In a project where the owner hires a construction manager, which statement about subcontractors is true?

In a project where the owner hires a construction manager, which statement about subcontractors is true?

• A. Subcontractors are considered prime contractors
• B. Subcontractors are never involved
• C. Subcontractors are employees of the owner
• D. Subcontractors schedule the project themselves

Answer: (A)

When the owner hires a construction manager, the construction manager becomes the main contracting party with the owner and is responsible for delivering the project while coordinating all the work. Subcontractors are brought in by the construction manager to perform specific parts of the work and are not direct employees of the owner. Because the construction manager holds the prime contract with the owner, subcontractors operate under that prime arrangement and, for their own scope of work, are treated as the main contracting entities within their trades under the construction manager’s oversight. This is why, in this setup, subcontractors are considered prime contractors in the sense that they hold the main contracting responsibility for their portion of the project under the construction manager’s umbrella.

When the owner hires a construction manager, the construction manager becomes the main contracting party with the owner and is responsible for delivering the project while coordinating all the work. Subcontractors are brought in by the construction manager to perform specific parts of the work and are not direct employees of the owner. Because the construction manager holds the prime contract with the owner, subcontractors operate under that prime arrangement and, for their own scope of work, are treated as the main contracting entities within their trades under the construction manager’s oversight. This is why, in this setup, subcontractors are considered prime contractors in the sense that they hold the main contracting responsibility for their portion of the project under the construction manager’s umbrella.