What is a Contractor?
Should I use One?
A general contractor, main contractor or prime contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project.
A contracting company hires other businesses “subcontractors” to perform and complete the services you’re seeking and hire them for. A contractor advertises the ability to do almost anything residential and commercial related but doesn’t actually maintain the skill to complete the work themselves.
Contractors don’t hire W-4 employees but instead hire 1099 workers “subcontractors”. An employee undergoes an employment and criminal background check whereas 1099 workers “subcontractors” are not subject to the standards as an employee. The IRS strict rules differentiating W-4 employees and subcontractors.
Similarly, to hiring a franchise, if you hire a contractor you’ll end up with unchecked or even undocumented people working on your home. Because a subcontractor is their own entity, the contractor you’ve hired has no say over how the subcontractor performs the work or the process they do it in.
The COST. When you hire a contractor that hires others to perform the work you end up paying more, or receiving less value and for your dollar. You’ll be paying the business that actually does the work and then paying the mark-up of the contractor you hired. The contractor you hire will typically find the lowest costing subcontractor to do the work. That way they get more $$ in their pockets.
So, if you’re looking to have some work done on your home, hire real professionals. Whether it be an actual painting company, plumber, carpenter, electrician etc. you’ll get the quality you’re expecting and peace of mind that you’ll know exactly who’s in your home.