What are the differences between a contractor and a subcontractor?
Contractors and subcontractors are two different types of professionals who work in the construction industry. Contractors are the people who manage the construction project as a whole and are responsible for the full completion of that project. They are the ones who hire other people to help them with the project, like the subcontractors. Subcontractors are people hired by the contractor to do specific parts of the construction project. They are usually specialized in certain trades, like carpentry or plumbing. The main difference between contractors and subcontractors is that the contractor is responsible for the entire project, while the subcontractor is responsible for only one specific part of the project. The contractor is the one who hires the subcontractor to work on the project and the subcontractor does not have responsibility over the entire project. In Michigan, contractors must be licensed to legally perform services. This licensing is provided by the Michigan Department of Licensing and Regulatory Affairs, and requires contractors to be fully insured and to have at least $25,000 in bonded liability insurance. Subcontractors do not have to be licensed, as they are hired by the contractor, but they are responsible for providing their own insurance. Overall, contractors and subcontractors are two different types of professionals who work in the construction industry. Contractors are responsible for managing the entire project, while subcontractors are hired to do specific parts of the project. In Michigan, contractors must be licensed, while subcontractors are not required to be licensed.
Related FAQs
What are the legal requirements for notice of change order in construction?What are the remedies for failure to pay for construction work?
What is the difference between a contract and a purchase order?
What are the insurance requirements for a construction company?
What are the legal consequences of false advertising in construction?
How is the quality of construction work evaluated?
What is the difference between a contract modification and a change order?
What is the difference between implied and express warranties in construction contracts?
What happens when changes occur during the course of the project?
What are the various types of contracts used in the construction industry?
Related Blog Posts
Explaining Construction Law: What You Need to Know - July 31, 2023How Construction Law Can Protect Your Business - August 7, 2023
Regulations to be Aware of When Pursuing Construction - August 14, 2023
Leveraging Construction Law for Your Project - August 21, 2023
Comprehending Construction Law in the Changing Landscape - August 28, 2023