Most people think of small
builders and remodelers as general
contractors who maintain crews of
carpenters and only sub out special
trades. Many firms, however, now
subcontract major portions of their
work. Often this includes tasks traditionally
performed by employees,
such as framing and finish carpentry.
Some firms sub out even the job
management to a construction management
firm, which in turn manages
the other subs. With the persistent
and growing shortage of skilled
labor, this reliance on "non-traditional"
subs has spread from sophisticated
companies to more conventional
firms that also maintain a core
crew. But in many cases, the legal
and tax status of such subcontractor
relationships is vague.
Are Your Subs Legitimate?
Consider a journeyman-level carpenter
who first becomes a sub