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    Field Notes — True Stories

    How to Vet Subcontractors (Before They Cost You $20K)

    The questions to ask, the red flags to watch for, and how to protect yourself.

    January 20, 2025 Vipin Motwani

    Your subcontractors will make or break your project. Selecting the right ones requires more than getting the lowest bid — it requires due diligence.

    What to Ask Before Hiring

    • Are you licensed and insured for this type of work?
    • Can you provide three references from similar projects?
    • What is your current workload and availability?
    • How do you handle change orders and additional work?
    • What are your standard payment terms?

    Red Flags That Should Stop You Cold

    • Large upfront payment demands — never pay more than 10% to start
    • No written contract — if it's not in writing, it doesn't exist
    • Can't provide references — experienced subs have a track record
    • Vague timelines — a sign they're overcommitted or disorganized

    How to Structure Your Agreements

    Every subcontractor agreement should include scope of work, payment schedule tied to milestones, timeline with penalties for delays, warranty terms, and insurance certificates on file. This protects you legally and financially.

    subcontractorshiringvettingcontracts
    V

    Vipin Motwani

    Founder, Iron Gate Development

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