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Earn +20 ptsQ: What is the difference between a principal and contractor?
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What is the difference between a prime contractor and a subcontractor?
The prime contractor is contracted by the end customer. Sub-contractors are contracted by the prime contractor or other sub-contractors.
What is the relationship between a subcontractor and main contractor in relation to payments and other matters?
The customer pays the contractor, and the contractor pays the sub-contractor. The sub-contractor does the work but the contractor remains responsible for ensuring that the work is done prompptly and correctly. The contractor ensures that all legal requirements for the work are met, and that the sub-contractor hasan appropriate amount of liability insurance, in the event that something goes wrong and horrible law suits result.
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