Working with Subcontractors

A contractor working with subcontractors shakes hands with a collaborator at a jobsite piled high with lumber and pipes. Both workers wear hard hats and safety vests.

As a contractor, you care about delivering a quality product to your clients. It’s important to you that your team does things right and on time. But what about the members of your team who aren’t your employees? How do you select the right subcontractors for each job and manage them effectively as a contractor? Here are some tips for working with subcontractors.

Selecting and Hiring Subcontractors

Subcontractors are an essential partner to all contractors in the home improvement business. Your team is skilled and efficient in the services you provide. When the time comes in each project for a focused skill that your team doesn’t specialize in, subcontractors step in to help you complete the job with excellence. When you are working with subcontractors, it is important to make sure the quality of their work matches your own high standards as a contractor. 

First and foremost, ensure that your subcontractor is operating within your area’s laws. Some states require licenses for subcontractors. Committing to only hiring licensed subcontractors protects you from liability in case of future legal issues concerning the subcontractor. You may also want to request copies of proof of insurance. Moreover, ask the subcontractor to fill out any necessary tax forms required by your state.

Equally, review the subcontractor’s past safety records. Next, make sure your subcontractor candidate has a large enough team to compliment the scope of your project. A reliable subcontractor with a team that is too small for the size of your project will still inhibit project flow.

Furthermore, request a portfolio of a subcontractor’s work. Review their past work to verify they operate at the level you expect your team to deliver. You might find that although they produce high quality work, their style or methods conflict with yours in a way that will hinder the final product. If possible, try to visit one of the subcontractor’s active project sites to observe their way of working.

Managing and Working with Subcontractors

Straightaway, work to build a robust relationship with each subcontractor you hire. If you work well together, your collaboration may last for years. Successfully working with subcontractors depends in large part on the quality and frequency of your mutual communication. Before you begin working with a subcontractor, agree on a consistent communication schedule. Set up daily, weekly, and milestone-specific communication expectations. 

Similarly, it is also essential to establish mutual understanding of pay schedules and requirements. These specifications should be included in your signed subcontractor contract before you begin work together. The Federal Trade Commission elaborates, “Don’t pay the full amount for the project up front. Some states actually limit the amount of money a contractor can ask for as a down payment. Contact your state or local consumer agency to find out the law in your area. And never make the final payment until the work is done and you’re satisfied with it.” 

It’s easy to get paid by your clients and pay your subcontractors on time with financing options from HFS Financial. HFS Financial is your partner for the best contractor financing for your home improvement clients. Our 60-second application makes securing financing for your projects simple for your clients and leads. “You Dream It, We Finance It.”

Working with Subcontractors

HFS Financial solely operates in the home improvement lending space which means we can confidently say that we are THE HOME IMPROVEMENT LOAN EXPERTS. When you apply at HFS Financial you will get a customized loan experience tailored to ensuring you get the best personal loan to meet your home improvement loan needs.