Contents:
What are a general contractor and a subcontractor?
A general contractor enters into the main agreement with the client and engages other companies or specialists to deliver specific parts of the work. A subcontractor accepts a defined scope under an agreement with the general contractor.
This division of roles is common across many construction markets, although its legal effect depends on the governing law and the wording of the contracts. Before work begins, check the local requirements for licences, permits, health and safety, taxes and the form of the agreement.
In Russia, the basic rule is set out in Article 706 of the Civil Code of the Russian Federation (in Russian): a contractor may engage subcontractors unless the law or the agreement requires the work to be performed personally. In that case, the contractor acts as the general contractor.
The names used for these roles also vary. “Main contractor”, “prime contractor” and “general contractor” may describe similar positions. A clear project management organisational structure helps everyone see who makes decisions, who supplies information and who accepts each stage.
Typical tasks of a general contractor
- agree the scope, result, schedule and acceptance process with the client;
- divide the work into packages and manage the interfaces between them;
- maintain the overall programme and monitor quality and project records;
- coordinate changes, comments and decisions;
- accept subcontracted work and make payments under the agreed terms;
- carry out the safety duties assigned by the contract and local law.
Some coordination tasks may sit with a project manager rather than the general contractor. The article on construction project manager responsibilities explains that role separately.
Typical tasks of a subcontractor
- deliver the agreed scope to the required quality and schedule;
- follow the current drawings, specifications and technical documents;
- provide progress records, notices, inspection records and handover documents required by the agreement;
- manage risks and safety within its work area;
- correct confirmed defects under the contract and applicable rules.
Official guidance from the UK Health and Safety Executive and US Occupational Safety and Health Administration illustrates a broad operational point: project coordination and safe work require action from both the lead contractor and the businesses controlling individual packages. The exact legal duties must be checked for the project location.
How is responsibility divided?
For project control, separate contractual relationships from day-to-day control of the work. A job title alone does not settle every question.
| Party | Main relationship | Operational focus |
|---|---|---|
| Client | Agreement with the general contractor | Requirements, funding, decisions and acceptance |
| General contractor | Main contract and subcontracts | Overall result, coordination, programme and interfaces |
| Subcontractor | Agreement with the general contractor | Its own scope, quality, schedule, records and work-area safety |
Main works contract and subcontract: what is the difference?
In a general contracting arrangement, these are two contracts with different parties and scopes of work. For Russia, Article 702 (in Russian) and Article 706 of the Civil Code of the Russian Federation provide the basis for the comparison; the specific handover and acceptance procedures are set out in the contracts.
| Comparison | Main works contract | Subcontract |
|---|---|---|
| Parties | Client and general contractor | General contractor and subcontractor |
| Subject | The work and result that the general contractor undertakes to provide to the client | The agreed scope assigned to the subcontractor |
| Who receives the result | The general contractor delivers it to the client | The subcontractor delivers it to the general contractor under the subcontract |
| Who is liable to the client | The general contractor, including for the consequences of the subcontractor’s breaches | The subcontractor is liable to the general contractor for its scope; direct claims by the client are possible where the law or the contract provides for them |
Under Article 706 of the Civil Code of the Russian Federation, the general contractor is liable to the client for the consequences of the subcontractor’s improper performance, and to the subcontractor for the consequences of the client’s breaches. Direct claims between the client and the subcontractor are generally restricted unless the law or the contract establishes a different rule.
In a common arrangement, the general contractor answers to the client for the overall delivery, while the subcontractor answers to the general contractor for its package. Direct rights between the client and subcontractor, responsibility for safety and the effect of actual supervision vary by jurisdiction and contract.
Direct appointments, mandatory rules and the way work is controlled on site may change this structure. Compare the proposed contract chain with local construction, employment, safety, tax and licensing requirements before signing.
Why do projects use subcontractors?
Specialist expertise
Separate businesses may specialise in design, building services, façades, glazing, finishes or commissioning. The general contractor brings those skills together to deliver the project as a whole.
Flexible capacity
A contractor can assemble a team for the size and stage of a project while retaining permanent staff for core functions. Before appointing a subcontractor, review its available resources, comparable work and current commitments.
Equipment and authorisations
Some activities require specialist equipment, trained staff, permits or licences. The requirements depend on the country and type of work, so verify the business and its documents through the appropriate local registers.
What should a subcontract include?
A written subcontract turns project expectations into terms that both parties can check. The UNCITRAL Legal Guide on international construction contracts recommends addressing the permitted scope of subcontracting, the selection of subcontractors and the consequences of there being no direct contract between the client and subcontractor.
- the exact scope, exclusions and responsibility boundaries;
- the drawings, specifications, source information and order of precedence;
- the programme, milestones and delay notice procedure;
- the price, advance payment, payment stages, retention and supporting records;
- the process for instructing and pricing changes;
- quality criteria, inspections, concealed work records and acceptance;
- health and safety duties, site access and sharing of risk information;
- handover records, warranties and defect correction;
- liability, permitted security and limits on recovery;
- suspension, termination, governing law and dispute resolution.
Liquidated damages, interest, retention and recovery of correction costs operate only within the contract and applicable law. They improve predictability but do not guarantee recovery.
The subcontract should define how defects are reported, inspected, corrected and accepted, who may appoint another contractor if correction is not completed, and how the related time and cost are recorded. Any financial adjustment, recovery of costs, suspension or termination must follow the agreement and applicable law; the contract wording alone does not guarantee that a particular remedy is available.
For Russian contracts, Article 723 of the Civil Code of the Russian Federation (in Russian) describes the consequences of defects. Depending on the circumstances and the contract terms, remedies may include correction of defects, a reduction in the price or reimbursement of expenses; the right to have a third party correct the work should be specified in the contract.
Have the final form reviewed by a professional familiar with the law of the project location and the proposed contract structure.
When preparing the document, check the listed terms against your work arrangement. The article “Subcontract for carrying out works: a sample” (in Russian) explains the contract’s contents and the set of documents provided by 101.
How should the work be coordinated?
- Verify the business, authority to sign, licences, insurance and relevant experience using suitable local sources.
- Issue one controlled set of drawings and define every work-package boundary.
- Name the people responsible for decisions, site access, quality, safety and records.
- Link payment stages to measurable work and documented acceptance.
- Keep a register of changes, comments, response dates and agreed decisions.
- Close each stage with the records required by the contract and local rules.
Connect every package to the overall construction work schedule. Dependencies, early warnings and agreed recovery actions help prevent one delayed activity from blocking the next trade.
Advance payments create credit and performance risk. Before paying, verify the counterparty, define how the funds may be used, agree supporting records, divide payments into stages and consider lawful security. Whether money can be recovered depends on the evidence, contract terms, the counterparty’s assets and the available procedure.
What should you do if a dispute arises?
Collect the contract, appendices, correspondence, acceptance records, photographs, notices and a calculation of the claim. Send any notice in the form and within the period required by the agreement. Preserve evidence of the work before the disputed result is altered.
The next steps depend on the governing law, any pre-action requirements and the agreed dispute-resolution method. A local lawyer or technical specialist can assess the available claim, deadlines, evidence and likely cost for the specific project.
