Kayla,
Here's a functional example - building a house.
You are the project manager. You hire a contractor to actually build the house but you are overseeing the project and paying the bills.. (In construction, this person you hire is called a "general contractor.").
The general contractor then hires plumbers electricians and framers. All of these people are "subcontractors." You are not responsible for them, but you hold the general contractor accountable for their work. The general contractor will pay the subcontractors and pay to fix their mistakes out of THIER budget, not yours.
Hope that helps.
Harry