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How to Find Good Subcontractors for the Work You Don’t Self-Perform

Dec 19, 2024 | Blog

Whether you’re just starting your construction business or looking to grow, you’ll quickly find there are jobs you can’t handle alone. Maybe it’s concrete work when you specialize in grading. Maybe it’s roofing or HVAC. The reality is, you’re not going to self-perform every part of every project – and that’s where good subcontractors come into play. Finding the right ones, though? That’s where a little strategy goes a long way.

Here’s what you need to know.

Start with What You Know

Before you even start searching for subs, take a good look at your project. What scope of work do you need subcontractors for? Are there particular trades you’ll rely on consistently (like concrete or electrical)? Once you know what gaps you need to fill, you can start lining up qualified subs.

A solid piece of advice: don’t depend on just one subcontractor for any part of the work. Good subs can get tied up in a hot market, so having a short list of 2-4 reliable options gives you some flexibility. If one sub’s busy, you’ve got backups who can step in.

The Hot Market vs. Slow Market Challenge

The state of the market will impact how you find and hire subcontractors:

Hot Market: When business is booming, good subcontractors are BUSY. Quality crews are often booked months in advance, and if you don’t already have a solid relationship, it’s tough to get their attention.

This is why building relationships early is so important. Subs remember general contractors who treat them well – things like paying on time, providing clear information, and managing schedules efficiently. Those relationships can earn you “favoritism” when the market’s hot. If they have to choose between jobs, they’ll work with the GC they trust.

Slow Market: In a slow market, subs are easier to find, but you still need to be careful. You want to hire subcontractors who bring quality and dependability, not just cheap prices. Cutting corners with subs in a down market might save you money upfront, but it can ruin your reputation if their work doesn’t meet your standards.

What to Look for in a Subcontractor

Finding a good subcontractor isn’t just about skill – it’s about reliability. You’re trusting them with your reputation on the job, so you want to look for:

  • Dependability – Will they show up on time and stick to the schedule?
  • Quality Work – Do they have a proven track record of solid results?
  • Clear Communication – Are they responsive and easy to work with?
  • Proper Licensing and Insurance – Never skip this step; it’s a liability risk.

Don’t just hire the first person who gives you a cheap bid. Check references, ask for examples of past work, and make sure they’re up to the task.

When to Bring in New Subs

So, what happens when your business is growing, and your usual subcontractors can’t keep up? Is it time to roll the dice on a new sub?

It might be. But you need to do your homework. Even if you’re taking a chance on someone new, make sure you know something about them first. Vet their work, talk to other GCs they’ve worked with, and give them clear expectations upfront.

The key is to test out new subs on smaller or less critical parts of the job first. Don’t hand a huge project to someone you’ve never worked with before. Let them prove themselves.

Be Careful About Over-Subbing

A word of caution: if you’re bidding on a job and subbing out too much, you could price yourself out of the competition. Especially in a slow market, there may be bigger companies that can self-perform the same work you’re subbing out. They’ll be able to offer a lower price because they’re not marking up subcontractor costs.

The takeaway? Use subs wisely. Don’t over-rely on them if it means inflating your bid and losing work. If there’s a part of the project you can self-perform and remain profitable, that might be the smarter move.

Relationships Matter

At the end of the day, subcontracting is all about relationships. Treat your subs well, and they’ll stick with you. Pay them on time, communicate clearly, and make it easy for them to do their job. A subcontractor who feels valued will work harder to make you look good.

And remember, it’s a two-way street. When you have a good sub, scratch their back too. If they need work and you’ve got a project, bring them in. If they do great work, refer them to other GCs. That kind of mutual respect will pay off when the market gets tough.

The Bottom Line

Finding good subcontractors isn’t about luck – it’s about preparation, vetting, and building strong relationships. Line up a handful of reliable subs for each trade you don’t self-perform, treat them well, and keep the communication clear.

In the long run, those partnerships will help you take on bigger projects, grow your business, and keep your reputation strong – no matter what the market looks like.

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