Who and what are contractors and why are they called contractors?
Answers:
This is how it makes sense to me. A contractor is someone who you have a contract with to complete some type of job. Say you hire a crew to build your house. You go to someone who is licenced in that type of work. You then make a contract with this person stating that they will complete this task (building the house and everything involved in that). They then complete the work. If the person you hired directly cannot complete a certain task themselves they sub-contract out, which means that they hire someone else to do the certain job. This happens often with large projects. Different people have to do each aspect of the work, there are the people that opperate the heavy equipment (like excavators, and back hoes), then you will have a different company come in and do the concrete work. Then you will have another company come in and do the frame work and exterior. Mostly these same people will do the finishing work on the interior as well. Many places also require that the electrical and plumbing be done by licenced and bonded individuals, so often this work also has to be done by yet another company (or sub-contractor... and so on and so on.) Most projects involve many many different companies. And all of them can't get paid until the main contractor gets paid. So when you pay the first guy you hired to do all of the work to build your house, he has to pay all of the other people to finish what he can't.
Other answers:
Gidday,
Go to this site it explains it the best.
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