What is the difference between a subcontractor and a supplier?

The difference between a subcontractor and a supplier in New Jersey construction law is that a subcontractor is responsible for a specific part of the construction process, while a supplier provides materials or services to complete the work. Subcontractors are considered independent contractors that are hired to complete a certain task or work activity, such as plumbing, concrete, or drywall. Often, subcontractors are hired by the general contractor or by the owner of the project, and they are responsible for completing the specific task they are hired to do. Suppliers are entities that provide construction materials or services to support the overall project. They are not involved in the construction process itself, but they provide materials or services that are necessary for the completion of the project. Examples of suppliers include lumber suppliers, electrical supply companies, or plumbing supply companies. In New Jersey, subcontractors are required to obtain a contractor’s license in order to act as a subcontractor, and suppliers do not need to be licensed in order to provide services or materials. Additionally, subcontractors are responsible for paying taxes on their labor, while suppliers must pay taxes on their materials or services. In summary, the main difference between a subcontractor and a supplier is that a subcontractor is responsible for completing a specific part of the construction process, while a supplier provides materials or services to complete the work.

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