This is how subcontracting works.

Contractors bid on house to paint

CONTRACTOR #1:   Bid $3-million 

• One million for paint
  
• One million for labor
• One million for profit

CONTRACTOR #2:   Bid $7-million

  

• .. 
• ..
• ..

CONTRACTOR #3:   Bid $10-million

• 
  
• ....
• ....
• ....

Who was awarded the contract?