EP219: When and How to Use Subcontractors in Your Construction Projects

Always vet subcontractors thoroughly before hiring, ideally before you urgently need them, to avoid rushed and potentially poor decisions.

Obtain and verify current Certificates of Insurance (COI), licenses, and workers' compensation for every subcontractor, and maintain an organized digital record of these documents.

Establish clear communication preferences with subcontractors at the outset to ensure timely responses and smooth project coordination.

Develop detailed specification sheets and a formal subcontractor agreement to clearly outline expectations, payment terms, and required quality standards for every job.

Build a network of 2-3 vetted subcontractors for each trade, allowing for flexibility in scheduling, matching project requirements, and handling different project complexities.

Verify subcontractor work, especially during initial projects, by visiting job sites and observing their methods to confirm quality aligns with your standards.

Cultivate strong relationships with your subcontractors by paying them promptly (even sooner than net terms), and showing appreciation through gestures like bringing snacks, to ensure loyalty and preference for your projects.