The General Contractor’s Guide to Hiring Subcontractors

Build a hiring process that helps you consistently find subcontractors who are the perfect fit for the job.

Relying on subcontractors has its perks – more flexibility, lower staffing costs, greater expertise – but it also has its share of risks. You have a site to run, a project scope to meet, standards to uphold, and your own company’s reputation to protect.

For general contractors, subcontractors are a vital component of your business plan. You need them, but you also need them to do their job right. 

After all, you’re the one dealing with the customer. If things go sideways, you’re the one that’ll have to make it right. You need a roster of subcontractors who are dependable, trustworthy and skilled.

To that end, we’ve created this quick guide that covers all the basics you need for an effective subcontractor hiring process.

Subcontractor hiring steps:

1. Clarify the scope
2. Write the job posting
3. Search for potential subcontractors
4. Assess the candidates
5. Conduct interviews
6. Check references
7. Sign a contract
8. Set the standards
9. Instill accountability
10. Master tip: Build an unbeatable culture

Clarify the scope

The very first step in the process is figuring out what work needs to be done on the project. There will likely be areas of expertise you’ll need, such as electricians, plumbers, or painters.

This usually gets covered as part of the project planning (or should, at any rate!). Suffice to say, it’s important to have a clear idea of the project requirements. Specifically:

• Who you’ll need - which trades or types of subcontractors must be hired
• What you’ll need - which tasks or activities they’ll perform

Knowing the scope of work for each subcontractor will be essential information for the next step when you’ll create a job posting or invitation to bid (ITB).

Write the job posting

Once you know who you’re looking for, grab their attention with an enticing job posting or invitation to bid (ITB).

Most postings aren’t particularly well-written, so this is an easy way to make your company’s projects stand out. Show that you’re organized and on top of things right from the beginning and your offer will attract the most talented subcontractors.

Make the submission process consistent and easy to navigate. Consider using a bid form that all applicants are required to complete. Highlight any must-haves for the job, such as:

• Licenses, insurance or safety requirements
• Types of equipment or quality of tools you expect them to use
• Anticipated crew size

Don’t shy away from stating specific requirements out of fear it’ll limit the number of submissions. It’s better to have a handful of quality applications than a whole stack of useless ones. Finally, don’t forget to include the submission deadline!

Search for potential subcontractors

After you’ve written the job description, it’s time to start the subcontractor hunt. There are a number of places to look and you’ll probably want to explore as many of these avenues as possible. The wider you spread the word, the higher the chance you’ll find the right sub.

Where to look:

🔎Job search sites – Post your write-up on platforms that subs tend to frequent.

🔎Social media – Announce that you’ve posted the job and include a link to it.

🔎Online – Do a quick search to see who’s in your area.

🔎Your network – Ask around about subs who could be appropriate. 

🔎Emerging companies – Explore motivated owners working to get established.

Assess the candidates

Now it’s time to dig in and do the serious research. Go through the applications to determine who are the best potential subcontractors for the project.

Consider questions such as:

• Did they follow the submission process properly? (Assuming you made it straightforward, this could be an immediate red flag.)
• Do they have the right technical qualifications or certifications?
• Do they have the correct licenses and valid insurance in place?
• What’s their record of safety? Do they have previous inspection reports with OSHA violations?
• Have they done many similar projects in the past?

Conduct interviews

After you’ve made your short list, set up meetings with the prospective subcontractors. This is an opportunity to get answers to any unknowns you encountered in the previous step, as well as better understand their plan for tackling any anticipated difficulties or obstacles with the project.

It’s also a chance to answer any questions they have about the job to ensure they’re clear about what’s required. You’ll want to get a sense of their ability to work independently, without hounding you about minor things they should be managing on their own.

To help you prepare for these meetings and keep the discussion on track, we’ve created this Interview Guide Quick Tool.

Check references

Once you’ve narrowed down the list further, complete some due diligence, just to ensure everything is as it should be.

Ask the potential subcontractor for references, and then actually follow-up with them. Make the calls, speak to their previous or current clients and find out whether:

• Their work quality met expectations
• They remained within budget
• They stuck to the schedule

Also, confirm their insurance is indeed in place, don’t just take their word for it. Get them to send you certificates of liability. Don’t be overly casual about this because if their negligence causes any accidents or incidents on site, the liability could shift to you.

Sign a contract

As the general contractor, it’s your responsibility to ensure all the requirements of the project are met, which is why it’s vitally important to have a written agreement in place with your selected subcontractor.

In the commercial sphere, this is typically a master trade agreement and may include additional work orders. 

Whatever form it takes, there are a number of terms that should be included in the contract and the specifics around them may involve a little negotiation. The key thing is to ensure all the main conditions are covered and it’s definitely worthwhile to have it drafted by an attorney.

The below checklist covers the key elements that should be covered in the contract. Good contractors understand the need for this agreement. Anyone who balks about this step isn’t a good fit for the job.

Subcontractor Agreement Checklist 

✅ Tasks and responsibilities, including clean-up expectations

✅ Detailed schedule

✅ Payments

✅ License and insurance guarantees

✅ Indemnity (the subcontractor takes full responsibility for any issues they cause)

✅ Change orders

✅ Termination

If you could use a starting point, we have an Employment Agreement Quick Tool that can be adapted for a subcontractor.

Set the standards

As you prepare to start the work, provide the subcontractor with the standards of procedures (SOPs) they’re expected to comply with. Given this is your project, you need everyone on board to uphold your delivery quality.

If you don’t have any SOPs, now’s the time to create some! To learn more, take a look at this SOP web class and download this resource.

SOPs provide easy-to-follow directions on how to complete tasks and can help implement systems and standards that teams ACTUALLY FOLLOW.

Instill accountability

Finally, as the work progresses, you’ll want to have an accountability system in place to ensure the subcontractor follows through on the expectations set out in the agreement.

We’ve created the Goal Setting & Review (GSR) system for just this purpose. It centers around regular meetings with your subcontractor to report on the progress of last week’s actions and discuss the goals for the upcoming week.

Accountability has proven to be a very powerful tool for keeping projects on track, and provides motivation because people understand the rewards for doing their best work.

Master Tip: Build an unbeatable culture

This step should be carried out all the time, not just when you’re in a hiring phase.

How do you do it? There’s not just one golden ticket, it’s more like an amalgamation of small and constant actions.

Live your company’s values. Celebrate your team. Give great swag. Use good tech. Have a purpose that betters the world outside your projects.

If you’re a brand that makes people proud to wear your logo, you won’t have to look far to find amazing subcontractors. They’ll be lined up outside your door.

Ready to sharpen up your contractor hiring process?

Learn more.