What Is The Role Of A Subcontractor?

click here

A lot of businesses employ subcontractors in order to finish projects on time, or for projects where a certain level of expertise is required. If you’re skilled in a particular area such as in construction, then you can work as a subcontractor. The demand for subcontractors is high in multiple industries. But first, let’s look at who a subcontractor is, and how they’re different from contractors.

Who Is A Subcontractor?

As a subcontractor, you’ll be working under a contractor on a specific project. For subcontracting jobs, you’ll usually be provided with a fixed date by which you should complete your work. So you will only be working on that project for a specific period of time. This is until you finish the work, or the contractor chooses to release you from your work obligations. Professionals sometimes use subcontracting as a way to work on new kinds of jobs. They learn brand new skills and also build their professional network, through their subcontracting jobs.

If you are skilled in any aspect of construction, such as carpentry, excavation, flooring, demolition, or others, then you can call yourself a subcontractor.

How Is A Subcontractor Different From A Contractor?

A contractor is hired by the customer in order to work on a particular assignment. The contractor can then choose to hire people to work under him on the project. The people they hire are the subcontractors. It’s ultimately the contractor who is responsible for answering the client.

So if the deadlines aren’t being met, or if there are issues with communication, then it’s the contractor who will be held accountable. The subcontractor is responsible for reporting their concerns to the contractor, and not to the client. The subcontractor is also responsible only for their portion of the job, while the contractor is responsible for the whole job.

What Can You Expect From Subcontracting?

Subcontracting is when a contractor enters into an agreement with a construction professional. This happens when the contractor feels that the scope of work before them is beyond their abilities. In such cases, they might hire subcontractors to take care of the portion of work that they are unable to do.

The contractor will explain to the subcontractor what the duties of their position are. They’ll also talk about how long the project will go on, as well as their compensation offer. Should the subcontractor agree, then they can start working for the contractor. A subcontractor can always choose to not work on a project, or they can negotiate their payment as well.

There are several kinds of subcontractors. People who have professional skills sometimes advertise themselves as subcontractors. Some skills are more sought-after by subcontractors than others. These include carpentry skills, demolition skills, electric skills, as well as excavation skills. You could also find regular work if you have flooring skills, heating and air conditioning skills, landscaping skills, painting skills, and more. In the technology sector, technology and security skills are in high demand.

What Are The Benefits Of Subcontracting?

There are many benefits for professionals looking to get a start in subcontracting. Depending on your skills, working as a subcontractor can be more financially profitable than a full-time role. If you desire to find employment as a successful subcontractor, then consider investing in subcontractor insurance. This is because working as a subcontractor exposes you to various risk factors, such as getting sued by unhappy clients. When you have subcontractor insurance, you gain coverage against common career risks. To learn more about subcontractor insurance, please click here.

These are the benefits of becoming a subcontractor:

1. Flexible Career Path

Subcontractors have the choice to either accept or decline to work on certain projects. You can opt for works based on your schedule, and work on them. You can also get rest periods between your jobs. This can then be used in spending time with friends and family.

Sometimes, subcontractors choose to work full-time. Some, however, can work when they want, as long as they get the work finished on time.

2. Tax Benefits

According to the Australian Taxation Office, subcontractors are seen in the same light as small business owners. This means that you can enjoy certain tax benefits. You’ll have the opportunity to write off work-related expenses from your yearly tax responsibilities.

This implies that the amount you pay in taxes will be reduced, which will enable you to save money. You will also need an ABN, or an Australian business number, to work as a subcontractor.


Working as a subcontractor can be a good idea if you enjoy working independently and choosing the projects that you work on. You will need to market your services, however, and network professionally to get steady work. With time, you can ensure that you get regular work from contractors.