Nail the Scope & Contract Terms Up Front
Most conflicts trace back to unclear expectations. Lock in a concise scope and the rules of engagement before work starts.
- Scope, inclusions/exclusions and deliverables tied to drawings/specs
- Schedule & milestones that align with the master plan
- Payment terms (progress/AIA, retainage, documentation required)
- Change-order language: written approval before extra work
Prequalification & Compliance Checklist
Onboard subs with the same packet every time so compliance doesn’t slip through the cracks.
- W-9, licenses, COI/workers’ comp, safety program/OSHA history
- References and relevant project experience
- Signed subcontract and lien waiver templates
- Contact tree for field and office escalation
Scheduling & Coordination that Sticks
Short, regular touchpoints beat long, infrequent meetings.
- 2–3 week lookahead with material lead times
- Daily huddles for access, inspections, and dependencies
- Clear RFI/submittal routing and turnaround expectations
- Document site constraints (laydown, parking, delivery windows)
Field Documentation & Communication
If it isn’t documented, it didn’t happen—especially for changes.
- Daily reports and photos tied to areas/trade
- Extra Work Authorizations with on-the-spot e-signatures
- Written change orders before executing extra scope
- Attach tickets/invoices for stored materials or T&M backup
Change-Order Discipline
Scope creep kills margins. Keep COs visible and tied to billing.
- Price and approve before work starts (use field EWAs to capture urgency)
- Reference CO numbers on G703 Continuation Sheet
- Apply retainage consistently on CO lines
- Update the SOV and schedule immediately after approval
Verify Progress Before Approving Pay Apps
Trust—but verify. Align sub pay applications to your SOV and documentation standards.
- Confirm percent complete by SOV line with photos/quantity logs
- Require proof for stored materials (photos, invoices, location)
- Track retainage and lien waivers by billing period
- Reconcile COs and prior-to-date billing to prevent overpayment
How Software Streamlines Sub Management
Centralize scope, changes, progress, and billing to keep teams aligned and audits simple.
- Create a Schedule of Values (SOV) and align subs to the same lines in Contract Projects
- Generate and track AIA/progress billing packages with attachments
- Capture field approvals and EWAs via the Werx Field App
- Sync approved invoices to the GL with QuickBooks integration
FAQs About Managing Subcontractors
What documents should I collect before a subcontractor starts?
W-9, COI and workers’ comp, licenses, signed subcontract, safety program, and lien waiver templates. Add contacts for field and office escalation.
How should I handle subcontractor change orders?
Use a field Extra Work Authorization for urgent requests, then convert to a written CO with price, scope, and schedule impact. Reference the CO on billing (G703).
What’s the best way to review a sub’s pay application?
Verify percent complete by SOV line with photos/quantity logs, check stored-materials proof, confirm retainage math, and reconcile prior-to-date totals and COs.
TL;DR Recap
- Standardize prequalification, scope, and change-order rules
- Use lookaheads, daily huddles, and photo-backed progress checks
- Approve pay apps only with documentation and lien waivers
- Werx centralizes SOVs, EWAs/COs, and billing with QuickBooks sync
