The Importance of Prequalifying Subcontractors
For general contractors, the success of a project depends on various factors. One of those factors relates to the people who contribute to your project. Building strong, lasting relationships will depend on the type of people you partner with. One of the foundations of project success is to have a solid system in place to evaluate subcontractors. Prequalifying subcontractors is the key to managing effectively and avoiding major risks.
General contractors will generally require subcontractors to complete a pre-qualification application to determine a subcontractor’s suitability for partnership on construction projects. A subcontractors integrity and character should be examined. This means evaluating their history for complying with laws such as standards set forth by OSHA. A subcontractor must also show skill and expertise in their area of work. Another area to evaluate a subcontractor in is their ability to manage projects. The general contractor will assess a subcontractor by obtaining the following types of information:
- Reference checks
- Verification of insurance and agreements
- Current and completed projects
- Licensing information
- Review of financial statements
Benefits for Subcontractors
Naturally, prequalifying subcontractors is beneficial to the general contractor, but there are advantages for subcontractors as well. One advantage is being recognized as one who is qualified to work on a contract when a general contractor bids on projects. Another advantage is the confidence you’ll have knowing you are working with other qualified subcontractors. Another benefit may be increased financial incentives for prequalifying. Finally, you can rest assured knowing projects are backed financially. As Tampa construction attorneys, we believe the ultimate benefit of prequalifying subcontractors is steering clear of costly disputes.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.