Helping you as both independent contracts + sub-contractors!
Independent Contractors-VS-Sub-Contractors – what does it all mean?
If you have signed an agreement with a client to work on a specific venture or project and you provide your skills including equipment and labour, you would be regarded as an Independent Contractor.
You will be responsible for meeting contract deadlines and expectations and you will receive the payment for completion of the job.
If you need other people to help you fulfil your responsibilities on the project, you can engage Sub-contractors. You are responsible for them, they report to you, not to the client and you instruct them exactly what part of the project they will carry out. A subcontractor can be a person, partnership or a company.
As an example: a large builder wins a tender to erect all the houses in a sub-division. They sign a contract which states how many houses they agree to build and by what dates and they agree to a price. The contractor is able to complete all the framework and carpentry but they need to engage subcontractors to do the bricklaying, plastering, plumbing, electrical and landscaping.
To find out how to become a sub-contractor as well as what you will need to do to be prepared, download our free guide!