How to Subcontract Work in Construction

March 19, 2024

Most construction companies aren’t great at every aspect of the job. That’s why many opt to subcontract work. The right contractors can add a great deal of value to the project in terms of specialized knowledge, efficiency, and cost savings.

To make the most of your contractors, it’s important to set up a process for finding, screening, and vetting them. Use forms, questionnaires, or checklists to ask questions and evaluate each potential contractor. For example, you can look into their insurance coverage and workers’ comp experience mod rating, as well as their reputation and history of working with general contractors. You can also check the Occupational Safety and Health Administration’s inspection list to find out if they’ve received any citations.

You should also make sure that you and your contractors have a clear contract in place before starting work on any tasks. This should outline all the expectations of both parties, including payment deadlines and terms, insurance requirements, and project timelines. Make sure to include any specific milestones, as well as a clause that stipulates if there are any penalties for late delivery of deliverables.

Most contractors are looking to build a career in the industry, so they’ll be much more likely to do great work for you if they know that they will get paid on time. You can help ensure that your contractors will stay happy and eager to work for you by setting up a system that tracks payments and is easy for everyone to access.

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