In the context of hiring a construction manager, which statement about subcontractors is true?

The statement regarding subcontractors being prime contractors is not accurate, as subcontractors are typically not classified under that term. A prime contractor is the main contractor responsible for the entire project and has a direct contract with the owner. In contrast, subcontractors are engaged by the prime contractor or general contractor to perform specific tasks or segments of the project, usually under the terms of a subcontract.

The correct answer emphasizes the structure of contractor relationships in construction projects, where the prime contractor oversees the entire scope of work and manages the subcontractors handling specialized functions. Subcontractors are essential to fulfilling the project requirements, and they depend on the prime contractor for their assignments and overall project direction.

Subcontractors operate under the leadership of the prime contractor, and their contractual obligations and payment terms come from the prime contractor rather than the project owner. This hierarchical relationship clarifies the roles and responsibilities within the construction management process.