What Every Subcontractor Should Know Before Working for a New GC

Taking on work from a GC you've never worked with before carries real risk. Here's what to research, ask, and require before you put your crew on their jobsite.

As a sub, you're often several steps removed from the owner and the money. That distance creates risk. A GC who doesn't pay — or pays slowly, partially, or after a fight — can damage your business even when you did everything right. Here's how to protect yourself before work starts.

Check Their Payment History

Ask other subs. Ask suppliers. Search the GC's company name and principal names on public lien records — a GC with a pattern of mechanics liens filed against their projects is a GC with a payment problem. A few liens over many years of heavy work is normal. A cluster of recent liens is a red flag. Check JobSite Recon to see if other trades have left reviews about their payment practices.

Get the Contract Right Before You Start

Your subcontract should include: exact scope of work, schedule with milestones, payment terms (net-15, net-30, percentage retainage), and a defined process for change orders. If the GC hands you a 40-page contract full of "pay-if-paid" clauses with no negotiation, understand what you're signing. Pay-if-paid means if the owner doesn't pay the GC, the GC doesn't have to pay you — even if your work was perfect.

Visit the Jobsite Before You Mobilize

Don't just take a phone call and send your crew. Walk the site. Confirm that the work area is ready for your trade, that materials are staged correctly, and that access is what they described. Starting a job that isn't ready for you costs money — your money — in mobilization, waiting, and rescheduling.

Understand the Project Structure

Who is the owner? Is this a developer, a private homeowner, or a public entity? Is the project bonded? Is there a construction loan involved? A bonded project has more protection for subs. A developer-financed project with a shaky loan structure can collapse mid-build and leave everyone holding unpaid invoices.

Start Small If You're Unsure

If a GC approaches you with a large project and you have no history with them, consider starting with a smaller scope — a single phase or a small portion of the work. See how they communicate, how they handle the first pay app, and how their site is run before committing your full capacity to a major project with them.

Leave a Review After

Whether the experience was great or terrible, other subs in your area need that information. A two-minute review on the GC's office address or project address helps the next sub make an informed decision. The trades community is stronger when information flows freely.

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