The Companies that you setup in the Companies and Contacts area are used in a couple of different software features:
On the Repair Estimator, there is a Bid Manager widget where you can track contractor bids and assign the bid to a specifc Contractor.
On the Scheduler you can assign responsibilities to Companies for Schedule tasks to schedule the Company's start and completion dates for major renovation items.
On the Expense Tracker you can assign Expense to specific Companies so you can track how much you've paid each individual company on your projects.