{"id":128968,"date":"2020-09-06T10:00:30","date_gmt":"2020-09-06T16:00:30","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=128968"},"modified":"2021-03-16T17:02:29","modified_gmt":"2021-03-16T23:02:29","slug":"manage-successful-subcontractor-relationships","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/manage-successful-subcontractor-relationships","title":{"rendered":"6 Ways to Manage Successful Subcontractor Relationships"},"content":{"rendered":"

Among the most valuable assets on a job site are your subcontractors<\/a>. They are important resources with specialized skills and experience you use to complete projects. They help you stay profitable, and you provide them much-needed jobs.<\/p>\n

The Subcontractor Relationship<\/h2>\n

Managing your subcontractors can sometimes be a challenge, though, particularly if you are not well organized. You’ll need to do due diligence<\/a> before hiring one, and continue to stay diligent when working with your subcontractor while completing a project.<\/p>\n

To help you stay on time, on budget, and able to deliver with high quality, here are six ways to do just that. (Here are various documents<\/a> that will help you with this process.)<\/p>\n

1. Clarity Is the Starting Point<\/h3>\n

Clarity is crucial for success. Make sure everyone knows what the expected outcome is, and you are more likely to reach that outcome. Eliminate the guessing games by providing realistic expectations and guidance that is supported with sample images when possible. A written scope of work with a clear timeline, milestones, and expected results will make working with your subcontractor simple, clear, and free of drama.<\/p>\n

Related<\/strong>: 5 Entirely Avoidable Reasons Contractors Fail (& How YOU Can Prevent Them!)<\/a><\/em><\/p>\n

2. Proposals Need to Be in Writing<\/h3>\n

\"contract-in-writing\"<\/p>\n

Protecting your business requires making sure to memorialize agreements with the use of written proposals. By outlining the agreed-upon terms, and including signature lines for you and your subcontractor, you give yourself legal protection in case things go sideways. Make sure your proposals are dated, state the cost of the work, everything that needs to be completed is outlined, and clarify which materials need to be supplied. Make sure to include the time frame for completion.<\/p>\n

3. Insurance Is Mandatory<\/h3>\n

This seems like a no-brainer, but insurance is mandatory to protect you and your hard-earned money. Every project requires a certificate of insurance. Make sure it comes directly from an agent to ensure legitimacy. Requirements may vary from state to state, but here are the minimum things that should be included:<\/p>\n