Introduction: The Subcontractor Nightmare Every Contractor Faces
You’re three weeks into a $750K commercial build when your electrical subcontractor ghosts you. Their crew missed deadlines, their work failed inspections, and now you’re scrambling to fix their mistakes—on your dime. Sound familiar?
Hiring the wrong subcontractor can tank your profit, delay projects, and even damage your reputation. But vetting subs doesn’t have to mean weeks of back-and-forth or gambling on unknowns.
In this guide, you’ll learn:
- How to weed out unreliable subs in 5 minutes or less.
- The 4 critical documents to demand before hiring.
Let’s fix your subcontractor problems—for good.
Step 1: Set Your Non-Negotiables (Before You Even Search)
Save hours by filtering out unqualified subs upfront.
Create a checklist of non-negotiable requirements, such as:
✅ Valid License & Insurance:
- Use Contractor License Reference Sites to verify licenses in seconds.
- Demand proof of general liability insurance ($1M+ coverage) and workers’ comp.
✅ Specialized Experience: - Do they have 3+ projects similar to yours? Ask for photos or case studies.
✅ Capacity: - “Can your team handle a project of this size alongside your current workload?”
Time-Saver: Email this checklist to subs before scheduling calls. If they can’t meet these basics, move on.
Step 2: The 5-Minute Background Check
Automate vetting with these tools:
A. Compliance & Safety Checks
- ISNetworld: Validates OSHA compliance, safety programs, and insurance.
- Avetta: Tracks licenses, certifications, and audit histories.
B. Reputation & Reviews
- Google My Business: Look for patterns in reviews (e.g., “always late” or “poor communication”).
- Better Business Bureau (BBB): Check for unresolved complaints.
- Ask for References:
- “Can you share contact info for your last two clients?”
- Call them and ask: “Would you hire this sub again? Why or why not?”
Red Flags 🚩:
- No online presence or reviews.
- Refusal to provide references.
Step 3: Test Their Communication Skills (Before It’s Too Late)
Bad communication costs the construction industry $31B annually in rework.
Ask These Questions:
- “How will you update me on progress?” (Look for answers like daily logs, apps like Procore or Fieldwire.)
- “What’s your process for handling delays or change orders?”
- “Who’s your onsite foreman, and how do I reach them?”
Green Flags 🟢:
- They use project management software.
- They provide a single point of contact.
Step 4: Lock Down Contracts (No Legalese Needed)
Protect yourself with these 4 contract clauses:
- Scope of Work:
- Detail materials, labor, and deadlines. Use AIA G701 forms for clarity.
- Payment Terms:
- Include retainage (e.g., 10% held until final approval).
- Penalties for Delays:
- Example: $500/day for missing deadlines.
- Right to Audit:
- “Contractor may review sub’s payroll and invoices for accuracy.”
Step 5: Start Small with a “Test Project”
Never hire for a big job first.
Offer a paid trial project (e.g., a 1-week task) to assess:
- Quality of work.
- Adherence to deadlines.
- Responsiveness to feedback.
Phrase It Like This:
“We’d love to build a long-term partnership. Let’s start with a trial project to ensure we’re aligned.”
Conclusion: Vet Smarter, Build Faster
Vetting subcontractors isn’t about endless paperwork—it’s about working smarter. With this system, you’ll spend less time babysitting subs and more time winning projects.
Share this guide with a contractor who’s tired of unreliable subs!
Work With An Expert
Tired of subcontractors ghosting you, blowing budgets, or missing deadlines? As a professional construction accounting expert, I’ll show you proven methods on how to vet subs in 5 minutes—without the headaches.
Book a free 15-minute call with me, and I’ll give you:*
✅ My proven Subcontractor Vetting Checklist.
✅ Tips to avoid costly mistakes.
✅ A system to save hours on hiring.
*Let’s fix this—for good.