General contractor vs. subcontractor: what’s the difference?
A general contractor (GC) holds the prime contract with the property owner and is responsible for delivering the entire project — scheduling, coordinating trades, pulling permits, and managing the budget. Subcontractors are specialty trade contractors the GC hires to perform a defined scope, such as electrical, plumbing, roofing, or concrete. The owner pays the GC; the GC pays the subs. Both must be properly licensed for the work they do.
The relationship is contractual and hierarchical. The owner has a direct contract with the GC, and the GC has separate contracts with each subcontractor. Subs typically don’t have a direct agreement with the owner — which is exactly why Arizona’s preliminary 20-day notice exists, so a sub or supplier can preserve lien rights against a property they have no direct contract on.
License classifications map to these roles. In AZ ROC terms, a general building classification (the “B” family) authorizes a contractor to take on and coordinate a full project and subcontract the trades, while specialty classifications (residential “R/CR” or commercial “C” trades) cover a single craft — how most subcontractors are licensed. A subcontractor still needs the right classification for its scope; being hired by a GC doesn’t cover an unlicensed trade.
At Plumb Intelligence we tie each permit to the contractor of record and their ROC classification, so you can see who’s holding the prime contract on a job versus which trade contractors are active — useful whether you’re vetting a hire or mapping who runs the work in a territory.
Related questions
- Who pulls the permit, the GC or the subcontractor?
- Usually the general contractor pulls the primary building permit and is the contractor of record, though specialty subs sometimes pull their own trade permits (e.g. electrical or plumbing) depending on the job and jurisdiction.
- Does a subcontractor need its own license?
- Yes. In Arizona a subcontractor needs the correct ROC classification for its trade. Being hired by a licensed GC does not cover a sub doing work it isn’t licensed for.
- Does the owner pay subcontractors directly?
- Typically no — the owner pays the general contractor, who pays the subs. That indirect chain is why subs and suppliers use preliminary notices to protect their lien rights.
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