Sub contractors are companies that specialize in specific areas. They are usually hired by a contractor to complete a particular project.

They are skilled professionals and can help you complete a particular aspect of the construction. However, there are some important things you need to consider before hiring a sub contractor.

Experience

Most larger contractors use subcontractors for a variety of reasons, from time and money savings to the ability to keep overheads down. Using the services of a competent subcontractor can free up your staff to focus on what they do best and in the process, you get a quality product that will stand up to the test of time. It is also a good idea to consider your employees’ health as they work long, hard days and nights. By choosing a smart subcontractor you can ensure that your employees are getting the care and attention they deserve while allowing them to maintain their work-life balance.

The best sub contractor is a dependable and dedicated professional who delivers top-notch quality results on every job. Using the services of one or more of these specialists will be your construction company’s best bet for a successful and lucrative future.

Licenses

Many states have licensing requirements for sub contractors, and some even require them to carry an insurance policy. While this can be an extra cost, it’s important to have the proper protection in the event of a lawsuit against you for a mistake or oversight.

In addition to a general contractor’s license, some states require specialized licenses for certain trades like plumbing or electrical. Some also require public works or construction management licenses.

In Alaska, working without a license where required can be punishable by fines at the local level. For instance, roofing contractors operating unlicensed could face a civil fine of up to $10,000. However, this is a much smaller penalty than mechanics liens in Alaska, which do not explicitly require a license.

Insurance

Subcontractors typically have their own insurance policies, but it’s important for them to know what coverage they need. This helps protect the business in the event of a lawsuit or other damage.

General liability insurance is one of the most common types of contractor insurance. It provides coverage for property damage, personal injury, and advertising injury from third-party claims.

Errors and omissions (E&O) insurance is another type of business insurance that will step in if you make mistakes or oversights during the course of your work.

A Certificate of Insurance is a paper or digital document that proves your subcontractor has insurance coverage. These documents are often required by insurance carriers.

Payment schedules

A payment schedule, also known as a draw schedule, establishes a timeline for paying your contractors. These schedules are important for both homeowners and contractors.

These schedules break up large payments into smaller amounts and keep construction projects on track. They can also help both parties stay within their budgets and reduce stress.

Another benefit of construction payment schedules is that they force both clients and contractors to discuss billings. This can help avoid any delays in progress that could stall a project.

A subcontractor’s payment schedule should include a section that records all deductions and hold-backs. This will ensure complete transactional transparency.

Communication

Communication is a key component of any construction project. It can help improve teamwork and prevent misunderstandings that can lead to delays or issues down the road.

Ideally, sub contractors should communicate with their GCs on a consistent basis throughout the entire process of building a project. This can be done via email or in person.

But even when that’s not possible, ensuring that there is clear communication between the parties involved in the project is vital to its success.

Effective sub-to-sub communication is important because it helps keep everyone on the same page and working toward the same goals. It also makes sure that the right equipment and manpower is available when it’s needed.