Before you begin working with a new subcontractor, there are several compliance papers you need to collect from them. These subcontractor documents, like proof of insurance and copies of licenses, help reduce risk on construction projects.
The documents are often required by the contract with the owner, or the general contractors may be requesting them as per their subcontractor agreement. The goal of collecting them is to ensure that the work will be completed in the manner specified in the contract and to protect the general contractor and owner from potential costs or damages caused by the subcontractor.
General contractors want to ensure that employees will be around to finish the project and provide quality work, with the necessary insurance and bonds to cover any damages that might happen during the project. We’re going to guide you through what subcontractor documents are and let you know which ones you need to collect and track!
Before we get into what subcontractor documents you need to collect, let’s take a moment to understand why these compliance documents are important. They are requested to confirm if a person meets the minimum requirements to work with your company. They help ensure that a subcontractor meets the legal requirements for being in business, as well as any additional conditions.