Are you interested in providing a specific service to companies or individuals? If that’s the case, you are probably thinking of working as a contractor.
So, what is a contractor exactly?
Contractors are self-employed professionals hired across a wide range of industries to provide a service in both short-term and long-term projects.
This makes it important to know the differences between types of contractors, roles, responsibilities, and more; for that reason, this article will cover the following:
- What contractors are and the industries they typically work in
- Key differences between contractors, employees, and freelancers
- The role of general contractors in construction projects
- Tips for getting started as a contractor
An AI resume builder can help you begin a quick and successful hiring process, but what if you prefer to work as an employee or freelancer?
Keep reading to get all the necessary information about contractors.
What Does a Contractor Do?
A contractor is an independent professional or business hired to perform specific tasks or projects for clients. If you work as a contractor, you would manage your own:
- Taxes
- Benefits
- Work methods
Contractors operate across various industries, including construction, IT, healthcare, and more.
They are typically brought in for their expertise in particular areas, allowing companies to access talent without the long-term commitment of hiring full-time employees.
Contractors can work on-site or remotely, depending on the nature of the project and the agreement with the client.
Responsibilities can range from overseeing entire construction projects or consulting expertise.
What is a general contractor?
One of the most common types of contractors is known as a “general contractor.” General manage construction projects from start to finish. Their responsibilities cover a wide range of tasks to ensure successful project completion while working with construction workers.
Here are some of the key responsibilities of general contractors:
- Planning and scheduling the entire construction project
- Obtaining necessary permits and licenses
- Hiring and coordinating subcontractors
- Purchasing materials and equipment
- Managing the budget
- Communicating progress and issues to the client
- Tracking project timelines and making adjustments as needed
- Handling final inspections and project closeout
General contractors must juggle these duties to deliver projects on time, within budget, and to the client’s specifications.
Differences Between a Contractor and Employee
Contractors and employees may have similar roles in many cases, but each has their own relationship with the companies they work for. Below are the key differences between contractors and employees:
Employees
- Directed by the employer on how, when, and where to work
- Typically have ongoing, indefinite employment
- Receive benefits like health insurance and paid time off
- Employers withhold taxes for them
- Use company-provided tools and equipment
- Receive job training from the employer
- Have more workplace legal protections
Contractors
- Have more autonomy over their work methods and schedule
- Hired for specific projects or time periods
- Do not receive company benefits
- Responsible for their own tax payments
- Generally supply their own tools and equipment
- Expected to have the necessary skills already
- Can work for multiple clients simultaneously
- Have fewer workplace legal protections
It’s important to understand these differences so that everyone involved is in line with labor and tax laws.
Contractor vs. Freelancer: What’s the Difference?
Unlike employees, contractors and freelancers, such as freelance writers or graphic designers, are both self-employed professionals. But, they differ in several key areas.
Contractors
- Typically work on longer-term projects for a single client
- Usually have deeper, more exclusive relationships with their clients
- May work on-site at the client’s location
- Often receive regular payments throughout a project
- Tend to focus on a specific industry or skill set
- Might adhere more closely to the client’s schedule
- Often work under more formal, detailed contracts
Freelancers
- Often deal with multiple short-term projects for various clients
- Maintain more diverse but potentially shallower client relationships
- Typically work remotely from their own space
- More likely to be paid per project or hourly
- May offer a broader range of services across different fields
- Generally have more flexibility in their work hours
- May operate with simpler agreements or statements of work
In short, both contractors and freelancers offer businesses flexibility and specialized skills, but the choice between them depends on project needs, duration, and desired working relationships.
Tips for Getting Started as a Contractor
Now that you have cleared up the definition of a contractor, you should have an idea of how to get started. Follow these key steps to get started:
- Assess your skills and choose a niche that aligns with your expertise and interests.
- Gain relevant experience through apprenticeships, internships, or working under licensed contractors.
- Obtain the necessary education and certifications.
- Register your business and obtain required licenses and permits.
- Secure proper insurance coverage, such as general liability insurance.
- Build a network of clients, suppliers, and potentially subcontractors. Networking within your industry can lead to valuable opportunities.
Remember, requirements such as having certain certifications vary by location and specific field, so research your local regulations carefully.
Key Takeaways
While being self-employed as a contractor can come with a lot of benefits, there are key things to keep in mind.
It’s important to remember that:
- Contractors and freelancers differ in work arrangements and client relationships
- Contractors typically work on longer-term projects
- You should take part in an internship or apprenticeship to gain some experience
- Contractors are responsible for their own taxes, benefits, and work styles
- You should get the right certifications for your field and location
Also, if you decide to become a contractor, marketing yourself with the right resume template and building a strong application will help you land plenty of roles!
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