What does subcontract mean? is there any type of agreements signed? is this hourly rate or flat rate?

Question

Please someone help me understand what it means to be a subcontractor?

Do they pay you hourly or flat rate?

Answer 1

The general contractor is hired to do or supervise the overall job. The GC will then hire subcontractors to do the smaller arts, such as electrical, plumbing, etc etc. The agreement is signed between the GC and the subcontractor. I can't tell you about rates.

Answer 2

A subcontractor is one that enters into a subcontract and assumes some of the obligations of the primary contractor.

As an example, you build a house that you contract with the builder. He in turn doesn't do ALL the work himself. He may outsource some of the work such as masonry or electrical work to a "subcontractor" who does the work for him.

It should not cost you extra at all as the subcontractor is normally paid by the contractor who has already estimated the cost of the work when he did the initial contract with the buyer.

Best wishes.

Answer 3

In most house building, the owner of the property who wants a house built, will approach a general contractor.
The general contractor will make a contract to build the house for , whatever price is bargained for. Now the general contractor will make a contract with an excavator, to dig the foundation, with masons to build the cellar, with carpenter crews, electricians, plumbers, etc. All of those are sub-contractors.
Many general contractors have masons and carpenters on their pay-role.In this case they are not sub-contractors. Usually the others tradesmen are on sub-contract,
Sub-contractors must accomplish the work under contract for the agreed on amount.
So again - - - the general contractor is under contract to the house owner. The sub-contractors are under contract to the general contractor.
Both the general and sub-contractor's workers are paid hourly.

Answer 4

it is where your main contracotr hires someone else to do something..like you may have contractor to build you an addition..but he does not do windows..so he will hire someone else to do that job and he pays them out of what you are paying him for the whole job..i am not sure about a contract but the way i understand it is your contractor is ultimitly responsible for any work done by the sub contractor.