General Contractor vs Subcontractor: Who Does What

A general contractor manages a construction project and hires the trade specialists -- the subcontractors -- to perform the actual work. Homeowners have a contract with the GC. The GC has contracts with the subs. The line between these roles determines who is legally responsible for what, and understanding it protects you when something goes wrong.

What a General Contractor Does on a Project

The GC's job is coordination and accountability, not trade execution. On a typical residential remodel, a general contractor:

• Obtains the required building permits and schedules inspections
• Hires and manages subcontractors for each trade (framing, electrical, plumbing, HVAC, drywall, tile, painting)
• Sequences the trades so each one arrives after the previous trade's work is ready
• Orders or coordinates materials delivery to align with the work schedule
• Acts as the homeowner's single point of contact for all site questions
• Resolves problems between trades -- when a plumber's pipes conflict with an electrician's conduit path, the GC arbitrates
• Ensures each trade's work passes inspection before the next stage begins

What the GC typically does not do personally: most GCs do not perform trade work themselves. A GC who moonlights as their own framer, electrician, and plumber is usually spreading their skills too thin. GC value is management, sequencing, and accountability -- not their personal trade skills.

What Subcontractors Do and Who Hires Them

Subcontractors are trade specialists hired by the GC to perform specific scopes of work. Common residential subcontractor categories include:

• Framing contractor: builds the structural wood frame of additions, walls, and floors
• Electrician: rough-in wiring, panel work, finish electrical (licensed trade in all 50 states)
• Plumber: rough-in pipes, fixture installation, drain work (licensed trade in all 50 states)
• HVAC contractor: ductwork, equipment installation, refrigerant work (licensed in most states)
• Drywall contractor: hang and finish drywall after rough trades are inspected
• Tile setter: bathroom and kitchen tile installation
• Painter: interior and exterior paint
• Roofer: on projects that include roofing scope
• Concrete contractor: foundations, slabs, driveways

Each subcontractor holds their own trade license, carries their own insurance, and is responsible to the GC -- not to the homeowner -- for their scope of work.

Why Homeowners Deal With the GC, Not the Subs

The single-point-of-contact structure exists to protect homeowners. When you hire a GC, you have one contract, one party responsible for the entire project, and one party to hold legally accountable if work is defective or incomplete. You do not need to understand the technical details of each trade. You do not need to verify that each sub's scope is complete before authorizing payment to the next trade. The GC owns that responsibility.

This structure also simplifies your legal position. If the electrician's rough-in fails inspection and has to be redone, that is between the GC and the electrician. If the plumber damages your subfloor, your claim is against the GC. Your contract is with the GC -- period.

What Happens When a Subcontractor Does Substandard Work?

This is where the GC structure is tested. If a subcontractor installs tile that is visibly unlevel or leaves a plumbing rough-in that fails inspection, your contract with the GC obligates the GC to correct it -- not the sub directly. The GC is responsible to you for the quality of all work performed under the contract, regardless of who physically performed it.

In practice, your options when sub work is defective:

1. Document the defect in writing (photos + written description sent to the GC)
2. Issue a written cure notice citing the relevant contract workmanship standard
3. If the GC fails to cure within the contract deadline, invoke the dispute resolution clause (usually mediation before litigation)

The key word is "written." Verbal complaints about a sub's tile work rarely create a legally enforceable paper trail. Everything beyond "can you take a look at this?" should be in writing -- text, email, or formal letter.

See How to Read a Contractor Contract for the specific clauses that govern workmanship standards and dispute resolution in a standard residential contract.

GC Markup on Subcontractor Work: What to Expect

GCs charge overhead and profit on top of what they pay subcontractors and for materials. The industry standard markup on subcontractor work ranges from 10 to 20 percent of the sub's bid price, per HomeGuide contractor pricing data. On top of the sub markup, GCs typically charge an overall project overhead and profit margin of 10 to 20 percent.

What this means in practice: if your plumber charges the GC $8,000 for rough-in plumbing, you may see $9,600 to $10,400 on your GC quote for that scope line. This is normal and expected -- the GC markup covers the cost of coordinating, scheduling, and being legally responsible for that sub's work.

For a detailed breakdown of how markup layers work in a GC quote, see Average Contractor Markup: What You Are Actually Paying For.

When You Might Hire a Trade Directly Without a GC

Hiring trades directly without a GC makes sense in a narrow set of situations:

• Single-trade projects: replacing your electrical panel, repiping a bathroom, or installing a new HVAC system involves one licensed trade and can be contracted directly. There is no coordination benefit to a GC when there is only one trade.
• Small projects within a single scope: a bathroom tile job, a deck build, or a fence installation are often bid and executed by a single trade crew. No GC needed.
• You have construction project management experience: acting as your own GC requires you to understand trade sequences, read and interpret permits, and manage disputes between contractors. Homeowners with construction backgrounds can manage this effectively; most others should not attempt it on a multi-trade project over $30,000.

For projects involving two or more trades working in sequence -- any kitchen remodel, any bathroom addition, any home addition -- a GC's coordination value typically outweighs the markup cost, especially if something goes wrong. See Handyman vs General Contractor: Which Do You Need? for guidance on smaller project scope.

Contract Responsibilities: Who Is Liable for What?

Understanding liability before signing a GC contract prevents expensive surprises. The key liability rules in standard residential construction contracts:

GC is liable to homeowner for all work: whether performed by the GC's employees or a subcontractor, defective work is the GC's responsibility to remedy under the contract warranty.

Subcontractors hold their own licenses: a GC cannot legally authorize an unlicensed subcontractor to do licensed trade work. If a GC uses an unlicensed electrician, the GC is exposed to liability and the permit may be voided.

Mechanic's lien risk is real: in most states, a subcontractor who is not paid by the GC can file a mechanic's lien against your property, even if you paid the GC in full. A lien waiver from each subcontractor upon payment is standard protection -- ask your GC whether they provide sub lien waivers at each payment milestone.

Workers compensation coverage gap: if a GC's subcontractor does not carry workers compensation insurance and a worker is injured on your property, your homeowner's insurance may be your last line of financial defense. This is why verifying subcontractor insurance directly -- not just the GC's policy -- matters on larger projects. See How to Hire a General Contractor for the specific verification steps.