Subcontractor Checklist

8 essential ways to get the most out of your subcontractors

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Subcontractors often play a key role in helping fence companies reach more customers and get more done—especially during busy seasons. However, making sure your subcontractors are safe, reputable, and carry the right insurance is essential. If you and your subcontractors don’t have the right insurance coverage in place, your business and your bottom line could be at risk.
 
Here’s how to make sure you and your subcontractors are set up to succeed.
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1. Know Your Subs

Use reputable subcontractors.

Make sure they’re adequately insured with the correct coverage and limits.

You can find limits and confirmation of coverage information on the certificate of insurance.

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2. Review the Policy

Make sure the subcontractor gives you a copy of their certificate of insurance.

Keep this document on file with your contract and other work agreements.

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3. Check References

Ask for referrals.

Request to see examples of their work.

Check with your local Better Business Bureau.

Verify if they have any complaints against them.

If your subcontractor has employees:

  • Make sure they’re trained and legally eligible to work in your state
  • Ensure they’re covered under workers’ compensation and hold all applicable licenses.
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4. Check Business Licenses and Insurance

Business
Licenses

Make sure all business licenses are up to date with your state, city, or town.

Insurance
Certificates

Secure copies of all insurance certificates, especially workers’ compensation coverage.

Additional
Insureds

Confirm that you’re named as an additional insured, and verify that their policy limits match yours.
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5. Examine Safety Procedures

Ensure that applicable safety practices are in place.

Ask the right questions.

Find out whether the subcontractor has an established safety plan and if they can provide documentation of their incident rate.

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6. Make Realistic Project Goals

Time
Needed

Determine how much time is needed to complete tasks.

People
Needed

Decide how many people are needed for the project.

Expectations &
Qualifications

Discuss expectations and qualifications before projects are started.
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7. Verify Financial Stability

Check if the subcontractor has a line of credit.

Seek other independent financial reports as necessary.

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8. Create a Written Contract

Include terms of agreement in contract.

Payment terms and conditions should be in the contract.

Make sure all necessary parties sign the contract.

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Document Everything

Keep written documentation, agreements, and other important information on file. This should include lists of materials used, employees who did the work, costs and payroll information, and certificates of insurance. For every subcontractor issued a 1099, the company must have a valid certificate of insurance to accompany it. If you cannot provide this documentation for every subcontractor, you will be charged by your insurance company for what it would have cost the carrier to cover the injuries that might have occurred.
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Access the 8 Essential Ways to Get the Most Out of Your Subcontractors