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An electrical contractor is a business person or firm that performs specialized construction work related to the design, installation, and maintenance of electrical systems.An electrical contractor is different from an electrician; an electrician is an individual tradesman and an electrical contractor is a business person or company that employs electricians. Both usually hold licenses and insurances to properly and safely operate a business, protecting the employees and home owners/business owners from insurance liabilities. These requirements vary from state to state. Electricians may work for an electrical contractor, or directly for individuals or companies.