How To Hire The Right Subcontractor For Your Business?

Workers shaking hands

If you are a home service professional, you may come across projects that require giving a part of it to a subcontractor. This may be due to several reasons – you don’t have the necessary expertise, you need more hands on deck to finish in time, your client needs specific custom things, or you want to improve your employees’ productivity by letting them work on regular projects or you need a worker for a short-term period. In any of these circumstances, it may seem like a daunting task to take on a new subcontractor and go through the entire selection and execution process. However, at HomeStars as we are in the business of growing yours, we have come up with a simple guide which will help you hire the right subcontractor for your business.

How To Find Subcontractors?

As a business owner, this may be the first thing on your mind and here are some ways to find and recruit subcontractors:

  • Search online: There are many online forums and communities that connect business owners with subcontractors where you can find their profiles, rates and more. You can also look for verified pros on HomeStars with good community reviews and Star Score to connect with subcontractors whose background checks are done by HomeStars.
  • Look for referrals: If you know others in the industry who have hired subcontractors, ask about their experience and whom they would recommend.
  • Networking events and trade show: As industry leaders, attending these events will result in many people reaching out to you for work. You can also use this opportunity to get acquainted with subcontractors.
  • Go local: If you spot work happening in an area near you, take a few minutes off your schedule and ask around for any referrals.
  • Talk to other stakeholders: Suppliers and other stakeholders in the industry will also know of subcontractors who are ready to take up work.

How To Make Sure The Subcontractor Is Right For Me?

When you narrow down the subcontractors who seem right for the job, here are some things you can discuss to understand if they are the right fit for the project you have on hand:

  • Timelines: Check if they have enough time on hand to finish the project in the timelines you promised your client.
  • Equipment: If you require additional equipment, check if they have their own equipment or if they can arrange their own equipment.
  • Payment: Discuss money matters before going ahead with the partnership including rates and payment terms and methods. Get multiple quotes from different subcontractors to make sure you are getting the best rates.
  • Past work history: Check their previous work, testimonials from previous customers and timelines of the same.
  • Legal requirements: Check if they have the appropriate licenses and safety records and if they will agree to sign a legal contract.

How To Vet The Subcontractor?

Once you have finalized the subcontractor, you can use the following checklist to make sure you are hiring the right person for the job:

  • Insurance: Check for all kinds of insurance including but not limited to liability, surety, workers’ compensation, vehicle etc.
  • License: Apart from having the license (provincial) to practice their trade, also check if they have any other licenses that may be required for machine operations, vehicles etc.
  • Background check: You can also conduct background checks for criminal records, registered licenses and credit checks via third parties.
  • Contract: Draw up a contract after consulting a lawyer and ensure you put in all the aforementioned details apart from timelines, payment, taxes etc.
  • Reviews and referrals: Ask them to offer referrals of previous clients or check their online reviews to ensure they have a solid reputation.

With these guidelines, you are sure to find and recruit the perfect subcontractor for your business. Hiring a subcontractor will give you the opportunity to expand your business and services even during this labour shortage and uncertain economic conditions. In times like these, you may be hesitant to hire full-time employees and hiring subcontractors is the perfect way to take on more work and deliver on projects without making long-term decisions on expanding the workforce.

Questions? Contact your dedicated account manager, today, or call 1-800-701-9265.

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