Many contractors find it more efficient
to hire subcontractors
instead of employees. Unlike employees,
subcontractors aren't entitled to
unemployment benefits or workers
compensation, and subs are only paid
when their skills and abilities are
needed. Also, hiring a subcontractor is
often the only way to obtain specialized
expertise and equipment, and to benefit
from special licenses not available to
you and your employees.
But there's another significant difference
that can be a problem. It comes
into play when the general contractor is
dissatisfied with the work being done. If
a contractor finds himself working with
an underperforming subcontractor and
wants to end the relationship, he cannot
simply fire him. A subcontractor is
not an employee.
Cancellation. When a contractor
"fires" a sub,