A contractor is an expert in a specific field. They frequently work in teams with subcontractors to handle specialized problems. If the client has significant leaky pipes, drywall, or roof repair issues, they should hire a contractor because they may be too much for one person to handle.
A handyperson is usually just one person working on whatever projects come their way. The client wouldn’t hire a contractor to replace cabinet hinges or paint the room. Instead of making multiple phone calls, the client will hire a handyman to handle all of these issues.