The construction industry relies on subcontractors for areas of a project that require specific knowledge and expertise — areas where general construction experience isn’t adequate. Subcontractor specialties range from roofing to electrical work, masonry to glass, glazing and curtain wall, and beyond. While their services are essential to nearly every project, good subcontractors — those who show up on time and follow through on a contractor’s direction — are harder to come by than in the past, especially as fewer workers are pursuing skilled trades.
That’s why it’s more important than ever to conduct a thorough screening of subcontractors before hiring. Taking steps to ensure a candidate can deliver the quality results you expect, on time and on budget, ultimately serves to build your reputation with existing and prospective customers. If you’re unsure where to start, the following questions can help you establish your expectations from the get-go, and set a precedent for clear, honest communication that’s essential to any longstanding professional relationship.
1. How will you meet expectations and qualifications?
To know if a subcontractor can perform the duties you require, it’s important to first outline your expectations for the project in as much detail as possible. Review the qualifications and technical skills required to complete the task and specify the certifications and previous work experience you’d like your subcontractors to demonstrate. If possible, consider subcontractors that work exclusively with Union laborers; labor unions require members to undergo extensive, ongoing training to uphold their reputations as the best-qualified workers of their trade. You also need to make sure the subcontractor you hire is up for the task and won’t require any hand-holding. You may even ask about machinery and tools they plan to use, as antiquated or run-down equipment can pose liability risks, be prone to breakdowns, and/or produce work of less-than-acceptable quality.
2. Do you have enough workers to get the job done?
Subcontractors face many of the same skilled labor shortage challenges as others in the construction industry. Make sure they’re not adversely affected by a lack of workers, which can impact tight project timelines. You may also want to ask about the tenure and qualifications of their workforce. If a subcontractor relies on temporary workers rather than permanent employees, it may indicate an inexperienced labor pool that won’t be able to perform work to meet your quality standards or time frame.
3. What’s your safety record?
The construction industry has its inherent risks, so it’s critical to have a conversation about a prospective subcontractor’s approach to safety. Ask them to detail the protocols they have in place to prevent injuries. Follow through by checking safety inspection reports for any OSHA violations, and find out their Experience Modification Rate (EMR). EMR is the number insurance companies use to gauge past cost of injuries and calculate future chances of risk. The lower a company’s EMR, the lower its worker compensation insurance premiums will be. EMR is often referred to as “the mod factor,” and you can find information on a company’s rate through the state rating bureau. Generally, a number of 1.0 or lower is indicates the presence of a strong safety program. Insist on safety. If a subcontractor shows up at your job site and isn’t following safety protocols, an unexpected visit from an OSHA inspector could shut down your operations.
4. Can you provide references?
It’s standard to request references from a potential employee on your payroll, so why wouldn’t you ask potential subcontractors to provide the same? What’s even more important is that you actually follow up with those references! Networking in the construction industry is commonplace, so ask your peers if they’ve worked with your prospective subcontractor and if so, whether or not they were satisfied with their work. Many subcontractors also have websites, social media channels, and/or ratings on Google and other online platforms. Watch for recurring red flags, like reports of lateness, delayed projects, cost overruns and other inconsistencies.
5. Will you sign a contract?
Any construction transaction, no matter how small the job, requires clearly defined documentation to set expectations. This protects both parties and ensures they’re approaching the work from the same frame of reference. Quality subcontractors will have a boilerplate contract that requires minor modifications. Once you’ve thoroughly assessed the work your project requires from the subcontractor in question, draft a contract that details the scope of the work to be provided, the timelines they’re expected to follow, and pricing and payment terms, as well as the materials and services that should be included. Clearly outline expectations for cleaning up the worksite and debris removal — the last thing you want to deal with is the cost and hassle of disposing of materials or other refuse. Also cover any workmanship or product warranties, quality standards and required licensing, and outline terms that would constitute termination of the agreement. It’s best to have a legal expert review your subcontractor agreements to ensure you have liability protections in place and that you’ve covered all of your bases.
6. Are you properly insured?
As a contractor, you wisely purchase insurance to protect your business and its workers. You’re also likely bonded to ensure clients that you’ll complete the work you’ve promised and will pay for any materials or labor you need to finish the job. You should require your subcontractors to have similar protections in place so that you’re not held liable for any damage or injuries caused as a result of their operations. Make sure your subcontractors have their own workers’ compensation coverage for all their employees, along with minimum liability coverage — both general and auto. Require all subcontractors to provide a certificate of liability as proof of insurance. Reputable subcontractors are familiar with these expectations and won’t hesitate to provide the documentation you need.
There’s no doubt that having reliable and trusted relationships with your subcontractors helps your operations run more smoothly. Though building these relationships can take time, starting with clearly defined parameters of what you expect and what they’re able to provide from the get-go will set the stage for a healthy working partnership. Taking steps to ensure the people you work with are able to deliver on their promises, and holding them accountable from the beginning will more than pay off down the line, as building a team with those you can rely on guarantees your success as well.