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Taking on a job in construction or renovation will involve some kind of agreement between the worker and the client - it will describe what work is to be done, how much it will cost and approximately how long it will take. An agreement like this is called a 'CONTRACT'.

This is where the term 'CONTRACTOR' comes from - it means someone who follows a contract for their work. A contract may be small for a job like building a deck or renovating a bathroom. Or a contract might be very large, for example building a multi-unit residential building or a housing development.

A contractor and a client will sign this legal document to show that they have agreed on the type of work being done, along with other stipulations such as the following:

• When payments will be made;
• Insurance and permits that will be required;
• The scope of work, or where and when the job is taking place and at what stage it will be completed;

A person who handles many different types of contract jobs is called a GENERAL CONTRACTOR.

A SUB-CONTRACT is a situation where a General Contractor hires another worker to complete a portion of the job. For example, if a large home is being built, electricians might be hired as sub-contractors to complete the wiring and electrical panel hookups for the house. The sub-contractor may only be on the project for a short time until their work is complete.

You should ALWAYS work to a contract, no matter what size of job. It's also worth the time and money to consult with legal counsel who specialize in construction contracts when developing your contract language.