What Is a Subcontractor? Roles, Responsibilities, and Benefits

Subcontractors play a crucial role in industries such as construction, engineering and infrastructure development. They provide specialised skills, helping contractors complete projects efficiently and cost-effectively. Understanding the role of a subcontractor, their responsibilities and how they differ from contractors is essential for businesses looking to streamline operations while ensuring compliance with industry regulations.

This guide explores what a subcontractor is, their key responsibilities, the benefits of working with subcontractors and the legal and health and safety considerations that businesses must follow.

What Is A Subcontractor?

A subcontractor is a business or individual hired by a contractor to perform specific tasks within a larger project. They typically have specialist skills in areas such as electrical work, plumbing, roofing, or engineering.

Definition Of A Subcontractor

According to HMRC, a subcontractor is any business that has agreed to conduct construction operations for another business or contractor. This includes the following:

• Companies, partnerships and self-employed individuals.
• Labour agencies or staff bureaus providing workers.
• Foreign businesses carrying out construction work in the UK.
• Local authorities or public bodies engaged in construction for someone else.
• Gang leaders who hire workers to complete contracted work.

In some cases, businesses may act as a subcontractor and a contractor, depending on their position within a project’s supply chain.

What Is A Contractor?

A contractor is a business or individual responsible for delivering a project. They negotiate with clients to oversee and complete construction or service-based projects. Contractors often hire subcontractors to handle specialised tasks that require specific expertise.

Responsibilities Of A Contractor

• Project Management: Overseeing the planning, execution and completion of a project.
• Compliance: Ensuring work adheres to industry regulations and health and safety laws.
• Budgeting & Cost Control: Managing financial aspects, including payments to subcontractors.
• Risk Management: Identifying and mitigating project risks, including subcontractor compliance.

Related Reading: Principal Contractor Responsibilities: A Comprehensive Guide For The UK Construction Industry

What Is The Difference Between A Subcontractor And A Contractor?

While contractors and subcontractors contribute to project delivery, they have distinct roles:

Example Of A Subcontractor In Action

To illustrate how subcontractors fit into project delivery, consider the construction of a commercial office building:

1. A property developer hires a construction contractor to manage the project. 
2. The contractor oversees planning, budgeting and regulatory compliance.
3. The contractor hires subcontractors to perform specialist tasks, such as:
   1. An electrical subcontractor to install wiring and lighting.
   2. A plumbing subcontractor to fit water and drainage systems.
   3. A roofing subcontractor to construct and weatherproof the roof.
4. Each subcontractor works under the contractor’s direction but manages their own team and schedules.

This division of labour ensures projects are completed efficiently, allowing experts to handle specialised tasks.

Advantages Of Using Subcontractors

Hiring subcontractors offers several benefits to contractors and businesses, particularly in industries with complex projects and fluctuating workloads.

1. Access To Specialised Skills

Subcontractors bring expertise in niche areas, allowing contractors to complete projects without maintaining a full-time workforce for every skill set.

2. Flexibility In Workforce Management

Subcontractors can be hired project-by-project, reducing overhead costs and enabling contractors to scale operations based on demand.

3. Cost-Effectiveness

Instead of hiring permanent employees for short-term projects, businesses can control costs by outsourcing specific tasks to subcontractors.

4. Increased Efficiency And Productivity

By leveraging subcontractors’ specialised knowledge, contractors can ensure high-quality work is completed faster, leading to improved project timelines.

5. Reduced Business Risk

Subcontractors assume responsibility for their portion of the work, including liabilities related to workmanship and compliance with industry regulations.

Disadvantages Of Using Subcontractors

While subcontracting offers many advantages, there are also challenges to consider:

1. Less Control Over Work Quality

Since subcontractors operate independently, contractors must implement strict quality control measures to ensure work meets required standards.

2. Communication Challenges

Coordinating multiple subcontractors within a project requires clear communication to prevent delays and misunderstandings.

3. Compliance And Liability Risks

The contractor may be held responsible if the subcontractor fails to meet legal or regulatory requirements. Ensuring subcontractors are properly vetted is essential.

4. Dependence On Availability

During high-demand periods, securing skilled subcontractors can be challenging, leading to potential project delays.

Health And Safety Responsibilities Of Subcontractors

Subcontractors must adhere to stringent health and safety regulations, particularly in construction, utilities and manufacturing industries.

Legal Obligations

Under the UK’s Health and Safety at Work Act 1974, subcontractors must:

• Maintain safe working conditions.
• Provide appropriate personal protective equipment (PPE).
• Follow risk assessment and hazard control measures.

Related Reading: A Guide To Health And Safety Procedures For Contractors

Contractor’s Role In Ensuring Compliance

Contractors are responsible for ensuring subcontractors meet health and safety requirements. This includes the following:

• Conducting pre-qualification checks to verify credentials.
• Monitoring site safety and ensuring all workers follow established protocols.
• Providing necessary training and support to maintain workplace safety standards.

Regulatory Compliance

In the construction industry, subcontractors must also comply with the Construction (Design and Management) Regulations 2015 (CDM 2015), which outline specific health and safety responsibilities for contractors and subcontractors.

Related Reading: How To Become A Contractor (In UK Construction)

Ensuring Compliance With Veriforce CHAS

Veriforce CHAS helps contractors and businesses verify subcontractor compliance, reducing risks and ensuring safe and efficient project execution.

How CHAS Supports Contractors And Subcontractors:

• Pre-Qualification Checks: Ensure subcontractors meet compliance requirements before being hired.
• Health & Safety Verification: Verify subcontractors’ adherence to UK health and safety regulations.
• Supply Chain Management: Access a database of pre-qualified subcontractors, reducing administrative burdens.

By partnering with CHAS, businesses can confidently hire subcontractors while safeguarding against financial, legal and operational risks.

Subcontractors play an essential role in delivering high-quality projects across multiple industries. Understanding their responsibilities, benefits, and compliance requirements helps contractors make informed decisions when hiring external experts.

For businesses looking to streamline their subcontractor management process, CHAS offers a trusted platform for verifying compliance, reducing risk and ensuring safe, high-quality project delivery.

Take control of your subcontractor management, join CHAS today.