5 Essential Tips for Prequalifying Subcontractors

Being a General Contractor comes with a plethora of challenges with one of the largest being finding the right subcontractors. the lowest bid is seldom the best so here are risk mitigation ideas.

5 Essential Tips for Prequalifying Subcontractors :

1. Review their credentials and experience. This includes checking their license status, insurance coverage, and references. You should also ask about their experience with projects similar to yours in terms of size, scope, and complexity.
2. Check their safety record. A good subcontractor will have a strong safety record. You can check this by asking for their OSHA 300 log and their experience modification rate (EMR).
3. Verify their financial stability. You want to make sure that the subcontractor has the financial resources to complete the project on time and on budget. You can do this by asking for their financial statements and credit report and/or requiring a performance and payment bond.
4. Interview the subcontractor. This is a good opportunity to learn more about their company culture, their approach to customer service, and their communication style. You should also ask them about their specific plans for your project.
5. Get multiple quotes. This will help you to compare prices and services from different subcontractors.

See our blog post on the benefits and pitfalls of bonding a subcontractor.

Here are some additional tips for pre-qualifying construction subcontractors:

• Ask for references from previous clients. This is a great way to get firsthand feedback on the subcontractor’s performance.
• Check online reviews. There are a number of websites where you can read reviews of construction subcontractors.
• Visit the subcontractor’s office. This will give you a chance to see their facilities and meet their team.
• Trust your gut. If you have a bad feeling about a subcontractor, it’s probably best to move on.

By following these 5 Essential Tips for Prequalifying Subcontractors, you can pre-qualify construction subcontractors and increase your chances of success on your next project.

Visit some of our other construction related blogs.

• Sample Performance Bond Underwriting Guidelines
• What is Profit Fade?
• What are Underbillings?
• What are Overbillings?
• Levels of CPA Financial Statements for Construction Contractors
• Percentage of Completion method of accounting 
• Performance and Payment Bond General Information Page
• Performance Bond Underwriting Requirements
• Increase Surety Bond Credit
• The Problem with Actual Damages Clauses in Construction Contracts
• Protect Yourself when Entering into a Construction Contract with a Bad Owner
• Benefits of Building Information Modeling (BIM)

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