You are pricing a trade package or deciding who to call about work on a house. A subcontractor is a business or individual hired to perform part of another contractor’s existing contract. The word describes a contract relationship. Cornell’s Wex definition uses plumbing and flooring on a house as examples.
Start with who hired whom. Then confirm the scope, the company doing the work, and who can approve decisions.
Who hires a subcontractor on a house
Picture an owner who hires a general contractor to build a house. The GC hires a plumbing business for the plumbing package. In that example, the plumbing business is the subcontractor, and its agreement with the GC defines its scope. A subcontractor can also engage another subcontractor if the governing agreements allow it. Wex explains this contract chain.
Draw your own chain before work starts. Put the owner at the top, the company holding the main construction contract beneath it, and the trade companies below that. Beside each company, write the agreement it signs and the person who receives its invoice. Do not use a diagram as a substitute for reading those agreements.
If an owner hires the plumber directly, that relationship differs from the GC-to-plumber example. Census also describes specialty contractors working directly for property owners, particularly in repairs and remodeling. A plumbing company can therefore perform subcontract work on one project and direct work on another. See NAICS Subsector 238.
For your first conversation, ask:
- Which legal entity is offering this work?
- Who will sign my agreement?
- Is the invitation for a quote, an approved subcontract, or an introduction?
- Who approves a change in scope or price?
- Who receives invoices and answers payment questions?
Keep the answers together with the project address and scope description. If two people give different answers, resolve the difference before committing a crew.
Which trades work as subs
Concrete, framing, roofing, electrical, plumbing, painting, and other specialty work fall within the Census construction taxonomy. Subsector 238 describes businesses performing specific construction activities without responsibility for the entire project. Its descriptions also distinguish trade installation from selling construction materials. The Census manual supplies those boundaries.
Use this worksheet to ask what each company includes in its price:
Scroll to read all columns.
| Package to discuss | Boundary to settle before pricing |
|---|---|
| Foundation concrete | Excavation, reinforcing, concrete placement, backfill, and cleanup |
| Framing | Labor, lumber supply, truss handling, hardware, and correction visits |
| Roof covering | Deck readiness, underlayment, flashings, penetrations, and disposal |
| Plumbing | Underground work, rough-in, fixtures, testing, and return visits |
| Electrical | Service work, rough wiring, devices, fixtures, and final completion |
| Interior finishes | Surface readiness, supplied materials, protection, and punch work |
Write inclusions beside exclusions. For example, if you are buying installation labor, ask who orders and receives the product. If you are supplying the material, identify who checks delivery damage before installation. Use the answers to define the package before pricing it.
Avoid assuming that “complete” has the same meaning to both parties. Ask the bidder to describe what will exist when its work is finished. Then compare that description with the next trade’s starting conditions.
A subcontractor can have employees
Subcontracting describes the agreement between businesses. Worker classification concerns the relationship between a worker and the person or business paying them. For federal employment taxes, the IRS considers behavioral control, financial control, and the parties’ relationship. A contract label alone does not settle that classification. Read the IRS guidance.
Keep your company list separate from your crew roster. Record the subcontracting business, its owner or manager, and its assigned crew lead. Then ask who employs or hires the people arriving at the house. Refer uncertain worker-classification questions to a qualified tax professional or attorney.
An invoice alone does not settle a worker’s classification. The IRS calls for considering the whole relationship and documenting the relevant factors. Its guidance explains the review. If you are changing an employee arrangement into subcontract work, get that review before changing the paperwork.
The subcontract defines the work you are buying
Check each subcontract’s scope and any restrictions in the contracts above it. Wex identifies both points. Use this checklist to review a residential scope:
Read the subcontract documents alongside the trade-scope explanation before accepting the work.
- Identify the drawing set, date, specifications, and selections used for pricing.
- List labor, materials, equipment, deliveries, and disposal included in the amount.
- Name the conditions required before the crew starts.
- State the completion condition and any planned return visits.
- Identify the route for questions, substitutions, and additional work.
- Record payment procedures and the documents the payer requires.
Describe trade handoffs in plain words. “Ready for cabinets” is too vague for a useful discussion. Ask which walls, floors, measurements, utility locations, and approvals the cabinet installer wants confirmed. Have the responsible parties agree on those conditions.
For example, on a flooring package, ask who checks the substrate, supplies transitions, and protects completed rooms. Do not leave the answers inside a phone call. Put them into the proposed scope and invite the bidder to correct them.
Check the license and insurance for the work
A subcontractor label does not identify the applicable license. North Carolina regulates general contracting through G.S. 87-1 and electrical contracting through a separate statute. Plumbing, heating, and fire sprinkler contracting have their own statutory framework. GC definition, electrical contracting, plumbing and heating.
Describe the actual work to the relevant board when you are unsure. Include the company signing the contract, who hires it, the project location, and the value of the work. Ask the board which classification covers that scope. Do not assume a company name or an unrelated credential authorizes the work.
Keep insurance review separate too. North Carolina’s GC board says its license does not itself require insurance. State law also says a certificate of insurance cannot expand the underlying policy’s coverage. Board FAQ, certificate statute. Ask a licensed insurance professional to review the protection your project requires.
Before you offer or accept the package
Use the first call to establish fit. Describe the house, the location, the package, and the intended start conditions. Ask for comparable completed work and the person who can discuss it. Ask what work and crew time the company can commit to this job.
Review scope before comparing prices. Check credentials before sending the crew.
Confirm the field contact before sending the crew. Read the agreement before relying on a promised start or payment procedure. Write down unresolved points and follow up before work starts.
Use the subcontracting contract-chain guide to map who buys each scope and who receives the handoff.
Where Cercha fits
The Cercha app has trade, ZIP code, and radius search filters, plus member portfolios and builder or sub endorsements. Use those features to identify people to contact and review the work they show. Ask about the Cercha beta when you want to explore that discovery step.