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Nicole Kwapisz is a partner and construction attorney in the Miami office of the Orlando, Florida-based law firm RumbergerKirk. The opinions are the author’s own.
Hiring subcontractors and managing their work is one of the most critical and challenging aspects of any construction project. Even highly experienced general contractors can run into problems when expectations are unclear, communication breaks down, or management processes are not consistently documented. While no two projects are the same, implementing a structured approach to subcontractor management can help keep projects on budget, on schedule, and out of contentious territory.
Nicole Kwapisz
Courtesy of RumbergerKirk
Disputes and delays often arise from ambiguity or gaps in the management of subcontractors. Many of these problems can be avoided through early planning, consistent communication, and systems designed to support accountability throughout the project lifecycle.
Start before the project begins
Effective management of subcontractors begins long before work begins on the job site. Subcontractors should be vetted based on experience, safety record, reliability, reputation and financial stability, even when working with known partners. Each project presents unique risks and requirements, and prior working relationships, while important, should not replace project-specific due diligence.
Clear contracts are also essential. The scope, deliverables, quality standards, terms and payment terms must be defined in writing, without any material terms. Any changes or revisions must be documented, distributed and formally incorporated into the agreement. Completed contracts must be signed by all parties. Insurance requirements should also be settled in advance. A certificate of insurance alone does not confirm adequate coverage and contractors must verify that applicable policies meet project-specific requirements.
Setting expectations early on helps avoid confusion later. Pre-construction meetings allow teams to outline milestones, clarify roles and responsibilities, and discuss contingency strategies to address potential problems.
Centralize communication and documentation
Once the project is underway, centralized communication and documentation is critical. Project management software can streamline access to information and ensure that all parties are working with the same materials. Communications related to compliance, reviews and key project decisions should be confirmed in writing to minimize the risk of disputes.
Open communication channels are equally important. Subcontractors should know who to contact with concerns and questions, and issues should be addressed quickly to avoid confusion or delays.
Monitoring progress through regular inspections helps ensure quality control and milestones are met. Enforcing signatures and maintaining accurate payment records promotes transparency and accountability throughout the project.
Relationships and payments matter
Strong working relationships with subcontractors are based on trust, consistency and mutual respect. Providing a safe, clean and well-organized workplace supports productivity and strengthens collaboration.
Timely and accurate payments are another cornerstone of effective subcontractor management. Delays or inconsistencies can quickly strain relationships and disrupt progress, even when other aspects of the project are running smoothly.
Finish strong and evaluate performance
Project closure is an opportunity to reduce post-completion disputes and reinforce professionalism. Overseeing checklist completion, final inspections, closing documentation, final payments and lien release helps ensure the project ends on a high note. Involving subcontractors in the closing process, including obtaining certificates of occupancy, can avoid last-minute complications.
After project completion, subcontractor performance evaluation provides valuable information for future projects. Reviewing competency, efficiency, safety, timeliness and compliance with procedures allows contractors to refine their processes and strengthen future project teams. Seeking feedback from project stakeholders can also identify areas of improvement for future projects.
Technology must support people
Project management tools can significantly improve efficiency by streamlining communications, documentation, scheduling and payment tracking. Many companies also use site-based technologies such as AI-powered drones, robots and cameras, 3D models and simulators, and wearable technology to promote safety and monitor environmental conditions. However, in the end it is the people who use these tools to make a project successful.
Barry Craft, president of Craft Construction and a client of my law firm, implements a variety of processes to manage subcontractors on large construction projects that often run concurrently. It emphasizes the importance of defining project goals in advance, maintaining open communication, and monitoring progress to deliver high-quality projects.
“We rely on technology in our daily operations, but ultimately construction is a people business,” Craft said. “We often work with the same subcontractors, who remain reliable and deliver high-quality products.” He added that much of his company’s professional success has been due to constant learning and improvement, particularly in the way his organization manages project teams and subcontractors.
Avoid common pitfalls
Even with strong systems, construction projects involve many moving parts and problems can still arise. However, a solid subcontractor management process helps define roles, set reasonable expectations, and reduce ambiguity, leading to better outcomes when challenges do occur.
Common pitfalls to avoid include informal handshake agreements, undocumented contract changes, unrealistic promises, sole reliance on insurance certificates, and ignoring early warning signs of problems in a project. Addressing small issues early can prevent them from turning into lengthy and costly disputes.
