Who's WhoFor everyone

Contractor vs Subcontractor vs Labour Contractor

Three roles, one confusing word. Getting the difference right tells you exactly who is accountable when something goes wrong — and who you should be paying.

AECORD Editorial3 min readConstruction 101

The Main (General) Contractor

The main contractor holds the primary contract with you, the owner. They are responsible for delivering the agreed scope — often the whole building — to the drawings and specification, on the agreed terms. Whether they do the work with their own crews or hand parts to others, the buck stops with them as far as you are concerned.

This is the party your written contract should be with. If a subcontractor's waterproofing fails, your remedy is against the main contractor, not the subcontractor you never signed with.

The Subcontractor

A subcontractor is engaged by the main contractor (not by you) to perform a defined specialist scope — electrical, plumbing, aluminium fabrication, waterproofing, lifts. They answer to the main contractor, who pays them and remains responsible to you for their work.

You benefit from specialists doing what they are best at, but note the contractual chain: you → main contractor → subcontractor. This is why your contract should require the main contractor to stand behind all subcontracted work and its defect liability.

The Labour Contractor (Thekedar)

A labour contractor, or thekedar, supplies and supervises manpower — masons, bar-benders, helpers — usually charging on a labour-rate basis (per sq ft of built area, or per unit of work) without supplying the main materials. In a "labour-only" arrangement, you or your contractor buy the cement, steel, bricks and everything else; the thekedar's crew builds with them.

This model gives owners more control over material quality and cost, but shifts the burden of procurement, storage, wastage control and coordination onto you. It works well for hands-on owners and for developers with their own purchase teams; it is harder for a first-timer with a day job.

Why The Distinction Matters

Two practical consequences flow from these roles. First, accountability: your written agreement should be with whoever carries responsibility for the delivered result — usually the main contractor — and it should make them answerable for their subcontractors too. Second, material quality: in labour-only (thekedar) arrangements, material quality is your responsibility, so budget for someone to check what arrives on site.

A common source of disputes is a blurred arrangement where nobody is clearly the "main" party — an owner directly juggling a thekedar, a separate electrician, and a plumber, with no single point of accountability. If you go that route, accept that you are effectively acting as your own main contractor.

Frequently asked

Should my contract be with the main contractor or the subcontractors?

With the main contractor. Your contract should make them responsible for the whole scope, including anything they subcontract, so you have a single accountable party and are not chasing individual trades you never engaged. Ask for the contract to state that subcontracted work carries the same warranty and defect-liability terms as the rest.

Is labour-only (thekedar) cheaper than a full contractor?

The labour rate looks lower because it excludes materials — but you then buy, store and manage all materials yourself, and you carry the wastage and coordination risk. Whether it is truly cheaper depends on how well you procure and supervise. For hands-on owners it can save money; for busy first-timers, a full labour-plus-material contract is often better value once the hidden effort is counted.

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