To Use - or Not to Use - a Subcontractor?

That is a common question, and one many homeowners understandably worry about when hiring a general contractor.

Some concerns are valid. There are general contractors often referred to as “paper generals”—companies with no in-house employees that rely entirely on subcontractors. In those cases, there can be a higher overall cost due to added layers of markup. In other situations, however, using subcontractors is required by law when a contractor does not hold specific licenses or certifications.

On the opposite end of the spectrum, some general contractors use little to no subcontractors at all. This can work well when the contractor has a skilled in-house team and can often save money for everyone involved. As with most things in construction, there is a gray area—and the right approach depends on the scope and complexity of the project.

When Subcontractors Make Sense

Consider flooring as an example. Installing luxury vinyl plank (LVP) in a single room is a relatively straightforward task that many skilled contractors or handymen can handle easily. However, installing LVP throughout a five-bedroom, multi-level home—including stairs—adds complexity. In that case, a general contractor may choose to bring in a flooring specialist who handles those details every day. Specialists often work faster and more efficiently, which can actually reduce costs for both the homeowner and the contractor.

(For the record, at LWC we handle both of these scenarios with our in-house team.)

Should You Hire Subcontractors Directly?

You can—and some homeowners do. However, one common misconception is that hiring subcontractors directly is always cheaper. In reality, subcontractors often offer discounted pricing to general contractors they trust because the job is well-organized, scheduled properly, and runs smoothly. That discount typically offsets the contractor’s markup, which often goes toward taxes, insurance, and project management.

In some cases, hiring a subcontractor directly can actually cost you more than going through a general contractor. There’s also the added responsibility of finding, vetting, scheduling, and coordinating multiple trades—something many homeowners don’t have the time or experience to manage effectively.

How We Use Subcontractors

Subcontractors are a valuable tool when used correctly. At the same time, although we are a general contractor, we also work as a subcontractor due to the wide range of skills within our team. We are often hired by other contractors, property managers, and homeowners who are managing multi-trade projects.

Services we regularly perform in-house include:

• Carpentry and framing
• Doors and windows
• Interior and exterior trim
• Siding
• Bathroom and kitchen remodels
• Most types of flooring
• Decks, pergolas, and patio covers
• Roof structures
• Drywall repairs (small to medium)
• Cabinets and lighting

Projects that typically require licensed subcontractors include:

• Custom homes
• Garage builds
• ADUs and additions
  (These permitted projects require licensed electrical and plumbing trades.)

Tasks where we prefer to use trusted specialists include:

• High-end tile work
• Roofing
• HVAC
• Large concrete projects

Subcontractors aren’t a red flag—they’re a tool. The key is working with a general contractor you trust, who knows when to use in-house crews and when a specialist will deliver the best result. When used thoughtfully, subcontractors can improve quality, efficiency, and overall value on a project.