Subcontractor Management for General Contractors: Building Relationships That Build Your Business

“My subs never show up when they say they will.”

I hear this from general contractors constantly. And they’re usually right—their subs don’t show up reliably.

But here’s what I’ve noticed: the same subs who ghost one GC show up early for another. The same electrician who does sloppy work on one project delivers perfection on another.

The difference isn’t the sub. It’s the relationship—and the systems.

After consulting with residential GCs across the country, I’ve learned that subcontractor management is the hidden skill that separates profitable operations from constant chaos.

The Real Cost of Sub Problems

Let’s quantify what bad sub relationships actually cost:

No-shows and delays:

Average re-mobilization cost: $300-800 per trade
Schedule delay impact: $200-500/day in extended overhead
Client frustration: Priceless (and devastating)

Quality issues:

Punch list rework: 2-5% of project value
Callbacks after completion: $500-2,000 per occurrence
Reputation damage: Difficult to quantify, impossible to ignore

The compounding effect:

A typical $250,000 residential project with sub problems:

3 scheduling delays: $1,500
2 quality rework items: $3,000
1 sub conflict requiring mediation: $2,000
Extended timeline (client frustration): Lose next referral ($15,000 opportunity cost)

Total: $21,500 in direct and indirect costs.

Now multiply that by your annual project count.

The Subcontractor Relationship Hierarchy

Not all sub relationships are created equal. Here’s how I categorize them:

Tier 1: Partnership Subs

You call them first, every time
They prioritize your work
They protect your reputation like their own
You have each other’s backs when things go wrong

You need: 1-2 in each major trade

Tier 2: Reliable Subs

Consistent quality and availability
Professional communication
Competitive pricing
Good backup when Tier 1 is booked

You need: 2-3 in each major trade

Tier 3: Emergency Subs

Acceptable quality
Available when others aren’t
May cost premium
Not your first choice, but they’ll do

You need: 1-2 in each major trade

Tier 4: No-Go Subs

Had problems you won’t repeat
Industry reputation issues
Insurance or licensing concerns
Documented reason for exclusion

You need: A list, so you don’t accidentally use them again

Building Your A-Team: Acquisition Strategy

Finding great subs doesn’t happen by accident. Here’s a systematic approach:

Source 1: Peer Referrals

The best subs often come from other GCs—specifically, GCs who do similar work and have good reputations themselves.

How to approach: “Hey [name], I’m looking for a reliable framing crew for custom residential work. Who do you use when your regular guys are booked?”

Why it works: Other GCs have already vetted quality and reliability. You’re getting months of trial and error for free.

Source 2: Supply House Intelligence

The people at your local supply houses see which contractors buy quality materials, pay their bills, and operate professionally.

How to approach: “Who are the top three electricians you see buying materials for residential custom work?”

Why it works: Supply houses have visibility into contractor quality that you don’t.

Source 3: Job Site Observation

When you see quality work on other projects, find out who did it.

How to approach: Notice impressive work → Ask the homeowner or GC who did it → Contact the sub directly

Why it works: You’re basing your selection on demonstrated quality, not promises.

Source 4: Structured Interviews

When vetting a new sub, go beyond “send me your price.”

Questions to ask:

How long have you been in business?
What’s your typical crew size for residential work?
Who are your other regular GCs? (Call them)
What’s your process when you hit a problem on site?
How do you handle change orders?
What’s your typical response time for estimates?
Can I visit a current job site?

The Trial Project

Before giving a new sub major work, start with something small:

A single room, not the whole house
A service call, not an installation
A simple scope, not a complex one

Evaluate: quality, communication, schedule adherence, professionalism.

If they pass, gradually increase scope. If they fail, you’ve learned cheaply.

The Sub Management System

Once you have your team, keep them performing with consistent systems.

The Scope Document

Every sub, every project, gets a written scope that includes:

Work description:

What they’re doing
What they’re not doing
Reference to plans and specs

Logistics:

Site address and access
Working hours allowed
Parking and staging
Site rules (smoking, music, bathroom use)

Materials:

What they’re providing
What you’re providing
How materials will be staged

Schedule:

Start date
Duration expected
Milestone dates
What needs to happen before they can start
What’s happening after them

Money:

Contract amount
Payment terms
Change order process
Back-charge policy

Quality:

Standards expected
Inspection requirements
Punch list process
Warranty terms

The Pre-Start Checklist

Before any sub starts work:

☐ Written scope signed ☐ Insurance certificate current ☐ Site is ready for their work ☐ Materials they need are staged ☐ They’ve walked the site (for new projects) ☐ Schedule confirmed within 24 hours ☐ Contact info exchanged (cell phones) ☐ Emergency procedures reviewed

The Progress Monitoring

During their work:

Daily:

Verify they’re on site
Spot-check quality
Address issues same-day

Milestone points:

Formal inspection before proceeding
Documentation (photos)
Sign-off on completed phase

At completion:

Walk-through together
Punch list created immediately
Punch list completed before final payment

The Post-Project Review

After every project, rate each sub:

Schedule adherence: 1-5 Quality of work: 1-5 Communication: 1-5 Problem resolution: 1-5 Would use again: Y/N/Maybe

Track this over time. Patterns emerge.

Getting Subs to Prioritize Your Work

This is the secret weapon of successful GCs. How do you get to the top of a sub’s priority list?

Pay Fast

The number one complaint subs have about GCs: slow payment.

The standard: Net 30 after invoice What great GCs do: Net 7-10 after approved invoice

When you pay fast, subs remember. When you’re slow, they take the other GC’s call first.

Communicate Clearly

Subs hate surprises as much as you do.

Give them:

Accurate start dates (not “sometime next week”)
Advance notice of schedule changes
Clear scope (not “figure it out when you get there”)
Responsive answers to questions

Have Clean Sites

A site that’s not ready wastes their time. Wasted time is money.

Before they arrive:

Previous trade is complete
Site is swept and accessible
Materials are staged
Utility access is confirmed

Solve Problems, Don’t Create Them

When issues arise:

Own your part
Don’t blame-shift
Work collaboratively on solutions
Pay for legitimate extras without fighting

Subs talk. Your reputation spreads.

Provide Consistent Volume

Subs price based on relationship, not just project.

One job per year: You get the stranger price One job per month: You get the preferred customer price Weekly work: You get the partner price

Volume gets you priority and pricing power.

Treat Them as Partners, Not Vendors

The best sub relationships feel like partnerships:

You win together
You solve problems together
You protect each other’s reputation
You communicate honestly

The transactional approach—“you’re just another vendor”—gets you transactional results.

Handling Sub Problems

Despite your best systems, problems happen. Here’s how to handle them:

The No-Show

Immediate response:

Call within 15 minutes of expected arrival
Get commitment for new arrival time
Document the impact
Adjust downstream schedule

If it repeats:

Direct conversation about expectations
Clear warning that it affects future work
Third strike: Move to Tier 3 or remove

The Quality Issue

In-progress (before they leave):

Identify the issue
Show them the standard
Have them correct it now
Document and photograph

After completion:

Document with photos
Present professionally (not accusingly)
Give reasonable timeframe for correction
If they dispute, involve third party if needed

Chronic issues:

Either retraining opportunity or relationship ending
Don’t let quality slide for relationship comfort

The Schedule Slip

When you see it coming:

Get to the root cause
Determine if it’s recoverable
Adjust downstream trades
Communicate impact to client
Document for project record

Protect yourself:

Build float into schedules
Have Tier 2 subs ready to mobilize
Contract terms that address delays

The Money Dispute

Prevention:

Clear scope documents
Written change order process
Progress documentation
Regular communication

When it happens:

Listen to their perspective
Reference the documentation
Find fair middle ground when possible
Know when to involve attorneys

Philosophy: It’s often cheaper to settle than fight, but don’t let yourself be pushed around.

The Sub Database

Track your sub information systematically:

For each sub:

Company name and contact
Trade and specialties
Insurance info (with expiration dates)
License info (with expiration dates)
Pricing history
Performance ratings by project
Notes on working style

Tools:

Spreadsheet (minimum)
CRM system (better)
Construction software with vendor management (best)

Regular maintenance:

Quarterly: Verify insurance and licensing
Annually: Review performance and adjust tiers
Ongoing: Update after every project

When to Fire a Sub

Some relationships need to end. Signs it’s time:

Quality:

Multiple callbacks
Failing inspections
Customer complaints
Work that doesn’t meet standards

Reliability:

Pattern of no-shows
Chronic schedule slippage
Unreturned calls
Inconsistent crew quality

Professionalism:

Customer-facing behavior issues
Site cleanliness problems
Conflict with other trades
Insurance or licensing lapses

Business:

Unreasonable price increases
Payment disputes on legitimate items
Badmouthing you to others

How to end it:

Direct and professional
Finish current committed work
Don’t leave angry—the industry is small
Document your reason for future reference

Building Long-Term Relationships

The goal isn’t just good subs—it’s partnerships that grow with your business.

Annual relationship maintenance:

Holiday gift (thoughtful, not expensive)
Year-end thank you
Volume and revenue discussion
Planning for coming year

Invest in their growth:

Share feedback constructively
Connect them with training opportunities
Refer them to others (with conditions)
Help them build their business

Weather the storms together:

Support during slow times (if you can)
Flexibility during their emergencies
Understanding when they have crew issues

The subs who’ve been with successful GCs for 10+ years? Those relationships were built over time with intentional investment.

The Bottom Line

Your subcontractors are your production capacity. No subs, no revenue. Bad subs, no profit. Good subs, sustainable growth.

The GCs who build real businesses—who scale beyond themselves, who build wealth, who actually enjoy their work—they all have exceptional sub relationships. Not luck. Strategy.

Build your network intentionally. Maintain it systematically. Invest in it consistently.

Your subs will make you successful, or they’ll make you crazy. The choice is largely yours.

Need help systematizing your subcontractor relationships? Book a free 20-minute strategy call to discuss your specific situation.

Related Reading:

Subcontractor Management for General Contractors: Building Relationships That Build Your Business

The Real Cost of Sub Problems