MHIC NASCLA Contractors Practice Exam

Who are contractors that can only contract with another contractor or subcontractor?

1. Subcontractors

2. Independent contractors

3. General contractors

4. Licensed contractors

The correct answer is: Subcontractors

Subcontractors are specialized tradespeople or firms that are hired by a general contractor to perform specific tasks or portions of a project. Their role is to provide services or labor directly related to a specific aspect of the overall construction project, such as plumbing, electrical work, or carpentry. Subcontractors typically do not have direct contracts with the project owner; instead, their contractual agreements are established with the general contractor or another contractor. This relationship allows the general contractor to manage multiple aspects of a project while relying on the expertise of subcontractors for certain specialized tasks. In contrast, independent contractors typically work directly for clients or companies and are not limited to working just with other contractors. General contractors oversee the entire construction project and have contracts with property owners as well as agreements with subcontractors to fulfill specific requirements. Licensed contractors can encompass various types of contractors, including general contractors and subcontractors, but the term does not specify a relationship of working strictly with other contractors or subcontractors. Thus, the defining characteristic of subcontractors is their contractual obligations that limit their work strictly to agreements with general contractors or other contractors.