A contractor is a person or company that works on a contractual basis, negotiating deals with different clients to work on specific jobs or projects.

Unlike employees, contractors do not carry out regular work for a single employer. Instead, they work for a number of different clients as and when required. Contractors are therefore considered to be freelancers.

Contractor vs. subcontractors

Like contractors, subcontractors work on a freelance, contractual basis; however, there are a few important differences between contractors and subcontractors.

Firstly, contractors take on whole projects then hire subcontractors to work on specific aspects of that project. Contractors are therefore involved with bigger-picture tasks and project management, while subcontractors are responsible for specific, specialised tasks assigned by the contractor.

Secondly, contractors negotiate deals with the end client, whereas subcontractors usually only negotiate deals with contractors who have already secured the overall job or project.