what is a contractor

A contractor is a self-employed person who operates independently on a contract basis. They are not employees of the organization they work for, but instead run their own entity and are contracted by organizations to work on particular projects or assignments. Contractors can work for a company and be paid for their services, but they are not technically on the organizations payroll. They can also work for multiple companies at one time. Contractors may hire subcontractors to do part or all of the work for a construction project. Contractors are responsible for supplying the necessary equipment, material, labor, and services to complete a project. They manage vendors and trades, and they also serve as the point of contact for the client. Contractors may also be responsible for maintaining accurate records and monitoring cash flows.