Hiring subcontractors can make or break your job. Pick the wrong one, and you might not just lose money – you could damage your relationship with the GC or owner and slam the door shut on future work.
In this edition of ProfitDig Live, Chris Work, Jeff Spencer, and Jerry Work talk through how to vet subs, what red flags to watch for, and how to protect yourself from getting stuck with the fallout.
1. Do Your Homework (Yes, Really)
Don’t just grab the first name off a list. Ask around.
Talk to people in your network – especially contractors you trust who’ve been in the game longer than you. Ask:
- “Who have you used lately?”
- “Would you work with them again?”
- “Were they on time, on budget, and easy to communicate with?”
If the feedback sounds like: “Great work but hard to get on the phone” – that’s a red flag.
2. Understand That You’re Merging
Once you hire a sub, you’re basically merging companies for that job.
They’re representing you in the eyes of the GC or owner. Their work is a direct reflection on your company – good or bad. So don’t just think about whether they can do the job. Think about whether they can do the job the way you want it done.
3. Price Isn’t Everything
The cheapest quote is almost never the best choice. A lowball price might mean:
- They didn’t fully understand the job
- They’re desperate for work
- They’re hoping everything goes perfectly (it won’t)
That said, not all high-priced subs are better. Some might be more expensive because they rent equipment instead of owning it. Others may own everything and pass on the savings. Do the math. Look at the full picture.
4. Consider Creative Partnerships
If your sub doesn’t have equipment but you do, lease it to them.
You can work out a deal where they use your machines, which gives you:
- More control over the project
- Extra profit from leasing
- A win-win arrangement that benefits both parties
5. Get Sub Quotes Before You Bid
This is a big one.
If you think you’ll be subbing out part of the job, get those quotes up front and build them into your bid. That way:
- You protect your margin
- You can add a markup
- You don’t lose your shirt scrambling to find a sub later
Trying to sub work after the fact – especially on a tight-margin job – can kill your profit. Plan ahead.
6. Match Contracts and Watch for Change Orders
Make sure your subcontractor contract mirrors the terms you agreed to with the GC or owner. That way everyone’s aligned if a change order comes up – which it will.
Projects move fast. Engineers miss stuff. Clients change their minds. You need to know whether your sub has the capacity to absorb that extra work – or whether you’ll be scrambling to fill the gap.
Subcontractors are more than hired help – they’re your partners on the job. The better you vet them, the smoother your projects will go, and the better your reputation will be with the people writing the checks.
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