Subcontractor Red Flags to Watch for in Your Contracting Business

When good subcontractors are hard to find (and even harder to get), it’s important to know what to look for. Sometimes, you get a bad feeling about working with someone, and you should pay attention to that instinct. By considering these red flags, you’ll know what to avoid.

Doesn’t Communicate Well
When you read complaints from clients about contractors, a lack of communication usually runs high on the list. And as a business owner, your ability to communicate with a subcontractor is just as important. Communication is the first possible barrier, and you may not be able to get the work done without it. Some subcontractors are so busy that they have trouble finding the time to return phone calls, texts or emails. A slight delay may not be a big problem. On the other hand, if you can’t establish contact with this person in the first place, it’s a good sign to move on.

Isn’t Organized
Everyone runs their own business in a unique way, but all businesses have to maintain some level of organization. If you have ever scrambled to find the right documentation so that you can file your personal taxes, you know that it can happen to anyone. But in business, disorganization can cost you money. A subcontractor who loses documentation may be more likely to skip over or forget to complete important tasks. And without those records, it could be your word against theirs of any agreements you have made. It’s not always easy to tell that someone is disorganized, though. Look for a vague response to a precise question, or a lack of care in handling documentation relating to contracts.

Hesitates to Make a Commitment
With construction’s ongoing labor shortage, you need to know that the subcontractor you have hired will show up to do the work. Many people hesitate to make a firm commitment because they think that they might be able to find a better alternative use of their time. They may try to push off signing a contract or agreeing to a firm schedule. That kind of thing is annoying when you’re trying to plan a family event, but it’s disastrous for your business. You need a subcontractor who is willing to make a commitment to the project and your business. Otherwise, you’ll have a harder time making a firm commitment to the client, and you may lose time or money as a result.

Doesn’t Want to Put Things in Writing
Similar to the subcontractor who doesn’t want to make a commitment, a professional who doesn’t feel like putting things in writing should be immediately suspected. People often try to rely on a verbal conversation because they know that their estimate won’t hold up to scrutiny. They may ask you to accept a handshake in lieu of a contract because they lack some necessary qualification that would make it legal for them to do the work. In this situation, it will be your word against theirs that you have any agreement at all. Anyone who isn’t willing to complete formal paperwork for the project may be planning to shortchange you in some way.

Seems Too Connected to the Client
At times, you may feel like the construction industry is a very small world. In certain regions, you’ll notice that practically everyone seems to know each other. While awareness of the field is a good thing, strange connections that don’t make sense may require more research on your part. For example, it’s not uncommon for property owners to recommend a specific contractor to do certain work for a project. You just have to be sure that the person they want you to hire is properly qualified to do the work, and not just getting the contract as part of an unstated arrangement with the client.

Avoiding red flags is an important way to help your contracting business to succeed. The right foundation is another. For classes and tools to help you get ready for the contractor licensing exam, visit CSLS today!