the prime contractor — owns the project as a whole. They estimate the job, sign the contract with you, pull permits, hire and schedule the subcontractors, order materials, supervise the work, handle inspections, and stand behind the finished result. When you have one number to call and one party responsible for the outcome, that is the general contractor’s core value.
What a subcontractor does
A subcontractor is a specialist hired to perform one part of the job: the electrician, plumber, HVAC installer, tile setter, drywaller, or painter. They are experts in their trade and are typically licensed in it. Crucially, on a normal residential project the subcontractor works for the general contractor, not for you — they are hired, scheduled, supervised, and paid by the GC.
How the relationships and money flow
The structure is a chain. You pay the general contractor according to your contract. The general contractor pays each subcontractor and supplier out of that money. This is why a general contractor’s markup is not pure profit — part of it covers the work of coordinating and paying everyone below them.
| Aspect | General contractor | Subcontractor |
|---|---|---|
| Role | Runs the whole project | Performs one trade |
| Contract with | You, the homeowner | The general contractor |
| Responsible for | Overall outcome and schedule | Their specific work |
| Paid by | You | The general contractor |
| Pulls permits | Usually yes | Sometimes, for their trade |
Why the difference matters to you
The chain of contracts is what protects you — or exposes you. Because your agreement is with the general contractor, you hold one party accountable for the whole job rather than chasing five trades. But that same structure carries a risk: if the general contractor collects your money and fails to pay a subcontractor, that unpaid sub can, in many places, place a lien on your home even though you paid in full. Lien waivers exist to close exactly this gap.
Pro tip — collect lien waivers as you pay
Before you release each payment to your general contractor, ask for lien waivers from the subcontractors and suppliers covered by that payment. The waiver is written proof they have been paid and give up any right to lien your property. It is the simplest way to make sure the money you handed over actually reached the people who did the work.
Can you hire subcontractors directly?
You can act as your own general contractor and hire subs directly, which saves the GC’s markup — but you also take on the estimating, scheduling, permit responsibility, supervision, and liability. For a small, single-trade job, hiring a specialist directly is common and sensible. For a multi-trade remodel, most homeowners find the general contractor’s coordination is worth the fee, because the cost of a poorly sequenced job usually exceeds the markup you were trying to avoid.
FAQ
Do I pay the subcontractors directly?
On a normal project, no — you pay the general contractor, who pays the subs. Paying subs directly can muddy responsibility and create tax and liability complications, so it is best avoided unless you are acting as your own general contractor.
Who is responsible if a subcontractor does bad work?
The general contractor is. Because the subs work for the GC and your contract is with the GC, the general contractor is accountable for the quality of the whole job, including the trades they hired. That single point of accountability is a big reason to hire a GC.
Can a subcontractor put a lien on my house if I already paid?
In many jurisdictions, yes — if the general contractor failed to pay them, an unpaid subcontractor can lien your property even though you paid the GC in full. Collecting lien waivers as you make payments is the standard way to protect yourself.
Should I be my own general contractor to save money?
It can save the markup, but you take on estimating, scheduling, permits, supervision, and liability. It may make sense for a small single-trade job; for a multi-trade remodel, most homeowners find a general contractor’s coordination worth the fee.
General information for homeowners — not legal or professional advice. Remodeling costs, permits, and licensing rules vary by location and change over time; confirm with a licensed local contractor.
