When in construction, most of the laborers work through a contract entered into by them and the employer. However, it is possible for employees to hire people in the event that their skills are necessary for the job to be done. When this occurs, the person hired by the employee is referred to as a subcontractor, owing to the fact that the person is hired under the direct supervision of a general contractor.
Building a house or some other building involves a lot of skills and expertise. Some laborers may specialize in electrical wiring while others may specialize in system installations. Thus, it may become necessary to hire persons based on the skills they can provide. A person referred to as a general contractor is hired by a company in order to ensure that laborers of various skills or trades are hired and does the job well. Thus, the general contractor employs subcontractors who take part of the work that the contractor needs to see done.
A subcontractor is not a normal or regular employee in the sense that he or she is given a stable environment to work in. Subcontractors often work on an irregular basis, depending upon the needs of a general contractor. Thus, it is important for a subcontractor to know and maintain relationships with general contractors in order for them to get jobs. This being the case, a subcontractor is often an independent contractor or one who is hired by the company and provided with required benefits.