Finding & Qualifying Subcontractors

A sub's failure becomes your problem — so qualify them before you hire.

Find them

Referrals, other contractors, trade associations, and supplier recommendations.

Qualify them

• License for their trade (and state).
• Insurance — require their COI (general liability and workers' comp) and that they name you as additional insured.
• References and past work — have they done jobs like yours, on time?
• Capacity and financial stability — can they handle the size and carry their costs?
• Bonding if the job requires it.

Going Deeper (Intermediate)

Find subs through referrals, trade associations, and supply houses — then qualify them before you ever sign: license, insurance, financial stability, references, capacity, and safety record. The cheapest sub is frequently the most expensive one.

Advanced / Pro-Level

A real prequalification process:

• Verify license, COI (with required limits), and bonding; confirm additional-insured capability.
• Check financial health — can they float their own payroll and materials, or will they fold mid-job?
• Review safety record (EMR) and references on similar work.
• Confirm capacity matches your schedule — a great sub who's overcommitted will still wreck your job.
• Build a stable of reliable subs and relationships; loyalty and reliability beat chasing the lowest number every time.

Practice Challenge

A sub's bid is 20% below everyone else's. Name two things to check before celebrating. (Answer: (1) scope — did they exclude/miss something everyone else included? and (2) viability — license, insurance, financial stability, and capacity; a too-low bid often signals a scope gap or a sub who'll fail mid-job, either of which costs you more than the "savings.")

In Practice

A GC hires the cheapest sub with no license or insurance — the sub causes damage and the claim lands on the GC. Qualifying subs on license, insurance, and references prevents it.

Common Mistakes to Avoid

• Hiring on price alone
• Not verifying license and insurance
• Skipping references and capacity checks

Takeaway: Qualify every sub on license, insurance (COI + additional insured), references, capacity, and stability — their failure becomes yours.

Educational content — follow tool manufacturer instructions and have subcontracts reviewed by an attorney.