Residential construction roles

What is subcontracting? How it works on a house

Subcontracting assigns part of a contractor’s work to another business under a separate agreement. Map each scope and its handoff before the crew starts.

You need to understand how one house contract divides into work for several trades. Subcontracting means hiring another business or individual to perform part of work already contracted to you.

Each agreement defines a portion of the larger job. AIA’s A401 summary gives a documented example of contractor-subcontractor obligations for a designated part of the work; your signed agreement sets your package. Cornell Wex explains the relationship.

Map who hired each company. Then map when each trade starts, what it needs ready, and what it must finish.

The contract chain from owner to trade

For example, an owner signs with a GC to build a house. The GC subcontracts plumbing to a plumbing business. That business might subcontract an allowed portion of its work further. Agreements can restrict additional subcontracting, so permission must be checked rather than assumed. See the Wex definition.

Compare the general contractor’s role with the subcontractor’s role when mapping the agreements.

Use this worksheet to check your project’s contract chain:

Scroll to read all columns.

Relationship to identify Document or answer to obtain
Owner to main contractor The agreement defining the main contractor’s undertaking
Main contractor to trade The subcontract and its referenced scope documents
Trade to another business The proposed lower-tier scope and permission to subcontract it
Business to crew The employer or business hiring the crew, and the crew lead
Contractor to supplier The purchaser, delivery destination, and material responsibility

Put the exact company names on the worksheet. Ask whose purchase order or subcontract authorizes your work. Keep an invitation to bid separate from an award. Before scheduling a crew, request the document that confirms the commitment and the conditions attached to it.

What the main contractor coordinates

Construction management includes budgets, work timetables, subcontractor selection, and coordination. It also includes responding to delays and explaining technical information. The Bureau of Labor Statistics lists these duties. Your project agreement determines which company and people carry them out.

For your own job, identify a contact for each decision. Name the person handling trade selection, the person coordinating the site, and the person answering invoices. Ask who can approve changes to price, schedule, and the work itself. Do not assume a contact can approve all three because they answer quickly.

If you are the trade, keep one current contact sheet with the project records. If you are the builder, give the trade an escalation route before the first problem. Include an alternate contact for an unanswered readiness question. Review the sheet when project personnel change.

What the subcontractor takes on

Census describes specialty trade contractors as businesses responsible for particular activities rather than the entire building project. Its description says trade packages commonly include parts and labor, but that does not establish what your quotation includes. Read Subsector 238 in the NAICS manual.

Break your package into things you can check:

Have the bidder identify exclusions beside those items. For example, on a cabinet package, ask about delivery, unloading, installation, fillers, hardware, and adjustments. For plumbing, ask about fixtures supplied by someone else. Avoid borrowing one trade’s answers for another package.

How work moves between trades

The Grand County Builders’ Association’s homebuilding overview groups work into site and foundation, shell, rough-ins, finishes, final sitework, and closeout. It warns that design and site conditions change the process. Use that as an overview, then confirm the schedule for your job. See the NAHB-hosted presentation.

Plan each handoff around what must be ready for the next trade. Use a record like this:

Scroll to read all columns.

Handoff Question for the outgoing trade Question for the incoming trade
Foundation to framing What is complete and what remains open? Which layout, access, and material checks do you need?
Shell to rough-in Which openings and protective work remain unfinished? Which locations or penetrations need coordination?
Rough-in to covering Which required approvals are recorded? What must remain visible until approval?
Finish installation to closeout Which adjustments or return visits remain? Who records and verifies each remaining item?

Name who confirms readiness at each handoff. Check the site and approval records before marking work ready. If an incoming trade declines the handoff, record the condition preventing the start and ask the responsible person to resolve it.

Keep inspection status in the handoff plan

In Raleigh, residential inspections cover building, electrical, mechanical, and plumbing work. The city’s instructions require specified concealed work to be inspected before covering. They also place rough-trade approvals before the framing inspection. Those are Raleigh’s published procedures, so confirm the authority governing your address. Residential Inspections.

Add the applicable inspections to the handoff plan. Ask who requests each inspection, who prepares for it, and who receives the result. Keep “requested,” “passed,” and “correction required” as separate statuses. Ask the inspector or permitting office about an unclear requirement instead of guessing from another job.

An inspection approval does not replace your review of the agreed scope. Keep unfinished items beside the inspection record. Ask the contract administrator how those records affect completion and invoicing.

Handle changes before they become disputed work

Use a written question when the drawings, field condition, and requested work disagree. Describe the location and document revision. Explain what decision is needed. Before doing the disputed work, ask the authorized contact to confirm the revised scope, pricing process, and schedule effect.

For example, if someone asks to move a fixture, record both locations and any completed work the move affects. Ask who approves the design. Ask who authorizes the extra work commercially. Do not assume those are the same person.

Keep a clear record of what remains unchanged. Tell the site coordinator which unaffected work can continue safely under the existing agreement. Have your contract administrator confirm the job’s notice and approval requirements.

Record unfinished work and closeout documents

Before calling the scope complete, walk it against the agreed documents. List unfinished items by location. Record the responsible business and the next check.

Ask for the assigned test records, operating information, and other closeout documents. Keep a copy of the accepted scope with any approved changes.

Before the next bid, update your scope template with the questions that exposed gaps. Clear up the wording before another crew prices it.

Compare the roles and project arrangements

Choose the guide that matches the company role or working arrangement you need to clarify.

Where Cercha fits

The Cercha app supports member search, portfolios, endorsements, and direct Messages. Use it to identify a trade and begin a conversation about fit. Ask about the Cercha beta to explore those features, then establish the project agreement and handoffs with the responsible businesses.

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More guides: Subcontractor basics

Related guides

Sources

  1. Wex Definitions Team. (2025, July). subcontractor. Legal Information Institute, Cornell Law School. https://www.law.cornell.edu/wex/subcontractor
  2. U.S. Bureau of Labor Statistics. (2026, August 27). Construction Managers. Occupational Outlook Handbook. https://www.bls.gov/ooh/management/construction-managers.htm
  3. U.S. Census Bureau. (2022). North American Industry Classification System, United States, 2022. https://www.census.gov/naics/reference_files_tools/2022_NAICS_Manual.pdf
  4. Grand County Builders’ Association. (2021, May 18). Overview to the custom homebuilding process. National Association of Home Builders. https://www.nahb.org/-/media/NAHB/advocacy/docs/industry-issues/disaster-resources/home-building-overview.pdf?rev=6f76493d1a3e493fb717f52f0fa47d7e
  5. City of Raleigh. (2026, October 12). Residential Inspections. https://raleighnc.gov/permits/services/residential-inspections
  6. AIA Contract Documents. (n.d.). Summary: A401–2017, Standard Form of Agreement Between Contractor and Subcontractor. Retrieved October 14, 2026, from https://help.aiacontracts.com/hc/en-us/articles/1500010279181-Summary-A401-2017-Standard-Form-of-Agreement-Between-Contractor-and-Subcontractor