Subcontractor Management Best Practices for Commercial GCs
Your subs are your product. A GC is only as good as the subcontractors they put on the job — and the systems they use to manage them. Here's what separates great sub management from chaotic sub management.
Prequalification before you ever bid
Maintain a prequalified sub database with current financials, bonding, insurance, EMR, and past performance. Pre-qualified subs only go on bids. No exceptions.
Clear scope of work in every subcontract
Vague scope is the #1 cause of sub disputes. Use detailed scope sheets that reference specific drawing sheets, spec sections, and exclusions. Walk it through with the sub before signing.
Pre-construction sub meetings
Before mobilization, hold a pre-construction meeting with each sub — review schedule, coordination requirements, submittal expectations, safety rules.
Schedule of values and pay app discipline
Approve SOVs upfront, review pay apps line-by-line against installed work, never overpay for stored materials without a stored materials agreement.
Performance feedback loop
Score every sub after every project (quality, schedule, safety, paperwork). Use the scores to refine your sub bench.
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Frequently asked questions
How do I prequalify subcontractors?
Collect current financials, bonding capacity, insurance certificates, EMR safety rating, and references on at least the last 3 similar projects. Refresh annually.
What's the biggest cause of sub disputes?
Vague scope. Use detailed scope sheets that reference specific drawing sheets, spec sections, and exclusions — and walk them through with the sub before signing.
Should I pay for stored materials?
Only with a stored materials agreement, proof of insurance covering the materials, and verification of the storage location. Never pay for stored materials sight unseen.
How do I improve my sub bench over time?
Score every sub after every project on quality, schedule, safety, and paperwork. Use the scores to refine who you invite to bid.
Bottom line
Sub management is a system, not a skill. Build the system once and your superintendents stop putting out fires.
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